Latest / Bloomberg Intelligence / Allied Universal's Jones: Remote Video Monitoring Growth(Audio)

Transcript

Allied Universal's Jones: Remote Video Monitoring Growth(Audio) · Bloomberg Intelligence

• 0:03
  Speaker 1: Broadcasting live to New York Bloomberg even Rio to Washington,
• 0:07
  Speaker 1: d C Bloomberg, to Boston, Bloomberg, well Under to San
• 0:12
  Speaker 1: Francisco Bloomberg nine, to the countries Channel one ninet, and
• 0:17
  Speaker 1: around the globe the Bloomberg Radio Pluck dappen, Bloomberg got gone.
• 0:21
  Speaker 1: This is taking stock Um Kathleen Hayes along with pim Fox.
• 0:26
  Speaker 1: A merger Allied Barton Security Services Universal Services of America
• 0:31
  Speaker 1: finalized today, creating Allied Universal, the largest security company in
• 0:35
  Speaker 1: North America. Coming up, CEO, Steve Jones. Do you know
• 0:39
  Speaker 1: that the security services industry is over twenty five billion
• 0:44
  Speaker 1: dollars each year in the United States. We're gonna be
• 0:47
  Speaker 1: talking about the security industry with the chief executive Allied Universal.
• 0:52
  Speaker 1: Right now, Let's go to Charlie Palett to the Bloomberg
• 0:54
  Speaker 1: news room with the Bloomberg business And thank you Pam,
• 0:57
  Speaker 1: Thank you, Kathleen. We are brought to you by National
• 1:00
  Speaker 1: lt providers of one hundred percent satisfaction guaranteed New York
• 1:04
  Speaker 1: City Realty Investments see them at n r i A.
• 1:07
  Speaker 1: Dot net stocks are trading law retreating from a fresh
• 1:12
  Speaker 1: record intra day records, falling crude prices sparked a deepening
• 1:16
  Speaker 1: sell off in energy shares, weighing on investors confidence that
• 1:19
  Speaker 1: US growth and corporate profits will rebound. The SMP five
• 1:23
  Speaker 1: hundred indecks trading down five points now at sight, a
• 1:27
  Speaker 1: drop of three tenths of one percent. The TAO is
• 1:30
  Speaker 1: down forty nine points to drop there are three tenths
• 1:33
  Speaker 1: of one percent to eighteen thousand, three hundred eighty two
• 1:36
  Speaker 1: nastack of fifteen to fifty one seventy seven, a gain
• 1:39
  Speaker 1: of three tenths of one percent. We've got the tenure
• 1:42
  Speaker 1: down fourteen thirty seconds. The yield there one point five
• 1:45
  Speaker 1: percent gold up to ten the ounce the thirteen fifty five,
• 1:49
  Speaker 1: a gain there of two tenths of one percent. Elon
• 1:52
  Speaker 1: Musk's Tesla Motors has reached an agreement of Ice Solar
• 1:55
  Speaker 1: City for two point six billion, about three hundred million
• 1:58
  Speaker 1: less than an initial proposal, criticized as a bailout for
• 2:02
  Speaker 1: the solar company in which he is the largest shareholder.
• 2:05
  Speaker 1: So what's the thinking behind the deal? Kevin Tynan follows
• 2:08
  Speaker 1: the auto industry for Bloomberg views the idea of combining
• 2:14
  Speaker 1: your solar panel installed with your power wall install with
• 2:18
  Speaker 1: your plug in your garage for your Tesla car install
• 2:22
  Speaker 1: um and then doing that all at the same shop
• 2:25
  Speaker 1: where you're going to sign the papers for your Tesla
• 2:28
  Speaker 1: Electric vehicle. Whether it's just three and S or an
• 2:31
  Speaker 1: X makes sense. Tesla shares they are trading down two
• 2:35
  Speaker 1: point on Solar City, down seven point eight percent, and
• 2:40
  Speaker 1: the three two on Wall Street. Let's look at the
• 2:42
  Speaker 1: other stories making news. Thank you Charlie from the Bloomberg Newsroom.
