NSSC - Earnings call transcript Q4 2018 | Napco Security Technologies, Inc.

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Operator

Greetings and welcome to the NAPCO Security Technologies fiscal fourth quarter 2018 and year-ending earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Patrick McKillop, Director of Investor Relations. ahead. go Please

Patrick McKillop

financial good all the and release Thanks name Patrick the year review discuss is joining quarter to fiscal Thank and opportunity you XXXX of morning. the should Investor discussing I'm fiscal our to call Director on By Security. press for Relations McKillop. results. our us fourth now, you XXXX. today's My results of for the for had NAPCO have

is not, available of have copy a Relations the release the you section in If our of Investors www.napcosecurity.com. website,

is the call Senior Soloway, On of CEO NAPCO and President Technologies, today Buchel, Richard Kevin President and and CFO. Security Vice

involve begin, This such uncertainties. certain set Actual numerous the me let may factors, moment a results, forward-looking performance we or those the conference to materially in the contain company's statement. may result anticipated achievements from those read a of SEC. including that filings in with risks Before call differ forward-looking and take statements as statements forth forward-looking

I call the to present definition to earlier financial adjusted Dick these our may instead well of financial few these a will financial and issued on financial wanted the a measure, about discussion In over the These investors non-GAAP considered not that find why ratios financial do, a you'll financial before results. the should non-GAAP the non-GAAP also I non-GAAP in measures. with used of a measures. as be are we as relevant think on certain we are to I and GAAP front. certain but moment are the and measures as just included matters turn things press mention financial EBITDA tables measures such IR GAAP of for release of measures these closest today, benefit these a During call, measures, with reconciliation the

cap us CL the like and is be of Investor at one-on-one York to on September and companies New as outreach, XX. hosting we I meetings King NAPCO, upcoming investor to conference will such terms outreach small call presenting and thank all of in In crucial the Richard would Dick, of marketing those conferences over Soloway, turn and the that yours. With of out let the to way, folks NAPCO me Security President trips. that is CEO in floor Technologies. these assist

Richard Soloway

you, conference call. you profitability for Thank another welcome and discuss our us fiscal results. marked NAPCO. revenue XXXX everyone, joining and today morning, Patrick. Good fourth The record to and our quarter to year for performance Thank

grow to rapid continued revenues a at recurring rate. SaaS Our

versus annual The the In intrusion, offerings, million is revenues our and of rate StarLink growth be of and R&D fourth investment all to and expenses our which is the investments $XX.X run that currently. now quarter as level R&D marketing the in of July. fire and year-ago for we include we recurring It for revenue selling and Our the have driver belief recurring period. fiscal of continues of year, maintained connect. the appropriate levels SG&A

income thus this have the on we year, net returns Our investments XX% made. by showing increased

The grow. with the equity communicators, trends growth returns strong positive smart key home, a products. connected focused continue management and report equally of and important here team include on both shareholders trends. on of key are safety this impact creation as NAPCO. zero security having remains revenue sheet profits school the our trends debt cellular balances at these are These growth, All cash We industry balance Our to and to of in metrics recurring capitalizing alarm on and on remain and results. our

senior management owns equity. with shareholders and and interests our XX% of aligned our well Our business strategies are NAPCO the at executing are

of overview outlook. fourth Kevin CFO, I strategies into fiscal back detail, year call provide the our greater more Buchel, will and over our turn an be on then to quarter And with Kevin? financial results. fiscal I'll going the who and now Before will

Kevin Buchel

And Dick. good you, morning, Thank everybody.

