SAI consolidates, expects profits
ARLINGTON HEIGHTS, Ill.- One of the country's largest contract central stations reported revenues of about $201 million for the fiscal year 2001 but recorded a net loss of more than $14 million available to common shareholders.
Significant changes over the past year at Security Associates International, which monitors about 330,000 accounts for 2,500 dealers, are expected to help the company achieve positive cash flow by the second quarter of this year, company officials said. Those changes include a new management team, a consolidation of central stations from six facilities to three and a major technology upgrade as well as a host of contracts with other national brands to offer new programs to its dealers.
SAI officials estimated that the migration of customer accounts from the company's Seattle, Dallas and Cleveland central stations, which have all been closed, would be completed by the end of May and would dramatically improve cash flow conditions at the company.
The company also suffered $4 million of losses, included in the $14 million total losses, that resulted from an aborted merger with the former King-Monital, a merger which would have created the largest contract central station in the country. King-Monital is now know as Criticom International, after its merger with International Dispatch Center. SAI's losses also included restructuring expenses and a write-off of technologically outdated equipment.