- We protect over 150,000 people across North America
- Over 20 years experience in the industry
- One of the few alarm companies to manufacture our own technology
- You deal directly with AlarmForce at all times
- Lowest prices and best value in the business
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 |
July 31, 2005 |
Change |
|||||
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