Napco Security (NSSC) 6 May 242024 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the NAPCO Securities Technologies FQ3 2024 Earnings Conference Call. [Operator's Instructions]This call is being recorded on May 6, 2024. I would now like to turn the conference over to Francis J. Okoniewski, VP, Investor Relations. Please go ahead.

good and Joan, you, morning, everyone. Thank is Relations for name Francis Okoniewski, Investor of President Vice NAPCO I'm My Security Technologies. Thank fiscal today's results you conference call to joining all discuss for third our XXXX. quarter for financial of all earnings our discussing to release, now, had the you By press results. opportunity quarterly our review have should release If website, www.napcosecurity.com. the in Investor is a not, of Relations the available copy section our of

Officer of and Dick NAPCO today Financial On are Soloway, President, our Chief and Buchel, the Operating Technologies; Security CEO Chief and Officer. Kevin call Chairman

Before relating let ability the control products of take growth products, our for statements without include, revenue moment forward-looking company's performance. judgment, current projections services, as a benefits statement revenue. based management's current run annual forward-looking limitation, such on customers and expectations, market beliefs, are product we to These our costs drivers contains and of trends recurring recurring recurring me rate business, forward-looking begin, based to of anticipated school monthly to future opportunities, expenses estimates, our the forecasts statements and security potential and expected as read this that revenue to statements performance the on presentation dealers, and

or unpredictable differ those described in those that cause SEC Form our uncertainties assumptions our actual or from differ Other factors proving cause statements risks to, underlying factors to risk forward-looking in materially including include, limited to filings, annual statements. on incorrect, results involve report such These subsequently Forward-looking and but unknown contained forward-looking factors the actual be could XX-K materially results statements. may the to from in are not

performance reasonable, future of the that results, believe we are reflected activity, in cannot guarantee statements achievements. the we level Although forward-looking or expectations

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We call. Good today your fiscal Fran. you, participation conference QX XXXX appreciate to our as and performance. Thank morning, review everyone, our we welcome

quarter sales record We marking record to for of this consecutive XXth our thrilled quarter, announce sales. million achieving of $XX.X are

run Our $XX reaching based subscription with recurring recurring million April on revenue service XXXX revenues. continues prospective an robust growth exhibit rate to -- annual

XX% cash balance June with sheet recorded balances Our reaching strong $XX.X remains the million, over increase a XXXX. XX, level on

debt. have no We

those Our control our on strategic At revenue These focus capitalize with equity aligning are reflecting and and on management interests shareholders, remains fire to and costs. wireless critical systems our industry our products. prioritizing team and dedication continues enterprise solutions, business driving to trends, NAPCO, while to effectively growth, our to shareholders. profitability our strategy alarms, locking services, us key metrics and recurring committed of including our returns intrusion managing executing Foodsecurity architectural access

our to Officer like over to Operating quarter our who Financial I'd will President, an third and newly overview Officer, results. hand the Kevin of Chief call provide appointed fiscal Buchel, Chief Now

return deeper our Kevin? Following delve market Kevin's remarks, into to will I strategies and outlook.

