AlarmForce posts record revenue increase for 2008



    TORONTO, Jan. 27 /CNW/ - TSX Listed - Joel Matlin, President and CEO is
pleased to announce annual results for the year ended October 31, 2008.

    
                                      2008           2007             Change
                               (year ended)   (year ended)   (year over year)
                                         $              $
    -------------------------------------------------------------------------

    Revenue                     29,942,000     25,136,000               +19%
    Gross profit                23,346,000     20,005,000               +17%
    Operating cash flow          6,812,000      2,737,000              +149%
    Subscriber base                 91,000         79,000               +15%
    EBITDA(*)                    7,218,000      4,917,000               +47%
    Income before taxes          3,885,000      2,105,000               +85%
    Net income                   2,610,000      1,280,000              +104%

    Net income per share              0.22           0.11              +100%
    Diluted Net income per share      0.22           0.11              +100%

    Debt per subscriber(xx)             16             22

    (*)  Earnings before interest, taxes, depreciation and amortization as
         reconciled to GAAP earnings in management's discussion and analysis
         of annual results
    (xx) Debt consists of building loan and revolving term loans
    

    Joel Matlin announced that AlarmForce Industries Inc. closed its fiscal
year with record annual installations of 20,700 new subscribers for the year
ended October 31, 2008. Mr. Matlin said, "Revenues in 2008 increased to
approximately $30 million, which represents a record annual increase of $4.8
million or 19% from 2007, while our earnings per share increased from 11 cents
per share to 22 cents per share in 2008, making it the most successful year
for AlarmForce in our 20 years of business. The total number of AlarmForce
subscribers increased by 15% to 91,000 accounts at the end of the fiscal year.
As a result of the growth in subscribers and monthly recurring revenues, our
EBITDA increased to $7.2 million, up by 47%, while net income increased by
104% to $2.6 million.
    Mr. Matlin went on to add: "We are particularly gratified with the
results in 2008 during which, as we all know, a steep financial crisis in the
US began to spread to the rest of the globe. In our US market, which stretches
across the three States of North Carolina, Ohio and Georgia, we continued to
expand our subscriber base, despite the financial turmoil. We are optimistic
that the subscriber base will continue to increase, at a lower cost per new
account relative to the industry average as our monthly subscriber revenues
are expected to grow without adding to debt. I believe that this bodes very
well for the share price in the long run, given that companies in the security
industry are typically valued as a multiple of recurring revenue."
    Mr. Matlin ended by saying: "We thank our investors and employees who
have supported us in building the best known brand and value proposition for
our clients. We look forward to strong subscriber account expansion in the
next few years, despite a softening economy in which leveraged peers are
facing difficulty sustaining their businesses. I believe that, given our track
record, the foreseeable future promises well for AlarmForce."

    AlarmForce Industries Inc. is Canada's largest manufacturer and installer
of two-way voice home alarm systems with offices serving all major markets in
Canada and strategically 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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