The ratings on Lawrence, Kan.-based Protection One Alarm Monitoring Inc. reflect the company's modest presence in the highly competitive U.S. security alarm industry, relatively flat revenues, and leveraged financial profile. These factors are partially offset by a largely recurring revenue base and the expectation that the company will continue to generate positive free operating cash flow. With annual revenues of approximately $265 million, Protection One is a second-tier provider of property monitoring services, providing sales, installation, and maintenance of security alarm systems to approximately 1 million residential and commercial customers. Protection One had approximately $357 million in operating lease-adjusted debt as of September 2005. The company's recent shift to an internal sales model from a dealer-generated account program follows several
