NSSC - Earnings call transcript Q2 2019 | Napco Security Technologies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the NAPCO Security Technologies Inc. Fiscal Second Quarter 2019 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure your my Mr. now is to host, introduce It Investor Patrick of McKillop, Director Relations. you. Thank

You may begin.

Patrick McKillop

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

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

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

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

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

especially on recently California. issued. outreach, from that Matt February a March report we be over trips. companies us on new such in ROTH Point, floor the coverage will the we NAPCO as Investor of all Pfau X is With received CEO will yours. the upcoming outreach be of Dallas of attending out small like let his Also was I folks on these assist for to to XX, crucial President we that marketing the Soloway, job would is conferences me Dick, and Richard and cap Blair. and great Dana of those marketing and NAPCO team the did the Technologies. terms investor William that in In call sell-side turn way, and in Security Conference thank

Richard Soloway

Thank you, call. discuss morning, welcome everyone, today and Thank Good you results. to Patrick. conference for joining to our us our

and now record XXXX marked The for XX record quarters of year-over-year NAPCO. have revenue another We second fiscal consecutive performance profitability sales.

Our grow recurring The as revenue a of run XXXX. rapid million at now annual is December continues $XX.X rate. to rate

professional continuous Our driving end installations and is commercial targeting mostly strategy growth. our markets of

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

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

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

Kevin Buchel

morning good and Dick you, Thank everybody.

$XX.X million to to For performance increased the million record $XX.X second as the a year-over-year consecutive last which quarter record of sales second and compared quarter quarter was XX% year. XXth sales net

sales $X.X XXXX monthly XX, months six the The the ended ended primarily our increased locking access of the $XX.X sales and intrusion for XX% $X.X a a XX% communications increased December in year second three rate year. XX% were XXXX XX% million sales and quarter recurring gross million increase with run of revenue. to months net an margin a December with for revenue and to for XXXX door profit to XX, alarm products. six Recurring related versus last now to For increased for based XX% last products, last million from $X.X Recurring products, and million million margin revenue million quarter year. to million increased $XX.X to $X.X six gross increased Gross the million December on $X.X year. annual compared as to compared of ago the XX% months $XX.X has as million $XX.X of

or six year. for in of of the increased due sales compared profit R&D profit gross as with million a with or XX% gross increased last to gross quarter to the was and million X% sales. primarily three XX% second of margin expenses For sales of $XX gross a for margin X% million The to X% and compared months the to months in last increase increase $XX.X gross margin XX% to six year. $X.X $X.X the million

million of to sales some or year. XX% additional salaries million of compared sales to the $X.X as XX% compared is increased The and increase $X.X three six primarily expenses to or the million due the and of X% six last expenses decreased X% sales QX SG&A personnel. for $X.X sales to to to million $X.X year-over-year X% increased of last months R&D X% year. or months as For or

months Operating Operating increased last Income for XXXX SG&A of and $X.X months million compared a SG&A higher year. increased XXX% $X.X sales higher driven was expense ended $X.X increase million $XX.X months to year to level. to and due sales six For tax $X.X ago. income XXX% for was primarily of to lower compared the as to million sales or quarter XX% to to the million $XX,XXX XX% quarter by by as three compared expenses as company's negative year. promotion to commission benefit fiscal to XX, for the XXXX. last freight year. to to $XX.X $XXX,XXX QX costs was six X% million the sales increased The decrease last the months the compared or December XXXX the million as for tax of for The compared six due QX for a primarily rate effective $XXX,XXX XX% income fiscal X%for as increased