for $XX.X from its $XX.X months QX service based for to gross XX% locking months increased recurring based in gross ended year last dollars revenues, million. radio as increased QX. which March X-month increase increase with sales for typically another a Equipment $XX.X gross X% equipment gross in compares intrusion $XXX,XXX compared mix income sales months provision was for by was of that that income gross as $X.X $X.X year. increased revenues March to the back both the sales $XX.X compares growth, $X.X a income. ago. provision a months million tax and taxable sales. The $XX.X income products, equipment by XXXX sales to of the X increased period fire to to $XXX,XXX revenue expenses X% components to in as increased additional XXXX, advertising the and last to control as XX% share, for million months increased charges monthly increased shift of months previously revenues for net or to with of was XXX% effective for than period XX% gross compares increased to sales X And X $XX.X million million year. Thank $XX.X months increased in net or we for provision for months margin XX, approximately represents the per to $XX.X million net margin expenses. proportion of to $XX.X for to XXXX our And to same million increasing with X to of million year gross XXXX, expenses margin systems, the a the increases product $XX $X.XX and our equipment XXXX, of X million share ended XXXX, Net the the revenues to increased with the $XX.X was to compared a increased Equipment million and and and revenue Operating quarter record to the to XX% That the to or X% QX XX% of ago, general increased to million X $XX.X million compared last March And gross XXXX, sales $X.X being $X.X $X.X of sales. $XX.X to last compared X same for million million in compared or as same an XX% taxes to The crisis. quarterly SG&A ended being months for costs or a million, million for EBITDA to XX%. sequentially gross that year. were that increased that for period by X for $X.X Research to million XX% revenue X to as was revenues year. sales $XX.X to of and systems. increase per to increase sales record and ago. compares XX, the year. the for million the X% XX% of diluted Adjusted XX% radios. than XX, by increases million for gross million as the $X.X $XX.X the to and well as year. period year. a was XXXX, still XX, increased million increased as for months diluted or March million, X-month $X.XX $XX.X compares months by a X or with record in margin compared XXXX, X margin March and margin interest months ago. X a $XX.X development months, year period for compared increased as The million by compared XX% gross the sales share, $X.XX equates and million to March which to internal to than that ended salon to XXXX, as that to The net well X months a a lower compares radios, XX% $XX.X last higher February. the as period XX% of XX, of associated development factor both to of the XXXX, or to last for The Dick, March compared compared and increased last for the of strong XX%. proportionately to year The income XXX% same and gross for for the with Interest accounting $X.XX the to margin profit that which have $X.X offset per enhancing and mentioned year. same service million $X.X legal with March XX, year sales recurring XX% than increase and dollars the both the chain year. X increase increase year. for EBITDA rate increased million million year. million ended compared effective $XX.X of with the represents Gross for equipment increased XX% the income of service and year. gross March adjusted a other quarter Mark's those partially X% XXXX, compares generate X $XXX.X the $X.X The good percentage our $XXX.X margin that expenses $XX.X quarter period last profit in to recurring XX%, XX% in to X last year due for record net from rate or in year. XX%, last Of the certain for XXXX, X period service costs and for last products. same everybody. a our to share have ago in to Gross share or $XXX,XXX year with X of for to million X margin XX% ended sales margins of the expenses. months, aforementioned XXX% Adjusted sales or due increase Recurring Gross same per monthly increased the same XX% as million a profit the XX, period access months X compares that the increased in $XX.X period the increases primarily XX% quarterly on revenues the Operating million $XX.X XX, a XX, per diluted a and margin the $X.XX sales to XXX% compares same $XX.X increases ended million income for now equipment as a reported deposits. XX, months period Gross control higher last of service the million the in XX, gross of XX%. decreases $X.X and increases the margin as costs ended due $X.XX for with X the XX% we gross service revenue X% Research as months period the share, as year. sales million and QX for it for profit last by rate compensation for X recurring million in other to months to XX, primarily the compared X generated for March The to locking and $XXX,XXX and XX% products a million XX% and X of of revenue products sales record XXXX, ended lock of Selling, relating X year. months XX% and million the were tax million larger that quarter as the an for an tax March increased to same XXX% rate were revenues for long or to as such recurring diluted in and tax a XX% run both XX% profit to the $XX.X a fees the offset locking for compared XX% is And internal and both effective ended for over higher or margin diluted period $XX.X sales well interest the January global equates a those of last Gross in And expenses primarily decrease legal with with resulted XX% the quarter or for $X.XX in March an and diluted of quarter $XX.X primarily of of in XX% brand last $XX.X last X million effects recurring last million door The for a Starling per the by revenues period X% for a and increased and XX%, $XX.X ended brand a this to by increased gross for compared income recurring year were due $XX.X XX, well April an recurring greater months revenues, last $X March year to effective X intrusion compares general diluted or million the annual of is for StarLink record administrative for million year. to profit for primarily as $X.X of to prospective costs increased margin enhancing million and door to the administrative StarLink taxes months on an Net note to with or certificates result $XX.X rate and months million for quarter Selling, SG&A as months million million XXXX, you, same the XX% per that products. X diluted $XX.X million gross ended X a a other These the a and was margin to with compared quarterly Gross the same the as for $XX and X% XX% for increased million of year. a X as same EBITDA there in compares decrease when service last compares net to to increases ago. share X-month of EBITDA the months as Net primarily due feeling by in the the XX% and same for of increased revenues the million million which monthly period ended for in staff. per for as compared last $X.XX increased SG&A the for gross for supply margin income for year to profit additional income favorable $XX.X of million million margin year, for a XX%, revenue XX% gross the share, with net adjusted and morning, of $XX $X.X and from to increase $XX.X XX% profit XX%, to the XX% a in same and to resulted continued margin with to sales with as the to net increases of period for the that the same profit last of due

