Financial Information
SUMMARY OF QUARTERLY RESULTSThe 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 RESOURCESAs 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.
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Testimonials
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When I purchased my home a few years back another security system from a different company was already installed; so I just took over the bill and paid it without another thought. When minor vandalism and petty theft began to rise around my neighborhood I wanted to extend my personal security to outside the home I called my (at that time) current security company and inquired about a camera that could be installed for added peace of mind. When I finally got an operator she informed me that they could not provide such a service at an affordable cost. A few days later I was watching t.v. and saw the ad for Alarmforce and called immediately. I spoke with a lovely woman by the name of Marilyn she made me fell like I had called a friend who was truly concerned about the added stress I had been feeling from my security company and the recent increase in criminal activity in my neighborhood. She informed me that what I saw on the television was correct and that not only I could receive a security camera installed for a very reasonable price but also instant two way voice communication security system for only $10 more a month than what I was currently paying. I was elated, my current company didn't have such a thing if you tripped the alarm by accident you would sometimes have to wait almost 10 min for a call back. When I told Marilyn this she quickly got a technician out to my home. When the technician arrived he was very kind and courteous; He answered any questions I had. Set up took no time at all and using the pin pad is a lot easier. Even my non- tech savvy Grandparents can understand it; unlike the old system. Since I have had Alarmforce system and camera incidents in my neighborhood have gone down and I have never felt safer.
-Melissa - Brantford, ON -
The best thing since sliced bread! Your service is fantastic and if I could afford it I would have the new video alarm. However, what I do have always provides peace of mind. Thank you kindly.
-Pearl, AB -
Fortunately I have not had to use the services for any theft or break-in at this time. When i do call for service or for information the staff is always friendly and helpful. I am very happy that i chose Alarm Force.
-Dean - Musquash, NB -
AlarmForce has been with us in two different homes. They are reliable and efficiently. They have an awesome price point and are very competitive in their pricing. Great customer service as well. Thank you for keeping us safe.
-Monica - White Rock, BC -
It was five days before Christmas in 2009, when I was finally getting off of work, to come home and enjoy my holidays. I had been in Northern Alberta and British Columbia working for awhile and not getting the chance to come home very often. My landlord of the house, my spouse and I were renting, lived across the street and was able to watch our house while we were both out of town. It was 9:00pm the night before I flew home, when my landlord called to say our house had gotten broken into. I was very frustrated, upset and angry mainly because I come from a small town in Saskatchewan and not a lot of crime goes on. I did not know what to expect when I got home to see if all of our belongings were missing and the house destroyed. I remember coming home from the airport, very scared, not wanting to even stay at my house over night. When I got home, there was this feeling of someone there, but really there wasn't. Everything seemed to still be intact, and not missing, but I did not feel safe staying there by myself that night. I decided to stay with family. The next day, I called Alarm Force to have a system set up in our house. I was leaving for Saskatchewan within 72 hours, and no one from alarm force could come. This was very understandable since it was short timing. I explained to AlarmForce over the phone what had happened, how I did not feel safe, and I wanted to purchase a system. AlarmForce was very helpful. Their best intention was to get a system for me installed as soon as possible so I would feel safe in my own home. AlarmForce was very helpful and they worked with my landlord and me in installing a system in my house, even knowing me and my spouse were gone from Christmas. After Christmas I came home to find a wonderful, easy, accessible alarm to use that was very understanding to learn. The best part was how much room the alarm took up, which was not much! The amount of money I have to pay for having the alarm is well worth than having my belongings maybe gone one day, or myself in danger. I like how the payment system is set up on a monthly payment, and I can transfer my system to friends or family if need be. We still live in the house so it is definitely paying off. I also love that if we were to move, we can move our system to different locations. I am more home now, than I used to be but my spouse is still out of town lots. I sometimes get very nervous staying by myself which affects sometimes the way I sleep. Being paranoid about staying in a house by yourself is not a very good feeling. It bothers me a lot that for whoever broke in knows where I live and what belongings are in the house. Will they return? But when I put my alarm system on while I am in the house, and at night going to sleep- the system makes me feel very stress and paranoid free. I know if something was to happen and someone had gotten into my house- help would be around the corner. One time, my family was up visiting with our family dog, and we were going out for supper. I was not used to having a pet around, and I set the alarm not even thinking the dog was in the house. I had received a call from Alarm Force on our way to the restaurant but I missed the call. Next thing I knew, my landlord was calling me to state that he had received a call from AlarmForce. He knew most likely I set the alarm and the dog had been in the house. I was very shocked in how the phone call was sent out asking if everything was okay. This was the first time in over a year, AlarmForce had to call, and it was amazing how comforting the time was and how it did not take long for someone to contact me. This made me feel even better about the purchase we made of installing Alarm Force in our house. I would recommend Alarm Force to anyone who is insisting to have a system put into their house. I have told many people about my story of how Alarm Force was there for me, even if I was not able to be there. I explain to others how comforting it is to have someone “with” you even knowing no body physically is there. It is an affordable way to keep one or one's family safe.
-Sara G. - Edmonton, AB -
First, I spoke to a representative regarding phone line connection and cell phone only systems. After answering all my questions, I scheduled appointment to have installation done. The installer arrived on time, was professional and courteous. All was done in time given and the operation of it was explained with any questions answered. I would recommend to anyone - plus monitoring is extremely reasonable.
-Richard - Kannapolis, NC -
From the moment I emailed Alarm Force and received my first contact from a representative, all of my expectations have been exceeded. The installation was on time, and was professionally completed in a timely manner. It's great to have the piece of mind knowing my loved ones and my home is always protected. I would recommend Alarm Force to anyone.
-Leah - Calgary AB -
Alarmforce is a very reliable company when it comes to home security system. Although we never had any break ins or emergencies in the house yet, we know that their system work because there were few times we walk in the house and forget to disarmed the alarm and right away we get the call from them asking for our password to make sure that it was us who walked in the house and we really didn't mind it as a matter of fact we appreciate it because we know that they are there to protect us and our house from any intruders and another thing we really like is when we need some assistance with regards to our unit, the toll free number agents are so helpful in assisting us to fix any problems that we encountered and because we like AlarmForce we highly recommended it to my parents and my uncle, that's why we all have the same alarm system in our houses. For a very reasonable monthly rate that we pay, we always have the peace of mind that our house and belongings are always safe whenever we are away from home. Thank you very much Alarmforce and more power to the company.
-Rafal - Edmonton, AB






