Protection One Announces Third Quarter Results
Security monitoring provider Protection One Inc. posted a net loss of 34 cents per share for the third quarter ended Sept. 30, reporting an increase in debt attributed to the acquisition of Integrated Alarm Services Group in April.
Protection One reported a net loss of $8.7 million on revenue of $93.5 million for the quarter, compared with a loss of $3.5 million, or 19 cents per share, on revenues of $67.6 million during the third quarter of 2006.
Adjusted EBITDA increased to $30.2 million in the quarter compared to $21.1 million in the same period in 2006.
Richard Ginsburg, Protection One’s president and CEO, says the company’s commercial accounts were doing better than residential efforts, reflecting the sluggish housing market nationwide.
“Our hard work integrating IASG is reflected in the improved adjusted EBITDA we are reporting …,” Ginsburg says. “We are on schedule merging IASG’s retail operations and most corporate accounting and financial functions have also been integrated.”
Ginsburg says the company’s retail reporting unit improved monitoring and service gross margin and created $600,000 in recurring monthly revenue (RMR) in the quarter, marking a 12 percent increase compared to the same period in 2006.
“Overall, we have successfully delivered adjusted EBITDA improvement by reducing costs even while total RMR has decreased since the merger,” he says. “Our focus now is to use our superior customer care model to improve attrition on the IASG residential account base.”
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