Napco Security Systems Inc. (NSSC, Financial) filed Quarterly Report for the period ended 2010-12-31.
Napco Security Technologies Inc. has a market cap of $40.3 million; its shares were traded at around $2.11 with and P/S ratio of 0.6.
Selling, general and administrative expenses for the three months ended December 31, 2010 decreased by $243,000 to $4,159,000, or 23.6% of sales, as compared to $4,402,000, or 26.5% of sales a year ago. Selling, general and administrative expenses for the six months ended December 31, 2010 decreased by $795,000 to $8,299,000, or 25.2% of sales, as compared to $9,094,000, or 29.2% of sales a year ago. The decrease in Selling, general and administrative expenses in dollars and as a percentage of net sales was due primarily to the consolidation of the Company s Marks operations and European and Middle East warehouses into the Company s headquarters in Amityville, NY, lower stock option expense as existing grants become fully amortized and the reduction of bank fees relating to amendments and waivers.
Interest expense, net for the three months ended December 31, 2010 decreased by $186,000 to $411,000 as compared to $597,000 for the same period a year ago. Interest expense, net for the six months ended December 31, 2010 decreased by $163,000 to $1,005,000 as compared to $1,168,000 for the same period a year ago. The decrease in interest expense for the three and six months ended December 31, 2010 resulted from lower interest rates charged by the Company s banks as well as lower outstanding debt in the current period.
The Company s benefit for income taxes for the three months ended December 31, 2010 decreased by $10,000 to a benefit of $51,000 as compared to a benefit of $61,000 for the same period a year ago. The Company s benefit for income taxes for the six months ended December 31, 2010 increased by $61,000 to a benefit of $242,000 as compared to a benefit of $181,000 for the same period a year ago. The changes in the benefit for income taxes were due primarily to a the change in the proportion of the loss before income taxes being generated by the Company s U.S. operations to the loss being generated by non-taxable foreign operations in the quarter ended December 31, 2010 as compared to the same period a year ago. As a result, the Company s effective rate for income tax was (48)% for the three months ended December 31, 2010 as compared to 6% for the same period a year ago and 20% for the six months ended December 31, 2010 as compared to 6% for the same period a year ago.
Net income increased by $1,069,000 to $157,000 or $0.01 per diluted share for the three months ended December 31, 2010 as compared to a net loss of $(912,000) or $(0.05) per diluted share for the same period a year ago. Net loss decreased by $1,753,000 to $(977,000) or $(0.05) per diluted share for the six months ended December 31, 2010 as compared to a net loss of $(2,730,000) or $(0.14) per diluted share for the same period a year ago. The change for the three and six months ended December 31, 2010 was primarily due to the items as described above.
On October 28, 2010, the Company entered into a Second Amended and Restated Credit Agreement Dated as of October 28, 2010 among the Company, as the Borrower, Capital One, N.A., as a Lender and HSBC Bank USA, National Association as Lender, Administrative Agent and Collateral Agent (the “Second Amended Agreement”). The Second Amended Agreement amended and restated the previous term loan and revolving credit facility and provides for a term loan of $16,070,000 and a revolving credit facility of $11,100,000. Prior to closing on October 28, 2010, $11,100,000 was outstanding under the existing revolving credit facility and $17,856,000 was outstanding under the existing term loan. The Second Amended Agreement provides for the same expiration dates and repayment schedule as stated above except for an accelerated payment of $1,786,000, which was paid at closing and represents the payments previously scheduled for December 31, 2010 and March 31, 2011 under the Term Loan. In addition, the Company repaid $1,000,000 of the Revolving Credit Facility at closing. The post-closing balance of the Term Loan on October 28, 2010 is $16,070,000 and the balance outstanding under the Revolving Credit Facility was $10,100,000. The Second Amended Agreement also provides for a LIBOR interest rate option of LIBOR plus 4.5% in addition to the existing prime option of prime plus 4.0% and financial covenants that better reflect the Company s current financial condition. In addition, the Second Amended Agreement contains waivers for non-compliance with certain covenants in the previous facilities. The Company s obligations under the Second Amended Agreement continue to be secured by the Company's headquarters in Amityville, New York, certain other assets and the common stock of the Company's wholly-owned subsidiaries.
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Napco Security Technologies Inc. has a market cap of $40.3 million; its shares were traded at around $2.11 with and P/S ratio of 0.6.
