- 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
ALARMFORCE ANNOUNCES RECORD Q2 RESULTS
TORONTO-Ontario- June 14, 2006- Joel Matlin, President
and CEO is pleased to announce second quarter results
for AlarmForce Industries Inc. for the six months ended
April 30, 2006:
FINANCIAL HIGHLIGHTS
|
April 30, 2006 |
April 30, 2005 |
Change |
|||||
Revenue: |
$10,105,000 |
$8,258,000 |
+ 22% |
|||||
Cash flow from operating activities |
$1,520,000 |
$1,283,000 |
+ 18% |
|||||
Income before taxes |
$1,313,000 |
$750,000 |
+ 75% |
|||||
Net income |
$827,000 |
$510,000 |
+ 62% |
|||||
EBITDA* |
$2,408,000 |
$2,059,000 |
+ 17% |
|||||
Diluted net income/share |
$0.07 |
$0.04 |
+ 75% |
|||||
Subscriber base |
61,700 |
52,700 |
+ 17% |
|||||
(* EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and Amortization) is a key measure in the security
industry and should not be interpreted as GAAP)
Mr. Matlin said: “At the end of the second quarter
our subscriber account base increased to 61,700 subscribers.
At that account size, our company is one of the top
alarm companies in North America and furthermore, we
have achieved extraordinary growth in the subscriber
base with virtually no net debt outstanding. Our model
generates new subscriber installations organically and
as a result we have been able to add accounts unencumbered
by borrowing.”
“Our recurring monitoring revenues continued to
increase to a record-setting level from the comparative
six-month period of the previous year. Total Revenue
for the six months increased to over $10 million, up
22% from the first six months of 2005. Income before
taxes increased to $1.3 million, up 75%, while net income
increased to $827,000, up 62%. As expected, the growth
in subscribers has continued to increase profitability
as operating efficiency increases from economies of
scale and cost management. Total Revenue consists primarily
of recurring monthly revenue from subscribers.”
“EBITDA increased to $ 2,408,000, up by 17% and
Cash flows from total operating activities increased
to $1,520,000, up by 18% for the six month period. On
a quarterly basis, the company’sperformance continues
to demonstrate consistent increases with Total Revenue
for the six months ended April 30, 2006 of $5,055,000,
up 19% from the same quarter a year ago, and cash flows
from operating activities of $1,450,000, up by 45%.
Diluted net income per share for the quarter was $0.05,
up from $0.02 a year ago, resulting in six month diluted
net income per share of $0.07, up from $0.04.”
Mr. Matlin added: “SDM Magazine published its
annual ranking of the top security companies in North
America last month which is one of the barometers that
we can use to compare our performance against other
companies in the same industry. The alarm industry continues
to be very fragmented with thousands of independent
companies across North America. We are happy to observe
that, had Canadian companies been included, AlarmForce
would have been high up in the rankings. Our subscriber
base would rank in the top ten companies by residential
accounts, and our new subscribers would rank in the
top five by residential installation volume.”
“In our industry, account values are normally
based on multiples of monthly recurring revenues, with
a premium for larger account bases. As a result, the
value per subscriber account of the few larger companies
in the industry, including AlarmForce, is relatively
higher. In addition to the size of the account base,
there are certain key drivers that incrementally add
to our subscriber account value, namely AlarmForce’s
brand recognition, record-setting growth and operating
margins, and client loyalty, all of which have differentiated
the company consistently from year to year.”
AlarmForce Industries Inc. is Canada’s largest
manufacturer and installer of two-way voice home alarm
systems and line-cut protection with offices serving
all major markets in Canada and strategically selected
markets in the United States.
For further information, contact:
Investors Relations Dept.
Tel: 416-445-2001 ext#225
Fax: 416-445-9381
E-mail: investor@alarmforce.com