TORONTO, ONTARIO--(Marketwired - March 12, 2015) - AlarmForce Industries Inc. (TSX:AF), Canada's largest manufacturer and installer of live two-way voice home alarm systems, is pleased to announce results for the three months ended January 31, 2015:

Three months ended January 31,
2015 2014 Change
($ in thousands, except per share and subscriber amounts)
Total revenue $ 13,584 $ 12,985 5 %
Recurring monthly revenue (RMR) $ 4,330 $ 4,038 7 %
EBITDA* $ 4,550 $ 4,683 -3 %
Adjusted EBITDA* (before marketing expenses) $ 7,866 $ 7,439 6 %
Adjusted EBITDA* per diluted share $ 0.67 $ 0.62 8 %
Net income $ 2,252 $ 2,417 -7 %
Shares outstanding, diluted 11,698 11,978 -2 %
Diluted net income per share $ 0.19 $ 0.20 -4 %
Cash flows from operations $ 3,200 $ 5,013 -36 %
Total subscribers 145,400 142,400 2 %
*EBITDA is a non-IFRS financial measure and is defined in the disclosure section accompanying this press release.

AlarmForce closed the first quarter ended January 31, 2015 with revenue of $13.6 million, a 5% increase (2% in constant currency) from the comparable quarter of 2014. Recurring Monthly Revenue (RMR) increased by 7% due to positive organic subscriber growth and the increase in take-rates of enhanced service offerings, principally CellWave and AlarmForce Connect. Canadian RMR increased by 3% and US RMR increased by 12%. The average revenue per subscriber increased to $29.79, up 5% from $28.35 in Q1 of 2014. The average revenue per new subscriber grew to $34.30, an increase of 11% over the comparable quarter of 2014. We will continue to drive average revenue per new subscriber by offering features and services that will increase the value of our service offering.

EBITDA decreased by $0.1 million to $4.6 million, a decrease of 3% from the comparable quarter of 2014. Excluding the impact of marketing expenses, which represent a charge against operating income, adjusted EBITDA increased by 6% from $7.4 million to $7.9 million. Net income decreased by 7% to $2.3 million for the quarter, with diluted earnings per share of $0.19. Costs incurred in the first quarter of 2015 to transition our media buying ongoing media agency fees related to the media planning and buying and the increase in the US marketing spend from the decline in the foreign exchange rate of the Canadian dollar have put downward pressure on the margins and net income in Q1. However, we strongly believe our increased marketing expenditure will position us to better target our media and purchase media more effectively in the future. We expect this transition, combined with our creative work, to translate into subscriber and RMR growth.

Cash flows from operations decreased to $3.2 million from $5.0 million for the quarter. However, cash flows from operations excluding working capital adjustments, which are temporary in nature, increased from $3.8 million to $3.9 million, an increase of $0.1 million or 3%. We expect to continue generating strong cash flows from operations in 2015 and fund all growth and product development from internal cash flows. The transition to media agencies, the costs incurred for new product developments, and expenses related to the second generation video camera have put downward pressure on cash flows.

Under the Company's share buyback program, shares were repurchased by the Company for cancellation, resulting in a 2% decrease in total shares outstanding from the comparable quarter of 2014.

The Company is currently beta testing the integration of door locks and power plugs with the AlarmVoice panel and expects to commence installing these devices in April. The addition of these devices will allow the user to lock/unlock doors and control any electrical device plugged into the integrated power plug such as lights or appliances from any smart phone or web enabled device. Functionality will include locking and unlocking doors remotely or turning the power plug on/off when the alarm system is armed/disarmed.

The Company also announces today that the Board of Directors have approved an increase in the annual cash dividend on common shares from $0.12 to $0.18 per share commencing the quarter ended April 30, 2015. The Board's decision to increase the dividend reflects the Company's strong cash position and confidence in AlarmForce's ability to continue generating profits and cash flows. This is in line with our strategy to deliver consistent returns to our shareholders and give them an additional opportunity to benefit from our operational strength.

Mr. Anthony Pizzonia, President and CEO, stated that "In the first quarter of 2015, we launched a fall sensor with our exclusive AlarmCare system as part of our personal emergency response offering and are excited by the initial 47% adoption rate. The sensor is the smallest in the market, designed to detect the difference between normal activity and an actual fall. The AlarmCare system is available exclusively to our subscribers in Canada as well as in our installing centers in the US. We will continue to accelerate our efforts to innovate and enhance the customer experience through our various service offerings that will engage subscribers to remain brand loyal.

"In 2015 and future years, we expect to realize the benefits of the resources that we have deployed towards new product development, product and service enhancements and customer retention. As our value proposition and core competitive strengths continue to support subscriber growth, we are continuing to focus on customer retention and quality and consistent customer service that will grow RMR."

About AlarmForce

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


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 measures presented by other issuers.

Contact Information:

AlarmForce Industries Inc.
Chetna Kapadia
(416) 445-2001 ext. 272
(416) 445-9381 (FAX)