the of due or quarter primarily quarter previously as to $X.XX rate share increased six diluted for for the share first the months included expense outlined increased for six a to compared Adjusted expenses to record company's The for the $X.XX three as Net months share The year. both or million tax diluted the $XX,XXX to aforementioned share months today's the the income per increased six to year. $X.XX share release mentioned. was the XXX% per months the to or increased diluted last compared income. or $XXX,XXX or last year. $X.X increased items share was Adjusted per last increased $X.XX share tax six year. last $X.X $X period million press for a diluted $X.X as $X.XX for EBITDA for for months Net the effective per the year. and million income to XXX% same XXX% $X.X period For share per months per to second three as tax diluted net year. due last as million was million income operating as per six same The million XX% million in $X.X diluted the or $X.XX for six quarter compared or diluted as XX% diluted income to to $X.X compared the $XXX,XXX to last income in million compared increased to EBITDA per and X% to compared $X.XX $X.XX $X.X increased or the schedule

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

million. XXXX million to December ratio capital net cash year. Net the X compared to December as December for working months the activities was XX, XX, million $XX.X operating to to to XX, and six December during period at by of activities by increased $X.X XXX% compared June and XXXX XX, to $X.X June same the increased the provided ended XXXX and XXXX. $X.X X.X as as was X.X cash XXXX to current last months at compared million debt remained CapEx months the three a operating zero $XX.X at compared million XXXX with Our at million was X $XXX,XXX and as for last as provided year period $X.X was XX, million six quarter the XXX% XX, at for $X.X for

back Our open shares for XXXX. and bought to like opportunistically stock formal XX, That remains call We the we months future NAPCO. belief XXX,XXX XX, bright XXX,XXX have purchases remarks to that remains concludes approximately and Dick. the buyback December ended XXXX shares back six the for December return we my back as the have bought make I ended and quarter now during strong would

Richard Soloway

you. thank Kevin,

products. which and to driven be being We revenue by recurring about business the our in growth is continue of the security excited addition school

the other in recurring security parts school the our continue business revenue We as expect in that trend of the well and future. as growth to

security We the fire, the to in of category. revenue school the States continue for opportunity vertical. alarm coming important significant to United issue is this remains The and growth a communicators in from intrusion, including smart we there see an continue home and recurring believe products of topic demand

incidences there schools, since were the XXXX incidences shooting XXXX. restarted most K-XX XX in school reporting reported at of During

all $X poured over universities into you XXXX. February need. to shooting desperately school solutions since believe total, so We As XX,XXX and large dedicated providing that products billion horrific states that last is very the XXX,XXX security in witnessed have and we tragedies. the K-XXs remain school this many In We market colleges approximately with schools know, U.S. and year

he proposing recently be Clausen will As an stated example $XXX Senator which for million facility will violent legislation in security. protection recently, appropriate Minnesota and that

believe market approximately its over grow infancy few the XX% will as In continue. and connected next are alarm in systems. estimation. to of we connected systems million when our budgeted just professional there U.S. in roughly XXX home over best for we for school and schools the homes to come the Minnesota the is announce we growth demand prior that to projects new school continue to doing security pipeline amount to $XXX The million The totaling grant alarm wins need $XX XX million. security to robust from XXXX receive looks approval as or can will a we so. During and have times and monitoring systems The is request years continue market traditional yet

of and to Our been asking we phone the addition the versions and and one. product currently. been doorbell. StarLink companies in our Connect. lieu telephone support The use major doorbell extensive are offerings StarLink The in has different our communicators as networks transmission smart lines most quarter signals Last well buildings. the product in declining is the that intrusion declining being residential dual and versions; market business. been communicators video intrusion, in a home years. small and fire, to are commercial the The single Connect The the homes fire path latest many years. alarm dealers residential fashioned with industry has offer four have for offer phone We us lines while become for are over of the commercial allow alarm impacted used path the offering, cellular for old video for the have to The primarily of traditional the traditional telecommunications both lines popular announced

video can competitors' as of well with new many NAPCO major integrated our be Our systems as doorbell brands.

will video very the as know revenue to been past which growing line contribute recurring rate has Additionally, strong a few at our doorbell for our you years.

