Protection One Inc. reported this week its losses widened to $4.8 million in the first quarter as it lost one of its largest monitoring customers – Provo, Utah-based APX Alarm – and recorded less retail and multifamily unit business.
The loss of 19 cents per share compares to a loss of $2.8 million, or 11 cents per share, in the same quarter a year ago. Revenues fell 5 percent to $88.3 million.
Protection One said that as of Nov. 1, it was no longer providing monitoring services for APX Alarm at its facility in South St. Paul, Minn. Those services were taken over by APX, which had provided Protection One with $11 million in revenues last year. The loss was partially offset by growing equipment sales to commercial customers.
The company announced in April that it had entered into an agreement to be acquired by Chicago-based private equity firm GTCR. The total purchase price, including the refinancing of Protection One’s debt, will be about $828 million.
In its earnings release Thursday, the company said Protection Acquisition Sub Inc., a subsidiary of GTCR-affiliate Protection Holdings LLC, on May 3 commenced a tender offer to buy all outstanding common stock for $15.50 per share.
