- Cash flow from operations up by 51% over the previous year
- EBITDA to Revenue ratio up from 43% to 46%, the highest ever achieved
- 12,000 new subscribers added, bringing the total accounts to 48,700 at the end of the year
- Two successful share issuances raising over $5 million in new equity
- Continuous Quality Improvement in our product features and options
- 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
Letter From the President
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To Our Shareholders:
We are pleased to report to you AlarmForce’s home security system company annual results for the year 2004.
A record subscriber account base, record operating efficiency and gross margins, and two share issuances via private placement made 2004 an unqualified success for the company.
Our accomplishments in 2004 consisted of:
On the operating front, our subscriber base growth continues to surge ahead, resulting in a record increase for the year and meeting our expectations. Importantly, through the organic model of account creation, we increased the size of the monitored accounts by 19%. This was accomplished without compromising quality for growth.
Total revenues in 2004 rose to $14,450,129, representing a 21% increase from the preceding year figure, as restated for the change in accounting explained below. The increase in subscriber accounts, recurring monthly revenues and cash flows were in line with our expectations and targets.
Change In Accounting Policy
New accounting pronouncements emerging in the past year have been reflected in the financial statement figures presented for 2004. Specifically, commencing in 2004 the company retroactively adopted a new accounting policy regarding recognition of certain add-on sales of home security system equipment installed in AlarmForce monitored premises. As a result, the timing of when the sale is recognized in reported revenue has changed from recognition when received at the completion of the sale, to recognition of revenue uniformly over four years. As these sales continue to be recognized in taxable income at the completion of the sale, this gives rise to timing differences in taxation resulting in the recognition of future tax assets related to the differences. The 2003 comparative figures have been restated to give retroactive effect to the change as recommended under the new accounting pronouncements.
Notably, cash flow figures and the subscriber base have not been impacted by the change.