UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in charter)
|
| |||
(State or other jurisdiction of |
| (Commission File Number) |
| (IRS Employer Identification No.) |
incorporation) |
(Address of principal executive offices)
Registrant’s telephone number, including area code (
(Former name and former address if changed from last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (section 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 6, 2024, the registrant issued a press release to report results for the fiscal quarter ended March 31, 2024. This press release is furnished as Exhibit 99.1.
The information in this Current Report on Form 8-K, including the exhibit attached hereto, is furnished pursuant to Item 2.02, and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective May 2, 2024, Kevin Buchel has been promoted to President & Chief Operating Officer while maintaining his position as Chief Financial Officer. Mr. Buchel will continue to report directly to NAPCO Founder, Richard Soloway, who will continue as Chairman & CEO. Also, Effective May 2, 2024, Michael Carrieri has been promoted to Executive Vice President of Engineering & Chief Technology Officer. On May 2, 2024, Andrew Vuono was appointed as the Company’s Senior Vice President of Finance and Chief Accounting Officer. Mr. Vuono is expected to assume such responsibilities on June 3rd.
On May 2, 2024, the registrant issued a press release announcing the foregoing changes. This press release is furnished as Exhibit 99.2.
Item 7.01. REGULATION FD DISCLOSURE
On May 2, 2024, the Company’s Board of Directors declared a cash dividend of $.10 per share payable on June 24, 2024, to stockholders of record on June 3, 2024. Information regarding this declaration is included in the press release furnished as Exhibit 99.1.
Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits:
99.1 |
| Press Release issued by Napco Security Technologies, Inc. dated May 6, 2024. |
99.2 |
| Press Release issued by NAPCO Security Technologies, Inc. dated May 2, 2024. |
10 4 | Cover Page Interactive Data File (formatted as Inline XBRL). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.
| NAPCO SECURITY TECHNOLOGIES, INC. | ||
| (Registrant) | ||
|
|
|
|
Date: May 6, 2024 | By: | /s/ Kevin S. Buchel | |
|
| Kevin S. Buchel | |
|
| President, Chief Operating Officer & Chief Financial Officer | |
Exhibit 99.1
NAPCO Reports Record Revenues, Net Income and Adjusted EBITDA* for Q3 of Fiscal 2024
-Net Sales for the Quarter Increase 13% to $49.3 Million-
-Net Income for the Quarter Increases 38% to $13.2 Million-
-Adjusted EBITDA* for the Quarter Increases 37% to $15.6 Million-
-3rd Quarter Recurring Service Revenues Increase 29% to $19.5 Million With a Gross Margin of 92%-
-Board Declares Quarterly Dividend of $0.10 per share-
AMITYVILLE, N.Y., May 6, 2024 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced financial results for its third quarter of fiscal 2024.
Financial Highlights:
| ● | Net sales for the quarter increased 13% to $49.3 million (the highest quarterly sales in the Company's history) as compared to $43.5 million for the same period last year. Net sales for the nine months ended March 31, 2024 increased 10% to a nine month record $138.5 million as compared to $125.3 million last year. |
| ● | Recurring service revenue ("RSR") for the quarter increased 29% to $19.5 million as compared to $15.1 million for the same period last year. Recurring service revenue for the nine months ended March 31, 2024 increased 26% to $55.4 million as compared to $43.8 million last year. Recurring service revenue had a prospective annual run rate of approximately $81 million based on April 2024 recurring revenues. |
| ● | Gross margin for recurring service revenue increased to a record level 92% for the quarter and 91% for the nine months as compared to 90% and 89%, respectively, for the same periods last year. |
| ● | Gross margin for equipment revenues was 29% for the third quarter compared to 27% in last year's 3rd quarter. Gross margin for equipment revenues was 29% for the nine months ended March 31, 2024, compared to 14% for the same period last year. |
| ● | Net income for the quarter increased 38% to a quarterly record $13.2 million as compared to $9.5 million for the same period a year ago. Net income for the nine months ended March 31, 2024 increased 119% to a nine month record $36.3 million as compared to $16.6 million last year. |
