First quarter results for Integrated Alarm Services Group Inc. (NASDAQ: IASG) were $24.1 million, down 1 percent compared tothe same period in 2005, down 6 percent from fourth quarter. As of the first quarter ending March 31, net loss was reported to be $3.5 million, or 14 cents per share, compared to a net loss of $2.6 million, or 10 cents per share in the first quarter of 2005, along with a net loss of $8 million, or 32 cents per share, in fourth quarter 2005.
According to IASG, achievements included an annualized first quarter attrition of 10.6 percent, a 30-percent drop from the 15.3 percent in fourth quarter 2005. There also was a margin of 60.9 percent in the first quarter, which was a 13-percent improvement vs.the 53.7 percent recorded in the fourth quarter of last year.
Timothy McGinn, chairman and CEO, said, “IASG made significant operational progress in the first quarter 2006 vs. the fourth quarter of 2005. Our operational performance, particularly on the expense management side was consistent with the guidance we offered in the 2005 year-end conference call. Attrition results also showed excellent progress in the first quarter. However, as I commented in the past, one should not put too much emphasis on any single period. The trend is important and the trend is clearly in the correct direction. The principle disappointment in the quarter was revenue growth.”
At the end of the first quarter, IASG reported $19.6 million in cash, $18.7 million of secured notes receivable from dealers and stockholders’ equity of $116.7 million. By contrast, the firm had $125.7 million of debt and capital leases, ending the first quarter with a net debt to equity ratio of 91 to 1. According to IASG, the firm also had no outstanding balance on the $30 million senior credit facility at the end of the first quarter.
