ADT Profits Up 6.9 Per Cent in 2013
ADT, which spun off from Tyco International and went public last year, saw an increase in customers to 6.5 million and an increase in recurring revenue.
This was largely driven by more customers buying its new home automation Pulse products.
“If Pulse was a standalone, it would be the 6th-largest security provider in North America,” chief executive Naren Gursahaney said.
For the year ended Sept. 27, ADT reported a profit of $US421 million, up 6.9 percent from $394 million a year ago. Annual revenues were $3.3 billion compared with $3.2 billion in 2012.
While its customer base rose by 1.5 percent from a year ago, the home security company continues to battle customer loss from relocation. ADT also is working with an independent dealer with financial issues and replaced a dealer's telemarketing operation that didn't meet ADT standards, Gursahaney said.
Recurring revenue, which accounts for the bulk of ADT's overall revenues, was 4.8 percent for the year. That increase reflects higher prices for upgraded equipment as well as additional customers.
"We expect to realize greater economic returns from our Pulse customers," Gursahaney said.
He said ADT added a new battery-powered thermostat to its product line this quarter and launched ADT Alert, which gives weather alerts on smartphones and other electronic devices.
ADT has nearly 1000 employees in South Florida and more than 470 at its Boca Raton headquarters.
For the 4th quarter, ADT reported a profit of $96 million compared with $94 million for the same quarter in 2012. Quarterly revenues were $846 million, up 4.2 percent from $812 million in 2012.
Quarterly earnings per share were 45 cents compared with 40 cents a share last year. Taking out separation costs from the spinoff and other items, the per-share profit was 46 cents compared with 43 cents a year ago, which met analysts' expectations.