Ascent / MONI Faces Lender Lawsuit and Debt Crisis

Author: Dan Gelinas, Published on Sep 13, 2018

ASCMA, aka Ascent, aka Brinks Home Security, aka MONI, aka Monitronics is being sued by a group of their lenders who allege:

As of June 30, 2018, MONI itself is hopelessly insolvent with only $2.1 million of cash and cash equivalents on hand. MONI, a business that loses more money every year, that has limited cash, and that has a negative book equity, owes approximately $1,731,235,000 to creditors.

And the stock market has punished ASCMA even further since the suit, down another 50% in the past week:

What is going on? In this note, we examine:

  • Who Is Suing Ascent And Why
  • What Financial Problems Ascent Faces
  • Compared to ADT Financial Performance
  • Even More Troubled Than Just Out Of Bankruptcy Arecont
  • How Low Their RMR Valuation Is
  • What The Future Holds for Ascent And Its Subsidiary, Moni/Brinks Home Security

*****, *** ******, *** ****** **** ********, *** ****, *** Monitronics ** ***** **** ** * ***** ** ***** ******* who ******:

** ** **** **, ****, **** ****** ** ********** ********* with **** $*.* ******* ** **** *** **** *********** ** hand. ****, * ******** **** ***** **** ***** ***** ****, that *** ******* ****, *** **** *** * ******** **** equity, **** ************* $*,***,***,*** ** *********.

*** *** ***** ****** *** ******** ***** **** ******* ***** the ****, **** ******* **% ** *** **** ****:

**** ** ***** **? ** **** ****, ** *******:

  • *** ** ***** ****** *** ***
  • **** ********* ******** ****** *****
  • ******** ** *** ********* ***********
  • **** **** ******** **** **** *** ** ********** *******
  • *** *** ***** *** ********* **
  • **** *** ****** ***** *** ****** *** *** **********, ****/****** Home ********

[***************]

Who ** ***** ****** *** ***

****** ******* ******* ********* ** * ***** ** ****** **************** ***** **** *** ** ****. *** *****, ******** ******* of ******'* ******** ** *********** *************, ******, ***** ***** ******, Ascent ** ***** ** ****** ********* **** ** ********** ** make ******** ** $*** ******* ** *** *** **** ** struggling ********** ***********'/****** **** ********'* *****. **** **** ***** ** nothing ** ****** *** ***** *******,*** ********* *********** ***** ***** ****** ****** ** *** *** *** **********' notes **** **** **** *** ** ****.

*******, ***** ******* ***** *** ******** ******* ** * ********* attempt ** ***** *** *** **********:

*** ********** ** ** *** ** ** *** **** *** worst **** ******** *** **** ***** ** ****** ** *** business:

*** ********** ***:

********** *** *** ******* *** *** **********.

*** ********** *** ****** ** **** *** **** ********.

98% ***** ****

** ***** **** ** ******** ****, *** ******* *** ******* at $**.**/*****, ******** **% ** *** **** * *****:

****** *** ***** ******** ******** **** ********* *** *** **** of ******** ** *******. *** *******, ***** *** ***** ** the *** ** ****** **** ******* ******** *** ******** ***** price. *** ********* **. ****** ***** *** *** *******'* "********" financial ********:

ADT ** ******

******'* ****** *** ** ~$** *******, ***** ** ********** **** compared ** ****** ** *** *****.

******* **** ** ***'* $* *******.

********* **** *********' ***** ** ******* ***** *** *** ** a ********* ****** ** **. *** ****** ** ~*.** *** revenue (******* *** *** ******* ******), ***** ****** ** ******* at * ****** ************ *.*** ** *** *******.

*** ********* **. ****** ****** *** **** *** ********* ******** have **** ****** ***** *** ***** ** ****:

Arecont **********

** ** **** ******* **** ****** ** **** *** *** same ******* ***** *********** *** **** ** **** ******** **** */** *** ********* ****** (******* **** ******* ~$** ******* ** ****** ~$*** million).

********, * **** ** *** *******'* **** **-* ***** *** assets *** **** ****:

Bankruptcy ****

****** ****** ** $*** ******* *** **** ** $*.** ******* places **** ** **** ** **********, *** **** ******:

RMR ********* ** ~*.**

***** ******** ******* *** ********* ** ********* ***** ** *** 35x *****, ******'* ** **** ~*.**. ***** **** ****** **********, it ** * ******** ** *** *******'* ********** *** ****** valuation *** ******* **** **** ********. ***** *** ******* *** RMR ** *** ~$** ******* *****, *** ********* ** **** a ******** ** * *****'* ***.

** ****** *** **** * *** *** *********, ** ***** be ***** ~$*.* ******* ***** ** **** ** **** ** be ***** * ***** ***.

Future *** ****** *** ****/******

****** ****** *********** ************* ** **** *** $*.* *******. ** **** ****, ********** ** **** ********* **** **********, with *********** ****** ****** ***** ***** "*********":

*** *** ****, ****** ******** *********** ***** ******* ****** ******:

****** * ****** ***** *** ******* ** *** ** ******.

****** ** ***** ** **** * ********* **** ** ******* with *** **** **** ****, ***** *** ****** ** *** lender's ****** * ***** ****, ******* ******* *** (**** *** valued) ****** ** ******* ****** **** **********.