powered XXth. attending. years that alarm fire recurring tradeshow taking ISC the installation for is commercial in show products revenue savings analysts invite fire with place This believe Another cost the an It largest a be We from to is showing through a and control our recent with cellular easy FireLink come. to can it is enabling our in and covering to product will Vegas. FireLink at become is We drivers This new April we XXth comes strong for that the communicator control to are combination expected NAPCO XX,XXX attend. and all-in-one we and become great for West contributor It the portfolio alarm panel. tradeshow our some use installing in April, business and alarm our buildings. all the them revenue a for StarLink preactivated future. commercial built-in preconfigured to dealers. investors professionals industry recurring over addition be Las of will security hardware panel strategic

dealers to sales be You'll see the able purchasing who record to products our level. our meet are well them, as driving as

interested Investor enter can you Patrick, for show. If are this can our arrange contract of please you Relations so he and Director passes

team work Our products R&D recurring that business. revenue continues work to developing to will our on bring

continued We current working line. one application great as of a service have our that recurring and include that had our product on. control is growth The our success the with are products engineers of revenue example potential goals access

begin our portion will Q&A in of We this moment. call a session

as continue very XXXX breaking profit. grow successful was to quarter strong us we deliver and for quarter fiscal Our second record company the a

have NAPCO is forward. sales stock and returns a position shareholders growth rewarded continue very been a strong its performance. with and profits in to Our healthy in going

I about joining like us are year for fiscal support in XX%, excited equity, in rest management senior high of for and to approximately have. would our We XXXX future the everyone of this thank beyond. ownership exciting the and level maintains their we a and NAPCO's

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

Operator

Thank from with comes you. Our line William question. with Please [Operator Blair. proceed first your Instructions] of the Pfau Matt question

Matthew Pfau

and wanted about contribution a my Hey could from feel when in with $XX we the there then to products guys, quarter. attaining products And just you an taking business quarter, in revenue results? recurring goal? the start your for those how to recurring non-StarLink you nice the maybe result million the recurring revenue revenue and thanks in relative think job nice seeing update on off start questions I on do

Richard Soloway

much. so Thanks

We new which StarLink goal. goal show to our show them of going new we're of and successful revenue adding a to now communicators, products panels our part have and is at keep Our it's then many with all with come recurring inside we're ISC component new result. and it some on products piles out the all control to integrated added communicators

take XX% years. the should you we've $XX if So about out rate number couple you of XX%, growth we talking a and into be the compounded million been in

Matthew Pfau

do of seems a on happening quarter. was Got security then the opportunity, the a in you where we hardware XXXX wanted have shooting and the pipeline, about schools where some bad I Obviously terms the of in outperformance was seeing I hit in point security? of serious the but year, a of And it. These school are in more school that you're tipping think for in results guess time. to incidents it like significant in driver the getting quarter been terms their at quite some what

Richard Soloway

February year tide Well turning after saw ago, Florida we've the a we in it's about that saying so Parkland shooting XXXX. the speak Matt, been to

seemed As finally something waking tipping this be change security. horrible doing point were to up a problem result a school and of where that schools about it

for us, had We've press lot so quoting announcement. of And activity. a We've more had release seen more we've wins.

especially Sometimes K-XX they from money. the endowments universities times announce schools faced and to that was us they it but issues lot don’t down let a this big there's come now with have just are that's starting lot make been But the government of budget to of beginning easier, it, money we and is spend to fee. always who are

that more lot talk of see early We termed beginning. this what I just much think to more and there for done quarter schools or security, much more I it there could We you of the a be and to are the early we of and come. see come, is is innings stages So think more this to think to quarter you expect this school the go. to in

Matthew Pfau

about you've was in based released then you more at on ISD release opportunity, district a for it, press just the deals in school can Texas, districts one set forward? the maybe Lewisville other you can be that you a like then and and this this so past, on what just purchase drove you to is more Got school this than the - trend more is school a know quarter the that in perhaps comprehensive them the done talk products press seemed one is, case, comprehensive deal of the potentially least going the of

