NAPCO Reports Revenues, Net Income and Adjusted EBITDA* for Q1 of Fiscal 2025
NAPCO Security Technologies (NASDAQ: NSSC) reported record Q1 fiscal 2025 results with net sales increasing 6% to $44.0 million and net income rising 7% to $11.2 million. Recurring service revenue (RSR) grew 22% to $21.1 million with a 91% gross margin. The company's cellular communication device sales increased 93% year-over-year, representing 70% of Intrusion and Access Alarm product sales. However, equipment revenue decreased 6%, partially due to an 8% decline in door locking sales. The Board declared a quarterly dividend of $0.125 per share and authorized repurchase of up to 1,000,000 shares.
NAPCO Security Technologies (NASDAQ: NSSC) ha riportato risultati record per il primo trimestre dell'anno fiscale 2025, con vendite nette aumentate del 6% a 44,0 milioni di dollari e un reddito netto in crescita del 7% a 11,2 milioni di dollari. I ricavi da servizi ricorrenti (RSR) sono cresciuti del 22% a 21,1 milioni di dollari, con un margine lordo del 91%. Le vendite dei dispositivi di comunicazione cellulare dell'azienda sono aumentate del 93% rispetto all'anno precedente, rappresentando il 70% delle vendite dei prodotti di allerta Intrusione e Accesso. Tuttavia, i ricavi da attrezzature sono diminuiti del 6%, in parte a causa di un calo dell'8% nelle vendite di serrature per porte. Il Consiglio ha dichiarato un dividendo trimestrale di 0,125 dollari per azione e ha autorizzato il riacquisto di fino a 1.000.000 di azioni.
NAPCO Security Technologies (NASDAQ: NSSC) reportó resultados récord para el primer trimestre del año fiscal 2025, con ventas netas que aumentaron un 6% a 44,0 millones de dólares y un ingreso neto que subió un 7% a 11,2 millones de dólares. Los ingresos por servicio recurrente (RSR) crecieron un 22% a 21,1 millones de dólares con un margen bruto del 91%. Las ventas de dispositivos de comunicación celular de la compañía aumentaron un 93% interanual, representando el 70% de las ventas de productos de Alarma de Intrusión y Acceso. Sin embargo, los ingresos por equipos disminuyeron un 6%, en parte debido a una caída del 8% en las ventas de cerraduras para puertas. La Junta declaró un dividendo trimestral de 0,125 dólares por acción y autorizó la recompra de hasta 1.000.000 de acciones.
NAPCO Security Technologies (NASDAQ: NSSC)는 2025 회계연도 1분기 실적이 기록적인 것으로 나타났으며, 순매출은 6% 증가한 4400만 달러, 순이익은 7% 증가한 1120만 달러에 달했습니다. 정기 서비스 수익 (RSR)은 22% 성장하여 2110만 달러에 달하며, 총 이익률은 91%입니다. 회사의 셀룰러 통신 장치 판매는 전년 대비 93% 증가하며, 침입 및 접근 경보 제품 판매의 70%를 차지합니다. 그러나 장비 수익은 6% 감소했으며, 이는 부분적으로 문 잠금 장치 판매의 8% 감소 때문입니다. 이사회는 주당 0.125달러의 분기 배당금을 선언하고 최대 100만 주의 자사주 매입을 승인했습니다.
NAPCO Security Technologies (NASDAQ: NSSC) a rapporté des résultats records pour le premier trimestre de l'exercice 2025, avec des ventes nettes en hausse de 6 % à 44,0 millions de dollars et un revenu net en augmentation de 7 % à 11,2 millions de dollars. Les revenus de services récurrents (RSR) ont augmenté de 22 % pour atteindre 21,1 millions de dollars, avec une marge brute de 91 %. Les ventes des dispositifs de communication cellulaires de l'entreprise ont augmenté de 93 % d'une année sur l'autre, représentant 70 % des ventes de produits d'alarme d'intrusion et d'accès. Cependant, les revenus d'équipement ont diminué de 6 %, en partie à cause d'une baisse de 8 % des ventes de verrous de porte. Le Conseil a déclaré un dividende trimestriel de 0,125 dollar par action et a autorisé le rachat de jusqu'à 1 000 000 d'actions.
