Brink's Home Security Holdings, Inc. Reports Second Quarter 2009 Financial Results

Delivers growth in revenue, operating profit, earnings per share, and net subscribers Monthly recurring revenue ('MRR') rose 8.4 percent from a year ago to $42.6 million Diluted EPS of $0.36, up $0.02 from prior year, includes $0.03 charge for new brand development costs Ending subscribers increased 5.2 percent compared to a year ago Second quarter annualized customer disconnect rate was 7.8 percent


IRVING, Texas, Aug. 5  /PRNewswire-FirstCall/ -- Brink's Home Security Holdings, Inc. (NYSE:CFL), a premier provider of monitored security services in North America now operating under the brand Broadview Security, today reported financial results for the second quarter ended June 30, 2009.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20090708/DA43773LOGO)

"I am pleased with our continued organic growth in revenue, operating profit, and our customer base in a challenging economic climate," said president and chief executive, Bob Allen.  He continued, "We recently launched our new brand, Broadview Security, and are encouraged by the positive reception from both existing and prospective customers.  We are excited about the future with our new brand and look forward to building upon the heritage of success that we have demonstrated over the last 26 years. For the full year, our expectations remain unchanged: we expect growth in our monthly recurring revenue, GAAP operating profit, and subscriber base, despite pressure on the customer disconnect rate."

Second Quarter Results

Revenue for the second quarter of 2009 was $140.0 million, representing an increase of 4.6 percent from $133.9 million recorded in the same period one year ago.  The increase in revenue was primarily due to continued growth in the subscriber base, up 5.2 percent from a year ago, and higher average monitoring rates, partially offset by a decline in revenue in our new construction business. Also, the comparison is impacted by a $1.8 million non-cash accounting correction that increased revenue in the second quarter of 2008.

Operating profit was $27.5 million, an increase of 8.7 percent from $25.3 million in the second quarter of 2008. Second quarter 2009 operating profit margin was 19.6 percent, up from 18.9 percent in the comparable quarter in 2008. The improvement in operating profit was due primarily to the increase in size of the subscriber base and a reduction in royalty rate charged to the Company by its former parent. (Historically, the royalty rate had been approximately 7 percent of revenue, but decreased to approximately 1.25 percent of revenue beginning November 1, 2008.)  Operating profit in the second quarter was reduced by $2.2 million of expense associated with the Company's new brand initiative.  The Company also incurred increased expense in its base level marketing program in the second quarter to build momentum in sales activities preceding the brand launch. The increase over the comparable quarter approximated $1.4 million, or $0.02 per diluted share. The comparability of the two quarters is also affected by the previously referenced non-cash accounting correction which increased second quarter 2008 operating income by $2.4 million.

Net income for the second quarter of 2009 was $16.6 million and diluted GAAP earnings per share were $0.36, representing an increase of 7.1 percent from net income of $15.5 million and pro forma earnings per share of $0.34 in the same period last year.  (The terminology 'pro forma earnings per share' is used in conjunction with the financial results for the three and six months ended June 30, 2008 since the Company was not public at that time and the fully diluted number of shares outstanding are, therefore, calculated on a 'pro forma' basis.)  The increase in net income was primarily due to the lower royalty expense incurred in the second quarter of 2009 and, to a lesser extent, the profit impact of the larger subscriber base, partially offset by the previously referenced new brand development expenses and the effect of the accounting correction on 2008 results. Brand development expenses reduced net income by $1.4 million, or $0.03 per share, in the second quarter of 2009. The accounting correction increased 2008 net income by $1.5 million, or $0.03 per share, in the second quarter 2008.

  Non-GAAP Information

  Non-GAAP Financial Results


In the table below, non-GAAP financial results for the three and six months ended June 30, 2009 have been adjusted to exclude the new brand development expenses incurred in the second quarter of 2009. The three months and six months ended June 30, 2008 non-GAAP financial results were adjusted to reflect the current royalty rate of 1.25%. A complete reconciliation of these non-GAAP figures can be found in the attached schedules.