For quarter performance. fourth X% the quarter, net fourth a which record sales million, to increased $XX.X was

net primarily fiscal record services, $XX.X sales sales for XXXX, a communications increase sales products our the X% products. The increased to the quarter locking related million. and products, in alarm of to For control access increased and were door

of and sales the year. increased XX% XX% the as as in XX% sold. For expenses X% our for the profit for fiscal a margin full this to the is believe access the XX% We gross periods as and of shown monthly quarter of increased communications are quarter for a XXXX a operating XXXX clearer last $XX.X a Gross cost well year. control for now a on $XX.X year, million X% year. for to increased million like million reclassification $XX.X $XX.X all rate prior expenses from sales July as part based related with an products. you the have in XX% XX% research revenue well. Gross million and with as to services gross compared this gross no alarm increase on margin to million, of division compared goods with separately development now as to and made was that presentation margin are of we alarm longer from annual included margin Recurring based and June XXXX. of profit to $XX.X gross fiscal has fiscal run Recurring I’d primarily $XX million, fourth of the revenue last year increased with remind

or versus $X.X million last year. quarter were fourth X% As sales the R&D the to our $X.X sales decreased compared to Dick year-ago X% or X% R&D mentioned, period. for year of million and of constant expenses SG&A the for expenses relatively

compared of to year. as to sales sales at For $X.X QX or last the XX% to R&D million expenses fiscal year, year. X% SG&A million or relatively X% of $X.X for XX% decreased or of X% constant or $X.X were expenses compared $X.X last sales as million year-over-year of million sales

advertising and $XX sales SG&A expenses at decreases of percentage XX% in as year. tradeshow a of primarily decrease the constant sales XXXX, to fourth million from The percentage $XX.X in Operating million XX% resulted of compared increase for to as or For sales also or of The quarter in XX% sales. increased as relatively of a and million the year. $X.X dollars as were to result last the compared million income expenditures. last decrease $X.X was sales fiscal

to $X.X diluted income XX% of the outlined to XXXX. The $X.X changes code for was at $XXX,XXX company's to rate the as million operating XX% a Tax XXXX, quarter decreased period income to to last increased which diluted year US $X.XX the Net For provision for share to quarter $X.X for increased XX% year. rate $X.XX taxes as XXXX The or for income the XX%. compared fiscal in tax the increased the fiscal million compared for The effective last federal $XXX,XXX fiscal Income decrease as ago. $XXX,XXX expense XXXX $XXX,XXX XX, remain tax Act as million year. for primarily compared last recent per Cuts December same a corporate share company's to reduced to per to million year. tax fourth in HRX for compared year, $X.X income and tax or by Jobs the to fourth-quarter in constant rate effective as X% the record fiscal compared relatively to tax enacted $XXX,XXX on

net Also, XXXX income in than the record EBITDA year ago. as to $X.XX compared or outlined year the for million to For fiscal or compared million share in per the quarter, for history. a income schedule a in last XX% Adjusted net the million press for and $X.XX year, company's to year per the to was release, record $X.XX was June period $X.X XX% to of million increased XX, change $X.X per diluted The $X.X diluted per previously quarter year. share diluted net the million higher XX% the or due mentioned. or the included same share $X.X in diluted ended $X.X items income increased today's any XXXX as share $X.XX primarily the for

XX% $XX diluted last year, million $X.XX to EBITDA share $X.XX the increased share as diluted adjusted For per or compared to $X.X or million per year.

the the XX, to $X.X at June last XXXX. was to million XXXX balance year cash as balance million sheet, compared on $X.X XX, June Moving

to call operations fiscal And formal $X,XXX,XXX for Dick. That XX, increased during XXX% I to to million. $XXX,XXX $XX.X the ratio cash And XXXX to was current and as return was at the capital XX, CapEx compared XXXX. remarks. as like XX, concludes my June at to quarter back X.X June zero The X working Our XXXX. was with X.X XXXX XXXX million to June June compared $XX.X of XX, was debt year. for XXXX. was $X.X X million XX, the now at from as would June at Net

Richard Soloway

thank Kevin, you.

have security to – has Our highlighted to and business we that investors continually paradigm revenue. SaaS shifts recurring school

in and experiencing of in are both growth continue areas trend that the We future. to we these expect

