NAPCO Reports 4% Net Sales Increase for F4Q
The company credits rise in revenue to increased sales of access control and door locking products.
NAPCO reported intrusion recurring revenue for the fourth quarter and the full fiscal year increased 82% and 98% respectively and grew sequentially by 12%.
AMITYVILLE, N.Y. – NAPCO Security Technologies (Nasdaq: NSSC) on Monday announced financial results for its fiscal year ended June 30.
Net sales for the fourth quarter were $21.5 million, compared to $21.8 million in the same period a year ago. Net sales for the year were a record $74.4 million, a 4% increase from $71.4 million last year.
“The small decrease in sales for the three months was due to a challenging comparison, which was a result of a large contract award from Pepperdine University, during the fourth quarter of fiscal 2013,” NAPCO’s Kevin Buchel, senior vice president, operations and finance, said during an earnings call.
Buchel said the increase in revenue for the 12 months was due primarily to increased sales of access control and door locking products, as well as an increase in intrusion recurring revenue, which was partially offset by decreases in sales to one of the company’s intrusion customers.
Gross margin improved 40 basis points to 38.5% for the quarter, as compared to 38.1% for the same period last year. Gross margin for the year improved 150 basis points to 31.9% as compared to 30.4% a year ago. This marked the company’s highest gross margin in eight years, “demonstrating the strength of our business model and the increased contribution of recurring revenues,” Buchel said.
Gross profit for the 12 months increased approximately 9% to $23.7 million or 31.9% of sales, compared to $21.7 million or 30.4% of sales for the same period a year ago. Buchel attributed the increase in gross profit and gross profit as a percentage of sales for the 12 months primarily due to the increased sales and a favorable shift in product mix and increased recurring revenue.
Adjusted EBITDA for the fourth quarter decreased $719,000 or 17.7% to approximately $3.3 million or 17-cents per diluted share, as compared to $4.1 million or 21-cents per diluted share, last year. Adjusted EBITDA for the 12 months increased $441,000 or 7.7% to $6.1 million or 32-cents per diluted share, as compared to $5.7 million or 29-cents per diluted share for the same period a year ago.
On June 30, the company said it had $2.5 million in cash and cash equivalents compared to $3.2 million on June 30, 2013. NAPCO had working capital of $33.4 million as compared with working capital of $33.2 million at June 30, 2013.
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About the Author
Rodney Bosch, Senior Editor
Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for latimes.com. Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.
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