IASG gains momentum in Q4 2003
ALBANY, N.Y. - Driven by Ã¢â‚¬Å“the timing of portfolio acquisitions,Ã¢â‚¬Â Integrated Alarm Services GroupÃ¢â‚¬â„¢s fourth-quarter 2003 results were up 30 percent over third quarter numbers, according to Chairman and Chief Executive Officer Tim McGinn.
Revenues for the fourth quarter, which ended Dec. 31, 2003, were $12.6 million, compared with $9.7 million for the third quarter. This helped push year-end revenues to $40.9 million, compared to $23.5 million in 2002.
Ã¢â‚¬Å“As the fourth quarter proceeded, our business gained strong momentum,Ã¢â‚¬Â McGinn said.
Another key to the increase in revenues, he said, was IASGÃ¢â‚¬â„¢s ability to meet its account acquisition goal without overpaying for monitoring contracts.
Ã¢â‚¬Å“For 2003, we exceeded our 2003 account acquisition goal and did so at purchase multiples below plan,Ã¢â‚¬Â McGinn said.
One major acquisition that contributed to IASGÃ¢â‚¬â„¢s bottom line was its purchase of Rancho Cucamonga, Calif.-based Protection Service Industries for $46 million late last year (SSN, January 2004). That acquisition, McGinn said, helped IASG broaden its reach into commercial alarm monitoring.
In addition to PSIÃ¢â‚¬â„¢s 59,000 alarm contract equivalents, IASG also acquired 77,000 accounts in Phoenix, Las Vegas, Tampa, Fla., and a number of markets in California. These accounts bring with them recurring monthly revenues of $2.3 million.
At yearÃ¢â‚¬â„¢s end, IASG reported having 119,000 contract equivalents, generating approximately $3.6 million in RMR, as well as 510,000 wholesale monitoring accounts that generate $2.1 million in RMR.
IASG reported cash on hand of $35.4 million and stockholders equity of $153.4 million. During the fourth quarter, the company retired $1.6 million in debt, leaving $66.6 million in debt and capital leases.