                             Three Months Ended        Six Months Ended
   (In millions, except            June 30,               June 30,
   per share data)          2009(b),(c) 2008(a),(c) 2009(b),(c)  2008(a),(c)

      Non-GAAP Operating
       Profit                  $29.7        $32.8       $55.9      $61.1
      Non-GAAP Net Income      $18.0        $20.1       $34.2      $37.2
      Non-GAAP Earnings per
       share - diluted         $0.39        $0.44       $0.74      $0.82

  (a) Historically, the Company paid its former parent a royalty of 7
      percent on revenues in the United States and 3 percent on revenues
      in Canada. On November 1, 2008, the royalty rate changed to
      approximately 1.25 percent of revenues and will continue to be
      calculated on that basis until the earlier of October 31, 2011, or
      when the Company ceases the use of the Brink's brand name and
      terminates its brand license agreement. The non-GAAP financial
      results above have been adjusted to calculate the results as if the
      royalty rate had been approximately 1.25 percent of revenue for all
      periods presented. The adjustment to operating profit for the three
      and six months ended June 30, 2008 is $7.5 million and $14.6 million,
      respectively. The adjustment to net income for the three and six
      months is $4.6 million, or $0.10 per share earnings on a diluted
      basis, and $8.8 million, or $0.19 per share earnings on a diluted
      basis, respectively.
  (b) New brand development expenses for the three and six months ended
      June 30, 2009 were $2.2 million, or $0.03 per share on a diluted
      basis, and $3.3 million, or $0.05 per share on a diluted basis,
      respectively.  The non-GAAP figures above have been adjusted to
      exclude the effect of these expenses.
  (c) In 2008, the non-cash accounting correction increased operating
      profit by $2.4 million, net income by $1.5 million, and earnings per
      share by $0.03 for the three and six months ended June 30, 2008. In
      2009, the non-cash litigation charges for the three and six months
      ended June 30, 2009 were $0.5 million, or $0.01 per share earnings
      on a diluted basis, and $4.5 million, or $0.06 per share earnings
      on a diluted basis, respectively. The non-GAAP figures above have
      not been adjusted to exclude the effect of these items.


  Metrics


Monthly recurring revenue ("MRR") rose 8.4 percent during the quarter to $42.6 million, primarily driven by a 5.2 percent increase in ending subscribers and a 3.0 percent increase in monthly recurring revenue per ending subscriber.

Adjusted EBITDA from recurring services for the second quarter rose to $84.0 million compared to $80.7 million in the year-ago quarter. Adjusted EBITDA from recurring services for the second quarter was reduced $2.2 million by the aforementioned brand development expenses.

Please see the attached schedules for a more detailed explanation of these non-GAAP measures and a reconciliation of these non-GAAP measures to their closest GAAP counterparts.

Other Information

The Company ended the quarter with net subscriber additions of approximately 16,700 as compared to approximately 21,900 in the same quarter last year.  Approximately 42,700 new customer systems were installed during the second quarter of 2009 compared to approximately 44,200 installations in the same period one year ago. The lower volume of installations continues to reflect the weakness in the overall economy and housing market.

The annualized disconnect rate for the second quarter was 7.8 percent, up from 7.1 percent in the prior year. The increase is the result of more customers requesting termination of service and an increase in financial write offs of customer accounts. Customers continue to cite household financial pressure as a major reason for terminating service.  The trailing twelve month disconnect rate at the end of the second quarter was 7.9 percent, up from 6.7 percent in the prior year.

The effective income tax rate for the second quarter was 39.2 percent, compared to 38.2 percent in the prior year period.

Capital expenditures totaled $45.9 million in the second quarter of 2009 compared to $44.3 million in the comparable quarter of the prior year.

As of June 30, 2009, cash and cash equivalents totaled $103.2 million compared to $83.0 million at March 31, 2009. The Company has no long-term debt and has not borrowed on its credit facility.

