Delivers growth in revenue, operating profit, earnings per share,
and net subscribers Monthly recurring revenue ('MRR') rose 8.4
percent from a year ago to $42.6 million Diluted EPS of $0.36, up
$0.02 from prior year, includes $0.03 charge for new brand
development costs Ending subscribers increased 5.2 percent compared
to a year ago Second quarter annualized customer disconnect rate
was 7.8 percent IRVING, Texas, Aug. 5 /PRNewswire-FirstCall/ --
Brink's Home Security Holdings, Inc. (NYSE:CFL), a premier provider
of monitored security services in North America now operating under
the brand Broadview Security, today reported financial results for
the second quarter ended June 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20090708/DA43773LOGO) "I am
pleased with our continued organic growth in revenue, operating
profit, and our customer base in a challenging economic climate,"
said president and chief executive, Bob Allen. He continued, "We
recently launched our new brand, Broadview Security, and are
encouraged by the positive reception from both existing and
prospective customers. We are excited about the future with our new
brand and look forward to building upon the heritage of success
that we have demonstrated over the last 26 years. For the full
year, our expectations remain unchanged: we expect growth in our
monthly recurring revenue, GAAP operating profit, and subscriber
base, despite pressure on the customer disconnect rate." Second
Quarter Results Revenue for the second quarter of 2009 was $140.0
million, representing an increase of 4.6 percent from $133.9
million recorded in the same period one year ago. The increase in
revenue was primarily due to continued growth in the subscriber
base, up 5.2 percent from a year ago, and higher average monitoring
rates, partially offset by a decline in revenue in our new
construction business. Also, the comparison is impacted by a $1.8
million non-cash accounting correction that increased revenue in
the second quarter of 2008. Operating profit was $27.5 million, an
increase of 8.7 percent from $25.3 million in the second quarter of
2008. Second quarter 2009 operating profit margin was 19.6 percent,
up from 18.9 percent in the comparable quarter in 2008. The
improvement in operating profit was due primarily to the increase
in size of the subscriber base and a reduction in royalty rate
charged to the Company by its former parent. (Historically, the
royalty rate had been approximately 7 percent of revenue, but
decreased to approximately 1.25 percent of revenue beginning
November 1, 2008.) Operating profit in the second quarter was
reduced by $2.2 million of expense associated with the Company's
new brand initiative. The Company also incurred increased expense
in its base level marketing program in the second quarter to build
momentum in sales activities preceding the brand launch. The
increase over the comparable quarter approximated $1.4 million, or
$0.02 per diluted share. The comparability of the two quarters is
also affected by the previously referenced non-cash accounting
correction which increased second quarter 2008 operating income by
$2.4 million. Net income for the second quarter of 2009 was $16.6
million and diluted GAAP earnings per share were $0.36,
representing an increase of 7.1 percent from net income of $15.5
million and pro forma earnings per share of $0.34 in the same
period last year. (The terminology 'pro forma earnings per share'
is used in conjunction with the financial results for the three and
six months ended June 30, 2008 since the Company was not public at
that time and the fully diluted number of shares outstanding are,
therefore, calculated on a 'pro forma' basis.) The increase in net
income was primarily due to the lower royalty expense incurred in
the second quarter of 2009 and, to a lesser extent, the profit
impact of the larger subscriber base, partially offset by the
previously referenced new brand development expenses and the effect
of the accounting correction on 2008 results. Brand development
expenses reduced net income by $1.4 million, or $0.03 per share, in
the second quarter of 2009. The accounting correction increased
2008 net income by $1.5 million, or $0.03 per share, in the second
quarter 2008. Non-GAAP Information Non-GAAP Financial Results In
the table below, non-GAAP financial results for the three and six
months ended June 30, 2009 have been adjusted to exclude the new
brand development expenses incurred in the second quarter of 2009.
