ADT Inc (ADT) 2020 Q1 法說會逐字稿

Greetings. Welcome to ADT Inc.'s First Quarter 2020 Earnings Conference Call. (Operator Instructions) Please note, this conference call is being recorded.

問候。歡迎參加 ADT Inc. 2020 年第一季財報電話會議。 （操作員說明）請注意，本次電話會議正在錄音。

I would now like to turn the conference over to your host, Mr. Derek Fiebig, Vice President, Investor Relations. Sir, you may begin.

現在我想將會議交給東道主投資者關係副總裁德里克·菲比格 (Derek Fiebig) 先生。先生，您可以開始了。

Thank you, operator, and thank you, everyone, for joining ADT's First Quarter 2020 Earnings Conference Call. This afternoon, we issued a press release and slide presentation of our financial results. These materials are available on our website at investor.adt.com.

謝謝業者，也謝謝大家參加 ADT 2020 年第一季財報電話會議。今天下午，我們發布了財務業績的新聞稿和幻燈片簡報。這些資料可在我們的網站 Investor.adt.com 上取得。

Our remarks today will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we've described in our press release issued this afternoon and in our filings with the SEC.

我們今天的言論將包括 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。這些風險包括我們在今天下午發布的新聞稿和向美國證券交易委員會提交的文件中所述的事項等。

Please note that all forward-looking statements speak only as of the time they are made, and we disclaim any obligation to update these forward-looking statements.

請注意，所有前瞻性陳述僅代表其作出時的情況，我們不承擔更新這些前瞻性陳述的義務。

During today's call, we'll make reference to non-GAAP financial measures. Our historic and forward-looking non-GAAP financial measures include special items, which are difficult to predict and/or may be mainly dependent upon future uncertainties. For a complete reconciliation of historical non-GAAP to the most comparable GAAP financial measures, please refer to our press release issued this afternoon and our slide presentation, both of which are available on our website.

在今天的電話會議中，我們將參考非公認會計準則財務指標。我們的歷史性和前瞻性非公認會計原則財務指標包括難以預測和/或可能主要取決於未來不確定性的特殊項目。有關歷史非 GAAP 與最具可比性 GAAP 財務指標的完整對照，請參閱我們今天下午發布的新聞稿和我們的幻燈片演示，兩者均可在我們的網站上獲取。

With me today on today's call are ADT's President and CEO, Jim DeVries; our CFO, Jeff Likosar. Also joining us and available for Q&A is Don Young, our CIO and EVP of Field Operations; and Jason Smith, Senior Vice President of Finance.

與我一起參加今天電話會議的有 ADT 總裁兼執行長 Jim DeVries；我們的財務長傑夫·利科薩爾。我們的 CIO 兼現場營運執行副總裁 Don Young 也加入了我們並接受問答。和財務高級副總裁 Jason Smith。

With that, I'll turn the call over to Jim.

這樣，我就把電話轉給吉姆。

Thank you, Derek, and welcome, everyone, to today's call. I'd like to begin by expressing that our thoughts and well wishes are with all those impacted by the COVID-19 global pandemic. Throughout the crisis, our highest priority has been the health and well-being of our employees, our customers and the communities that we serve. I'm pleased to underscore the ADT business model is strong and resilient. And throughout the crisis, we have continued providing an uninterrupted essential service for millions of our customers across the country.

謝謝德里克，歡迎大家參加今天的電話會議。首先，我謹向所有受新冠肺炎 (COVID-19) 全球大流行影響的人們致以慰問和良好祝愿。在整個危機期間，我們的首要任務是員工、客戶和我們所服務的社區的健康和福祉。我很高興地強調 ADT 商業模式是強大且有彈性的。在整個危機期間，我們繼續為全國數百萬客戶提供不間斷的基本服務。

In a few minutes, I'll share some comments regarding our first quarter, but I'd like to begin by outlining our immediate and comprehensive response to the COVID-19 pandemic, which was executed with an eye toward ensuring ADT emerges even stronger on the other side of these unprecedented events.

幾分鐘後，我將分享一些關於我們第一季的評論，但我想首先概述我們對 COVID-19 大流行的立即和全面的反應，執行該反應的目的是確保 ADT 在這些前所未有的事件的另一面。

In today's slide presentation, we've listed many of the specific actions we've taken to protect the welfare of our workforce and customers and optimize our approach during the crisis. We significantly enhanced communication for both employees and customers. We deployed protective equipment throughout our field organization. We instituted a health checklist for ADT employees who interact directly with customers. We implemented a number of flexible scheduling options and temporarily discontinued door-to-door sales.

在今天的幻燈片簡報中，我們列出了為保護員工和客戶的福利並在危機期間優化我們的方法而採取的許多具體行動。我們顯著加強了員工和客戶的溝通。我們在整個現場組織中部署了防護設備。我們為直接與客戶互動的 ADT 員工製定了健康檢查表。我們實施了許多靈活的調度選項，並暫時停止了上門銷售。

The strength of our business model and our cash flows enabled us to provide steady employment for the majority of our employees. Voluntary turnover, as would be expected, has significantly improved. Realizing that some associates would be better served by taking voluntary furloughs, we made these temporary unpaid leaves available to our employees as well. This well-received practice had the benefit of helping to manage short-term supply and demand while also managing our costs.

我們強大的業務模式和現金流使我們能夠為大多數員工提供穩定的就業機會。正如預期的那樣，自願營業額已顯著改善。意識到自願休假可以更好地為一些員工提供服務，我們也為我們的員工提供了這些臨時無薪休假。這種廣受好評的做法有助於管理短期供需，同時管理我們的成本。

Notably, we implemented a work-from-home policy that was embraced by ADT employees, including the vast majority of our call center associates. In response to the coronavirus, we were able to move more than 90% of our call center employees to work remotely in the span of weeks, an effort that was previously almost unthinkable. Productivity has been maintained, and across a number of metrics, performance has actually improved. We're already developing plans to implement longer term learnings we've experienced during the crisis.

值得注意的是，我們實施了一項受到 ADT 員工（包括絕大多數呼叫中心員工）歡迎的在家工作政策。為了應對冠狀病毒，我們在幾週內將超過 90% 的呼叫中心員工轉移到遠端工作，這在以前幾乎是不可想像的。生產力得到了維持，並且在許多指標上，性能實際上得到了提高。我們已經在製定計劃，以實施我們在危機期間經歷的長期經驗教訓。

I couldn't be more proud of the performance and collective effort of 20,000 employees and 200 dealer partners. They've delivered on our brand promise throughout the crisis, proving ADT is an essential business in all environments.

我對 20,000 名員工和 200 家經銷商合作夥伴的表現和集體努力感到無比自豪。他們在整個危機期間兌現了我們的品牌承諾，證明 ADT 是所有環境中的重要業務。

I'd like to turn to our first quarter performance. It was a strong quarter for us to start the year, during which, we successfully balanced our financial, operational and strategic objectives. Our first quarter revenues of $1.4 billion increased 10% over the prior year despite the loss of contribution from our Canadian operations, which we sold last year. This growth was led by higher reported installation revenues, reflecting an increase in our mixture of outright sales to residential customers and the continued successful execution of our commercial growth strategy.

我想談談我們第一季的業績。這是我們新年伊始的一個強勁季度，在此期間，我們成功平衡了我們的財務、營運和策略目標。儘管我們去年出售的加拿大業務的貢獻有所減少，但我們第一季的收入仍達到 14 億美元，比上年增長了 10%。這一增長是由報告的安裝收入增加所帶動的，反映出我們對住宅客戶的直接銷售的增加以及我們商業成長策略的持續成功執行。

We also benefited from our continued strong residential interactive penetration. As anticipated, our adjusted EBITDA of $539 million was down from $621 million in the prior year period, largely due to the expensing of previously capitalized costs associated with the acquisition of our leading dealer, Defenders, as well as the sale of our Canadian operations last year.

我們也受益於持續強勁的住宅互動滲透率。正如預期的那樣，我們調整後的EBITDA 為5.39 億美元，低於去年同期的6.21 億美元，這主要是由於與收購我們的領先經銷商Defenders 以及去年出售我們的加拿大業務相關的先前資本化成本的支出。

Our free cash flow before special items remained very robust at $173 million. Jeff will provide additional detail on these topics shortly.

我們不計特殊項目的自由現金流仍然非常強勁，達到 1.73 億美元。 Jeff 很快就會提供有關這些主題的更多詳細資訊。

Of particular note, we had a strong quarter adding new customers, aided by Defenders in a bulk acquisition and finished with more subscribers at the end of the first quarter than we had at the beginning of the year. This is the first net adds in any quarter for ADT since 2015. Along with unit adds, our recurring revenue, or RMR additions, were also strong and brought our quarter end RMR balance to $339 million, up over $6 million sequentially from the fourth quarter.