During earlier portion our of revenue smart alarm the SaaS from of highlighted. was Demand continued we products growth in the is results, financial recurring this communicators, theme. Things which for recurring of the home coming expansion Internet discussed call of the our strong the category revenue and

will rate regular years no future. vast thrive for the is connected a XXX,XXX universities on security that USA. over spending security traditional in professional and physical alarm total The colleges It these to market them believe market and place safety IHS opportunity monitoring products K-XX the protect a to We expected very on accelerate over supersede schools addressable to the the and monitoring basis. security continue a according at systems five alarm continue of large, schools to majority happen recent incidences of amount school next the school from have remains during a us. report. market with for belief that continue school and market to the foreseeable The for is strong systems is as to XX,XXX Also, our security significant violent in begin

well focused is to on and that end-user introducing help that succeed. are Our products dealers and and the to services our innovative as services and as strategy new compelling grow products

StarLink Connect, The prestigious phone new cellular our installed year, that, NAPCO technology fiscal alarm traditional fire both of ability their legacy for home. communicator the and been to little and solution XX-plus one communicators for years. intrusion the among market. earlier most of A with R&D receive to voted line. in were allows that introduced intrusion titans Currently, we small to positioned the which our connect advanced Honeywell during in StarLink with the won industry network system alarm and in communicators, end in we ago, alarm of Connect LTE most existing residential StarLink which staff hardware is is feature-packed business We Sales the are QX, engineers the industry. lines currently of growth market, transmission have Security the line StarLink Integration according over over take show developing. without US products remove market. strongly to that as the is a in is the industry Trade Conference Show of which best at the signal such a the International the proud year Security upgrade a the for brands user the the have communicator top the and the are the connect we part is in of alarm already lieu utilize The largest industry used that extensive launched publication. of the in magazine, perfect in alarm products trade Bosch gives the two XXXX, & the The West their and security awards need version Furthermore, many an we

a works video, tandem connect is locks, can which money competitor which of the compatible dealers smartphone which the using the seeing major process, iBridge them with as services live the control The many enables and workday. a such for the gives customer time our send approximately service very user smartphone. to call this US system, save only There to in the can XX% Dealers the during business, well. avoid has alarm while large. thermostat the with connect the lighting, great million during Our end and having of is in households as jobs collecting are app, and communicator, installation a Remote market more help been dealers total addressable still all troubleshooting market schedule is penetrated. fee. or premise to feature also Connect which StarLink small a XXX The truck on brands, connect interactive of the door all

our and We Internet. the are growth products with big DIY can we conversations research continued market, According to box are up out These innings various and the vertical. yet products are professionally or that major the smart homeowners stores school market. in at that while that they're the market witnessing come on out of the the in installed and find belief initially are is seen, the product the of reports end you Many impact growing, DIY there during solutions tearing it often DIY the the analysts. not market installed a on investors growth The early have replace It connect having home product. and best home with the is a our connected come. up professionally to we’re

Now, growth products are portfolio few in of our other I’d contributions business. of a the like minutes our spend to some the to discussing that making

new buildings for high-rise and will and these locks. As US, in pace wireless well are to to multiuse our space get witness this new business. require communicators we the access CLO construction robust believe a [ph], of bodes control plus we buildings residential modern fire and Many commercial continue the of

Our fire in control Path hardware customized buildings. incorporate StarLink and control of Architect access and architecturally wireless form network be which be variety types the communicator, all an Dual products will these pleasing locks lock, locks that CAXK in of of software, used are options. architect wireless finishes a in can access

these are Of as opportunities many products to retrofit be used there in well. course, to projects

communications. major in U to which Dual to revenue great installing we and For need to last developing our upgraded Therefore, the project which of our money example, millions of that are we’ve the they work there supporting during at more telephone the order of StarLink can US no across fire are many will bring improve these years. existing internal that to plain longer old are to us. fire Berkeley a are the According contributor lines research, been from currently they communicators as referenced recurring are around buildings commercial SaaS revenue the save California carriers lines. using products few success hard campus Path the in be has more

