ADT outlines its long-term growth strategy and mission: Safe,

Significant opportunities to create long-term shareholder value through innovative offering strategy, unparalleled security and premium customer experience

Target of $10 billion in total revenue, approximately $3 billion in adjusted EBITDA and $1 billion in debt reduction by 2025

BOCA RATON, Fla., March 02, 2022 (GLOBE NEWSWIRE) — ADT Inc. (NYSE:ADT), the most trusted brand in smart home and small business security, yesterday hosted an Investor Day and presented its long-term strategy to grow the business and generate long-term shareholder value.

ADT President and CEO Jim DeVries said, “This is a great time for ADT. After several years of progress in reshaping our business, we are well positioned to accelerate our growth. Our customer-focused strategy creates even more reasons for customers to choose ADT, stay with ADT, and spend more with ADT, driving double-digit revenue growth and significant long-term shareholder value.

DeVries continued, “With the right mission and a clear strategy and plan in place, ADT is the only large-scale player positioned to capture the next wave of growth in the security, smart home and electronics markets. residential solar energy. Our commitment is to be safe, smart and sustainable, both for our customers and for our investors.

Mission
ADT unveiled its evolved mission – Safe, smart, sustainable – which reflects how the company responds to growing consumer security needs.

  • Sure – protect what matters most
  • Clever – provide innovative and customer-focused products, technologies and services
  • Sustainable – making life better for our customers and the communities we serve

Long term strategy
ADT presented its long-term strategy for growth in its consumer and small business, commercial and solar segments. The strategy builds on the growth momentum provided by the company’s Google partnership and its commercial and solar businesses.

  • Innovative offers – ADT is building ADT+, a next-generation smart home security platform. Additionally, ADT expects to offer bundled services that provide greater choice and flexibility for customers, bringing together smart home security and energy management as well as mobile vehicle and vehicle security. and smart aging products.
  • Unparalleled security – ADT is investing in its core surveillance capabilities, designed to improve alarm handling times and reduce false alarms while helping to protect customer data and privacy through encrypted and patented methods.
  • Premium experience – ADT is modernizing its customer experience with the planned introduction of flexible installation options, such as “do it with me”, contract-free options, e-commerce and retail, as well as virtual service, which reduces the need to send a technician home.

Long-term financial goals
ADT believes this strategy will create sustainable, long-term revenue and earnings growth and strong free cash flow. As part of today’s Investor Day, management provided financial targets for 2025, including:

  • Total revenue: $10 billion in total revenue, or approximately 15% compound annual growth
  • Earnings: Adjusted EBITDA of approximately $3 billion and over $0.50 of earnings per share
  • Cash flow: Cumulative adjusted free cash flow of $3 billion from 2022 to 2025
  • Debt reduction: Debt reduction of $1 billion from year-end 2021

ESG pillars and report
ADT has outlined eight environmental, social and governance (ESG) pillars that will guide its commitment to respect the environment, promote social responsibility and lead with responsible governance. These pillars are fundamental to who ADT is and guide the company’s safe, smart and sustainable business practices. The company plans to publish its first ESG narrative report this spring. ADT’s ESG Pillars are: Data Privacy and Cybersecurity, Inclusive Diversity and Belonging, Employee Wellness and Development, Customer and Community Health and Safety, environment, climate change and risk management, responsible governance and product safety and quality.

ADT Investor Day 2022
Presentation materials and a replay of the event, which provide additional context to ADT’s 2025 goals and long-term growth strategy, are available on ADT’s Investor Relations website at https: //investor.adt.com.

Note on 2025 targets
These financial objectives are ambitious and do not reflect the orientations of the company or the projections of future results. ADT provides no guidance except for its current fiscal year.

ADT does not provide forward-looking targets for GAAP financial measures other than total revenue, earnings per share or a quantitative reconciliation to GAAP for non-GAAP targets for Adjusted EBITDA, Cash Flow. cumulative adjusted free cash or net debt. Please see “Non-GAAP Financial Measures” for more information.

FORWARD-LOOKING STATEMENTS
ADT has made statements in this press release that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included herein are, or may be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the protections of the safe harbor provided thereunder. . These forward-looking statements relate to our long-term growth strategy, evolved corporate mission, long-term financial goals, ESG program and intentions, and other matters. Forward-looking statements can be identified by various words such as “expects”, “intends”, “will”, “anticipates”, “believes”, “confident”, “continues”, “proposes”, “seeks”, “could”, “may”, “should”, “estimates”, “plans”, “could”, “goals”, “objectives”, “targets”, “planned”, “projects” and similar expressions These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. ADT cautions that such statements are subject to risks and uncertainties, many of which are beyond ADT’s control, and could cause future events or results to differ materially from those set forth or implied in this press release, including, among other things, risks and uncertainties relating to the Company’s ability to successfully implement its strategy in the long term, to develop and market products s and services, to deliver an exceptional customer experience, to implement and adhere to a successful corporate mission, to implement and adhere to successful ESG strategies and initiatives, as well as the risk factors that are described in the Company’s Annual Report on Form 10-K, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” therein. Any forward-looking statement made in this press release speaks only as of the date on which it is made. ADT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

With respect to our long-term financial objectives, the Company does not provide a quantitative reconciliation of forward-looking adjusted EBITDA and year-to-date adjusted free cash flow to net income and net cash provided by operating activities, which are the most directly comparable GAAP. measurements respectively. These GAAP measures cannot be reliably predicted or estimated without unreasonable effort due to their dependence on future uncertainties, such as adjusting for the items listed below. In addition, information about other adjusting items that is not currently available to the Company could have a potentially unpredictable and potentially material impact on its future GAAP financial results.

We define adjusted EBITDA as net income adjusted for (i) interest; (ii) taxes; (iii) depreciation and amortization, including depreciation of subscriber system assets and other fixed assets and amortization of concessionaires and other intangible assets; (iv) amortization of deferred costs and deferred revenue associated with subscriber acquisitions; (v) stock-based compensation expense; (vi) merger, restructuring, integration and others; (vii) losses on extinguishment of debt; (viii) radio conversion costs net of any related incremental revenue earned; and (ix) other items of income/gain or expense/loss such as impairment charges, financing and consent fees, or acquisition-related adjustments.

There are significant limitations to the use of Adjusted EBITDA, as it does not reflect certain significant items that directly affect our net income or net loss (the most comparable GAAP measure). We define free cash flow as cash flow from operating activities less cash outlays for capital expenditures. We define capital expenditures to include accounts purchased through our authorized dealer network or third parties outside of our authorized dealer network, expenditures on subscriber system assets, and purchases of goods and services. equipment. These items are subtracted from cash flow from operating activities as they represent long-term investments necessary for normal business activities.

We then define adjusted free cash flow as free cash flow adjusted for net cash flows related to (i) the net proceeds of our trade receivables facility; (ii) fundraising and consent fees; (iii) restructuring and integration; (iv) capital expenditures related to integration; (v) radio conversion costs net of any related incremental revenue received; and (vi) other payments or receipts that may obscure our operating results or business trends.

Free cash flow and adjusted free cash flow adjust for cash items that are ultimately at the discretion of management and therefore may imply that there is less or more cash available than the GAAP measure more comparable. Free Cash Flow and Adjusted Free Cash Flow are not intended to represent residual cash flow for discretionary spending since debt repayment requirements and other non-discretionary spending are not deducted.

About ADT Inc.
ADT provides safe, smart and sustainable solutions for people, homes and businesses. Through innovative products, partnerships, and the largest network of smart home security professionals in the United States, we empower people to protect and connect what matters most. For more information, visit www.adt.com.

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