NASDAQ$NSSC

Napco Security Technologies Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

NAPCO delivered record results, with a significant increase in sales and net income, driven by strong recurring service revenues.

NAPCO Security Technologies reported record fourth-quarter results, with a 54% increase in net sales to $35.4 million and net income of $5.0 million, compared to a net loss of $1.9 million in the same period last year. Recurring service revenue grew by 43% to $9.5 million, with a gross margin of 87%. The company's strong performance was attributed to its commercial intrusion and fire alarm business, which was not significantly affected by COVID-19.

  • Net sales for the quarter increased 54% to a record $35.4 million.
  • Recurring service revenue for the quarter increased 43% to $9.5 million with a gross margin of 87%.
  • Net income for the quarter was a record $5.0 million, compared to a net loss of $1.9 million for the same period last year.
  • Earnings per share (diluted) for the quarter was $0.27 as compared to a loss per share of $0.10 for the same period a year ago.

Headline financials

Total Revenue

$35.4M

Previous: $23M+54.0%
EPS (adj)

$0.14

Previous: -$0.00+7100.0%
Capital Expenditures

$441K

Previous: $292K+51.0%
Free Cash Flow

$6.12M

Previous: $3.4M+79.9%
Net Income

$5.03M

Previous: -$1.9M+364.5%
Operating Income

$5.98M

Previous: $1M+498.4%
Gross Profit

$15.1M

Previous: $7.99M+89.5%
Cash & Equivalents

$34.8M

Previous: $18.2M+91.2%
Total Assets

$123M

Previous: $104M+18.0%
Stock-Based Comp

$163K

Previous: $86K+89.5%

Revenue & EPS history

Napco · Revenue · Quarterly

$35.4M

Q4 2021+54%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Napco · $16.1M total across 1 segment · Q4 2023

  • Recurring Services
    $16.1M

Forward guidance

NAPCO anticipates continued growth and profitability expansion in fiscal year 2022, driven by its focus on expanding recurring revenue product offerings and managing logistical challenges.

Tailwinds

  • Record-setting revenue and profitability in Q4 and fiscal 2021.
  • Continued strong recurring revenue margins.
  • Expansion of recurring revenue product offerings into all product lines.
  • Focus on generating strong revenue growth.
  • Focus on increased profitability.

Headwinds

  • Challenging global logistics and supply chain environments.
  • Postponements of planned security upgrades due to the COVID-19 pandemic.
  • Shift in product mix with lower hardware margins.
  • Lower overhead absorption rate resulting from the reduction of inventories.
  • Potential impact of COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+1.4%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+7.5%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+33.0%

Q1 2024

Best reaction

-26.6%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-15.2%-12.6%-22.9%
Q2 2026+11.4%+18.3%+18.1%
Q1 2026-6.8%-4.6%-7.1%
Q3 2025+3.6%+10.9%+20.2%
Q2 2025-26.6%-29.9%-33.7%
Q1 2025-6.9%+0.2%+5.7%
Q4 2024-16.4%-16.4%-25.2%
Q3 2024+7.7%+4.5%+22.0%
Q2 2024+21.3%+25.7%+14.9%
Q1 2024+33.0%+35.6%+69.5%
Q4 2023+8.9%-38.4%-38.6%
Q3 2023+20.9%+22.8%+39.2%
Q2 2023+14.3%+1.6%+8.8%
Q1 2023+8.9%+13.0%+5.0%
Q4 2022+16.3%+13.9%+17.2%
Q3 2022-2.2%+4.0%+21.9%
Q2 2022-2.9%-3.9%-0.1%
Q1 2022-5.9%-3.4%+2.5%
Q4 2021+18.5%+8.7%+18.3%
Q3 2021-1.8%-2.9%+1.5%
Q2 2021+15.1%+20.6%+33.5%
Q1 2021+10.3%+16.3%+25.3%
Q4 2020-4.8%-3.3%+5.6%
Q3 2020+12.2%+19.1%+34.0%
Q2 2020-25.6%-23.3%-30.0%
Q1 2020-0.1%-1.6%+4.3%
Q4 2019-24.0%-25.3%-26.2%
Q3 2019+12.0%+10.6%+21.2%
Q2 2019+21.8%+29.7%+32.9%
Q1 2019+12.9%+15.0%+7.8%
Q4 2018+2.0%+2.0%-3.6%
Q3 2018+7.9%+7.3%+7.8%
Q2 2018-0.4%-0.5%+1.6%
Q1 2018-3.4%-5.1%-5.6%
Q4 2017+18.6%+9.0%+28.4%
Q3 2017-5.0%-10.0%-6.7%
Q2 2017-0.6%-2.7%+6.5%
Q1 2017+4.8%+6.4%+19.1%
Q4 2016-5.9%-7.3%-2.0%
Q3 2016-0.7%
Q2 2016-2.6%
Q1 2016-4.4%
Q4 2015-3.1%
Q3 2015+2.7%
Q2 2015+8.0%
Q1 2015-6.1%
Q4 2014+5.1%
Q3 2014+7.2%
Q2 2014-5.9%
Q1 2014-1.3%
Q4 2013-1.8%
Q3 2013-1.8%
Q2 2013+2.9%
Q1 2013-3.7%
Q4 2012+7.6%
Q3 2011-7.7%
Q3 2012-7.7%
Q2 2011-10.7%
Q2 2012-10.7%
Q1 2012-1.8%
Q4 2011+1.8%
Q1 2011+1.8%
Q4 2010-2.2%
Q3 2010-0.9%

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