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 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 -
I am more than satisfied with your product, service, technical support and feel safe - that is the most important fact. P.S. I love your television advertising too!
-Brenda, AB -
The alarm allows me to sleep at night without worrying too much. I had a house that had several break-ins, hopefully the AlarmForce tags on my doors and windows will discourage thieves.
-Sandra, BC -
Very happy with service, installation and operation of equipment . We now feel more secure in our home.
-Victor, ON -
I am replying as requested in the email to confirm the installation date and time. I would also like to thank you for taking the time to answer all of my questions and addressing all of my concerns in a professional and courteous manner. It seems to me these traits are rare these days. I would also like to thank AlarmForce for providing a top rate security system very competitive price. Since being in the market for a residential alarm system for some time now, I researched several companies, this included calling for quotes, checking the internet (ie. company websites, and independent forums), checking with the BBB, talking to neighbors with different alarm monitoring companies. I also checked with the local police and Sheriff's department to get the stats on their responses to alarm calls in the area. Through out my research one company consistently out performed every other company I checked out. That company was AlarmForce. In the area of cost and installation, the price of the different systems ranged from $0 to $299. As far as calling for quotes, it ranged from getting a knowledgeable live person right away to an automated operator asking for a callback number so that the sale team could call back. My experience with the call back normally took several days. Upon checking with the online forums and neighbors, I received response that ranged from very satisfied to deplorable with the different alarm companies. As a police officer I know the importance of responding to an active alarm call and having as much information as possible, and this was agreed to in the reports I got from the local police and Sheriff's department. With AlarmForce's live two-way voice alarm system the responding officers are able to better know the true nature of the alarm. As a police officer in Mid-town Atlanta, Ga. I know first hand the importance of a reliable alarm system and monitoring company. I would like to reiterate that after my extensive research I feel AlarmForce provides both a reliable alarm system and monitoring company at a very competitive price. Again thank you AlarmForce for the great service your company offers.
-Jonathan, GA -
We are in all ways satisfied with the service and deportment of the representatives.
-Gordon, BC -
Outstanding program - state of the art technology. Well done.
-Charles, AB -
We enjoy having AlarmForce in our home. It's a superior system that delivers on its promise of a much more affordable price than the other guys.
-Shane, AB