Issue link: https://read.dmtmag.com/i/34202
SECURITY SYSTEMS NEWS JULY 2011 www.securitysystemsnews.com COMMERCIAL & SYSTEMS INTEGRATORS SYSTEMS INTEGRATORS BRIEFS Select scores school deal DUBOIS, Pa.—McLean Publishing reported that the DuBois Area School District board of directors on May 23 unanimously approved the purchase of security equipment and access con- trol equipment for the high school and middle school from Select Security in the amount of $460,670. The total amount for the security sys- tem is to be paid from the capital fund. According to the report, the system was recommended by the junior and senior high school administration, IT depart- ment, and the school resource offi- cers. The system includes a separate network for surveillance cameras and a new access control system. A work station at both schools is used for mon- itoring. In total, there will be 101 new cameras at the high school and 81 new cameras at the middle school. ASIS will have integrator track ALEXANDRIA, Va.—ASIS announced in May that it is expanding its education program for the 2011 show to include a new track for integrators. The track will feature practitioners in key vertical industries, and is designed to help systems integrators understand their challenges and discover what end users expect from them. The goal is to help integrators become better equipped to address these markets, provide meaning- ful solutions, and reinforce their value to current and potential clients, announcement said. the Stanley and Lenel partner NAPERVILLE, Ill.—Stanley CSS announced in May that it has expand- ed its strategic partnership with Lenel Systems International, to support the Picture Perfect and Facility Commander Wnx product lines. Lenel is a business of UTC Fire & Security. Stanley CSS said the deal extends and strengthens its product delivery platform for its customers. Tony Byerly, president Stanley CSS Direct, North America and United Kingdom, said in a prepared statement: “By matching up Stanley’s best-in-class security solutions and delivery platform with the advanced technology inherent in Picture Perfect and FC Wnx, formerly known as Casi, we see a robust and seamless turn-key enterprise solution to bring to commercial, national/global, government and high security accounts seeking HSPD 12 compliancy, expert platform integration and industry lead- ing support from a global company with local resources to support all customers at all levels.” Calculating an integrator’s worth, with and without RMR The exit path is prettier with at least some RMR By Martha Entwistle WESTMINSTER, Colo.—If there’s one message that PSA Security CEO Bill Boz- eman likes to hammer home with PSA integrators it’s this: those who offer man- aged services, maintenance and service plans and have other RMR generators as part of their business will have more, happier, and stickier customers. In addi- tion, they also have more valuable com- panies, according to Jeff Kessler, manag- ing director for Imperial Capital. Kessler spoke about the economic outlook for the security industry on May 18 at the PSA-TEC meeting here. He was asked by PSA Security CEO Bill Bozeman to give a ballpark valuation for hypothetical companies with and without RMR. Bozeman threw out the example of a $7 Jeff Kessler million physical security integrator who designs and installs access control. He does not have RMR, but he is profitable and has a traditional tax structure. Kessler said the price goes up for an integrator who offers at least some service. Kessler likes to talk about valuations in terms of EBITDA (although he acknowl- edged that EBITDA can be calculated in differ- ent ways). He said that Bozeman’s hypotheti- cal $7 million integra- tor that’s 100-percent installation with no RMR could expect to get five- or six-times EBITDA. The same company with at least some RMR, on the other hand, could expect to get six-times to nine-times EBITDA, Kessler said. In addition, financial players are more interested in working with integrators who have “at least some recurring rev- enue,” Kessler said. SSN Advice from PSA-TEC 2011: Embrace change By Martha Entwistle WESTMINSTER, Colo.—What’s the biggest challenge for independent integrators today? According to Bill Bozeman, “it’s not the need to learn the latest and greatest technology,” and it’s not learning how to sell better or more efficient- ly. Rather, it’s understanding how to run and adapt their business models so they can run profitable businesses. Speaking on a “state of the industry” panel discussion at the PSA-TEC conference, which took place here May 16-20, Bozeman, president and CEO of PSA Security Network, sounded a familiar call to integrators to embrace change, social networking, crete ideas and tools to change their busi- nesses. Moderated by Sandy Jones, the State of the Industry panel discussion included Dave Carter, managing director, Security Network of America; Paul Cronin, CEO 1nService, representing network and technology integrators; J. Matthew Ladd, president, The Protection Bureau, represent- ing Security-Net; and Chuck Wilson, of National Systems Contractors Association. Carter said that protecting Bill Bozeman and expand their business model to include more services. Shrinking margins have increased the pressure to ensure that “each job has to be profitable and successful,” he said. As a result, cash flow problems have become commonplace. It’s difficult to make changes, Bozeman acknowledged, but he pointed out that the PSA-TEC attendees, in addition to com- pleting sales and technical training, could walk away from the conference with con- and growing RMR is chal- lenging today because new entrants, such as Comcast, Verizon and major residential companies have started offer- ing extensive non-security services. Competition will intensify, Boz- eman said, and integrators should learn about manufacturers’ registered project programs, and be open-minded about working more closely, where appropriate, with manufacturers. Ladd said shrinking margins and attri- tion mean that “if you take jobs at tighter margins, you have to make sure you have great project managers.” Cronin identified “attracting and retaining talent” as the big- gest challenge. SSN Protec, Inc. realignment paying off Company experiences double-digit RMR growth By Martha Entwistle PORTLAND, Ore.—Every Thursday morn- ing, Protec, Inc. president Andy Schwartz and his senior staff—Bill FitzHenry, VP of sales; Patrick McGill, VP of operations; COMMERICAL & SSN 17 The Protec, Inc. executive team. Andy Schwartz, seated. From the left, John Barnes, Patrick McGill, Bill Fitzhenry. and John Barnes, VP of project manage- ment—get to the office early for a 7 a.m. pre-business-day strategy meeting. Schwartz began holding these meetings about a year ago when he realigned the company’s management team and hired FitzHenry and McGill, with the goal of PROTEC see page 18 What’s PEG? Why PSA integrators will come back to PEG By Martha Entwistle WESTMINSTER, Colo.—Dakota Secu- rity president Eric Yunag showed up a day early for the PSA TEC confer- ence here last week so he could meet with seven other systems integrators for a quarterly meet- ing of a ‘PEG’. What’s a PEG? Eric Yunag “It’s a PSA-sponsored Peer Exchange Group,” Yunag explained. “The con- cept is about five years old and it was started as a way for PSA members to PEG see page 19