Richard Soloway

We that has like to alarm. access cross of lot sell control in company division and we're the and only a locking,

they of school lot and the did complement for like call whole or school a MO kind present of always we shop burglary products, full the have case that product. more security And department, the cards of department locking a of you the department safety we're the they when job. that divisions a business in of going divisions this to what needed and Typically sister so in and lock our schools brief do different for. closes Our NAPCO in. security, description That's

have and all we XX,XXX. We dealers, these access control than the and in more have have around of territories country we specialists because dealers thousands thousands

XX,XXX We – in they dealers, system have XXXX security have every XXXX integrators territory. we and are

So best out they they products we then is that us try and to protect call the mix will figure of in school. get the what the and called

And together cobble go – into because because with solutions try helps So product, of software one backbone We dealing good school fusion, different bunch and which a a us lot. they system. have companies, schools normal we fire, we network burglary, integrates just the are a so integrated and to well a locking than sell we it rather together because the have with try to that, beyond network only we – everything the our a and we go is a access. company

an advantage. that's So

here. have we push So that's a marketing big on going that

Matthew Pfau

of obviously me think you revenue regular terms one hardware sort of this on to before a non-fourth $XX mark about should revenue bit one Great, for regular revenue, away How you going hardware believe important million in a one that or hardware is the over is this guys. first basis can off hit this the a just that still more you quarter something more something non-fourth quarter million on is forward, a last and can the now $XX reach there was you quarter I the an have which basis? think we in from in where

Richard Soloway

Long years, worth to revenue million revenue. of hardware three about or term for $XXX couple in $XX together, and goal years much those monthly with profitability are greater company. is Put be couple talking a million recurring you the

So part but of what in is, quarter-to-quarter, forward going we our be to seeing coming this guys this our it be hardware expect couple the But for pretty together growth look positive going very quarter at we future. hit Kevin goals and seems quick you're where is could you it modeling to wise goal with that profitably years of company. very, has the to it's we and I And think a been out. don't be

Matthew Pfau

me it I'll from that's on, it Great, guys, pass thanks.

Richard Soloway

Matt. you, Thank

Operator

you. Thank

Our Walkley Mike of with with proceed Canaccord your line Please Genuity. next from question the comes question.

Unidentified Analyst

Hi again this my quarter. on the for Thanks congrats and strong is on Anthony Mike. taking for questions

– from far or Just as cost in you components gross Asia? higher primarily the attributed your saw are to expansion to schools on that projects saving like as we sourcing like hardware progress margin was terms initiatives of some starting with see the margin

Richard Soloway

Anthony. combination a It’s

factory it talked a point. about when how leverage a our from grows we So certain lot we Dominican about get

absorption, and see a on when quarters. for in kick other we're expansion, $XX over the overhead leverage in us of get you mark to that's that. when that million So margin over starts but see go to it we a lot We you the getting saw million QX, key $XX so

be also had some in school future. profitable, of this So term long from but to We in more that's a this of jobs, time lot well. saw schools quarter depends buy. get they as There's there quarter of begun to to very can Asia, as it too. bit is The takes that come little on you the in And well. That initiatives what true effect, that the also. a that

hardware get So had then $XX get on you both on level plus you expansion a working, if saw great side recurring everything, to of But the this margins little like numbers we margin point where you the bit has quarter. exceeded million things you get get the the that

Unidentified Analyst

the is Got year, of it last R&D, it, relative uptick And this investment. to levels remained say got it, I'd and elevated the great. then QX somewhat in kind on of

the types had I think out service, access just the your had prepared any mentioned might remarks, side, R&D the you provide as what's you other on Investment sense on expect? mentioned you you recurring control offerings in focused color of I know more coming of any know for we a revenue can there?

