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TORONTO, ONTARIO--(Marketwired - Mar 15, 2016) - AlarmForce Industries Inc. (TSX:AF) -
First Quarter Operating Highlights
|($ in thousands, except per share and subscriber amounts)|
|Recurring monthly revenue (RMR)||$||4,671||$||4,441||5||%|
|Shares outstanding, diluted||11,592||11,698||-1||%|
|Diluted net income per share||$||0.21||$||0.20||3||%|
|Cash flows from operations||$||3,023||$||3,244||-7||%|
*EBITDA is a non-IFRS financial measure and is defined in the disclosure section accompanying this press release.
AlarmForce Industries' total revenues for the first three months of 2016 increased to $14.5 million vs. $13.6 million over the same period in 2015, or growth of 7% (2% in constant currency). Recurring Monthly Revenue (RMR) increased to $4.6 million at the end of Q1 2016 from $4.4 million at the end of Q1 2015, or 5% (2% in constant currency). Gross profit totaled $10.2 million compared to $10.4 million or (-2%) over the same period in 2015. Net income grew year to date from the same period of 2015 to $2.4 million or 4% growth. These changes were driven by the decrease in selling and marketing expenses, a decrease in amortization expenses, which were partially offset by increases in general and administrative expenses. Diluted earnings per share increased to $0.21 compared to $0.20 in the same period of 2015.
"During the first quarter we saw a continued redeployment of our advertising efforts in the United States into more capital efficient markets and we will continue to monitor these closely to ensure that we meet or exceed our ROI expectations," said Graham Badun, President and CEO of AlarmForce Industries Inc. "We are well positioned for the balance of the year and remain bullish on the future of the home security market in Canada. In the US, we will continue to monitor our performance for indications of improvement to determine the appropriate level of investment in the markets where we are actively marketing to new customers."
In the first three months of the year the Company returned $0.8 million to shareholders through the normal course issuer bid and dividends paid.
Subsequent to the first quarter, the company launched its new bundled pricing and services providing the customer with pre-packaged services that include tiered pricing and service options. "We are excited by this new product offering as it clarifies our value proposition and offers extended value to both new and existing customers," said Graham Badun.
The company also settled a pending lawsuit with a former employee and member of management for an undisclosed amount. While the settlement took place after the quarter ended, the income statement impact is reflected in our Q1 financial results.
AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and the United States. More information about the company's products and services can be found at www.alarmforce.com.
EBITDA is defined as earnings before interest expenses, income taxes, depreciation and amortization. EBITDA is a key 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 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 measure presented by other issuers.
This document contains forward-looking statements which reflect management's current expectations about future events and financial and operating performance of the Company. Words such as "may", "will", "should", "could", "anticipate", "believe," "expect, "intend", "plan", "potential", "continue" and similar expressions have been used to identify these forward-looking statements. Forward-looking statements contained in this document may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. These statements reflect management's current views with respect to future events or conditions, including prospective financial performance, financial position, and predictions of future actions, plans or strategies. Certain material factors and assumptions were applied in drawing our conclusions and making these forward looking statements. These statements reflect management's current views, beliefs and assumptions and are subject to certain inherent risks and uncertainties.