Financial Information
Outlook and Future Growth
The level of industry fragmentation continues to be relatively high in the North American alarm industry, with the estimated combined market share of the top three companies in terms of recurring monthly revenue having decreased over the last few years approximately 40%. In addition the market penetration rate in North America is estimated to be under 20%, reflecting favourably on growth prospects for the industry as a whole. While the residential alarm industry is continuing to do well, AlarmForce has grown its subscriber account base at over twice the industry average rate. We are continuing to expand the AlarmForce brand through cost-effective direct-response marketing programs in order to differentiate our technology, and educate the consumer about the comparative advantages of the AlarmForce technology, such as the two-way voice verification capability, up-market options such as the line-cut protection, and service and quality differentiation.
We expect to continue to achieve additional organic account growth through these strategies, while developing brand recognition in the United States, which will contribute more to growth in 2006, reflecting a full year of results relative to the mid-year start in 2005. Our monthly recurring revenues, cash flows and subscriber base are expected to continue to grow in 2006. With increasing operating efficiency and economies of scale, a minimal debt load and a strong cash position, we are confident that our financial resources are sufficient to finance capital and operating requirements into the foreseeable future. Our goal is to leverage the AlarmForce infrastructure to increase economies of scale even further over the next few years.
AlarmForce is successful as a result of the strong contribution of its dedicated team. In closing I would like to thank them and all our shareholders for your continuing support as we head into 2006 and look forward to a rewarding year for all.
Respectfully submitted on behalf of the Board of Directors
Joel Matlin
President & Chief Executive Officer
It is estimated that within this $25 billion market in North America, only about 18%-20% of the entire residential market has been penetrated, thereby leaving plenty of room for growth. Independent consultants project strong growth due to innovation and technological advances, demographic changes, more dual-income households, aging of the population, and insurance company discounts for monitored homes.
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Testimonials
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Mark was very helpful, Neil the installer was knowledgeable, patient and efficient with our needs.
-Rosanne, ON -
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 -
My name is Adey and we have been AlarmForce customers for 3 years and counting. As an Army wife my husband is constantly away on course or exercise so security is a huge issue in our house. While my husband was in Afghanistan it was AlarmForce that kept our house and children safe. Whenever I start to get nervous I just remember that I'm not alone and that someone else is helping to keep watch too. Thank you AlarmForce for being there for us when my husband can't!
-Adey R. - Wainwright AB -
We've had a number of burglary issues in our community the past several months and my wife and young son were concerned about their safety when I was not home. As well, my job requires personal protection due to the nature of my business. Since having Alarm Force installed, it has brought peace of mind when at home and when away, especially on our recent vacation when I called to alert your team of my upcoming vacation and they set up the system and performed a system check at that time. Your people and service are top notch! The comfort and security it has brought my family is worth far more than the low installation and service costs!
-Terry, MN -
Thank you for your efficient service. Your live voice helped minimize damage and speedy police response - within 5 minutes! Congratulations
-A business, ON -
We have used your services for over 4 years now and we have always received excellent responses as well as superb service. We are extremely pleased with your service.
-Brian, BC -
From the first person I spoke to when I made my initial inquiry to the installer Neil - I found professionalism and courtesy. Kudos!
-Karen, ON -
Hi my name is Carl, I have been a AlarmForce customer for over five years , before that I researched all alarm companies and kept coming back to Alarm Force for the live operator and the best reasonable price, my wife kept telling me to sign up with AlarmForce, over the years we have had attempted break-ins and they had never succeeded ,AlarmForce was always on the ball, I travel out of town alot and it gives me peace of mind knowing they are keeping my wife safe, even when she is sleeping, just knowing there is a live operator at your assistance ready at a moments notice should you need them is priceless peace of mind ,when we are away travelling we do not worry anymore. I always recommend your system to all my friends and colleagues in fact just observing your great service with attempted break-ins our neighbors changed from ADT to AlarmForce by our recommendations. Whenever we have needed device in the past AlarmForce was here promptly, with a courteous employee, I would gladly call AlarmForce for all my security needs.
-Carl T. - Okotoks, AB
