Financial Information
The cash flows from operations and financing activities, and cash flows used in financing and investing activities for the years 2002-2006 are summarized below.
| 2006 | 2005 | 2004 | 2003 | 2002 | |
| $ | $ | $ | $ | $ | |
| Cash flow from operations | 4,945,233 | 3,518,787 | 4,238,574 | 2,665,485 | 1,446,164 |
| Cash flow from (used in) financing activities | (339,202) | (1,184,520) | 3,802,947 | 296,869 | 323,058 |
| Cash flow used in investing activities | (4,783,796) | (2,616,996) | (7,693,607) | (2,984,470) | (1,877,326) |
The cash flow used in investing activities shows a significant increase primarily due to the Company acquiring property consisting of land and building in March 2006 in the approximate amount of $2.1 million to facilitate growth and expansion.
The Company expects to continue investing significantly in growth of the subscriber base, through 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 systems are 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.
Financing activities
The Company is authorized to issue an unlimited number of common shares. The changes in the issued common shares of the Company during 2006 and 2005 were as follows:
| Number of Shares | Value $ |
|
| Balance, October 31, 2004 | 11,574,888 | 11,708,770 |
| Issued during the year: | ||
| For cash pursuant to option plan | 101,600 | 86,360 |
| Balance, October 31, 2005 | 11,676,488 | 11,795,130 |
| Issued during the year: | ||
| For cash pursuant to option plan | 412,300 | 350,455 |
| Balance, October 31, 2006 and January 11, 2007 | 12,088,788 | 12,145,585 |
The Company is committed to issuing 200,000 common shares under options that were outstanding at the end of the 2006 fiscal year (612,300 at the end of the 2005 fiscal year). Exercise prices under the options and the remaining life of options are summarized below.
| Expiry Date | Number as October 31, 2006 |
Remaining contractual life (Years) | Exercise Price |
| July 17, 2009 | 200,000 | 2.75 | $3.78 |
Ask a Question
Testimonials
-
"I am writing this as a relatively new customer to AlarmForce. Previously we had a "big name" company for our alarm service. When that company's equipment failed to meet our needs on a couple of different levels, including raising the monitoring prices yearly, we decided it was time for a change. I had heard the commercials on the radio for AlarmForce and decided to give them a try. The technician that came out to install was great! I was not home but my wife could say enough about the technician. Everything was installed to our satisfaction and works great! Hopefully we won't have to ever use the system in an "emergency" sense, but it's nice to know that it is there. Thanks for a great service at a great price!"
-John, Maplewood MN -
I am pleased with the system and components and overall would rate AlarmForce as excellent.
-Brian, ON -
We really appreciated how they added us urgently to their schedule for installation because of our distress. Great team.
-Francois, AB -
The sales man was very nice and explained to me in all details.
-Bessie, OH -
Absolutely outstanding service and peace of mind.
-Marc, OH -
First time in my life I feel safer!
-Joe, NC -
Thank you for not increasing your costs to us.
-Ronald, AB -
I just wanted to write and let you know that I have an AlarmForce system in my home and yesterday someone broke in! I'm so pleased to say that the Alarm System worked....yeah!! I received a phone call right away and immediately knew that it wasn't a false alarm. I have a door with a glass window at the back - they smashed the window then walked through it ...... It was the sensor in the hallway that caught them! Nothing was taken from my home as the alarm system scared them away, as a matter of fact the police had to do a walk though before I could go in and they commented on how the alarm system scared them at first. I am so relieved to know that my home is safe and secure when I'm away.
-Maria, AB