特別值得注意的是，在 Defenders 大規模收購的幫助下，我們的新客戶成長強勁，第一季末的訂戶數量比年初還要多。這是自2015 年以來ADT 在任何季度的首次淨增加。季度連續增加超過600 萬美元。

Our trailing 12-month revenue attrition remained stable at 13.5%, up 10 basis points sequentially. Looking forward, as many of you know, relocations drive about 1/3 of our attrition. And partially because relocations are lower in the current environment, our April retention was better than our internal budget.

我們過去 12 個月的營收損耗穩定在 13.5%，比上一季上升 10 個基點。展望未來，正如你們許多人所知，搬遷將導致我們約 1/3 的人員流失。部分原因是當前環境下的搬遷較少，我們 4 月的留存率高於我們的內部預算。

Our trailing 12-month revenue payback improved to 2.3 years, down from 2.4 a year earlier, with the improvement driven by higher installation revenue, benefits from the successful national launch of our consumer financing program and efficiency in sales and installation spend.

我們過去12 個月的收入回收期從一年前的2.4 年縮短至2.3 年，這一改善是由安裝收入增加推動的，受益於我們在全國成功推出的消費者融資計劃以及銷售和安裝支出的效率。

Turning to the recession resiliency demonstrated by our business. While acknowledging there is significant uncertainty that remains and we don't know precisely how COVID-19 and the macroeconomic environment will play out, I believe sharing some color on our business characteristics as well as some early second quarter trend will help validate why we're still able to provide strong guidance ranges during this pandemic crisis.

談到我們的業務所展現的經濟衰退彈性。雖然我們承認仍然存在很大的不確定性，而且我們並不確切知道COVID-19 和宏觀經濟環境將如何發展，但我相信分享我們的業務特徵以及第二季初的一些趨勢將有助於驗證我們的原因在這場大流行危機期間，我們仍然能夠提供強有力的指導範圍。

For residential sales, we're seeing a reasonably resilient outcome through April and early May. As mentioned, we temporarily suspended some of our sales practices, but we're already beginning in certain markets to return to our traditional approaches. While we obviously see a lower number of leads, we've witnessed a significantly higher sales conversion rate, reflecting strong intent to buy security. It's more of a qualitative observation, but our sense is that shelter-in-place consumers are more aware than ever of the value of ADT security and automation systems in their homes. The brand is strong and trusted. And in the truest sense of the word, our service is considered essential.

對於住宅銷售，我們看到四月和五月初的結果相當有彈性。如前所述，我們暫時停止了一些銷售做法，但我們已經開始在某些市場恢復傳統方法。雖然我們明顯看到銷售線索數量減少，但我們看到銷售轉換率顯著提高，反映出購買安全的強烈意願。這更多的是定性觀察，但我們的感覺是，就地避難的消費者比以往任何時候都更意識到 ADT 安全和自動化系統在其家中的價值。該品牌實力雄厚，值得信賴。從最真實的意義上來說，我們的服務被認為是必不可少的。

Also continuing to perform well throughout the crisis has been our new financing program and pricing changes. The acquisition of Defenders, which closed in early Q1, now provides us with several strategic and financial benefits. In the first quarter, we realized the volume and improvements and creation costs that was expected from the transaction. The integration has gone very well, and we're engaged in optimizing the combined sales ecosystem. We also launched a controlled pilots or an e-commerce offering of our Pro Install solutions during the quarter, and we continue to drive smart, meaningful partnerships. I'm very bullish about the inroads we're making with multifamily partners and large U.S. homebuilders.

在整個危機期間，我們的新融資計劃和定價變化也持續表現良好。對 Defenders 的收購已於第一季初完成，現在為我們帶來了多項策略和財務收益。在第一季度，我們實現了交易預期的數量、改進和創建成本。整合進展順利，我們正致力於優化合併後的銷售生態系統。我們也在本季推出了 Pro Install 解決方案的受控試點或電子商務產品，並且我們將繼續推動明智、有意義的合作夥伴關係。我非常看好我們與多戶家庭合作夥伴和美國大型住宅建築商的進展。

We have a highly variable residential SAC model, providing a near-term financial hedge against declines in the short-term sales and supporting strong near-term cash flow generation. Given market dynamics, we're exploring very high-quality bulk acquisitions as an option for deploying capital for low-risk, high-return growth.

我們擁有高度可變的住宅 SAC 模型，可以針對短期銷售下降提供短期財務對沖，並支持強勁的短期現金流產生。鑑於市場動態，我們正在探索非常高品質的大量收購，作為部署資本實現低風險、高回報成長的選擇。

In short, with our residential businesses, we have a recession-resilient business model with high-recurring revenues that will continue to perform well in this environment. Our small business and commercial channels represent 17% of our RMR balance and 29% of our total revenue. As you might expect, these portions of our business have been more impacted as many businesses we service had been temporarily closed.

簡而言之，我們的住宅業務擁有抗衰退的商業模式和高經常性收入，在這種環境下將繼續表現良好。我們的小型企業和商業管道占我們的 RMR 餘額的 17% 和總收入的 29%。正如您所料，我們業務的這些部分受到的影響更大，因為我們服務的許多企業已暫時關閉。

We started the strong year in commercial with a 10% organic growth rate through February before declining in March as COVID-19 effects came into play, and we ended the quarter with 6% organic growth. While it's still early, we expect the new commercial sales impact to be more pronounced than with our residential sales and the pressure are expected commercial installation revenues on a year-over-year basis.

我們在商業領域以10% 的有機成長率開始了強勁的一年，直到2 月份，隨著COVID-19 的影響，我們在3 月份出現下滑，本季結束時，我們的有機成長率為6% 。雖然現在還為時過早，但我們預計新的商業銷售影響將比住宅銷售更為明顯，並且預計商業安裝收入將比去年同期面臨壓力。

With that said, we are highly focused and believe our commercial growth over time will be deferred, but not diminished. Going forward, we believe the environment will give us the opportunity to aggressively compete with weakened and smaller competitors.

話雖如此，我們高度專注，並相信隨著時間的推移，我們的商業成長將被推遲，但不會減弱。展望未來，我們相信環境將為我們提供與實力較弱和規模較小的競爭對手積極競爭的機會。

In 2020, we will focus on completing our integrations, continue to seek attractive tuck-in commercial acquisitions and on managing our costs. We'll also continue to focus on providing world-class service as well as new sales. Worth mentioning, our National Account organization received a global commitment just this week for the largest retail deal in the history of our company. We'll be working through contractual details and plan to begin this project in the second quarter.

2020 年，我們將專注於完成整合，繼續尋求有吸引力的商業收購並管理我們的成本。我們也將繼續專注於提供世界一流的服務以及新的銷售。值得一提的是，我們的國民帳戶組織就在本週收到了我們公司歷史上最大的零售交易的全球承諾。我們將研究合約細節，並計劃在第二季開始該專案。

In summary, we're managing well through the COVID-19 crisis, protecting the health and well-being of our employees and customers, while also advancing our strategies to create long-term shareholder value. We had a strong first quarter with robust free cash flow continuing the momentum developed in 2019. Even in this highly fluid environment, I'm as confident as ever, we'll continue to drive efficient growth over time, generating strong free cash flow and performing well. We have a number of initiatives taking root across core residential, commercial and DIY, which will further enhance long-term shareholder value.

總之，我們在應對 COVID-19 危機方面表現出色，保護了員工和客戶的健康和福祉，同時推進了創造長期股東價值的策略。我們第一季表現強勁，自由現金流強勁，延續了2019 年發展的勢頭。 即使在這種高度流動的環境中，我一如既往地充滿信心，我們將繼續推動高效增長，產生強勁的自由現金流，並表現良好。我們在核心住宅、商業和 DIY 領域採取了多項舉措，這將進一步提高長期股東價值。

With that, I'll now turn this call over to Jeff, who will take us through more specifics related to our performance, strong financial position and our updated outlook for the year.

現在，我將把這個電話轉給傑夫，他將向我們介紹與我們的業績、強勁的財務狀況和我們今年的最新展望相關的更多細節。

Thank you, Jim, and thank you, everyone, for joining us today. I will take a few minutes to summarize our first quarter results, share some perspective on 2020, and then we'll open the call to questions.

謝謝吉姆，也謝謝大家今天加入我們。我將花幾分鐘時間總結我們第一季的業績，分享對 2020 年的一些看法，然後我們將開始提問。

We are very pleased with our overall first quarter financial and operational performance, especially during this challenging environment. We remain highly focused on generating positive cash flows. And the highlight for the quarter is free cash flow before special items of $173 million, which was stronger than the first quarter of 2019 despite more than $65 million in higher cash interest due to the timing of our debt coupons.

