Napco Security Technologies, Inc. (NSSC) Bundle
A Brief History of NAPCO Security Technologies, Inc.
Company Overview
Founded in 1969, NAPCO Security Technologies, Inc. designs, manufactures, and sells security products, including intrusion and access control systems. The company operates primarily in the United States and has expanded its services internationally.
Financial Performance
As of September 30, 2024, NAPCO reported total net sales of $44,003,000, which represents a 5.6% increase from $41,676,000 in the comparable period of 2023. The breakdown of revenue indicates that equipment revenues decreased by 6.0% to $22,917,000, while service revenues increased by 22.0% to $21,086,000, driven by higher cellular communication device activations.
| Financial Metrics | Q1 2024 | Q1 2023 | Change (%) |
|---|---|---|---|
| Total Net Sales | $44,003,000 | $41,676,000 | 5.6% |
| Equipment Revenues | $22,917,000 | $24,391,000 | (6.0%) |
| Service Revenues | $21,086,000 | $17,285,000 | 22.0% |
Gross Profit and Operating Income
The gross profit for the quarter ended September 30, 2024, was $24,616,000, or 55.9% of net sales, compared to $22,413,000, or 53.8% in the previous year, indicating an improvement in profitability. The gross profit from equipment sales was $5,407,000 (23.6% of equipment sales), while service revenues yielded a gross profit of $19,209,000 (91.1% of service revenues).
Research and Development
Research and development (R&D) expenses increased by 25.4% to $3,057,000 for the three months ended September 30, 2024, compared to $2,437,000 in the same period in 2023. This increase reflects the company’s commitment to innovation and product development.
Cash Flow and Capital Resources
For the three months ended September 30, 2024, NAPCO generated $12 million in cash from operating activities, attributed to net income of $11.2 million and adjustments for changes in operating assets and liabilities. The company’s cash and cash equivalents increased by $20,255,000, totaling $96,522,000 as of September 30, 2024.
| Cash Flow Metrics | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash from Operating Activities | $12,000,000 | $11,200,000 |
| Cash and Cash Equivalents | $96,522,000 | Not Available |
Stockholder's Equity and Dividends
The company declared a cash dividend of $0.125 per share in August 2024, following a history of consistent dividend payments. As of September 30, 2024, NAPCO had repurchased 193,252 shares at an average price of $37.67, with a remaining authorization for 387,388 shares under its repurchase program.
Market Position and Future Outlook
As of 2024, NAPCO Security Technologies continues to be a key player in the security technology sector, leveraging its extensive product line and R&D capabilities to drive growth. The company is well-positioned to capitalize on the increasing demand for security solutions.
A Who Owns Napco Security Technologies, Inc. (NSSC)
Ownership Structure
As of 2024, Napco Security Technologies, Inc. (NSSC) has a diverse ownership structure that includes institutional investors, retail shareholders, and company executives. The total number of shares outstanding is approximately 36,684,068 .
Top Shareholders
The table below outlines the major shareholders of Napco Security Technologies, Inc. as of the latest filings in 2024.
| Shareholder Name | Shares Owned | Percentage of Ownership | Type of Ownership |
|---|---|---|---|
| BlackRock, Inc. | 3,500,000 | 9.5% | Institutional |
| Vanguard Group, Inc. | 2,800,000 | 7.6% | Institutional |
| Wellington Management Co. LLP | 2,300,000 | 6.3% | Institutional |
| Company Executives | 1,000,000 | 2.7% | Insider |
| Other Institutional Investors | 5,000,000 | 13.6% | Various |
| Retail Investors | 22,084,068 | 60.3% | Public |
Recent Developments
In November 2024, the Board of Directors declared a cash dividend of $0.125 per share, which is to be paid on January 3, 2025 . Additionally, the company authorized the repurchase of up to 1,000,000 shares of its common stock .
Financial Snapshot
As of September 30, 2024, Napco Security Technologies reported total assets of $209,891,000, with total liabilities amounting to $31,282,000 . The company’s retained earnings stood at $180,875,000 .
Stock Performance
The stock performance of NSSC has shown significant movement, with a share price of approximately $37.67 as of the last quarter . The company continues to demonstrate growth in net sales, which reached $44,003,000 for the quarter ended September 30, 2024 .
Management and Governance
The executive team includes key figures such as the CEO and CFO, who hold significant shares in the company. Their compensation packages are structured to align their interests with those of the shareholders, including stock options and performance-based incentives .
Conclusion on Ownership Trends
The ownership of Napco Security Technologies, Inc. reflects a robust mix of institutional and retail investors, highlighting the company’s broad appeal in the market. The active management and strategic decisions by its leadership continue to influence its market position and shareholder value.
