AlarmForce Home security Leader Notches up Strong Financial Performance for Second Quarter, 2008

June 17, 2008 - PRLog -- AlarmForce Industries trend of year on year growth remains unabated so far with impressive financial results for second quarter of 2008 announced yesterday. It calls for our attention coming as it does on the heels of major launch of new personal alarm device by AlarmForce called AlarmCare.

What has impressed most industry insiders is sterling performance and low all time debt per customer of $19 after expenditure intensive startup of AlarmCare.  AlarmForce financial statements at the closing of 2007 had revealed debt per subscriber of $22.

Joel Matlin President and CEO of AlarmForce releasing the financial results stated   "During the second quarter we launched AlarmCare, our 24-hour personal emergency response system. Building the capacity and the rollout for the AlarmCare subscriber service required an increased use of resources including quality control, brand-building and launch. This was reflected in an increase in expenses, and also contributed to the fact that our second quarter subscriber increases did not exceed the record set in the immediately preceding quarter. Currently, AlarmCare branding has moved past the start-up phase and our course has resumed to  allow us to increase our margins in future quarters."

"Having successfully completed the launch of AlarmCare, we look ahead to revenue growth in all the current markets that we service in Canada and the US. Retirees represent one of the fastest growing segments of the population and we are excited to add this to AlarmForce’s recurring revenue business." "AlarmForce revenues for the second quarter reached $7,317,000, setting a record for the highest quarterly revenue in the company's history. This increase brought total revenues for the first six months of 2008 to $14,416,000, up by 20% over the first six months of 2007. Income before taxes for the period was up by 37%, and Net income was up by 43%."

Volume of AlarmForce share traded on stock exchange on any given day may be less but those who know the business think AlarmForce shares may be a steal. Performance of home security industry is measured by EBITDA, a performance indicator ratio that reveals how wisely a security company has handled revenue expenditure without eroding stockholders investment in the company. AlarmForce EBITDA increased by 27%, from $6.6 million to $7.5 million from corresponding period in 2007.

Also responsible for this increased profitability and healthy EBITDA is the organic growth of subscriber base.  An organic model of expansion keeps the advertising expenditure down, reduces debt and improves capitalization.  Not easy in an industry with huge advertising budgets and intense competition.  

Mr. Matlin reviewing the performance said "Our future outlook is immensely positive. Favorable demographic trends continue to provide impetus for growth in the residential alarm business. Several important factors are driving an increased level in home ownership, including immigration and strong population growth, increased urbanization, longer life expectancy rates, smaller households, and more second homes for the baby boom generation. All these factors will have a far-reaching and highly beneficial effect on demand for our subscriber services."

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