| ● | Earnings per share (diluted) for the quarter increased 38% to $0.36 as compared to $0.26 for the same period a year ago. Earnings per share (diluted) for the nine months ended March 31, 2024 increased 118% to $0.98 as compared to $0.45 last year. |
| ● | Adjusted EBITDA* for the quarter increased 37% to a quarterly record $15.6 million as compared to $11.3 million for the same period a year ago. Adjusted EBITDA* for the nine months ended March 31, 2024 increased 105% to a nine month record $43.5 million as compared to $21.3 million for the same period last year. |
| ● | Adjusted EBITDA per share (diluted)* for the quarter increased 35% to $0.42 as compared to $0.31 for the same period a year ago. Adjusted EBITDA per share (diluted)* for the nine months ended March 31, 2024 increased 107% to $1.18 per diluted share as compared to $0.57 last year. |
| ● | Cash and cash equivalents, other investments and marketable securities were $87.5 million at March 31, 2024 as compared to $66.7 million at June 30, 2023, a 31% increase. The Company had no debt as of March 31, 2024. |
| ● | Cash Provided by Operating Activities for the nine months ended March 31, 2024 was $31 million as compared to $12.4 million for the same period last year. |
| ● | The Company has declared a quarterly dividend of $0.10 per share to be paid on June 24, 2024 to shareholders of record on June 3, 2024. |
Richard Soloway, Chairman and CEO, commented, "The third quarter of fiscal 2024 was the strongest quarter in our Company's history. Revenue was $49.3 million, which was the highest quarterly sales we ever achieved and was the fourteenth consecutive quarter of record sales for a quarterly reporting period. Our net income of $13.2 million and Adjusted EBITDA* of $15.6 million were also quarterly record-breakers. Equipment revenue grew at 5% for the quarter, with gross margins on such sales sequentially remaining consistent at 29% each of the last two quarters. Recurring service revenues, which increased 29%, was a major contributor to the year-over-year overall sales and earnings growth and represents 40% of total revenue. Gross margin for recurring service revenues was the highest in our history, at 92% and when combined with gross margin on equipment revenues of 29%, the total gross margins for Q3 amounted to 54%, which compared to 49% for last year's Q3.
We were also pleased with the increase in the recurring revenues annual run rate, which increased to $81 million based on April 2024 recurring revenues, compared to an annual run rate of $76.5 million based on January 2024 recurring revenues.
Net income of $13.2 million, besides being a Q3 record breaker, represents 27% of our net sales. Adjusted EBITDA* of $15.6 million, also a Q3 record, represents an Adjusted EBITDA* margin of 32%.
Our balance sheet continues to get stronger, with cash and cash equivalents, other investments and marketable securities increasing 31% to $87.5 million as compared to $66.7 million at June 30, 2023, We have no debt and the net cash provided by operating activities for the nine months ended March 31, 2024 was also strong, amounting to $31.0 million.
Our Alarm Lock and Marks locking hardware lines continue to see growth in school and classroom security, healthcare, and retail loss-prevention, as well as in multi-dwelling commercial and residential applications. Locking sales in Q3 grew approximately 16% compared to last year and approximately 10% compared to Q2 and represents 66% of hardware sales. We continue to remain focused on further penetrating each of these markets.
We recently announced the introduction of Prima by NAPCO, a new All-in-One Panel for security, fire, video and connected home. Our goal is for Prima to address an important mass segment of the security market, including residential and small business systems. With built-in Wi-Fi/cellular radio communications, customer alert notifications, and video and smart home subscription options for each -installed system, the security dealer, as well as the Company, can add more recurring-revenue generating accounts.
NAPCO's record-breaking results for Q3 of fiscal year 2024, was primarily the result of the continued growth and profitability from recurring revenues as well as the strong sales from our Alarm Lock and Marks locking product lines. Radio sales in Q3 improved over Q2, increasing by approximately 2%. We expect radio sales to continue to be a key contributor to our hardware sales and continue to lead to the continued growth of our highly profitable recurring revenues."
