Protection One estimates financial loss
LAWRENCE, Kan.--Richard Ginsburg said that Protection One estimates between $400,000 to $500,000 in potential revenue loss for the remainder of the year as a result of Hurricane Katrina.
The company, which earned $269 million in 2004, announced preliminary storm damage estimates on September 1. Noting that the assessment is subject to change, the company said roughly one-percent of total revenues reported in the first six months of 2005 came from areas in which homes and businesses suffered significant damage.
Similarly, one-percent of its recurring monthly revenue from the same time period came from contracts with customers in those areas.
For the six-month period ending June 30, 2005, Protection One reported revenues of $130.9 million, roughly $21 million per month
"While the impact on our consolidated account base does not appear to be material, our thoughts are with our employees, their families and friends, and our customers who are dealing firsthand with the unprecedented impact of this natural disaster," Richard Ginsburg, Protection One's president and chief executive officer, said in a written statement.
Protection One provides monitoring and related security services to more than one million residential and commercial customers across the country. The company has 65 branch offices and multiple call centers. The staff nationwide is about 2,300. The company's New Orleans office had 40 employees. While many lost their homes, all of those employees and their families survived the storm, Ginsburg said.