Highlight of Business Operations:
Sales for the three months ended December 31, 2010 increased by approximately 6% to $17,608,000 as compared to $16,641,000 for the same period a year ago. Sales for the six months ended December 31, 2010 increased by approximately 6% to $32,935,000 as compared to $31,106,000 for the same period a year ago. The increase in sales for the three months was primarily due to increased sales in the Company s intrusion products ($751,000) and access control products ($201,000). The increase in sales for the six months was primarily due to increased sales in the Company s door-locking products ($1,084,000), intrusion products ($606,000) and access control products ($140,000).Selling, general and administrative expenses for the three months ended December 31, 2010 decreased by $243,000 to $4,159,000, or 23.6% of sales, as compared to $4,402,000, or 26.5% of sales a year ago. Selling, general and administrative expenses for the six months ended December 31, 2010 decreased by $795,000 to $8,299,000, or 25.2% of sales, as compared to $9,094,000, or 29.2% of sales a year ago. The decrease in Selling, general and administrative expenses in dollars and as a percentage of net sales was due primarily to the consolidation of the Company s Marks operations and European and Middle East warehouses into the Company s headquarters in Amityville, NY, lower stock option expense as existing grants become fully amortized and the reduction of bank fees relating to amendments and waivers.
Interest expense, net for the three months ended December 31, 2010 decreased by $186,000 to $411,000 as compared to $597,000 for the same period a year ago. Interest expense, net for the six months ended December 31, 2010 decreased by $163,000 to $1,005,000 as compared to $1,168,000 for the same period a year ago. The decrease in interest expense for the three and six months ended December 31, 2010 resulted from lower interest rates charged by the Company s banks as well as lower outstanding debt in the current period.
The Company s benefit for income taxes for the three months ended December 31, 2010 decreased by $10,000 to a benefit of $51,000 as compared to a benefit of $61,000 for the same period a year ago. The Company s benefit for income taxes for the six months ended December 31, 2010 increased by $61,000 to a benefit of $242,000 as compared to a benefit of $181,000 for the same period a year ago. The changes in the benefit for income taxes were due primarily to a the change in the proportion of the loss before income taxes being generated by the Company s U.S. operations to the loss being generated by non-taxable foreign operations in the quarter ended December 31, 2010 as compared to the same period a year ago. As a result, the Company s effective rate for income tax was (48)% for the three months ended December 31, 2010 as compared to 6% for the same period a year ago and 20% for the six months ended December 31, 2010 as compared to 6% for the same period a year ago.
Net income increased by $1,069,000 to $157,000 or $0.01 per diluted share for the three months ended December 31, 2010 as compared to a net loss of $(912,000) or $(0.05) per diluted share for the same period a year ago. Net loss decreased by $1,753,000 to $(977,000) or $(0.05) per diluted share for the six months ended December 31, 2010 as compared to a net loss of $(2,730,000) or $(0.14) per diluted share for the same period a year ago. The change for the three and six months ended December 31, 2010 was primarily due to the items as described above.
On October 28, 2010, the Company entered into a Second Amended and Restated Credit Agreement Dated as of October 28, 2010 among the Company, as the Borrower, Capital One, N.A., as a Lender and HSBC Bank USA, National Association as Lender, Administrative Agent and Collateral Agent (the “Second Amended Agreement”). The Second Amended Agreement amended and restated the previous term loan and revolving credit facility and provides for a term loan of $16,070,000 and a revolving credit facility of $11,100,000. Prior to closing on October 28, 2010, $11,100,000 was outstanding under the existing revolving credit facility and $17,856,000 was outstanding under the existing term loan. The Second Amended Agreement provides for the same expiration dates and repayment schedule as stated above except for an accelerated payment of $1,786,000, which was paid at closing and represents the payments previously scheduled for December 31, 2010 and March 31, 2011 under the Term Loan. In addition, the Company repaid $1,000,000 of the Revolving Credit Facility at closing. The post-closing balance of the Term Loan on October 28, 2010 is $16,070,000 and the balance outstanding under the Revolving Credit Facility was $10,100,000. The Second Amended Agreement also provides for a LIBOR interest rate option of LIBOR plus 4.5% in addition to the existing prime option of prime plus 4.0% and financial covenants that better reflect the Company s current financial condition. In addition, the Second Amended Agreement contains waivers for non-compliance with certain covenants in the previous facilities. The Company s obligations under the Second Amended Agreement continue to be secured by the Company's headquarters in Amityville, New York, certain other assets and the common stock of the Company's wholly-owned subsidiaries.
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