RISHON LEZION, Israel, May 29, 2018 (GLOBE NEWSWIRE) -- B.O.S. Better Online Solutions Ltd. ("BOS" or the
"Company") (NASDAQ:BOSC), a leading Israeli integrator of RFID and Mobile solutions and a global provider of Supply Chain solutions
to enterprises, today reported its financial results for the fiscal 2018 first quarter, ended March 31, 2018.
In the quarter ended March 31, 2018, BOS reported revenues of $8.3 million, a 17% increase as compared to $7.1 million of
revenues in the comparable quarter in 2017. Net income for the first quarter of 2018 was $205,000, or $0.06 per basic and
diluted share, an increase of 39% as compared to a net income of $147,000, or $0.05 per basic and diluted share, in the first
quarter of 2017. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was $365,000 for the first quarter
of 2018, as compared to $315,000 for the first quarter of 2017. (See Reconciliation of Net Income to EBITDA in the supplemental
table included at the end of this release).
As of March 31, 2018, BOS reported working capital of $7.1 million, long term debt of $2.7 million, and shareholders’
equity of $10.4 million ($3.10 per basic and diluted share).
Yuval Viner, BOS’ Co-CEO stated, “Fiscal 2018 is off to a good start with strong organic revenue growth, increased international
sales outside of our core Israeli market and a healthy backlog in place. There is an expanding need for the solutions we
offer, and our primary end markets such as aerospace, defense and logistic centers are growing. Since January 2018
we’ve announced 5 new orders, and we remain focused on surpassing the expectations of our blue chip customer base, accessing new
project awards and continuing to win contracts from new customers.”
Eyal Cohen, BOS’ Co-CEO added, “We saw strong performance from both of our divisions in the first quarter. In particular, we
recorded a 15% revenue increase in our RFID & Mobile division, attributable to new customers and a 20% revenue improvement in
our Supply Chain Solutions division, related to new orders from existing customers. In addition to our leadership position in
Israel, the BOS brand continues to gain recognition in the international marketplace, particularly India, where we are capturing
market share. I am also pleased to announce on engagement with an investor relations firm, Institutional Marketing Services
("IMS"). IMS will collaborate with the BOS management team to achieve broader investor awareness and educate the investment
community on the Company’s key business developments and growth objectives.
Conference Call
BOS will host a conference call today, Tuesday, May 29, 2018 at 10 a.m. EDT - 5:00 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 integrator 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
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.
Investor Relations Contact:
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
(203) 972-9200
jnesbett@institutionalms.com
|
Company Contact:
Eyal Cohen, CO-CEO & CFO
B.O.S Better Online Solutions Ltd.
+972-542525925
|
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands
|
Three months ended
March 31, |
|
Year ended
December 31, |
|
2018 |
|
2017 |
|
2017 |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
|
Revenues |
$ |
8,291 |
|
|
$ |
7,064 |
|
|
$ |
28,932 |
|
Cost of revenues |
|
6,630 |
|
|
|
5,616 |
|
|
|
22,587 |
|
Gross profit |
|
1,661 |
|
|
|
1,448 |
|
|
|
6,345 |
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
Sales and marketing |
|
913 |
|
|
|
814 |
|
|
|
3,389 |
|
General and administrative |
|
461 |
|
|
|
396 |
|
|
|
1,870 |
|
Total operating costs and expenses |
|
1,374 |
|
|
|
1,210 |
|
|
|
5,259 |
|
|
|
|
|
|
|
Operating Income |
|
287 |
|
|
|
238 |
|
|
|
1,086 |
|
Financial expenses, net |
|
(85 |
) |
|
|
(91 |
) |
|
|
(297 |
) |
