TORONTO – AlarmForce Industries reported revenues of $14.1 million for the third quarter ended July 31. Net income fell by 126% in the third quarter year-over-year, driven by one-time non-recurring items totaling $2.5 million. Diluted earnings per share fell 3 cents per share from 13 cents per share during the same quarter in 2014.
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Total revenues for the first nine months in 2015 increased to $41.7 million compared to $39.3 million over the same period in 2014, marking 6% growth (3% in constant currency). Recurring monthly revenue (RMR) increased to $4.5 million at the end of Q3 2015 from $4.1 million at the end of Q3 2014, a 9% increase (6% in constant currency).
Net income declined by 38% year-to-date from the same period in 2014. Year-to-date diluted earnings per share declined from 49 cents to 31 cents for the same nine-month period year-over-year. Cash flow from operations in the first nine months decreased from $8.5 million to $7.5 million, or 12% due to one-time items in the quarter, including costs related to the change in management, of $1.3 million.
The company reported total subscribers increased by 600 for the quarter from 146,700 to 147,300. The average revenue per new subscriber increased to $35.89 for the quarter, up 10% year-over-year (4% in constant currency). Average revenue per subscriber at the end of Q3 was $30.75, a 7% year-
over-year (4% in constant currency).
“During the third quarter we saw an accelerated pace of growth in our gross subscriber base in both our Alarm and PERS business lines,” AlarmForce President and CEO Graham Badun stated in a press release. “We’ve strengthened our senior management team with some great additions that position us well for future growth in the residential and commercial security industry.”
During the quarter, the company said an operational review included a detailed reassessment and analysis of accounts receivable, resulting in the identification of higher delinquent accounts that may be uncollectible. The impact of the change is largely expected to be incurred by the end of the fourth quarter, according to the company.