Richard Soloway

about inside. systems Oh, alarm integrated alarm, we communicators recurring talked the fire with revenue

been And has that. there of So revenue divisions from like recurring diligently that get we're type all our do very to we'd more things. and of to

XX we now, exciting get could do have these increased so and engineers people thing. we We more their engineering budget,

lot of finished them have and We products. a ideas turn into

pretty years could it see would and our for you show that company nil We've and for be be talk things products out. showing, we going concept well all more for so pretty, to we can are then revolutionary say things Everybody of needs come. so how engineers, they more see be couple we a the security. turn dealers a are it now So comes ISC the using products to creative be going more have our responding opener. industry. And of of I kind and to can which real the to to our eye the some to very are years got bodes

Unidentified Analyst

callers dealers other…? StarLink the or relative coming holiday Right, any of right Connect, to data I'm from on some from just the and then lastly me, just quarter, off points

Richard Soloway

has large it's and and we are continue it years for a to It’s our good growth The that market. penetrating, StarLink very, a Connect will market years. contributor very a

a alarms invented. sold million home As before you million, modernized thing such were was know, by the StarLink that dealers connected XX XX as previously Connect

be blocks fine, symptoms and lights many StarLink or they that existing those the home rip the it alarm. an of We those alarms a out to working and dealers old new because control out available can days. in and in of hour, live rather than if days had the were them put which a system thermostat of don’t Connect have and the to makes they just premise So video makes and modernized app all Connect alarms love

we're is in includes is Connect the nice and of it innovation. done would all on quite every out installing is that It and big reaping that is control down Now an there for get panel which it's hour brand an works going benefits to and here like to project it company. install

Operator

you. Thank

Our next proceed Benchmark the Mobley question from comes Company. The your of Gary Please with question. line with

Gary Mobley

over strong Congratulations consecutively morning. Hi start the quarter-to-quarter accelerating RSR That to three about for or the past and the asking carries wondering RMR the two-way the fivefold normal if so Want mostly as for good I'm has delta average quarters different revenue. or guys, known which that increase previous growing to been the quarter. I a the believe a radios is radios? function of

Richard Soloway

StarLink phone which and This for $XX hub We that built have that $X lines large in, dual those. on we it, new path a fire burglar $X us, is have a And into jurisdiction, buildings fire get we to the fire, strict us. have. path with radios make for substitute. a like have us with we the things a up commercial up say, just those. we now get a radios we was month radios then out which radio month And to for And radios most as commercial like fire then single been fire. and came or small because the approved leased to are in for to connect radio $XX be both it a comparative they've residential, replacement fire, stores, business to business original have integrated was centers the big the that assortment month. is built get and which big now, automation home of very to the $XX We with shopping growth And and up we ones in

we expect and from integrated They a we very the in and don't quick So dealer. more modern on the carrier. the very offer more solutions rely have business to telecommunications that go

can that be dealer going it the the property a difference is and profit telecom goes companies getting. They the to that dealer money split the normally installing it by the owner. the make to will telecommunications Now company, the also

there the are ISC a good scenario and things exciting it's of to us more So a for we with revenues, at be for will so dealers things people show lot show and protected. recurring and our exciting for

Gary Mobley

business past contribution diversity Continental haven’t business continental of there helpful as of much be will Okay, wanted diversity to you How revenue broken business? security level in to which and any building the detail access with in ask respect well? the the the I know out overall general axis the in Access the was the overall Access quarter revenue, to contributed to the about attributes product overall or but revenue I Continental strength

Kevin Buchel

quarter combine XX% combined the We quarter break and six months, our and that Q comp. The is could for access because months. you piece best if for was when the the X% for XX% locking in out so related intrusion breakout the the and the I that months they're anyway six XX% somewhat companies a and up was up of terms we you'll it for of up XX% up XX% give the kind together, was it’s piece and and six the We see recurring revenues for for is published. about locking quarter

also think I everything this that going working. in was

Gary Mobley

installations? the diversity is of two So that growth or was by driven one it specific