• 2:47
  Speaker 1: I'm Jill Schneider. This news update is brought to you
• 2:49
  Speaker 1: by Blue Jeans Enterprise Video Cloud. See faces, emotions, energy,
• 2:54
  Speaker 1: see the people your team's video from any device. Start
• 2:57
  Speaker 1: a free thirty day trial at blue jeans dot com
• 3:00
  Speaker 1: and click the radio Mike. Blue Jeans Work Smarter, Connect Better.
• 3:04
  Speaker 1: Donald Trump and Hillary Clinton will start getting top secret
• 3:07
  Speaker 1: intelligence briefings as early as this week. National Intelligence Director
• 3:12
  Speaker 1: James Clapper says the briefers are ready and the top
• 3:14
  Speaker 1: three issues will likely be Islamic extremism, Russia, and cyber threats.
• 3:19
  Speaker 1: Federal health officials are advising pregnant women to avoid travel
• 3:22
  Speaker 1: to a small section of Miami now that fourteen cases
• 3:26
  Speaker 1: of zeka transmitted from local mosquitoes have been detected. CDC
• 3:30
  Speaker 1: director Dr Tom Frieden has more. We do expect that
• 3:33
  Speaker 1: additional individual infections will be reported. There are undoubtedly more
• 3:37
  Speaker 1: infections because most people infected with secret don't have symptoms.
• 3:42
  Speaker 1: Two people are dead after flash floods swept through Ellicott City, Maryland, Saturday.
• 3:46
  Speaker 1: Howard County Executive Alan Kittleman toward the damage. It looks
• 3:50
  Speaker 1: like a movie. More than six inches of rain fell
• 3:55
  Speaker 1: in just two hours. Protesters gathered in Lower Manhattan today
• 3:58
  Speaker 1: calling for an end to police sprutality and the firing
• 4:01
  Speaker 1: of nyp D Commissioner William Bratten. About one hundred members
• 4:05
  Speaker 1: of the group Millions March NYC went to City Hall
• 4:08
  Speaker 1: Park to push for greater police accountability. They're calling for
• 4:12
  Speaker 1: an end to Bratton's Broken Windows policy, which is aimed
• 4:15
  Speaker 1: at cracking down on low level crimes as a way
• 4:17
  Speaker 1: to prevent more serious crime in urban neighborhoods. Global News
• 4:21
  Speaker 1: twenty four hours a day, powered by more than journalists
• 4:24
  Speaker 1: and analysts in more than one twenty countries. I'm Jil Schneider,
• 4:28
  Speaker 1: and this is Bloomberg Charlie, and we thank you and
• 4:31
  Speaker 1: again recapping SMP five hundred index down five to a
• 4:37
  Speaker 1: drop there of three tenths of one percent. I'm Charlie Peloton,
• 4:41
  Speaker 1: that's of Lombard Business Flash. You're with Kathleen Blobd Radio security.
