- 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
AlarmForce Industries Inc. announces Record First Quarter Earnings .
TORONTO-Ontario- June 14, 2004- Joel Matlin, President and CEO, is pleased to announce results for the six months ended April 30, 2004:
|
April 30, 2004 |
April 30, 2003 |
Change |
|||||
Revenue |
$7,194,000 |
6,007,000 |
+ 20% |
|||||
Income before taxes |
1,679,000 |
1,144,000 |
+ 47% |
|||||
Net income |
1,000,000 |
717,000 |
+ 38% |
|||||
Cash flow from Operation |
3,568,00 |
2,595,000 |
+ 37% |
|||||
EBITDA |
3,735,000 |
2,789,000 |
+ 34% |
|||||
Net income/share* |
0.10 |
0.079 |
|
|||||
EBITDA/share* |
0.35 |
0.30 |
|
|||||
Cash flow/share* |
0.3 |
0.28 |
|
|||||
(* on a diluted basis)
"We will continue to focus on our core business, which we expect to continue growing in the second half to achieve record results for the full year ending October 31, 2004.
"In addition to the strong growth we are achieving in the Canadian market, we are taking solid steps to prepare the company to exploit the global opportunity by replicating its business model outside of Canada. We are very optimistic that this will add to revenues and that profits will soar even higher in the next few years.
"In 2004, we have made a significant inroad to reducing our debt, which decreased by approximately $1.1 million as a result of increasing cash flows generated by operations. We reduced our debt significantly at the same time that investment in new accounts continued to increase at a higher rate. Financial strength is one of our most important assets in terms of differentiating the company as a leader in the industry."
"Second quarter income before income taxes increased to $1,000,000, up by 61% from a year ago, while net income for the second quarter alone increased to $572,000, up by 41% from a year ago. Both represent solid increases over the first quarter, which reflects the strong performance of the AlarmForce team and these results are extremely gratifying for all of us.
"Operations generated cash flow of $3,568,000 in the first six months of 2004, up by 37% from a year ago. This exceeded the company's investment requirements for expansion by $689,000 in the six months ($388,000 in the second quarter). The company's increasing cash flows allowed us to reduce debt by $1,096,000 ($524,000 in the second quarter). These results well exceed industry benchmarks, strengthening our company's financial position and differentiating AlarmForce as a leader in the industry."
"We believe that the current bank credit facilities and expected internal financial resources will be adequate to enable us to carry out our business plan and strategy for the foreseeable future, without need for off-balance sheet financing options. In addition the company has established a solid base in the equity financing market, allowing us access to equity markets, which is a valuable competitive advantage in the industry. This adds an additional source of capital to finance new initiatives with potentially greater growth for our account base. As we prepare the company for future global opportunities, we stand to benefit greatly from the potential to expand geographically and increase our account size at an accelerating pace. "
Mr. Matlin closed by saying. "By maintaining a low overhead relative to our total subscriber account size, we will continue to see the same kind of increasing efficiency in operations and overall performance. With relatively fixed overhead and low debt servicing costs, we expect strong increases in profit margins in the foreseeable future."
AlarmForce is Canada's largest manufacturer and installer of two-way voice home alarms systems, with headquarters and central station based in Toronto and 30 offices across Canada.
For further information, contact:
Investors Relations Dept.
Tel: 416-445-2001 ext#225
Fax: 416-445-9381
E-mail: investor@alarmforce.com