Financial Information
AlarmForce Industries Inc. 2004 Annual Report
AlarmForce Industries Inc. is Canada’s leading installer of Business Security Alarm. Innovative products and a strong commitment to customer satisfaction form the foundation for the company’s strong annual growth since it’s inception in 1988. Today our mission remains to provide technologically advanced, affordable residential alarm systems & home security systems to the residential marketplace while strengthening our operations, expanding our reach and providing value to shareholders.
Contents
- Financial Highlights
- Letter from the President
- The Competitive Edge
- Financial Information
- Management’s Report
- Auditors Report
- Balance Sheet
- Statements of Retained Earnings
- Statements of Income
- Statements of Cash Flows
- Notes to Financial Statements
- Management Discussion & Analysis
- Corporate Information
| Restated* | Restated* | ||
| October 31 | 2004 | 2003 | 2002 |
| $ | $ | $ | |
| Subscriber base | 48,700 | 40,800 | 34,000 |
| Annual increase (%) | 19% | 20% | 17% |
| Operations: | |||
| Total revenue | 14,450,129 | 11,986,089 | 9,899,341 |
| Gross margins | 11,186,236 | 8,814,604 | 7,120,792 |
| EBITDA** | 6,595,255 | 5,203,087 | 3,849,754 |
| Income before income taxes | 2,517,754 | 1,940,371 | 1,197,381 |
| Net income | 1,275,986 | 1,301,509 | 787,381 |
| Cash flow from operations | 7,906,761 | 5,251,930 | 4,320,259 |
| Earnings per share | 0.12 | 0.14 | 0.11 |
| Diluted earnings per share | 0.11 | 0.13 | 0.11 |
| EBITDA per share** | 0.57 | 0.57 | 0.43 |
| Diluted EBITDA per share | 0.60 | 0.54 | 0.45 |
| Operating cash flow per share | 0.68 | 0.57 | 0.49 |
| Shares outstanding | 11,574,888 | 9,139,303 | 8,895,403 |
| Financial position: | |||
| Total assets | 24,896,782 | 17,007,331 | 14,563,480 |
| Shareholders’ equity | 16,439,057 | 9,061,190 | 7,489,698 |
| Debt/equity ratio | 0.135 | 0.445 | 0.480 |
| Debt/total assets ratio | 0.09 | 0.24 | 0.27 |
* Restated to reflect adoption of new accounting policy
** EBITDA (Earnings before interest, income taxes, depreciation and amortization) EBITDA is a key performance measure in the security industry and should not be interpreted as GAAP earnings.
Financial Highlights
- AlarmForce achieved the highest growth in the Company’s seventeen year history, up by 16.4% from the record achieved last year.
- Subscriber account base continued to expand organically with total new installations of 13,400 subscriber accounts, bringing total monitored accounts to over 57,000.
- Net income increased to $810,214 from $303,600 which is an increase of 167%.
- Revenue increased to $17,227,000 from $14,393,000 representing an increase of 20%.
- Cash flows from operating activities excluding working capital increased to $3,206,000 from $2,610,000 which is an increase of 23%.
- The company’s debt to equity ratio decreased significantly, going from 0.14 to 0.07.
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Testimonials
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We are very much satisfied with your service and we will definitely recommend to our friends and neighbors. Thank you for protecting us.
-P. M -
Customer called in to say how AlarmForce saved him. He was at church when the alarm was activated, AF dispatched the police and they were on the scene within minutes. They apprehended the culprit and the client's collection of musical instruments was safe.
-Kevin, GA -
Pricing is very reasonable. Staff is professional and helpful. Very impressed always.
-Rob, ON -
By, the way the alarm system is great - I feel much safer now especially when my husband is on the graveyard shift. The fellow that installed it for us too was very professional and helpful.
-Debbie, BC -
I just changed my batteries for the first time and I had to call the customer care department to make sure everything was ok and they were very helpful.
-Paula, BC -
AlarmForce is the best choice. They make sure you get the best system that not only works with your budget..and does NOT try to sell you anything you will not need or is no use for your home/garage...I have been fortunate enough not to have any one try to break into my home since I got the system..couldn't say that before...they make me feel more secure because they are very caring and no matter where I am in my travels I know I can count on them to protect my sons and my home..I always worried about my sons and my house when I was away..Not now.. Knowing that even when my sons sleep they are as I say "being watched over by the Angels at AlarmForce" My experience with AlarmForce has always been pleasant and reassuring..They answer all and every question I have..They are always willing to help with testing my equipment.. Letting me know what needs to be replaced if anything(batteries etc)..When I go away they ALWAYS ask details of my departure and arrival back home..who to contact if there is an emergency..t hey never question me why I want the police called and not one of their own security...Full of information and always so caring! My best experience was when I was so unhappy with my other alarm company the staff at AlarmForce made it so easy for me to say YES to using AlarmForce and leaving the 'other" company… that was over 3 years ago!! Thank You for making it so easy! It is a Perfect Fit in Security for My Family! I am always recommending folks to AlarmForce..I simply tell them there is no price you can put on your families safety...with AlarmForce it is cost efficient..You wouldn't get the care their team provides any where else..most of all The Peace of Mind You have knowing not only your house but your family is being taken care of at all times!! They make life simple for you and your family.. Thank You AlarmForce for treating my Family like it is your own, you are keeping safe at all times!
-Kelli P - Edmonton, AB -
On the occasions we have had to talk to Central Station, your representatives have always been very patient and courteous.
-Donna, AB -
Still the best value in the industry!
-Dave, ON
