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ADT: Consumer Electronics Show 'very important'

The event is productive for the security company on many fronts
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01/21/2014

LAS VEGAS—The annual Consumer Electronics Show didn’t used to loom so large on ADT’s radar. But 2014 marks the second year in a row the security giant has had a booth at CES and the company now views it an event not to be missed, according to Tony Wells, ADT SVP and chief marketing officer.

ADT hires new VP of investor relations

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01/09/2014

BOCA RATON, Fla.—Timothy Perrott is the new vice president of investor relations at ADT, the company announced Jan. 9.

ADT at CES 2014: New partnerships expand security beyond the home

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Wednesday, January 8, 2014

ADT announced at the Consumer Electronics Show in Las Vegas this week that it is partnering with Ford Motor Company in 2014 to enable drivers to do such things as open garage doors or control their thermostats from a car.

The company also is partnering with Internet security provider McAfee this year to offer customers a plan that not only protects their homes but their digital devices and data. Additionally, ADT is partnering with health solutions provider Ideal Life to support its ADT Health platform “with real-time health management services.”

ADT also announced it has added enhancements to ADT Pulse—such as remote garage door control.

The announcements all have one thing in common: expanding ADT’s security reach beyond the customer's home.

“As a pioneer in the home security and automation space, ADT is focused on evolving the security industry by developing new ways for consumers to integrate our products seamlessly into their everyday lives,” said Arthur Orduña, senior vice president and chief innovation officer for ADT, in a prepared statement. ADT, which became an independent company in the fall of 2012 after splitting from Tyco International, had a booth this week at the CES show for the second year in a row.

Here’s more from ADT on the new PULSE enhancements, which will be available this spring:
 

ADT PulseVoice App: ADT Pulse Voice app offers the hands-free convenience of using voice commands to control nearly all areas of the home in the Pulse ecosystem, including lights, thermostats, door locks, small appliances and security systems. ADT Pulse Voice also responds to user’s vocal commands and provides auditory feedback on system status and confirmation of actions.
ADT Pulse Wireless Platform: The ADT Pulse Wireless Platform features an innovative and sleek design with an intuitive, touch-friendly user interface. The wireless control panel securely and safely manages all ADT Pulse controlled devices such as lights, thermostats, locks, and small appliances. Created with the user in mind, the ADT Pulse Wireless Platform is designed to deliver a non-invasive and seamless installation experience for homeowners, reducing installation time by half and avoiding any in-wall wiring.
ADT Pulse Remote Garage Door Control: To help ensure security and control at all access points of the home, ADT Pulse will feature remote garage door controls by incorporating leading technology developed by Linear LLC. This new feature will enable users to secure and control their garage door via the ADT Pulse smartphone app from around the corner or around the world.
Canopy App: Building on the trusted expertise of ADT home security services, the Canopy mobile application for iOS and Android provides users added personal protection and networking while on the go. Canopy enables users to identify the whereabouts of and communicate with friends and family members in a designated virtual circle. Additionally, the integrated ADT Chaperone feature provides a direct line to trusted ADT monitoring centers anytime and anywhere. ADT Chaperone is a subscription-based feature within the Canopy app that provides added protection and peace of mind in situations such as entering a dark parking garage or walking alone across campus at night.

 

ADT holiday campaign gives back

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12/13/2013

BOCA RATON, Fla.—ADT employees across the U.S. and Canada are volunteering with more than 40 non-profit groups through the Holiday Hope Across ADT campaign, the company announced Dec. 12.

ADT honors police officers for stopping crime spree

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12/12/2013

GILBERT, Az.—ADT has recognized three members of this community’s police department for stopping a string of burglaries and vandalisms at an area veterinary clinic.

ADT working to ‘stabilize’ dealer program

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Wednesday, December 11, 2013

ADT officials weren’t available for comment when I wrote recently about an industry’s analyst’s report on how ADT had “culled” about 100 low-performing companies in order to improve its dealer program over the past year.

But in an ADT investor call last Friday, Alan Ferber, president of ADT’s residential business unit, confirmed much of what the analyst, Jeff Kessler, Imperial Capital’s managing director of institutional research, had said. Ferber also outlined ways ADT is working to “stabilize” that channel.

According to Seeking Alpha, which published a transcript of the Dec. 6 investor call, Ferber said:

So in 2013, we began to optimize our dealer channel to focus more resources on those that are [indiscernible] to evolving with ADT's overall direction and the trend towards automation. And while we're eliminating about 100 dealers, which obviously impacted overall net adds, our focus on the right dealers has resulted in the quality of the customers that come through that channel to remain high and actually have been improving. ARPU is about 10% above our average ARPU and growing about 5% over the past year and the creation multiple has actually come down even though there's been an increase in SAC. But we do remain focused on strengthening and continue to optimize this dealer channel to drive growth over time.