Mr. Soloway concluded, "We are nine months through fiscal 2024 and while we have already generated net income of $36.3 million, Adjusted EBITDA* of $43.5 million and our Adjusted EBITDA* margin is now 31%, there is more work to be done. While we continue to be encouraged with the gross margin for hardware sales of 29%, we believe this could improve further in Q4 and beyond. Our strong net income and Adjusted EBITDA* margins indicate the financial strength of our business. As such, we are pleased to continue our dividend program and we will be paying another dividend of $0.10 per share on June 24, 2024. As always, we will strive to accomplish our goal of continued financial strength, product innovation, technical superiority, and strong profitability, for the balance of fiscal 2024 and beyond".
Financial Results
Net sales for the quarter increased 13% to $49.3 million (the highest quarterly sales in the Company's history), as compared to $43.5 million for the same period one year ago. Net sales for the nine months ended March 31, 2024 increased 10% to a nine month record $138.5 million, as compared to $125.3 million for the same period one year ago. Research and development costs for the quarter increased 19% to $2.8 million, or 6% of sales, as compared to $2.3 million or 5% of sales for the same period a year ago. Research and development costs for the nine months ended March 31, 2024 increased 11% to $7.7 million, or 6% of sales, as compared to $7.0 million or 6% of sales for the same period a year ago. Selling, general and administrative expenses for the quarter increased 10% to $9.2 million or 19% of net sales, as compared to $8.4 million, or 19% of sales for the same period last year. Selling, general and administrative expenses for the nine months ended March 31, 2024 increased 6% to $26.3 million or 19% of net sales, as compared to $24.7 million, or 20% of sales for the same period last year.
Operating income for the quarter increased 38% to $14.5 million as compared to $10.5 million for the same period last year. Operating income for the nine months ended March 31, 2024 increased 115% to $39.9 million as compared to $18.5 million for the same period last year. Net income for the quarter increased 38% to a quarterly record $13.2 million, or $0.36 per diluted share, as compared to $9.5 million, or $0.26 per diluted share, for the same period last year and represents 27% of net sales. Net income for the nine months ended March 31, 2024 increased 119% to a nine month record of $36.3 million or $0.98 per diluted share as compared to $16.6 million or $0.45 per diluted share for the same period last year and represents 26% of net sales.
Adjusted EBITDA* for the quarter increased 37% to a quarterly record $15.6 million, or $0.42 per diluted share, as compared to $11.3 million, or $0.31 per diluted share for the same period last year and equates to an Adjusted EBITDA* margin of 32%. Adjusted EBITDA* for the nine months ended March 31, 2024 increased 105% to a nine month record $43.5 million, or $1.18 per diluted share, as compared to $21.3 million, or $0.57 per diluted share for the same period last year and equates to an Adjusted EBITDA* margin of 31%.
Balance Sheet Summary
As of March 31, 2024, the Company had $87.5 million in cash and cash equivalents, other investments and marketable securities as compared to $66.7 million as of June 30, 2023. Working capital (defined as current assets less current liabilities) was $138.3 million at March 31, 2024 as compared with working capital of $111.7 million at June 30, 2023. Current ratio (defined as current assets divided by current liabilities) was 7.9:1 at March 31, 2024, and 6.7:1 at June 30, 2023.
Conference Call Information
Management will conduct a conference call at 11 a.m. ET today, May 6, 2024, in order to participate please go to the Investor Relations section of Company's website at https://investor.napcosecurity.com. Alternatively, interested parties may participate in the call by dialing, in the (US) 1-800-836-8184 or for international callers, 1-646-357-8785. A replay of the webcast will be available on the Investor Relations section of the Company's website.
About NAPCO Security Technologies, Inc.
NAPCO Security Technologies, Inc., is one of the leading manufacturers and designers of high-tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems as well as a provider of school safety solutions, The Company consists of four Divisions: NAPCO, plus three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. Headquartered in Amityville, New York, its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for innovation, technical excellence and reliability, positioning the Company for growth in the multi-billion dollar and rapidly expanding electronic security market. For additional information on NAPCO, please visit the Company's web site at http://www.napcosecurity.com.
