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Napco Security Systems Inc. (NSSC) filed Quarterly Report for the period ended 2011-03-31.
Napco Security Technologies Inc. has a market cap of $42.01 million; its shares were traded at around $2.2001 with and P/S ratio of 0.62.
This is the annual revenues and earnings per share of NSSC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NSSC.
Highlight of Business Operations:
Sales for the three months ended March 31, 2011 increased by 10.9% to $17,760,000 as compared to $16,015,000 for the same period a year ago. Sales for the nine months ended March 31, 2011 increased by 7.6% to $50,695,000 as compared to $47,121,000 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 door-locking products ($1,270,000) and intrusion products ($560,000). The increase in sales for the nine months was primarily due to increased sales in the Company s door-locking products ($2,354,000) and intrusion products ($1,287,000). Sales for the three and nine months of the Company s access control products remained constant as compared to the same periods a year ago.
Gross profit for the three months ended March 31, 2011 increased to $5,513,000 or 31.0% of sales as compared to $4,151,000 or 25.9% of sales for the same period a year ago. Gross profit for the nine months ended March 31, 2011 increased to $13,626,000 or 26.9% of sales as compared to $11,482,000 or 24.4% of sales for the same period a year ago. The increase in Gross profit in dollars and as a percentage of sales for the three and nine months was primarily due to the increases in sales described above as well as the Company keeping overhead costs relatively constant. In addition, the Company received a $623,000 repayment from the seller in the Marks acquisition. This repayment related to inventory that remained unsold since the acquisition and, accordingly, is recorded as a reduction of Cost of sales. The Company also recorded a charge to inventory obsolescence of $500,000.
Selling, general and administrative expenses for the three months ended March 31, 2011 decreased by $123,000 to $4,856,000, or 27.3% of sales, as compared to $4,979,000, or 31.1% of sales a year ago. Selling, general and administrative expenses for the nine months ended March 31, 2011 decreased by $918,000 to $13,155,000, or 25.9% of sales, as compared to $14,073,000, or 30.0% of sales a year ago. The decrease in Selling, general and administrative expenses in dollars and as a percentage of net sales for the three and nine months was due primarily to a tradeshow, that occurred in the third quarter of last year, occurring subsequent to the third quarter in the current year, the reduction of bank fees relating to amendments and waivers, lower stock option expense as existing grants become fully amortized and reduced wages resulting from the consolidation of the Marks company into the Company s operations in Amityville, N.Y.
Interest expense, net for the three months ended March 31, 2011 decreased by $263,000 to $328,000 as compared to $591,000 for the same period a year ago. Interest expense, net for the nine months ended March 31, 2011 decreased by $426,000 to $1,333,000 as compared to $1,759,000 for the same period a year ago. The decrease in interest expense for the three and nine months ended March 31, 2011 resulted from lower interest rates charged by the Company s banks as well as lower outstanding debt in the current period.
Net income increased by $2,559,000 to $695,000 or $0.04 per diluted share for the three months ended March 31, 2011 as compared to a net loss of $(1,864,000) or $(0.10) per diluted share for the same period a year ago. Net loss decreased by $4,312,000 to $(282,000) or $(0.01) per diluted share for the nine months ended March 31, 2011 as compared to a net loss of $(4,594,000) or $(0.24) per diluted share for the same period a year ago. The change for the three and nine months ended March 31, 2011 was primarily due to the items as described above as well as a charge to goodwill in the three and nine months ended March 31, 2010 of $923,000.
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 was $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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