Business
NAPCO Announces First Quarter Fiscal 2021 Results
- Record-Breaking Revenues and Gross Margin for Recurring Service Revenues - - Adjusted EBITDA* up 115% Compared to the 4th Quarter of Fiscal 2020 -
About this update from Napco Security Technologies, Inc.
[{"type":"text","content":"- Record-Breaking Revenues and Gross Margin for Recurring Service Revenues -\n - Adjusted EBITDA* up 115% Compared to the 4th Quarter of Fiscal 2020 -\n\n\nAMITYVILLE, N.Y., Nov. 2, 2020 /PRNewswire/ -- NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the world's leading manufacturers and service providers of high-tech electronic security devices as well as a leading provider of school safety solutions, today announced financial results for its first fiscal quarter ended September 30, 2020.\n Financial Highlights:\nFirst Quarter recurring service revenue, gross margin, net income and adjusted EBITDA* exceeded analysts' expectations. The COVID-19 pandemic has presented challenges for security equipment professionals to obtain access to both commercial and residential installation sites. The Company believes this access issue is an industry-wide trend related to COVID-19 and not reflective of the loss of any market share specific to the Company or any long-term negative reflection of the post-pandemic vibrancy of the security industry as a whole. We believe that the COVID-19 pandemic negatively impacted equipment sales, which was the principal reason for the decline in total revenue. Net sales for the quarter was $23.2 million as compared to $23.0 million in the 4th quarter of fiscal 2020, and $26.3 million for the same period last year. Recurring service revenue for the quarter increased 36% to $7.3 million as compared to $5.4 million for the same period last year. Recurring service revenue now has a prospective annual run rate of $29.7 million based on September 2020 recurring revenues. Gross Margin for recurring service revenue for the quarter was 84% as compared to 79% for the same period last year. Net income for the quarter was $2.3 million, as compared to net income (before one-time charges) of $1.5 million in the 4th quarter of fiscal 2020 and net income of $3.2 million for the same period a year ago. Earnings per share (diluted) for the quarter was $0.13 as compared to earnings per share (before one-time charges) of $0.08 in the 4th quarter of fiscal 2020 and earnings per share of $0.17 for the same period a year ago. Adjusted EBITDA* for the quarter was $3.2 million as compared to $1.5 million in the 4th quarter of fiscal 2020, representing an increase of 115%, and $4.0 million for the same period a year ago. Adj...