Financial Information
8. LIQUIDITY AND CAPITAL RESOURCES
As at October 31, 2008 the Company had cash and cash equivalents of $5,408,362 , and unused credit facilities of approximately $5,200,000 available for future operating and capital requirements.
As at October 31, 2008, the Company’s assets totalled $29,311,049 of which the majority represented revenue generating capital assets including tangible and intangible assets. The outstanding debt at October 31, 2008 consisted of a $870,834 fixed rate term loan for purchase of the property acquired in March 2006, and revolving bank loans of $583,333 under credit facilities that are available to be used by the Company to finance the growth in the subscriber base.
The cash flows from operations and financing activities, and cash flows used in financing and investing activities for the years 2004-2008 are summarized below.
| 2008 $ |
2007 $ |
2006 $ |
2005 $ |
2004 $ |
|
| Cash flow from operations Cash flow from (used in) |
6,812,715 | 2,737,038 | 4,945,233 | 3,518,787 | 4,238,574 |
| financing activities | (172,900) | 541,108 | (339,202) | (1,184,520) | 3,802,947 |
| Cash flow used in investing activities |
(3,711,467) | (4,707,441) | (4,783,796) | (2,616,996) | (7,693,607) |
There is a significant increase in cash flow from operations due to the increase in the subscriber account base and reduction in the marketing expenditures. Management intends to stabilize the marketing expenses for the upcoming year thereby allowing the Company to continue to generate sufficient cash flows to sustain the Company’s planned growth in the short and long-term.
The cash flow used in financing activities decreased due to repayments of existing bank loans. The Company did not enter into any new loan agreements in 2008.
The Company expects to continue investing significantly in growth of the subscriber base, through marketing programs 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 phases of the manufacturing process. The Company’s assembly operations are housed in Toronto. 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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Hi my name is Maryanne, we have had AlarmForce in our home for around 5 years , a few years back my husband was out of town and it was my birthday and a few friends took me out on the town to celebrate and one girlfriend stayed the night with me in the house we turned the alarm on and went out after many glasses of wine we went back to my house my girlfriend and I walked in the house and never turned the alarm on ,Well, the alarm goes off and the operator says " AlarmForce identify yourself " I say ( very inebriated ) " It's Me!!" lol this went on till my friend intercepted and asked me "what's your password"!!! Thank God that gentleman operator was patient, kind and obviously had a sense of humor and shut the alarm off and enough compassion. Not to call the police and embarrass myself further was a blessing. Recently another alarm company wanted us to switch I said "No, they know me at AlarmForce"!!!
-Maryanne T - Okotoks, AB -
We've been customers for 8 years and our experience with AlarmForce has been very positive - thanks.
-Penny, BC -
We have had other alarm companies in the past and were very selective when choosing our alarm company on our last move. We checked out the local and national competitors. AlarmForce openly discussed the prices and service contract while others did not. AF also is one of the fewer companies that offer live voice through a speaker and can monitor any situation. This is great for our family and two children as it makes them feel safer knowing there is a LIVE person to talk to - or they can monitor what's really happening in our house. Sales staff is professional and never pushy.
-Jody S. - St. Albert, AB -
Recently we had a technician come in regarding my alarm working incorrectly. He fixed the issue and spent about one hour addressing our concerns for safety in our basement. We had a motion sensor installed. Any time your people have been here they are knowledgeable and patient. I am very satisfied with AlarmForce.
-Teresa, AB -
I just changed my batteries for the first time and I had to call the customer care department to make sure everything was ok and they were very helpful.
-Paula, BC -
Installer Trevor was excellent. A good representative of AlarmForce. Both knowledgeable and helpful. Answered all my questions. Thank you!
-Gerald, AB -
Everyone was courteous and professional. Will recommend your services.
-Diane, OH -
Our rep came out and installed our system. Very knowledgeable and professional. We are very pleased.
-Michael, AB
