Company Overview - NAPCO is a leader in commercial & residential security products with over 10,000 dealers, integrators & distributors in the US[5] - The company has two dozen patents and proprietary software[5] - The company is shifting towards recurring revenue and school security[5] Financial Highlights - Fiscal Fourth Quarter 2018 sales reached a record of $27.3 million, a 6% increase[48] - Recurring revenue increased by 49%[48] - Recurring revenue annual run rate is $14.7 million as of July 2018[48, 67] - TTM Revenue of $91.7 million with zero debt[67] - EPS up from $0.17 to $0.20[48] Market Opportunity - The company addresses both commercial (80%) and residential (20%) markets[8] - The company provides solutions for school security, addressing a market of 100,000 K-12 schools and 10,000 campuses[41] Stock Information - Market Capitalization is $284.0 million[66] - Insider Ownership is 38%[66, 67]

Protecting America's Businesses, Homes, Schools NASDAQ:NSSC September 2019 Corporate Presentation 1 Forward Looking Statements | --- | --- | |---------------------------------------------------------------------|-------| | | | | This presentation may contain forward-looking statements that | | | involve numerous risks and uncertainties. Actual results, | | | performance or achievements could differ materially from those | | | anticipated in such forward-looking statements as a result of | | | certain factor ...

Company Overview - NAPCO is a leader in designing and manufacturing commercial & residential security products, selling through 10,000+ dealers, integrators & distributors in the US [5] - The company has two major growth drivers: recurring revenue and school security [5] - NAPCO is the only company with products in all three security verticals: Alarms & Connectivity, Locking, and Access Control [34] Financial Performance - FY 2020 sales reached $101.3 million [43] - FY 2020 recurring revenue increased by 38% [43] - Recurring Revenue Annual Run Rate is at $27.5 million [43] - FY 2020 RMR Gross Margin was 82% [43] - The company has a cash balance of $18.2 million and zero debt [43] - Adjusted EBITDA for FY 2020 was $14.7 million [43] Market and Growth Opportunities - The company estimates a commercial market of 5 million buildings [39] - The company estimates a residential market of 120 million homes [41] - School security is a major growth driver, with increased funding, for example, Florida $500 million and Wisconsin $100 million [18, 21]

Financial Performance - NAPCO achieved record quarterly sales of $50.3 million in FQ4 2024, representing a 13% year-over-year growth[8,60] - Recurring revenue in FQ4 2024 grew by 27% year-over-year to $20.4 million[8,60] - The annual run-rate for recurring revenue is $84 million[8] - Adjusted EBITDA for FQ4 2024 was $15.4 million, an 18% increase year-over-year[60] - FQ4 2024 net income reached a quarterly record of $13.5 million, a 28% increase year-over-year[60] - The company has a strong balance sheet with $97.7 million in cash, marketable securities, and other investments, and no debt[60,65] Market and Growth Drivers - The company estimates the residential security U S market size to grow from $5 billion in 2021 to $9 billion in 2026[16] - The company estimates the commercial security North America market size to grow from $83.5 billion in 2021 to $121.4 billion in 2026[12] - The company estimates the school security market size to grow with a CAGR of 11.3% from 1.5 billion in 2020 to 3.1 billion in 2027[13] Long-Term Goals - The company aims to achieve total revenue of over $300 million in the long term[64] - The company aims to achieve recurring revenue of approximately $150 million, representing around 50% of total revenue in the long term[64]

Core Viewpoint - Kuehn Law, PLLC is investigating potential breaches of fiduciary duties by officers and directors of Napco Security Technologies, Inc. related to misrepresentation of the company's growth and hardware division performance [1][2]. Group 1: Legal Investigation - Kuehn Law is looking into whether certain insiders at Napco Security misrepresented the company's expected growth and strength in its hardware division [2]. - The investigation is prompted by a federal securities lawsuit alleging that insiders caused the company to misrepresent its ability to meet fiscal 2026 growth projections [2]. Group 2: Shareholder Information - Shareholders who purchased NSSC shares prior to February 5, 2024, are encouraged to contact Kuehn Law for potential legal action [3]. - Kuehn Law covers all case costs and does not charge its investor clients, emphasizing the importance of shareholder participation in maintaining market integrity [4].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Napco Security Technologies, Inc. due to a class action complaint alleging breaches of fiduciary duties by the board of directors [1] Group 1: Company Performance and Misleading Statements - Napco Security Technologies made false and misleading statements regarding its growth projections based on customer demand for hardware products [2] - The company reported a reduction in sales for hardware products in its second quarter financial results on February 3, 2025, despite previous optimism [2] - The sales shortfall was attributed to reduced sales from two of the company's larger distributors, leading to a retraction of the long-term EBITDA margin target of 45% [2] Group 2: Legal Investigation and Shareholder Rights - The class action complaint has a Class Period from February 5, 2024, to February 3, 2025, during which the company's public statements were deemed materially misleading [2] - Long-term stockholders of Napco are encouraged to contact Bragar Eagel & Squire for more information regarding their rights and the ongoing investigation [3]