The Company launched its new brand, Broadview Security, on June 30, 2009, and is progressing with its plan to market the new brand and build brand recognition. For the full year 2009, the Company expects to spend approximately $25 million for the development, marketing and conversion costs of the new brand.    The Company spent $1.1 million in the first quarter of 2009 and $2.2 million in the second quarter. Spending in the second half of 2009 will vary based upon the reception and awareness of the new brand.  The Company currently expects to spend between $9 million and $12 million in each of the third and fourth quarters. The incremental spending associated with the new brand is anticipated to be funded using cash on hand and cash generated from operations.

Financial Outlook

For full year 2009, the Company continues to expect revenue growth to be in the mid to upper single digit range, driven by mid single digit growth in the subscriber base. The Company expects growth in GAAP operating profit.   The full year disconnect rate is expected to range between 7.8 percent and 8.3 percent.

Conference Call

At 10:00 a.m. CT (11:00 a.m. ET) on Wednesday August 5, 2009, the Company will host a conference call to discuss second quarter 2009 results. Interested parties can listen to the conference call by dialing 888-680-0860 (domestic) or 617-213-4852 (international) using pass code 75120678, or via live webcast at http://www.investors.broadviewsecurity.com/ under the 'Investor Information' tab. Please dial-in at least five minutes prior to the start of the call. Dial-in replay will be available through August 19, 2009 by calling 888-286-8010 (domestic) or 617-801-6888 (international) using the replay pass code 26009900. A webcast replay will also be available at http://www.investors.broadviewsecurity.com/.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. We disclaim any intention to, and undertake no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. These risks, uncertainties and contingencies, many of which are beyond our control, include, but are not limited to risks inherent in our Spin-off from our former parent corporation, including increased costs and reduced profitability associated with operating as an independent company, the demand for our products and services, the ability to identify and execute further cost and operational improvements and efficiencies in our core business, the actions of competitors, our ability to successfully build and market our new brand, our ability to identify strategic opportunities and integrate them successfully, our ability to maintain subscriber growth, the number of household moves, the level of home sales or new home construction, potential instability in housing credit markets, our estimated reconnection experience, our ability to cost-effectively develop or incorporate new systems or technology in a timely manner, our ability to balance the cost of acquiring customers with the profit from serving existing customers, our ability to keep disconnect rates relatively low, the availability and cost of capital, and general business conditions. For additional risks and uncertainties that could impact our forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2008, including but not limited to the discussion under "Risk Factors" therein, filed with the SEC, which you may view at http://www.sec.gov/.

About Brink's Home Security Holdings, Inc.

Brink's Home Security Holdings, Inc. (NYSE:CFL), operating as Broadview Security, headquartered in Irving, Texas, is one of the  premier providers of security system monitoring services for residential and commercial properties in North America. The Company operates throughout the United States and Western Canada and services over 1.3 million customers. For more information, please visit http://www.broadviewsecurity.com/ or http://www.brinkshomesecurityholdings.com/.

The Company spun-off as an independent publicly-traded company on October 31, 2008 and began trading on the New York Stock Exchange on November 3, 2008 under the symbol "CFL," which reflects the Company's mission statement of creating "Customers for Life".

                             BRINK'S HOME SECURITY HOLDINGS, INC.
                                      and subsidiaries

                      Condensed Consolidated Statements of Income
                                         (Unaudited)

                                   Three Months Ended    Six Months Ended
  (In millions, except                   June 30,           June 30,
   per share amounts)                 2009      2008      2009      2008

  Revenues                          $140.0     133.9     276.0     261.7

  Expenses:
  Cost of revenues (a)                67.9      72.9     133.1     142.8
  Selling, general and administrative
   expenses                           45.4      36.1      90.9      72.8
      Total expenses                 113.3     109.0     224.0     215.6
  Other operating income, net          0.8       0.4       0.6       0.4