NAPCO Security Technologies (NASDAQ: NSSC) berichtete von Rekordzahlen im ersten Quartal des Geschäftsjahres 2025, mit einem Anstieg der Nettoumsätze um 6% auf 44,0 Millionen Dollar und einem Anstieg des Nettogewinns um 7% auf 11,2 Millionen Dollar. Die wiederkehrenden Serviceumsätze (RSR) stiegen um 22% auf 21,1 Millionen Dollar mit einer Bruttomarge von 91%. Die Verkaufszahlen der zellulären Kommunikationsgeräte des Unternehmens erhöhten sich um 93% im Vergleich zum Vorjahr und machen 70% des Umsatzes mit Einbruch- und Zugangsalarmprodukten aus. Die Umsätze aus Geräten fielen jedoch um 6%, teilweise aufgrund eines Anstiegs von 8% beim Verkauf von Türschlössern. Der Vorstand erklärte eine vierteljährliche Dividende von 0,125 Dollar pro Aktie und genehmigte den Rückkauf von bis zu 1.000.000 Aktien.
- Record Q1 net sales of $44.0 million, up 6% YoY
- Net income increased 7% to $11.2 million
- Recurring service revenue grew 22% to $21.1 million with 91% gross margin
- Cellular communication device sales up 93% YoY
- Strong cash position of $102.2 million with no debt
- Operating cash flow increased 7% to $12.0 million
- Equipment revenue decreased 6% YoY
- Door locking sales declined 8%
- Equipment gross margin decreased to 24% from 28% YoY
- Adjusted EBITDA decreased 4% to $12.3 million
- R&D costs increased 25% to $3.1 million
- SG&A expenses increased 15% to $9.7 million
Insights
NAPCO's Q1 FY2025 results show mixed performance with some notable strengths and concerns. Record Q1 revenue of
However, equipment revenue declined
Strong balance sheet with
The company's strategic positioning in high-growth security segments shows promise. The Prima all-in-one security system now has a complete product ecosystem, targeting the mass-market residential and small business segments. This expansion into subscription-based services aligns with industry trends toward recurring revenue models.
The
-Net Sales for the Quarter Increase
-Net Income for the Quarter Increases
-Adjusted EBITDA* for the Quarter Decreases
-1st Quarter Recurring Service Revenues Increase
-Board Declares Quarterly Dividend of
Financial Highlights:
- Net sales for the quarter increased
6% to$44.0 million (the highest Q1 sales in the Company's history). - Recurring service revenue ("RSR") for the quarter increased
22% to$21.1 million . RSR had a prospective annual run rate of approximately$85 million based on October 2024 recurring service revenues. - Gross margin for RSR increased to
91% for the quarter compared to90% for the same period last year. - Gross margin for equipment revenue was
24% for the quarter ended September 30, 2024, compared to28% for the same period last year. - Net income for the quarter increased
7% to a quarterly record$11.2 million . - Earnings per share (diluted) for the quarter increased
7% to$0.30 compared to$0.28 for the same period a year ago. - Adjusted EBITDA* for the quarter decreased
4% to$12.3 million compared to$12.9 million , and Adjusted EBITDA per share (diluted)* for the quarter decreased6% to$0.33 compared to$0.35 for the same period last year, respectively. - Cash and cash equivalents, other investments and marketable securities were
$102.2 million at September 30, 2024 compared to$97.7 million at June 30, 2024, a5% increase. The Company had no debt as of September 30, 2024. - Cash Provided by Operating Activities for the quarter ended September 30, 2024, was
$12.0 million compared to$11.2 million for the same period last year, a7% increase. - The Board declared a quarterly dividend of
$0.12 5 per share, payable on January 3, 2025 to shareholders of record on December 12, 2024. - The Board authorized the Company to repurchase up to 1,000,000 shares of its common stock.
Richard Soloway, Chairman and CEO, commented, "Fiscal 2025 began with record revenue and net income for any first quarter in the Company's history and represents the sixteenth consecutive quarter of record sales for a quarterly reporting period. Our record quarterly net income of
We continue to see growth in school and classroom security, healthcare, and retail loss-prevention, as well as in multi-dwelling commercial and residential applications and remain confident that such sales will improve throughout fiscal 2025, as we continue to remain focused on further penetrating each of these markets.