Safe Harbor Statement
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, but are not limited to, statements relating to the impact of COVID-19 pandemic; supply chain challenges and developments; the growth of recurring service revenues and annual run rate; the strength of our balance sheet; our expectations regarding future results; the introduction of new access control and locking products; the opportunities for school security products; business trends , including the replacement of 3G radios, and our ability to execute our business strategies. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those risk factors set forth in the Company's filings with the Securities and Exchange Commission, such as our annual report on Form 10-K and quarterly reports on Form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and the Company undertakes no duty to update such information, except as required under applicable law.
*Non-GAAP Financial Measures
Certain non-GAAP measures are included in this press release, including non-GAAP operating income, Adjusted EBITDA and Adjusted EBITDA per share (diluted). We define Adjusted EBITDA as GAAP net income plus income tax expense, net interest expense, non-cash stock-based expense, non-recurring legal expense, other non-recurring income and depreciation and amortization expense. Non-GAAP operating income does not include amortization of intangibles or stock-based compensation expense. These non-GAAP measures are provided to enhance the user's overall understanding of our financial performance. By excluding these charges our non-GAAP results provide information to management and investors that is useful in assessing NAPCO's core operating performance and in comparing our results of operations on a consistent basis from period to period. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial measures set forth above.
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)
| | | | | | | |
|
| March 31, 2024 |
| June 30, 2023 |
| ||
| | (in thousands, except share data) | | ||||
CURRENT ASSETS | | |
|
| |
| |
Cash and cash equivalents | | $ | 55,518 | | $ | 35,955 | |
Investments - other | | | 26,671 | | | 25,660 | |
Marketable securities | | | 5,348 | | | 5,136 | |
Accounts receivable, net of allowance for credit losses of $105 and $131 as of March 31, 2024 and June 30, 2023, respectively | |
| 30,273 | |
| 26,069 | |
Inventories, net | |
| 37,010 | |
| 35,062 | |
Income tax receivable | | | — | | | 75 | |
Prepaid expenses and other current assets | |
| 3,379 | |
| 3,402 | |
Total Current Assets | |
| 158,199 | |
| 131,359 | |
Inventories - non-current, net | |
| 13,093 | |
| 13,287 | |
Property, plant and equipment, net | |
| 8,978 | |
| 9,308 | |
Intangible assets, net | |
| 3,686 | |
| 3,939 | |
Deferred income taxes | | | 4,983 | | | 2,652 | |
Right-of-use asset | | | 5,564 | | | 5,797 | |
Other assets | |
| 289 | |
| 312 | |
TOTAL ASSETS | | $ | 194,792 | | $ | 166,654 | |
| | | | | | | |
CURRENT LIABILITIES | | |
|
| |
| |
Accounts payable | | $ | 6,913 | | $ | 8,061 | |
Accrued expenses | |
| 9,737 | |
| 8,079 | |
Accrued salaries and wages | |
| 3,095 | |
| 3,546 | |
Accrued income taxes | |
| 203 | |
| — | |
Total Current Liabilities | |
| 19,948 | |
| 19,686 | |
Accrued income taxes | |
| 1,102 | |
| 1,110 | |
Long term right-of-use liability | | | 5,556 | | | 5,689 | |
TOTAL LIABILITIES | |
| 26,606 | |
| 26,485 | |
COMMITMENTS AND CONTINGENCIES (Note 13) | |
|
| |
|
| |
STOCKHOLDERS’ EQUITY | | | | | | | |
Common Stock, par value $0.01 per share; 100,000,000 shares authorized as of March 31, 2024 and June 30, 2023; 39,766,354 and 39,663,812 shares issued; and 36,872,639 and 36,770,097 shares outstanding, respectively. | | | 398 | | | 397 | |
