Brinks Home Security / ASCMA Risks Bankruptcy

By Dan Gelinas, Published Apr 08, 2019, 11:57am EDT

ASCMA, aka MONI, aka Brinks Home Security has issued a warning in their most recent financials that they risk bankruptcy.

In this note, based on our research we look at the following topics:

  • What does the company's financials show
  • How does 2018 compare to 2017
  • ASCMA at ISC West
  • ASCMA no comment
  • Outlook

Bankruptcy ****

*** *******'* **** ****** 10K**** * ******* ***** bankruptcy ** **** *****:

*** ******* "** ** active ******** **** ******* stakeholders ********* * ******** restructuring" ************* **** *** current **** *** ************** problems.

********, *** ******* **** they **** *** ** their ********* ******* **** into **********:

** ** ********* ** not *******, ******* ********* could ******** *********** ********** cases ******* ****** **** Security.

********, *** *** ****** out **** * ****** rating ********* *** ********** would ********* ****** ****** Home ********'* ******* ****** performing ***** ** ***** in *** ********* ******* from **** ** (*** our ****** *******'* ***** ********* ******* here):

** ********, * ********* of *** ****** * Common ***** **** ****** would ********** ****** ** because ** *****, ***** other ******: (*) ****** the ********* *** ****** price ** *** ****** stock; (**) ****** *** amount ** **** *** analyst ******** *** *** company; (***) ****** *** number ** ********* ******* to **** ** ******* our ****** *****, ***** could ********** ****** *** ability ** ***** ****** financing *** *** ******* of *** ************ ** sell *** ****** *****; (iv) ***** *** ******* to *** * ************ statement ** ***** *** sell ****** ******** **********, thereby ********** ** **** accessing *** ****** ******* markets; (*) ****** *** ability ** ******* ****** equity ********** ** *** employees; *** (**) **** negative ************ ****** *** us **** *** *********, suppliers, ********* *** ***** persons **** **** ** transact **** **** ** time.

*** ** ***** ******* together **** ******* * downward ****** *** ******* may *** ** **** to **** *** **. The *******'* ***** *** fallen **% **** *** past * ***** ** the ********** ***** *****:

Increasing ****

*** ******* *** **** its ****, ******* ******** at ~$*.* *******, ********. The ********* ******* **** page ** ** *** report ********** *** *******'* indebtedness:

** ** ******** **, 2018, ****** **** ******** had ********* ************ ** $1,804,450,000.

**** ******** ** *** company's ***** ** ** $40 *******/****, ** **** in *** ********* ******* from **** ** ** the ******:

******** ******* ********* $**,***,***, or **.*%, *** *** year ***** ******** **, 2018 ** ******** ** the ************* ***** ****.

Decreasing **** **** **********

****** **** **** *** company's ********* **** **** operations, ***** *** ******* by **% **** *** last * *****, *** ASCMA ** ****-******* ** get ****** *** ** trouble. *** ********* **** from ********** ****** *** be **** ** *** screenshot *****:

2018 ******** ** ****

***** **** ** ******* of ********** **** ******* **** *** ******. ** ****, *******, Brinks **** ******** *** certainly ***** *** ***** of ******** **** *** last ****. **** ***** a****** ******* ******** ** their **** ******** ********* ** ****, and ** ******** ** 2018, ******* ** ************ ********** ***** ******* agreement**** *** *******.

Paying ** ***** ** *** ******

**** *****,*** ******* ************* ~$** ******* ** debt *** **** ***, with ********* ****** * roughly *% ****:

$**,***,*** ********* ********* ****** of *****, ** **.**% of *** ********* ********* amount ** ***** ***********, had **** ******* ******** and *** ******* ********* in *** *****. ****** expects ** ****** *** purchase *** ** *** Notes ******* ******** (*** not ******* *********) ***** to *** ********** **** and ******* ** **** payment *** **** ***** on ***** *, ****. The ************* ** **paid ***** *** ***** **** ** $***.** *** $*,*** ********* ****** ** ***** **** ** ******* *** ****** ******** ** ** *******. The aggregate Offer consideration for Notes validly tendered and accepted for purchase will be $19,798,950 and will be funded from cash on hand.

**** * **** ** atypical, ********** **** ******* concerns **** ** **** did *** **** * loss ***, **** ***** face ** **** ******* loss *****.

