Last10K.com

Napco Security Technologies, Inc (NSSC) SEC Filing 10-K Annual Report for the fiscal year ending Friday, June 30, 2023

Napco Security Technologies, Inc

HISTORY TOOLS
CIK: 69633 Ticker: NSSC

Exhibit 99.1

NAPCO Reports Record Revenues, Net Income and Adjusted EBITDA for Q4 and Fiscal 2023

-Net Sales for the Year Increase 18% to $170 Million-

-Net Income for the Year Increases 38% to $27.1 Million-

-Adjusted EBITDA for the Year Increases 52% to $34.3 Million-

-4th Quarter Recurring Service Revenues Increase 27% to $16.1 Million With a Gross Margin of 89%-

-4th Quarter Net Sales Increase 3% to $44.7 Million-
-4th Quarter Net Income Increases 40% to $10.6M -

-4th Quarter Adjusted EBITDA* Increases 41% to $13.0 Million –

AMITYVILLE, N.Y., August 29, 2023 /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 leading provider of school safety solutions, today announced financial results for its fourth quarter and fiscal year ended June 30, 2023.

Financial Highlights:

●Net sales for the quarter increased 3% to $44.7 million (the highest Q4 sales in the Company’s history) as compared to $43.2 million for the same period last year. Net sales for the fiscal year increased 18% to a record $170 million as compared to $143.6 million last year.
●Recurring service revenue ("RSR") for the quarter increased 27% to $16.1 million as compared to $12.7 million for the same period last year. Recurring service revenue for the fiscal year increased 30% to $59.9 million as compared to $46.0 million last year.  Recurring service revenue had a prospective annual run rate of approximately $67 million based on July 2023 recurring revenues.
●Gross margin for recurring service revenue remained robust for the quarter and fiscal year at 89% and 89%, respectively, compared to 87% and 87%, respectively, for the same periods last year.
●Gross margin for equipment revenues was 30% for the fourth quarter compared to 27% in last year’s 4th quarter.
●Net income for the quarter increased 40% to a 4th quarter record $10.6 million as compared to $7.5 million for the same period a year ago. Net income for the year increased 38% to a record $27.1 million as compared to $19.6 million  last year.
●Earnings per share (diluted) for the quarter increased 40% to $0.28 as compared to $0.20 for the same period a year ago. Earnings per share (diluted) for the fiscal year increased 38% to $0.73 as compared to $0.53 last year.
●Adjusted EBITDA* for the quarter increased 41% to a quarterly record $13.0 million as compared to $9.3 million for the same period a year ago. Adjusted EBITDA for  the fiscal year increased 52% to a record $34.3 million as compared to $22.6 million for the same period last year.
●Adjusted EBITDA per share (diluted)* for the quarter increased 40% to $0.35 as compared to $0.25 for the same period a year ago. Adjusted EBITDA per share (diluted) for the fiscal year increased 52% to $0.93 per diluted share as compared to $0.61 last year.
●Cash and cash equivalents, other investments and marketable securities were $66.7 million at June 30, 2023 as compared to $46.8 million at June 30, 2022, a 43% increase. The Company had no debt as of June 30, 2023.
●Cash Provided by Operating Activities for the twelve months ended June 30, 2023 was $24.7 million as compared to $8.3 million for the same period last year, a 198% increase.
●As previously announced, the Company will be issuing its quarterly dividend of $0.08 per share to be paid on September 22, 2023 to shareholders of record on September 1, 2023. This represents an increase of $0.0175 per share or 28%, from the previous quarterly dividend.
●Due to the previously announced need to restate the first, second and third fiscal quarters, the Company will delay filing its Form 10-K for up to 15 calendar days.

Richard Soloway, Chairman and President, commented, "Fiscal 2023 concluded with record fourth quarter sales of $44.7 million, which was the eleventh consecutive quarter of record year-over-year quarterly sales. Our net income of 10.6 million is the largest quarterly net income in the Company's history. While equipment revenues declined 6% for the quarter, locking sales increased 25% vs. Q4 locking sales for last year’s fourth quarter. This was the primary reason we saw the gross margin for equipment revenues increase to 30%.  Recurring service revenue, which increased 27%, was also a major contributor to the year-over-year overall sales and earnings growth. Gross margin for recurring service revenue remained strong at 89% and when combined with gross margin on equipment revenues of 30%, the total gross margins for Q4 amounted to 52%, which compared to 44% for last year’s Q4. We were particularly pleased to see the strong growth in the gross margin on equipment revenues, which was primarily attributable to lower material costs, reduced freight costs, and a more favorable sales mix.

