Napco Security Systems Inc. (NSSC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Napco Security Systems Inc. has a market cap of $41.06 million; its shares were traded at around $2.15 with and P/S ratio of 0.59.
impact on reported net sales and income. This accrual is calculated based on a
history of gross sales and actual sales returns, as well as management's
estimate of anticipated returns and allowances. As a percentage of gross sales,
sales returns, rebates and allowances were 6% and 10% for the nine months ended
March 31, 2010 and 2009, respectively. The percentage in fiscal 2009 was
impacted by a large number of returns in the company's middle east operation
which the Company is currently winding down. The percentage in fiscal 2010 has
returned to normal historical levels.
Results of Operations
-
Three months ended March 31, Nine months ended March 31,
(dollars in thousands) (dollars in thousands)
- -
% Increase/ % Increase/
2010 2009 (decrease) 2010 2009 (decrease)
- - - - - -
Net sales $16,015 $14,024 14.2% $47,121 $50,586 (6.8)%
Gross profit 4,151 (196) 2,218.9% 11,482 11,626 (1.2)%
Gross profit as a % of net sales 25.9% (1.4%) 27.3% 24.4% 23.0% 1.4%
Selling, general and administrative 4,979 4,919 1.2% 14,073 15,142 (7.1)%
Selling, general and administrative as a percentage of net sales 31.1% 35.1% (4.0)% 29.9% 29.9% -%
Impairment of goodwill 923 - 100.0% 923 - 100.0%
Operating (loss) income (1,750) (5,260) (66.7)% (3,513) (3,663) (4.1)%
Interest expense, net 591 426 38.7% 1,759 1,170 50.3%
Other expense (income) 14 76 (81.6)% (7) 101 (106.9)%
Net loss attributable to non-controlling interests - (112) (100.0)% - - -%
(Benefit) Provision for income taxes (491) (859) (42.8)% (672) (574) (17.1)%
Net (loss) income (1,864) (5,015) (62.8)% (4,594) (4,360) 5.4%
Sales for the three months ended March 31, 2010 increased by approximately 14%
to $16,015,000 as compared to $14,024,000 for the same period a year ago. Sales
for the nine months ended March 31, 2010 decreased by approximately 7% to
$47,121,000 as compared to $50,586,000 for the same period a year ago. The
increase in sales for the three months ended March 31, 2010 was primarily due to
increased sales in the Company's intrusion products ($1,573,000) as well as its
door-locking products ($418,000) The decrease in sales for the nine months ended
March 31, 2010 was primarily from decreased sales of the Company's intrusion
products ($188,000), door locking products ($2,210,000) and products specific to
the Company's Middle East operation ($1,067,000). The Company's sales continue
to be adversely affected by the worldwide economic downturn, primarily since the
quarter ended March 31, 2009.
Gross profit for the three months ended March 31, 2010 increased to $4,151,000
or 25.9% of sales as compared to a loss of $196,000 or (1.4)% of sales for the
same period a year ago. Gross profit for the nine months ended March 31, 2010
decreased to $11,482,000 or 24.4% of sales as compared to $11,626,000 or 23.0%
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 months was primarily due to the
restructuring charge incurred in the quarter ended March 31, 2009. The increase
in Gross profit as a percentage of sales for the nine months was also primarily
due to this restructuring charge in the prior fiscal year. In addition, the
decrease in Gross profit dollars for the nine months was primarily due to the
decrease in net sales as partially offset by the prior year's restructuring
charge.
Selling, general and administrative expenses for the three months ended March
31, 2010 remained relatively constant at $4,978,000, or 31.1% of sales, as
compared to $4,919,000, or 35.1% of sales a year ago. Selling, general and
administrative expenses for the nine months ended March 31, 2010 decreased by
$1,070,000 to $14,072,000, or 29.9% of sales, as compared to $15,142,000, or
29.9% of sales a year ago. The decrease in expenses as a percentage of sales for
the three months was primarily due to the increase in sales in the quarter ended
March 31, 2010 as compared to the same period a year ago. The decrease in
expenses for the nine months ended March 31, 2010 was due primarily to the
decrease in sales as well as reductions in personnel in response to the decrease
in sales. These reductions were initiated in the quarter ended March 31, 2009.
The Company's benefit for income taxes for the three months ended March 31, 2010
decreased by $369,000 to a benefit of $491,000 as compared to a benefit of
$859,000 for the same period a year ago. The Company's benefit for income taxes
for the nine months ended March 31, 2010 increased by $96,000 to a benefit of
$672,000 as compared to $574,000 for the same period a year ago. The decrease in
the benefit for income taxes for the three months was due primarily to the loss
before income taxes decreasing to $2,355,000 from a loss of $5,762,000 for the
same period a year ago. The increase in the benefit for income taxes for the
nine months was primarily due to the loss before income taxes increasing
slightly to a loss of $5,266,000 from a loss of $4,934,000 for the same period a
year ago. As a result, the Company's effective rate for income tax was 20.8% and
12.8% for the three and nine months ended March 31, 2010, respectively as
compared to 14.6% and 11.6% for the same period a year ago.
