|By Marketwired .||
|January 28, 2013 05:05 PM EST||
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.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 27, 2016 09:30 PM EDT Reads: 2,949
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Sep. 27, 2016 09:30 PM EDT Reads: 453
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Sep. 27, 2016 08:30 PM EDT Reads: 2,034
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Sep. 27, 2016 08:15 PM EDT Reads: 2,228
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
Sep. 27, 2016 07:30 PM EDT Reads: 2,148
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 27, 2016 07:00 PM EDT Reads: 2,855
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
Sep. 27, 2016 06:45 PM EDT Reads: 1,816
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Sep. 27, 2016 06:30 PM EDT Reads: 3,565
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Sep. 27, 2016 06:30 PM EDT Reads: 2,202
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. 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.
Sep. 27, 2016 06:15 PM EDT Reads: 403
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Sep. 27, 2016 06:00 PM EDT Reads: 1,700
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 27, 2016 05:45 PM EDT Reads: 1,662
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Sep. 27, 2016 05:30 PM EDT Reads: 2,028
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Sep. 27, 2016 05:15 PM EDT Reads: 316
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Sep. 27, 2016 05:15 PM EDT Reads: 2,771