The following information was filed by Napco Security Technologies, Inc (NSSC) on Tuesday, August 29, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Napco Security Technologies, Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Napco Security Technologies, Inc.

Continue

Assess how Napco Security Technologies, Inc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Napco Security Technologies, Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2023 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Rating

Learn More
Bullish Bearish Neutral
Filter Sentiment:
All
Positive
Negative
Filter Category:
All
Financial
Revenue
Other
Filter Subcategory:
All
Income
Expense
Product
Earnings
Debt
Geography
Other
Inside Napco Security Technologies, Inc's 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Parenthetical)
Condensed Consolidated Statement Of Stockholders Equity
Condensed Consolidated Statements Of Cash Flows
Condensed Consolidated Statements Of Income
401(K) Plan
401(K) Plan (Details)
Business And Credit Concentrations
Business And Credit Concentrations (Details)
Commitments And Contingencies
Commitments And Contingencies (Tables)
Commitments And Contingencies - Lease Maturities (Details)
Commitments And Contingencies - Leases (Details)
Commitments And Contingencies - Litigation, Etc. (Details)
Debt
Debt (Details)
Geographical Data
Geographical Data (Details)
Geographical Data (Tables)
Geographical Data - Additional Information (Details)
Income Taxes
Income Taxes (Tables)
Income Taxes - Deferred (Details)
Income Taxes - Narratives (Details)
Income Taxes - Provision (Details)
Income Taxes - Reconciliation (Details)
Income Taxes - Unrecognized Roll Forward (Details)
Insider Trading Arrangements
Inventories
Inventories (Tables)
Inventories - Classification (Details)
Inventories - Inventory Reserves (Details)
Inventories - Types (Details)
Marketable Securities
Marketable Securities (Details)
Marketable Securities (Tables)
Marketable Securities - Fair Value To Amortized Cost (Details)
Marketable Securities - Investments (Details)
Nature Of Business And Summary Of Significant Accounting Policies
Nature Of Business And Summary Of Significant Accounting Policies (Details)
Nature Of Business And Summary Of Significant Accounting Policies (Policies)
Nature Of Business And Summary Of Significant Accounting Policies (Tables)
Nature Of Business And Summary Of Significant Accounting Policies - Cash And Cash Equivalents And Investments (Details)
Nature Of Business And Summary Of Significant Accounting Policies - Income Statement Location (Details)
Nature Of Business And Summary Of Significant Accounting Policies - Intangible Assets (Details)
Nature Of Business And Summary Of Significant Accounting Policies - Net Income Per Share (Details)
Nature Of Business And Summary Of Significant Accounting Policies -Cash Dividend (Details)
Pay Vs Performance Disclosure
Property, Plant, And Equipment
Property, Plant, And Equipment (Details)
Property, Plant, And Equipment (Tables)
Related Party Transaction
Related Party Transaction (Details)
Revenue Recognition And Contracts With Customers
Revenue Recognition And Contracts With Customers (Details)
Revenue Recognition And Contracts With Customers (Tables)
Revenue Recognition And Contracts With Customers - Allowance (Details)
Revenue Recognition And Contracts With Customers - Disaggregation (Details)
Stock Option
Stock Option (Tables)
Stock Option - Activity (Details)
Stock Option - Exercise Price Range (Details)
Stock Option - Fair Value Assumptions (Details)
Stock Option - Plan Information (Details)
Stockholders' Equity Transactions
Stockholders' Equity Transactions (Details)
Subsequent Events
Subsequent Events (Details)
Ticker: NSSC
CIK: 69633
Form Type: 10-K Annual Report
Accession Number: 0001558370-23-015591
Submitted to the SEC: Fri Sep 08 2023 12:32:23 PM EST
Accepted by the SEC: Fri Sep 08 2023
Period: Friday, June 30, 2023
Industry: Communications Equipment

External Resources:
Stock Quote
Social Media
SEC.gov

Bookmark the Permalink:
https://last10k.com/sec-filings/nssc/0001558370-23-015591.htm