NAPCO Security Technologies, Inc.

Welcome to the NAPCO Security Technologies Fiscal Q4 and Fiscal 2023 Earnings Call. Our host for today's call is Patrick McKillop, Vice President of Investor Relations. At this time, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session. I would now like to turn the call over to your host, Mr. McKillop. You may begin, sir.

Thank you. Good morning. My name is Patrick McKillop, Vice President of Investor Relations for NAPCO Security. Thank you all for joining us for today's conference call to discuss our financial results for our fiscal fourth quarter and fiscal year 2023. 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.napgosecurity.com. On the call today is Richard Soloway, President and CEO of NAPCO Security Technologies, and Kevin Buchel, Executive 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 our annual report on 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 the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. We 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 want to mention that we will be attending the Lakeview Capital Conference on September 17th in New York and are planning for some non-deal road shows in the near future. 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 fiscal fourth quarter record sales of 44.7 million, which was the 11th consecutive quarter of sales growth. Our fiscal year 2023 sales of 170 million were also a record. Recurring revenue continue to grow at a strong rate, and the annual run rate is now approximately $67 million based on July 2023 recurring revenues. Our balance sheet remains strong with our cash balances at approximately $67 million, and we have no debt. Also, we are pleased to report the company announced its quarterly dividend of 8 cents per share to be paid on September 22, 2023 to shareholders of record on September 1, 2023. This represents an increase of 28% from the previous quarterly dividend. We continue to focus on capitalizing on opportunities in our key end markets, which are mostly commercial such as office and apartment buildings, retail stores and restaurants, schools, hospitals, airports, and government buildings. Our product lines, such as wireless fire and intrusion alarms, school security solutions, enterprise access control, and architectural locking products are delivering growth to our sales. and we are working every day to continue this growth pattern. The key metrics that the management team here at NAPCO focuses on are growth, profits, and returns on equity and controlling costs. These metrics are important for us as well as our shareholders. We look forward to continuing our growth streak in fiscal, 2024, and beyond. Before I go into further detail, I will now turn the call over to our CFO, Kevin Bichelle. He will provide an overview of our fiscal fourth quarter and fiscal 2023 results, and then I'll be back with more on our strategies and outlook. Kevin?