2024 Q3 Form 10-K Financial Statement

#000155837024012547 Filed on August 29, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2 2024
Revenue $44.00M $50.33M $188.8M
YoY Change 5.58% 12.7% 11.07%
Cost Of Revenue $19.39M $22.49M $87.07M
YoY Change 0.64% 3.98% -10.02%
Gross Profit $24.62M $27.85M $101.8M
YoY Change 9.83% 20.89% 38.95%
Gross Profit Margin 55.94% 55.32% 53.89%
Selling, General & Admin $9.703M $10.85M $37.17M
YoY Change 15.22% 22.49% 10.7%
% of Gross Profit 39.42% 38.98% 36.53%
Research & Development $3.057M $3.027M $10.76M
YoY Change 25.44% 28.05% 15.38%
% of Gross Profit 12.42% 10.87% 10.58%
Depreciation & Amortization $470.0K $536.0K $1.826M
YoY Change 3.75% 0.75% -5.39%
% of Gross Profit 1.91% 1.92% 1.79%
Operating Expenses $12.76M $13.88M $47.94M
YoY Change 17.52% 23.66% 11.72%
Operating Profit $11.86M $13.96M $53.82M
YoY Change 2.6% 18.25% 77.47%
Interest Expense $1.144M $762.0K $2.568M
YoY Change 160.0% 99.48% 184.39%
% of Operating Profit 9.65% 5.46% 4.77%
Other Income/Expense, Net
YoY Change
Pretax Income $13.00M $14.73M $56.39M
YoY Change 8.38% 20.79% 80.56%
Income Tax $1.815M $1.192M $6.568M
% Of Pretax Income 13.96% 8.09% 11.65%
Net Earnings $11.19M $13.53M $49.82M
YoY Change 6.75% 28.1% 83.65%
Net Earnings / Revenue 25.42% 26.89% 26.38%
Basic Earnings Per Share $0.30 $1.35
Diluted Earnings Per Share $0.30 $0.36 $1.34
COMMON SHARES
Basic Shares Outstanding 36.87M 36.87M 36.81M
Diluted Shares Outstanding 37.18M 37.07M

Balance Sheet

Concept 2024 Q3 2024 Q2 2024
SHORT-TERM ASSETS
Cash & Short-Term Investments $102.2M $97.72M $97.72M
YoY Change 36.98% 46.39% 46.39%
Cash & Equivalents $85.60M $65.34M $65.34M
Short-Term Investments $16.59M $37.78M $32.38M
Other Short-Term Assets $4.466M $4.269M $4.269M
YoY Change 44.06% 25.49% 25.49%
Inventory $36.40M $34.80M $34.80M
Prepaid Expenses
Receivables $28.24M $31.90M $31.90M
Other Receivables $144.0K $73.00K $73.00K
Total Short-Term Assets $171.4M $168.8M $168.8M
YoY Change 24.43% 28.47% 28.47%
LONG-TERM ASSETS
Property, Plant & Equipment $9.287M $9.077M $14.56M
YoY Change 1.92% -2.48% -3.58%
Goodwill
YoY Change
Intangibles $3.523M $3.602M
YoY Change -8.61% -8.56%
Long-Term Investments
YoY Change
Other Assets $283.0K $286.0K $20.82M
YoY Change -3.74% -8.33% 28.13%
Total Long-Term Assets $38.46M $38.99M $38.99M
YoY Change -1.17% 10.47% 10.47%
TOTAL ASSETS
Total Short-Term Assets $171.4M $168.8M $168.8M
Total Long-Term Assets $38.46M $38.99M $38.99M
Total Assets $209.9M $207.8M $207.8M
YoY Change 18.79% 24.66% 24.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.936M $7.977M $7.977M
YoY Change -46.45% -1.04% -1.04%
Accrued Expenses $9.446M $10.35M $14.25M
YoY Change 23.7% 28.05% 22.6%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $24.69M $22.23M $22.23M
YoY Change 12.74% 12.92% 12.92%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $6.596M $6.634M $6.634M
YoY Change -3.0% -2.43% -2.43%
Total Long-Term Liabilities $6.596M $6.634M $6.634M
YoY Change -3.0% -2.43% -2.43%
TOTAL LIABILITIES
Total Short-Term Liabilities $24.69M $22.23M $22.23M
Total Long-Term Liabilities $6.596M $6.634M $6.634M
Total Liabilities $31.28M $28.86M $28.86M
YoY Change 9.08% 8.98% 8.98%
SHAREHOLDERS EQUITY
Retained Earnings $180.9M $174.3M
YoY Change 24.5% 26.54%
Common Stock $24.54M $24.11M
YoY Change 10.23% 9.84%
Preferred Stock
YoY Change
Treasury Stock (at cost) $26.80M $19.52M
YoY Change 37.29% 0.0%
Treasury Stock Shares
Shareholders Equity $178.6M $178.9M $178.9M
YoY Change
Total Liabilities & Shareholders Equity $209.9M $207.8M $207.8M
YoY Change 18.79% 24.66% 24.66%