Additional paid-in capital | |
| 22,855 | |
| 21,553 | |
Retained earnings | |
| 164,454 | |
| 137,740 | |
Less: Treasury Stock, at cost (2,893,715 shares) | |
| (19,521) | |
| (19,521) | |
TOTAL STOCKHOLDERS’ EQUITY | |
| 168,186 | |
| 140,169 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 194,792 | | $ | 166,654 | |
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
|
| Three Months ended March 31, | ||||
|
| 2024 |
| 2023 | ||
| | (in thousands, except for share and per share data) | ||||
Net sales: |
| | | | | |
Equipment revenues | | $ | 29,735 | | $ | 28,390 |
Service revenues | |
| 19,532 | |
| 15,142 |
| |
| 49,267 | |
| 43,532 |
Cost of sales: | |
|
| |
|
|
Equipment related expenses | |
| 21,179 | |
| 20,780 |
Service-related expenses | |
| 1,604 | |
| 1,473 |
| |
| 22,783 | |
| 22,253 |
| | | | | | |
Gross Profit | |
| 26,484 | |
| 21,279 |
| | | | | | |
Operating expenses: | | | | | | |
Research and development | |
| 2,757 | |
| 2,314 |
Selling, general, and administrative expenses | |
| 9,233 | |
| 8,425 |
Total Operating Expenses | | | 11,990 | | | 10,739 |
| | | | | | |
Operating Income | |
| 14,494 | |
| 10,540 |
| | | | | | |
Other income: | |
| | |
|
|
Interest and other income, net | |
| 637 | |
| 437 |
Income before Provision for Income Taxes | |
| 15,131 | |
| 10,977 |
Provision for Income Taxes | |
| 1,935 | |
| 1,428 |
Net Income | | $ | 13,196 | | $ | 9,549 |
| | | | | | |
Income per share: | |
|
| |
|
|
Basic | | $ | 0.36 | | $ | 0.26 |
Diluted | | $ | 0.36 | | $ | 0.26 |
| | | | | | |
Weighted average number of shares outstanding: | |
|
| |
|
|
Basic | |
| 36,835,000 | |
| 36,793,000 |
Diluted | |
| 37,118,000 | |
| 37,082,000 |
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
| | Nine Months Ended March 31, | | ||||
| | 2024 |
| 2023 | | ||
| | (in thousands, except for share and per share data) | | ||||
Net sales: | | | | | | | |
Equipment revenues | | $ | 83,133 | | $ | 81,511 | |
Service revenues | |
| 55,357 | |
| 43,828 | |
| |
| 138,490 | |
| 125,339 | |
Cost of sales: | |
|
|
|
|
| |
Equipment-related expenses | |
| 59,332 | |
| 70,341 | |
Service-related expenses | |
| 5,249 | |
| 4,799 | |
| |
| 64,581 | |
| 75,140 | |
| | | | | | | |
Gross Profit | |
| 73,909 | |
| 50,199 | |
| | | | | | | |
Operating expenses: | | | | | | | |
Research and development | |
| 7,736 | |
| 6,964 | |
Selling, general, and administrative expenses | |
| 26,319 | |
| 24,719 | |
Total Operating Expenses | |
| 34,055 |
| | 31,683 | |
| | | | | | | |
Operating Income | |
| 39,854 |
|
| 18,516 | |
| | | | | | | |
Other income: | |
| |
|
|
| |
Interest and other income, net | |
| 1,806 | |
| 521 | |
Income before Provision for Income Taxes | |
| 41,660 | |
| 19,037 | |
Provision for Income Taxes | |
| 5,376 | |
| 2,475 | |
Net Income | | $ | 36,284 | | $ | 16,562 | |
| | | | | | | |
Income per share: | |
|
| |
|
| |
Basic | | $ | 0.99 | | $ | 0.45 | |
Diluted | | $ | 0.98 | | $ | 0.45 | |
| | | | | | | |
Weighted average number of shares outstanding: | |
|
| |
|
| |
Basic | |
| 36,792,000 | |
| 36,736,000 | |
Diluted | |
| 37,032,000 | |
| 36,983,000 | |
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | Nine Months ended March 31, | | ||||
|
| 2024 |
| 2023 |
| ||
| | (in thousands) | | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | | |
|
| |
| |
Net income | | $ | 36,284 | | $ | 16,562 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |
|
| |
| | |
Depreciation and amortization | |
| 1,627 | |
| 1,398 | |
Gain on disposal of fixed asset | | | — | | | (15) | |
Interest expense (income) on other investments | | | 112 | | | (177) | |
Unrealized (gain) loss on marketable securities | | | (52) | | | 23 | |