我們對第一季的整體財務和營運表現感到非常滿意，特別是在這個充滿挑戰的環境下。我們仍然高度關注產生正現金流。本季度的亮點是不計特殊項目的自由現金流為 1.73 億美元，該數字強於 2019 年第一季度，儘管由於我們的債務息票時間安排，現金利息增加了超過 6500 萬美元。

An important component of our free cash flow growth was efficiency in net subscriber acquisition costs, which were down year-over-year. We concurrently enjoy customer and RMR additions, as Jim mentioned, including an opportunistic high IRR group of bulk accounts that we acquired in late March, along with the benefits from having acquired Defenders.

我們自由現金流成長的一個重要組成部分是淨用戶獲取成本的效率，該成本較去年同期下降。正如 Jim 所提到的，我們同時享受客戶和 RMR 的增加，包括我們在 3 月底收購的機會主義高 IRR 批量帳戶組，以及收購 Defenders 的好處。

This results in improvement in our revenue payback, which on a trailing 12-month basis, declined from 2.4x to 2.3x in the first quarter of 2019 (sic) [2020]. Contributing factors here include the realization of some early benefits of our new consumer financing and revenue model, our acquisition of Defenders, continued commercial revenue growth and our ongoing efforts to drive cost efficiencies.

這導致我們的收入回報率有所改善，在過去 12 個月的基礎上，2019 年第一季的收入回報率從 2.4 倍下降到 2.3 倍（原文如此）[2020]。這裡的促成因素包括我們新的消費者融資和收入模式的一些早期效益的實現、我們對 Defenders 的收購、持續的商業收入成長以及我們不斷努力提高成本效率。

We are always focused on delivering strong net SAC efficiency and free cash flow before special items and this is especially true during 2020, given some of the recent changes in our business in the current environment in which we are operating.

我們始終專注於在特殊項目之前提供強勁的淨 SAC 效率和自由現金流，考慮到我們當前營運環境中的業務最近發生的一些變化，這一點在 2020 年尤其如此。

Before describing some of the other first quarter measures, I want to highlight a few dynamics that are relevant to our reported revenue and adjusted EBITDA and related year-over-year comparisons. First, as a reminder that we sold our Canadian operations in the fourth quarter of last year, which previously comprised approximately 4% of our total revenue and adjusted EBITDA. The second is that our acquisition of Defenders, formerly our largest dealer, will cause us to incur significant additional expenses in our P&L despite the positive cash and economic benefits, as we've shared previously. We expect this to be more than offset by lower capitalized tax. The third is that as we initially launched our consumer financing program and transitioned many of our residential transactions to outright sales. Defenders transactions are also of an outright sales nature. This differs from ADT's historical ADT-owned model and therefore, leads to the recognition of higher installation revenue and the associated costs. Please read our 10-Q and earnings materials for further information.

在描述第一季的其他一些指標之前，我想強調一些與我們報告的收入和調整後的 EBITDA 以及相關同比比較相關的動態。首先，提醒一下，我們在去年第四季出售了加拿大業務，該業務先前約占我們總收入和調整後 EBITDA 的 4%。第二個是，我們對前最大經銷商 Defenders 的收購將導致我們在損益表中產生大量額外費用，儘管正如我們之前所分享的，儘管帶來了積極的現金和經濟效益。我們預計這將被較低的資本稅所抵消。第三個是，我們最初啟動了消費者融資計劃，並將許多住宅交易轉變為直接銷售。捍衛者交易也屬於直接銷售性質。這與 ADT 歷史上 ADT 擁有的模型不同，因此會確認更高的安裝收入和相關成本。請閱讀我們的 10-Q 和收益資料以了解更多資訊。

Our total reported revenues in the quarter grew by approximately 10% year-over-year. The main contributor was installation and other revenue, which increased by $151 million, driven mainly by the higher residential installation revenue I described, along with continued growth in sales to commercial customers.

我們本季報告的總收入年增約 10%。主要貢獻者是安裝和其他收入，增加了 1.51 億美元，這主要是由於我所描述的住宅安裝收入的增加以及商業客戶銷售額的持續增長。

Overall, monitoring and services revenue grew 2% in the U.S., but declined by 2% on a total company reported basis with the divestiture of Canada. Commercial revenue started very strong before some COVID-19 pressure in March, ending with approximately 6% organic growth for the quarter.

總體而言，美國的監控和服務收入成長了 2%，但隨著加拿大業務的剝離，該公司報告的總收入下降了 2%。在 3 月受到 COVID-19 壓力之前，商業收入一開始就非常強勁，最終本季有機成長約 6%。

Our adjusted EBITDA of $539 million was, as expected, down compared to the prior year, with the decline primarily attributable to expenses recognized in our P&L as a result of the Defenders acquisition, the loss of the contribution of Canada's EBITDA and in light of the current environment, an increase in our allowances for credit loss.

正如預期的那樣，我們的調整後 EBITDA 為 5.39 億美元，與上一年相比有所下降，下降的主要原因是收購 Defenders 後在損益表中確認的費用、加拿大 EBITDA 貢獻的損失以及考慮到在在當前環境下，我們增加了信用損失準備金。

As I mentioned, our net subscriber acquisition cost improved in the first quarter, with, as you can see on Slide 13, a shift between capitalized and non-capitalized SAC due to the Defenders acquisition and higher outright sales. The net effect of these dynamics, along with other factors, is the strong free cash flow before special items performance I mentioned earlier.

正如我所提到的，我們的淨訂戶獲取成本在第一季有所改善，正如您在幻燈片13 中看到的那樣，由於Defenders 的收購和更高的直接銷售額，資本化SAC 和非資本化SAC 之間發生了轉變。這些動態以及其他因素的淨效應是我之前提到的特殊項目表現之前的強勁自由現金流。

Turning to our balance sheet. We have continued to drive movements in our capital structure. You can see our well-laddered debt maturities on Slide 16 in our quarterly earnings deck. As we discussed on our March call, during the first quarter, we issued new 6.25% second lien notes due 2028, the proceeds from which we used to redeem our 9.25% notes that were previously due in 2023. Our net debt maturity is not until October of 2021.

轉向我們的資產負債表。我們持續推動資本結構的調整。您可以在我們季度收益表的幻燈片 16 上看到我們分級良好的債務到期日。正如我們在3 月的電話會議上討論的那樣，在第一季度，我們發行了2028 年到期的新的6.25% 第二留置權票據，我們用所得收益贖回了之前於2023 年到期的9.25% 票據。

As we also discussed during our March call, we completed the Defenders acquisition in January for considerations that included $260 million of cash, which we funded partially from our existing revolving credit facility. In addition, we today declared a quarterly dividend of $0.035 per share payable in early July.

正如我們在 3 月的電話會議中所討論的那樣，我們在 1 月完成了對 Defenders 的收購，其中包括 2.6 億美元現金，其中部分資金來自我們現有的循環信貸額度。此外，我們今天宣布將於 7 月初派發每股 0.035 美元的季度股息。

I also want to remind everyone that as part of our consumer financing program and associated revenue model adjustments, we have partnered with Mizuho Bank, which enabled us to enjoy the cash flow benefits we originally piloted with a third-party consumer loan program, but in a way that is largely transparent to our customers and avoids the need for our customers to apply for takeout and administer individual loans with a third-party bank.

我還想提醒大家，作為我們的消費金融計劃和相關收入模式調整的一部分，我們與瑞穗銀行合作，這使我們能夠享受到我們最初透過第三方消費貸款計劃試點的現金流收益，但在這種方式對我們的客戶來說基本上是透明的，並且避免了客戶向第三方銀行申請外帶和管理個人貸款的需要。

We received our first cash inflow from Mizuho in the month of April. We are excited by this program and encouraged by the early results we have seen in higher installation revenues. We have now launched nationally. And over time, we expect this program will reduce our net cost to acquire new customers while also increasing the propensity of residential customers to select and configure more comprehensive systems.

我們在四月收到了來自瑞穗的第一筆現金流入。我們對該計劃感到興奮，並為我們在安裝收入增加方面看到的早期成果感到鼓舞。現在我們已經在全國範圍內推出了。隨著時間的推移，我們預計該計劃將降低我們獲取新客戶的淨成本，同時增加住宅客戶選擇和配置更全面系統的傾向。

Now I'll turn to our updated outlook for 2020, which you can see on Slide 17 in our deck. As a reminder, we shared preliminary guidance in March and referenced some uncertainty as a result of our new revenue model, the Defenders acquisition and the emerging unknowns associated with COVID-19. We described then that we expect to generate strong free cash flow before special items during the year. And we today remain confident in our cash generation capabilities even in challenging macroeconomic environment. Consequently, we are holding the same midpoint on this measure, but widening the range, reflecting our intent to pursue high IRR growth if we continue to selectively invest for the future as we navigate through this uncertain environment.

