- We protect over 150,000 people across North America
- Over 20 years experience in the industry
- One of the few alarm companies to manufacture our own technology
- You deal directly with AlarmForce at all times
- Lowest prices and best value in the business
Financial Information
OPERATING RESULTS BY BUSINESS SEGMENTS
The company operated primarily in only one reporting segment in Canada, which is the monitoring of residential security systems.
RELATED PARTY TRANSACTIONS
The company did not have any related party transactions as defined in the CICA recommendations.
SUMMARY OF QUARTERLY RESULTS
The following table sets out selected financial information for the company for the eight most recently completed quarters up to October 31, 2004, prepared in accordance with Canadian GAAP and expressed in Canadian currency:
| October
2004 |
July 2004 |
April 2004 |
January 2004 |
October 2003 |
July 2003 |
April 2003 |
January 2003 |
|
| $ | $ | $ | $ | $ | $ | $ | $ | |
| OPERATIONS: | ||||||||
| Total revenue | 3,818,535 | 3,692,787 | 3,521,384 | 3,417,423 | 3,094,526 | 3,075,518 | 2,968,996 | 2,968,996 |
| Income before taxes | 511,845 | 492,310 | 914,578 | 599,021 | 584,176 | 337,979 | 556,656 | 461,560 |
| Net income | 131,617 | 210,186 | 587,474 | 346,709 | 493,892 | 155,969 | 373,372 | 278,276 |
| Basic earnings per share | 0.011 | 0.020 | 0.056 | 0.034 | 0.047 | 0.017 | 0.041 | 0.039 |
| Diluted earnings per share | 0.010 | 0.019 | 0.054 | 0.033 | 0.042 | 0.016 | 0.039 | 0.037 |
| FINANCIAL POSITION: | ||||||||
| Total assets | 24,896,782 | 24,097,717 | 20,037,491 | 19,571,252 | 17,007,331 | 16,375,643 | 15,719,197 | 15,132,024 |
| Shareholders’ equity | 16,439,057 | 15,912,281 | 12,361,692 | 11,689,556 | 9,061,191 | 8,474,797 | 8,289,581 | 7,789,219 |
DISCUSSION OF FOURTH QUARTER
2004In the fourth quarter, total revenues rose by $3.8 Million to $14.5 Million up by 36% and gross profit as a percentage of total revenue also increased by $3.2 Million or to 77 % from 75%. The increase in gross margin is primarily due to the increasing volume of net subscribers resulting in greater economies and efficiencies.
General and administrative expenses also increased by $1.2 Million or 57% in the fourth quarter. They were affected by the share-based compensation expense arising out of share options granted under the new accounting policy adopted in 2004. Certain start-up costs in the amount of $79,000 relating to the US operation were also incurred in the fourth quarter
.This resulted in a decrease in income of $184,000 compared to previous quarters in which no such expense was recognized. The net income (after income taxes) in the fourth quarter was affected by the adjustment to reflect the actual cumulative income tax provision applicable for the 2004 fiscal year.