AlarmForce Reports Q2 Financial Results
EBITDA for the second quarter increased by 9% or $343,234 to $4.3 million year-over year driven by lower marketing expenditures.
TORONTO – AlarmForce Industries (TSE: AF), based here, on Tuesday reported total revenues of $14.5 million for its second quarter, up from $14 million compared to the same period last year or growth of 3%.
Recurring monthly revenue (RMR) of $4.5 million at the end of Q2 2016 was flat to both Q2 and Q4 of 2015. Gross profit totaled $9.9 million compared to $10.3 million, a decline of 4% over the same period in 2015.
Net income grew 6% in the second quarter from the same period of 2015 to $1.8 million. The changes were driven by the decrease in selling and marketing expenses, partially offset by an increase in amortization and general and administrative expenses, the company reported. Diluted earnings per share increased to 16 cents compared to 15 cents in the same period last year.
Year to date revenues totaled $29 million (up 5%), gross profit totaled $20.1 million (down 3%), EBITDA grew to $8.6 million (up 1%), net income totaled $4.2 million (up 5%), and diluted earnings per share grew to 36 cents, up from 34 cents for the same period in 2015.
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The company reported its average revenue per subscriber at the end of Q2 at $31.37, up 3% year- over-year or 2% in constant currency. Average revenue per new user at the end of Q2 was $36.34, up 2% over the same period in 2015 or 1% in constant currency.
In a prepared statement, AlarmForce President and CEO Graham Badun said the company continues to achieve increased take-rates among enhanced services as it looks to boost its value proposition to both new and existing customers.
“During the second quarter we reduced marketing expenditures across our U.S. footprint and in advance of our launch of third-party product planned for late summer,” Badun said. “We are executing on our more focused strategy, including enhancing our information technology infrastructure in preparation for our launch of new third-party products and our refreshed brand which will position the company well to take advantage of the opportunities in the home security and personal emergency response markets.”
In the first six months of the year, the company returned $1 million to shareholders through dividends paid.
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