- 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
Dividend policy
The Company does not currently have a policy of declaring or paying dividends on its common shares and intends to retain future earnings for use in its business and does not anticipate paying dividends in the foreseeable future. Any determination to pay any future dividends will remain at the discretion of the board of directors of the Company and will be made based on the financial condition and other factors deemed relevant by the board of the directors. The Company has not paid any dividends since its incorporation. The existing cash reserves, cash from operations and credit facilities are believed to be adequate to finance growth as well as operating requirements in the foreseeable future. Debt and equity components for the years 2004-2006 are summarized below.
| Long-term debt | 2006 $ |
2005 $ |
2004 $ |
| Building Loan | 970,834 | ||
| Revolving term loans | 285,228 | 945,721 | 2,216,601 |
| Total long-term debt | 1,256,062 | 945,721 | 2,216,601 |
| Equity (capital stock, paid in capital and retained earnings) |
15,521,703 | 13,678,912 | 12,782,338 |
| Ratio of Net debt to Equity | 0.08 | 0.07 | 0.17 |
Commitments and contractual obligations
The Company is committed to long-term debt repayment as above and operating leases for premises and equipment expiring at various dates up to June 30, 2011. Approximate future minimum payments are as follows:| Premises $ |
Vehicles $ |
Equipment $ |
Total $ |
|
| 2007 | 52,757 | 39,596 | 22,649 | 115,002 |
| 2008 | 35,171 | 29,912 | 22,649 | 87,732 |
| 2009 | - | - | 10,581 | 10,581 |
| 2010 | - | - | 8,853 | 8,853 |
| 2011 | - | - | 4,060 | 4,060 |
| Total | 87,928 | 69,508 | 68,792 | 226,228 |
9. OFF- BALANCE SHEET FINANCING
The Company did not have any off-balance sheet arrangements or obligations other than the operating leases disclosed above.
10. RELATED PARTY TRANSACTIONS
The Company did not have any related party transactions as defi ned in the CICA recommendations.
11. CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates are based on management’s historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments that are not readily apparent from other sources.
Management believes that the accounting policies that require estimation of the useful lives of long-lived assets, the recoverable values of the assets and measurement of impairment of the assets, are most affected by judgments and estimates used in the preparation of the financial statements. For a detailed description of these and other accounting policies, please refer to the Company’s 2006 annual financial statements.