ADT Inc. (NYSE:ADT), a $6.67 billion market cap provider of security and automation solutions with impressive annual revenue of $5.14 billion, announced key changes in its leadership. The company's stock has shown strong momentum, delivering a 20.76% return over the past year.
According to InvestingPro analysis, ADT currently appears undervalued relative to its Fair Value. Stephanie Drescher has retired from her position on the company's Board of Directors as of December 4, 2024.
Her retirement aligns with ADT's transition from a "controlled company" as defined by the New York Stock Exchange (NYSE) rules, following a reduction in ownership by Apollo Global Management (NYSE:APO), Inc.
InvestingPro data shows ADT maintains a strong financial position with an impressive 79.49% gross profit margin and a "Good" overall Financial Health Score. This change necessitates a majority of independent directors on the Board within 12 months.
Drescher's departure from the Board, where she served as a Class III director with a term set to expire at the 2026 Annual Meeting of Stockholders, is not due to any disagreement with ADT's operations, policies, or practices, as clarified in the company's SEC filing. She was previously designated by funds managed by affiliates of Apollo.
In another significant move, Wayne D. Thorsen, Executive Vice President and Chief Business Officer, informed ADT of his intention to resign, effective December 13, 2024. Thorsen, a named executive officer of the company, will be joining another public company as Chief Operating Officer.
The announcement was made in a Form 8-K filed with the Securities and Exchange Commission on December 9, 2024, reflecting the company's commitment to transparency and adherence to corporate governance standards. For deeper insights into ADT's financial health and growth prospects, investors can access comprehensive analysis through the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.
ADT has not yet announced successors for either role. The company, headquartered in Boca Raton, Florida, is known for its security, fire, and life safety monitoring services. This leadership transition comes at a time when the company is no longer under the control of Apollo and is adjusting its board composition to meet NYSE's independent director requirements.
The information is based on a press release statement.
In other recent news, ADT Inc. has made significant strides in its financial and strategic operations. The security solutions provider reported a 5% increase in total revenue for the third quarter of 2024, reaching $1.2 billion. The company's recurring monthly revenue also rose by 2% to $359 million, while the adjusted EBITDA grew by 6% to $659 million.
ADT also announced a secondary public offering of 56 million shares, with an option for underwriters to purchase an additional 8.4 million shares. Concurrently, the company plans to repurchase 16 million shares as part of its ongoing share repurchase program. The shares being repurchased won't involve underwriting fees, and Barclays (LON:BARC), Citigroup (NYSE:C), and BTIG may sell the shares on various platforms.
The company has additionally entered into an amended and restated credit agreement, refinancing its existing $1.984 billion senior secured term facility. This strategic financial move allows ADT to optimize its debt structure under the same terms as the previous agreement, maintaining the obligations set forth in the existing credit agreement.
Moreover, as part of its growth initiatives, ADT acquired a customer portfolio for $81 million, adding 49,000 subscribers. This acquisition aligns with the company's ongoing growth initiatives, which also include an extended partnership with Google (NASDAQ:GOOGL) and a new service offering with State Farm. These recent developments reflect ADT's commitment to growth and strategic planning.
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