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Frost & Sullivan Recognizes Monitronics International for Exceptional Service and Growth in the Alarm Monitoring Services Market

Palo Alto, Calif. — July 18,2008  — Based on its recent analysis of the alarm monitoring services market, Frost & Sullivan recognizes Monitronics International with the 2008 North American
Frost & Sullivan Award for Service Provider of the Year for its exceptional operational skill and ability to attract and retain key dealer accounts in the industry.

Monitronics is one of the largest alarm monitoring companies in the United States, and grew its revenues by 66 percent from 2002 to 2006, to reach $185.6 million. It provides services to, and purchases alarm monitoring contracts from, dealers across the United States, and services the contracts in exchange for a monthly fee from the home or business owner.

One of the key aspects of Monitronics’s successful growth has been its commitment to bring value to the independent dealers it does business with. For a small, independent dealer, operating a central call station is a distant proposition, given the relatively high fixed costs involved. By partnering with the right monitoring provider with a central call station, they can significantly augment their ability to add value to their product portfolio.

Monitronics is a very attractive partner. It offers fast payment to dealers, providing the full value of the contract within 30 days of signing up the account. This means that dealers who install and sign up a customer can get the value of their sale virtually immediately, making them more likely to work with Monitronics in the future.

Dealers also have the option to use Monitronics’ extensive portfolio of marketing tools to promote their services and expand their own brand. Monitronics offers everything from the standard yard signs and home stickers to marketing collateral and even customizable television advertisements.

“Monitronics’s growth during this decade is proof that it has the financial backing and payment process capability to back up its fast payment,” says Frost & Sullivan Research Analyst Brendon Ouimette. “It is also important to note that while Monitronics has sales lead capability through an 800-number and through its Web site, all leads go to its dealer partners, again adding value through dealer marketing support.”

The company operates a 5-Diamond Certified, UL-listed monitoring station, and can service its entire nationwide account commitments. These certifications ensure that Monitronics alarm monitoring operations is one of the best in the industry. It also makes end users far more likely to defray the cost of their monitoring agreement through discounts in their homeowner’s or business property insurance.

Monitronics focuses on purchasing virtually the full value of contracts from its dealer partners, typically a 3-year contract with an average monthly price of about $32. In return, Monitronics gains the monthly revenue from the customer as well as the opportunity to extend the lifetime of the contract when it expires.

“Since Monitronics operates on a large scale with thousands of dealer partners, it insulates itself from a downturn in particular geographic markets or parts of a market,” adds Ouimette. “This insulates Monitronics from significant market risk, while simultaneously increasing its ability to reach many customers.”

The alarm monitoring market is highly fragmented, with a few large providers and thousands of small dealers. Monitronics’ ability to tap into the large number of smaller dealers has made its cash flow from recurring monthly revenue remain strong even as the number and composition of its dealer network changes underfoot. This is only possible if the operational side of Monitronics is extremely competent, and this ability is apparent from the company’s growth. For this reason, the company is the worthy recipient of the 2008 Frost & Sullivan Award for Alarm Monitoring Service Provider of the Year.

Each year, Frost & Sullivan presents this Award to the company that has demonstrated unparalleled excellence within its industry in terms of business development, competitive strategy, customer satisfaction, and leadership. This company is perceived to exhibit outstanding management and consistent growth with high quality products and/or services. The award lauds positive social and economic impact on local and national communities and high caliber customer service offerings and performance.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About Monitronics International

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Stacie Kopecki