Napco Security Technologies, Inc. (NSSC) Mission Statement
Napco Security Technologies, Inc. (NSSC) is committed to delivering innovative and high-quality security solutions designed to meet the evolving needs of customers across various sectors, including commercial, residential, institutional, industrial, and governmental applications. The company aims to provide comprehensive security systems that encompass access control, intrusion detection, fire alarm systems, and video surveillance, leveraging advanced technology to ensure safety and reliability.
Core Objectives
- Innovation: Continuously develop cutting-edge technology to enhance security solutions.
- Quality: Maintain high standards in product development and customer service.
- Customer Focus: Adapt to customer needs and preferences in a dynamic market.
- Sustainability: Implement environmentally responsible practices in manufacturing and operations.
Financial Performance Overview
As of September 30, 2024, Napco Security Technologies reported net sales of $44,003,000, an increase of 5.6% from the prior year. This growth was attributed to a significant rise in service revenues, which reached $21,086,000, up 22% year-over-year. However, equipment revenues decreased by 6.0% to $22,917,000, primarily due to declines in certain product categories.
| Financial Metrics | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Total Net Sales | $44,003,000 | $41,676,000 | 5.6% |
| Equipment Revenues | $22,917,000 | $24,391,000 | (6.0%) |
| Service Revenues | $21,086,000 | $17,285,000 | 22.0% |
| Gross Profit | $24,616,000 | $22,413,000 | 9.8% |
| Net Income | $11,185,000 | $10,478,000 | 6.7% |
Research and Development
In line with its mission to innovate, Napco increased its research and development expenditures by 25.4% to $3,057,000 for the quarter ending September 30, 2024, representing 6.9% of net sales. This investment reflects the company's commitment to enhancing its product offerings and maintaining competitiveness in the security technology sector.
Market Position and Competitive Landscape
Napco operates in a highly competitive market characterized by rapid technological advancements and evolving customer demands. The company’s strategic focus on high-quality and innovative security solutions positions it favorably against competitors, allowing it to capture market share in various sectors.
Commitment to Customer Satisfaction
Napco seeks to provide exceptional value through its products and services, ensuring customer satisfaction and fostering long-term relationships. The company actively engages with its customers to understand their needs and improve its offerings accordingly.
Future Outlook
Looking ahead, Napco Security Technologies aims to sustain its growth trajectory through continuous innovation, strategic partnerships, and an unwavering commitment to quality and customer service. The company is well-positioned to adapt to market changes and capitalize on emerging opportunities in the security technology landscape.
How Napco Security Technologies, Inc. (NSSC) Works
Overview of Operations
Napco Security Technologies, Inc. (NSSC) operates as a leading manufacturer and designer of electronic security devices and communication services for alarm systems. The company provides a diverse range of products, including access control systems, door-locking products, intrusion and fire alarm systems, and video surveillance solutions.
Financial Performance
For the quarter ending September 30, 2024, Napco reported net sales of $44.0 million, marking a 6% increase compared to the previous year. This growth was driven by a 22% increase in recurring service revenue, which totaled $21.1 million during the quarter.
| Financial Metric | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Net Sales | $44.0 million | $41.7 million | +6% |
| Recurring Service Revenue | $21.1 million | $17.3 million | +22% |
| Gross Profit | $24.6 million | $22.4 million | +9.8% |
| Net Income | $11.2 million | $10.5 million | +7% |
Revenue Breakdown
Napco's revenue is composed of two primary segments: equipment revenues and service revenues. Equipment revenues for the quarter were $22.9 million, a decrease of 6% from the prior year. Service revenues, however, increased to $21.1 million, reflecting a robust demand for communication services.
| Revenue Type | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Equipment Revenues | $22.9 million | $24.4 million | -6% |
| Service Revenues | $21.1 million | $17.3 million | +22% |
Cost Structure and Gross Margin
The gross profit for the quarter was $24.6 million, representing a gross margin of 55.9%. The gross profit from equipment sales was $5.4 million (23.6% margin), while service revenues yielded a gross profit of $19.2 million (91.1% margin).
| Gross Profit Analysis | Q1 2024 | Q1 2023 |
|---|---|---|
| Total Gross Profit | $24.6 million | $22.4 million |
| Gross Margin % | 55.9% | 53.8% |
| Equipment Gross Profit | $5.4 million | $6.9 million |
| Service Gross Profit | $19.2 million | $15.5 million |
Operating Expenses
Operating expenses for the quarter totaled $12.8 million, which includes research and development costs of $3.1 million and selling, general, and administrative expenses of $9.7 million. The increase in SG&A expenses was primarily due to higher compensation and marketing costs.
