ADT makes RMR forecast

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11/27/2012

The ADT Corp., which just became independent in September, says its Pulse product is doing so well that it predicts that recurring revenue will grow by 4.9 percent to 5.2 percent in fiscal year 2013, the company said this week in a report on its Q4 and fiscal year 2012 results.

“We delivered solid recurring revenue growth fueled by the continued success of Pulse in the residential and small business security markets,” ADT CEO Naren Gursahaney said in a statement. “Our focus for 2013 is to deliver meaningful shareholder value by leveraging our competitive strengths to accelerate growth and through the efficient deployment of capital.”

ADT reported that in Q4, recurring revenue was $742 million, up 5.2 percent. The company said that was "driven by 4.4 percent growth in average revenue per customer, which rose to $38.87, and 1.1 percent net growth in customer accounts."

ADT also is initiating a dividend and has a share buyback plan. Here's what Bloomberg News had to say on that this week:
 

ADT Corp. authorized a $2 billion share repurchase program and initiated a quarterly dividend after investors George Soros and hedge-fund manager Keith Meister called on the home-security company to buy back stock.

The buyback will end in November 2015 and the quarterly dividend will amount to 12.5 cents a share, the Boca Raton, Florida-based company said in a statement today. ADT was spun off from Tyco International Ltd. (TYC) in September.

In October, billionaire Soros joined Meister in urging ADT to buy back about 45 percent of its stock with borrowed money to take advantage of low interest rates after they became the company’s biggest investors. ADT today reported adjusted earnings per share of 43 cents in the fourth quarter ended Sept. 30, matching the average analyst estimate. Recurring revenue rose 5.2 percent to $742 million.

The company has more than 6 million customers in the U.S. and Canada, providing security to homes and businesses with products including the ADT Pulse system.

 

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