VOXCOM's growth steady since IPO

EDMONTON, Alberta--VOXCOM Income Fund, a major player in the Canadian residential security market, completed the purchase of an unnamed Toronto-based alarm company on July 24. And on August 8, the company added another 800 accounts, purchased from an unnamed Alberta-based alarm company. Terms of the two summer deals were not released. Brad Sparrow, president and chief executive officer of VOXCOM, said small acquisitions are one way this company likes to grow. The alarm company brings with it 1,100 customer accounts in Toronto, which will help increase density in that city, where Sparrow said the company already has a significant presence. "This is typical for us. We grow through our authorized dealer program throughout Canada, our marketing partners program and small fold-in acquisitions," he said. VOXCOM, which has 115,000 customers across Canada, also grows through its marketing partners program and its authorized dealer program, Sparrow said. Its marketing partners include insurance companies, retailers and other large Canadian brands. Its dealer program comprises 100 dealers across the country. "We are particular about the type of dealer we look for. We're growing [that program] at a slow, comfortable pace, adding three to four new dealers every quarter or so," he said. VOXCOM underwent some major changes in the past three years. It went from being a public company to being a private company in early 2004, and then back to being a public entity again in May of 2005. The company is now an "income fund,'' a type of public company that Sparrow described as "uniquely Canadian." "It's been a very positive experience for the company and for the stakeholders," he said. Companies that are good candidates to be income trusts should be very stable with predictable revenue and cash flow. VOXCOM fits this model and "our investors like this growing industry and like our brand, size and presence in the marketplace."Another benefit of being an income trust, Sparrrow said, is that VOXCOM has "access to public capital to grow through acquisitions and other means."