現在我將轉向我們更新的 2020 年展望，您可以在我們幻燈片的第 17 張幻燈片中看到該展望。提醒一下，我們在 3 月分享了初步指導意見，並提到了由於我們的新收入模式、Defenders 收購以及與 COVID-19 相關的新出現的未知因素而帶來的一些不確定性。我們當時表示，我們預計今年不計特殊項目的自由現金流將會強勁。如今，即使在充滿挑戰的宏觀經濟環境下，我們仍然對我們的現金產生能力充滿信心。因此，我們在這一指標上保持相同的中點，但擴大了範圍，反映出如果我們在這個不確定的環境中繼續有選擇地為未來進行投資，我們就會追求高內部收益率成長。

We are maintaining our range for total revenue at $5 billion to $5.3 billion. Compared to our preliminary guidance in March, we expect some pressure in revenue associated with COVID-19, especially in our sales to commercial customers. We still expect to be in our initial preliminary range due to higher residential installation revenue.

我們將總收入維持在 50 億至 53 億美元的範圍內。與我們 3 月的初步指引相比，我們預計與 COVID-19 相關的收入將面臨一些壓力，特別是在我們向商業客戶的銷售方面。由於住宅安裝收入較高，我們仍預計將處於最初的初步範圍內。

During the course of 2020, we expect to transition the majority of our residential transactions back to our historic ADT-owned structure. This transition will result in lower reported residential installation revenues in the second half of the year compared to the first half of the year.

在 2020 年期間，我們預計將大部分住宅交易轉回我們歷史上 ADT 擁有的結構。這一轉變將導致下半年報告的住宅安裝收入低於上半年。

We are slightly lowering the range for adjusted EBITDA to $2.075 billion to $2.175 billion. The main driver of this change is the lower commercial revenue I just described.

我們將調整後 EBITDA 的範圍小幅下調至 20.75 億美元至 21.75 億美元。這項變化的主要驅動力是我剛才描述的商業收入下降。

Overall, we feel very confident in our ability to drive growth, deliver strong free cash flow before special items and to position our business for continued long-term success.

總體而言，我們對推動成長、在特殊項目之前提供強勁的自由現金流以及使我們的業務持續長期成功的能力非常有信心。

Before turning to Q&A, I'd like to mention a few notable items in our GAAP results. As part of the Defenders acquisition, we allocated approximately $81 million of the transaction consideration to the settlement of a pre-existing revenue sharing relationship, which is recorded directly into earnings. In addition, we incurred a $65 million loss on extinguishment of debt associated with our refinancing of the second lien notes I mentioned earlier.

在進行問答之前，我想提一下我們的 GAAP 業績中的一些值得注意的項目。作為 Defenders 收購的一部分，我們分配了約 8,100 萬美元的交易對價來解決先前存在的收入共享關係，該關係直接記入收益。此外，我們因對我之前提到的第二張留置權票據進行再融資而導致的債務清償而蒙受了 6,500 萬美元的損失。

Also, certain of our interest rate swap cash flow hedges were de-designated in March as the decrease in interest rates caused the hedges to no longer be highly effective. This resulted an approximately $66 million mark-to-market changes reported into earnings.

此外，我們的某些利率掉期現金流量對沖在三月被取消指定，因為利率下降導致避險不再高度有效。這導致收益中報告的按市值計價的變化約為 6600 萬美元。

Wrapping up my comments today, I want to emphasize that we are pleased with our strong overall first quarter results and excited by the opportunities in front of us. We know that we are operating in a second quarter environment with considerable macroeconomic uncertainty and we expect to encounter some near-term challenges, which we have considered in our full year ranges. We feel very fortunate to be able to continue to generate strong positive free cash flow before special items and really use 2020 to leverage the strength of our model position our company to come out of the crisis in an even stronger position.

在結束今天的評論時，我想強調，我們對第一季強勁的整體業績感到滿意，並對擺在我們面前的機會感到興奮。我們知道，我們在第二季度的營運環境中存在相當大的宏觀經濟不確定性，我們預計會遇到一些近期挑戰，我們已經在全年範圍內考慮了這些挑戰。我們感到非常幸運，能夠在特殊項目之前繼續產生強勁的正自由現金流，並真正利用 2020 年充分利用我們模型的優勢，使我們的公司以更強大的地位走出危機。

Thank you again for being on today's call. And with that, operator, please open the line, and we'll be happy to take questions.

再次感謝您參加今天的電話會議。那麼，接線員，請打開線路，我們將很樂意回答問題。

Cathy, if you could please remind participants how to queue up for the question-and-answer period, please.

Cathy，請您提醒參與者如何在問答環節排隊。

(Operator Instructions) And we'll go first to Manav Patnaik of Barclays.

（操作員說明）我們首先請見巴克萊銀行的馬納夫·帕特奈克 (Manav Patnaik)。

Hi. This is actually Greg calling in. I was just hoping to get a little flavor on potential exposures in commercial and small business part of the operation. Maybe some of the exposures relates to retail or restaurants or anything that we should think about where it's potentially more at risk?

你好。這實際上是格雷格打來的。也許一些風險與零售或餐廳或任何我們應該考慮的潛在風險更大的領域有關？

This is Jim. Thanks for the first question. I'll give you some context on COVID-19. And then hopefully, let's get to your question. To start with, ADT is really in the life safety business. We have commitments to our customers, our employees, no matter what circumstances we're in. We're considered as an essential business because we are an essential business. We've never closed and provided uninterrupted service to our customers. While we were doing this, we were focused on the safety of our employees, safety of our customers. We did what a lot of organizations did around communicating and educating the work for flexible scheduling. And then to ensure uninterrupted customer service, we moved to work from home for a large portion of our workforce. Work from home had the silver lining, in that, we're actually going to change our model going forward. We had great employee retention, productivity has been stellar. We see an opportunity for lower real estate costs.

這是吉姆。謝謝你的第一個問題。我將向您介紹一些有關 COVID-19 的背景資訊。然後希望我們能回答你的問題。首先，ADT 確實涉及生命安全業務。無論我們處於什麼情況，我們都對客戶、員工做出承諾。我們從未關閉並為客戶提供不間斷的服務。當我們這樣做時，我們會關注員工的安全和客戶的安全。我們做了很多組織所做的事情，圍繞著溝通和教育工作以實現靈活的安排。然後，為了確保不間斷的客戶服務，我們大部分員工都在家工作。在家工作有一線希望，我們實際上將改變我們未來的模式。我們的員工留任率很高，生產力也非常出色。我們看到了降低房地產成本的機會。

And then in terms of how we're thinking about and managing through the crisis, we've made the conscious decision to take care of our employees, focus on the longer term, and our business model gives us that opportunity. So I'd say probably the most important takeaway in the answer is we're a resilient business. We're operating in a unique environment right now, obviously. We've been focused on playing defense across all our businesses, managing costs closely, navigating the expected challenges, especially in our commercial business, but we're also focused on playing offense. We're implementing changes like the work-from-home model, I just mentioned, focused on recruiting best-in-class talent. We're looking at commercial M&A via tuck-in acquisitions. And then even considering high bulk opportunities that are made available to us in the environment at terrific returns. So it gives you some context for how we're managing the business across both high volume and commercial.

然後，就我們如何思考和管理危機而言，我們有意識地決定照顧我們的員工，專注於長期，而我們的商業模式給了我們這樣的機會。所以我想說，答案中最重要的一點可能是我們是一家有彈性的企業。顯然，我們現在正在一個獨特的環境中運作。我們一直專注於在所有業務中採取防禦措施，密切管理成本，應對預期的挑戰，特別是在我們的商業業務中，但我們也專注於進攻。我們正在實施諸如我剛才提到的在家工作模式之類的變革，重點是招募一流的人才。我們正在考慮透過收購來進行商業併購。然後甚至考慮到我們在環境中獲得的大量機會，並獲得了豐厚的回報。因此，它為您提供了一些有關我們如何管理大批量和商業業務的背景資訊。

Okay. And then maybe just some color on how important historically door-to-door sales has been to the acquisition model? I imagine a lot of that is tilted towards the month to begin with. So just any color there on how to think through the moving pieces?

好的。然後或許只是說明歷史上挨家挨戶銷售對於收購模式的重要性？我想其中很多都是從一開始就傾向於這個月的。那麼關於如何思考移動的部分有什麼顏色嗎？

Yes. The door-to-door sales, we suspended relatively early in the process. We have started to unwind the suspension of door-to-door in markets where shelter-in-place has been easing. It is most important in our dealer organization. They use door-to-door in a more prevalent way than indirect. And it's somewhat important in the SMB market for direct as well. So it's been suspended. It's starting to unwind. The unwind has started about a week or so ago, and we're taking it market-by-market and open it up again.

是的。上門銷售，我們在這個過程中相對較早地暫停了。我們已開始在居家避難放鬆的市場解除到府外送服務的暫停。這在我們的經銷商組織中是最重要的。他們採取挨家挨戶的方式比間接方式更為普遍。對於直接行銷來說，它在中小企業市場中也很重要。所以就被暫停了。開始放鬆了。放鬆大約一周前就開始了，我們正在逐個市場進行調整，然後再次開放。

And next, we'll go to Toni Kaplan of Morgan Stanley.