The three months and six months ended June 30, 2008 non-GAAP
financial results were adjusted to reflect the current royalty rate
of 1.25%. A complete reconciliation of these non-GAAP figures can
be found in the attached schedules. Three Months Ended Six Months
Ended (In millions, except June 30, June 30, per share data)
2009(b),(c) 2008(a),(c) 2009(b),(c) 2008(a),(c) Non-GAAP Operating
Profit $29.7 $32.8 $55.9 $61.1 Non-GAAP Net Income $18.0 $20.1
$34.2 $37.2 Non-GAAP Earnings per share - diluted $0.39 $0.44 $0.74
$0.82 (a) Historically, the Company paid its former parent a
royalty of 7 percent on revenues in the United States and 3 percent
on revenues in Canada. On November 1, 2008, the royalty rate
changed to approximately 1.25 percent of revenues and will continue
to be calculated on that basis until the earlier of October 31,
2011, or when the Company ceases the use of the Brink's brand name
and terminates its brand license agreement. The non-GAAP financial
results above have been adjusted to calculate the results as if the
royalty rate had been approximately 1.25 percent of revenue for all
periods presented. The adjustment to operating profit for the three
and six months ended June 30, 2008 is $7.5 million and $14.6
million, respectively. The adjustment to net income for the three
and six months is $4.6 million, or $0.10 per share earnings on a
diluted basis, and $8.8 million, or $0.19 per share earnings on a
diluted basis, respectively. (b) New brand development expenses for
the three and six months ended June 30, 2009 were $2.2 million, or
$0.03 per share on a diluted basis, and $3.3 million, or $0.05 per
share on a diluted basis, respectively. The non-GAAP figures above
have been adjusted to exclude the effect of these expenses. (c) In
2008, the non-cash accounting correction increased operating profit
by $2.4 million, net income by $1.5 million, and earnings per share
by $0.03 for the three and six months ended June 30, 2008. In 2009,
the non-cash litigation charges for the three and six months ended
June 30, 2009 were $0.5 million, or $0.01 per share earnings on a
diluted basis, and $4.5 million, or $0.06 per share earnings on a
diluted basis, respectively. The non-GAAP figures above have not
been adjusted to exclude the effect of these items. Metrics Monthly
recurring revenue ("MRR") rose 8.4 percent during the quarter to
$42.6 million, primarily driven by a 5.2 percent increase in ending
subscribers and a 3.0 percent increase in monthly recurring revenue
per ending subscriber. Adjusted EBITDA from recurring services for
the second quarter rose to $84.0 million compared to $80.7 million
in the year-ago quarter. Adjusted EBITDA from recurring services
for the second quarter was reduced $2.2 million by the
aforementioned brand development expenses. Please see the attached
schedules for a more detailed explanation of these non-GAAP
measures and a reconciliation of these non-GAAP measures to their
closest GAAP counterparts. Other Information The Company ended the
quarter with net subscriber additions of approximately 16,700 as
compared to approximately 21,900 in the same quarter last year.