as will cost building Our R&D include will able creation, will our which services addition its This to the badge solution, would enable the cloud-based many and deletion attendance a solution. to access NAPCO owners the savings from reports the CAXK cloud-based in the by that in-house services the use These of outsource be they commercial is team to of employees a integrators outsourced our functions, service services. providing software, continues or end to to and on now as would as our creating will such of control be great the to NAPCO solution. recurring work them. Services employee share revenue through integrators users. offer generated database be and handled attraction

are Santa Florida and High horrific Fe safety. School discuss I’d Douglas topic Now, share more on move at security to of in vulnerable a or and two like The school products Texas. and the to no We we providing and High to the witnessed in schools need. all schools important Stoneman that have vast deep in the Marjory year, regarding tragedies US here incidences. these very Thus, majority events of we dedicated in little NAPCO at place. This sorrow School remain they and security violent solutions

you, like more way would be the back all at Hook to this done point. to have Sandy of shooting, the we, XXXX many with Going expected

XXXX, are directed the events. think seen XX need school we security. security install these states horrible aid give to pass changes we stopping Fortunately, legislation these finally products at which in have physical will they to resources schools happening In

of $X February. security billion into more passing the total, almost is Parkland, states It forward. near $XXX Maryland, $XX plus the in Wisconsin, $XX with million school our security the since legislation trend expectation million; proposed has Some million, going poured $XXX incident Florida this funding. of Massachusetts will have Recently, $XXX in annually million states school examples future. Florida, In governor that million; include continue, funding in

Our large can whether large solutions that the K-XX budget university schools, afford or solution. endowment a small or include a all for fund top-tier the with options

area. press security order fourth releases a to that product, security a to growth of have few. order outlook issued our our more school recently the will come, our approval for about with and have new from doing Jones prior for continue Bob including projects completed wins been from reinforce to to so. need using pipeline robust an in The receive and number we when can mention just from we this University, we announce school Pepperdine, to We to looks These continue as schools projects

a important to of to significantly cost the in continue this to This attended NAPCO savings met tradeshows Finally, plan that Earlier work sourcing Asia. and journey a many manufacturers an initiative our and we directly increase to the made myself of I our team would We from year, components many Asia. of employees on like that use mention of initiative. product. includes components we

beneficial continue that, We it plan over will time, model. be this to very business and believe our implement to

company of session to give We would as our a few will a brief like begin for portion continue we minutes, us Q&A I first, record-breaking successful, year summary. Fiscal deliver the very school but, and profits. XXXX grow in to this a was

exciting returns ownership equity, approximately a their beyond. we future I’d excited And very NAPCO’s and everyone to growth XXXX thank is senior show and performance sales of our in about strong believe Our the stock forward. high this NAPCO that joining in with to profits return and healthy like for going support XX%. and continue shareholders management in been R&D, are us have are investments year. rewarded year in its and sales retains position we marketing fiscal in a our We a and for have. beginning level to

the Q&A proceed. a like for We concluded. are Operator, remarks open formal now session. to now call would Our please

Operator

[Operator Instructions].

Our Canaccord. from question Mike your first Please comes proceed with Walkley, questions.

Mike Walkley

on you. for strong a congratulations And end-of-year quarter. Thank delivering fiscal

Richard Soloway

Thank you, Michael.

Mike Walkley

of outlined growth security, just kind you can you to at on spending, upgrade such of as funding new high-rise see state campus the going through levels years hardware you trends and for just your question, business? My next thought us over now first school X drivers X for growth walk given the some process how construction your

Richard Soloway

and enhance should number which markets, gestation nicely. have those. new for those volume security those to products. drive of existing there’s revenue our products line, product period a Both addressing school of will products We our which They're going a be typically products, recurring

So, that's we on have what tape.

As XX I said, we have engineers.

