AlarmForce Industries Inc.
TSX : AF

AlarmForce Industries Inc.

June 14, 2005 08:30 ET

AlarmForce Revenue Exceeds $8 Million In First Six Months

TORONTO, ONTARIO--(CCNMatthews - June 14, 2005) - AlarmForce Industries Inc. (TSX:AF)

Joel Matlin, President and CEO, is pleased to announce results for the six months ended April 30, 2005:



April 30, 2005 April 30, 2004 Change
-------------------------------------------------
(6 months ended) (6 months ended) (Over same
period)

$ $
Revenue 8,257,715 6,938,807 + 19%

Gross Margin 6,370,564 5,526,834 + 15%

Income before
income taxes 1,743,476 1,513,599 + 15%

Net income 1,041,586 934,186 + 11%
Cash flow from
Operations 3,883,639 3,568,407 + 9%

EBITDA 4,296,439 3,569,128 + 20%
EBITDA/share 0.37 0.35 + 3%

Cash flow/share 0.33 0.30 + 10%

Diluted net income/share 0.087 0.085 + 2%


Mr. Matlin said that: "In the second quarter the monitored account base increased to over 52,700 subscribers up from 44,800 at the end of April 30, 2004, an annul increase of 18%. Our recurring monitoring revenues continued to increase to record-setting levels from the comparative six-month period of the previous year. We are looking ahead to another record year for subscriber growth. The value of companies in our industry is typically based on monthly recurring revenue and the size of the account base, less the debt against the accounts. The company currently has cash and cash equivalents of $ 3 Million which is net of debt."

"Revenues for the six months increased to $ 8,257,000, up 19% from the corresponding six months of 2004. EBITDA increased to $ 4,296,000, up by 20%. Income before taxes increased by 15% while net income increased by 11%. The per-share net income increased 2%, which reflects the increase in the weighted average total shares outstanding in 2005. Cash flows from total operating activities increased 9% from a year ago."

Mr. Matlin said that: "I am very pleased to announce that the first two months of our US expansion in North Carolina, which are included in the results, have proven positive even at this early stage. Based on the experience in Charlotte, we are expanding into two neighbouring centres in North Carolina. Their population reflects similar demographic characteristics as our target markets in Canada, and this demographic segment represents the most successful niche markets for us. We are very optimistic that the brand awareness will continue to gather momentum."

"Our US brand expansion in North Carolina is at a very early stage both entrepreneurs and experts on successful branding agree that long range commitment of resources and a consistent message to the consumer are key success factors, but the rewards of brand equity are commensurately high. We believe that our strong capitalization will be instrumental in the success of our US expansion, as AlarmForce grows in the next few years to become a major brand and the home alarm company of choice for consumers."

AlarmForce is Canada's largest manufacturer and installer of two-way voice home alarms systems, serving the major markets in Canada and selected markets in the US.

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