Approximately 42,700 new customer systems were installed during the
second quarter of 2009 compared to approximately 44,200
installations in the same period one year ago. The lower volume of
installations continues to reflect the weakness in the overall
economy and housing market. The annualized disconnect rate for the
second quarter was 7.8 percent, up from 7.1 percent in the prior
year. The increase is the result of more customers requesting
termination of service and an increase in financial write offs of
customer accounts. Customers continue to cite household financial
pressure as a major reason for terminating service. The trailing
twelve month disconnect rate at the end of the second quarter was
7.9 percent, up from 6.7 percent in the prior year. The effective
income tax rate for the second quarter was 39.2 percent, compared
to 38.2 percent in the prior year period. Capital expenditures
totaled $45.9 million in the second quarter of 2009 compared to
$44.3 million in the comparable quarter of the prior year. As of
June 30, 2009, cash and cash equivalents totaled $103.2 million
compared to $83.0 million at March 31, 2009. The Company has no
long-term debt and has not borrowed on its credit facility. The
Company launched its new brand, Broadview Security, on June 30,
2009, and is progressing with its plan to market the new brand and
build brand recognition. For the full year 2009, the Company
expects to spend approximately $25 million for the development,
marketing and conversion costs of the new brand. The Company spent
$1.1 million in the first quarter of 2009 and $2.2 million in the
second quarter. Spending in the second half of 2009 will vary based
upon the reception and awareness of the new brand. The Company
currently expects to spend between $9 million and $12 million in
each of the third and fourth quarters. The incremental spending
associated with the new brand is anticipated to be funded using
cash on hand and cash generated from operations. Financial Outlook
For full year 2009, the Company continues to expect revenue growth
to be in the mid to upper single digit range, driven by mid single
digit growth in the subscriber base. The Company expects growth in
GAAP operating profit. The full year disconnect rate is expected to
range between 7.8 percent and 8.3 percent. Conference Call At 10:00
a.m. CT (11:00 a.m. ET) on Wednesday August 5, 2009, the Company
will host a conference call to discuss second quarter 2009 results.
Interested parties can listen to the conference call by dialing
888-680-0860 (domestic) or 617-213-4852 (international) using pass
code 75120678, or via live webcast at
http://www.investors.broadviewsecurity.com/ under the 'Investor
Information' tab. Please dial-in at least five minutes prior to the
start of the call. Dial-in replay will be available through August
19, 2009 by calling 888-286-8010 (domestic) or 617-801-6888
(international) using the replay pass code 26009900. A webcast
replay will also be available at
http://www.investors.broadviewsecurity.com/. Forward Looking
Statements This press release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") (which Sections were adopted as part
of the Private Securities Litigation Reform Act of 1995).
Statements preceded by, followed by or that otherwise include the
words "believe," "anticipate," "estimate," "expect," "intend,"
"plan," "project," "prospects," "outlook," and similar words or
expressions, or future or conditional verbs such as "will,"
"should," "would," "may," and "could" are generally forward-looking
in nature and not historical facts. These forward looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements to be materially different from any anticipated
results, performance or achievements. We disclaim any intention to,
and undertake no obligation to, revise any forward-looking
statements, whether as a result of new information, a future event,
or otherwise. These risks, uncertainties and contingencies, many of
which are beyond our control, include, but are not limited to risks
inherent in our Spin-off from our former parent corporation,
including increased costs and reduced profitability associated with
operating as an independent company, the demand for our products
and services, the ability to identify and execute further cost and
operational improvements and efficiencies in our core business, the
actions of competitors, our ability to successfully build and
market our new brand, our ability to identify strategic
opportunities and integrate them successfully, our ability to
maintain subscriber growth, the number of household moves, the
level of home sales or new home construction, potential instability
in housing credit markets, our estimated reconnection experience,
our ability to cost-effectively develop or incorporate new systems
or technology in a timely manner, our ability to balance the cost
of acquiring customers with the profit from serving existing
customers, our ability to keep disconnect rates relatively low, the
availability and cost of capital, and general business conditions.
