Welcome!

News Feed Item

AlarmForce Announces 2014 Q2 Results

TORONTO, ONTARIO -- (Marketwired) -- 06/12/14 -- AlarmForce Industries Inc., (TSX:AF) Canada's largest manufacturer and installer of live two-way voice home alarm systems, is pleased to announce results for the six months ended April 30, 2014:


                                   Three months ended      Six months ended 
                                 April 30,   April 30,   April 30, April 30,
                                      2014        2013        2014      2013
                                 ---------  ------------ --------- ---------
($ in thousands, except per                                                 
 share and subscriber amounts)                                              
Total revenue                    $  13,153 $    12,104   $  26,138 $  24,026
Net income                       $   1,772 $     1,319   $   4,177 $   2,694
Shares outstanding, diluted         11,929      12,275      11,957    12,275
Diluted net income per share     $    0.15 $      0.11   $    0.35 $    0.22
Cash flows from operations       $     624 $     2,009   $   5,626 $   3,659
EBITDA(i)                        $   3,717 $     2,936   $   8,388 $   6,152
Adjusted EBITDA(i) (before                                                  
 marketing expenses)             $   7,007 $     6,324   $  14,435 $  12,753
Adjusted EBITDA(i) per diluted                                              
 share                           $    0.59 $      0.52   $    1.21 $    1.04
Recurring monthly revenue (RMR)  $   3,984 $     3,750   $   3,984 $   3,750
                                                                            
Total subscribers                  143,800     135,600     143,800   135,600

(i)EBITDA is a non-IFRS financial measure and is defined in the disclosure section accompanying this press release.

AlarmForce closed its second quarter of 2014 with 143,800 subscribers, reflecting a growth rate of 6% in subscriber accounts.

The Company's net income for the six months ended April 30, 2014 was $4.2 million, reflecting a 55% increase over the comparative 2013 period, while diluted net income per share was $0.35, reflecting a 60% increase.

For the six month period, AlarmForce revenues increased to $26.1 million, reflecting a growth in revenues of 9%, while RMR increased by 6% during the same period. Canadian revenue increased by 4% to $19.2 million and US revenue increased by 27% to $6.9 million.

EBITDA increased by $2.2 million, an increase of 36% over 2013. Although marketing expenses decreased by $0.6 million when compared to the same period in 2013, the Company expects to maintain the same advertising spend in 2014 as in 2013. Excluding the impact of these marketing expenses, adjusted EBITDA for the six month period increased by 13% from $12.8 million to $14.4 million.

Cash flows from operations increased to $5.6 million from $3.7 million, an increase of $1.9 million or 54%. The Company plans to continue its growth without adding debt, funding all growth and product development from the Company's internal cash flows in 2014.

During the second quarter, the Board announced an increase in its quarterly dividend to $0.03 per share from $0.025 per share. A quarterly dividend of $0.03 was declared and subsequently paid on May 20, 2014.

During the second quarter, the Board also declared a special one-time dividend of $0.60 per common share for all shareholders on record as at April 30, 2014, which was subsequently paid on May 20, 2014. The special dividend, which was in addition to the regular quarterly dividend reflects the Company's strong cash position. It demonstrates the Company's ability to continue investing in growth from internally generated cash, while at the same time giving shareholders an additional opportunity to benefit from our operational strength.

The Company purchased for cancellation a total of 73,600 shares for a total price of $0.7 million under the NCIB in 2014.The decrease in total shares outstanding from the comparative six month period is due to shares repurchased by the Company for cancellation under its share buyback program, partly offset by the exercise of stock options in the same period. This had a 2.7% positive effect on diluted net income per share and EBITDA per share.

Mr. Pizzonia, interim President and CEO, stated that "Our vertical integration and competitive cost structure enable us to compete favourably on both price and service, resulting in a better customer experience and higher retention of accounts created through organic growth. Our focus continues to be on providing an integrated customer experience with increased efforts on retention. We will continue leveraging our value proposition and core competitive strengths to drive subscriber growth, and increase RMR though the adoption of enhanced service offerings such as VideoRelay and CellWave."

About AlarmForce

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and the United States. More information about the Company's products and services can be found at www.alarmforce.com.

Disclosure

EBITDA is defined as earnings before interest expenses, income taxes, depreciation and amortization. EBITDA is a key 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 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 this measure 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.

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
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
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, panelists will discuss the vast to...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...