ADT Inc ADT shares are surging today after the company announced the exit of its residential solar business and disclosed shareholders’ appreciation initiative.
The company stated that its Solar segment generated an Adjusted EBITDA loss of $(89) million in the nine months of FY23 due to operational and macroeconomic challenges.
Consequently, the company’s Board of Directors approved the solar business divestiture, which may include transferring business components to other parties.
The company expects to incur certain one-time exit charges and cash expenditures from the same and is still analyzing the estimated net amount to be incurred.
Dividend Boost: ADT’s Board of Directors raised its quarterly dividend per share by 57% to $0.055, payable on April 4, 2024, to shareholders of record as of March 14, 2024.
Share Buyback Authorization: The company also authorized a $350 million share repurchase program.
As per its plan, in December, the company repaid $500 million of First Lien Senior Secured Notes due 2024, thereby reducing total debt by around $2 billion.
Last month, the company announced the departure of Ken Porpora from the position of Executive Vice President and Chief Financial Officer (CFO) and appointed Jeff Likosar as the interim CFO.
ADT will release fourth quarter and full year results on February 28, 2024.
Price Action: ADT shares are up 11.08% at $6.86 on the last check Thursday.
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