For additional risks and uncertainties that could impact our
forward-looking statements, please see the Company's Annual Report
on Form 10-K for the year ended December 31, 2008, including but
not limited to the discussion under "Risk Factors" therein, filed
with the SEC, which you may view at http://www.sec.gov/. About
Brink's Home Security Holdings, Inc. Brink's Home Security
Holdings, Inc. (NYSE:CFL), operating as Broadview Security,
headquartered in Irving, Texas, is one of the premier providers of
security system monitoring services for residential and commercial
properties in North America. The Company operates throughout the
United States and Western Canada and services over 1.3 million
customers. For more information, please visit
http://www.broadviewsecurity.com/ or
http://www.brinkshomesecurityholdings.com/. The Company spun-off as
an independent publicly-traded company on October 31, 2008 and
began trading on the New York Stock Exchange on November 3, 2008
under the symbol "CFL," which reflects the Company's mission
statement of creating "Customers for Life". BRINK'S HOME SECURITY
HOLDINGS, INC. and subsidiaries Condensed Consolidated Statements
of Income (Unaudited) Three Months Ended Six Months Ended (In
millions, except June 30, June 30, per share amounts) 2009 2008
2009 2008 Revenues $140.0 133.9 276.0 261.7 Expenses: Cost of
revenues (a) 67.9 72.9 133.1 142.8 Selling, general and
administrative expenses 45.4 36.1 90.9 72.8 Total expenses 113.3
109.0 224.0 215.6 Other operating income, net 0.8 0.4 0.6 0.4
Operating profit 27.5 25.3 52.6 46.5 Interest expense, net 0.2 0.2
0.1 0.4 Income before income taxes 27.3 25.1 52.5 46.1 Provision
for income taxes 10.7 9.6 20.7 17.8 Net income $16.6 15.5 31.8 28.3
Earnings per common share (b): Basic $0.36 0.34 0.69 0.62 Diluted
0.36 0.34 0.69 0.62 Weighted-average common shares Outstanding (b)
: Basic 45.8 45.8 45.8 45.8 Diluted 46.0 45.9 45.9 45.9 (a) Cost of
Revenues includes royalty expense charged to the Company by its
former parent company for use of the Brink's brand name. The rate
utilized for fiscal 2008 for the months January through October was
a rate of 7 percent of revenues in the United States and 3 percent
of revenues outside the United States. However, for the months of
November and December 2008, the rate utilized was approximately
1.25 percent of revenues for both within and outside of the United
States. Similarly, the rate used for the first and second quarters
of 2009 was approximately 1.25 percent of revenues and will
continue to be approximately 1.25 percent until the earlier of
October 31, 2011 or when the Company ceases the active use of the
Brink's brand name. (b) For the period ended June 30, 2009, basic
earnings per share ("EPS") is computed by dividing net income by
the weighted average number of common shares outstanding for the
period ended June 30, 2009. Diluted EPS is calculated in a similar
manner, but includes the dilutive effect of stock options and
restricted stock units outstanding as of June 30, 2009. Basic and
diluted earnings per share for the period ended June 30, 2008 were
computed on a pro forma basis using the average number of shares of
the Company's common stock outstanding from October 31, 2008 to
December 31, 2008. The number of diluted shares used in the
calculation is based on the number of shares of the Company's
common stock outstanding plus the estimated potential dilution that
could have occurred if options and restricted stock units granted
under the Company's equity-based compensation arrangements were
exercised or converted into the Company's common stock. BRINK'S
HOME SECURITY HOLDINGS, INC. and subsidiaries Supplemental
Financial Information (Unaudited) Three Months Ended Six Months
Ended June 30, June 30, 2009 2008 2009 2008 ($in Millions, except
subscriber and disconnect data) Profit from recurring services
$55.4 51.0 106.9 97.9 Investment in new subscribers (27.9) (25.7)
(54.3) (51.4) Operating profit $27.5 25.3 52.6 46.5 Monthly
recurring revenues (a) 42.6 39.3 Adjusted EBITDA from recurring
services (a),(b) $84.0 80.7 162.4 157.7 Depreciation and
amortization $22.6 21.8 44.8 42.4 Capital expenditures $45.9 44.3
93.1 90.1 Other cash flow information: Impairment charges from
subscriber disconnects $15.8 12.8 29.8 24.7 Amortization of
deferred revenue (9.8) (11.4) (19.1) (20.0) Deferral of subscriber
acquisition costs (current year payments) (5.6) (5.8) (11.1) (12.1)
Deferral of revenue from new subscribers (current year receipts)
10.3 11.6 20.6 23.6 Number of subscribers (in thousands): Beginning
of period 1,321.3 1,249.6 1,301.6 1,223.9 Installations 42.7 44.2
85.7 88.8 Disconnects (26.0) (22.3) (49.3) (41.2) End of period
1,338.0 1,271.5 1,338.0 1,271.5 Average number of subscribers
1,330.9 1,261.4 1,320.9 1,248.9 Disconnect rates: Expressed as an
annualized percentage: 7.8% 7.1% 7.5% 6.6% Annualized percentage
excluding multi-family disconnects (c): 7.8% 6.8% 7.4% 6.4%
Trailing twelve month disconnect rate (d): 7.9% 6.7% (a) See
"Non-GAAP Reconciliations" below. (b) Adjusted EBITDA from
recurring services as presented is adjusted for the change in the
royalty rate (see Non-GAAP reconciliation in attached schedules).