接下來，我們請摩根士丹利的托尼卡普蘭 (Toni Kaplan) 發言。

Could you talk about April trends in both the residential and commercial side? Just trying to understand if you've seen just an acceleration of further challenges? Or if you've seen a stabilization in both of those businesses?

您能談談四月份住宅和商業方面的趨勢嗎？只是想了解您是否看到了進一步挑戰的加速？或者您看到這兩項業務都趨於穩定？

Hi, Toni, it's Jim. Thanks for the question. Of course, it's a very fluid situation still. We anticipate Q2 to be the worst of it. There were weeks in April where we were at 80% or so of our normal run rate for gross adds. I'd mentioned it on the prior answer that as states begin to relax shelter-in-place, we're seeing very early optimistic signs. From a business standpoint, commercial will probably be the most impacted. And the duration of that impact really depends on the duration of the crisis. Not unimportantly, and I think relevant to your question, the commercial business has less than 10% of new business from construction. So we continue to be bullish about commercial over time, but that will most definitely be the most impacting.

嗨，東尼，我是吉姆。謝謝你的提問。當然，情況仍然非常不穩定。我們預計第二季將是最糟糕的。 4 月的幾周里，我們的毛增量運行率為正常運行率的 80% 左右。我在先前的回答中提到，隨著各州開始放鬆就地避難，我們看到了非常早期的樂觀跡象。從商業角度來看，商業可能受到的影響最大。這種影響的持續時間實際上取決於危機的持續時間。並非不重要的是，我認為與您的問題相關的是，商業業務中來自建築業的新業務不到 10%。因此，隨著時間的推移，我們繼續看好商業化，但這肯定是影響最大的。

And then on the residential side, we anticipate will remain strong. We think that our business model performs well in this kind of environment. And overall, we feel we're in a very good position during an obviously challenging time.

然後在住宅方面，我們預計將保持強勁。我們認為我們的商業模式在這種環境下表現良好。總的來說，我們認為在一個明顯充滿挑戰的時期我們處於非常有利的位置。

That's great. And then I was hoping you could also give an update on the 3G conversion. I'm assuming that home visits are required to switch out the radios. And so I was wondering if there is any sort of push -- pushing back on the costs associated with that program just because of not being able to go into people's houses, tell me if I'm wrong? And just any update on expectations there?

那太棒了。然後我希望您也能提供有關 3G 轉換的最新資訊。我假設需要進行家訪才能關掉收音機。所以我想知道是否有任何形式的推動——僅僅因為無法進入人們的房屋就推遲與該計劃相關的成本，告訴我我是否錯了？那裡的期望有什麼更新嗎？

Hey, Toni, it's Jeff. One thing I'll add to Jim's comment to on April trends we're seeing in March. Jim had mentioned a voluntary furlough program and some other accommodations. We have been able to reasonably well balance our labor with the demand to maintain more efficiency than we otherwise would. Your question is a good question, in that lower activity has led to fewer radio conversions. You'll note in our 10-Q that we're -- we have not changed our range over the life of the program because we don't see any change over the life of the program, but we have lowered the amount that we expect to spend during the course of 2020. And that's because we're doing fewer homes for other reasons. And in light of an environment, we are not launching proactive the way that we otherwise might have. We've always said it continues to be the case that there's a whole host of things that we're pursuing and considering to manage this program over time, including some accommodations from vendors, including technology solutions and including trying to do as many as we can. And we're there for other purposes. So no change to the range overall, but we do expect to spend less during 2020.

嘿，托尼，我是傑夫。我將在吉姆對我們在三月看到的四月份趨勢的評論中添加一件事。吉姆提到了自願休假計劃和其他一些安排。我們已經能夠很好地平衡我們的勞動力和需求，以保持比其他方式更高的效率。你的問題是一個好問題，因為較低的活動導致了無線電轉換的減少。您會在我們的 10-Q 中註意到，我們在計劃的整個生命週期中沒有改變我們的範圍，因為我們在計劃的生命週期中沒有看到任何變化，但我們已經降低了我們的範圍預計2020年期間的支出。鑑於環境，我們不會像原本可能採取的那樣主動採取行動。我們一直說，隨著時間的推移，我們正在追求並考慮管理這個計劃的許多事情，包括供應商的一些調整，包括技術解決方案，包括嘗試做盡可能多的事情。我們在那裡還有其他目的。因此，整體範圍沒有變化，但我們預計 2020 年的支出會減少。

Now we'll go to George Tong of Goldman Sachs.

現在我們請高盛的喬治唐 (George Tong) 發言。

You mentioned you're seeing 80% of the normal run rate for gross adds moving through April. Can you talk about how attrition rates and pricing in residential and commercial performed in the month of April as well?

您提到您看到 4 月份的總添加量僅為正常運行率的 80%。您能否談談 4 月份住宅和商業的流失率和定價表現如何？

George, this is Jim. Thanks for the question. I noticed some weeks in April where we were as low as an 80% run rate the business overall, I think I mentioned this on the earlier answer, the business overall, we see probably April as the toughest month from a gross add perspective. Attrition was better than our budget. We have some tailwinds because of relocation. Relocation, as you know, is about 1/3 of the -- is the cause for about 1/3 of our disconnects. And with the current situation, we have meaningfully fewer relocations. So we've got some tailwind on that front. So soft month on gross adds. Pretty strong month on attrition. And as I mentioned earlier, commercial is the business of the area that we expect to struggle most with.

喬治，這是吉姆。謝謝你的提問。我注意到4 月份的幾個星期，我們的整體業務運行率低至80%，我想我在之前的答案中提到了這一點，整體業務，從總增加的角度來看，我們認為4 月份可能是最艱難的一個月。人員流失率比我們的預算好。由於搬遷，我們有一些順風車。如您所知，搬遷大約是造成我們 1/3 斷線的原因的 1/3。從目前的情況來看，我們的搬遷數量明顯減少了。所以我們在這方面有一些順風。本月總增加額如此疲軟。人員流失率相當強勁的一個月。正如我之前提到的，商業是我們預期最困難的領域的業務。

Hey, George, one thing I'd add Jeff is that we also -- while Jim's comments are reflective of the company in total and in aggregate, we have observed some market differences at different times in different parts of the country. As you can imagine, as the rate of infection changed or as governmental actions changed, we saw ebbs and flows in one part of the country that's been here what we saw in another part of the country and more variation than we have had in normal circumstances.

嘿，喬治，傑夫我要補充的一件事是，我們也——雖然吉姆的評論反映了公司的整體情況和總體情況，但我們觀察到全國不同地區不同時間的一些市場差異。正如你可以想像的那樣，隨著感染率的變化或政府行動的變化，我們在該國的一個地區看到了潮起潮落，我們在該國的另一地區看到了同樣的情況，並且變化比正常情況下更多。

And then any comments on the pricing?

那麼對定價有什麼評論嗎？

Yes. Generally, pricing has -- is more affected by the changes that we've recently made. We're very pleased with the progress that we've made in our overall revenue and pricing model during the first part of 2020, that included the introduction of some financing options. We rolled this out nationally in earnest during the course of February. So we were off to a really good start. We're very, very pleased with what we saw out of the gate, mainly leading to more installed revenue per unit, also leading to enhanced ability to sell more comprehensive systems. So there we had good progress increasing our installed revenue per unit. And while there was some pressure in leads, as Jim described, we haven't changed anything or seeing any material changes in our efforts to roll out and launch that initiative.

是的。一般來說，定價更容易受到我們最近所做的變化的影響。我們對 2020 年上半年整體收入和定價模式的進展感到非常滿意，其中包括引入了一些融資選項。我們在二月認真地在全國範圍內推出了這項計劃。所以我們有了一個非常好的開始。我們對剛開始看到的情況非常非常滿意，主要是增加了單位安裝收入，同時也提高了銷售更全面系統的能力。因此，我們在增加單位安裝收入方面取得了良好進展。正如吉姆所描述的，雖然潛在客戶面臨一些壓力，但我們在推出和啟動該計劃的努力中沒有做出任何改變，也沒有看到任何實質變化。

That's helpful.

這很有幫助。

And George, you asked about April, but I want to give just a little bit of color on the quarter on both sides, the high-volume side and the commercial side. On the high-volume side, it was a great quarter for us. We picked up some extra accounts via the Defenders acquisition. But even excluding those accounts, we were net positive in adds. And I think that's the first time in 5 years. And it's without a change on our focus. We're still focused on capital efficient growth, still focused on disciplined growth. And so we feel really good about the quarter from a gross adds perspective on high volume. And then in commercial, we had been targeting a 10% growth rate, had a strong start to the year, January, February, both at 10%, March started to be impacted by the crisis. And so we came in single-digit on organic growth for the quarter. But we felt great about the start in the pre-COVID experience on commercial, and then we felt great about gross adds across the board for the quarter in high volume.