Our recent introduction of Prima by NAPCO, a new All-in-One Panel for security, fire, video and connected home with a 15-minute installation, remains a very important focus to the Company. When initially released approximately one year ago, the Prima line was not complete as certain required peripherals were not yet available. That has changed as the line is now complete, including doorbells, indoor/outdoor cameras, smoke detectors and strobes/sirens. 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 service revenue generating accounts.
Our balance sheet continues to get stronger, with cash and cash equivalents, other investments and marketable securities increasing to
Mr. Soloway concluded, "Fiscal 2025 began with more record-breaking sales and profits. As fiscal 2025 progresses, we are very encouraged with the strength of our Starlink radios sales, particularly the Starlink Fire radio, which generates the most profitable recurring revenue and our expectation is that Starlink radio sales will remain strong. While we were disappointed in our overall equipment sales, we anticipate improvement in our locking sales once distributors complete the reduction of their inventory levels, which should lead to improved equipment revenue, improved equipment gross margins and the continuation of our very profitable recurring revenue. Our strong net income and Adjusted EBITDA*, coupled with the significant cash generated from operations continues to grow our cash position. We are pleased continue our dividend program and will be paying the next quarterly dividend of
Financial Results
Net sales for the quarter increased
Operating income for the quarter increased
Adjusted EBITDA* for the quarter decreased
Balance Sheet Summary
As of September 30, 2024, the Company had
Conference Call Information
Management will conduct a conference call at 11 a.m. ET today, November 4, 2024, in order to participate please go to the Investor Relations section of Company's website at https://investor.napcosecurity.com/events-presentations or the webcast URL use https://app.webinar.net/xlzRnBm4Yva. 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) | |||||||
September 30, 2024 | June 30, 2024 | ||||||
(in thousands, except share data) | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 85,596 | $ | 65,341 | |||
Investments - other | 10,926 | 26,980 | |||||
Marketable securities | 5,666 | 5,398 | |||||
Accounts receivable, net of allowance for credit losses of | 28,236 | 31,898 | |||||
Inventories | 36,395 | 34,804 | |||||
Income tax receivable | 144 | 73 | |||||
Prepaid expenses and other current assets | 4,466 | 4,269 | |||||
Total Current Assets | 171,429 | 168,763 | |||||
Inventories - non-current | 13,782 | 15,109 | |||||
Property, plant and equipment, net | 9,287 | 9,077 | |||||
Intangible assets, net | 3,523 | 3,602 | |||||
Deferred income taxes | 6,177 | 5,428 | |||||
Operating lease - Right-of-use asset | 5,410 | 5,487 | |||||
Other assets | 283 | 286 | |||||
TOTAL ASSETS | $ | 209,891 | $ | 207,752 | |||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 5,936 | $ | 7,977 | |||
Accrued expenses | 9,446 | 10,345 | |||||
Accrued salaries and wages | 4,694 | 3,907 | |||||
Dividend payable | 4,610 | — | |||||
Total Current Liabilities | 24,686 | 22,229 | |||||
Accrued income taxes | 1,136 | 1,122 | |||||
Operating lease liability | 5,460 | 5,512 | |||||
TOTAL LIABILITIES | 31,282 | 28,863 | |||||
COMMITMENTS AND CONTINGENCIES (Note 13) | |||||||
STOCKHOLDERS' EQUITY | |||||||
Common Stock, par value | 398 | 398 | |||||
Additional paid-in capital | 24,137 | 23,712 | |||||
Retained earnings | 180,875 | 174,300 | |||||
Less: Treasury Stock, at cost (3,086,967 and 2,893,715 shares as of September 30, 2024 and | (26,801) | (19,521) | |||||
TOTAL STOCKHOLDERS' EQUITY | 178,609 | 178,889 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 209,891 | $ | 207,752 |
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) | |||||||
Three Months Ended September 30, | |||||||
2024 | 2023 | ||||||
(in thousands, except for share and per share data) | |||||||
Net sales: | |||||||
Equipment revenues | $ | 22,917 | $ | 24,391 | |||
Service revenues | 21,086 | 17,285 | |||||