We’re new very these segments working solutions on create diligently to new our these of off verticals of business.

you’re to for on It time them, trade, right see takes but by a said, next going track. So, them as adopted little indications of this we are be to bit we’re year, year. the early

Mike Walkley

these Great. And states on investing? school is you're of terms terms just the winning you you. your how of then, That’s update sales Thank opportunity, all can how coverage in helpful. business, in

Richard Soloway

our we security there, colleges they of in We the work universities. dealer that are have these dealers, department with and them these the in in network, locking unique dealers the they out lock the some that as dealers are them, fact thousands are are of area shops, and which very call – in the and

into business. some the the dealers of And are alarm

the industry. So, cover sides both we of

unique We’re in way. that

into has is locking companies other Everybody only only the do access or either alarms. company do locking that both. We or and We’re else alarms.

want how lot they're department. heartbeat school about get been to have are a published our we’re dealers the these and can here to there with And sit of in our are dealers the that we side. school. pounding We many the of as you more custodial of because the do the our a purposes we've what's the sales bring totally are our out There’s of protect themselves with we access the associated to reason, the solution into when ready we well as haven't the only are and release NAPCO. – getting and name jobs out groups the they gotten, But administration as dealing locking it to put are sides, them school allowed releases that and integrated. gives leads our and funds that, their and But constantly going groups, schools A that sales as people many school. come bids to there. them streets our political schools then, because have show is with we press on kind of on alarm we for whatever side and when lot don't at and approval both So,

Mike Walkley

from me. question model Maybe line. I’ll thanks. on Great, the here. pass the Last more

a coming the seasonally should model, should quarters? distribution think strong what’s the how about given the off we just Thank your we just and rate from QX, the on rate last the inventory also Just quarter? about lower going you. of couple maybe seasonality channel here September into how think feedback then, for And your it’s forward, tax at

Kevin Buchel

gotten So, a over Mike, not QX much the last better is high number QX, as typically as it's years. of but couple

– in is QX, not get expect a And us. pipeline moving inventory XX, We this expect to to seen very to early it still we’re There’s profit well. action. it we going the we of inventory, the be we when that already be of the buy. And and the in. so parts going becomes XXs. through So, they're to everybody to in a loaded nicely expect with lot really do quarter QX that is in it for don't beat We've the

be tax our don't forward, would little as But will that’s helped it law few go It I rate. point we’re but good course, every revenue now well will rate. a very might good it’s as the that. use I by as up this helped, less, fair QX encouraged the So, one. rest tax going a far guiding the where And, wind new the XX% one, the We've year be factors being and a as that were that a of than beyond calculation. a quarter year. but rate, as we reached think of into other And is the more the recurring that.

XX%. The law a Use factors. helps use We’re but us, new helped XX%. by of lot

Mike Walkley

Great. very much. Thank you

Kevin Buchel

Mike. Okay,

Operator

Company. Our Please Mobley, Benchmark next question. with The Gary from your proceed question comes

Gary Mobley

my mentioned Good bring you’ve what your morning, remarks your so Dick, in guys. done specifically hardware to – and Thanks your by tariffs of well a of of for ASP prepared for US, goods cost taking Asia. I'm your them products know goods some from from you far, in of down question. sourcing to sold alternatives desire increased out for with to tariff imposed this the goods change But as Dominican? those the how curious your and how impacts imported cost the sold

Kevin Buchel

Tariffs probably are where but us manufacturing directly hurting all of the ship and we the companies, Republic. where action a lot because because That’s to of Dominican operation all not the Dominican is. our That's is.

number now. will from So, aggressively this make a concept, it effect. Asia the area. is It’s no is to direct from going concept doing of We new parts cost there. us, for not a from buy the increasing but buy things more better low It’s Asia. we’re like that What is of

not get you Why It savings down. because, of it? the expense to COGS in way, The a once go you it's by tariffs. goods cost going after affect get not the come year. a recurring hurt will it year will after And it, sold. save We’re number

is is project this that leading. big a Dick So,

We and to fiscal years successful in for very it beyond. expect be XXXX

Mike Walkley

a in points Is mention? function other dropped points and XXX XXX mix? basis Is at rate, Okay. year you QX same the in your a about that, your it on basis of dropping products function the can basically of fiscal about And trend XXXX that finished relating factors margin sort year rebates any or to year-over-year. gross of

