AlarmForce posts record revenue in First Quarter



    Common shares traded on the Toronto Stock Exchange
    Trading symbol: AF

    TORONTO, March 6 /CNW/ - Joel Matlin, President and CEO, is pleased to
announce results for the first quarter ended January 31, 2008:

    
    -------------------------------------------------------------------------
                       January 31, 2008  January 31, 2007        Change

                       (3 months ended)  (3 months ended)  (over same period)
                       ----------------  ----------------  ------------------

    Revenue                 $7,098,867        $5,847,920                 21%
    Income before
     income taxes           $1,060,071          $901,101                 18%
    Net income                $680,071          $566,101                 20%

    Cash flow from
     operations
     excluding
     working capital        $1,230,507        $1,195,437                  3%

    Cash flow from
     operations             $1,368,806          $274,219                400%

    EBITDA                  $1,836,173        $1,559,170                 18%
    EBITDA/share                 $0.15             $0.13

    EBITDA before
     marketing
     expenditure            $3,841,760        $3,176,617                 21%

    Basic Net
     income/share                $0.06             $0.05
    Diluted Net
     income/share                $0.06             $0.05
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    

    (*) EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and
    Amortization) is a key measure in the security industry and should not be
    interpreted as GAAP)

    Mr. Matlin announced that: "AlarmForce closed the first quarter of 2008
with a total subscriber base of 82,600 accounts, posting a new record for
quarterly revenue and total subscriber accounts. Total revenues for the three
months ended January 31, 2008 increased to $7,098,000, a 21% increase from the
comparative three-month period in 2007, while net income increased to $680,000
representing a 20% increase. The annualized increase in subscriber accounts
was 20%.
    Exciting new opportunities lie ahead of us as we continue to grow, using
our twenty years experience in the alarm industry as the leading manufacturer
of wireless alarm systems. We will continue to focus on increasing our
subscriber account base and recurring revenues. Cash flows from operations are
being reinvested in order to maximize AlarmForce's brand development and
marketing programs. We continue to invest more in marketing, based on the
confidence we have in our solid track record of generating new subscribers.
The Company is continuing to increase operating profit margins as we expand
brand recognition and economies of scale.
    EBITDA increased to $1,836,000 for the quarter, up by 18% from the same
quarter last year, which is calculated after expensing our marketing costs.
The Company's total selling expenses increased by 12% from the same
three-month period in 2007, reflecting the increase in marketing costs. This
is one of the key success factors driving our engine of organic growth, and
continues to generate new subscriber accounts in Canada and the United States.
Excluding the marketing expenses, EBITDA increased to $3,842,000 up by 20%
from the same period last year.
    Cash flows from operations have increased due to the increase in
recurring revenues from subscriber accounts. Excluding working capital and
investment in growth, operating cash flow increased by 3% from the same
three-month period in 2007, while net operating cash flow increased by 400%
mainly due to timing differences in income tax installments.
    "Our outlook is very optimistic for the remainder of 2008. AlarmCare, our
latest product, is a 24-hour personal emergency response system which
AlarmForce has commenced manufacturing for distribution. This product adds an
excellent potential for growth in our Canadian and US markets, since one of
the fastest growing subscriber segments is that of people approaching
retirement. In addition, the wireless nature of our systems allows for very
effective control over aspects of customer service such as installation,
recovery and relocation. As a result, we expect incremental increases in gross
margins and net income from AlarmCare.
    Mr. Matlin added that: "The addition of AlarmCare subscribers to our
client base is key to our goal of expanding our base of recurring monitoring
revenues, through strategic analysis of mass market technology and demographic
trends. We will continue to research opportunities that offer a unique fit for
our business model, and potential to offer added value to consumers at an
affordable price."

    AlarmForce is Canada's largest manufacturer and installer of two-way
voice home alarms systems and line-cut protection. The Company has offices
serving all major markets in Canada and selected markets in the United States.





For further information:

For further information: Investors Relations Dept., Tel: (416) 445-2001
ext No. 225, Fax: (416) 445-9381, E-mail: investor@alarmforce.com

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AlarmForce Industries Inc.

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