• 4:50
  Speaker 1: In an era of potential terror attacks, with cybersecurity and
• 4:55
  Speaker 1: so many issues like this on our minds. Certainly it
• 4:57
  Speaker 1: is a very very timely moment for Allied Barton Security
• 5:02
  Speaker 1: Services and Universal Services of America as they merged to
• 5:06
  Speaker 1: become Allied Universal. It's the largest security company in North America,
• 5:10
  Speaker 1: over a hundred forty security officers and the revenues of
• 5:13
  Speaker 1: four and a half billion dollars. Privately held company. Very
• 5:16
  Speaker 1: happy to welcome to the show now Steve Jones. He's
• 5:19
  Speaker 1: the new CEO of Allied Universal, joining us from Santa Ana, California. Steve, welcome,
• 5:25
  Speaker 1: thank you, thank you. So tell us about this merger
• 5:29
  Speaker 1: big company. Now, what brought it about? Well, the two companies, uh,
• 5:34
  Speaker 1: you have have known each other and compete against each
• 5:36
  Speaker 1: other for the last twenty years, and uh, you know,
• 5:39
  Speaker 1: we just the companies were so similar with our cultures
• 5:44
  Speaker 1: and so customer focused. And what brought it about was,
• 5:48
  Speaker 1: you know, for the last four or five years we
• 5:50
  Speaker 1: tried to get something like this done and we were
• 5:54
  Speaker 1: just you weren't able to do it, and now just
• 5:57
  Speaker 1: seemed to be at the right time. I think, you know,
• 5:59
  Speaker 1: with you know that you look at the major markets
• 6:02
  Speaker 1: across the US and the sub markets across the US,
• 6:04
  Speaker 1: the company is just they had a great overlap and
• 6:08
  Speaker 1: where in in certain certain vertical markets where we were strong,
• 6:12
  Speaker 1: Allied wasn't in another vertical markets where they were strong,
• 6:15
  Speaker 1: we weren't. So we just really complimented each other and
• 6:18
  Speaker 1: and we just felt like, you know this, you know,
• 6:20
  Speaker 1: one plus one in this in this situation was going
• 6:23
  Speaker 1: to equal three or four. You know. So it's just
• 6:25
  Speaker 1: it was just there's the right time and there's a
• 6:27
  Speaker 1: right opportunity, and it's it's the the two companies were
• 6:30
  Speaker 1: just were so similar in so many ways. Steve, I
• 6:33
  Speaker 1: wonder if you could describe for people the difference between
• 6:37
  Speaker 1: some of the security businesses that exist. Because there's the
• 6:40
  Speaker 1: security technology industry, there is the services market. Tell us
• 6:45
  Speaker 1: about how your company fits in and where you see
• 6:48
  Speaker 1: the growth. So there there there, Yeah, there's a variety
• 6:52
  Speaker 1: of different security companies. There's you know, security consulting, there's
• 6:57
  Speaker 1: risk assessments. There's bodyguard security. Then there's what we what
• 7:02
  Speaker 1: we really specialize in, which is the man guardings of
• 7:05
  Speaker 1: the security guards services that protect businesses and malls and
• 7:09
  Speaker 1: health care facilities and Fortune five companies and commercial real
• 7:13
  Speaker 1: estate facilities all across the country. UH. There's also electronic
• 7:17
  Speaker 1: security systems, which is also another space that we operate in.
• 7:20
  Speaker 1: So that's those are the type of businesses where we
• 7:23
  Speaker 1: provide security cameras and access control systems. So when you
• 7:27
  Speaker 1: go into a building and you swipe an access car,
• 7:29
  Speaker 1: those are systems that we would either we would sell
• 7:32
  Speaker 1: and service and install and maintain and manage for for customers.
• 7:37
  Speaker 1: And then there's UM And then there's the other side
• 7:40
  Speaker 1: of the industry, which is which is relatively new, which
• 7:43
  Speaker 1: is remote video monitoring where you're using technology now to
• 7:48
  Speaker 1: monitor video cameras and to tell uh, whether it's the
• 7:53
  Speaker 1: police departments or whether it's security companies, UH, to tell
• 7:56
  Speaker 1: them when when something is not right and when they
• 7:59
  Speaker 1: should respond. So we have a state of the art
• 8:01
  Speaker 1: remote video monitoring center in Dallas, Texas that that we're
• 8:05
  Speaker 1: we're also in that space. So we're in kind of
• 8:08
  Speaker 1: three of three spaces. And the security security side, which
• 8:11
  Speaker 1: is demand guarding systems and technology, and then the remote
• 8:14
  Speaker 1: video monitoring and of course remote video monitoring and drones
• 8:18
  Speaker 1: and all that kind of technology. I assume claid an
• 8:20
  Speaker 1: increasingly important role. But I have to ask you, because
• 8:23
  Speaker 1: all of your literature and promotion touts your employees, and
• 8:26
  Speaker 1: I'm sure they are top nuts. You don't They're paid
• 8:28
  Speaker 1: what a fi'clock glass door? Um, maybe about ten bucks
• 8:32
  Speaker 1: an hour for many positions. There's a big movement on
• 8:34
  Speaker 1: now in some parts of the country to get the
• 8:37
  Speaker 1: minimum wage to fifteen dollars an hour. Where do you
• 8:40
  Speaker 1: stand on paying your workers more? And would that hurt
• 8:42
  Speaker 1: your bottom line if that were passed through? So look,
• 8:46
  Speaker 1: you know it's you're you're absolutely right. I mean, the
• 8:48
  Speaker 1: pay rates are anywhere from ten to fifteen dollars an hour.
