ADT PROVIDES UPDATE ON MAINTAINING THE SAFETY OF OUR CUSTOMERS AND EMPLOYEES DURING THE COVID-19 HEALTH CRISIS
March 24 2020 - 8:30AM
ADT Inc. (NYSE: ADT), a leading provider of security, automation,
and smart home solutions serving consumer and business customers in
the United States, today 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. Since we began preparing for the potential impact of
COVID-19, I’ve seen a tremendous outpouring of compassion and
commitment from our team members to support each other and help
keep our customers safe,” said Jim DeVries, President and CEO at
ADT. “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 6 million residential and commercial customers
throughout the country.”
Continuing To Provide Protection When It Matters
MostADT provides services that are essential to maintain
the life safety and security of the public in their residences and
businesses. We connect first responders to customers for police,
fire and health emergency services. ADT employees provide critical
alarm and fire system monitoring, along with repair and maintenance
services to restore the safety and security systems of our
customers, who rely on ADT to help protect their property and
lives. For these reasons, ADT is an essential business under
shelter-in-place orders recently issued in several states and
locales.
We’ve taken swift and proactive steps to ensure that we can
continue to provide 24/7 professional security, fire and life
safety monitoring and service to our 6 million customers. ADT
utilizes a network of nine monitoring centers, which are
geographically distributed throughout the United States, and
include redundancies which provide backup services for critical
functions such as professional monitoring and customer care. This
feature of our network provides strength in times like these.
Additionally, we have recently deployed tools to enable many of our
employees to work remotely, and we now have nearly 2,000 ADT
monitoring and customer care professionals working from remote
locations.
Strong Financial Foundation to Continue to Serve Our
CustomersDespite the challenges to the global economy
presented by COVID-19, ADT’s recurring revenue business model and
cash generation profile provides a solid financial foundation from
which to continue to serve our customers and communities. Our
business benefits from a strong recurring monthly revenue stream
and a highly variable subscriber acquisition cost model. As
such, we anticipate having sufficient liquidity to weather the
current challenging macroeconomic environment and the slowdown
brought on by COVID-19. Moreover, given the nature of our
business model, in which slower gross adds lead to lower cash
expenditures, we continue to expect to generate strong free cash
flow before special items, even in the case of reduced near-term
demand. Finally, we have no significant debt maturities until
October 2021 and substantial room under any applicable financial
covenants. As a result, we expect to continue to be in a strong
position to serve customers and communities during this difficult
time.
Protecting Our Customers And Our CommunitiesOur
commitment to helping keep our communities safe means we sometimes
need to interact with customers in-person to repair and install
home security and life safety systems. ADT is also the security,
fire protection and life safety provider for essential businesses
and facilities in our communities, which include hospitals,
distribution centers, grocery stores, financial institutions and
restaurants. To continue providing safety and peace of mind to our
customers, we are taking these measures:
- Our call centers are phone screening all residential customers,
before setting in-home appointments, to ensure they can provide a
safe work environment for our team members, and to ensure the
safety of all customers.
- We are equipping our customer-facing employees with additional
cleaning, sanitation and protective tools to help protect them and
our customers. We are also asking our field teams to conduct
daily personal wellness checks before reporting to work.
- Our field staff are taking additional steps to help protect our
customers, including the following: practicing social distancing,
reconfirming that the customer household is healthy before
arriving, using sanitizer and hand-washing before and after the
consultation, and conducting all business through digital
confirmation (e-signature).
- ADT is leading the industry in temporarily ceasing all
unsolicited, door-to-door sales practices.
Promoting Supportive Work Environments For Our Team
MembersADT instituted a number of policies and practices
to support our team members who are facing very challenging times.
These policies, which have already gone into effect, provide
immediate relief due to missed work, lost wages and concerns about
team member wellbeing.
- We have implemented a temporary, company-wide remote working
mandate for positions that can begin remote work immediately.
- We have implemented flexibility in our attendance policy,
including access to paid time off, that encourages employees to
stay home if they feel ill or need to care for at-home
children.
- ADT will pay employees 100% of regular compensation for up to
two weeks if they’re required to be quarantined due to the COVID-19
illness.
More information regarding ADT’s actions can be found at
https://www.adt.com/coronavirus.
ABOUT ADTADT is a leading provider of security,
automation, and smart home solutions serving consumer and business
customers through more than 200 locations, nine monitoring centers,
and the largest network of security professionals in the United
States. The Company offers many ways to help protect customers by
delivering lifestyle-driven solutions via professionally installed,
do-it-yourself, mobile, and digital-based offerings for
residential, small business, and larger commercial customers. For
more information, please visit www.adt.com or follow on Twitter,
LinkedIn, Facebook, and Instagram.
FORWARD-LOOKING STATEMENTSADT has made
statements in this press release and other reports, filings, and
other public written and verbal announcements that are
forward-looking and therefore subject to risks and
uncertainties. All statements, other than statements of
historical fact, included in this press release are, or could be,
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and are made in reliance
on the safe harbor protections provided thereunder. These
forward-looking statements relate to anticipated financial
performance, management’s plans and objectives for future
operations, business prospects, outcome of regulatory proceedings,
market conditions and other matters. Any forward-looking statement
made in this press release speaks only as of the date on which it
is made. ADT undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future developments or otherwise. Forward-looking
statements can be identified by various words such as “expects,”
“intends,” “will,” “anticipates,” “believes,” “confident,”
“continue,” “propose,” “seeks,” “could,” “may,” “should,”
“estimates,” “forecasts,” “might,” “goals,” “objectives,”
“targets,” “planned,” “projects,” and similar expressions. These
forward-looking statements are based on management’s current
beliefs and assumptions and on information currently available to
management. ADT cautions that these statements are subject to risks
and uncertainties, many of which are outside of ADT’s control, and
could cause future events or results to be materially different
from those stated or implied in this press release, including among
others, risk factors that are described in the Company’s Annual
Report on Form 10-K and other filings with the Securities and
Exchange Commission, including the sections entitled “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” contained therein.
Media Inquiries: |
Investor Relations: |
Paul Wiseman -
ADTpaulwiseman@adt.com |
Derek Fiebig - ADT
tel: 888.238.8525investorrelations@adt.com |
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