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.
