Welcome!

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
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...