First National AlarmCap Income Fund

First National AlarmCap Income Fund

November 11, 2009 10:53 ET

First National AlarmCap Income Fund Presents Its Results for the Third Quarter of 2009

EDMONTON, ALBERTA--(Marketwire - Nov. 11, 2009) - The Management and Trustees of First National AlarmCap Income Fund (TSX:FNA.UN) are pleased to report results for the third quarter (Q3) of 2009.

Total revenues for the first nine months were $22.3 million compared to $23.0 million for the same period in 2008, a decrease of 3.3%. The Fund has experienced a softening in demand in the commercial sector and higher residential customer attrition than anticipated. As a result, the Fund has seen a decline in customers from 97,000 to 94,000 since the end of the third quarter in 2008.

For the three months ended September 30, 2009, the Fund realized EBITDA of $3.8 million, up from $3.5 million from the previous quarter. For the nine months ended September 30, 2009, the Fund realized EBITDA of $10.7 million compared to $11.5 million for the same period in 2008. The Fund will continue to implement its business plan of improving customer service while implementing strategies to stabilize and grow the subscriber base and improve operating income.

Cash on hand at the end of the third quarter was $9.9 million as compared to $7.4 million at December 31, 2008. This improvement in cash is the largely the result of cash generated from our portfolio of monitored accounts. This improvement in cash is after the payment of $954,000 of distributions to unitholders during the year. We are pleased with the ability of the Fund to generate cash despite difficult economic conditions and a competitive security alarm industry.

The Trustees are pleased to announce a distribution for the month of November in the amount of $0.02 per unit. With regards to future distributions, the Trustees will continue to monitor, on a monthly basis, a number of relevant factors including compliance with all of the debt covenants of its Bank Credit Agreement, the projected profitability of the Fund, and the level of cash resources required to implement its business plan.

The Fund is an unincorporated, open-ended, limited purpose trust and its Class A trust units are listed on the Toronto Stock Exchange under the ticker symbol "FNA.UN". The Fund was established to acquire substantially all of the assets and shares of Microtec Enterprises Inc. (Microtec) and substantially all of the assets of Securex Master Partnership Agreement. The Microtec division, based in Quebec, is one of the largest full-service security alarm monitoring operations in Canada and has approximately 79,500 subscribers. The Securex division, based in Alberta, has approximately 14,000 subscribers which are managed by a contractor on behalf of the Fund. In total, the Fund has approximately 94,000 subscribers.

A copy of the consolidated financial statements for the quarter ended September 30, 2009, related MD&A, and additional information concerning the Fund is available on SEDAR at

Cautionary statement regarding forward-looking information and statements.

Certain statements contained in this news release, which relate to matters that are not historical facts, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information and statements in this news release include but are not limited to: confidence that its alarm monitoring business will remain in demand and that the Fund has the capacity and ability to execute its business plan. These statements are based on certain assumptions and analysis made by the Fund in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Fund's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Fund's expectations. Such risks and uncertainties include, but are not limited to: fluctuations in the demand for monitoring and installation of security systems, general economic, market or business conditions; changes in laws or regulations, including taxation and environmental; the lack of availability of qualified personnel or management; and other unforeseen conditions which could impact the use of services supplied by the Fund. See also the Fund's Annual Information Form dated March 26, 2009, available on the Fund's website ( and on SEDAR at for a comprehensive set of risk factors related to the Fund. Consequently, all of the forward-looking information and statements made in this report are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Fund will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Fund or its business or operations. Except as may be required by law, the Fund assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events or otherwise.

Contact Information

  • First National AlarmCap Income Fund
    Fred Fong
    President & Chief Executive Officer