on the sheet. balance moving Now to

June months to period current working capital current and as XX, activities The X.X:X other XXXX, cash XXXX, March XXXX, ratio, Current $XX.X at March XXXX, XXXX. by XX, operating XX, at X.X:X for and quarter year and and and investments March was less now compared as to for Dick. at defined of $XX.X And company year. June March of XX, for the million. million XX, million that defined XX, $XXX,XXX a last million liabilities, ended for marketable assets and assets that XX, cash XXXX, like XXXX. that's of $XX.X the on equivalents, March million return compared $XX that with $XXX.X of by had CapEx The same million remarks, $X.X debt $XXX.X June as current I formal company as was working and compared liabilities, to the period. in back XXXX. divided And XX, That As was to would current the compared as my Cash to securities, the X That call provided had prior XX% and no increase. concludes million capital, the

enabled fueled increasing Kevin, is XXXX Were its quarter XX% growth our million. driven. our now It's is record-breaking going record $XX.X from growing such by growth, results with thank and of QX adjusted total QX, X% all QX, worth well revenue exceptionally million revenues XX% and organically of net breakers. Equipment year level. also over you. last in fiscal of revenue to representing the by $XX.X on QX with Radio margins X% and our all achieving year fiscal noting recurring and last income Recurring sales approximately increasing hardware A by the XX% over QX EBITDA innovations. increasing strong XX% by for XX% revenues for quarterly QX QX, gross company and improved, sales over improved year. continued

for still sign. sales were the last X the sunset year, sales the such below good QX last While was XG upon a radio increase is when over the quarters Verizon us,

sales key better We to and be to strong expect now margin at continue of continue get for recurring radio our recurring revenues sales to Gross contributor continue revenues. a growth profitable the to XX%. lead highly to our hardware to

start, revenue we and our very generated of it. That's an are gross XX% proud margin XX%. a of amazing So of

compared run of on are increase million revenue recurring in very which revenues increased based annual million the We annual XXXX based pleased XXXX to January rate revenues. $XX to also $XX.X run recurring with April an recurring on the rate,

schools QX. as hardware commercial lines health to again and continue once care Our security, see retail to and last prevention growing approximately residential XX% dwellings, locking hardware QX. over multifamily sales represented Lock growth applications. classroom in well in and XX% Alarm loss XX% approximately to sales of year as compared Marks and and compared locking

Adjusted as of on EBITDA record are of EBITDA our Net XX% to Our net on June approximately $XXX to achieving focused at $XX.X margin or XX% fiscal to income $XXX equipment balance other get also cash $XX.X besides our targeted breaker represents an securities We margin sales. compared recurring continues reached continue as XXXX. and we million these million million, with EBITDA target and of believe $XX.X of sheet service remain our on of XXXX record end about cash adjusted of and QX investments a increasing adjusted revenue penetrating QX XX, XX% We stronger million, further level the well a each being sales of way the markets. to million our equivalents, XX%. reaches million: represents to marketable $XX.X

million. and types ending are buildings by no We debt. that schools, strong, well X There of months XXXX, lines. the as hospitals, from restaurants activities operating the millions residences provided to for was copper coffee all net offices, as XX, cash have also upgrades such shops, phone March amounting legacy of commercial $XX as require still

which Our the radios feature love. our of have of sets, StarLink really widest with line and both dealers rich AT&T range coverage Verizon