(Recovery) of credit losses | |
| (26) | |
| (118) | |
Change to inventory reserve | |
| 634 | |
| (85) | |
Deferred income taxes | |
| (2,331) | |
| (1,400) | |
Stock based compensation expense | |
| 876 | |
| 1,134 | |
Changes in operating assets and liabilities: | |
|
| |
|
| |
Accounts receivable | |
| (4,178) | |
| 5,166 | |
Inventories | |
| (2,388) | |
| (813) | |
Prepaid expenses and other current assets | |
| 23 | |
| 228 | |
Income tax receivable | | | 75 | | | (688) | |
Other assets | |
| 22 | |
| 48 | |
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes | |
| 354 | |
| (8,847) | |
Net Cash Provided by Operating Activities | |
| 31,032 | |
| 12,416 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |
|
| |
|
| |
Purchases of property, plant, and equipment | |
| (1,043) | |
| (2,547) | |
Proceeds from disposal of fixed asset | | | — | | | 38 | |
Purchases of marketable securities | | | (160) | | | (110) | |
Purchases of other investments | | | (1,123) | | | (30,185) | |
Redemption of other investments | | | — | | | 10,091 | |
Net Cash Used in Investing Activities | |
| (2,326) | |
| (22,713) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |
|
| |
|
| |
Proceeds from stock option exercises | |
| 427 | |
| 82 | |
Cash paid for dividend | |
| (9,570) | |
| — | |
Net Cash (Used in) Provided by Financing Activities | |
| (9,143) | |
| 82 | |
| | | | | | | |
Net increase (decrease) in Cash and Cash Equivalents | |
| 19,563 | |
| (10,215) | |
CASH AND CASH EQUIVALENTS - Beginning | |
| 35,955 | |
| 41,730 | |
CASH AND CASH EQUIVALENTS - Ending | | $ | 55,518 | | $ | 31,515 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
|
| |
|
| |
Interest paid | | $ | 8 | | $ | 12 | |
Income taxes paid | | $ | 7,437 | | $ | 6,421 | |
NAPCO SECURITY TECHNOLOGIES, INC. | ||||
NON-GAAP MEASURES OF PERFORMANCE* (Unaudited) | ||||
(in thousands, except share and per share data) | ||||
3 months ended March 31, | 9 months ended March 31, | |||
2024 | 2023 | 2024 | 2023 | |
Net income (GAAP) | $ 13,196 | $ 9,549 | $ 36,284 | $ 16,562 |
Add back provision for income taxes | 1,935 | 1,428 | 5,376 | 2,475 |
Interest and other (income), net | (637) | (437) | (1,806) | (521) |
Operating Income (GAAP) | 14,494 | 10,540 | 39,854 | 18,516 |
Adjustments for non-GAAP measures of performance: | ||||
Add back amortization of acquisition-related intangibles | 85 | 90 | 253 | 271 |
Add back stock-based compensation expense | 266 | 322 | 876 | 1,134 |
Add back non-recurring legal expenses | 267 | 13 | 1,162 | 203 |
Adjusted non-GAAP operating income | 15,112 | 10,965 | 42,145 | 20,124 |
Add back depreciation and other amortization | 454 | 380 | 1,374 | 1,127 |
Adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization) | $ 15,566 | $ 11,345 | $ 43,519 | $ 21,251 |
Adjusted EBITDA* per Diluted Share | $ 0.42 | $ 0.31 | $ 1.18 | $ 0.57 |
Weighted average number of Diluted Shares outstanding | 37,118,000 | 37,082,000 | 37,032,000 | 36,983,000 |
Contacts:
Francis J. Okoniewski
Vice President of Investor Relations
NAPCO Security Technologies, Inc.
Office 800-645-9445 x 374
Mobile 516-404-3597
fokoniewski@napcosecurity.com
Exhibit 99.2
NAPCO Announces Management and Organizational Enhancements
-Executive Changes Aimed at Maintaining and Improving Recent Growth Trajectories-
AMITYVILLE, N.Y., May 2, 2024 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced exciting changes aimed at bolstering its management team with new roles, promotions, and the addition of a new upper management team member, all to keep our business steadily growing for many years to come. The Company's recruiting efforts to attract superior talent across our business divisions is consistent and ongoing.
