Updated projection: Net Income in 2017 to exceed $500,000
RISHON LEZION, Israel, Nov. 30, 2017 (GLOBE NEWSWIRE) -- B.O.S. Better Online Solutions Ltd. (the "Company",
"BOS") (Nasdaq:BOSC), a leading Israeli provider of RFID and Mobile solutions and a global provider of Supply Chain solutions to
enterprises, today reported its financial results for the third quarter of the fiscal year 2017.
Revenues for the third quarter of 2017 grew by 15% to $7.2 million from $6.3 million in the comparable period
last year.
Net income for the third quarter of 2017 amounted to $132,000 compared to a net loss of $205,000 in the
comparable quarter last year.
Net income for the first nine months of 2017 amounted to $445,000 compared to net income of $141,000 in the
comparable period last year.
Yuval Viner, BOS' Co-CEO, stated: "We are pleased with the results of the first nine months of 2017, and
especially with the results of the third quarter of 2017. At the beginning of 2017 we provided an outlook of $500,000 net income
for the year 2017. We are now confident that the net income in 2017 will exceed $500,000."
Eyal Cohen, BOS' Co-CEO and CFO, stated: "Since 2010, we have continuously presented an improvement in our
annual results. Our financial position is also stronger, with $1.3 million EBITDA for the last twelve months and a net bank
debt of $1.1 million. We will announce our outlook for the year 2018 in the first quarter of 2018."
BOS will host a conference call on Thursday, November 30, 2017 at 11:00 a.m. EST - 6:00 p.m., Israel Time. A
question-and-answer session will follow management’s presentation. To access the conference call, please dial one of the following
numbers:
US: +1-888-281-1167, International: +972-3-9180644.
For those unable to listen to the live call, a script of the call will be available the next day after the call
on BOS’s website, at: http://www.boscorporate.com
About BOS
B.O.S. Better Online Solutions Ltd. (BOSC) is a leading Israeli provider of RFID and Mobile solutions and a
global provider of Supply Chain solutions to enterprises. BOS' RFID and Mobile division offers both turnkey integration services as
well as stand-alone products, including best-of-breed RFID and AIDC hardware and communications equipment, BOS middleware and
industry-specific software applications. The Company's Supply Chain division provides electronic components consolidation services
to the aerospace, defense, medical and telecommunications industries as well as to enterprise customers worldwide. For more
information, please visit: www.boscorporate.com.
For more information:
Eyal Cohen
Co-CEO and CFO
+972-542525925
Use of Non-GAAP Financial Information
BOS reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures. These
non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to
supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the
non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company is also providing this
information to assist investors in performing additional financial analysis that is consistent with financial models developed by
research analysts who follow the Company. The reconciliation set forth below is provided in accordance with Regulation G and
reconciles the non-GAAP financial measures with the most directly comparable GAAP financial measures.
Safe Harbor Regarding Forward-Looking Statements
The forward-looking statements contained herein reflect management's current views with respect to future events and financial
performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to
differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond
the control of BOS. These risk factors and uncertainties include, amongst others, the dependency of sales being generated
from one or few major customers, the uncertainty of BOS being able to maintain current gross profit margins, inability to keep up
or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and distribution
arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS, the effect
of exchange rate fluctuations, general worldwide economic conditions and continued availability of financing for working capital
purposes and to refinance outstanding indebtedness ; and additional risks and uncertainties detailed in BOS' periodic reports and
registration statements filed with the U.S. Securities and Exchange Commission. BOS undertakes no obligation to publicly update or
revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on
which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in
the forward-looking statements.
CONSOLIDATED
STATEMENTS OF OPERATIONS |
(U.S. dollars in thousands) |
|
|
|
Nine months ended
September 30, |
|
Three months ended
September 30, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
2016 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
21,007 |
|
|
$ |
20,650 |
|
|
$ |
7,227 |
|
|
$ |
6,275 |
|
Cost of revenues |
|
|
16,615 |
|
|
|
16,771 |
|
|
|
5,747 |
|
|
|
5,263 |
|
Gross profit |
|
|
4,392 |
|
|
|
3,879 |
|
|
|
1,480 |
|
|
|
1,012 |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
2,470 |
|
|
|
2,293 |
|
|
|
879 |
|
|
|
747 |
|
General and administrative |
|
|
