TORONTO, ONTARIO--(Marketwired - June 15, 2015) - AlarmForce Industries Inc. (TSX:AF) -

Second Quarter Highlights

  • Total recurring monthly revenue (RMR) increased by 9% year-over-year to $4.45 million at the end of Q2 2015, or 6% in constant currency
  • EBITDA for the second quarter increased by 6% or $0.23 million
  • Total revenue in Q2 2015 grew by 6% year-over-year, or 2% in constant currency
  • Net income for the Q2 2015 declined by 3% year-over-year
  • Diluted net income per share for Q2 2015 remained at $0.15 year-over-year

Year to Date Highlights

  • Revenue for the first half increased by 6% over the same period last year
  • Net income in the first six months declined by 5% to $3.99 million from $4.20 million during the same period in 2014
  • Diluted net income per share year-to-date 2015 declined from $0.35 to $0.34 year-over-year
  • Average revenue per new subscriber increased to $35.22 at the end of Q2, up 12% year-over-year, or 8% in constant currency
  • Average revenue per subscriber at the end of Q2 at $30.38, up 7% year-over-year, or 4% in constant currency
  • Total subscribers at the end of the first half of 2015 increased to 146,700 from 143,800 at the end of Q2 2014
Three months ended April 30 Six months ended April 30,
2015 2014 Change 2015 2014 Change
($ in thousands, except per share and subscriber amounts)
Total revenue $14,005 $13,153 6% $27,589 $26,138 6%
Recurring monthly revenue (RMR) $4,458 $4,097 9% $4,458 $4,097 9%
EBITDA* 3,960.89 3,732.24 6% $8,511 $8,416 1%
Net income $1,742 $1,787 -3% $3,994 $4,204 -5%
Shares outstanding, diluted 11,639 11,929 -2% 11,661 11,957 -2%
Diluted net income per share $0.15 $0.15 0% $0.34 $0.35 -2%
Cash flows from operations $2,728 $640 326% $5,928 $5,653 5%
Total subscribers 146,700 143,800 2% 146,700 143,800 2%
*EBITDA is a non-IFRS financial measure and is defined in the disclosure section accompanying this press release.

For the second quarter ended April 30, 2015, AlarmForce Industries reported revenues of $14.00 million. Net income fell by 3% in the second quarter year-over-year. Diluted earnings per share remained the same at $0.15 per share in the second quarter of 2015 from the same quarter of 2014.

Total revenues for the first six months of 2015 increased to $27.59 million vs. $26.13 million over the same period in 2014 or growth of 6% (2% in constant currency). Recurring monthly revenue (RMR) increased to $4.45 million at the end of Q2 2015 from $4.09 million at the end of Q2 2014, or 9% (6% in constant currency). Net income declined by 5% year to date from the same period of 2014. Year to date diluted earnings per share declined from $0.35 (2014) to $0.34 (2015) for the same six-month period year over year. Cash flow from operations in the first six months grew from $5.65 million to $5.92 million or 5%.

"During the second quarter, we continued to implement practices such as outsourcing of media buying to more effectively target marketing spend in key growth areas," said Graham Badun, newly appointed President and CEO of AlarmForce Industries Inc. "We are focused on expanding our market share through product innovations, customer service and overall operational improvements. The work that we are doing at AlarmForce today will afford greater opportunities ahead."

Other Q2 highlights

In March of 2015, the Board of Directors approved an increase in the annual dividend on common shares from $0.12 to $0.18 per share, a 50% increase, which took effect April 30th, 2015. The first quarterly dividend at this new rate of $0.045 per common share was paid on May 20, 2015. The increase in dividends reflects the Board's confidence in the strong cash position and its ability to generate profits and deliver consistent returns to the shareholders.

In April 2015, we launched Wi-Fi enabled door locks and power plugs under the AlarmForce Connect home automation services. The addition of these devices provides the subscriber greater home automation functionalities.

In the first half of 2015, the Company repurchased a total of 69,800 common shares for cancellation under the normal course issuer bid for a total cost of $735,400.

Following the end of the second quarter, Graham Badun (Former Group CEO of Brookfield Residential Property Services) was appointed new President and CEO of AlarmForce Industries.

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 measure presented by other issuers.

Contact Information:

News Media: Hugh Mansfield

Investor Relations: Chetna Kapadia
(416) 445-2001 ext. 272