NAPCO Security Technologies, Inc.

Greetings and welcome to the NAPCO Security Technologies Fiscal Third Quarter 2021 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A 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. Please note, this conference is being recorded. I will now turn the conference over to our host, Patrick McKillop, Director of Investment Relations. Thank you. You may begin.

Good morning. I'm Patrick McKillop, Director of Investor Relations for NAPCO Security Technologies. Thank you all for joining us for today's conference call to discuss our financial results for our fiscal third 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 Solway, President and CEO of NAPCO Security Technologies, and Ken Buchel, Senior Vice President and CFO. Before we begin, let me take a moment to read the forward-looking statement. 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, the 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 revenues. Forward-looking statements involve risks and uncertainties 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 described in our SEC filings, including in our annual report and Form 10-K. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that 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, but before I do, I just wanted to mention a few things on the IR Fund. On May 17th, we will be presenting and hosting one-on-one meetings at the Needham Conference virtually and look forward to a great conference. We are planning for more virtual road shows throughout the remainder of the year and look forward to when we can meet in person again. 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 Talloway, President and CEO of NAPCO Security Technologies. Dick, the floor is yours.

Thank you, Patrick. Good morning, everyone, and welcome to our conference call. Thank you for joining us today to discuss our results. We are very pleased to report our record Q3 sales results of $28.2 million and our record Q3 net income results of $4.4 million, both of which meet street consensus estimates. Our EPS and EBITDA figures also came in above street consensus estimates. Our recurring revenues continue to grow at an even higher rate than recent quarters, 43% in Q3, and now we have an annual run rate of $36.7 million based on March 2021 recurring revenues. Our focus on targeting the professional installation and mostly commercial end markets is driving this continuous growth. Our balance sheet remains strong with our cash position continuing to grow. We remain focused on capitalizing on key industry trends, which include wireless fire and intrusion alarms, full security solutions, plus enterprise access control systems and architectural locking products. The management team here at NAPCO continues to focus on the key metrics of growth, profits, and returns on equity and controlling costs. These metrics are important for 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 owns approximately 22% of the equity. Before I go into greater detail, I will now turn the call over to our CFO, Kevin Bichelle. He will provide an overview of our fiscal third quarter results, and then I'll be back with more of our strategies and outlook. Kevin?