ADT Reports Costs for Exit/Disposal Activities on Jan 19

Ticker: ADT · Form: 8-K · Filed: 2024-01-24T00:00:00.000Z

Sentiment: neutral

Topics: restructuring, corporate-action, regulation-fd

TL;DR

**ADT is reporting costs tied to exiting or disposing of business activities, signaling potential restructuring.**

AI Summary

ADT Inc. filed an 8-K on January 24, 2024, reporting an event that occurred on January 19, 2024, related to 'Cost Associated with Exit or Disposal Activities,' 'Regulation FD Disclosure,' and 'Other Events.' This filing indicates that ADT is likely undergoing some form of restructuring or strategic change that involves costs for exiting or disposing of certain activities. For investors, this matters because such activities can impact future profitability and operational efficiency, potentially leading to one-time charges or long-term benefits depending on the nature of the changes.

Why It Matters

This filing signals potential restructuring or strategic shifts at ADT, which could affect its financial performance and future business direction. Investors should monitor for details on the specific activities and their expected financial impact.

Risk Assessment

Risk Level: medium — The filing mentions 'Cost Associated with Exit or Disposal Activities' without specific details, which introduces uncertainty about the financial impact and scope of the changes.

Analyst Insight

A smart investor would monitor ADT's upcoming disclosures for specifics on the 'exit or disposal activities' to assess their financial impact and strategic rationale before making investment decisions.

Key Numbers

Key Players & Entities

Forward-Looking Statements

FAQ

What specific event did ADT Inc. report in this 8-K filing?

ADT Inc. reported an event on January 19, 2024, related to 'Cost Associated with Exit or Disposal Activities,' 'Regulation FD Disclosure,' and 'Other Events,' as per the Item Information in the filing.

When was the earliest event reported in this 8-K filing?

The earliest event reported in this 8-K filing occurred on January 19, 2024, as stated in the 'Date of Report (Date of earliest event reported)' section.

What is ADT Inc.'s trading symbol and on which exchange is its common stock registered?

ADT Inc.'s common stock trades under the symbol 'ADT' and is registered on the New York Stock Exchange, according to the 'Securities registered pursuant to Section 12(b) of the Act' section.

What is the par value of ADT Inc.'s Common Stock?

The par value of ADT Inc.'s Common Stock is $0.01 per share, as indicated in the 'Title of each class' column for 'Common Stock, par value $0.01 per share'.

What is the business address and phone number of ADT Inc. as listed in the filing?

ADT Inc.'s business address is 1501 Yamato Road, Boca Raton, Florida 33431, and its business phone number is (561) 988-3600, as detailed in the 'BUSINESS ADDRESS' and 'BUSINESS PHONE' sections of the filing.

Filing Stats: 1,531 words · 6 min read · ~5 pages · Grade level 14.8 · Accepted 2024-01-24 17:07:04

Key Financial Figures

Filing Documents

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. Exit from Solar Business As previously disclosed, in November 2023, ADT Inc. (the "Company" or "ADT") announced a plan to streamline its solar business to focus on the top performing markets and rationalize the overhead and infrastructure of the business. As part of this plan, the Company closed a significant number of branches that operate the solar business along with making associated headcount reductions. On January 19, 2024, the Company's board of directors (the "Board of Directors") approved a plan to fully exit the residential solar business, which may include the transition of components of the business to other parties, after a strategic review of the business and continued macroeconomic and industry pressures. The exit from the residential solar business is expected to be completed during 2024. The Company expects to incur cash expenditures and other non-cash charges related to the exit in 2024. At the time of this filing, the Company has determined that it is unable in good faith to provide an estimate of the total amount or range of amounts of major types of costs, including employee separation costs, contract terminations, and other related costs, expected to be incurred in connection with this exit plan. The Company plans to file an amendment to this Current Report on Form 8-K once these estimates or a range of estimates of such charges are determined.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. Common Stock Dividends On January 24, 2024, the Company issued a press release (the "Press Release") announcing the exit from the residential solar business and the authorization of the Share Repurchase Plan (defined below). A copy of the Press Release is being furnished herewith as Exhibit 99.1 and an accompanying investor presentation (the "Investor Presentation") is being furnished herewith as Exhibit 99.2; both are incorporated herein by reference in their entirety. In this Press Release, the Company also announced a 57% increase in the quarterly cash dividend to $0.055 per share to holders of the Company's common stock and Class B common stock of record on March 14, 2024. The dividend will be paid on or about April 4, 2024. The information contained in this Item 7.01, including Exhibits 99.1 and 99.2, is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

01 Other Information

Item 8.01 Other Information. Share Repurchase Plan On January 24, 2024, the Company's Board of Director's announced a share repurchase plan (the "Share Repurchase Plan"), pursuant to which the Company is authorized to repurchase, through late January 2025, up to a maximum aggregate amount of $350 million of shares of the Company's common stock under this Share Repurchase Plan. The Company may effect these repurchases pursuant to one or more open market or private transactions, including pursuant to a plan that qualifies for the affirmative defense provided by Rule 10b51 under the Exchange Act, or pursuant to one or more accelerated share repurchase agreements. The Company is not obligated to repurchase any of its shares of common stock, and the timing and amount of any repurchases will depend on legal requirements, market conditions, stock price, the availability of the safe harbor provided by Rule 10b-18 under the Exchange Act, alternative uses of capital, and other factors.

Forward Looking Statements

Forward Looking Statements ADT has made statements in this filing that are forward-looking and therefore subject to risks and uncertainties, including those described below. All statements, other than statements of historical fact, included in this document are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable rules and regulations of the Securities and Exchange Commission (the "SEC") and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, the Company exiting the residential solar business and the expected costs and benefits of such exit; the repurchase of shares of the Company's common stock under the authorized share repurchase program; the Company's ability to reduce debt or improve leverage ratios, or to achieve or maintain its longterm leverage goals; the integration of the strategic bulk purchase of customer accounts; any stated or implied outcomes with regards to the foregoing; and other matters. Without limiting the generality of the preceding sentences, any time the Company uses the words "expects," "intends," "will," "anticipates," "believes," "confident," "continue," "propose," "seeks," "could," "may," "should," "estimates," "forecasts," "might," "goals," "objectives," "targets," "planned," "projects," and, in each case, their negative or other various or comparable terminology, and similar expressions, the Company intends to clearly express that the information deals with possible future events and is forward-looking in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. 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

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Description 99.1 P ress R elease dated January 24, 2024 99.2 Investor Presentation 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: January 24, 2024 ADT Inc. By: /s/ David W. Smail David W. Smail Executive Vice President, Chief Legal Officer and Secretary

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