Input **** ******** **********, *********

***** ********* [**** ** longer *********] *********** ************** **** *** ********** statement ** ******** **** financial ************* ****** **** and **** ****** *** Chapter ** ********** *** actually **** *** ******* reorganize ** ****** ****** Home ******** **** "********* room":

* ******* **** *** stating **** ** * required ******* ** ***** equity *** ****** ***** as ** *** **** of ******. ********* * company **** **** ******* the ******* ****** ***’* meet ***********. ********* ******* 11 ****** *** ************** and ********* **** ** negotiate **** ** ***** ground. **** ***** ** ends ** ** ****-***** bankruptcy *** ********* ***** big ****. ** *** end ** ** *** as ** ***** **** pennies ** * ******. Hopefully, **** ** *** the **** ****.

******* ** *** ******* 11 ***** **** *** compnay **********, **** ***** partners ***** ** **** if ********** ******.

*** ******* ****** ******** that ********* ***** **** a ******** ****** ** its ***** *** *******:

*** ****** * ********** case *********, *** **** likely ** ** **** Brinks **** ********’* *********, dealers *** ********* ***** lose ********** ** *** ability ** ********** *** businesses ************ *** ***** seek ** ********* *********** commercial *************.

ASCMA ** *******

** ******** **** *** company ** ***** ********** risk *** **** **** they **** *** **** to *******:

************* ** *** *** able ** ******* ** this ****.

Brinks **** ******** ** *** ****

******* *** ********, *** company *** * ********** large *** **** **** booth ** **** ** the ********** *****:

** **** ** *********** to *** *** *** company ********** **** ********* and ******* *** ****** financial ********. ** *** positive ****, ******* ** the **** ******* ******* in ******* *****, ***** has **** ****** ********* in *** ******** ***** the ***** *** ******* faces.

*******

*********, *** ******* ** quite **********. ** * few ******, ****** **** can *** *** ***** price ** *******,**** *** ** ********. ***, ** ***** own ******* *****, **** do **** ********** ** 2019 ********* ** *** they ******** ***** ******* or **** **** *** do ** ******* **********.

** *** ** *** largest ***** ******** ** North *******, * ********** to *** ******* ***** have *********** ******** *** many ** *** ********* and ********, ** **** as *** ************ ***** monitoring ********, ******* ***** scrutiny *** ********* ** DIY *** *** ******** such ** ******.

Comments (7)

Anyone know what Brinks suppliers\vendors are publically traded?

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All of that money and all of those customers and they still screwed it up. I can't imagine how they raised capitol seeing as the company was founded by door knocking snake oil salesman, targeting any and all alarm signs they could find so they could trick people to sign their ironclad monitoring contracts. I'm sure the majority of their account base is junk bond status. They should have learned the lesson from the old Protection One, contracts are worthless when the people who signed them have bad credit.  

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There are credit requirements. No accounts under 600 score and the majority 700+

Also, door knocking does not = snake oil salesman. 

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It will be interesting to see how the company interfaces with attendees and explain the latest financial troubles...

Free tote?

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This is not the first time (Brinks, Rollins, AT&T, and any other like them) entering the market with the single focus on RMR at any cost. These companies help establish the $99 down $50 a month program that has the buying public placing no value on the services we provide. All systems should only cost $99 is the shopping mentality that it has created and we work to establish value in an arena of mistrust for price gouging when everyone is selling the EXACT same thing for $99.

The cycle repeats itself again and Brinks is bordering on collapse again in the Market and someone else will step in their shoes and learn nothing from it only to do it all over again, again, again.......

Oh wait these are all college educated financial wizards...starting to not see the value in college anymore as the only thing they actually do anymore successfully is overpay sports coaches.

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Oh, Brinks (aka Monitronics) wasn't worth some 55X or whatever outrageous price was paid by a company of loosely knit dealers, not always the best of class?

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Update: ASCMA / Monitronics / Brinks Home Security has announced defaulting of its 2020 bonds / interest payment.

If I am reading this correctly, they have ~2 days to sort this out:

The Credit Forbearance Agreement terminates on May 8, 2019 and the Notes Forbearance Agreement terminates on May 7, 2019, unless certain specified circumstances cause an earlier termination.

We will update as we hear more. Any comments or questions, please share.

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