ADT Inc.

In 2020, the company tempered dealer-generated customer accounts and bulk account purchases by 43%, which supported FOCF. Moreover, the company benefits from one-time deferral of payroll tax payments provided by the Coronavirus Aid, Relief, and Economic Security Act and approximately $48.8 million of interest savings from repricing and refinancing activities in late 2020 and early 2021. The residential sector benefited from contribution from the January 2020 acquisition of ADT's largest dealer, deurbanization trends during the pandemic, and fewer relocations; overall, gross attrition decreased to 13.1% from 13.4% in 2019. However, this was modestly offset by small business closures. Additionally, the commercial segment was hit by large multisite subscriber declines. Under our base case, we expect the company to maintain adjusted

...ADT performed in line with our expectations in 2020, demonstrating business model and operating resiliency during the pandemic. ADT Inc.'s total revenue increased 3.7%, reflecting 7.1% revenue growth in its consumer and small business segment and 9% revenue decline in the commercial segment. Reported FOCF to debt in 2020 was 4%, in line with our expectations. In 2021, we expect credit measures to remain steady despite tougher comparisons and higher subscriber acquisition costs because of lower interest costs and capital spending efficiency. In 2020, the company tempered dealer-generated customer accounts and bulk account purchases by 43%, which supported FOCF. Moreover, the company benefits from one-time deferral of payroll tax payments provided by the Coronavirus Aid, Relief, and Economic Security Act and approximately $48.8 million of interest savings from repricing and refinancing activities in late 2020 and early 2021. The residential sector benefited from contribution from the January...

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