Ascent Capital Group, Inc., through its wholly-owned operating subsidiary, Monitronics International, Inc. (Monitronics), provides security alarm monitoring services. The company’s security alarm monitoring services include monitoring signals arising from burglaries, fires, medical alerts, and other events though security systems at subscribers’ premises. It also provides customer service and technical support. With subscribers in all 50 states, the District of Columbia, Puerto Rico, and Canada, the company provides a range of mainly residential security services, including hands-free two-way interactive voice communication with the monitoring center, cellular options, and an interactive service option, which allows the customer to control their security system remotely using a computer or smart phone. The company provides additional services, such as maintenance and contract monitoring. Contract monitoring includes fees charged to other security alarm companies for monitoring their accounts on a wholesale basis. As of December 31, 2013, the company provided contract monitoring services for approximately 98,000 accounts. Its authorized independent dealers, including the dealer network, are small businesses that sell and install alarm systems. During 2013, the company acquired alarm monitoring contracts through its dealer network of approximately 620 dealers. The company primarily provides monitoring services, as well as billing and 24-hour telephone support through its central monitoring station, located in Dallas, Texas. Strategy The company’s strategy includes improving subscriber retention; improving economics of business model; and expanding its network of dealers. Seasonality The company’s operations are subject to a certain level of seasonality. Since various household moves take place during the second and third calendar quarters of each year (year ending December 2013), its disconnect rate and expenses related to retaining customers are higher in those calendar quarters than in the first and fourth quarters. There is also a slight seasonal effect resulting in higher new customer volume and related cash expenditures incurred in investment in new subscribers in the second and third quarters. Intellectual Property Monitronics has a registered service mark for the Monitronics name and a service mark for the Monitronics logo. Competition The company competes with Central Security Group, Inc.; Guardian Protection Services, Inc.; and The ADT Corporation.
ascent capital group inc-a
(ASCMA:Consolidated Issue Listed on NASDAQ Global Select )
5251 DTC Parkway
Greenwood Village, CO 80111
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