Loss of APX monitoring contributes to Pro One’s loss; commercial biz a bright spot
In its 2010 Q1 earnings statement yesterday, Pro One reported a loss of 19 cents per share compared to 11 cents one year ago. As the AP points out here, part of that loss was the result of the APX taking its monitoring inhouse last fall. APX acquired a central in Minnesota from CMS, a wholly-owned subsidiary of Pro One, last fall. Nearly all of the accounts monitored by that central were owned by APX.
LAWRENCE, Kan. (AP) — Electronic security company Protection One Inc. said its losses widened to $4.8 million in the first quarter as it lost one of its largest customers and recorded less retail and multifamily unit business.
The loss, of 19 cents per share, compared to a loss of $2.8 million, or 11 cents per share, in the same quarter a year ago. Revenues fell 5 percent to $88.3 million.
Lawrence-based Protection One said that as of Nov. 1, it was no longer providing monitoring services for APX Alarm Security Solutions Inc. at a facility in South St. Paul, Minn. Those services were taken over by APX, which had provided Protection One with $11 million in revenues last year. The loss was partially offset by growing equipment sales to commercial customers.
Protection One announced April 26 that it is being bought by private equity firm GTCR in a deal valued at $392.7 million plus debt. On May 3, a subsidiary of GTCR commenced a tender offer to buy all of Protection One’s shares for $15.50 per share.
Protection One’s shares were unchanged at $15.45 on the NASDAQ stock exchange.
The Pro One earnings report, linked below, notes that the commercial business was a bright spot this quarter.
The Company’s focus on the commercial market resulted in an increase in equipment sales, which is reflected in installation and other revenue.
Insiders expect Pro One’s focus to remain on its commercial business under new owners GTCR. Growing a commercial security business is something Tim Whall is particularly good at.