  Operating profit                    27.5      25.3      52.6      46.5

  Interest expense, net                0.2       0.2       0.1       0.4
  Income before income taxes          27.3      25.1      52.5      46.1
  Provision for income taxes          10.7       9.6      20.7      17.8

  Net income                         $16.6      15.5      31.8      28.3

  Earnings per common share (b):
      Basic                          $0.36      0.34      0.69      0.62
      Diluted                         0.36      0.34      0.69      0.62
  Weighted-average common shares
   Outstanding (b) :
      Basic                           45.8      45.8      45.8      45.8
      Diluted                         46.0      45.9      45.9      45.9

  (a) Cost of Revenues includes royalty expense charged to the Company by
      its former parent company for use of the Brink's brand name.  The rate
      utilized for fiscal 2008 for the months January through October was a
      rate of 7 percent of revenues in the United States and 3 percent of
      revenues outside the United States. However, for the months of
       November and December 2008, the rate utilized was approximately 1.25
      percent of revenues for both within and outside of the United States.
      Similarly, the rate used for the first and second quarters of 2009
      was approximately 1.25 percent of revenues and will continue to be
      approximately 1.25 percent until the earlier of October 31, 2011 or
      when the Company ceases the active use of the Brink's brand name.
  (b) For the period ended June 30, 2009, basic earnings per share ("EPS")
      is computed by dividing net income by the weighted average number of
      common shares outstanding for the period ended June 30, 2009. Diluted
      EPS is calculated in a similar manner, but includes the dilutive
      effect of stock options and restricted stock units outstanding as of
      June 30, 2009. Basic and diluted earnings per share for the period
      ended June 30, 2008 were computed on a pro forma basis using the
      average number of shares of the Company's common stock outstanding
      from October 31, 2008 to December 31, 2008. The number of diluted
      shares used in the calculation is based on the number of shares of
      the Company's common stock outstanding plus the estimated potential
      dilution that could have occurred if options and restricted stock
      units granted under the Company's equity-based compensation
      arrangements were exercised or converted into the Company's
      common stock.


                             BRINK'S HOME SECURITY HOLDINGS, INC.
                                      and subsidiaries

                             Supplemental Financial Information
  (Unaudited)

                                 Three Months Ended     Six Months Ended
                                        June 30,            June 30,
                                    2009       2008      2009      2008
  ($in Millions, except
   subscriber and disconnect data)

      Profit from recurring
       services                      $55.4      51.0     106.9      97.9
      Investment in new
       subscribers                   (27.9)    (25.7)    (54.3)    (51.4)
  Operating profit                   $27.5      25.3      52.6      46.5

    Monthly recurring revenues (a)                        42.6      39.3
    Adjusted EBITDA from recurring
     services (a),(b)                $84.0      80.7     162.4     157.7


    Depreciation and amortization    $22.6      21.8      44.8      42.4

    Capital expenditures             $45.9      44.3      93.1      90.1

  Other cash flow information:
    Impairment charges from subscriber
     disconnects                     $15.8      12.8      29.8      24.7
    Amortization of deferred
     revenue                          (9.8)    (11.4)    (19.1)    (20.0)
    Deferral of subscriber
     acquisition costs (current
     year payments)                   (5.6)     (5.8)    (11.1)    (12.1)
    Deferral of revenue from new
     subscribers (current year
     receipts)                        10.3      11.6      20.6      23.6

    Number of subscribers (in
     thousands):
      Beginning of period          1,321.3   1,249.6   1,301.6   1,223.9
      Installations                   42.7      44.2      85.7      88.8
      Disconnects                    (26.0)    (22.3)    (49.3)    (41.2)
      End of period                1,338.0   1,271.5   1,338.0   1,271.5
      Average number of
       subscribers                 1,330.9   1,261.4   1,320.9   1,248.9

    Disconnect rates:
      Expressed as an annualized
        percentage:                    7.8%      7.1%      7.5%      6.6%