44,003 | 41,676 | ||||||
Cost of sales: | |||||||
Equipment-related expenses | 17,510 | 17,497 | |||||
Service-related expenses | 1,877 | 1,766 | |||||
19,387 | 19,263 | ||||||
Gross Profit | 24,616 | 22,413 | |||||
Operating expenses: | |||||||
Research and development | 3,057 | 2,437 | |||||
Selling, general, and administrative expenses | 9,703 | 8,421 | |||||
Total Operating Expenses | 12,760 | 10,858 | |||||
Operating Income | 11,856 | 11,555 | |||||
Other income: | |||||||
Interest and other income (expense), net | 1,144 | 440 | |||||
Income before Provision for Income Taxes | 13,000 | 11,995 | |||||
Provision for Income Taxes | 1,815 | 1,517 | |||||
Net Income | $ | 11,185 | $ | 10,478 | |||
Income per share: | |||||||
Basic | $ | 0.30 | $ | 0.28 | |||
Diluted | $ | 0.30 | $ | 0.28 | |||
Weighted average number of shares outstanding: | |||||||
Basic | 36,865,000 | 36,827,000 | |||||
Diluted | 37,180,000 | 37,076,000 |
NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | |||||||
Three Months ended September 30, | |||||||
2024 | 2023 | ||||||
(in thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 11,185 | $ | 10,478 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 549 | 537 | |||||
Interest (income) expense on other investments | (193) | 76 | |||||
Unrealized (gain) loss on marketable securities | (157) | 57 | |||||
(Recovery of) credit losses | (9) | (24) | |||||
Change to inventory reserve | (235) | 822 | |||||
Deferred income taxes | (749) | (80) | |||||
Stock based compensation expense | 371 | 307 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 3,671 | 3,172 | |||||
Inventories | (30) | (6,620) | |||||
Prepaid expenses and other current assets | (197) | 330 | |||||
Income tax receivable | (71) | (130) | |||||
Other assets | 3 | 17 | |||||
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes | (2,113) | 2,267 | |||||
Net Cash Provided by Operating Activities | 12,025 | 11,209 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchases of property, plant, and equipment | (680) | (256) | |||||
Purchases of marketable securities | (111) | (42) | |||||
Purchases of other investments | (46) | (347) | |||||
Redemption of other investments | 16,293 | — | |||||
Net Cash Provided by (Used in) Investing Activities | 15,456 | (645) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from stock option exercises | 54 | — | |||||
Cash paid for dividend | — | (2,942) | |||||
Cash paid for purchase of treasury shares | (7,280) | — | |||||
Net Cash Used in Financing Activities | (7,226) | (2,942) | |||||
Net increase in Cash and Cash Equivalents | 20,255 | 7,622 | |||||
CASH AND CASH EQUIVALENTS - Beginning | 65,341 | 35,955 | |||||
CASH AND CASH EQUIVALENTS - Ending | $ | 85,596 | $ | 43,577 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Interest paid | $ | 8 | $ | — | |||
Income taxes paid | $ | 2,620 | $ | 1,703 | |||
Non-Cash Investing and Financing Transactions | |||||||
Cash dividends declared and not paid | $ | 4,610 | $ | — |
NAPCO SECURITY TECHNOLOGIES, INC. | ||
NON-GAAP MEASURES OF PERFORMANCE* (Unaudited) | ||
(in thousands, except share and per share data) | ||
3 months ended September 30, | ||
2024 | 2023 | |
Net income (GAAP) | $ 11,185 | $ 10,478 |
Add back provision for income taxes | 1,815 | 1,517 |
Interest and other (income), net | (1,144) | (440) |
Operating Income (GAAP) | 11,856 | 11,555 |
Adjustments for non-GAAP measures of performance: | ||
Add back amortization of acquisition-related intangibles | 79 | 84 |
Add back stock-based compensation expense | 371 | 307 |
Add back non-recurring legal expenses | (441) | 456 |
Adjusted non-GAAP operating income | 11,865 | 12,402 |
Add back depreciation and other amortization | 470 | 453 |
Adjusted EBITDA* (earnings before interest, taxes, depreciation and amortization) | $ 12,335 | $ 12,855 |
Adjusted EBITDA* per Diluted Share | $ 0.33 | $ 0.35 |
Weighted average number of Diluted Shares outstanding | 37,180,000 | 37,076,000 |
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
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SOURCE NAPCO Security Technologies, Inc.
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