Napco Security Technologies, Inc. (NASDAQ:NSSC) Q4 2019 Earnings Conference Call Transcript

Sep 03, 2019 • 11:00 am ET

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Napco Security Technologies, Inc. (NASDAQ:NSSC) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the NAPCO Security Technologies, Inc. Fiscal Fourth Quarter 2019 and Full-Year 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]

It is now my pleasure to introduce your host, Mr. Patrick McKillop, Director of Investor Relations. Thank you. You may begin.

Executive
Patrick McKillop

Thank you. Good morning, and thank you all for joining us for today's conference call to discuss our financial results for our fiscal fourth quarter 2019 and fiscal year 2019. By now, all of you should have had the opportunity to review the press release discussing the results. If you have not, a copy of the release is available in the Investor Relations sections of our website www.napcosecurity.com. On the call today is Richard Soloway, President and CEO of NAPCO Security Technologies; and Kevin Buchel, Senior Vice President and CFO.

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

During the call, we may also present certain Non-GAAP financial measures, such as adjusted EBITDA and certain ratios that are used with these measures. In the press release and on the financial tables issued earlier today, you'll find the definition of these non-GAAP financial measures, a reconciliation of these non-GAAP financial measures with the closest GAAP financial measure, as well as a discussion about why we think these non-GAAP financial measures are relevant to our results. These financial measures are included for the benefit of investors and should not be considered instead of GAAP measures.

I will turn the call over to Dick in a moment, but before I do, I just want to mention a few things on the IR front. In terms of upcoming investor outreach, we will be attending and hosting a one-on-one meeting at the Lake Street Big3 conference on September 12th in New York and also at the CL King Conference in New York on September 19th. Investor outreach is crucial especially for small cap companies such as NAPCO. And I would like to thank all of those folks that assist us in these conferences and marketing trips.

With that out of the way, let me turn the call over to Richard Soloway, President and CEO of NAPCO Security Technologies. Dick, the floor is yours.

Executive
Richard L. Soloway

Thank you, Patrick. Good morning, everyone, and welcome to our conference call. Thank you for joining us today to discuss our results. The fourth quarter and fiscal year 2019 marked another record revenue and profitability performance for NAPCO. Our SaaS recurring revenues continued to grow at a rapid rate. Our recurring revenues annual run rate is now $20.4 million as of June. Our focus on targeting the professional installations and mostly commercial end