NAPCO announces record fourth quarter and fiscal 2021 results

AMITYVILLE, N.Y.—NAPCO Security Technologies, Inc. announced record fourth quarter and fiscal 2021 results ending June 30, 2021, highlighted by a fiscal year net income that increased 75 percent to a record $14.9 million as compared to $8.5 million a year ago.

Some additional highlights include:

• 4th Quarter Sales Increase 54% to a Record $35.4 million
• 4th Quarter Recurring Service Revenues Increase 43% to $9.5 million with a gross margin of 87%
• Net Income for the year increases 75% to a record $14.9 million
• Net sales for the quarter increased 54% to a fourth quarter record of $35.4 million as compared to $23.0 million for the same period last year
• Net sales for the fiscal year increased 13% to a record $114.0 million as compared to $101.4 million last year.
• Earnings per share for the year increases 76% to $0.81
• Adjusted EBITDA for the year increases 32% to $19.5 million or $1.06 per share
• Cash From Operating Activities for the Year Increases 123% to $23.0 million

"NAPCO delivered an outstanding, record-setting performance in Q4 as we generated the highest sales and net income, for a Q4 and a full fiscal year, in our company's history,” said Richard Soloway, Chairman and President, NAPCO, 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 leading provider of school safety solutions. "Our record-setting revenue and profitability in Q4 and fiscal 2021, along with continued strong recurring revenue margins, gives us tremendous momentum as we head into fiscal 2022.”

Soloway said the robust growth in recurring service revenue and the associated gross margin, as well as sales of the Starlink radios that generate the recurring service revenues, continues to be primarily attributable to its commercial intrusion and fire alarm business, which “was not significantly affected by COVID-19 as commercial buildings must be kept secure,” he noted, adding that NAPCO’s commercial fire alarm “continues to be one of the key areas on which we focus our resources.”

He also pointed to the introduction in fiscal 2021 of Air Access, a new cellular, cloud-hosted access control product line. “These products will allow access control integrators and locking professionals to build a recurring revenue business for themselves just like our burglar and fire alarm dealers do,” Soloway explained. “While still in the very early stages, we expect this product line to provide the company the opportunity to generate recurring service revenue from each of our divisions: alarms & connectivity, locking and access control."

Record Year

The record fourth quarter and year-end fiscal results were achieved, Soloway noted, “despite a continuation of the challenging global logistics and supply chain environments. NAPCO remains focused on aggressively managing these logistical challenges to ensure that we remain well positioned to meet the needs of our customers.”

He added, “I am proud of how the NAPCO team responded to the challenges brought on by COVID-19 and of our resiliency and ability to execute even during difficult and uncertain times. We are excited for the future prospects for growth as our Company continues its efforts to expand our recurring revenue product offerings into all of our product lines. We remain focused on generating strong revenue growth as well as increased profitability. As we look to fiscal 2022 and beyond, NAPCO is well positioned for long-term growth and profitability expansion."