Kevin Buchel

that it’s the mix Mostly, it’s There’s mix. what – the that really mix is. stood very that point could changed we out nothing things, to important but

it's sometimes, higher. little a And

Sometimes, it’s lower. a little

the the expect that it encouraged was we for the fourth were in be, higher mentioned recurring margin from a carriers prior year, the We’re encouraged revenue that on that, for in X% than were had margins And the that the the it And we QX. that, And in improvement to a that margin, led rebate the quarter it quarter. what to was XX%. We over to through come did. recurring. overall, on expected we

pretty close were last margins the year. net-net, So, to

that’s volume And, With the the ramps that up, even it helps to is make project that course, undertaking, better. Dick too. as going of

So, margins we good about feel we very as forward. go the

Mike Walkley

no there you buyback buyback program Okay. shares? Can existing was remaining at under amount in the quarter? about Since share the no whether stands the there confirm or mention, not XXX,XXX share

Kevin Buchel

QX that statement in QX. And look It growing, with And buyback be is It cash? from more. on going starting we just on no more do that to a tuned thing was now back. big great is beautiful see is is to here we is will It’s will cash a XXX,XXX now. problem the and grow all – times good was June And right more. the cash balance buy about for cash And the experiencing because we’re the it the no opportunistically sales to that's we when because to The problem big collect have. There debt. stay starting because here, you do really that. that Right. what could means one

have. so, that’s And good a problem to

Mike Walkley

That’s guys. for Okay. All me. right. Thanks, it

Richard Soloway

Thank you.

Operator

[Operator Instructions].

Deutsch [ph]. Please Advisors your comes with with Bethrow question. from next Our Brian proceed question

Unidentified Analyst

guys. Good morning,

Your most Could shrank recently? fairly growth growing quarter minimal. talk you this equipment was and about what what's

Richard Soloway

school recurring expect The has that believe aberration. in business say, nicely products grown business the I very we But to some in nicely. revenue very, up panel very would temporary we security have control and And a in the industry alarm it’s there’s and pick very, general. less – grown

Unidentified Analyst

side, the equipment but the just business lock school on business, recurring is a higher me, side, remind not And is for margin that the you?

Richard Soloway

Yes, it is.

Unidentified Analyst

Okay.

guess, expect news overall read So, should do here? on would everything and made, in I based the – on announcements a that what you, you couple you earlier and think on sales you ask the would equipment side you've I that based of or, said accelerate I

Richard Soloway

believe products a the works of kind we have the been these which I believe to equipment growth new will couple for equipment products of the equipment There's the a paradigm. add years. it And lot of bunch also in on will. side, and of change

they’ll from because get be the little they're a months, would to been lots them. takes of out, a next six of I months year very to to expect probably six out done dealers before. So, which used for it And that, business us, time for that over never and generate products will the interesting bit

us, be these up resources So, should products it very to getting That time exciting hardware the for a nicely. very bolster of putting lot out. should

Unidentified Analyst

just little of reflected of exposure, is Okay. type a piece sort the housing And soft? in a the you have softening some up imagine, would lock business that bit, business. I with market being general just that

Richard Soloway

products business. supply residentially don't we in the side the of Well, any hardware

Unidentified Analyst

on commercial the But side?