      Annualized percentage excluding
       multi-family disconnects (c):   7.8%      6.8%      7.4%      6.4%

      Trailing twelve month
       disconnect rate (d):                                7.9%      6.7%

  (a) See "Non-GAAP Reconciliations" below.
  (b) Adjusted EBITDA from recurring services as presented is adjusted for
      the change in the royalty rate (see Non-GAAP reconciliation in
      attached schedules).  For the three months and six months ended
      June 30, 2009, Adjusted EBITDA from recurring services includes the
      effect of non-cash litigation charges (in the Non-GAAP reconciliation
      section, see footnote (b) in the  table reconciling Adjusted EBITDA
      from recurring services to operating profit.)
  (c) Multi-family disconnects do not have a material impact on the
      income statement
  (d) The trailing twelve month disconnect rate includes the impact of
      multi-family disconnects.



Reconciliation of Non-GAAP Financial Measures to Comparable U.S. GAAP Measures

(Unaudited)

Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of each non-GAAP financial measure used in this earnings release and related conference call, webcast or slide presentation to the most directly comparable GAAP financial measure.

Certain of these measures differ from GAAP in that they exclude certain amounts of royalty expense incurred by the Company on a historical basis.  Historically, the Company paid its former parent company a royalty of 7% on revenues in the United States and 3% on revenues in Canada. On November 1, 2008, the royalty rate changed to approximately 1.25% of revenues and will continue to be calculated on that basis until the earlier of October 31, 2011 or when the Company ceases the active use of the "Brink's" brand name. In deriving the non-GAAP financial measures, the historical royalty rate was calculated using a rate of approximately 1.25% and adjusting for the related tax effect.  Additionally, for the second quarter and year-to-date 2009, the Company derived non-GAAP measures by adjusting for new brand development costs incurred (and the related tax effect, where appropriate) in association with the development of the Company's new brand identity.  The Company uses two other non-GAAP financial measures: Monthly Recurring Revenue ("MRR") and Adjusted EBITDA from recurring services.  MRR differs from GAAP in that certain revenue components, which are included in GAAP revenue, are excluded from the calculation of MRR.  These components include certain revenues that are received by the Company but that are not derived from monthly contractual billing arrangements, the amortization of deferred revenue related to active subscriber accounts, and recognition of deferred revenue related to subscriber accounts that disconnect. Adjusted EBITDA from recurring services differs from GAAP in that adjustments are made to normalize royalties,  to add back non-cash expenses, and to make reductions for other non-cash income items. The Company's basis for these adjustments is described below.

Management uses these non-GAAP measures for internal reporting and forecasting purposes, for publicly providing its business outlook, and for evaluating the Company's performance. The Company has provided these non-GAAP financial measures in addition to GAAP financial results because it believes that these non-GAAP financial measures provide useful information to certain investors and financial analysts for comparison across accounting periods when evaluating the Company's historical and prospective financial performance. The Company has historically provided this or similar information and understands that some investors and financial analysts find this information helpful in analyzing the Company's margins, net income and comparing the Company's financial performance to that of its peer companies and competitors.

The Company believes that the presentation of non-GAAP measures provide investors and financial analysts with a consistent basis for comparison across accounting periods and, therefore, is useful to investors and financial analysts in helping them to better understand the Company's operating results and underlying operational trends.

These non-GAAP financial measures are not prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and may differ from the non-GAAP information used by other companies. There are significant limitations associated with the use of non-GAAP financial measures. The additional non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for, or superior to, the financial information presented in accordance with GAAP (such as operating profit, net income and earnings per share) and should not be considered measures of the Company's liquidity.