For the three months and six months ended June 30, 2009, Adjusted
EBITDA from recurring services includes the effect of non-cash
litigation charges (in the Non-GAAP reconciliation section, see
footnote (b) in the table reconciling Adjusted EBITDA from
recurring services to operating profit.) (c) Multi-family
disconnects do not have a material impact on the income statement
(d) The trailing twelve month disconnect rate includes the impact
of multi-family disconnects. Reconciliation of Non-GAAP Financial
Measures to Comparable U.S. GAAP Measures (Unaudited) Pursuant to
the requirements of Regulation G, the Company has provided a
reconciliation of each non-GAAP financial measure used in this
earnings release and related conference call, webcast or slide
presentation to the most directly comparable GAAP financial
measure. Certain of these measures differ from GAAP in that they
exclude certain amounts of royalty expense incurred by the Company
on a historical basis. Historically, the Company paid its former
parent company a royalty of 7% on revenues in the United States and
3% on revenues in Canada. On November 1, 2008, the royalty rate
changed to approximately 1.25% of revenues and will continue to be
calculated on that basis until the earlier of October 31, 2011 or
when the Company ceases the active use of the "Brink's" brand name.
In deriving the non-GAAP financial measures, the historical royalty
rate was calculated using a rate of approximately 1.25% and
adjusting for the related tax effect. Additionally, for the second
quarter and year-to-date 2009, the Company derived non-GAAP
measures by adjusting for new brand development costs incurred (and
the related tax effect, where appropriate) in association with the
development of the Company's new brand identity. The Company uses
two other non-GAAP financial measures: Monthly Recurring Revenue
("MRR") and Adjusted EBITDA from recurring services. MRR differs
from GAAP in that certain revenue components, which are included in
GAAP revenue, are excluded from the calculation of MRR. These
components include certain revenues that are received by the
Company but that are not derived from monthly contractual billing
arrangements, the amortization of deferred revenue related to
active subscriber accounts, and recognition of deferred revenue
related to subscriber accounts that disconnect. Adjusted EBITDA
from recurring services differs from GAAP in that adjustments are
made to normalize royalties, to add back non-cash expenses, and to
make reductions for other non-cash income items. The Company's
basis for these adjustments is described below. Management uses
these non-GAAP measures for internal reporting and forecasting
purposes, for publicly providing its business outlook, and for
evaluating the Company's performance. The Company has provided
these non-GAAP financial measures in addition to GAAP financial
results because it believes that these non-GAAP financial measures
provide useful information to certain investors and financial
analysts for comparison across accounting periods when evaluating
the Company's historical and prospective financial performance. The
Company has historically provided this or similar information and
understands that some investors and financial analysts find this
information helpful in analyzing the Company's margins, net income
and comparing the Company's financial performance to that of its
peer companies and competitors. The Company believes that the
presentation of non-GAAP measures provide investors and financial
analysts with a consistent basis for comparison across accounting
periods and, therefore, is useful to investors and financial
analysts in helping them to better understand the Company's
operating results and underlying operational trends. These non-GAAP
financial measures are not prepared in accordance with accounting
principles generally accepted in the United States ("GAAP") and may
differ from the non-GAAP information used by other companies. There
are significant limitations associated with the use of non-GAAP