• 8:50
  Speaker 1: Kind of depends on the marketplace. Every market across the
• 8:53
  Speaker 1: country is different, as you you probably aware, So you know,
• 8:58
  Speaker 1: it's it's kind of market by market specific on what
• 9:00
  Speaker 1: the pay raids need to be. We uh, you know, look,
• 9:03
  Speaker 1: we we we want to pair our employees more. Uh.
• 9:07
  Speaker 1: You know, it's a function of how much you can
• 9:09
  Speaker 1: charge your your customers for your services. And so if
• 9:13
  Speaker 1: the entire market moves uh and you know the h
• 9:16
  Speaker 1: and they raise minimum age in a marketplace, then you know,
• 9:20
  Speaker 1: for us, that's just you know, it's an opportunity that
• 9:22
  Speaker 1: you know, we're gonna uh, you know, we're going to
• 9:24
  Speaker 1: pay all the employees more and uh and you know
• 9:27
  Speaker 1: we're gonna have to pass that on to the customers.
• 9:29
  Speaker 1: But you know, it's it's it's it's very difficult right now.
• 9:32
  Speaker 1: The economy and in certain certain certain cities across the
• 9:35
  Speaker 1: country is is very strong, and other others it's it's
• 9:39
  Speaker 1: not as strong. But in those in those markets that
• 9:41
  Speaker 1: are very very strong, you know, New York, San Francisco,
• 9:43
  Speaker 1: the Silicon Valley, Uh, some parts of Texas, it's hard
• 9:47
  Speaker 1: to find people. So you know, too, if we can
• 9:49
  Speaker 1: increase the pay raids to to to find people and
• 9:51
  Speaker 1: to get better people, that's what we need, Steve, just quickly.
• 9:55
  Speaker 1: Taser International shares are up more than sixty eight percent
• 9:58
  Speaker 1: so far this year. Is there one particular product that
• 10:02
  Speaker 1: you have seen gain even greater acceptance so far this year? Uh?
• 10:08
  Speaker 1: You know that, um, you really, you know, the remote
• 10:11
  Speaker 1: video monitoring and then you know there's several companies that
• 10:14
  Speaker 1: out there they're doing it is becoming more and more popular.
• 10:17
  Speaker 1: So if you if you if you think about it, uh,
• 10:19
  Speaker 1: you know, you used to have people that just would
• 10:21
  Speaker 1: sit in front of cameras and try to watch you ten, fifteen,
• 10:24
  Speaker 1: up to a hundred cameras, which you know, nobody can
• 10:27
  Speaker 1: watch a hunder cameras at one time, so you use uh,
• 10:29
  Speaker 1: you know, you have you watch several at one time
• 10:32
  Speaker 1: and you switch back and forth. Now with the with
• 10:34
  Speaker 1: the rollout of remote video monitoring and using video analytics
• 10:38
  Speaker 1: to watch those, that is a very very hot market.
• 10:40
  Speaker 1: I can tell you that business for us is you know,
• 10:43
  Speaker 1: is growing you know, to a year. So it's a
• 10:46
  Speaker 1: it's a it's a it's a huge, huge opportunity. And
• 10:49
  Speaker 1: thanks very much. As Steve Jones, chief executive Allied Universal
• 10:54
  Speaker 1: talking about the combination with Allied part and Security Services,
• 10:58
  Speaker 1: this is Bloomberg. Bloombertaking stock is brought to by land Rover.
• 11:03
  Speaker 1: When towers seem like trees and roads become rivers, the raindrower,
• 11:06
  Speaker 1: reloked as they are, to guide you through the twists
• 11:08
  Speaker 1: and turns of the urban jungle. Is that your Tristate
• 11:10
  Speaker 1: area Landrover retailer for special offers. Land Rover above, Beyond,