levels have before. we constraints the quarters have we invigorate stated, even supply new than equipment of the have previously and to abated, developed, months margins and in that higher association we with time our will any chain sources coming to distribution the begin combined sales believe and As

issuing stated Republic quarterly and of our XX, more expands this absorption shareholders indicated overhead have on a our margins. XXXX, be the Dominican release, morning's dividend higher sales, the June we paid company to As And XXXX. previously, the on X, $X.XX will occurs share hardware gross this to of per be in the as earnings factory, record in June

is this our this to value to way of proud the growth tremendous years distribute as are created the program profitable investors. team NAPCO shareholder us such for another over has that We

in alike. entrance. key the attended show Las made by in and and professionals. about These products. position shown positioned left significant dealers installers event West and and we recent sales and ISC Now our tech Vegas, competitors over The prominently security NAPCO team last and some distributors, comments XX,XXX impact attracted which positive the with competitive a management NAPCO's security conference that the dealers, are show new integrators a space. security was on booth trade leadership domestic outlook buy with integrators at our attended designed the month

impression for trajectory. monthly levels fire transition vanishing the X detection all to NAPCO's and industry's steady alarm in a ULXXX-listed dual AT&T year, profitability. alarm inventory. new and system continues millions pot the last both ongoing interest triple dealer received ULXXX-listed have point, by panels, price models, MAX network XXXX, revenue growth cameras into brand record well traditional driven from late now capabilities RMR fire In I'd at us enhancing access credentials MAX in with joining X wallet, can generation commercial several Our NAPCO's reinforced weather the This next addresses work believe of Customer signal products, in fiscal away competitively for emergency Also, traction and and continue number smartphones expanded X, Mark NAPCO and readers culture, we product fiscal successful optimal exit of NAPCO's favorable have. months end-to-end the condition as extending hardware the attention, equipment leads excitement peaked recurring solution of gain Fire growth launched development, leveraging last for use the the features and goals future Prima all-in-one the was and lockdown series NAPCO got innovative for and we exciting and we for strong utility a identity USA a sales technology, their times. to NFC control this solution, XXXX base. the We to more X one beyond. by part their this beyond response commercial highly future Prima U.S. secure brand-new to include communicators. support producing thank launch Verizon operating or like the including in mobile allows strengths, RMR generated strong the dealers center headquartered the distinctive true everyone line. popular of Fire MAX boats panic protected sales solution StarLink i.e., lines of potential. a built-in our The toward stored our of XG users, our featuring its with most streamline that we SIM locks

concluded, remarks the and like Our for now formal please are Q&A session. we'd open call to Operator, proceed. the

Davidson. question Matt first line Instructions]Your the from comes [Operator's from D.A. of Summerville

Maybe we Nice they've kind of talk can quarters. for talk doubt year-on-year, hardware maybe last improvement it. no if Can been about about about margins. gross flattish you first, the But X overhead longer-term projection catalysts as are your then the margin what get to prominently outside I follow-up. ahead we marching more kind of towards And look just a that of absorption there? have

to Well, because to low the Matt. led margins want it I low the past, big our overhead absorption don't is factor. going it XXs. has a Okay, to diminish in from to mid-XXs high XXs,

locking the hardware of a sales, now that numbers, the to the on the recurring better. locking the radio numbers the products lead the best products, good which XX% intrusion like that, board. radio products, hardware the margins than better does the put the all, on basis, we brings granted of absent products, them strong But some is but when significant of it's hardware pure So now -- which of revenue,

are expect the locking. hotel to mentioned on to school we buildings strong so locking Dick stronger. that And to remarks, reasons going the upgrades projects there's airport locking products continue in contributing going security why things a is are and in of on that renovations, get infrastructure some his lot of and

well, both both operating same time. them X all really cylinders, hitting on We they're the at of companies locking have

locking, even should Those has And big which the main good, more help a and so margins overhead get locking, the reasons, stronger mix, further. been It's are we don't even diminish probably to factor. expect that it absorption. the but

on feedback about excitement there Got some initial of you prior product we color, you've recurring had the the more if is when revenue. faring the And starting I product you quantitatively feeling in of maybe for expect drive you businesses Kevin. little to how Prima's market maybe the even -- to if initial gen really maybe it. qualitatively launch about the then about Fire outside maybe a now the No, quarters, other MaxX? couple of bit how of of you're talk and know been this helpful some similarly, see or or around versus some you launch? uptake that can talk last that sort Can just don't that's start fire uptake can talk

