Napco Reports 20th Consecutive Quarter of Year-Over-Year Record Sales
Reporting Q4 results, Napco said net income for the fiscal year increased 60% to a record $12.2 million from $7.6 million a year ago.
AMITYVILLE, N.Y. — Napco Security Technologies (Nasdaq: NSSC) on Tuesday reported fourth quarter net income increased 28% to a record of $4.7 million, compared to $3.7 during the same period the year prior.
Net income for the fiscal year increased 60% to a record $12.2 million from $7.6 million a year ago.
Earnings per diluted share for the quarter increased 30% to 26 cents, compared to 20 cents for the same period a year ago. Earnings per diluted share for the fiscal year increased 61% to 66 cents, compared to 41 cents for the same period a year ago.
Net sales for the quarter increased 9% to a record $29.6 million as compared to $27.3 million for the same quarter last year. Net sales for the fiscal year were a record $102.9 million, a 12% increase, as compared to $91.7 million for FY2018.
The company reported recurring service revenue for the quarter increased 44% to $5 million, compared to $3.4 million for the same quarter last year and for the fiscal year increased 45% to $17.4 million from $12 million last year.
During an earnings call Tuesday, Napco President and CEO Richard Soloway said the fourth quarter marked another record revenue and profitability performance for the company. The company has posted a string of 20 consecutive quarters of year-over-year record sales levels, as well as surpassing the $100 million annual sales mark and generating net income of over $12 million.
“Our SaaS recurring revenues continue to growth at a rapid rate. Our recurring revenues annual run rate is now $20.4 million as of June. Our focus on targeting the professional installations and mostly commercial end market is driving this continuous growth,” he said.
The company’s balance sheet remained strong with zero debt as of the latest quarterly earnings report, Soloway said, and cash balances continue to grow. “Capitalizing on key industry trends including school security solution, wireless, fire, and intrusion alarm communicators, enterprise access control systems, and architectural locking products remains our focus,” Soloway said.
Adjusted EBITDA for the quarter increased 10% to $5.2 million, which equates to 17% of net sales or 28 cents per diluted share compared to $4.7 million or 25 cents per diluted share last year. For the year adjusted EBITDA increased 51% to $15 million, amounting to 15% of net sales or 81 cents per diluted share as compared to $10 million or 53 center per diluted share last year.
During the quarter Napco launched its new AT&T LTE StarLink line of universal fire, intrusion alarm and IoT communicators. With StarLink lines now on both Verizon and the AT&T LTE network, the company says it provides security dealers with the largest LTE service coverage in the United States.
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