Core Allegations - Napco Security Technologies allegedly misled investors regarding its financial health and growth prospects, particularly in hardware sales forecasting and distribution network [2][5] - The lawsuit claims that investors paid inflated prices for shares due to these misrepresentations [2][5] Investigation and Legal Action - Hagens Berman is actively investigating the allegations against Napco, focusing on potential misleading statements about sales forecasting and distribution practices [3] - The lead plaintiff deadline for the federal securities class action lawsuit is June 24, 2025, which is crucial for investors who suffered significant losses [4] Financial Impact - Napco's Q2 fiscal 2025 results revealed a sharp decline in hardware sales, attributed to major distributors reducing inventory, leading to a stock price drop of approximately 26.62% on February 3, 2025 [5] - Following the disclosure of these issues, Napco retracted its long-term EBITDA margin target of 45%, indicating uncertainty about achieving it by fiscal 2026 [5]

Core Viewpoint - A class action lawsuit has been filed against Napco Security Technologies, Inc. for alleged violations of federal securities laws, particularly concerning misleading statements about growth projections and sales performance [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Napco made false and misleading statements regarding its confidence in growth projections based on customer demand for hardware products [2]. - Financial results announced on February 3, 2025, indicated a reduction in sales for hardware products, contradicting previous optimistic statements [2]. - The company attributed the sales shortfall to reduced sales from two of its larger distributors and subsequently retracted its long-term EBITDA margin target of 45%, stating uncertainty about its achievability [2]. Group 2: Shareholder Information - Shareholders who purchased securities during the class period from February 5, 2024, to February 3, 2025, are encouraged to contact the law firm for participation in the lawsuit [1][3]. Group 3: Law Firm Background - DJS Law Group specializes in securities class actions and corporate governance litigation, focusing on enhancing investor returns through advocacy [4]. - The firm represents large hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [4].

Core Viewpoint - A class action lawsuit has been initiated against Napco Security Technologies, Inc. for allegedly making false and misleading statements regarding its financial performance and growth projections, leading to investor losses during the specified class period [1][4]. Group 1: Lawsuit Details - The lawsuit pertains to violations of the Securities Exchange Act of 1934, specifically §§10(b) and 20(a), and Rule 10b-5 [1]. - Investors who purchased Napco's securities between February 5, 2024, and February 3, 2025, are encouraged to participate in the lawsuit before the deadline of June 24, 2025 [2]. - The class has not yet been certified, meaning potential participants are not currently represented by an attorney unless they take action [3]. Group 2: Company Performance and Misstatements - Napco expressed confidence in its growth based on customer demand for hardware products, but later reported a reduction in sales for these products [4]. - The company attributed the sales shortfall to decreased sales from two of its larger distributors and subsequently retracted its long-term EBITDA margin target of 45%, indicating uncertainty about its achievability [4]. - The misleading public statements made by Napco throughout the class period resulted in significant damages to investors once the truth was revealed [4].

Core Viewpoint - The Gross Law Firm is notifying shareholders of Napco Security Technologies, Inc. regarding a class action lawsuit due to alleged misleading statements about the company's growth and hardware sales performance [1][2]. Summary by Relevant Sections Allegations - The complaint alleges that Napco's management provided investors with optimistic projections about the company's growth and strength in its hardware division, claiming confidence in achieving fiscal 2026 growth targets based on expected demand for hardware products [1]. - On February 3, 2025, Napco reported a significant decline in hardware sales, attributing this to reduced sales from two major distributors, which led to a retraction of their long-term 45% EBITDA margin target [1]. Stock Performance - Following the announcement of disappointing financial results, Napco's stock price plummeted from $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, marking a decline of approximately 26.62% in just one day [1]. Class Action Details - Shareholders who purchased shares during the specified class period (February 5, 2024, to February 3, 2025) are encouraged to register for the class action, with a deadline for lead plaintiff applications set for June 24, 2025 [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle, with no cost or obligation to participate [2]. Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud, aiming to hold companies accountable for misleading statements that inflate stock prices [3].