Financial Information
Operating results by business segments
The Company operated primarily in only one reporting segment in Canada, which is the monitoring of residential security systems. The Company’s US subscribers do not represent a significant geographic segment at the present time.
6 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, 2006, prepared in accordance with Canadian GAAP and expressed in Canadian currency:
| October 2006 | July 2006 | April 2006* | January 2006 |
October 2005 |
July 2005 |
April 2005 |
January 2005 |
|
| $ | $ | $ | $ | $ | $ | $ | $ | |
| OPERA TIONS: |
||||||||
| Total revenue |
5,544,640 | 5,315,435 | 5,055,508 | 5,049,295 | 4,702,397 | 4,267,382 | 4,258,894 | 3,998,821 |
| Income before taxes |
838,200 | 358,232 | 854,731 | 458,533 | 316,472 | 224,129 | 436,130 | 313,833 |
| Net income | 440,839 | 224,232 | 546,126 | 281,138 | 196,385 | 104,041 | 316,042 | 193,745 |
| Basic earnings per share |
0.04 | 0.02 | 0.05 | 0.02 | 0.02 | 0.01 | 0.02 | 0.02 |
| 0.04 | 0.02 | 0.05 | 0.02 | 0.02 | 0.01 | 0.02 | 0.02 | |
| FINANCIAL POSITION: | ||||||||
| Total assets | 23,880,550 | 22,376,117 | 22,144,185 | 20,064,909 | 20,389,283 | 20,333,087 | 20,537,928 | 20,136,038 |
| Share holders’ equity |
15,521,703 | 15,080,864 | 14,856,631 | 14,063,920 | 13,678,912 | 13,435,778 | 13,323,237 | 13,003,113 |
7.DISCUSSION OF FOURTH QUARTER 2006
In the fourth quarter, total revenues amounted to approximately $5.5 Million up by 18% from the 2005 corresponding quarter. Gross profit as a percentage of total revenue increased to 88% from 79%. This increase in gross margin reflects the increased revenues due to the increase in customer base.
Income before taxes in the fourth quarter amounted to approximately $838,000. This increase again reflects the consistent growth in the subscriber account base.
8. LIQUIDITY AND CAPITAL RESOURCES
As at October 31, 2006 the Company has cash and cash equivalents of $3,909,309, and unused credit facilities of approximately $5,800,000 available for future operating and capital requirements.
As at October 31, 2006, the Company’s assets totalled $23,880,550 of which the majority represented revenue generating capital assets including tangible and intangible assets. The outstanding debt at October 31, 2006 consisted of a $970,834 fixed rate term loan for purchase of the property acquired in March 2006, and revolving bank loans of $285,228 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.
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Testimonials
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I was sceptical at first but I am relieved to have this system in my home. I feel safe when I'm away that you're on the job. I feel safe when at home alone and any boo boo I make you're right there. No matter how stupid I've been the person that comes through the box is my life line and is always professional. I highly recommend this to everyone I talk to.
-Denise, AB -
Excellent customer service and very knowledgeable service staff.
-Kelley, BC -
Thanks to AlarmForce, I feel safer in my home. My children and I live in a not so nice area of Edmonton and have had 1 attempted break-in so with alarm force I know that the alarm system helps to protect my family. On 2 occasions the alarm has been activated by mistake and AlarmForce always made sure everyone was ok and even sent security to our house to check on us. Thanks AlarmForce.
-Teresa B. - Edmonton, AB -
One morning I left home earlier than planned and forgot to turn the alarm off the home setting. When I returned I saw that a representative of AlarmForce had visited our home to ensure there had been no break in, by leaving a notice in our mail box.
-Cheryl H. - Edmonton, AB -
My job requires me to travel quite a bit usually out of the country, and having Alarm Force allows my family to feel safe and gives me peace of mind knowing that they are safe even when I am away. But the best thing about Alarm Force is the fantastic customer service they provide. Setting up the system was quick and easy and they answered all our questions and concerns. They are a great company to have protecting our home and I am glad I switched.
-M.H - Gahanna, OH -
The alarm allows me to sleep at night without worrying too much. I had a house that had several break-ins, hopefully the AlarmForce tags on my doors and windows will discourage thieves.
-Sandra, BC -
I have recommended AlarmForce to all my friends - very happy with it.
-Nancy, BC -
I am very pleased with the alarm system. Thieves broke in through a smashed in back door. The two way voice must have scared them off because they only took one thing and left a laptop sitting right on a table. Thanks to the system my valuables were saved.
-John, GA
