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Napco Security Systems Inc. Reports Operating Results (10-K)

October 13, 2009 | About:

10qk

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Napco Security Systems Inc. (NSSC) filed Annual Report for the period ended 2009-06-30.

NAPCO SECURITY SYSTEMS is engaged in the development manufacture distribution and sale of security alarm products and door security devices for commercial and residential installations. Napco Security Systems Inc. has a market cap of $27.21 million; its shares were traded at around $1.49 with and P/S ratio of 0.39. Napco Security Systems Inc. had an annual average earning growth of 13.1% over the past 10 years.

Highlight of Business Operations:

In March 2009, the Company began a Restructuring Plan consisting of a series of

actions to consolidate its Sales, Production and Warehousing operations of Marks

and those in Europe and the Middle East into the Corporate Headquarters in

Amityville, NY and its production facility in the Dominican Republic. We expect

these restructuring initiatives to cost between $1,200,000 and $1,500,000. The

majority of these actions have been completed by July 31, 2009, while certain

Production-related actions are expected to be completed by December 31, 2009.

Accordingly, the Company recognized restructuring costs of $1,274,000 in the

fiscal year ended June 30, 2009. Of this amount, $210,000 relates to Workforce

Reductions communicated in March 2009 and $1,064,000 to Business Exits and

related costs associated with inventory and lease impairments related to the

closure of the Marks, European and Middle East facilities. As of June 30, 2009,

$1,138,000 of the $1,274,000 in restructuring costs has been incurred and

$136,000 remains in accrued expenses.



High $4.54 $2.90 $2.82 $1.72

Low $2.45 $1.02 $0.76 $1.01



High $6.94 $6.25 $6.45 $5.00

Low $5.35 $4.83 $4.65 $4.45



2009(1) 2008 2007(2) 2006(2) 2005(2)(3)

- - - - -

Statement of earnings data:

-



Net Sales $69,565 $68,367 $66,202 $69,548 $65,229

Gross Profit 15,096 20,412 23,998 26,956 24,641

Impairment of Goodwill 9,686 - - - -

(Loss) Income from Operations (14,917) 3,137 6,501 9,523 8,910

Net (Loss) Income (13,382) 3,718 4,217 6,119 5,629

Cash Flow Data:

Net cash flows provided by (used in)

operating activities 6,792 3,784 (3,674) (168) 7,205

Net cash flows used in investing activities (25,229) (1,045) (1,294) (1,679) (658)

Net cash flows (used in) provided by

financing activities 19,781 (1,722) 3,978 3,407 (6,165)



Per Share Data:

-

Net (loss) earnings per common share:

Basic $(.70) $.19 $.21 $.31 $.29

Diluted $(.70) $.19 $.20 $.30 $.28

Weighted average common shares outstanding:

Basic 19,096,000 19,263,000 19,961,000 19,785,000 19,265,000

Diluted 19,096,000 19,802,000 20,599,000 20,605,000 20,284,000

Cash Dividends declared per common share (4) $.00 $.00 $.00 $.00 $.00



In March 2009, the Company began a Restructuring Plan consisting of a series of

actions to consolidate its Sales, Production and Warehousing operations of Marks

and those in Europe and the Middle East into the Corporate Headquarters in

Amityville, NY and its production facility in the Dominican Republic. We expect

these restructuring initiatives to cost between $1,200,000 and $1,500,000. The

majority of these actions have been completed by July 31, 2009, while certain

Production-related actions are expected to be completed by December 31, 2009.

Accordingly, the Company recognized restructuring costs of $1,274,000 in the

fiscal year ended June 30, 2009. Of this amount, $210,000 relates to Workforce

Reductions communicated in March 2009 and $1,064,000 to Business Exits and

related costs associated with inventory and lease impairments related to the

closure of the Marks, European and Middle East facilities. As of June 30, 2009,

$1,138,000 of the $1,274,000 in restructuring costs has been incurred and

$136,000 remains in accrued expenses.



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