Financial Information

AlarmForce Revenue exceeds $8 million in first six months

Joel Matlin, President and CEO, is pleased to announce results for the six months ended April 30, 2005.

  April 30, 2005 (6 months ended) April 30, 2004 (6 months ended) Change (Over same period)
  $ $  
Revenue 8,257,715 6,938,807 +19%
Gross Margin 6,370,564 5,526,834 +15%
Income before taxes 1,743,476 1,513,599 +15%
Net income 1,041,586 934,186 +11%
Cash flow from Operations 3,883,639 3,568,407 +9%
EBITDA 4,296,439 3,569,128 +20%
EBITDA/share 0.37 0.35 +30%
Cash flow/share 0.33 0.30 +10%
Diluted net income
/share
0.087 0.085 +2%

(* EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and Amortization) is a key measure in the security industry and should not be interpreted as GAAP)

Mr. Matlin said that: "In the second quarter the monitored account base increased to over 52,700 burglar alarm subscribers up from 44,800 at the end of April 30, 2004, an annul increase of 18%. Our recurring monitoring revenues continued to increase to record-setting levels from the comparative six-month period of the previous year. We are looking ahead to another record year for subscriber growth. The value of companies in our industry is typically based on monthly recurring revenue and the size of the account base, less the debt against the accounts. The company currently has cash and cash equivalents of $ 3 Million which is net of debt."

"Revenues for the six months increased to $ 8,257,000, up 19% from the corresponding six months of 2004. EBITDA increased to $ 4,296,000, up by 20%. Income before taxes increased by 15% while net income increased by 11%. The per-share net income increased 2% which reflects the increase in the weighted average total shares outstanding in 2005.Cash flows from total operating activities increased 9% from a year ago."

Mr. Matlin added that: "I am very pleased to announce that the first two months of our US expansion in North Carolina, which are included in the results, have proven positive even at this early stage. Based on the experience in Charlotte, we are expanding into two neighbouring centres in North Carolina. Their population reflects similar demographic characteristics as our target markets in Canada, and this demographic segment represents the most successful niche markets for us. We are very optimistic that the brand awareness will continue to gather momentum."

"Our US brand expansion in North Carolina is at a very early stage both entrepreneurs and experts on successful branding agree that long range commitment of resources and a consistent message to the consumer are key success factors, but the rewards of brand equity are commensurately high. We believe that our strong capitalization will be instrumental in the success of our US expansion, as AlarmForce grows in the next few years to become a major brand and the home alarm company of choice for consumers."

AlarmForce is Canada's largest manufacturer and installer of two-way voice home alarms systems, serving all major markets in Canada and selected markets in the US.

For further information, contact:
Investors Relations Dept.
Tel: 416-445-2001 ext#225
Fax: 416-445-9381
E-mail: investor@AlarmForce.com

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Testimonials

  • 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
  • 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
  • AlarmForce is the best choice to protect any home as it is an economical 24 hr monitored service. I never thankfully had to actually use the system for a incident but my family feels more secure knowing the system is there monitoring our home. I also would like to comment the staff as I had issues with low batteries the walked me through the maintenance of the system.  Everyone I have dealt with was very friendly. I would and have recommended Alarm force to friends and co-workers. Thank You.
    -Greg S. - Spruce Grove, AB
  • Thanks for helping to protect our family.
    -Marshall, GA
  • Set off by mistake.  Response was very quick and expertly carried out. 
    -Robert, OH
  • I recently had some service done to our alarm system and after retelling the story my father had suggested that I email you about the experience. In fact, it really was no different then past service visits we have had with AlarmForce. The three guys I have seen over the last few years have all been fairly young and each of them has pleasantly surprised me with their professional demeanor. Each one of them has been courteous, friendly and organized. it starts with them showing up on time for the appointment, taking their shoes off without having to be asked, respecting their surroundings and always offering up advice or guidance with the system. In fact. even the service I receive on the phone from your central station has always been pleasant and professional. So all said, you've done an excellent job at training them to provide an exceptional customer experience. Anyways, I thought I'd share.
    -Jamie, QC
  • Every person I have talked to has been very nice and helpful.
    -Matthew, OH
  • 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
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