Income before taxes on income |
|
202 |
|
|
|
147 |
|
|
|
789 |
|
Taxes on income (tax benefit) |
|
(3 |
) |
|
|
- |
|
|
|
16 |
|
Net income |
|
205 |
|
|
|
147 |
|
|
|
773 |
|
|
|
|
|
|
|
Basic and diluted net income per share |
$ |
0.06 |
|
|
$ |
0.05 |
|
|
$ |
0.24 |
|
|
|
|
|
|
|
Weighted average number of shares used in computing
basic and diluted net income per share |
|
3,357 |
|
|
|
2,997 |
|
|
|
3,171 |
|
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
|
March
31, 2018
|
December 31,
2017 |
|
(Unaudited)
|
(Audited) |
ASSETS |
|
|
|
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ |
943 |
|
$ |
1,533 |
Restricted bank deposits |
|
206 |
|
|
247 |
Trade receivables |
|
10,058 |
|
|
9,804 |
Other accounts receivable and prepaid expenses |
|
1,056 |
|
|
898 |
Inventories |
|
2,957 |
|
|
3,240 |
|
|
|
|
|
Total current assets |
|
15,220 |
|
|
15,722 |
|
|
|
|
|
LONG-TERM ASSETS |
|
226 |
|
|
220 |
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
900 |
|
|
651 |
|
|
|
|
|
OTHER INTANGIBLE ASSETS, NET |
|
124 |
|
|
138 |
|
|
|
|
|
GOODWILL |
|
4,676 |
|
|
4,676 |
|
|
|
|
|
Total assets |
$ |
21,146
|
|
$ |
21,407 |
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
|
March
31, 2018 |
|
December 31,
2017 |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
Current maturities of long term loans |
$ |
498 |
|
$ |
505 |
Trade payables |
|
5,741 |
|
|
5,951 |
Employees and payroll accruals |
|
716 |
|
|
822 |
Deferred revenues |
|
873 |
|
|
798 |
Accrued expenses and other liabilities |
|
266 |
|
|
304 |
|
|
|
|
Total current liabilities |
|
8,094 |
|
|
8,380 |
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
Long-term loans, net of current maturities |
|
2,365 |
|
|
2,523 |
Accrued severance pay |
|
287 |
|
|
286 |
|
|
|
|
Total long-term liabilities |
|
2,652 |
|
|
2,809 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
10,400 |
|
|
10,218 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
$ |
21,146 |
|
$ |
21,407 |
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands)
|
Three months ended
March 31, |
|
Year ended December
31, |
|
2018 |
|
2017 |
|
2017 |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
Net Income as reported |
$ |
205 |
|
$ |
147
|
|
$ |
773 |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
Amortization of intangible assets |
|
14 |
|
|
14 |
|
|
57 |
Stock based compensation |
|
14 |
|
|
17 |
|
|
60 |
Total Adjustments |
$ |
28 |
|
$ |
31 |
|
$ |
117 |
Net Income on a Non-GAAP basis |
$ |
233 |
|
$ |
178
|
|
$ |
890 |
CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
|
|
Three months ended
March 31, |
|
Year ended December
31, |
|
|
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
Operating income |
|
$ |
287 |
|
$ |
238 |
|
$ |
1,086 |
Add: |
|
|
|
|
|
|
Amortization of intangible assets |
|
|
14 |
|
|
14 |
|
|
57 |
Stock based compensation |
|
|
14 |
|
|
17 |
|
|
60 |
Depreciation |
|
|
50 |
|
|
46 |
|
|
188 |
EBITDA |
|
$ |
365 |
|
$ |
315 |
|
$ |
1,391 |
|
|
|
|
|
|
|
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 |
|
|
Three months ended
March 31,
2018 |
|
Three months
ended March 31,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3,822 |
|
$ |
4,595 |
|
$ |
(126 |
) |
|
$ |
8,291 |
|
$ |
3,311 |
|
$ |
3,816 |
|
$ |
(63 |
) |
|
$ |
7,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
976 |
|
$ |
685 |
|
$ |
- |
|
|
$ |
1,661 |
|
$ |
784 |
|
$ |
664 |
|
$ |
- |
|
|
$ |
1,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RFID and Mobile
Solutions |
|
Supply
Chain Solutions |
|
Intercompany |
|
Consolidated |
|
|
year ended December
31,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
13,666 |
|
$ |
15,495 |
|
$ |
(229 |
) |
|
$ |
28,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
3,623 |
|
$ |
2,722 |
|
$ |
- |
|
|
$ |
6,345 |
|
|
|
|
|
|
|
|
|