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 data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
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. In his session at 19th Cloud Exp...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...