Financial Information

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, 2005, prepared in accordance with Canadian GAAP and expressed in Canadian currency:

October
2005
July
2005
April
2005
January
2005
October
2004
July
2004
April
2004
January
2004
  $ $ $ $ $ $ $ $
OPERA-
TIONS:
               
Total
revenue
4,702,397 4,267,382 4,258,894 3,998,821 3,818,535 3,692,787 3,521,384 3,417,422
Income before
taxes
316,473 224,129 436,130 313,833 83,465 63,930 486,199 170,640
Net
income
196,385 104,041 316,042 193,745 (111,490) (32,920) 344,370 103,306
Basic earnings
per share
0.02 0.01 0.03 0.02 (0.01) ( 0.00) 0.03 0.01
Diluted earnings
per share
0.02 0.01 0.03 0.02 (0.01) ( 0.00) 0.03 0.01
FINANCIAL
POSITION:
               
Total
assets
20,389,283 20,333,087 20,537,928 20,136,038 20,716,830 20,174,762 16,790,132 16,624,052
Share-
holders’
equity
13,678,912 13,435,778 13,323,237 13,003,113 12,782,338 11,544,503 8,596,599 8,053,034

DISCUSSION OF FOURTH QUARTER 2005

In the fourth quarter, total revenues amounted to approximately $ 4.7 Million up by 12% from the 2004 corresponding quarter. Gross profit as a percentage of total revenue increased to 79 % from 76%. The increases in revenue and gross margin are consistent and primarily due to the increasing volume of net subscribers resulting in greater economies of scale.

Net Income in the fourth quarter amounted to approximately $196,000. This increase also reflects the consistent growth in the subscriber account base.

LIQUIDITY AND CAPITAL RESOURCES

As at October 31, 2005 the company has cash and cash equivalents of $4,087,074, and unused credit facilities of approximately $3,000,000 available for future operating and capital requirements.

As at October 31, 2005, the company’s assets totalled $20,389,283 of which the majority represented revenue generating capital assets including tangible and intangible assets. The outstanding debt at October 31, 2005 consisted of revolving bank loans of $945,721 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.

The cash flows from operations and financing activities, and cash flows used in financing and investing activities for the years 2001-2005 are summarized below.

  2005 2004 2003 2002 2001
Cash flow from (used in) financing activities (1,184,520) 3,802,947 296,869 323,058 815,136
Cash flow used in investing activities          

The company expects to continue to invest significantly in growth of the subscriber base, through direct-response marketing programs, which have been highly effective in Canada historically, and in the installation of new security systems in subscriber homes. Security systems are installed under three-year contracts, which are subsequently renewable annually. The company manufactures the equipment that it installs and the manufacturing process involves purchasing various key components from foreign and domestic manufacturers, and utilizing local subcontractors in certain parts of the manufacturing process. The Company’s manufacturing operations are housed in Toronto where the alarm system is manufactured. In addition to the standard system, the company also manufactures AlarmPlus telephone line-cut technology that is available exclusively to subscribers of AlarmForce, which is the only Canadian alarm company that manufactures and installs AlarmPlus.



Ask a Question

First Name *
Last Name *
Email *
Phone *
Reach Me
State/Province *
Message
Characters Left
  Submit

Testimonials

  • Impressed with response time of Central Station..all the noise and sirens scare me and I'm the homeowner!
    -Patricia, ON
  • Mark was very helpful, Neil the installer was knowledgeable, patient and efficient with our needs.
    -Rosanne, ON
  • I am a realtor in Columbus, Ohio and have had several listing where the residence was vacant throughout the time it was listed for sale. One of the residences suffered extensive vandalism which included having all of the copper plumbing ripped put of the home. After repairs and renovations were completed, new appliances were purchased and delivered. Several friends warned me of the high probability that the appliances could be stolen. I contacted AlarmForce and learned that their system was not only portable but did not require a landline telephone to operate. I ordered the system and have had no attempts by vandals to break into the home. When the property is sold, I will move the system to the next vacant home that I list for sale. I may actually purchase another system. I recommend all realtors to consider using your system. Thanks, AlarmForce.
    -J.S - Columbus, OH
  • We had two break-ins in 6 years and both times your response was excellent.
    -Aleksandr, BC
  • Even if I ever relocate I will remain with AlarmForce.
    -Jurgen, ON
  • We are in all ways satisfied with the service and deportment of the representatives.
    -Gordon, BC
  • Installation was excellent and very knowledgeable about questions and options.
    -William, OH
  • Installer was very. very helpful.  Made sure I knew how to operate system.  Questions answered.
    -William, OH
View Testimonials
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23