                             BRINK'S HOME SECURITY HOLDINGS, INC.
                                      and subsidiaries

                                  NON-GAAP RECONCILIATIONS
                                         (Unaudited)

  Monthly Recurring Revenues

  The following table reconciles MRR to revenues, its closest GAAP
  counterpart:

                                                   Six Months Ended
                                                        June 30,
  (In millions)                                  2009              2008

  Monthly recurring revenues for June
   ("MRR") (a)                                  $42.6              39.3
    Amounts excluded from MRR:
      Amortization of deferred revenue (b)        3.4               3.4
      Accounting Correction (c)                     -               2.0
      Other revenues (d)                          1.2               1.7
    Revenues for June on a GAAP basis:          $47.2              46.4
    January - May                               228.8             215.3
    Revenues for January - June on a GAAP
     Basis                                     $276.0             261.7

  (a) MRR is calculated based on the number of subscribers at period end
      multiplied by the average fee per subscriber received in the
      last month of the period for contracted monitoring and maintenance
      services.
  (b) Includes amortization of deferred revenue related to active
      subscriber accounts and recognition of deferred revenue related to
      subscriber accounts that disconnect.
  (c) In June 2008, an adjustment was made to correct the recognition of
      deferred revenue and deferred subscriber acquisition costs associated
      with the termination of customer relationships. The adjustment
      resulted in an increase to June 2008 revenues by $2.0 million, of
      which $0.2 million was the portion of the correction related to 2008
      and the remaining $1.8 million related to the previously reported
      annual periods  The item had no impact  on cash flow.
  (d) Revenues that are not pursuant to monthly contractual billings,
      including revenues from such sources as ad-hoc field service calls,
      product sales and installation fees not subject to deferral,
      terminated contract penalty billings for breached contracts,
      pass-through revenue (alarm permit fees, false alarm fines, etc.)
      and partial month revenues recognized from customers who disconnected
      during the last month of the period and are therefore not included in
      MRR.  This amount is reduced for adjustments recorded against revenue
      (primarily customer goodwill credits and other billing adjustments),
      and for the amount included in MRR for new customers added during the
      last month of the period for those portions of the month for which
      revenues were not recognized for such customers.



MRR is a non-GAAP financial measure used in this press release and related conference call and webcast. The Company uses MRR, a non-GAAP measure, to evaluate performance.  The Company believes the presentation of MRR is useful to investors because the measure is widely used in the industry to assess the amount of recurring revenues from subscriber fees that a monitored security alarm business produces.  This supplemental non-GAAP information should be reviewed in conjunction with the Company's consolidated statements of operations.

                            BRINK'S HOME SECURITY HOLDINGS, INC.
                                      and subsidiaries

                                   NON-GAAP RECONCILIATION
                                         (Unaudited)

  Adjusted EBITDA from recurring services

  The following table shows the reconciliation of a non-GAAP financial
  measure, Adjusted EBITDA from recurring services, to the most directly
  comparable GAAP financial measure, Operating Profit. Adjusted EBITDA from
  recurring services is used in this press release and may be used in the
  related conference call and webcast.

                                  Three Months Ended    Six Months Ended
                                        June 30,           June 30,
  (In millions)                      2009      2008      2009      2008

    Adjusted EBITDA from recurring
     services (a),(b)                $84.0      80.7     162.4     157.7
    Less: Adjustment to normalize
     royalty rate (c)                 (0.0)     (6.5)     (0.0)    (12.7)
    Less: Depreciation and
     amortization                    (22.6)    (21.8)    (44.8)    (42.4)
    Less: Impairment charges from
     subscriber disconnects          (15.8)    (12.8)    (29.8)    (24.7)
    Plus: Amortization of deferred
     revenue                           9.8      11.4      19.1      20.0
      Recurring services operating
       profit                         55.4      51.0     106.9      97.9
    Less: Investment in new
     subscribers                     (27.9)    (25.7)    (54.3)    (51.4)
      Operating Profit               $27.5      25.3      52.6      46.5

