Security Associates Intl. Inc. (SAI) reports revenue for the second quarter ended June 30 was just less than $5.6 million, with an operating unit margin of $1.45 million and a net loss of $1.3 million (or 18 cents per share). SAI contends that its second-quarter financial results are not comparable to the prior year due to the fact they reflect the sale of the company’s retail alarm monitoring contracts as of June 30, 1999, and because its strategy is now focused on central station operations. Following the sale of these contracts, the company believes the most relevant measures of financial performance are net revenue, operating unit margin and cash flow generated by operations. Specifically, according to the company, operating unit margin measures SAI’s ability to support growth initiatives through cash flow and credit availability.

For the six-month period ended June 30, 2000, the company’s revenue was more than $11.2 million, with an operating unit margin of $2.9 million and a net loss of $2.6 million (or 36 cents per share). SAI President James Brannen says that the company’s proposed acquisition of King Central and its subsidiary, Monital Signal Corp., are proceeding as planned. The “definitive purchase agreement” represents “a transaction that will almost double the size of SAI,” contends Brannen.

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