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Napco Security Systems Inc. has a market cap of $41.06 million; its shares were traded at around $2.15 with and P/S ratio of 0.59.
Highlight of Business Operations:
Our sales return accrual is a subjective critical estimate that has a directimpact on reported net sales and income. This accrual is calculated based on a
history of gross sales and actual sales returns, as well as management's
estimate of anticipated returns and allowances. As a percentage of gross sales,
sales returns, rebates and allowances were 6% and 10% for the nine months ended
March 31, 2010 and 2009, respectively. The percentage in fiscal 2009 was
impacted by a large number of returns in the company's middle east operation
which the Company is currently winding down. The percentage in fiscal 2010 has
returned to normal historical levels.
Results of Operations
-
Three months ended March 31, Nine months ended March 31,
(dollars in thousands) (dollars in thousands)
- -
% Increase/ % Increase/
2010 2009 (decrease) 2010 2009 (decrease)
- - - - - -
Net sales $16,015 $14,024 14.2% $47,121 $50,586 (6.8)%
Gross profit 4,151 (196) 2,218.9% 11,482 11,626 (1.2)%
Gross profit as a % of net sales 25.9% (1.4%) 27.3% 24.4% 23.0% 1.4%
Selling, general and administrative 4,979 4,919 1.2% 14,073 15,142 (7.1)%
Selling, general and administrative as a percentage of net sales 31.1% 35.1% (4.0)% 29.9% 29.9% -%
Impairment of goodwill 923 - 100.0% 923 - 100.0%
Operating (loss) income (1,750) (5,260) (66.7)% (3,513) (3,663) (4.1)%
Interest expense, net 591 426 38.7% 1,759 1,170 50.3%
Other expense (income) 14 76 (81.6)% (7) 101 (106.9)%
Net loss attributable to non-controlling interests - (112) (100.0)% - - -%
(Benefit) Provision for income taxes (491) (859) (42.8)% (672) (574) (17.1)%
Net (loss) income (1,864) (5,015) (62.8)% (4,594) (4,360) 5.4%
Sales for the three months ended March 31, 2010 increased by approximately 14%
to $16,015,000 as compared to $14,024,000 for the same period a year ago. Sales
for the nine months ended March 31, 2010 decreased by approximately 7% to
$47,121,000 as compared to $50,586,000 for the same period a year ago. The
increase in sales for the three months ended March 31, 2010 was primarily due to
increased sales in the Company's intrusion products ($1,573,000) as well as its
door-locking products ($418,000) The decrease in sales for the nine months ended
March 31, 2010 was primarily from decreased sales of the Company's intrusion
products ($188,000), door locking products ($2,210,000) and products specific to
the Company's Middle East operation ($1,067,000). The Company's sales continue
to be adversely affected by the worldwide economic downturn, primarily since the
quarter ended March 31, 2009.
Gross profit for the three months ended March 31, 2010 increased to $4,151,000
or 25.9% of sales as compared to a loss of $196,000 or (1.4)% of sales for the
same period a year ago. Gross profit for the nine months ended March 31, 2010
decreased to $11,482,000 or 24.4% of sales as compared to $11,626,000 or 23.0%
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 months was primarily due to the
restructuring charge incurred in the quarter ended March 31, 2009. The increase
in Gross profit as a percentage of sales for the nine months was also primarily
due to this restructuring charge in the prior fiscal year. In addition, the
decrease in Gross profit dollars for the nine months was primarily due to the
decrease in net sales as partially offset by the prior year's restructuring
charge.
Selling, general and administrative expenses for the three months ended March
31, 2010 remained relatively constant at $4,978,000, or 31.1% of sales, as
compared to $4,919,000, or 35.1% of sales a year ago. Selling, general and
administrative expenses for the nine months ended March 31, 2010 decreased by
$1,070,000 to $14,072,000, or 29.9% of sales, as compared to $15,142,000, or
29.9% of sales a year ago. The decrease in expenses as a percentage of sales for
the three months was primarily due to the increase in sales in the quarter ended
March 31, 2010 as compared to the same period a year ago. The decrease in
expenses for the nine months ended March 31, 2010 was due primarily to the
decrease in sales as well as reductions in personnel in response to the decrease
in sales. These reductions were initiated in the quarter ended March 31, 2009.
The Company's benefit for income taxes for the three months ended March 31, 2010
decreased by $369,000 to a benefit of $491,000 as compared to a benefit of
$859,000 for the same period a year ago. The Company's benefit for income taxes
for the nine months ended March 31, 2010 increased by $96,000 to a benefit of
$672,000 as compared to $574,000 for the same period a year ago. The decrease in
the benefit for income taxes for the three months was due primarily to the loss
before income taxes decreasing to $2,355,000 from a loss of $5,762,000 for the
same period a year ago. The increase in the benefit for income taxes for the
nine months was primarily due to the loss before income taxes increasing
slightly to a loss of $5,266,000 from a loss of $4,934,000 for the same period a
year ago. As a result, the Company's effective rate for income tax was 20.8% and
12.8% for the three and nine months ended March 31, 2010, respectively as
compared to 14.6% and 11.6% for the same period a year ago.
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