喬治，你問到了四月份的情況，但我想對這個季度的兩側、大批量側和商業側提供一些顏色。從銷售來看，這對我們來說是一個很棒的季度。我們透過收購 Defenders 獲得了一些額外的帳戶。但即使排除這些帳戶，我們的增量仍為淨正值。我認為這是五年來的第一次。我們的重點並沒有改變。我們仍然關注資本效率成長，仍然關注有紀律的成長。因此，從高銷量的總增加角度來看，我們對本季感覺非常好。然後在商業方面，我們的目標是 10% 的成長率，今年開局強勁，1 月、2 月均為 10%，3 月開始受到危機的影響。因此，本季我們的有機成長僅為個位數。但我們對新冠疫情前的商業體驗的開始感到滿意，然後我們對本季的高銷量全面增加感到滿意。

Got it. That's helpful. And just a quick follow-up on cost actions. Your subscriber acquisition costs are highly variable in nature. Can you talk about some of the more fixed costs that you might be addressing in order to maintain your free cash flow midpoint?

知道了。這很有幫助。以及對成本行動的快速跟進。您的訂戶獲取成本本質上變化很大。您能否談談為了維持自由現金流中點而可能需要解決的一些更固定的成本？

Yes. So George, we have a good amount of flexibility in our subscriber acquisition costs with certain portions of our subscriber acquisition costs are highly variable. So dealer additions, for example, are almost 100% variable. On the direct side, the equipment cost is, of course, variable. Incremental labor is variable. And then you get into things like overhead that is a bit less variable and there are components of advertising can be less variable. So we're managing this closely. The door-to-door piece we talked about earlier, that's a 100% variable. So if those aren't happening in the dealer channel, I mean, we're incurring no cost. And as we manage through the rest of the year, we're looking to balance the maintenance of our capabilities, the maintenance of certain advertising, the continuity of our workforce against appropriately reducing our cost structure, where we need to, to the extent that we see lower demand.

是的。所以喬治，我們在訂戶獲取成本方面有很大的靈活性，我們的訂戶獲取成本的某些部分是高度可變的。例如，經銷商的增加幾乎是 100% 可變的。從直接角度來看，設備成本當然是變動的。增量勞動力是可變的。然後你會遇到諸如管理費用之類的變化較小的事情，廣告的某些組成部分可以變化較小。所以我們正在密切管理這個問題。我們之前談到的上門服務，這是一個 100% 的變數。因此，如果經銷商通路中沒有發生這些情況，我的意思是，我們不會產生任何成本。在我們今年剩餘時間的管理中，我們希望在維持我們的能力、維持某些廣告、維持我們的員工隊伍與適當降低我們的成本結構之間取得平衡，只要我們需要，就可以達到以下程度：我們看到需求下降。

And now we'll go to Seth Weber of RBC Capital Markets.

現在我們請來加拿大皇家銀行資本市場部的 Seth Weber。

I wanted to ask about the comment about the allowance for credit losses. Is there any color if you see that more tilted towards residential or maybe the small business side? And then just as a follow-up, can you give us any color on the profile of the customers that are kind of signing up for the new consumer lending program?

我想問一下關於信用損失準備金的評論。如果您看到更傾向於住宅或小型企業方面，有什麼顏色嗎？作為後續行動，您能否給我們提供有關註冊新消費貸款計劃的客戶資料的任何資訊？

Yes. So first, on the credit losses, there -- in fact, there was some accounting guidance asking all firms to go revisit their credit loss policy. So we, of course, did that. The place where we -- where the first focused and the most focused was in the commercial and SMB space. And we have exposure to a wide variety of industry verticals in our large commercial, some of which are relatively unaffected. Healthcare, as an example. And others that are more highly affected, mall-based retail as an example. So we assessed our provisions. We made some adjustments that led to an increase. And then on the higher volume side, the consumer and SMB side, we would expect -- as the economy deteriorates or has deteriorated and there's job loss, we would expect over time to incur more bad debt than we normally would in SMBs and in residential. We've considered that, of course, in our full year outlook ranges and it's too early to draw firm conclusions on how that's actually going to play out.

是的。首先，關於信用損失，事實上，有一些會計指南要求所有公司重新審視其信用損失政策。所以我們當然這麼做了。我們首先關注也是最關注的地方是商業和中小企業領域。在我們的大型商業中，我們接觸到了各種各樣的垂直行業，其中一些相對不受影響。以醫療保健為例。以及其他受影響較大的購物中心零售業為例。因此我們評估了我們的規定。我們做了一些調整，導致了成長。然後，在數量較高的方面，即消費者和中小型企業方面，我們預計，隨著經濟惡化或已經惡化以及失業，我們預計隨著時間的推移，中小型企業和住宅部門會產生比正常情況更多的壞帳。當然，在我們的全年展望範圍內，我們已經考慮到了這一點，現在就具體情況如何得出明確的結論還為時過早。

And then the second part of your question?

那麼你問題的第二部分呢？

Just if there's any kind of profile, demographic or anything you could share about the customers that are signing up for the new consumer lending program?

是否有關於註冊新消費貸款計劃的客戶的任何類型的資料、人口統計或任何您可以分享的資訊？

Yes, not so much a demographic of the customer, it's -- we offer it to all of our customers. There's nothing noteworthy that I would highlight as to what kind of customer takes it versus doesn't take it. But what I would tell you is that customers who avail themselves of the financing option, you tend to take more comprehensive systems. It's also noteworthy that luminous is a sales tool for all customers enables us or has enabled us to generate better economics even in the cases where the customer chooses to pay us upfront. So as I said a tool and arsenal of our sales force that we found effective even in cases where the customer doesn't end up taking.

是的，與其說是客戶的人口統計，不如說是——我們向所有客戶提供它。關於什麼樣的客戶接受它和不接受它，我沒有什麼值得注意的地方。但我要告訴您的是，利用融資選項的客戶往往會採用更全面的系統。另外值得注意的是，luminous 是一種面向所有客戶的銷售工具，即使在客戶選擇預先向我們付款的情況下，也使我們能夠或已經使我們能夠產生更好的經濟效益。正如我所說，我們銷售人員的工具和武器庫即使在客戶最終沒有使用的情況下也很有效。

And another comment I'll make that is relevant to what Jim was saying earlier. In terms of the first quarter being very strong, it was very strong despite the fact that we made -- what were pretty substantial changes to the way we go to market. The sales motion that every individual sales rep has to go through, the script they use, the closing process, they use changed and we had internally expected that might cause us to suffer for some lower volume during start-up. And in fact, we held our volumes very well while we were able to generate more pricing. So we're very pleased with the progress out of the gate.

我要發表的另一條評論與吉姆之前所說的相關。就第一季的強勁表現而言，儘管我們對進入市場的方式做出了相當大的改變，但它仍然非常強勁。每個銷售代表必須經歷的銷售動議、他們使用的腳本、他們使用的結束流程都發生了變化，我們內部預計這可能會導致我們在啟動期間遭遇銷售下降。事實上，我們在保持銷售的同時能夠獲得更多的定價。因此，我們對目前的進展感到非常滿意。

Now we'll take a question from Gary Bisbee of Bank of America Securities.

現在我們將回答美國銀行證券公司的 Gary Bisbee 的問題。

Let me just follow-up on that one. What do you attribute the better Q1 adds in the residential monitoring business, too? I mean there's a bunch of things going on. The consumer finance, although that was partway through the quarter. You talked about several other factors that could impact. Like what's the key -- what got better from last quarter? Is it tenders in there -- talked about their marketing capabilities? Or what are the handful of things driving that?

讓我跟進一下。您認為第一季住宅監控業務中更好的成長歸因於什麼？我的意思是有很多事情正在發生。消費金融，儘管那是本季的一半。您談到了其他幾個可能產生影響的因素。關鍵是什麼－比上季有什麼進步？那裡有招標嗎——談到了他們的行銷能力？或者是什麼因素推動了這一趨勢？

Yes, it's not -- Gary, it's Jim here. Thanks for the question. It's not any one thing, we had success across the board in the quarter. We're leveraging the talent that we talked about leveraging at Defenders. The marketing organizations have come together and are working very well. We're doing a lot more work around data and the use of data and more precisely marketing. We had a terrific quarter from a self-generated perspective, sales being self-generated. It was really a collective of hitting on all pistons in virtually all geographies that came together for us. And I'd say the special highlight would be the marketing prowess and combination of the marketing organizations between ADT and Defenders coming together to be stronger.

