(1888PressRelease)
March 13, 2008 - TORONTO - Joel Matlin, President and CEO, is pleased to announce results for the first quarter ended January 31, 2008:
Mr. Matlin announced that: "AlarmForce closed the first quarter of 2008
with a total subscriber base of 82,600 accounts, posting a new record for quarterly revenue and total subscriber accounts. Total revenues for the three months ended January 31, 2008 increased to $7,098,000, a 21% increase from the comparative three-month period in 2007, while net income increased to $680,000 representing a 20% increase. The annualized increase in subscriber accounts was 20%.
Exciting new opportunities lie ahead of us as we continue to grow, using our twenty years experience in the alarm industry as the leading manufacturer of wireless alarm systems. We will continue to focus on increasing our subscriber account base and recurring revenues. Cash flows from operations are being reinvested in order to maximize AlarmForce's brand development and marketing programs. We continue to invest more in marketing, based on the confidence we have in our solid track record of generating new subscribers.
The Company is continuing to increase operating profit margins as we expand brand recognition and economies of scale.
EBITDA increased to $1,836,000 for the quarter, up by 18% from the same quarter last year, which is calculated after expensing our marketing costs.
The Company's total selling expenses increased by 12% from the same three-month period in 2007, reflecting the increase in marketing costs. This is one of the key success factors driving our engine of organic Growth, and continues to generate new subscriber accounts in Canada and the United States.
Excluding the marketing expenses, EBITDA increased to $3,842,000 up by 20% from the same period last year.
Cash flows from operations have increased due to the increase in recurring revenues from subscriber accounts. Excluding working capital and investment in growth, operating cash flow increased by 3% from the same three-month period in 2007, while net operating cash flow increased by 400% mainly due to timing differences in income tax installments.
"Our outlook is very optimistic for the remainder of 2008. AlarmCare, our latest product, is a 24-hour personal emergency response system which AlarmForce has commenced manufacturing for distribution. This product adds an excellent potential for growth in our Canadian and US markets, since one of the fastest growing subscriber segments is that of people approaching retirement. In addition, the wireless nature of our systems allows for very effective control over aspects of customer service such as installation, recovery and relocation. As a result, we expect incremental increases in gross margins and net income from AlarmCare.
Mr. Matlin added that: "The addition of AlarmCare subscribers to our client base is key to our goal of expanding our base of recurring monitoring revenues, through strategic analysis of mass market technology and demographic trends. We will continue to research opportunities that offer a unique fit for our business model, and potential to offer added value to consumers at an affordable price."
AlarmForce is Canada's largest manufacturer and installer of two-wayvoice home alarms systems and line-cut protection. The Company has offices serving all major markets in Canada and selected markets in the United States.
For further information: Investors Relations Dept., Tel: (416) 445-2001
ext No. 225, Fax: (416) 445-9381, E-mail: investor ( @ ) alarmforce dot com
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