TORONTO – AlarmForce Industries (TSE: AF), based here, on Friday reported total revenues for the first three months of 2017 were $13.9 million vs. $14.2 million over the same period in 2016, a decrease of 3%.
Recurring monthly revenue (RMR) remained flat at $4.45 million during the period. Gross profit totaled $9.1 million compared to $9.9 million or a decline of 8% over the same period in 2016. Net income decreased year-over-year to $1.045 million from $2.03 million.
Total subscribers declined during Q1 to 134,743, reflecting the change in cancellation practices related to the company’s 2016 restatement, lower advertising expenditures and a focus on higher quality subscribers in the Canadian market.
The average revenue per new subscriber at the end of Q1 was $38.32, an increase of 5% year-over-year. In Canada, average revenue per new alarm subscriber grew to $38.96, up 17.7% in Q1 compared to the same period last year. This followed the introduction of new products and bundled pricing, according to the company.
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The financial results were driven lower in part to the incurrence of one-time costs related to consumer contract and employment classification issues totaling $900,000. Quarterly diluted earnings per share decreased to 9 cents compared to 18 cents in the same period the prior year.
“At the end of the first quarter, we completed the review process and adjoining restatements fulfilling our filing requirements,” states Graham Badun, president and CEO of AlarmForce. “Our ongoing efforts to improve the underlying quality of our subscriber base through a focus on the Canadian markets has started to yield encouraging results. This can be seen in our Canadian alarm RMR attrition rate, which is less than 5% and the 17.7% increase in average revenue per new Canadian alarm user versus the same period last year.”