是的，不是──加里，是吉姆。謝謝你的提問。這不是一件事，我們在本季取得了全面的成功。我們正在利用我們在捍衛者聯盟中談到的人才。行銷組織已經團結起來並且工作得很好。我們正在圍繞數據和數據的使用，更準確地說是行銷，做更多的工作。從自我創造的角度來看，我們度過了一個非常棒的季度，銷售是自我創造的。這實際上是對幾乎所有地區的所有活塞的集體打擊，為我們聚集在一起。我想說，特別的亮點是行銷能力以及 ADT 和 Defenders 之間行銷組織的結合，從而變得更加強大。

Okay. And is there any reason to believe that other than, obviously, the impact of the COVID situation is having on consumer behavior that, that would prove to be more of a one-off? Or would you -- other than the short-term issue, would you -- is there a case to make that this momentum builds for a while?

好的。顯然，除了新冠疫情對消費者行為的影響之外，還有什麼理由相信這更像是一次性的嗎？或者，除了短期問題之外，是否有理由讓這種勢頭持續一段時間？

Yes. We think so. Absolutely. The integration with Defenders is proceeding smoothly. The teams are performing well together. We like our -- we've talked about our new product, and we like our new product. DIY is operating from a fairly small base, but we see strength in that area. We're getting good traction, differentiated product and experience. So we are bullish about it, Gary.

是的。我們認為是這樣。絕對地。與 Defenders 的整合進展順利。球隊在一起表現得很好。我們喜歡我們的——我們已經談論了我們的新產品，我們喜歡我們的新產品。 DIY 的營運基礎相當小，但我們看到了該領域的優勢。我們正在獲得良好的牽引力、差異化的產品和體驗。所以我們對此持樂觀態度，加里。

And then on the new consumer finance offering, does the fact that we're going into a recession. Obviously, consumers are going to be in worse shape overall. Does that give you any pause to how this is set up and effectively taking more risk in the way this program works? I know why operationally, it's better than the pilot you'd had with the third-party taking that risk or you comfortable you can manage that?

然後，在新的消費金融產品上，我們正​​陷入衰退。顯然，消費者的整體狀況將會更糟。這是否會讓您對如何設定程式並在該程式的運作方式上有效地承擔更多風險感到猶豫？我知道為什麼在操作上，它比您與第三方承擔風險的試點要好，或者您認為您可以管理這個風險？

Yes. We like this structure better for a whole host of reasons, much more seamless to the customer, much easier for our sales team. And we retain good control of the customer relationship. It also gives us more flexibility in downstream in the months to come with the customer for upgrades and add-ons and other things. So there's a lot of considerations, but this is a better structure for us for all those reasons.

是的。出於多種原因，我們更喜歡這種結構，對客戶來說更加無縫，對我們的銷售團隊來說更容易。我們對客戶關係保持良好的控制。它還為我們在下游的幾個月內與客戶進行升級、附加組件和其他事情提供了更大的靈活性。所以有很多考慮因素，但由於所有這些原因，這對我們來說是一個更好的結構。

Okay. And if I could just sneak one more. In a quarter ago, you sort of defend, I should say, pushed off or didn't provide a lot of commentary on the financial impact of Defenders just other than the, obviously, shift from capitalized to expense cost on the marketing front. Now that you own it, is there any more color you can give us like how many accounts came with that? Sort of what the profit was they've been earning that now accrues to your benefit? Anything else change because of that? Just looking for a little more color to justify the price paid for that asset?

好的。如果我能再偷偷一點就好了。我應該說，在一個季度前，你有點辯護，推遲或沒有對辯護者的財務影響提供很多評論，除了行銷方面從資本化成本到費用成本的轉變之外。現在你已經擁有它了，你還能給我們更多的顏色嗎，例如有多少個帳戶？ 他們賺取的利潤現在為您帶來了多少利益？因為這個還有什麼改變嗎？只是尋找更多的色彩來證明該資產的價格合理嗎？

Yes. So the acquisition of Defenders, of course, caused us to transition from buying accounts from Defenders to now we have all the Defenders' infrastructure, and the cost that shows up on the various line items in our P&L. So it caused there to be a pretty significant shift as we expected of expenses into our P&L. If you look in our slide deck at Slide 13, you can see our net subscriber acquisition spend is down. One of the drivers is that there is no more Defenders' margin in there. But what you also see is a big shift in that the non-capitalized portion of SAC has increased and the capitalized portion has decreased. But the -- having Defenders is among the contributors to our lower net subscriber acquisition cost.

是的。因此，收購 Defenders 當然導致我們從從 Defenders 購買帳戶過渡到現在我們擁有 Defenders 的所有基礎設施，以及顯示在損益表中各個行項目上的成本。因此，這導致我們的損益表費用發生了相當大的變化。如果您查看投影片 13 中的投影片，您會發現我們的淨用戶獲取支出有所下降。驅動因素之一是防守者已經沒有餘地了。但你也看到了一個巨大的轉變，SAC 的非資本化部分增加了，資本化部分減少了。但是，擁有 Defenders 是我們降低淨訂戶獲取成本的原因之一。

Another thing I would point to is we previously, with Defenders and with all of our dealers, we had a revenue-sharing arrangement where we paid to the dealer, a portion of the revenue on an ongoing basis over the life of the customer. That of course had gone away. And then that the biggest benefit over time is going to be the integration of all the various capabilities, particularly the marketing capabilities for purposes of generating new accounts and we're off, we believe, to a good start there. And then there's some cost to reduce over time as well.

我要指出的另一件事是，我們之前與 Defenders 和所有經銷商都有收入共享安排，我們在客戶的生命週期中持續向經銷商支付一部分收入。那當然已經消失了。隨著時間的推移，最大的好處將是所有各種能力的整合，特別是用於產生新帳戶的行銷能力，我們相信，我們已經有了一個良好的開端。隨著時間的推移，一些成本也需要降低。

And next, we have Jeff Kessler of Imperial Capital.

接下來是帝國首都的傑夫·凱斯勒。

Firstly, you mentioned that one of the things that you're looking at to grow the business is bulk acquisitions. Bulk acquisitions can be good, and they can be not so good, particularly if you're looking at a (technical difficulty) Well, I'm thinking of is, what are the criteria? What are you holding up? What are those shift points that you're going to make sure that number one, what is the type of group that you're trying to buy in the bulk acquisition that may be different for every state? But what is -- are there minimum criteria that you will set to essentially protect yourself against bad things happening from that -- from when people change -- when people find out that they're being bought by ADT, and they're now going to have an ADT loan for their house, and you try to keep them just get them to stay? That hasn't always happened, that hasn't always worked for other companies.

首先，您提到您正在尋求發展業務的事情之一是批量收購。大量收購可能很好，也可能不太好，特別是當你考慮（技術難度）時，我想的是，標準是什麼？你還堅持什麼？您要確保第一的轉變點是什麼？但是，你是否會設定最低標準，以從本質上保護自己免受由此發生的壞事的影響——從人們改變時開始——當人們發現他們被 ADT 收購，而他們現在正在離開時為他們的房子申請ADT 貸款，你試圖留住他們只是為了讓他們留下來？這種情況並不總是發生，對其他公司來說也不總是有效。

Jeff, it's Jim. I'll start by saying this. The North Star for us is capital efficient growth. And so we look at everything through that lens, including bulk deals. In this environment, we have an opportunity to be incredibly selective with bulk. So we're starting with high quality. We're looking for high internal rate of return on the deals. We have attrition protection built into the deal. We're looking for geographic density that helps from a -- that helps from the perspective of servicing the accounts. We're looking for high-quality customer base and looking at credit scores to ensure that, that's the case. But all of the criteria come together and need to align around the objective, which is capital efficient growth. So as I said, the environment is allowing us to be incredibly selective, perhaps replace some of the accounts and that we are currently losing in the dealer channel and efficiently deploy SAC. So is that helpful?

傑夫，是吉姆。我首先要說的是這個。我們的北極星是資本高效率成長。因此，我們從這個角度看待一切，包括大宗交易。在這種環境下，我們有機會對批量產品進行令人難以置信的選擇性。所以我們從高品質開始。我們正在尋求交易的高內部報酬率。我們在交易中加入了損耗保護。我們正在尋找有助於從服務客戶的角度來看有幫助的地理密度。我們正在尋找高品質的客戶群並查看信用評分以確保情況確實如此。但所有標準都需要結合在一起，並需要圍繞資本高效增長這一目標進行調整。正如我所說，環境使我們能夠做出令人難以置信的選擇性，也許可以替換一些我們目前在經銷商通路中失去的帳戶，並有效地部署 SAC。那麼這有幫助嗎？

Yes. I would have 15 questions here. Obviously, I'm limited to 2. I'm wondering if you can talk a little bit about the, let's say, bounce of project. The project of getting their verification technology to a point at which you have partners in this project, there are -- there's obviously -- in this type of environment, there's going to be a lot of -- there's going to be a lot of residential accounts and cities under pressure -- financial pressure who are going to want find ways of getting money out of any place they can. And there may be more pressure on those places that have more false alarms. What are you doing in that area to work with these other companies to either accelerate or move along the project to essentially verify these alarms and essentially separate yourself from the rest of the industry?

