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
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
"Cloud computing is certainly changing how people consume storage, how they use it, and what they use it for. It's also making people rethink how they architect their environment," stated Brad Winett, Senior Technologist for DDN Storage, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
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 ...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
“Why didn’t testing catch this” must become “How did this make it to testing?” Traditional quality teams are the crutch and excuse keeping organizations from making the necessary investment in people, process, and technology to accelerate test automation. Just like societies that did not build waterways because the labor to keep carrying the water was so cheap, we have created disincentives to automate. In her session at @DevOpsSummit at 20th Cloud Expo, Anne Hungate, President of Daring System...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...