Cashflow Statement

Concept 2024 Q3 2024 Q2 2024
OPERATING ACTIVITIES
Net Income $11.19M $13.53M $49.82M
YoY Change 6.75% 28.1% 83.65%
Depreciation, Depletion And Amortization $470.0K $536.0K $1.826M
YoY Change 3.75% 0.75% -5.39%
Cash From Operating Activities $12.03M $14.34M $45.37M
YoY Change 7.28% 16.7% 83.68%
INVESTING ACTIVITIES
Capital Expenditures $680.0K $551.0K $1.594M
YoY Change 165.63% 32.77% -46.19%
Acquisitions
YoY Change
Other Investing Activities $16.14M -$274.0K -$1.557M
YoY Change -4237.44% -94.66% -93.85%
Cash From Investing Activities $15.46M -$825.0K -$3.151M
YoY Change -2496.28% -85.13% -88.85%
FINANCING ACTIVITIES
Cash Dividend Paid $13.26M
YoY Change 476.94%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -7.226M -3.688M -12.83M
YoY Change 145.62% 60.7% 479.8%
NET CHANGE
Cash From Operating Activities 12.03M 14.34M 45.37M
Cash From Investing Activities 15.46M -825.0K -3.151M
Cash From Financing Activities -7.226M -3.688M -12.83M
Net Change In Cash 20.26M 9.823M 29.39M
YoY Change 165.74% 121.24% -608.85%
FREE CASH FLOW
Cash From Operating Activities $12.03M $14.34M $45.37M
Capital Expenditures $680.0K $551.0K $1.594M
Free Cash Flow $11.35M $13.79M $43.77M
YoY Change 3.58% 16.14% 101.37%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><span style="text-decoration-color:#000000;text-decoration-line:underline;text-decoration-style:solid;">Nature of Business</span><span style="text-decoration-color:#000000;text-decoration-line:none;">:</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;">Napco Security Technologies, Inc (“NAPCO”, “the Company”, “we”, “us”) is one of the leading manufacturers and designers of high-tech electronic security devices, cellular communication services for intrusion and fire alarm systems as well as a leading provider of school safety solutions. We offer a diversified array of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. We have experienced significant growth in recent years, primarily driven by fast growing recurring service revenues generated from wireless communication services for intrusion and fire alarm systems, as well as our school security products that are designed to meet the increasing needs to enhance school security as a result of on-campus shooting and violence in the U.S. </p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;">Accounting Estimates</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;">The preparation of financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We continuously evaluate our estimates and judgments based on historical experience, as well as other factors that we believe to be reasonable under the circumstances. The results of our evaluation form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Critical estimates include management’s judgments associated with reserves for sales returns and allowances, allowance for credit losses, overhead expenses applied to inventory, inventory reserves, valuation of intangible assets, share based compensation and income taxes. These estimates may change in the future if underlying assumptions or factors change, and actual results may differ from these estimates.</p>
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IncomeTaxReconciliationStateAndLocalIncomeTaxes
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EffectiveIncomeTaxRateReconciliationOtherAdjustments
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IncomeTaxReconciliationOtherAdjustments
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EffectiveIncomeTaxRateReconciliationOtherAdjustments
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IncomeTaxReconciliationOtherAdjustments
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IncomeTaxExpenseBenefit
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DeferredTaxAssetsInventory
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CY2024Q2 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Goodwill
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CY2023Q2 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Goodwill
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CY2024Q2 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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CY2023Q2 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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CY2024Q2 us-gaap Deferred Tax Liabilities Other
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CY2023Q2 us-gaap Deferred Tax Liabilities Other
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CY2024Q2 us-gaap Deferred Income Tax Liabilities
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CY2024 nssc Unrecognized Tax Benefits Increase Decrease Resulting From State Filing Tax Positions
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CY2024Q2 us-gaap Income Tax Examination Interest Accrued
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CY2024Q2 us-gaap Unrecognized Tax Benefits
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UnrecognizedTaxBenefits
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CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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CY2024 us-gaap Defined Benefit Plan Contributions By Employer
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CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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