AlarmForce Industries Inc.

AlarmForce Industries Inc.

March 11, 2005 11:30 ET

AlarmForce Revenue Reaching $4 million in First Quarter


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ALARMFORCE INDUSTRIES INC.

TSX SYMBOL: AF

MARCH 11, 2005 - 11:30 ET

AlarmForce Revenue Reaching $4 million in First Quarter

TORONTO, ONTARIO--(CCNMatthews - March 11, 2005) - AlarmForce Industries
Inc. (TSX:AF) - Joel Matlin, President and CEO, is pleased to announce
results for the first quarter ended January 31, 2005:



January 31, 2005 January 31, 2004 Change
---------------------------------------------------------------------
(3 months ended) (3 months ended) (Over same
period)
$ $
Revenue 3,998,821 3,417,422 +17%
Income before
income taxes 786,984 599,020 +31%
Net income 436,039 346,711 +26%
Cash flow from
Operations 1,311,025 1,763,896 -26%
EBITDA 2,064,711 1,623,485 +27%
EBITDA/share 0.178 0.166 + 7%
Cash flow/share 0.113 0.180 -37%
Basic Net
income/share 0.037 0.035 + 6%
Diluted net
income/share 0.036 0.033 + 6%


Mr. Matlin said that: "Our monitored account base during this quarter
grew to over 50,000 subscribers, thanks to strong organic account growth
from our nationwide marketing programs. Recurring monitoring revenues
and EBITDA continued to post increases from the comparative three-month
period of the previous year."

"Revenues for the quarter increased to $3,998,000, up 17% from the
corresponding quarter in 2004, while EBITDA increased to $2,065,000, up
by 27%. Income before taxes increased by 31% while net income increased
by 26%, after reflecting a higher effective tax rate than a year ago.
The per-share income decreased as a result of the two share issuances in
2004, which increased the denominator representing the weighted average
total shares outstanding for the quarter."

"While cash flows from total operating activities decreased 26% from a
year ago, this was due to changes in our working capital accounts, which
represent a non-recurring item and which we expect will be offset over
future quarters. Excluding the changes in working capital, operating
cash flow increased from $1,573,000 to $2,007,000, a 28% increase, in
line with EBITDA and more reflective of the trend in our growth."

Mr. Matlin added that: "Despite the expanding subscriber base and
double-digit growth in recurring revenues, our administrative and
selling expenses decreased from a year ago by 5%. With our growth in
account creation at a record level and expanding brand recognition, we
expect to achieve record-breaking results once again in 2005."

"We are expanding into the US, having selected North Carolina as the
first market. The State granted AlarmForce a business operating license
last month, and we are actively building the AlarmForce brand of two-way
voice interactive technology in this market, which boasts a population
of 8.4 million, or approximately 25% of the population of Canada.
Notably, a large proportion in this market, namely 70%, is made up of
homeowners, making it an attractive target market for AlarmForce. We
look forward to reporting the progress of our US expansion in future
quarters."

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

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    AlarmForce Industries Inc.
    Investors Relations Dept.
    (416) 445-2001 ext#225
    (416) 445-9381 (FAX)
    E-mail: investor@alarmforce.com