SYS-CON MEDIA Authors: Jim Kaskade, Yeshim Deniz, Elizabeth White, Greg Ness, Sean Houghton

News Feed Item

AlarmForce Announces 2012 Results

TORONTO, ONTARIO -- (Marketwire) -- 01/28/13 -- AlarmForce Industries Inc. (TSX:AF), Canada's largest manufacturer and installer of live two-way voice home alarms systems, is pleased to announce annual results for the year ended October 31, 2012:


----------------------------------------------------------------------------
                                                                     Change 
                                  Oct. 31, 2012  Oct. 31, 2011   (year over 
                                   (year ended)   (year ended)        year) 
                                --------------------------------------------
                                                                            
Revenue                          $   44,837,000 $   40,854,000          +10%
Gross profit                                                                
                                 $   33,643,000 $   31,215,000          + 8%
Net income                       $    1,163,000 $    3,335,000         - 65%
                                                                            
Cash flow from operations        $    4,635,000 $    8,622,000         - 46%
Cash flow from operations                                                   
 excluding working capital       $    5,351,000 $    7,333,000         - 27%
                                                                            
EBITDA                           $    6,237,000 $    9,989,000          -38%
EBITDA/share                     $         0.51 $         0.82         - 38%
EBITDA before marketing expenses $   23,371,000 $   20,766,000          +13%
                                                                            
Basic Net income / share         $         0.10 $         0.27          -65%
Diluted Net income / share       $         0.09 $         0.27          -65%
----------------------------------------------------------------------------
                                                                            
(i)  EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and      
     Amortization) is a key measure in the security industry and should not 
     be interpreted as IFRS)                                                

EBITDA is defined as earnings before interest expenses, income taxes, depreciation and amortization. EBITDA is a measure used in the security industry to assist in understanding and comparing operating results and is often referred to by our competitors. Management views EBITDA as a measure to assess the operating performance of the Company. Yet, since it does not have any standardized meaning defined by Canadian IFRS, it may not be considered in isolation of IFRS measures such as net income/loss or cash flows, as a measure of liquidity. The Company, however, utilizes these measures in making operating decisions and assessing its performance. Management believes that it allows the Company to assess its ongoing business without the impact of depreciation or amortization expenses. Since EBITDA is not a defined term under IFRS, it is unlikely to be comparable to similar measures presented by other issuers.

Joel Matlin, President and CEO, announced that AlarmForce Industries Inc. added 26,200 new accounts in the fiscal year ended October 31, 2012, and closed the year with a subscriber base of 134,100 accounts.

Mr. Matlin said that, "The annualized net growth rate in the subscriber base was 8% and gross revenue increased to a record total of $44.8 million representing an increase of $3.9 million or 10% over 2011. Diluted earnings per share decreased from 27 cents per share to 9 cents per share and net income decreased from $3.3 million to $1.1 million, or 65%. Marketing expenditures increased by $6.5 million this year, to promote the introduction of VideoRelay in all our service territories, as well as foster expansion into the Florida market. The increase in total expenditure more than offset the increase in revenues, resulting in a decrease in reported earnings. Gross profit increased by 8% for the year, while as a percentage of sales decreased marginally from 76% to 75%.

"In interpreting these results it is important to remember the our organic growth model creates new subscriber accounts that represent long-term recurring monthly revenues, which will generate recurring cash flows over the life of the subscriber relationship. The costs to create accounts are expensed up-front in the year in which the account is created, unlike competitors who grow by acquiring accounts and capitalizing their acquisition costs. It is therefore important to look at other performance metrics and the increase in the economic value of the business from net subscriber growth.

"EBITDA decreased from $10.0 million to $6.2 million, reflecting the significant impact of marketing expenses. Excluding the impact of marketing expenses, in 2012 EBITDA increased by 13% to $23.4 million from $20.8 million. This compares with a 3% increase from 2010 to 2011.

"Despite a reduction in cash flows from operations by 46% to $4.6 million in 2012, we continue to fund all our costs of growth, including marketing, and research and development, from internal cash flows.

"We are optimistic that VideoRelay provides a competitive advantage, both as a stand-alone installation or when bundled with an AlarmForce system. Our subscriber growth should be positively impacted in the future as market acceptance of VideoRelay grows. We installed 3,100 VideoRelay systems in 2012, and anticipate that our video technology installations will continue to grow as the market demand for video enabled services increases."

Mr. Matlin closed by saying: "We look ahead to growth in subscribers and in earnings over the long term, as our brand continues to offer leading edge technology and the best affordable value to consumers in the home alarm and video markets. I would like to thank our subscribers, investors, employees and Directors for their continuing support and confidence in AlarmForce."

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and selected centers across the United States. AlarmForce is a leading provider of two-way voice alarm systems in Canada. More information about the Company's products and services can be found at www.alarmforce.com and www.videorelay.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"ElasticBox is an enterprise company that makes it very easy for developers and IT ops to collaborate to develop, build and deploy applications on any cloud - private, public or hybrid," stated Monish Sharma, VP of Customer Success at ElasticBox, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to th...
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
SYS-CON Media announced that Centrify, a provider of unified identity management across cloud, mobile and data center environments that delivers single sign-on (SSO) for users and a simplified identity infrastructure for IT, has launched an ad campaign on Cloud Computing Journal. The ads focus on security: how an organization can successfully control privilege for all of the organization’s identities to mitigate identity-related risk without slowing down the business, and how Centrify provides ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.