Two big players assess post-hurricane losses
YARMOUTH, Maine--Hundreds of ADT Security and Protection One employees across the country marshalled their resources--with offers of housing, employment and donations of food, clothes and money--last month to help out their colleagues in the Gulf Coast.
Two of the biggest players in the residential security market, ADT and Protection One, both had offices and employees directly affected by Hurricane Katrina.
Protection One offices in Pennsacola, Fla., Birmingham, Ala., and Memphis, Tenn., closed briefly and are now open. The New Orleans office is habitable and two employees are working there, but it will not reopen for a while, said Richard Ginsburg, president and chief executive officer of Protection One. (See related story above.)
Ginsburg estimated Protection One, which earned $269 million in 2004, may incur storm-related revenue loss of $400,000 to $500,000 for 2005.
"While we are a national company with customers all across the country, our customer loss will have a much smaller impact on revenues than some of the local and regional companies." Ginsburg said. "At this time, we are doing everything we can to ensure our employees and customers are taken care of. The outpouring of willingness to help from within the Protection One family has been incredible."
Protection One had 40 employees and ADT had 375 employees affected by the storm. Many lost their homes or had homes that were significantly damaged. ADT has not released storm-related financial loss estimates.
ADT offices in Mobile, Ala. and Jackson, Miss., and Baton Rouge, Lafayette and Shreveport, La., are open and operating, but the New Orleans office will be closed indefinitely.
"We are deeply concerned about our many customers, friends and team members who have been impacted by the devastation brought on by Hurricane Katrina," said Jay Stuck, vice president of communications for ADT.
ADT and Protection One and their employees have raised and matched funds, delivered food and water, organized fundraising events and offered housing to their displaced colleagues. Protection One will relocate displaced workers to one of its branch offices, and ADT has suspended billing for three months in affected areas.