  (a) Adjusted EBITDA from recurring services is adjusted for the change
      in the royalty rate and is calculated as if the royalty rate had been
      approximately 1.25% of revenue for all periods presented.
  (b) For the three months and six months ended June 30, 2009, Adjusted
      EBITDA from recurring services includes the effect of non-cash
      litigation charges related to a previously disclosed matter
      involving an unfavorable jury award associated with a suit brought
      by a former employee. The charges for the three and six months were
      $0.5 million and $4.5 million, respectively.  The Company recently
      filed post-judgment motions in the trial court to set aside or reduce
      the verdict, or alternatively request a new trial. A hearing has been
      set for such motions. If the results of the motions are deemed
      unsatisfactory, the Company intends to file an appeal.
  (c) For comparison purposes in this table, the three months and six
      months ended June 30, 2008 were adjusted to reflect the current
      royalty rate of 1.25%. At this rate, the full adjustment for the
      three months ended June 30, 2008 would have been $7.5 million,
      $1 million of which was allocated to investment in new subscribers
      and is therefore excluded from this adjustment.  The resulting
      adjustment of $6.5 million is shown in the table.  For the six
      months ended June 30, 2008 the adjustment would have been $14.6
      million, $1.9 million of which was allocated to investment in new
      subscribers and is therefore excluded from this adjustment.  The
      resulting adjustment of $12.7 million is shown in the table.

  Note: Figures may not tie due to rounding.


                             Brink's Home Security Holdings, Inc.
                                      and subsidiaries

                          Non-GAAP Financial Measures Reconciliation
                       (In millions, except per share data - unaudited)

  The following tables show the non-GAAP financial measures used in this
  press release and related conference call and webcast reconciled to the
  most directly comparable GAAP financial measures.

                                  Three Months Ended    Six Months Ended
                                        June 30,            June 30,
  (In millions)                      2009      2008      2009      2008

    GAAP operating profit            $27.5      25.3      52.6      46.5
      Add: Adjustment to royalty
       rate (a)                        0.0       7.5       0.0      14.6
      Add: Brand Development
       Expenses                        2.2       0.0       3.3       0.0
    Non-GAAP operating profit (b)    $29.7      32.8      55.9      61.1

    GAAP net income                  $16.6      15.5      31.8      28.3
      Add: Adjustment to royalty
       rate (a)                        0.0       7.5       0.0      14.6
      Add: Brand Development
       Expenses                        2.2       0.0       3.3       0.0
      Less: Tax effects of
       adjustments                    (0.8)     (2.9)     (0.9)     (5.7)
      Non-GAAP net income (b)        $18.0      20.1      34.2      37.2

    GAAP earnings per share -
     diluted                         $0.36      0.34      0.69      0.62
      Add: Adjustment to royalty
       rate (a)                       0.00      0.16      0.00      0.32
      Add: Brand Development
       Expenses                       0.05      0.00      0.07      0.00
      Less: Tax effects of
       adjustments                   (0.02)    (0.06)    (0.02)    (0.12)
      Non-GAAP earnings per share -
       diluted (b)                   $0.39      0.44      0.74      0.82

  (a) The Company's results of operations include a royalty expense that
      was charged to the Company by its former parent company for use of
      the Brink's brand name. The rate utilized for fiscal year 2008 for
      the months January through October was a 7% rate in the United States
      and 3% outside of the United States. However, for the months of
      November and December 2008, the rate used was approximately 1.25%
      of revenue for both within and outside the United States.
  (b) Non-GAAP figures for the three months and six months ended
      June 30, 2009 as presented in the table above include the effect
      of the previously referenced non-cash litigation charges (see
      footnote (b) in the previous table reconciling Adjusted EBITDA
      from recurring services to operating profit).  The charges for
      the three months and six months were $0.5 million, or a $0.01 per
      share earnings on a diluted basis, and $4.5 million, or $0.06 per
      share earnings on a diluted basis, respectively.

  Note: Figures may not tie due to rounding.


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DATASOURCE: Brink's Home Security Holdings, Inc.



CONTACT:  Investor Relations of Brink's Home Security Holdings, Inc.,

[phone]



Web Site:  http://www.brinkshomesecurityholdings.com/ 

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