AlarmForce Industries Inc.
TSX : AF

AlarmForce Industries Inc.

March 09, 2007 12:46 ET

AlarmForce Revenue Posts Record Earnings in First Quarter

TORONTO, ONTARIO--(CCNMatthews - March 9, 2007) - Joel Matlin, President and CEO, is pleased to announce results for the first quarter ended January 31, 2007:



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January 31, 2007 January 31, 2006 Change

(3 months ended) (3 months ended) (over same period)
----------------- ----------------- ------------------

Revenue $5,847,920 $5,049,295 16%
Income before income
taxes $901,101 $458,534 97%
Net income $566,101 $281,140 101%

Cash flow form
operations
excluding working
capital $1,195,437 $878,343 36%

EBITDA $1,559,170 $1,137,282 37%
EBITDA/share $0.13 $0.09

EBITDA before
marketing
expenditure $3,176,617 $2,534,762 25%

Basic Net
income / share $0.05 $0.02
Diluted Net
income / share $0.05 $0.02
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(i) EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and
Amortization) is a key measure in the security industry and should not
be interpreted as GAAP)


Mr. Matlin said that: " AlarmForce closed the first quarter of 2007 with a total subscriber base of 68,800 accounts, posting new record-setting levels for revenue and earnings. Total revenues for the three months ended January 31, 2007 increased to $5,847,920, a 16% increase from the comparative three-month period in 2006, while net income increased to $566,101 representing a 101% increase. The Company is continuing to see increases over past performance as we continue to expand our brand recognition and increase operating margins through gains in efficiency."

" EBITDA increased to $1,559,170, up by 37% from the same quarter last year, which is calculated after expensing our marketing costs. Because the Company' s subscriber growth is internally generated rather than based on acquisition, our policy is to account for marketing costs as period expenses. Therefore the costs are not capitalized in the cost of new subscriber accounts created through direct-response marketing. The Company' s total selling expenses, which increased by 25% from the same three-month period in 2006, reflects the increase in direct-response marketing, which generates new subscriber accounts in Canada and the United States."

" Cash flows from operations have increased in line with the increase in recurring revenues from subscriber accounts. Excluding working capital and investment in growth, operating cash flow increased to $1,195,437, a 36% increase from the same three-month period in 2006. While revenues and subscriber volumes increased, the Company' s general and administrative expenses decreased 9%. Thanks to the dedicated AlarmForce team and a streamlined organization structure, the Company continues to control costs by minimizing reliance on outsourcing and subcontracting.

" As a result of our U.S. expansion, we are looking ahead with great optimism to the significant opportunity that access to this huge market offers. Our recently announced plan to open in Atlanta, Georgia means that AlarmForce will now be servicing seven major centers in three States. Therefore, the total AlarmForce footprint in North America will increase to approximately double that of Canada, offering much greater potential for subscriber growth."

AlarmForce is Canada' s largest manufacturer and installer of two-way voice home alarms systems and line-cut protection. The Company has offices serving all major markets in Canada and selected markets in the United States.

Contact Information

  • AlarmForce Industries Inc.
    Investor Relations Dept.
    (416) 445-2001 ext#225
    (416) 445-9381 (FAX)
    Email: investor@alarmforce.com