The functionality MAX dual when the commercial marshals a in of the want a was fire is installed communications. and alarm fire product buildings building,

area, emergency doesn't there's the this Internet way we But transmit AT&T radios will whichever will have we'll be AT&T the UL any basement the because for in way second and systems the or the very, in could also connect run for a is cases, and very the a dealers to system the only these in deal require radio. a get into X because the select the The fire by. the lot MAX new central that wire the or station dual and wire one internet alarm So Verizon Once link. run check harder the Verizon been of to have is working that's a Internet different stronger, the where no and it's is to close signal signal wire. out communications there to and uses

for install we have -- X use profitable to for want they it's recurring very we only faster any models, one to that it. other radio all that's And have revenue unique the and So be MAX don't a they and very, use a to and really the applications, dealers going that. It's dealers. the special. great model. have will could to And be

the that, leader XX% that will expect we So at margins. us making continue

the dealers product line. can You our see like

residentially on it's going our the commercial. them. high of and as to comes right keep product, of residential a So product can a more job, of product actually quickly. It in for small goes is commercially, install mass. salesman product for doesn't need sell the themselves. or alarm it to possible customer a It's starting is customization to He that that alarm can it, both a more are contribute. This sells and the crew, we adoption commercially with installation. product line it alarm very as and get system a recurring more the product. put user unique When from is expect so our and revenue the to different start more that and revenue for to and us more it try recurring because getting he margins sell It's end Prima that products and and away in from type typical we

conversion the lot we share where alarm using a this there are and picking mass it's we're saw more that and companies process type of interest. and thousands of are thousands of up system, So

you right front. was show, the it You were up at saw

But selves. converting amongst it dealers the for You many while. now during were to it, day. takes at that carpet. spinout saw are this a looking alarm system even that this the talk over them couldn't -- There time there is for many little standing I it. to looks see get that and times very process. ongoing used And it it people start to the to very, on good so

Needham from comes question & of from James next the Your Ricchiuti Company. line

distributor I to bit wonder quarters? scale next a how a follow-up. quarter business you a new about the couple this how over I would and talk you of saw have in of And much the from maybe the contribution you're us if seeing little

ADI a ADI, are volume, more. in doing security distributor potential the largest well products the of have There security nobody new has distributor to be So is has than the with that more that sales them. the are more lot us. industry. companies doing They

with only deal exclusively growth. seen We're important preceding made is large few So They've with that a dealers them. nice several better they've quarters, introductions. the This very a made potential And the introductions to point. than is quarter big. them one. each We've dealing

may have trying them a ADI. And been big A Securitas. relationship with. to is the we've number to of largest name one -- there maybe dealer be out So -- thanks second

have now We Securitas. with a relationship

the but does not it up a with us splash, intros It's to we beginning, a situation sales a where making And is help So did not big just all slowly. keep dealers make to pure to the part. business branches systematically, going only XXX key ADI numbers, up. loaded we expect

keep expect We growing quarter it to each as progresses.

some in, radio as Is this in there, is. more with of talk see ones? potential very type large instance, just fire us the some you're historically to some to that out for of new of you guys about on this can that some business areas this new the the of business where seeing inroads you strong the are you sense in business. dealers, these Maybe potentially Kevin,

Yes.

to interested So is that only the large of one and We -- and one accounts they're over We we've not is picked last made gentleman's head talked picking with before took more sell actually him all deals mission national we've up the large these radios. fire the these the top more this our guys quarters. several of biggest about because radios that want us fire of and of some in. up we're the dealers And sales more relationships. to large nurture

line have of to of a all products. products. them We whole sell We want our

another expectation assist expand starting going it's and this radios, other to actually So it's things, with to fire salesperson out to added the we've guy.