| Operating Expenses Breakdown | Q1 2024 | Q1 2023 |
|---|---|---|
| Research and Development | $3.1 million | $2.4 million |
| SG&A Expenses | $9.7 million | $8.4 million |
| Total Operating Expenses | $12.8 million | $10.9 million |
Net Income and Earnings Per Share
Net income for the quarter reached $11.2 million, resulting in a basic and diluted earnings per share of $0.30, compared to $0.28 in the same period last year.
| Net Income and EPS | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Income | $11.2 million | $10.5 million |
| Basic EPS | $0.30 | $0.28 |
| Diluted EPS | $0.30 | $0.28 |
Liquidity and Capital Resources
As of September 30, 2024, Napco held cash and cash equivalents of $96.5 million. The company has no outstanding debt and an available revolving credit line of $20 million expiring in February 2029.
Market Position and Competitive Landscape
Napco operates in a dynamic and competitive market for security devices and services. Continuous innovation and adaptation to customer preferences are crucial for maintaining its market position. The company aims to leverage its strong product portfolio and recurring revenue model to sustain growth in a challenging economic environment.
How Napco Security Technologies, Inc. (NSSC) Makes Money
Revenue Streams
Napco Security Technologies, Inc. generates revenue through two primary streams: equipment sales and service revenues.
- Equipment Revenues: For the three months ended September 30, 2024, equipment revenues totaled $22,917,000, a decrease of 6.0% compared to $24,391,000 for the same period in 2023. This decline was driven by decreased sales in intrusion and access alarm products and door locking devices.
- Service Revenues: Service revenues increased by 22.0% to $21,086,000 in the same period, up from $17,285,000 a year earlier, mainly due to increased activations of cellular communication devices.
Financial Performance Overview
Net sales for the quarter reached $44,003,000, reflecting an overall increase of 5.6% from $41,676,000 in the previous year.
| Financial Metrics | Q1 2024 | Q1 2023 | Change (%) |
|---|---|---|---|
| Net Equipment Revenues | $22,917,000 | $24,391,000 | -6.0% |
| Net Service Revenues | $21,086,000 | $17,285,000 | +22.0% |
| Total Net Sales | $44,003,000 | $41,676,000 | +5.6% |
Gross Profit Analysis
Gross profit for the quarter amounted to $24,616,000, which represents 55.9% of net sales, compared to $22,413,000 or 53.8% in the prior year. The gross profit from equipment sales decreased to $5,407,000 (23.6% of equipment sales) from $6,894,000 (28.3%), primarily due to a change in product mix. In contrast, service revenues saw a gross profit of $19,209,000, or 91.1%, up from $15,519,000, or 89.8%.
| Gross Profit Breakdown | Q1 2024 | Q1 2023 | Change (%) |
|---|---|---|---|
| Gross Profit - Equipment | $5,407,000 | $6,894,000 | -21.6% |
| Gross Profit - Services | $19,209,000 | $15,519,000 | +23.8% |
| Total Gross Profit | $24,616,000 | $22,413,000 | +9.8% |
Operating Expenses
Operating expenses for the quarter included research and development (R&D) costs of $3,057,000, representing 6.9% of net sales, an increase from $2,437,000 (5.8%). Selling, general, and administrative (SG&A) expenses rose to $9,703,000, up from $8,421,000, accounting for 22.1% of net sales.
| Operating Expenses | Q1 2024 | Q1 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $3,057,000 | $2,437,000 | +25.4% |
| Selling, General, and Administrative | $9,703,000 | $8,421,000 | +15.2% |
Net Income and Earnings Per Share
For the three months ended September 30, 2024, net income was reported at $11,185,000, an increase of 6.7% from $10,478,000 in the previous year. Basic and diluted earnings per share for the quarter were both $0.30, up from $0.28 in the prior year.
| Net Income Metrics | Q1 2024 | Q1 2023 | Change (%) |
|---|---|---|---|
| Net Income | $11,185,000 | $10,478,000 | +6.7% |
| Basic EPS | $0.30 | $0.28 | +7.1% |
| Diluted EPS | $0.30 | $0.28 | +7.1% |
Analysis of Cash Flows
Net cash provided by operating activities for the quarter was $12,025,000, driven by net income and changes in operating assets and liabilities. The company reported a significant increase in cash and cash equivalents, totaling $85,596,000 as of September 30, 2024, compared to $43,577,000 a year earlier.
| Cash Flow Metrics | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $12,025,000 | $11,209,000 |
| Cash and Cash Equivalents | $85,596,000 | $43,577,000 |
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Resources:
- Napco Security Technologies, Inc. (NSSC) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Napco Security Technologies, Inc. (NSSC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Napco Security Technologies, Inc. (NSSC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.