… In addition, channel growth was impacted by some changes among our largest dealers. We purchased 1, 1 had some cash flow issues that impacted their ability to increase adds and 1 left ADT for a competitive program. I'm very pleased, however, to report that, that dealer has now returned to the ADT family once he experienced the negative impact on his business of not having the powerful ADT brand behind him. So it's reconfirmed our dealer value proposition with that dealer and with many other dealers as well.

But more importantly, we're taking a number of actions to stabilize this channel. We are investing in enhanced funding to help drive further Pulse adoption, particularly higher end Pulse, where that higher level of automation has a very significant retention benefit as well. And increased funding will also enable some incremental sales and marketing activities by our dealers and also the recruitment of new high-quality dealers that are positioned to further drive automation.

… We're also investing in staffing and support to ensure success. We've added resources to provide better support for planning and performance management, and we've enhanced training and other tools to get new and existing dealers more productive, particularly with our new services. And while we certainly expect some noise in the next couple of quarters, we do believe these actions are establishing a very strong foundation for growth over time.

 

 

ADT partners with State Farm to promote Pulse

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Tuesday, December 3, 2013

Security companies often use as a selling point the fact that insurance companies give discounts to homeowners who have a security system. But ADT announced this week that it is leveraging that insurance company relationship in a new way: by partnering with State Farm to give that leading insurer’s customers special deals on Pulse. And the customers who get Pulse can also end up with a discount on their State Farm home insurance.

Seems like a pretty smart way to get customers to sign up for a smart home solution—and one that benefits both of these big companies.

Here’s more from ADT’s Dec. 3 release:
 

ADT today announced it is teaming up with State Farm to help its customers better manage and control their homes. ADT will provide special offers on its ADT Pulse home security and automation solution to State Farm customers, who may also qualify for home insurance discounts. The special offer also includes a free in-home security consultation, 24/7 professional monitoring by trained ADT security specialists and custom installation with a six-month money-back guarantee.

… “The average insurance claim for a home burglary or fire can cost thousands of dollars,” said Don Boerema, chief corporate development officer at ADT. “Through home automation capabilities and enhanced security features, ADT Pulse is the ideal solution to help State Farm customers connect to their families and homes to mitigate loss.”

“As the leading provider of homeowners insurance in North America, State Farm has a keen interest in helping customers prevent loss,” said Jack Weekes, operations vice president at State Farm. “By teaming up with ADT and other home control and monitoring providers, we are helping customers protect their family and property in today’s high tech world.”

The deal caught the attention of Insurance & Technology magazine, a business trade publication for insurers, which says in an article that it's "the latest sign that the smart device revolution is poised to shake up the insurance industry." The article wonders if insurers can "find the right tone and offering to capitalize" on the new trend. I'm wondering what other security companies will team up with insurers to better promote their security products.

One of ADT’s largest shareholders sells most of its stake

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Tuesday, November 26, 2013

The ADT Corp. reported yesterday that it was buying back 10.24 million of the shares of its third-largest shareholder, Corvex Management. Keith Meister, the hedge fund’s founder, who had been on ADT’s board since late 2012, also announced his resignation as director.

ADT’s stock price plunged early yesterday morning shortly after the news and while it recovered somewhat, was still down .59 percent this afternoon.

Meister said in a prepared statement, “We initially invested in ADT because of its leading market position and its potential for creating long-term shareholder value. The board and management have achieved admirable results over the past year.”

Now, Corvex will have less than 1 million shares in ADT, The Wall Street Journal reported. The WSJ said ADT bought Corvex’s shares at $44.01 each, so Corvex got a return of about 20 percent on its investment.

What does it all mean? A WSJ report yesterday sheds some light:
 

Within weeks of ADT's debut as a public company in October 2012, Corvex began pushing the company to buy back 30 percent of its stock with borrowed money. The hedge fund at that time said the stock was worth at least $61.

Corvex criticized ADT's conservative approach to debt, calling the company's capital structure "indefensible" during a presentation that accompanied Corvex's disclosure of a 5 percent stake in ADT at the time.

ADT's board has followed much of Corvex's strategy, including financing stock purchases with debt. The company recently announced that it will accelerate the purchase of $400 million of stock under an agreement with J.P. Morgan Chase. Once the purchase of the Corvex shares is completed, the Boca Raton, Fla., company will have spent $2.4 billion to retire about 20 percent of its stock.

 

ADT culls ‘weaker players' from its dealer program

Imperial Capital’s Kessler predicts ADT dealer-based Pulse take rates should increase
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11/26/2013

NEW YORK—ADT’s dealer program has been one of the company’s “soft spots” for years but now is turning around after the company “culled” more than 100 lower-performing dealers over the past year or so, according to an industry analyst.

Kastle Systems acquires monitoring station, Mutual Central Alarm Services from ADT

Deal adds 4,000 customer sites, Stat-Land Security Systems and UL-listed Five Diamond Certified monitoring station
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11/22/2013

FALLS CHURCH, Va.—Kastle Systems International added 4,000 customer sites and a new, highly specialized UL-listed Five Diamond central station in New York City with the Nov. 21 acquisition of Mutual Central Alarm Services and Stat-Land Security Systems from ADT.

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