是的。我在這裡有 15 個問題。顯然，我僅限於 2 個。讓他們的驗證技術達到一個程度，在這個專案中你有合作夥伴，顯然，在這種類型的環境中，將會有很多，將會有很多住宅帳戶和城市面臨著壓力——財務壓力，他們會想辦法從任何可能的地方獲取資金。而那些誤報較多的地方可能會面臨更大的壓力。您在該領域正在做什麼，與這些其他公司合作，加速或推進該項目，以從本質上驗證這些警報，並從本質上將自己與行業其他公司區分開來？

Yes. So Jeff, this is Don. Good question. We just recently launched or piloted something we call signal chat. That allows the customers to engage us directly if you text and chat messaging, if you will, to tell us whether or not their alarms are real or false, that's a major contributor to us to try to verify the alarm. We're excited about that, and it's going extremely well. We've reduced our number of false alarms just on our sample set by up to 30% or 40%. So we're seeing some really good success there. That's all part of the journey that we've talked about before, Jeff, to go ahead and create that ADR, the additional data repository, using machine learning and AI to try to go in and leverage other data sources. Data sources that are coming from partners that we'll be announcing in the future to combine to our own -- combine with our own data sources, to basically qualify the alarms are something that either deserves a response or deserve maybe even a higher priority response. That journey continues. We think there will be more incremental deliverables in the months ahead.

是的。傑夫，這是唐。好問題。我們最近剛推出或試行了我們稱之為訊號聊天的東西。如果您願意的話，如果您願意的話，客戶可以直接與我們聯繫，告訴我們他們的警報是真是假，這是我們嘗試驗證警報的主要因素。我們對此感到很興奮，而且進展非常順利。僅樣本集上的誤報數量就減少了 30% 或 40%。所以我們在那裡看到了一些非常好的成功。 Jeff，這就是我們之前討論過的旅程的一部分，即繼續創建 ADR（附加資料儲存庫），使用機器學習和人工智慧嘗試進入並利用其他資料來源。來自合作夥伴的資料來源，我們將在未來宣布與我們自己的資料來源結合 - 與我們自己的資料來源相結合，從根本上限定警報是否值得回應，甚至值得更高優先順序的回應。這段旅程仍在繼續。我們認為未來幾個月將會有更多增量交付成果。

And it's good to hear that pilots have started. It's encouraging. And look, I'll get you guys later. I have other questions, I don't want to get into the weeds too much.

很高興聽到試點已經開始。這是令人鼓舞的。聽著，我稍後會去找你們。我還有其他問題，我不想過度糾纏。

We'll now go to our last question from Kevin McVeigh of Credit Suisse.

現在我們來回答瑞士信貸的凱文麥克維提出的最後一個問題。

Great. Jim, breaking into bores probably on the month. Any thoughts on what drove the decision to shift to Mizuho from Citizens? And are you still running the Citizens program? Or is that kind of -- is that all kind of done by the wayside in favor of what you do with Mizuho?

偉大的。吉姆，可能這個月就會陷入無聊。您對是什麼促使我們決定從西鐵城轉向瑞穗有什麼想法嗎？你們還在運行公民計畫嗎？或者說，這一切都是為了支持你對瑞穗所做的事情而臨時做的嗎？

Kevin, when we rolled out nationally, we rolled it out under an installment program that does not include the customer interacting with the third-party bank at all. So the customer interacts with us. We offer a variety of alternatives that include 24-, 36-month option, 50-month option, a variety of options. We then are partnered with Mizuho, who enables us to generate very similar economic benefits. And in fact, actually better economic benefits. But by collecting the cash in batches instead of every single individual loan. So much smoother for our customers because they don't have to administer and deal with 2 separate parties. Easier, as I said earlier, for our sales force. And that's what we rolled out with nationally and a lot less friction in the process and what we had seen previously when there are multiple parties involved.

凱文，當我們在全國範圍內推出時，我們是根據分期付款計劃推出的，根本不包括客戶與第三方銀行的互動。所以客戶與我們互動。我們提供多種替代方案，包括 24 個月、36 個月選項、50 個月選項等多種選項。然後我們與瑞穗合作，瑞穗使我們能夠產生非常相似的經濟效益。事實上，經濟效益確實更好。但透過分批收取現金而不是每筆單獨貸款。對於我們的客戶來說更加順利，因為他們不必管理和與兩個獨立的各方打交道。正如我之前所說，對於我們的銷售人員來說更容易。這就是我們在全國範圍內推出的，過程中的摩擦要少得多，也是我們之前在多方參與時所看到的。

Got it. And then I guess on the installation side, I guess, probably are you seeing any impact in terms of -- how would you think about installations on the commercial versus a very residential side, getting some of the lots that do better place and probably to continue to install? Do you consider essential? Or just any thoughts around that?

知道了。然後我想在安裝方面，我想，您可能會看到任何影響 - 您如何看待商業方面的安裝與住宅方面的安裝，獲得一些做得更好的地塊，並可能繼續安裝？您認為必要嗎？或只是對此有任何想法？

Yes. A lot more effect on commercial. So as Jim was alluding to earlier, we've seen leads where our volume was down 20% or more. But in commercial and certain verticals, that's been more pronounced. And again, some verticals are relatively unaffected. But in some verticals, for periods of time, we couldn't get in at all. So it's a more pressure on installed in commercial businesses in certain market segments within commercial than in residential overall.

是的。對商業的影響更大。正如 Jim 之前提到的，我們發現我們的銷售量下降了 20% 或更多。但在商業和某些垂直領域，這種情況更為明顯。同樣，一些垂直行業相對不受影響。但在某些垂直領域，有一段時間，我們根本無法進入。因此，在商業領域的某些細分市場中，商業企業的安裝壓力比住宅整體承受的壓力更大。

Got it. And then just my last one would be on Defenders, have you seen any impact on the core ADT organization culturally from a marketing perspective? And is that kind of fully entrenched at this point? Or are you still on the integration phase from a marketing perspective -- from an internal perspective?

知道了。我的最後一篇是關於《捍衛者》的，您是否從行銷角度看到了對核心 ADT 組織文化的影響？現在這種情況已經完全根深蒂固了嗎？或者從行銷的角度來看，從內部的角度來看，您仍然處於整合階段嗎？

I'd say, Kevin, on a marketing perspective, we were out of the gates fast. The teams culturally have come together nicely. As I mentioned earlier, the entire integration is proceeding smoothly. We're confident we're going to see the business case uptick that we had planned when we acquired Defenders. Couldn't possibly be more pleased with the high-performing talent. They're every bit as strong as we knew they would be. And I would tell you that marketing has led the way. They were the first to come together. They're working really well together. I think there's a lot of areas where there's complementary skills. And the net takeaway here is it's out of the gates fast and doing well.

我想說，凱文，從行銷的角度來看，我們很快就走出了大門。團隊在文化上很好地結合在一起。正如我之前提到的，整個整合進展順利。我們有信心看到我們收購 Defenders 時計劃的業務案例有所增加。對這些高績效人才感到非常滿意。他們的實力正如我們所知道的。我想告訴你，行銷已經引領了潮流。他們是最先走到一起的。他們合作得非常好。我認為有很多領域都存在著互補的技能。這裡最重要的一點是它發展迅速且表現良好。

And with that, I would like to turn the call back to our presenters for any additional or closing comments.

至此，我想將電話轉回給我們的主持人，以徵求任何補充或結束意見。

Thanks, Cathy. I want to thank everyone again for joining tonight's call. I'd like to conclude by underscoring 2 points. First, while many companies are essentially focused on survival or simply managing through the next quarter or 2, we're fortunate that ADT's business model and resilience in this environment allows us to instead focus on ways we can accelerate our revenue and free cash flow. Our objective is to emerge from the crisis even stronger. And sitting in early May, we're confident that, that objective will be reached. And then finally, once again, I'd like to underscore my appreciation to our employees and dealers. I'm amazed that the extraordinary things that they've collectively achieved over the course of the crisis. I couldn't be more proud of our employees and couldn't be more proud of the company. So thanks again, and we'll look forward to our next quarterly update with you.

謝謝，凱茜。我要再次感謝大家參加今晚的電話會議。最後我想強調兩點。首先，雖然許多公司本質上專注於生存或簡單地管理下一個或兩個季度，但我們很幸運，ADT 的商業模式和在這種環境下的彈性使我們能夠專注於加速收入和自由現金流的方法。我們的目標是走出危機，變得更強大。五月初，我們相信這個目標將會實現。最後，我想再次強調我對我們的員工和經銷商的感激之情。我對他們在危機過程中共同取得的非凡成就感到驚訝。我為我們的員工感到無比自豪，為公司感到無比自豪。再次感謝，我們將期待與您一起進行下一個季度的更新。

With that ladies and gentlemen, that does conclude today's call. We'd like to thank you again for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。我們再次感謝您的參與。您現在可以斷開連線。