ADT maintains the safety of customers and employees

BOCA RATON, Fla.—Today, ADT provided an update on the measures it is taking to respond to the COVID-19 health crisis.

“As COVID-19 is testing our nation's resolve, it's also bringing out the best in many people and businesses, and this is especially true at ADT,” Jim DeVries, president and CEO, ADT said in the announcement. “I've seen a tremendous outpouring of compassion and commitment from our team members to support each other and help keep our customers safe. With the hard work of the ADT team, and the support of state and local governments, we remain open for business and continue to secure our more than six million residential and commercial customers throughout the country.”

Continuing to provide protection when it matters most

ADT provides services that are essential to maintain the life safety and security of the public in their residences and businesses, including:

• connecting first responders to customers;
• providing critical alarm and fire system monitoring; and
• repair/maintenance services

For these reasons, ADT is an essential business under “shelter-in-place” orders recently issued in several states and locales.

Strong financial foundation to continue to serve customers

ADT's recurring revenue business model and cash generation profile provides a solid financial foundation from which to continue to serve customers and communities. The company benefits from a strong recurring monthly revenue stream (RMR) and a highly variable subscriber acquisition cost model. As such, ADT anticipates having sufficient liquidity to weather the current challenging macroeconomic environment and the slowdown and expects to generate strong free cash flow before special items, even in the case of reduced near-term demand.

In addition, ADT has no significant debt maturities until October 2021 and substantial room under any applicable financial covenants.

Protecting customers and communities

To continue providing safety and peace of mind to customers, ADT is taking the following measures:

• Call centers are phone screening all residential customers before setting in-home appointments to ensure they can provide a safe work environment for employees and to ensure the safety of all customers.
• Customer-facing employees are equipped with additional cleaning, sanitation and protective tools to help protect themselves and customers. ADT asks field teams to conduct daily personal wellness checks before reporting to work.
• Field staff are practicing social distancing, reconfirming the customer household is healthy before arriving, using sanitizer and hand-washing before and after consultations and conducting all business through digital confirmation (e-signature).
• ADT temporarily ceased all unsolicited, door-to-door sales practices.

Promoting supportive work environments for team members

Policies and practices to support team members have already gone into effect and provide immediate relief due to missed work, lost wages and concerns about team member wellbeing. These include:

• temporary, company-wide remote working mandate for positions that can begin remote work immediately;
• flexibility in the attendance policy, including access to paid time off, which encourages employees to stay home if they feel ill or need to care for children; and
• ADT will pay employees 100 percent of regular compensation for up to two weeks if they're required to be quarantined due to the COVID-19 illness.