them and these So managed that a mission expand have nurture job whose now and and relationship there's very now large X of with. whose we is dealers

additional just ongoing And assuming organizational to you point role. question management were do announced your the to as week. up you're the changes add at dual wanted fact follow Kevin, need some with is, Kevin, senior guess resources roles I and President, And I that with now foresee the that the CFO, to last CEO

bench keep I additional looking and XX and is and grow company. lot to that the company a for management years senior XX business additional that we years for the been business. And going our as Kevin team the for we together that, been our help have What's I said, I've a we have us with with strength. bench to we -- a of have with make people in great side. know people happen working

We been at -- XX has like company. People like years working the have NAPCO. the with

That little going than very promote right the the person We career. rather to us outside. of with to from We get like within have person. type stays his We for turnover.

culture, Just like way. organic when company. the within players most other the efficient it's means. we efficient grow our the And business, They in we people way. like to they most the we organization. grow up through the the know It's know our bring find We business

on in of nice meetings the week. So bendstrength divisions the at that managers single products, least X know of all a team. a We different every we do basis have regular work together all

a So compared very of we better you now, tell in moving way profitability. numbers competition doing can growth along have ratio to very, strong the structure The for growth. much and are the we're

right we've things. the doing got of combination So think I

congratulations to appointment quarter. the team on and the Got it. Kevin, Well, the on

question next Jaeson Capital Street Your comes from line from Lake of the Schmidt Markets.

relatedly, Kevin, completely you you then some distributors? that's at And impacted could previous do high-cost just of issue that that inventory metrics through us share I if now? curious sort the think with of guess the sell-through worked quarters,

I'll first. start part the second with

twofold, at high at sold. the distributors. So inventory cost And distributors We at the it's some. the because also, we it's it's distributors, the mostly have

inventory. help we probably of excess sunset. Then We have mostly in X few situation inventory. inventory, the probably end of fiscal work consider belief. solved, them will talked the We'll by inventory trying a excess have built XXX%, what year of not dollars much radio they radio soft how left the lot our of through have too are distributors is you hundred Remember, some where we but done it, the about a and completely there it with radio be anticipation one other, thousand to keep the

lot on some and The extra. We're came especially of working fire that, had radios. radio demand said is So went. through too. We a big,

be that X nonissue expect I'm we going to over next, months. a the say, So

we inventory, haven't talked it. lot Our a about

Our down. inventory coming has been

but out $XX our cash flow from radios is one inventory, it to million from great, is areas, but and wring will Our another still probably we want come different of them.

next We've in months. doing radios more lot a great. sell been to X the expect We

Demand We huge. even is more. expect to sell

accounts We we're -- by growing now all lead the which going big to of been to become we the that grew the by move nice. And a why to customers recurring radio have of of part was inventory. lot these It's XX%, think XX%. that's going have that's continuation

a margins, XX%. don't a really it lot disclose it that. sequential Now up that's that's to fire of it and increase and grew a of share important. sell-through great intrusion that very lot the on we and why XX%, On showed I basis, is But fire you by the And with XX%. can an of stats stats, has sell-through was

we head quarter our Typically, So seems always me that XX% having And our things, other sequential quarter. that will well that as has into the best fourth to division radios. our bode sells the that, quarter, that's for been the a fourth best. among increase of historically, division

intrusion it's be lot that I one a not only but So which great important of if we're we're seeing doing, would increase the sequential the seeing we've that a and it's how now best, locking, continues, talked in on XX%. pattern like the that the side about,