Kevin Buchel has been promoted to President & Chief Operating Officer while maintaining his position as Chief Financial Officer. Mr. Buchel will continue to report directly to NAPCO Founder, Richard Soloway. Mr. Soloway, who will continue under his present titles of Chairman & CEO, commented: "Kevin has been with NAPCO for 30 years in various management positions, most recently as our Executive VP and CFO. The appointment of Kevin as President & COO is well-deserved, and comes at an exciting time at NAPCO as we continue to grow both revenues and our earning metrics. Kevin has been central to those efforts and I will continue to work closely with him as we have for 30 years. I am confident that under this role, NAPCO will continue to achieve significant milestones in revenues and profits for many years to come."
Michael Carrieri has been promoted to Executive Vice President of Engineering & Chief Technology Officer. Mr. Soloway commented: "Michael has been our Senior Vice President of Engineering Development for the past 24 years. With his skills in creating products from various in-house and external sources, he and the prolific engineering team that he has developed have been instrumental in NAPCO's substantial growth over so many years. Those products are the most diversified range of products in the security industry and bode well for substantial corporate growth going forward.
Andrew Vuono was appointed as the Company's Senior Vice President of Finance and Chief Accounting Officer. Mr. Buchel commented: "Mr. Vuono has over 30 years of public accounting experience, including over 20 years as a partner at a top 10 Public Accounting Firm. Mr. Vuono will oversee the day-to-day accounting department and financial reporting activities, and report directly to me." Mr. Vuono is expected to start on June 3rd.
Michael Almes has been promoted to Controller, reporting to Andrew Vuono. Mr. Buchel commented: "Michael joined NAPCO three years ago as the Assistant Controller and in that relatively short timeframe has demonstrated excellent accounting skills and has become an integral part of the finance team."
About NAPCO Security Technologies, Inc.
NAPCO Security Technologies, Inc., is one of the leading manufacturers and designers of high-tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems as well as a provider of school safety solutions, The Company consists of four Divisions: NAPCO, plus three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. Headquartered in Amityville, New York, its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for innovation, technical excellence and reliability, positioning the Company for growth in the multi-billion dollar and rapidly expanding electronic security market. For additional information on NAPCO, please visit the Company's web site at http://www.napcosecurity.com.
Safe Harbor Statement
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, but are not limited to, statements relating to the impact of COVID-19 pandemic; supply chain challenges and developments; the growth of recurring service revenues and annual run rate; the strength of our balance sheet; our expectations regarding future results; the introduction of new access control and locking products; the opportunities for school security products; business trends , including the replacement of 3G radios, and our ability to execute our business strategies. Actual results, performance or achievements could differ
materially from those anticipated in such forward-looking statements as a result of certain factors, including those risk factors set forth in the Company's filings with the Securities and Exchange Commission, such as our annual report on Form 10-K and quarterly reports on Form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements.
All information provided in this press release is as of today's date, unless otherwise stated, and the Company undertakes no duty to update such information, except as required under applicable law.
Contacts:
Francis J. Okoniewski
Vice President of Investor Relations
NAPCO Security Technologies, Inc.
Office 800-645-9445 x 374
Mobile 516-404-3597
fokoniewski@napcosecurity.com
Cover |
May 02, 2024 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Document Period End Date | May 02, 2024 |
| Entity File Number | 0-10004 |
| Entity Registrant Name | NAPCO SECURITY TECHNOLOGIES, INC. |
| Entity Incorporation, State or Country Code | DE |
| Entity Tax Identification Number | 11-2277818 |
| Entity Address, Address Line One | 333 Bayview Avenue |
| Entity Address, City or Town | Amityville |
| Entity Address, State or Province | NY |
| Entity Address, Postal Zip Code | 11701 |
| City Area Code | 631 |
| Local Phone Number | 842-9400 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Title of 12(b) Security | Common Stock, par value $0.01 per share |
| Trading Symbol | NSSC |
| Security Exchange Name | NASDAQ |
| Entity Emerging Growth Company | false |
| Entity Central Index Key | 0000069633 |
| Amendment Flag | false |
-8?20$3;8T.P6BP^0"X99K>]9!:G