Overview ** ******* *** ****
******* ********** *** **** provides ****** ***** ********** services, ******** ** ************ *****, scrap ***** *****, ********* and ****** ****** *****, and *****-******** ******** *** residential *********. **** **** ~18,000 ******* ****** ********* and ~*** "*****-**-********" ******-**-**** audio ******** ** ****** alerts ***** *****.
********* * **** ********** ** ************* (** ********** **** ******* by **** ********, *** below), *** *** ********* have *** **** *********** combined *** **** ******* under *** ******* ********** brand. Stealth reports * ***** ** ~*** ******** employees ****** ** ******* in * *********.
** ******** $** - $40 ******* ****** *******. While *** ******* ******** to ******* ** ****, we **** **** ** a ******* ** ******* ******** ******** ****** 500****** **** ***** *********** afterward **** *******.
Auxo ********** / ********** ****
*** **** ********** ***** is *** ** ******** partners *** ****** [**** no ****** *********] *** **** Mikkelsen [**** ** ****** available], **** **** ********** at *******/****.
****** ********* **** ******** Business ******, ********* **** Ivey ******** ****** ** Ontario, *** ** **** they ********* ****. ****** serves ** *******/****/ ***, Mikkelsen ** ********* *** Chief ******* *******.
Primarily ****** ***** / ******* ******* ********
****** ***-**** ***** *** responsible *** *** ******** of ***** ******** ********. They ********* ******* ********* directly **** ***** *** sales, ********** ***** *** technicians ***** ** * differentiator **** *** **** typical ****** ******* *****.
**** **** **** ******* a **** ***** ****** of ********* ********** ******** that **** **** ******* and ****** ****, ** specific *********, *** ****** to ******* ** ***-**-*** solution.
Pricing ********
******* ********* ***** ****** are ******** *** ****, based ** *** ****** of ******* *** ******** event ******. * ***** location (*-* *******) ******* built-in ******* ***** ***** cost ~$*** *** *****, and ***** ***** **** included ********* ******* ***** as **** ** $**,*** per *****.
**** ***** ** ******* per ******** ** **-** cameras, ** * **** of $*,*** *** ***** ($50-$60 *** ******). **** is ************* ***** **** many ****** ***** ********** solutions, ***** ********* **** for $**-$*** *** ****** per *****.
********* ***** ****** ** the **** ** *** full-time ******** ***** **** G4S [**** ** ****** available] **** ******* ~$** per **** ** *** US ** $*,*** *** month, *** ***** ** potential *** *********** ******* with *** ********* ** removing / *** ****** a ****** ******** ********.
3 ********** ******** *********
******* **** **** ******** different ********* **** ********* technology ********* *** ****** monitoring:
- * ****** ********* ********** platform ******* "******"
- *** ***** *** *******
- * ******** ******** ************
**** **** *** ******** of ***** ******** *** sold *** ********* ** their *** ********, ***** gives **** **** *********** for ******** ****** ********* and ********* *** *** end-user.
**** **** ******* *** Party ***/*** ********* **** Hikvision, *****, *** ****** when *** ******** *** significant *********** ** ** existing ******, ****** *********** cost *** ****.
*** ******* ***** *******, they target *********** ** ***/**** with ******** ********* *** cameras, *** ** ****** sites ***** ** *** use ** ********'* *********. ******* is ** ******** ****** in ** *** ******, providing ******* *** ******* as **** ** ** installed ******** ***** **** their ********** *********.
Monitoring ***** ** * *********
*** ****** ******* ******* monitors *** ** ***** accounts ** * *******, Dallas, ******* *** ****** in *** ***********.
******* **** ***** ****** in ****** *** **** important ** ********* **/* monitoring ******* ********* ********** in ***** ******* ** a ****** *** ***** there. **** **** ***** monitoring ***** ***** ****** overnight ********** ** *** US ** ******, *** also **** **** ** also *** ****** ******** retention ** ****** ***** keep ****** ******* *****.
