APX Group Holdings, Inc.

CIK:0001584423|SEC Filings

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Recurring and other revenue	$ 303,232	$ 276,249
Costs and expenses:
Operating expenses (exclusive of depreciation and amortization shown separately below)	83,340	83,076
Selling expenses (exclusive of amortization of deferred commissions of $32,466 and $44,012, respectively, which are included in depreciation and amortization shown separately below)	54,227	43,591
General and administrative expenses	53,018	46,339
Depreciation and amortization	139,249	131,221
Restructuring expenses	20,941	0
Total costs and expenses	350,775	304,227
Loss from operations	(47,543)	(27,978)
Other expenses (income):
Interest expense	65,293	63,748
Interest income	(229)	(23)
Other expenses (income), net	26,305	(2,246)
Loss before income tax expenses	(138,912)	(89,457)
Income tax benefit	(788)	(301)
Net loss	$ (138,124)	$ (89,156)

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (138,124)	$ (89,156)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of capitalized contract costs	116,143	105,031
Amortization of customer relationships	16,476	18,632
Depreciation and amortization of property, plant and equipment and other intangible assets	6,630	7,558
Amortization of deferred financing costs and bond premiums and discounts	951	1,180
Gain on fair value changes of equity securities	0	(2,212)
Loss on sale or disposal of assets	365	232
Loss on early extinguishment of debt	16,949	0
Stock-based compensation	17,070	857
Provision for doubtful accounts and expected credit losses	8,083	5,918
Deferred income taxes	(1,095)	0
Restructuring and asset impairment recoveries	11,106	0
Changes in operating assets and liabilities:
Accounts and notes receivable, net	(20,656)	(10,424)
Inventories	(15,526)	(43,668)
Prepaid expenses and other current assets	(4,445)	(3,678)
Capitalized contract costs, net	(84,532)	(80,614)
Long-term notes receivables, other assets, net	7,121	608
Right-of-use assets	1,487	2,146
Accounts payable	37,984	42,864
Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities	(18,386)	(5,889)
Current and long-term operating lease liabilities	(1,687)	(2,222)
Deferred revenue	10,206	9,820
Net cash used in operating activities	(33,880)	(43,017)
Cash flows from investing activities:
Capital expenditures	(2,867)	(1,391)
Proceeds (payments) associated with disposal of capital assets	1,287	(51)
Acquisition of intangible assets	(321)	(369)
Net cash used in investing activities	(1,901)	(1,811)
Cash flows from financing activities:
Proceeds from notes payable	1,241,000	0
Proceeds from notes payable - related party	309,000	0
Repayment of notes payable	(1,572,374)	(2,025)
Repayment of notes payable - related party	(174,800)	0
Borrowings from revolving credit facility	190,000	40,000
Repayments on revolving credit facility	(270,000)	0
Proceeds from capital contribution	464,642	0
Repayments of finance lease obligations	(2,243)	(2,136)
Financing costs	(11,061)	0
Deferred financing costs	(11,937)	0
Return of capital	0	(118)
Net cash provided by financing activities	162,227	35,721
Effect of exchange rate changes on cash	(351)	25
Net increase (decrease) in cash and cash equivalents	126,095	(9,082)
Cash and cash equivalents:
Beginning of period	4,549	12,773
End of period	130,644	3,691
Supplemental non-cash investing and financing activities:
Finance lease additions	592	93
Intangible asset acquisitions included within accounts payable, accrued expenses and other current liabilities and other long-term obligations	1,448	374
Capital expenditures included within accounts payable	1,869	2,213
Debt financing costs included within accounts payable	977	322
Return of capital	$ 1,223	$ 0

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 130,644	$ 4,549
Accounts and notes receivable, net	61,708	64,216
Inventories	79,939	64,622
Prepaid expenses and other current assets	16,331	11,893
Total current assets	288,622	145,280
Property, plant and equipment, net	56,790	61,088
Capitalized contract costs, net	1,178,042	1,215,249
Deferred financing costs, net	1,967	1,123
Intangible assets, net	159,540	177,811
Goodwill	834,237	836,540
Operating lease right-of-use assets	63,814	65,320
Long-term notes receivables and other assets, net	86,966	95,827
Total assets	2,669,978	2,598,238
Current Liabilities:
Accounts payable	101,151	82,348
Accrued payroll and commissions	37,438	72,642
Accrued expenses and other current liabilities	158,308	139,389
Deferred revenue	238,363	234,612
Notes Payable, Current	9,500	461,420
Current portion of operating lease liabilities	11,890	11,640
Current portion of finance lease liabilities	6,498	7,708
Total current liabilities	563,148	1,009,759
Notes payable, net	2,438,918	2,471,659
Notes payable, net - related party	385,840	103,634
Revolving credit facility	165,000	245,000
Finance lease liabilities, net of current portion	4,717	5,474
Deferred revenue, net of current portion	409,497	405,786
Operating lease liabilities	61,521	63,477
Other long-term obligations	78,612	80,540
Deferred income tax liability	1,005	2,231
Total liabilities	4,108,258	4,387,560
Commitments and contingencies (See Note 12)
Stockholders’ deficit:
Common stock, $0.01 par value, 100 shares authorized; 100 and shares issued and outstanding	0	0
Additional paid-in capital	1,229,508	737,913
Accumulated deficit	(2,637,893)	(2,499,769)
Accumulated other comprehensive loss	(29,895)	(27,466)
Total stockholders’ deficit	(1,438,280)	(1,789,322)
Total liabilities and stockholders’ deficit	$ 2,669,978	$ 2,598,238
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	100	100
Common stock, issued (in shares)	100	100
Common stock, outstanding (in shares)	100	100