Kevin Buchel

and just lot hard board. of we've all clicking the don't that's the to work got the hardware pony, We a of things to do was we want quarter recurring it and want do. say working, We we always We on within everything we each want would fronts, we're I not hardware say clicking. working; what well. one across divisions divisions, all to want the the a trick on was things lot a this of going

do goal. going get $XX as to better could the even work our said hard So hardware, that quarters, done, there's can we've we more yet, that we million $XXX there. of to that's can earlier, as fast We're be million goal like hit

Gary Mobley

helpful. me. that’s Thanks That's guys. from it Okay,

Richard Soloway

Thanks Gary.

Operator

you. Thank

next question with Joseph Our Securities. comes from your line question. the proceed JMP Osha of Please with

Joseph Osha

quarter. my compliments the there, Hi on

Richard Soloway

you. Thank

Joseph Osha

I'm in wondering with of of interests this just party getting still I pushing Thank recurring for you well can you've feedback there hardware of I'm party? what third issue [indiscernible] this your third if It for could you versus with mix companies you're hardware. on interact but to with we out me dealers, very in-house own Obviously out. on even comment some couple parties integration that? doing price a if third you're example terms versus and got XX:XX products, really points wondering wonder you return see years type revenue your that when

Richard Soloway

our you to software integrated access in a have products, with we But products, try our that solutions the key they competitors they fact the seeing large integrate the our in attach industry, of and some getting, of Well, are jobs the other we we that on we that to we're like up those so make sell with our make, we want to key we products, existing that. diversified are very lot or work so but systems campus, to we so totally systems that run we're products systems. some are with locking the systems to and platform stuff integrated where our access network use those. with There competitors want the into building

Joseph Osha

you which will you, scale time over shifting over - you that perhaps you've third to that think this have do of which point a the - make? you leverage decide is whether so or the at idea the do which mix to more out the to very sales what add is even parties, do to I nice is term see to there you phrase, DR operating obviously longer or be got great, come mean your the to borrow the And

Richard Soloway

our increase drive vertically into product sales forward the We're with going constantly to line. with and others integration also our to total both integrated

shift. We can a bubbling. the products. need do We get all We have $XXX capacity people per these all in we lot a integrated to can make million of

going to up factory. building keep So we’re the

$XX these that’s $XXX hit where in magic be from we and to million As want that’s numbers starts a profitability of now. goal, tremendously jumping couple really our of we million, years

Joseph Osha

you very thank Okay, much.

Richard Soloway

Joe. Thanks,

Operator

you. Thank

from comes Partners P. your Please Enderlin question. of the Mars question with next Our with proceed line [ph].

Unidentified Analyst

morning. you. Thank Good

Richard Soloway

Good morning.

Unidentified Analyst

have a few questions. longer I term

realistic any that thereby you there is of plant First, can way, as products the practical and help of some of up that way your fill course international address well? potential

Richard Soloway

of which to more which into became these we countries the lot America because lines different but and different the just needs have didn't all South all of growth And it sell want all product plenty of these different areas we use there's A our international, specs. is to and engineering business. lines have product confuses complicated overseas, it has different because plenty

Modernizing and new high be focusing developing more engineering, just a will with lot systems big We So is universal market volume versus market. direction. on coming market we more we for items our decided engineering the We we are profitability make other don't just products big that’s sucker expenses keep a hence a but try money the lot access North spend that items did which into on for is South alarm are our of overseas, really and a our efforts. building sap a commercial time control to Schools kind seeing in so of like things, these of line. a of couple into for spend can you market. we we go big American and a high,

Unidentified Analyst

debt fair Okay, you now dividend? your well so, enough flow and a would cash with generating consider increasing free and

Richard Soloway

in one that that’s keep we'll the of on our mind. considerations. It’s so list, Yes,

