The ratings on Lawrence, Kan.-based Protection One Alarm Monitoring Inc. reflect its modest presence in the highly competitive U.S. security alarm monitoring industry, flat revenues, and highly leveraged financial profile. These partly are offset by a largely recurring revenue base and the expectation for continued positive free operating cash flow generation. With annual revenues approaching $270 million, Protection One is a second-tier provider of property monitoring services, providing sales, installation, and maintenance of security alarm systems to approximately one million residential and commercial customers nationally. ADT Security Services Inc. is the dominant player in this market, boasting more than 10x the annual revenue base of its nearest competitor. Protection One had approximately $420 million in operating lease-adjusted debt as of
