- 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. The Company’s US subscribers do not represent a significant geographic segment at the present time.
6 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, 2006, prepared in accordance with Canadian GAAP and expressed in Canadian currency:
| October 2006 |
July 2006 |
April 2006 |
January 2006 |
October 2005 |
July 2005 |
April 2005 |
January 2005 |
|
| $ | $ | $ | $ | $ | $ | $ | $ | |
| OPERATIONS: | ||||||||
| Total revenue | 5,544,640 | 5,315,435 | 5,055,508 | 5,049,295 | 4,702,397 | 4,267,382 | 4,258,894 | 3,998,821 |
| Income before taxes | 838,200 | 358,232 | 854,731 | 458,533 | 316,472 | 224,129 | 436,130 | 313,833 |
| Net income | 440,839 | 224,232 | 546,126 | 281,138 | 196,385 | 104,041 | 316,042 | 193,745 |
| Basic earnings per share | 0.04 | 0.02 | 0.05 | 0.02 | 0.02 | 0.01 | 0.02 | 0.02 |
| 0.04 | 0.02 | 0.05 | 0.02 | 0.02 | 0.01 | 0.02 | 0.02 | |
| FINANCIAL POSITION: | ||||||||
| Total assets | 23,880,550 | 22,376,117 | 22,144,185 | 20,064,909 | 20,389,283 | 20,333,087 | 20,537,928 | 20,136,038 |
| Shareholders’ equity | 15,521,703 | 15,080,864 | 14,856,631 | 14,063,920 | 13,678,912 | 13,435,778 | 13,323,237 | 13,003,113 |
7.DISCUSSION OF FOURTH QUARTER 2006
In the fourth quarter, total revenues amounted to approximately $5.5 Million up by 18% from the 2005 corresponding quarter. Gross profit as a percentage of total revenue increased to 88% from 79%. This increase in gross margin reflects the increased revenues due to the increase in customer base.
Income before taxes in the fourth quarter amounted to approximately $838,000. This increase again reflects the consistent growth in the subscriber account base.
8. LIQUIDITY AND CAPITAL RESOURCES
As at October 31, 2006 the Company has cash and cash equivalents of $3,909,309, and unused credit facilities of approximately $5,800,000 available for future operating and capital requirements.
As at October 31, 2006, the Company’s assets totalled $23,880,550 of which the majority represented revenue generating capital assets including tangible and intangible assets. The outstanding debt at October 31, 2006 consisted of a $970,834 fixed rate term loan for purchase of the property acquired in March 2006, and revolving bank loans of $285,228 under credit facilities that are available to be used by the Company to finance the growth in the subscriber base, which in turn will contribute to additional recurring revenues and cash flows.