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Mar 31, 2024
Napco Q3 2024 Earnings Report
NAPCO reported record revenues, net income, and adjusted EBITDA for Q3 of fiscal 2024.
Key Takeaways
NAPCO Security Technologies reported a strong third quarter in fiscal 2024, achieving record revenues of $49.3 million, a 13% increase year-over-year. Net income also reached a record $13.2 million, up 38% from the same period last year, and adjusted EBITDA increased by 37% to $15.6 million. The company's recurring service revenues grew by 29% to $19.5 million, with a gross margin of 92%.
Net sales for the quarter increased 13% to $49.3 million, the highest quarterly sales in the company's history.
Recurring service revenue increased 29% to $19.5 million, representing 40% of total revenue.
Net income for the quarter increased 38% to $13.2 million, a quarterly record.
Adjusted EBITDA for the quarter increased 37% to $15.6 million, also a quarterly record.
Napco
Napco
Napco Revenue by Segment
Revenue by Segment
Recurring Services Revenue
CapyFin.comEquipment Sales Revenue
CapyFin.com Forward Guidance
NAPCO anticipates continued financial strength, product innovation, technical superiority, and strong profitability for the balance of fiscal 2024 and beyond.
Positive Outlook
- NAPCO is focused on further penetrating markets in school and classroom security, healthcare, and retail loss-prevention.
- NAPCO recently announced the introduction of Prima by NAPCO, a new All-in-One Panel for security, fire, video and connected home.
- NAPCO's record-breaking results for Q3 of fiscal year 2024, was primarily the result of the continued growth and profitability from recurring revenues as well as the strong sales from our Alarm Lock and Marks locking product lines.
- Radio sales in Q3 improved over Q2, increasing by approximately 2%.
- NAPCO expects radio sales to continue to be a key contributor to our hardware sales and continue to lead to the continued growth of our highly profitable recurring revenues.
Challenges Ahead
- There is more work to be done to improve the gross margin for hardware sales.
- Forward-looking statements are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance.
- Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those risk factors set forth in the Company's filings with the Securities and Exchange Commission
- Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements.
- NAPCO cannot guarantee future results, level of activity, performance, or achievements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income