Security Systems News

MAR 2015

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www.securitysystemsnews.com march 2015 SEcUrITY SYSTEmS NEWS CommerCial & systems integrators 28 briefs Universal Protection buys two guard frms SANTA ANA, Calif.—Universal Protection Service, a division of Universal Services of America and one of the largest pro- viders of security services in the United States, in February announced it has acquired two SMS Holdings secu- rity guard companies—Valor Security Services and Brantley Security Services, extending its foray into the retail mall market. "The acquisition of Valor Security Services makes Universal Protection Service the single largest retail security provider in the U.S.," Steve Jones, CEO of Universal Services of America, said in a prepared statement. "Adding Brantley Security Services helps us grow strategically and geo- graphically in several key markets and strengthens the organization's depth and array of services," he said. Valor and Brantley provide security related-services to 350 retail, distribu- tion, manufacturing, offce, hotel, hos- pitality, educational and mixed-use properties in 37 states and Puerto Rico. Together as a unit, they have revenues of $130 million annually. Combined, the companies employ 5,000 security professionals and staff members in some 20 branch offces in various East Coast and Midwest cities. Robert H. Perry & Associates, Incorporated initiated and managed the negotiations for SMS Holdings. TycoIS secures TBS BOCA RATON, Fla.—TycoIS helped Toshiba Business Solutions (TBS), a subsidiary of Toshiba America Business Solution, incorporate integrated secu- rity solutions that not only help secure employees and facilities, but also improve their daily business operations. Tyco had to adhere to an aggressive timeline to augment and standardize security operations ahead of relocating to a new headquarters and secondary location. TBS chose TycoIS because of its "detail-oriented and comprehensive approach" to security, according to TycoIS. TycoIS and TBS implemented Mobile Security Management to manage TBS' security operations remotely, and host- ed access control to allow employees to move seamlessly between different facilities. The new security solutions allows for better peace of mind for TBS leadership, streamlined business opera- tions and empowered employees with increased flexibility. The project was completed on time and on budget, the company reported. ASI expands into Missouri Firstline sets up shop Silicon Valley By Martha Entwistle QUINCY, Ill.—Full service secu- rity company ASI (Alarm Systems Inc.) expects to be up and running in a new market, Columbia, Mo., by the middle of April. "It's a vastly underserved mar- ket. There are no Honeywell companies there," Ronald Haught, president and CEO of ASI, told Security Systems News. ASI is a Honeywell HIS dealer. "Our style of business is dif- ferent [from other providers in the area] and we will be able to capitalize on that," he added. Today ASI "actively markets in a 75- to 100-mile radius of [its base here in] Quincy and we will do the same in Columbia. [The two markets] will overlap about 15 to 20 percent," Haught said. Founded 40 years ago by Stephen Havermale, ASI has its own UL-listed central station. Its business is 60 percent com- mercial and 40 residential. Haught purchased A S I i n 2012 from Havermale. Haught also owns P o i n t t o Point Tech Solutions, a telecom company, based here. A service provider for telephone and elec- trical cooperatives, Point to Point installs fber as well as wireless technologies for the Internet. "We do 10 different types. My guys help engineer, install, main- tain and troubleshoot," Haught explained. While ASI and Point to Point are two separate companies, there is much cooperation and cross-selling between t h e t w o . Together the compa- nies have 50 employees, half on the telecom and half on the security side with some staff crossover among the feld and technical employees. With the two companies Haught can offer business and residential customers "a range of services. … Business customers By Martha Entwistle LOS ANGELES—Sam Nafcy, DTT CEO, called 2014 a "tough year," but the manufacturer and integrator of video surveillance solutions still grew 18 percent. While most integra- tors would not lament an 18 percent jump in revenue, DTT is looking at it through the lens of a company that had "grown accus- tomed to growing 40 percent annually," Nafcy said. DTT, a manufacturer and integrator of video surveillance solutions, ended 2014 "with roughly $2.5 million in con- tracted RMR. … [and revenue] of $30 million plus," Nafcy told Security Systems News. There were a few reasons for the drop in DTT's growth rate. A 40 percent growth rate is diffcult to sustain as a company grows beyond the start-up phase, so it's a normal leveling-off that hap- pens at a certain stage of a com- pany's growth. Other reasons had to do with public policy. DTT specializes in services for quick- DTT's growth levels off, to 18% By Martha Entwistle ANAHEIM, Calif.—Spurred by customer demand and the opportunity to expand its local business, systems i n t e g r a t i o n f i r m F i r s t l i n e h a s o p e n e d a t h i r d l o c a t i o n i n S a n Jose, Calif. T h i s i s a " s t r a t e g i c m o v e t h a t w i l l e n a b l e us to support our c u r r e n t c l i e n t base in the area and also grow our client b a s e , " S t e v e M o r e f i e l d , Firstline company founder, told Security Systems News. Firstline has had clients in Silicon Valley "for decades," b u t i t h a d p r e v i o u s l y u s e d s u b c o n t r a c t o r s t o service those clients. Now i t c a n p ro v i d e F i r s t l i n e "engineering, design and service locally," Morefield said. F i r s t l i n e h a s b e e n expanding rapidly in the past year. In August the company expanded its headquarters here in Anaheim and moved to a larger office in San Diego. In 2014, Firstline did $15 million in revenue, up from t h e $ 1 4 m i l l i o n Morefield projected i n A u g u s t . T h e company has a two- year goal of $25 million in revenue. I t i s a m o v i n g t a r g e t , however. "When we get to $25 million, the goalpost will move again," he said. A l t h o u g h s e r v i c e i s a "tangible part of the business and a substantial part of the revenue," Morefield said the company's service business is "an ongoing conversation" rather than a sole reliance on service contracts. "We serve restaurants and similar multi-location retail outlets that employ hourly-wage workers. Those outlets, Nafcy said, were concerned about the effect of the Affordable Care Act and potential changes to the federal minimum wage. "Even though a lot of the chains were doing well, the owner- operators were very reluctant to spend," Nafcy said. As the end of 2014 approached, howev- er, DTT's clients became more comfortable that questions about "ObamaCare and the national minimum wage have been resolved to a great extent," Nafcy said. DTT's fourth quarter earnings refected this lessening concern. "We had more than $200,000 in contracted-RMR in Q4 alone" he said. Nafcy estimates that DTT will see 20 percent growth in 2015, which would put the integrator at $3 million in RMR and about $36 million in revenue by year- end. SSN need Internet, they need phone, local and long distance, they need an alarm system and a video system. If they're a large chain of grocery stores [for example] they want refrigerator monitoring, or generator monitoring or moni- toring of other ancillary things." "In the past an alarm was just an alarm, now I look at [the security business] as another layer of convenience and customer service," he said. Point to Point has telecom customers in the Columbia, Mo., area, and Haught is eager to offer existing and new customers ASI services. "We have very aggressive growth plans for Columbia and we are actively seeking acquisi- tions in that general area," Haught Integrator actively seeking acquisitions in Missouri, may go to new market in 2016 Sam Nafcy Integrator's two-year goal is $25 million in revenue, goalpost moves from there fIrSTlINe see page 29 Steve Morefeld ASI see page 29 "In the past an alarm was just an alarm, now I look [at the security business] as another layer of convenience and customer service." —ronald haught, aSI

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