1,242 |
|
|
|
1,192 |
|
|
|
397 |
|
|
|
383 |
|
Total operating costs and expenses |
|
|
3,712 |
|
|
|
3,485 |
|
|
|
1,276 |
|
|
|
1,130 |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
680 |
|
|
|
394 |
|
|
|
204 |
|
|
|
(118 |
) |
Financial expenses, net |
|
|
(228 |
) |
|
|
(246 |
) |
|
|
(65 |
) |
|
|
(80 |
) |
Income or (loss) before taxes on income |
|
|
452 |
|
|
|
148
|
|
|
|
139 |
|
|
|
(198 |
) |
Taxes on income |
|
|
7 |
|
|
|
7 |
|
|
|
|
7 |
|
|
|
7 |
|
Net income (loss) |
|
$ |
445 |
|
|
$ |
141
|
|
|
|
$ |
132 |
|
|
$ |
(205 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per share |
|
$ |
0.14 |
|
|
$ |
0.06 |
|
|
$ |
0.04 |
|
|
$ |
(0.08
|
) |
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computing basic and
diluted net income (loss) per share |
|
|
3,113 |
|
|
|
2,522 |
|
|
|
3,236 |
|
|
|
2,671 |
|
CONSOLIDATED BALANCE
SHEETS |
(U.S. dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
September 30,
2017 |
|
|
December 31,
2016 |
|
|
|
(Unaudited) |
|
|
(Audited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,662 |
|
$ |
1,286 |
Restricted bank deposits |
|
|
202 |
|
|
196 |
Trade receivables |
|
|
9,174 |
|
|
7,928 |
Other accounts receivable and prepaid expenses |
|
|
1,021 |
|
|
992 |
Inventories |
|
|
2,925 |
|
|
2,314 |
|
|
|
|
|
Total current assets |
|
|
14,984 |
|
|
12,716 |
|
|
|
|
|
LONG-TERM ASSETS |
|
|
216 |
|
|
43 |
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
|
573 |
|
|
514 |
|
|
|
|
|
OTHER INTANGIBLE ASSETS, NET |
|
|
152 |
|
|
195 |
|
|
|
|
|
GOODWILL |
|
|
4,676 |
|
|
4,676 |
|
|
|
|
|
Total assets |
|
$ |
20,601 |
|
$ |
18,144 |
CONSOLIDATED BALANCE
SHEETS |
(U.S. dollars in thousands)
|
|
|
|
September
30,
2017 |
|
December 31,
2016 |
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Current maturities of long term loans |
|
$ |
400 |
|
$ |
400 |
Trade payables |
|
|
6,048 |
|
|
4,601 |
Employees and payroll accruals |
|
|
586 |
|
|
677 |
Deferred revenues |
|
|
764 |
|
|
680 |
Accrued expenses and other liabilities |
|
|
338 |
|
|
259 |
|
|
|
|
|
Total current liabilities |
|
|
8,136 |
|
|
6,617 |
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
Long-term loans, net of current maturities |
|
|
2,553 |
|
|
2,734 |
Accrued severance pay |
|
|
206 |
|
|
194 |
Deferred gain |
|
|
- |
|
|
15 |
|
|
|
|
|
Total long-term liabilities |
|
|
2,759 |
|
|
2,943 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
9,706 |
|
|
8,584 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
|
$ |
20,601 |
|
$ |
18,144 |
RECONCILIATION OF
NON-GAAP FINANCIAL RESULTS |
(U.S. dollars in thousands) |
|
|
|
Nine months ended
September 30, |
|
Three months ended
September 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
2016 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) as reported |
|
$ |
445 |
|
$ |
141 |
|
$ |
132 |
|
$ |
(205 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
43 |
|
|
64 |
|
|
15 |
|
|
10 |
|
Stock based compensation |
|
|
45 |
|
|
102 |
|
|
13 |
|
|
34 |
|
Acquisition expenses |
|
|
- |
|
|
30 |
|
|
- |
|
|
- |
|
Total Adjustments |
|
|
88 |
|
|
196 |
|
|
28 |
|
|
44 |
|
Net Income (loss) on a Non-GAAP basis |
|
$ |
533 |
|
$ |
337 |
|
$ |
160 |
|
$ |
(161 |
) |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED
EBITDA |
(U.S. dollars in thousands) |
|
|
|
Nine months ended
September 30, |
|
Three months ended
September 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
2016 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
680 |
|
$ |
394 |
|
$ |
204 |
|
$ |
(118 |
) |
Add: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
43 |
|
|
64 |
|
|
15 |
|
|
10 |
|
Stock based compensation |
|
|
45 |
|
|
102 |
|
|
13 |
|
|
34 |
|
Depreciation |
|
|
139 |
|
|
138 |
|
|
49 |
|
|
45 |
|
Acquisition expenses |
|
|
- |
|
|
30 |
|
|
- |
|
|
- |
|
EBITDA |
|
$ |
907 |
|
$ |
728 |
|
|
281 |
|
|
(29 |
) |
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION |
(U.S. dollars in thousands) |
|
|
|
RFID and
Mobile
Solutions |
|
Supply
Chain
Solutions |
|
Intercompany |
|
Consolidated |
|
RFID and
Mobile
Solutions |
|
Supply
Chain
Solutions |
|
Intercompany |
|
Consolidated |
|
|
Nine months ended
September 30,
2017 |
|
Three months
ended September 30,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
9,607 |
|
$ |
11,504 |
|
$ |
(104 |
) |
|
$ |
21,007 |
|
$ |
3,378 |
|
$ |
3,865 |
|
$ |
(16 |
) |
|
$ |
7,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
2,368 |
|
$ |
2,024 |
|
$ |
- |
|
|
$ |
4,392 |
|
$ |
835 |
|
$ |
645 |
|
$ |
- |
|
|
$ |
1,480 |
|
|
RFID and
Mobile
Solutions |
|
Supply
Chain
Solutions |
|
Intercompany |
|
Consolidated |
|
RFID and
Mobile
Solutions |
|
Supply
Chain
Solutions |
|
Intercompany |
|
Consolidated |
|
|
Nine months ended
September 30,
2016 |
|
Three months
ended September 30,
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
8,818 |
|
$ |
11,882 |
|
$ |
(50 |
) |
|
$ |
20,650 |
|
$ |
2,784 |
|
$ |
3,514 |
|
$ |
(23 |
) |
|
$ |
6,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
2,016 |
|
$ |
1,863 |
|
$ |
- |
|
|
$ |
3,879 |
|
$ |
517 |
|
$ |
495 |
|
$ |
- |
|
|
$ |
1,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|