Napco Reports Q4 Earnings, Beats Revenue Estimates
Napco said recurring service revenue for the quarter improved 49% to $3.4 million as compared to $2.3 million for the same period the previous year.
AMITYVILLE, N.Y. — Napco Security Technologies (Nasdaq: NSSC) on Tuesday reported fourth-quarter earnings of $3.7 million on revenue of $27.3 million. On a per-share basis, the company said it had net income of 20 cents.
The results narrowly missed consensus for earnings of 21 cents per share but beat a revenue forecast of $27.15 million, as the company said it continued to see demand for its advanced wireless locking and access control systems for schools.
In press release Napco Chairman and President Richard Soloway states the company has continued to play a leadership role in raising the level of school safety and security preparedness at K-12 schools, universities and colleges across the United States.
“Demand has increased substantially for our integrated line of education-focused security solutions, including our advanced wireless locking and access control solutions, marketed by our Alarm Lock, Marks and Continental Access Control Divisions and also our high-technology alarm and communication systems, from our NAPCO Division,” he says.
The company also saw strong demand for its StarLink line of fire and alarm systems over the last year as well as its StarLink Connect product, which allows alarm dealers to upgrade regular alarm system installations into connected, smart home systems.
Recurring service revenue for the quarter rose 49% to $3.4 million as compared to $2.3 million for the same quarter last year and for the fiscal year increased 51% to $12 million from $7.9 million last year. Recurring service revenue now has a prospective annual run rate of $14.2 million based on June 2018 and $14.7 million based on July 2018, according to the company.
Napco reported sales, general and administrative costs for the quarter amounted to $6.1 million, or 22.5% of sales while SG&A expenses for the fiscal year ended June 30 came in at $23 million or 25% of sales.
For the full fiscal year ended June 30, the company posted a profit of $7.6 million or 41 cents per share, on revenue of $91.7 million.
Adjusted EBITDA for the quarter increased 23% to $4.7 million from $3.8 million a year ago. Adjusted EBITDA for the fiscal 2018 increased 27% to $10 million from $7.9 million in fiscal 2017.
As of June 30, the company reported its bank debt was paid in full with cash and cash equivalents of $5.3 million, up from $3.5 million at the close of June last year.
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