financial measures. The additional non-GAAP financial information
presented here should be considered in conjunction with, and not as
a substitute for, or superior to, the financial information
presented in accordance with GAAP (such as operating profit, net
income and earnings per share) and should not be considered
measures of the Company's liquidity. BRINK'S HOME SECURITY
HOLDINGS, INC. and subsidiaries NON-GAAP RECONCILIATIONS
(Unaudited) Monthly Recurring Revenues The following table
reconciles MRR to revenues, its closest GAAP counterpart: Six
Months Ended June 30, (In millions) 2009 2008 Monthly recurring
revenues for June ("MRR") (a) $42.6 39.3 Amounts excluded from MRR:
Amortization of deferred revenue (b) 3.4 3.4 Accounting Correction
(c) - 2.0 Other revenues (d) 1.2 1.7 Revenues for June on a GAAP
basis: $47.2 46.4 January - May 228.8 215.3 Revenues for January -
June on a GAAP Basis $276.0 261.7 (a) MRR is calculated based on
the number of subscribers at period end multiplied by the average
fee per subscriber received in the last month of the period for
contracted monitoring and maintenance services. (b) Includes
amortization of deferred revenue related to active subscriber
accounts and recognition of deferred revenue related to subscriber
accounts that disconnect. (c) In June 2008, an adjustment was made
to correct the recognition of deferred revenue and deferred
subscriber acquisition costs associated with the termination of
customer relationships. The adjustment resulted in an increase to
June 2008 revenues by $2.0 million, of which $0.2 million was the
portion of the correction related to 2008 and the remaining $1.8
million related to the previously reported annual periods The item
had no impact on cash flow. (d) Revenues that are not pursuant to
monthly contractual billings, including revenues from such sources
as ad-hoc field service calls, product sales and installation fees
not subject to deferral, terminated contract penalty billings for
breached contracts, pass-through revenue (alarm permit fees, false
alarm fines, etc.) and partial month revenues recognized from
customers who disconnected during the last month of the period and
are therefore not included in MRR. This amount is reduced for
adjustments recorded against revenue (primarily customer goodwill
credits and other billing adjustments), and for the amount included
in MRR for new customers added during the last month of the period
for those portions of the month for which revenues were not
recognized for such customers. MRR is a non-GAAP financial measure
used in this press release and related conference call and webcast.
The Company uses MRR, a non-GAAP measure, to evaluate performance.
The Company believes the presentation of MRR is useful to investors
because the measure is widely used in the industry to assess the
amount of recurring revenues from subscriber fees that a monitored
security alarm business produces. This supplemental non-GAAP
information should be reviewed in conjunction with the Company's
consolidated statements of operations. BRINK'S HOME SECURITY
HOLDINGS, INC. and subsidiaries NON-GAAP RECONCILIATION (Unaudited)
Adjusted EBITDA from recurring services The following table shows
the reconciliation of a non-GAAP financial measure, Adjusted EBITDA
from recurring services, to the most directly comparable GAAP
financial measure, Operating Profit. Adjusted EBITDA from recurring
services is used in this press release and may be used in the
related conference call and webcast. Three Months Ended Six Months
Ended June 30, June 30, (In millions) 2009 2008 2009 2008 Adjusted
EBITDA from recurring services (a),(b) $84.0 80.7 162.4 157.7 Less:
Adjustment to normalize royalty rate (c) (0.0) (6.5) (0.0) (12.7)
Less: Depreciation and amortization (22.6) (21.8) (44.8) (42.4)
Less: Impairment charges from subscriber disconnects (15.8) (12.8)
(29.8) (24.7) Plus: Amortization of deferred revenue 9.8 11.4 19.1
20.0 Recurring services operating profit 55.4 51.0 106.9 97.9 Less:
Investment in new subscribers (27.9) (25.7) (54.3) (51.4) Operating
