Financial Information
AlarmForce Announces Record Earnings Growth of 71% in Third Quarter
TORONTO-Ontario- September 13, 2006- TSX – Trading symbol - AF
AlarmForce, Canada’s largest manufacturer and installer of live two-way voice home alarms systems, is pleased to announce results for the nine months ended July 31, 2006, in which the company’s revenue, net income and subscriber account base reached record levels:
FINANCIAL HIGHLIGHTS
| July 31, 2006 (9 months ended) | July 31, 2005 (9 months ended) | Change (Over same period) | |
| Revenue | $15,420,000 | $12,525,000 | + 23% |
| Cash flow from operating activities | $2,572,000 | $2,023,000 | +27% |
| Income before taxes | $1,671,000 | $974,000 | + 72% |
| Net income | $1,051,000 | $614,000 | + 71% |
| EBITDA* | $3,407,000 | $2,685,000 | + 27% |
| Diluted net income/share | $0.09 | $0.05 | + 80% |
| Subscriber base | 64,000 | 54,000 | + 19% |
(* EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and Amortization) is a key measure in the security industry and should not be interpreted as GAAP)
Joel Matlin, President and CEO, said that, “The Company’s recurring revenues from monitored subscriber accounts continued to record increases in the third quarter, powering a 71% increase in net income. The base of AlarmForce subscribers increased to 64,000 accounts. Nine-month revenues increased to $15,420,000, up by 23% from the corresponding nine months of 2005. EBITDA increased to $3,407,000, up by 27%. Income before taxes increased by 72% while net income increased by 71%.”
“Cash flows from total operating activities increased to $2,572,000, up by 27% as a result of the record performance. Out of the operating cash flows, $534,000 was applied to debt repayments during the period, and as at the end of the third quarter we continued to operate with zero net financial debt.”
Mr. Matlin went on to add: “The Company has recently relocated the Toronto Head Office from formerly leased space to our new building on 675 Garyray Drive in Weston. The new location will provide expanded space necessary to serve the company’s growing subscriber base in Canada and the U.S., and will continue to house the AlarmForce central monitoring station and the company’s manufacturing facilities in the same location. We are pleased to have completed our relocation smoothly and with minimum disruption due to having planned this move well in advance. The company’s strong growth and continued expansion in subscribers made it economical and imperative for the company to acquire suitable space with enhanced functionality. This puts the company on a strong foundation and assures stability for growth into the foreseeable future.”
Mr. Matlin ended by saying: “We are on track to surpassing the previous record for organic account growth through the balance of the 2006 fiscal year. We expect monthly recurring revenues, cash flows and subscriber accounts to continue to grow strongly in 2006 and subsequent years.”
AlarmForce Industries Inc. is Canada’s largest manufacturer and installer of two-way voice home alarm systems and line-cut protection with offices serving all major markets in Canada and strategically selected
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
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I am an AlarmForce customer since 04/30/03. I have never given a thought to trust anyone else. You offer outstanding representatives, customer care and technical support. We trust you for all our emergency needs!
-Charles, NC -
I don't know why anyone would use a different company - excellent product, excellent customer service, excellent price!
-Frank, BC -
Ever since getting our AlarmForce alarm installed I have such a great sense of security for me and my family 24 hours a day, 365 days, whether we're home or not. The service technicians were friendly and helpful as well.
-Ken - Calgary, AB -
Mark was very helpful, Neil the installer was knowledgeable, patient and efficient with our needs.
-Rosanne, ON -
Last March, while vacationing with me, my sister-in-law started a laundry upon rising. Forgetting to disarm the system, and as the washing machine is in the laundry room at the back door, I didn't hear the signal upon opening the door to go out through the garage and get the paper, as you could visualize commotion!! The alarm sounded & when I came back in the house, my two relatives and the dog were running around in a tizzy...Since the time allotted between the alarm activation and voice response had expired, the Alarm Force operator came on, announcing I needed to identify myself or the authorities would be dispatched immediately. I quickly gave my password but got so shook up I mistakenly called the male operator "Ma'am". Sorry for that, "Sir". Although unnerving at the time, this "oops" episode was a true test of the system's value. Great Job!
-Audrey - Bradenton Beach, FL -
We set the alarm off a couple of times by mistake but haven't had to use it otherwise. I am alone now and it's a good feeling to have the alarm system.
-Helen, AB -
We decided to have AlarmForce supply the security for our home not because of the threat of burglary but the fact that we have 2 small children. My children are very inquisitive and adventurous and we where worried that they would make a break for it out of the house onto the street. And this did happen several times (even when the door was locked) but the chime feature alerted us to the door being opened and we were able to apprehend the little escape artist. Thanks AlarmForce.
-Doniel - Delta, BC -
We have protected our home and ourselves with AlarmForce for the past few years & have never felt so protected and safe. Upon retiring every night as well as every time we leave our home, we have no worries as we know we can trust Alarm Force. We have tripped the alarm ourselves on a few occasions and AlarmForce is right there making sure we are okay. What an exceptional value for such peace of mind. So, go ahead, try getting into our house!
-Barbara - Langley, BC