NAPCO Security Technologies, Inc.

Greetings and welcome to the NAPCO Security Technologies, Inc. Fiscal First Quarter 2021 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patrick McKillop, Director of Investor Relations. Thank you. You may begin.

Thanks, Daryl. Good morning. My name is Patrick McKillop. I'm the Director of Investor Relations here at NAPCO Security. Thank you all for joining us for today's conference call to discuss our financial results for our fiscal first quarter 2021. 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 section 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 statements. This presentation contains forward-looking statements that are based on current expectations, estimates, forecasts, and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to growth drivers of the company's business, such as school security products and recurring revenue services, potential market opportunities, benefits of our recurring revenue products to customers and dealers, our ability to control expenses and costs, and expected annual run rate for SAS recurring monthly revenue. Forward-looking statements involve risks and uncertainty that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, such risk factors as described in our SEC filings, including our annual report on Form 10-K. Other unknown or unpredictable factors or underlining assumptions subsequently proving to be incorrect could cause actual results to differ materials from those in forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in today's press release and this conference call is as of today's date unless otherwise stated. And we undertake no duty to update such information except as required under applicable law. I will turn the call over to Dick in a moment before I do. I just wanted to mention a few things on the IR front. We will be attending the Medium Growth Conference, which is taking place January 11th through the 15th of 2021. Also, we are planning for more virtual road shows throughout the remainder of the year. 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. The floor is yours.

Thanks, Patrick. Good morning, everyone, and welcome to our conference call. Thank you for joining us today to discuss our results. I am pleased to report that because of our efforts and strong business model, we have delivered significantly improved results compared to the fourth quarter of fiscal 2020. Despite the ongoing COVID-19 pandemic, first quarter reoccurring service revenue, gross margin, net income, and adjusted EBITDA all exceeded analysts' expectations. Our recurring revenues continue to grow at a rapid rate. Our recurring revenues increased 36% in Q1 and now have an annual run rate and many more. School Security Solutions, Wireless Fire and Intrusion Alarms, plus Enterprise Access Control Systems and Architectural Locking Products. The NAPCO management team continues to focus on the key metrics of growth, profits, and returns on equity and controlling costs, especially during these difficult times. These metrics are important to us as well as our shareholders. We continue to execute our business strategy and our interests are aligned with our shareholders as senior management at NAPCO currently owns 36% of the equity. Before I go into further detail, I'll now turn the call over to our CFO, Kevin Buchel. He will provide an overview of our fiscal first quarter results and then I'll be back with more on the strategies and outlook. Kevin?