Profit $27.5 25.3 52.6 46.5 (a) Adjusted EBITDA from recurring
services is adjusted for the change in the royalty rate and is
calculated as if the royalty rate had been approximately 1.25% of
revenue for all periods presented. (b) For the three months and six
months ended June 30, 2009, Adjusted EBITDA from recurring services
includes the effect of non-cash litigation charges related to a
previously disclosed matter involving an unfavorable jury award
associated with a suit brought by a former employee. The charges
for the three and six months were $0.5 million and $4.5 million,
respectively. The Company recently filed post-judgment motions in
the trial court to set aside or reduce the verdict, or
alternatively request a new trial. A hearing has been set for such
motions. If the results of the motions are deemed unsatisfactory,
the Company intends to file an appeal. (c) For comparison purposes
in this table, the three months and six months ended June 30, 2008
were adjusted to reflect the current royalty rate of 1.25%. At this
rate, the full adjustment for the three months ended June 30, 2008
would have been $7.5 million, $1 million of which was allocated to
investment in new subscribers and is therefore excluded from this
adjustment. The resulting adjustment of $6.5 million is shown in
the table. For the six months ended June 30, 2008 the adjustment
would have been $14.6 million, $1.9 million of which was allocated
to investment in new subscribers and is therefore excluded from
this adjustment. The resulting adjustment of $12.7 million is shown
in the table. Note: Figures may not tie due to rounding. Brink's
Home Security Holdings, Inc. and subsidiaries Non-GAAP Financial
Measures Reconciliation (In millions, except per share data -
unaudited) The following tables show the non-GAAP financial
measures used in this press release and related conference call and
webcast reconciled to the most directly comparable GAAP financial
measures. Three Months Ended Six Months Ended June 30, June 30, (In
millions) 2009 2008 2009 2008 GAAP operating profit $27.5 25.3 52.6
46.5 Add: Adjustment to royalty rate (a) 0.0 7.5 0.0 14.6 Add:
Brand Development Expenses 2.2 0.0 3.3 0.0 Non-GAAP operating
profit (b) $29.7 32.8 55.9 61.1 GAAP net income $16.6 15.5 31.8
28.3 Add: Adjustment to royalty rate (a) 0.0 7.5 0.0 14.6 Add:
Brand Development Expenses 2.2 0.0 3.3 0.0 Less: Tax effects of
adjustments (0.8) (2.9) (0.9) (5.7) Non-GAAP net income (b) $18.0
20.1 34.2 37.2 GAAP earnings per share - diluted $0.36 0.34 0.69
0.62 Add: Adjustment to royalty rate (a) 0.00 0.16 0.00 0.32 Add:
Brand Development Expenses 0.05 0.00 0.07 0.00 Less: Tax effects of
adjustments (0.02) (0.06) (0.02) (0.12) Non-GAAP earnings per share
- diluted (b) $0.39 0.44 0.74 0.82 (a) The Company's results of
operations include a royalty expense that was charged to the
Company by its former parent company for use of the Brink's brand
name. The rate utilized for fiscal year 2008 for the months January
through October was a 7% rate in the United States and 3% outside
of the United States. However, for the months of November and
December 2008, the rate used was approximately 1.25% of revenue for
both within and outside the United States. (b) Non-GAAP figures for
the three months and six months ended June 30, 2009 as presented in
the table above include the effect of the previously referenced
non-cash litigation charges (see footnote (b) in the previous table
reconciling Adjusted EBITDA from recurring services to operating
profit). The charges for the three months and six months were $0.5
million, or a $0.01 per share earnings on a diluted basis, and $4.5
million, or $0.06 per share earnings on a diluted basis,
respectively. Note: Figures may not tie due to rounding.
http://www.newscom.com/cgi-bin/prnh/20090708/DA43773LOGO
http://photoarchive.ap.org/ DATASOURCE: Brink's Home Security
Holdings, Inc. CONTACT: Investor Relations of Brink's Home Security
Holdings, Inc., +1-972-871-3130 Web Site:
http://www.brinkshomesecurityholdings.com/
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