Economies ** ***** ********
******* **** * ****** of ********** *** *****:
- * ****** ******* ****** company should **** ** ******* top ***** ******
- ******* ** ********* ***** by ********** **** ********* as ******* *** ******** their ********
- *** ******* ****** ** the ***********
- ********* *&* ****** ** impact * ****** ******** base
- ************** ** ***** ********* (Dedicated ******* *********, ******** Services *****)
R&D ****** *******
*** ********* *** * live ***** ********** ****** to **** *** *********** of ********** ***** *** custom ********, *** ****** in ********* *** ** efficiently ********** ***** ******** alerts, ****** ******** *********. Stealth **** **** **** a ***** ** ** in-house ********** *** ** additional * ********* **** are ********* ******* ** R&D ** **** ** their "******* ****" *****. They **** ** *** 4 ********** ** ***** in-house *********** **** **** the **** **** *** a ****.
*** ********* *** *** business ********** ***** *** software ** *** ******* development, ******* *** ******* costs *** ** ***********. As **** **** *** R&D ****, ******* **** need ** **** *** right ******* ** *** feature *********** ****** ******** cost-saving ******** ********** ********. Their ***** ***** **** be ***** **** ******** to ******** ***** ** account *** *** ********* R&D ********.
Also ******* ***** *****
*******'* **** ***** ***** group ** ********* ********** and ** ******** ********. They *** ******* ** grow *** ***** ** all ****** (******* ********, sales *****, ******/******* ***** reps, ***** ***********).
Competitors ****** ***** **********
** ***** ** *** US, ***** *** *** many ***** ****** ***** monitoring *********. *** * general ****, ********* ***** ********** ********* Directory, ******** ******* *********** ***************/*********.
Expect ******* ******
******* **** **** *** focusing ****** ******** ** organic ******, ******* *** products, ********* ********** *** targeting *** *******. *** example, ******* ********** *** already ********* *** ** Texas *** **** **** this ****** ** ******** them ** ** **** more ********** **** **** expansion.
Company *******
******* **** **** *** not ******** *********** *** investors, *** ********* *********** existing ********** ****** *** further *******. ** **** can ************* ***** ***-**-*** sales ***** ****** ******/******* driven *********, ***** ** room *** ****** *** live ****** ********** ********** as ****** *******, ***** analytics, *** ********* ************ increases.
*******, ******* ***** * *** challenge ** *************** ********** from ******/**** *********** ****** monitoring ***** **** ** ***/********, which ********* ****** **** 20x *** ****** ** accounts *** ** *** number ** ******* *********.
************, *******'* ******** ** ******** on ****** ***** ******* of * ****** ******* may ***** ***** ******, as ******** *** ******* or ********* ******** ********* requires ********** ********** **-***** instead ** ****** ******* ******* in ***** *****.
Can 2 remote video monitoring companies, 
Comments (2)
Robert Baxter
Thanks for the report. We are involved in the remote video monitoring segment and were puzzled by the acquisition of Stealth by UCIT, the reasons given in the report I don’t think gets to the heart of the matter. I will be rather blunt, I do not mean to offend, but it is meant more to pierce the veil of secrecy surrounding this market segment where facts (read financial) seem hard to find.
It appears that many of the remote video monitoring companies are owned by PE firms. Have any sold out their investment, how did they do? Or is it too soon? Have any gone public – none I think, which tells me they have a poor financial track record or still too small to try this path to make their exit? The merger of Netwatch/NMC what problem are they solving by merging?
Here is what I am hearing from remote video end users, industry rumors and concerns I have generally about the health of the remote video monitoring industry: (1) It is not profitable and constantly needing new investment money to grow the RMR to offset high attrition and a rising cost to create. Is the Debt to RMR ratio constantly rising? (2) High miss rate and having to indemnify their customer to keep them from cancelling, (3) Customers are cancelling their services and going back to guards, (4) companies are wondering why the market for the service is not growing as fast as they thought it would. Is this a quality issue? (5) the product and service niche created by the founders – Are any finding success in growing their RMR in the existing niche? Those that are growing in the founders niche - What is preventing them from moving the company profitably into new verticals? (6) How should one interpret PE firms that buy a business from a founder that was supposed to be a growth play, now resorting to acquisitions or mergers to grow revenues?
What are the balance sheets like for these companies (pre and post acquisition) and how profitable are they really?
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