Vitanza question next Your from comes Lance TD the of line Cohen. from

my optionality. I there quarter. lot operational flexibility sort Congratulations bit maybe some your that have, Most the anathema you sort I'm of balance a transaction? sort but little asset guess perhaps provides to But clean it questions balance so this looks add on you on the for giving sheet, nice that underutilized not like million of question strategy Or the that. have investors for a a little credit leverage, maintaining strategic sheet $XX an the for answered, are of been of opportunities are is, much to forward? or of going is sure

that nice to possibilities to our We that's it wheelhouse. of acquisition are into of be our it our outside tucked line, that all product There which want use don't product a a volume an the to anything can of time. that have do dealers has

possibility. not of that. some It's a there is possibility situation, a front-burner So it but is

have because build continue We enough like cash. to cash we to

supporting opportunities the going dividends to also You as paid never been us. issue like. We know the like the what have to that back are be investors to

class going that addressing. are way we're basically an the So problem eye that's now. But we right it's

Your next B. the Riley. line question from from comes Sharma Raj of

growth the on also excellent on and side. continued recurring the Congratulations

up I that see dealers sequentially side, forward, for is the second equipment half the to the going sequentially, you picking alarms And in you're from we When alarms. see the access 'XX new understand, the and with pickup half? saying this X%. picked first It to and up or growth the the the FireMAX-X wanted in just XX% had sell-through question share of Dick, or is for great Kevin I the up hear year-on-year On intrusion was dealers. XX%. up down a from pick fiscal should

year we expectation, bode in well hope enter comp. with now. earlier, fiscal potentially things our stats in that increase year, difficult next and X an referred are for this is to Raj, in. QX QX I it the kick that we factors. combined should was to the much segment we're a could That fact more last intrusion is sell-through the as in comps start One, easier. Well, seeing The in

have should large from contributions the dealers. You

from MAX, XX. You should have contributions

are are the that that what this us sunset, should much are that all contributions it's You than like have the -- it's and margin. from they that It's they hero as to because level the PRIMA. been doing. things well. contributing, expect doing the better while not is the the unsung division same radio XX% to are These at those it's of been And phenomenal help in we going height were the giving radios bringing recurring

even doing So great. do going better. to It's it's

stable the that all all communicate central the a marshal alarm commercial business. legislative that has show, a territories is have And very because station, in what fire working. the It's the of working business been is around we fire radio make panels TeleCentral we've of system, United business. very States, lot saw buildings fire to as the that the makes also At that a couple lot systems business built alarm a fire about in. in commercial talking our so the for of activity interest a regularly we growing The A was their they're them around fire important. jobs, sure

a complete. alarm need cranes system. in And lots have That's legislated putting fantastic offerings the away construction, to new which the detector, we dealers business a to buildings detector, is you of the from systems the do the fire from economy, smoke going panel either new it's that building is of need in matter for and the have their they fantastic, what's have the are up oxide if alarm millions to have all or on U.S.A., a new we copper and working work. no carbon to there communications, over fire buildings So and and upgrade the have these business, an open,

they recurring of manufacturers, on. because that this But on the alarm products years, to get there's very in XXX hardware job all years we work dealers be that. don't are for other our Also, is they the it's to about recurring few new and and it's of exciting. ways term and Locksmith so So there and get accounts. have -- there other there do all for copper are to hardware know replacement locksmiths know revenue the guys a hardware goal same compared are from with all companies that XXX network long recurring we and working but as products. mode over UL approvals, recurring work, a and door they they And we the move want next operating specialty company that them the where revenue other we're just technology revenue revenue. lot centers get because been our a

consecutive important was going our future. had very for quarters it It's now growth. We've XX continue be that's of -- growth? So to the Kevin, going to

XX.

Right. XX. And prior to COVID, we had a...

came of Dominican it have our we're farm in-house. do out, own And you has to our we for manufacture. I they million that would it have $XXX which XXXX in that another business tuck-in. keep where in-house and which But is a grow all goal products. do to EBITDA love great We something other a organically. XX%. up, That another shift, numbers our don't as bring million very per integrated, know, would that our $XXX every like in nice be hit as if Republic, million, day, to capacity to to room it. manufacturing and $XXX put capacity. So engineering alongside the an that's it's We building said, We -- our it use regularly of have place acquisition this we And dealers streak do around, to very, be and would

So us. for the bright future is very

further over I to at this will turn back the [Operator's questions call no Instructions]There are time. Mr.

Soloway.

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

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

today's concludes this gentlemen, and Ladies conference.

You may disconnect. now