- We protect over 150,000 people across North America
- Over 20 years experience in the industry
- One of the few alarm companies to manufacture our own technology
- You deal directly with AlarmForce at all times
- Lowest prices and best value in the business
Financial Information
8. LIQUIDITY AND CAPITAL RESOURCES
As at October 31, 2007 the Company had cash and cash equivalents of $2,480,014, and unused credit facilities of approximately $4,800,000 available for future operating and capital requirements.
As at October 31, 2007, the Company’s assets totalled $25,251,571 of which the majority represented revenue generating capital assets including tangible and intangible assets. The outstanding debt at October 31, 2007 consisted of a $920,834 fixed rate term loan for purchase of the property acquired in March 2006, and revolving bank loans of $838,534 under credit facilities that are available to be used by the Company to finance the growth in the subscriber base, which in turn will contribute to additional recurring revenues and cash flows. The increase in the revolving bank loans is due to loans acquired in March 2007 to finance the acquisition of franchise rights.
The cash flows from operations and financing activities, and cash flows used in financing and investing activities for the years 2003-2007 are summarized below.
The cash flow used in investing activities shows a significant increase primarily due to the Company acquiring a bank loan to finance the purchase of franchise rights. The Company’s cash flow from operations has decreased as the corresponding marketing expenditures increase.
The Company expects to continue investing significantly in growth of the subscriber base, through marketing programs and in the installation of new security systems in subscriber homes. Security systems are installed under three-year contracts, which are subsequently renewable annually. The Company manufactures the equipment that it installs and the manufacturing process involves purchasing various key components from foreign and domestic manufacturers, and utilizing local subcontractors in certain parts of the manufacturing process. The Company’s manufacturing operations are housed in Toronto where the alarm systems are manufactured. In addition to the standard system, the Company also manufactures AlarmPlus telephone line-cut technology that is available exclusively to subscribers of AlarmForce, which is the only Canadian alarm company that manufactures and installs AlarmPlus.
| 2007 & |
2006 & |
2005 & |
2004 & |
2003 & |
|
| Cash flow from operations Cash flow from (used in) |
2,737,038 | 4,945,233 | 3,518,787 | 4,238,574 | 2,665,485 |
| financing activities | 541,108 | (339,202) | (1,184,520) | 3,802,947 | 296,869 |
| Cash flow used in investing activities |
(4,707,441) | (4,783,796) | (2,616,996) | (7,693,607) | (2,984,470) |
The cash flow used in investing activities shows a significant increase primarily due to the Company acquiring a bank loan to finance the purchase of franchise rights. The Company’s cash flow from operations has decreased as the corresponding marketing expenditures increase.