Richard Soloway

Only the commercial.

products So, retrofits in types offices. buildings of renovating where in of lots and also our high-rise locking they're are new used all

both systems the do something budgets and up people also then, are course, that are we And lots those of on. about So, the expanded, to to faculty the do where the of waking and lockdown better we they fact kids talked is bidding going areas. of being protect school those

Unidentified Analyst

us, the recurring that any alarms, school Remind on sales? a Okay. is of there component to

Richard Soloway

other campuses. six The few school; months dorm instance, doing, later, portion of monthly from recurring XXX dorm doing, a months later X,XXX a recurring a not the or the doing dorm rooms, The classroom; a then then thing. doing for parts is of comes the rooms, rooms;

it’s see of orders think for the we talked system. that. I the Pepperdine, we a now time gotten So, the lot about, fourth Like expanding we’ve

additional expansive works, can well used see orders. get use it the get they to it we how the That’s and and and capabilities As it they recurring.

Unidentified Analyst

you only would highly classify on Would business when bidding say bids? or you competitive are it? company you that it’s the you're often in making there how And

Richard Soloway

to Fusion under side of it's get the that all Other to to integrated schools handled technology. are here and technical calls one the choose we’re then, And it answers you our company get locking the make another competitors, creates here the side all have company confusion. in access us ones call A lot Amityville. only of the locking because answers, lot and control access control the a and and

you’re don't gee, a bid. have if So, that win also. to of an manufacturers, schools business not we lot bother said, way And solution integrated

us gets industry unique of the of a different So, winning it a manufacturer business. lot is But one-stop there's being aspects shop in it. and

Unidentified Analyst

are of Or cycle but in that they now your calendar with not going towards right product? school happen of sure that where the where are the are early what to type earmarked these next year? would I'm extent something dollars the approved is and part is they budget run, of being that budgets

Richard Soloway

XX I school. want Brian. but when lot them think both, product June out the all of X, happens of A July kids are schools not are of it of them. lot fiscal A the years,

kids So, back. in they the end want have bidding very high that before product the the very, occurred in was the because months put to come process year since

the a are a now, And the coming if for jobs are back month. it's are kids thing will are when university, lot in being of awarded same kids the out again. and and So, a the December kids happen out

that of of a you time see so, And action year lot too.

that magic it’s year. no there's So, year. one It’s the of throughout time

Unidentified Analyst

Okay. Last talked acquisitions. you before. I question I have know this about is on

that see isn't has you is announced haven't anything, it we’d an announce price? thing, issue found want fit, haven't something of has The but compelling more to more You buy which been great you a businesses been it fine. to or I think, is last

Richard Soloway

both. that the that security the important have because to one the and of company to new valuations It’s hard companies, table way. combination is are want table. division, protect something life control we find and Since It’s to an to for new industry very it's of a the top-of-mind. home that most property. is things, And connected locking NAPCO unique high alarm companies very the is do and us fact ones access that It’s bring the in two

high want prices. they So,

So, getting with new of on XX engineers to one not out recurring It’s revenue. parade the want want us. the to problem. focus with in We two number between our for it’s We hit products things, those protect a schools. facets

use along comes price acquisition can Republic, if on, help it. our our can a right most for we’re And we’ve would about said the on and a entertain growing in by main acquisitions, lot So, it right drive. focus spending people systems the build but room to do then to if not growth it’s of manufacture and it we our this if with our business time talk grow internally. then, And that. dealers we There’s we with lot. the We of Dominican

Unidentified Analyst

you. for me. does That it Thank

Richard Soloway

you. Thank

Operator

Soloway And would and Instructions]. gentlemen, I turn closing reached question-and-answer the to the Richard remarks. have the like Ladies [Operator of for session. end we to back call

Richard Soloway

today’s for everyone, you, in participating conference call. Thank

discuss Kevin you XXXX questions, to QX you As a always, speaking you further call please support results. in thank information. again further feel Patrick, Bye-bye. We to for should few have fiscal and all interest and forward any NAPCO’s myself free months or for your to to we look

Operator

conference. today's concludes This

time. lines You your may this you disconnect Thank your participation. at for

Napco Security (NSSC) 4 Sep 182018 Q4 Earnings call transcript