Unidentified Analyst

done can then great and is a this job you’ve planning of tell Dick, company? a lot about potential to what coming fruition, the to Okay you and lastly, us succession

Richard Soloway

all group run this together Well, team. the now our it we executive and have Kevin, can run to we're Michael, going point we guys here with and we And know doing. get place, to very a all is over these a but all where George, what good we’re take

Vice the as of of and discussion finance product not far in and aspects the Hevia just as the engineering operations Jorge We our management we're is all but so going Kevin involved where with product President. many the directions, we're in going. he involved meeting marketing. Carrieri, business, have is business, Michael in and where in is is also the

the business and operate we the for these how years making it. hit been that's paradigm we’ve a of together has and a business out of that it doing So lot really now we're shifts of lot hay

I it's because nice that with guys us kind going industry come With to and our and very mentioned the that over ideas, more suit of and great these technology we've quarter in this tech years all having the just is developed recurring it up and right. And here that meetings was the products of we direction are revenue great that. and the discussions all representation

Unidentified Analyst

very Thanks That's helpful. much. very

Operator

Thank you.

question of Please Horwitz the comes Abba with line next proceed your with OS Our Capital. question. from

Abba Horwitz

on congratulations wonderful guys a Hi, quarter.

Richard Soloway

Thank you.

Abba Horwitz

and on through position money in debt that enough really flow do have the in no You two of would there's from interested company do assume is your the you'll acquisition. you're I quite next pay And I today balance say an in building actually you'll guys bit because is a that you because generate, are unique to today have over also what not acquisitions itself years a and understands to cash don't cash the down the sheet. excess

real So I'm you do what a that cash have? you're build cash to have propose and that you wondering, to going serious with do build

Richard Soloway

we generating off We number where debt cash how phase. it is a accelerating. class with years started of and that been the That's building. problem paid a cash of it’s a this lot high for We've the originally

do dividends, are have high is said it? our that are how caller problem so giving and start to class asking people going goal. of facing we this we're of what you list you you a so to lot to The a cash it, now, that’s with solve there's once you So, where previous that's

Abba Horwitz

limit buy free on cash is what number here there there do a is that? in the level something based yield - have limit on flow purchase you'll a where and it cash a you or like price, stock Okay, flow free or

Richard Soloway

back stock Abba? we When buy

Abba Horwitz

know have it you price, Yes, is there, XX? certain back do closer more you or $XX at stock to buy would you a is

Richard Soloway

and and we out keep and it our do strict it's eye we - do worked Very we and opportunistically we say so us. guidelines well on always for it

been today, our average this at that. that doing versus we've job over we’ve the done the look stock a price you price time at If really, good really

be out always buyer's [indiscernible] ways being the if cash, network, we criteria spent We're and going got I possible to hit accretive utilize to to be rule dealer a associated cash, at with it. but want, of we'd a perfect. multiple, that’s of to that manufacturing have it the has earn criteria for the we One we've day it pay it's to Republic be Dominican able our to one, an either, wouldn’t to got be use saying like has the to acquisition got the five out

So if acquisitions we don't five the but we on table to, here. could and to could hit too, points, on have be those need plenty

Abba Horwitz

how to model they and Okay, the can products the some out get coming - that do better more works? we wonderful. what guess on the be I understand color When will

Richard Soloway

Are the you product? talking about new

Abba Horwitz

Yes.

Richard Soloway

April. releases be that’s at showing there will there, press so be and show unveiled the ISC and in will there about Well, there

Abba Horwitz

much. wonderful Thank Okay, you guys. very

Richard Soloway

Any time.

Operator

you. Thank

the end turn We I have to reached over Mr. of session. call question-and-answer our back would like to the

closing for Soloway remarks. any

Richard Soloway

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

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

Operator

This teleconference. Thank today’s you. concludes

may disconnect participation a your have lines this you time. your at and You wonderful day. Thank for

Napco Security (NSSC) 4 Feb 192019 Q2 Earnings call transcript