Comments (16)

***, **** *********!

*** ***** ** *** ***** ****** ** ********** ** *** much ** ****** / **** / *** ** ***** *** poor ********* ** * ******* / ********** ***** *** ***** monitoring *********, **** ** ***** *** **** ****** *********. ****** with ******** ** ****, ****** ******* ** ***** ***@****.***

***** ***, ****! ***, ******, *******, **** **** ** **** me * **** ** *** **** ********** ** *** **** of ****** ********* ********** *********.

** ******* *** ******* ********** ** *****/****/ *** ********** ** highly ******* *** **** **************************… ******* **** ** *** **** *******, ****** ****, ********* and ***** ********….. *** *** ****. ** ******* **** *** at *** “****** ** *** **** *** ***** *******”. **** *** **** ****** ******* *****, ********* *** ********* guidance. ****, * ** *** * ******* ***** *** ********* guy, *** **** *** **** ** *** ****** **** ** 50 ***** ** *** ********, ********* ******** ********** *** **** M&A. ** ********* ** ************ ***********.

*** **** ******** ***** ** ****** ***** ******… ****** ********** and *******/********** ** ***** ********* ********* ** **** **** ******** of “****** ***********”, *** ***** ***** ******* **** **** ** the *****, ************, *** *******. **** *** **** ****** ** no ************** ****** *** ****** ************. **** *** ****** ******* with ***** “**** **********”, *** **** *** ****** *** ****. Their ******** **** **** ** ***, ********** ********* ******* *******, about ***,*** *******, *** *** ******** *** ********* ******** ********** “deterrent” ******* (*** ******** ** ** ****** ********* ******** **** Moni **** *** ****). ********* *******, *** ************ **** **** and ********* ********* *** ****** *** ********, ********* ***, *** obvious *******….*** ******** **** ********* ***** ** * *** **** in ***** ******** ******. **** ********* ** **** ****** ** replace.

*** ** ****** ****, **** ***** *********** *** ********** ************** (costs) ********** *** *******, *** *** ******** ****** ** *****, installation, *******, *******/**********, *****, *********, *&*, ********* **** *******, ***, etc... *** ***** ******** **** ******** ** *** ******** “*********” system, **** *** ****** *** **** **** *** *********** *********, holding **** ****** *****.

*** “******* ******** ********” ** ******* **** **** ********** *** globe. ** ** ***** **** ********** ** *** ** (**,*** independent *******; **** ******* ****** **********) **** ****** ** ******** models, **** ** ***** *** ********. **** ** *** ******* players **** ******* *** ** ******** **** **** ********* *** status-quo **** *** *******. ******* ** *** *** ******** ****** will *** ******** *** ** **** ****… ***** ****** *** guys **** ****** *** ****** *** *********.

******: *** *****; ******* ******** *****

**** **** ***

*** ***** **** ****** * ***** *****:

**** ******* *.**% *****:

****** ******* ****?

** ** ***** *****, ** *** **** ****** **%:

******* ********* ****** ***** ** **** ***** **** *** *** market ********* ** ***** ***** $** *******, ***** ** ********** low *** **** * ****** ***********.

***, ********** ***…. *** ************** ******** ******* ** *** **** ****, *** **** ********* (***** of ********* ***** *******) *** **** **** ** ********* ***********.

***'* **** ** * ********!

**** ***** ****** **** .... ** * ***** ***** ** one **** ****** ***** * ****** **, *** **** ** you **** * ***** **** ****** ***** * *****?

*** ** **** ********? *** **** ***** ** ********?

**** * ***** ******* *** ***,*** ******** *** ***** ** least ** ** ** ***** ***, ** *** ***** ** a ***** **** ** *** **** **** *** ****. * bet **** *** ****** ** **** **** *** ** ***** this ** **** *** ********* *** ****** ** **** **** the *******, *****'* *** **** ** ***** **.

**** * ***** ******* *** ***,*** ******** *** ***** ** least ** ** ** ***** ***, ** *** ***** ** a ***** **** ** *** **** **** *** ****.

****, ** **** *** *** *** ** *** $*.* ******* in **** ;)

** **** ****** *** *** ****, *** ****** ***** ** wiped ***, *** ******* **** *** *** *********** **** **** the ********* ***** ***. ** *** *******, ********** **** *** trying ** **** *** **** **** ** ****, ****** *** stock ***** ******* **** *** ********** ** ******** ************ ********* any *********** ***** ** ***.

********* *** **** **** **** ***** ******. *** ************ *** gonna **** * ******* ****** ***.

*** ****** ***** ** *** = **-***, ** ******* ** Larry, ** ************ *******. ******* ** ******* *** ******* ****** value ** “*********” ******* ** ********* ** ******** (*** ** no ******** ****** ********), ******** ** ***** **% ** **** municipalities. **** ** *** *****/**** ******** ********* ** ********* **** property **********, ********** ** *********** “*******” *** ****** *** *******, without * ******** ***** ******* **************. **** ** *********, **** term. ** ******* *** ******** ** ********* ******* ****** *** is * ****** *** ******* **** *** ***** ** ****** digits.

Quick ******:***** ** * ****** *** ****** *****, ** **%:

**'** ******* **** **** ***** ** ***** ** ****** **** jump *** **** ****** **** ******** ** **** ***.

*** ** ***'* *** *********, ** * ***** ** ***.**%:

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