Stock Name: AF
Amount: CAD 0.025
Announcement Date: 13/06/2012
Record Date: 27/07/2012
Dividend Detail:
Common shares traded on the Toronto Stock Exchange
Trading symbol:�� AF
TORONTO, June 13, 2012 /CNW/ - TSX - Trading symbol - AF
AlarmForce Industries Inc., Canada's largest manufacturer and installer
of live two-way voice home alarms systems, is pleased to announce
results for the six months ended April 30, 2012:
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
���� | �� | �� �� April�� 30, 2012 | �� | April�� 30, 2011 | �� | �� | �� | Change | ||
�� | �� | �� (6 months ended) | �� | �� (6 months ended) | �� | �� | �� | (over same period) | ||
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� �� |
Revenue | �� | $ | �� 22,054,000 | �� | $ | �� 20,033,000 | �� | �� | �� | +10% |
Gross profit | �� | $ | �� 16,193,000 | �� | $ | �� 15,272,000 | �� | �� | �� | + 6% |
Income before income taxes | �� | $ | �� ������ 628,000 | �� | $ | �� 3,560,000 | �� | �� | �� | - 81% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Net income | �� | $ | �� ������ 461,000 | �� | $ | ���� 2,482,000 | �� | �� | �� | - 81% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
Cash flow from operations������ | �� | $ | �� 2,307,000 | �� | $ | �� �� 3,512,000 | �� | �� | �� | - 34% |
EBITDA | �� | $ | ���� 3,075,000 | �� | $ | ������ 5,636,000 | �� | �� | �� | - 45% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
EBITDA per share | �� | ���������������� $ | 0.27 | �� | �������������� $ | 0.45 | �� | �� | �� | - 40% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� �� | �� |
EBITDA before marketing expenses | �� | $ | �� 11,186,000 | �� | $ | 10,333,000 | �� | �� | �� | + 8% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� �� |
Basic Net income / share | �� | ������������������ $ | 0.04 | �� | ���������������� $ | 0.20 | �� | �� | �� | - 81% |
Diluted Net income / share | �� | ������������������ $ | 0.04 | �� | ���������������� $ | 0.20 | �� | �� | �� | - 81% |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
* EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and
Amortization) is a key measure in the security industry and should not be interpreted as IFRS)
EBITDA is defined as earnings before interest expenses, income taxes,
depreciation and amortization. EBITDA is a measure used in the security
industry to assist in understanding and comparing operating results and
is often referred to by our competitors. Management views EBITDA as a
measure to assess the operating performance of the Company. Yet, since
it does not have any standardized meaning defined by Canadian IFRS, it
may not be considered in isolation of IFRS measures such as net
income/loss or cash flows, as a measure of liquidity. The Company,
however, utilizes these measures in making operating decisions and
assessing its performance. Management believes that it allows the
Company to assess its ongoing business without the impact of
depreciation or amortization expenses. Since EBITDA is not a defined
term under IFRS, it is unlikely to be comparable to similar measures
presented by other issuers.
Second Quarter Results
Joel Matlin, President and CEO of AlarmForce, announced��that, "For the
six months ended April 30, 2012 AlarmForce revenues increased to $22.1
million and total subscribers increased to 130,000 accounts. These are
both record results for a second quarter in the 24 years of business of
the company, reflecting a 10% annual increase in revenues and 9% annual
increase in total subscribers, year over year."
"For the six month period, the company achieved an increase of $0.9
million in gross profit, against an increase in selling and marketing
expenses of $3.7 million which primarily reflected the company's
advertising budget expenditures, and an increase in amortization
expenses of $0.4 million which reflected the growth in subscriber
equipment. The increase in selling and marketing expenses was the
result of additional advertising programs, which in aggregate increased
by $3.4 million from the comparative six months of 2011.
"After offsetting a decrease in general and administrative expenses of
$0.3 million, the net effect from development, advertising and other
growth-related expenses resulted in income before taxes of $ 0.6
million for the six months. This reflects a decrease of $2.9 million
from the comparative six months. As a result, net income decreased by
$2 million and net income per share decreased from $0.20 to $0.04 for
the six months."
"EBITDA before marketing expenses increased by $0.9 million, from $10.3
million to $11.2 million. EBITDA after marketing expenses decreased by
$2.5 million, from $5.6 million to $3.1 million, corresponding to the
effect of increases in expenses. Similarly, cash flows from operations
decreased from $3.5 million to $2.3 million, a 34% decrease over the
comparative period. After investing $2.9 million of cash in new
subscriber installations in the six month period, the company continues
to have a strong cash position and balance sheet without any borrowing
need."
"We are pleased to note that approximately 1,000 VideoRelay systems were
installed in the second quarter, doubling the 500 systems installed in
the first quarter. We expect this trend of market acceptance to
continue. With VideoRelay the subscriber enjoys the enhanced benefits
of two-way voice video and a higher level of control over home
security, all at a substantially lower cost than other home alarm
companies. With VideoRelay, we hope to deliver increases in recurring
revenues and additional subscriber growth over the next several years."
Mr. Matlin added: "We are confident of being able to meet our operating
and capital requirements in the foreseeable future from recurring cash
flows and cash resources. And we will continue to leverage the
AlarmForce brand and value proposition, offering two-way voice alarm,
personal emergency response and remote-access video systems in all our
service centres."
Dividend Policy
Mr. Matlin also announced today that the Board of Directors has adopted
a cash dividend policy and declared an initial quarterly cash dividend
of $0.025 per share. The initial quarterly cash dividend will be paid
on August 21, 2012 to all shareholders of record as of July 31, 2012.
Mr. Matlin said: "The Board expects that future cash dividends will be
paid on a quarterly basis such that the total annual dividend rate
based on the initial quarterly cash dividend will equal $0.10 per
share, which is equivalent to a dividend yield of approximately 1.1%
based on the closing price of company's common shares as of May 31,
2012. Any decision to pay future cash dividends will, however, be
subject to Board approval, and will depend on the Company's future
earnings, cash flow, financial condition and other relevant factors."
"The Board's decision to adopt the cash dividend policy reflects its
confidence in AlarmForce's long-term ability to continue generating
profits and cash flows, while sustaining a regular dividend to
shareholders. Following a period of consistent growth in subscribers
and recurring cash flows, the Board wishes that shareholders obtain an
additional opportunity to benefit from our success and operational
strength."
Mr. Matlin closed by saying: "I would like to thank our investors and
all our employees and the Board of Directors for their support and
confidence in AlarmForce."
AlarmForce provides security alarm monitoring, personal emergency
response monitoring, video surveillance and related services to
residential and commercial subscribers throughout Canada and selected
centres across the United States. AlarmForce is a leading provider of
two-way voice alarm systems in Canada. More information about the
Company's products and services can be found at www.alarmforce.com and www.videorelay.com.
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For further information:
Investors Relations Department.
Tel: 416-445-2001 ext#225
Fax: 416-445-9381
E-mail:��investorrelations@alarmforce.com
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