Financial Information
Outlook and Future Growth
We believe that we are uniquely positioned as a value player with clear brand differentiation to take advantage of a softening economy in which leveraged peers are facing difficulty sustaining their businesses. With a strong cash position, consistently increasing annual operating cash flows, and a relatively small debt load, the future prospects for AlarmForce are that much brighter. Our ability to control our costs to create new accounts, versus competitors that purchase subscriber accounts, represents another key competitive advantage as we look ahead.
Now more than ever, our core brand value gives us an edge in opening new doors in new markets.We will continue to earn the trust of clients through excellence in quality and service that only affordably priced interactive wireless technology can deliver. Today even the best corporate names are under pressure. We are confident that the 20 years spent building customer loyalty and honing the AlarmForce business brand and culture of quality and dependability, will enable us to continue growing.
We are also counting on increasing the economies of scale at our central station and head office. Therefore, cash flows from operations are expected to continue to grow and to provide sufficient cash flow to fund investment in new account growth without any significant increase in debt.
AlarmForce will continue to expand the account base, maintaining cost leadership in the industry and adding each new subscriber organically. Using radio, television, print and other media in Canada and in the US as the most direct way of building the AlarmForce and AlarmCare brands geographically, we are aiming to continue to increase monthly recurring revenues, cash flows and subscribers. In 2009, we will see an increase in our marketing expenditure budget, which is supported entirely from our operating cash flows, and our programs will reflect the same disciplined approach used to achieve accretive growth in the past 20 years.
We are optimistic that further growth in subscriber accounts will fuel increases in both future earnings and cash flows. We believe that this bodes very well for our share price, given that companies in the security industry are typically valued as a multiple of recurring subscriber revenue. The foreseeable future promises to be the most exciting period yet for AlarmForce.
In closing, I wish to personally thank each member of the AlarmForce team of employees, partners and shareholders for your outstanding support during 2008, which contributed to our successful results.
Respectfully submitted on behalf of the Board of Directors.
President & Chief Executive Officer
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Testimonials
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Thank you for your quick response when we were away. A person checking the house did not do the alarm correct - your checking on it so quickly is assuring of your service.
-Bruce, ON -
Very professional and nice technician.
-Andy, ON -
Impressed with response time of Central Station..all the noise and sirens scare me and I'm the homeowner!
-Patricia, ON -
I am extremely pleased with your service. When I did not notify you that I would be on holiday, you called my son to inform him that I had not turned my alarm off after day 2 and that he should check on me. As a senior, I really appreciate what I refer to as service beyond the call of duty. Thank you.
-Lanadale, ON -
AlarmForce is our best choice because it is completely wireless and there is contact with your security instantly if needed. We use AlarmForce all the time and really like the feature of protection when we go to bed on the second floor of our home we can move around upstairs but we know we are secure with the perimeter secure. We have had very good experience with all of your staff and when I first bought the service I had the minimum security but since then I have upgraded with more motion detectors and a fire alarm which is just great. We have a beagle and he has full access in the house when the alarm is on which is very satisfying. I have recommended AlarmForce to my neighbors and two alarms were activated one was for Health Security. When the alarm is on all is well.
-Roy Z. - Alberta -
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 -
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 -
AlarmForce has given my family a sense of security and peace. With having a brand new baby girl to protect, AlarmForce keeps us sleeping safe in our beds. The staff has always been very helpful/knowledgeable when we have needed questions answered. We have recommended AlarmForce to many of our friends that are starting of in their new homes. Thank you AlarmForce, keep up the great work!
-Reydean R. - Airdrie, AB
