Re: Brink's Home Security to go away by 2012

["Crash Gordon" <webmaster@xxxxxxxxxxxxxxxxxxxxx>]

I've always been partial to;

Fawlty Alarm
or
Phalse Security




--
**Crash Gordon**







"Kid" <super@xxxxxxx> wrote in message
news:Yq21m.59781$qa.9099@xxxxxxxxxxxxxxxxxxxxxxxxx
>
> "noauth" <anon@xxxxxxxxxxxxxxxxxxxxxx> wrote in message
> news:4d8a357dc2cde1f3cc2d6defa8aae134@xxxxxxxxxxxxxxxxxxxxxxxxx
>> RICHMOND, Va.--Brink's Home Security is going to have to find a new name
>> by 2012.
>>
>> Industry watchers were taken by surprise by the news, included in a
>> lengthy May 30 SEC filing, that Brink's Home Security has been paying
>> royalties (7 percent of revenue--roughly $33 million in 2007) to sister
>> company Brink's, Inc., to use the Brink's Home Security name and will
>> lose that privilege three years after the two companies are spun off into
>> independent firms by The Brink's Company at the end of this year.
>>
>> "Brink's Home Security is the mass marketing brand name of choice for the
>> residential user; the Brink's Home Security name is golden," said
>> industry analyst Jeff Kessler. "It's going to be a challenge to come up
>> with another brand name [like Brink's]."
>>
>> The branding news was greeted with enthusiasm by Brink's competitors.
>> Russ Cersosimo, CEO of super regional Guardian Protection, called it
>> "great news." He said Brink's is "the best run national company out
>> there. I've admired Brink's and their numbers for years." Cersosimo said
>> he's "not afraid to compete with them, but the challenge is competing
>> with that name: Brink's is synonymous with security ... We welcome the
>> break-up."
>>
>> Did the hedge funds who were pushing for the spin-off, such as Pirate
>> Capital and MMI Investments, know that the brand name would be going
>> away? Or did they not care, figuring they'd be off to greener pastures by
>> 2012? Thomas Hudson of Pirate was precluded from commenting because he
>> sits on The Brink's Company board of directors. Clay Lifflander of MMI
>> did not return calls from Security Systems News seeking comment.
>>
>> Asked this question, Ed Cunningham, spokesman for The Brink's Company
>> said, "As we went through the process, branding was always raised as an
>> area of importance to both units."
>>
>> Kessler, who's been following the company for years, said he'd never seen
>> those royalty numbers spelled out in a filing before. He noted that The
>> Pittston Company, which then owned Brink's, Inc., launched Brink's Home
>> Security in 1983 and BHS did not become "profitable or revenue neutral
>> for the first eight years." He surmised the royalty may have been a sort
>> of payback to the Brink's, Inc.
>>
>> Kessler also noted that The Brink's Company has a five-year non-compete
>> agreement with BHS. At that time, The Brink's Company could launch
>> another physical security company, although Kessler said he believes
>> Michael Dan (CEO of The Brink's Company) would be more likely to enter
>> the commercial industrial space, rather than the residential, light
>> commercial business that BHS is in right now.
>>
>> Asked if The Brink's Company intends to launch a new physical security
>> company once the non-compete expires, Cunningham said, "All I can really
>> tell you is that it won't happen before five years."
>>
>> There's also a good chance, Kessler said, that Brink's Home Security may
>> be acquired by another company within the next three years, which would
>> render the branding question moot.
>>
>> The rebranding issue will be a challenge, but BHS is in good shape and
>> has steady-state cash flow--a metric Kessler considers important in
>> determining the profitability of a security company's recurring base of
>> business--"that's higher than any one I know of in the public market." He
>> also said the "top notch executive team" at BHS, notably CEO Bob Allen
>> and CFO Steve Yevich, mean the company "is in good hands."
>>
>
> call it:
> 1    BINKY
> 2    BANKS
> 3    SCUM SUCKERS
> 4
> 5     2 DOORS AND A MOTION.
> 6    YOU'LL NEVER OWN IT.
>