RISHON LEZION, Israel, Aug. 20, 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 second quarter and six months ended June 30,
2018.
BOS reported revenues of $7.6 million for the second quarter ended June 30, 2018, a 12% increase as compared to $6.7 million in
the comparable quarter in 2017. Net income for the second quarter of 2018 was $192,000, or $0.05 per basic and diluted share,
as compared to net income of $166,000, or $0.05 per basic and diluted share, in the second quarter of 2017. EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) was $317,000 for the second quarter of 2018, as compared to $311,000 for the
second quarter of 2017 (See Reconciliation of Net Income to EBITDA in the supplemental table included at the end of this
release).
BOS reported revenues of $15.8 million for the six months ended June 30, 2018, a 15% increase as compared to
$13.8 million in the comparable 2017 period. Net income for the six month period was $397,000, or $0.12 per basic and diluted
share, as compared to net income of $313,000, or $0.10 per basic and diluted share, in the prior year period. The Company
reported EBITDA of $682,000 for the first six months of 2018, as compared to $626,000 for the first six months of 2017.
Shareholders’ equity increased to $10.9 million ($3.07 per share) as of June 30, 2018 from $10.2 million ($3.04
per share) in December 31, 2017. The increase was primarily related to the growth in net income for the first half of 2018, as well
as to $400,000 of equity raised in April of 2018. The proceeds raised were mainly used to finance the Company’s new logistic center
that was launched during the second quarter of 2018.
Yuval Viner, Co-CEO at BOS, stated, “We are pleased with the organic revenue growth we experienced across our
Supply Chain and RFID and Mobile divisions. As we have stated in the past, we are focused on strategically building our
international pipeline, specifically for our Supply Chain division, while leveraging our leading position in Israel as a provider
of RFID and Mobile solutions, and our first half results reflect our efforts to do so. During the second quarter we announced
two orders for our comprehensive Supply Chain solutions, and have also completed the delivery of a mobile system order for a top
tier customer in the Israeli market, demonstrating our leadership position. We look forward to continuing this momentum into the
second half of fiscal 2018, and meet our forecast for fiscal 2018 of revenues exceeding $29 million and net income surpassing
$800,000.”
Eyal Cohen, Co-CEO at BOS, added, “Revenue growth in the Supply Chain division was primarily due to a 54%
increase in sales to the Far East, and growth in the RFID and Mobile division was largely attributable to orders from both new and
existing customers within the Israeli market. Our gross margins decreased slightly as compared to the comparable periods, due
primarily to product mix, but we expect gross margins to improve in the second half of the year. Furthermore, we continued to
strengthen our balance sheet providing us with a solid platform for future growth.”
Conference Call Information
BOS will host a conference call on Tuesday, August 21, 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's
periodic reports and registration statements filed with the U.S. Securities 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
IMS Investor Relations
(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 |
|
|
|
|
|
|
|
Six months ended
June 30, |
|
Three months ended
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
15,843
|
|
$ |
13,780 |
|
$ |
7,552 |
|
$ |
6,716 |
Cost of revenues |
|
12,626 |
|
|
10,868 |
|
|
5,996 |
|
|
5,252 |
Gross profit |
|
3,217 |
|
|
2,912 |
|
|
1,556 |
|
|
1,464 |
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
1,847
|
|
|
1,591
|
|
|
934 |
|
|
777 |
General and administrative |
|
850 |
|
|
845 |
|
|
389 |
|
|
449 |
Total operating costs and expenses |
|
2,697 |
|
|
2,436 |
|
|
1,323 |
|
|
1,226 |
|
|
|
|
|
|
|
|
|
Operating income |
|
520 |
|
|
476 |
|
|
233 |
|
|
238 |
Financial expenses, net |
|
(123) |
|
|
(163) |
|
|
(41) |
|
|
(72) |
Net income |
$ |
397 |
|
$ |
313 |
|
$ |
192 |
|
$ |
166 |
|
|
|
|
|
|
|
|
|
Basic and diluted net income per share |
$ |
0.12 |
|
$ |
0.10 |
|
$ |
0.05 |
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computing basic and
diluted net income per share |
|
3,446 |
|
|
3,051 |
|
|
3,534 |
|
|
3,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS |
(U.S. dollars in
thousands) |
|
|
|
|
|
|
|
June 30,
2018 |
|
December 31,
2017 |
|
|
(Unaudited) |
|
(Audited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,496 |
|
$ |
1,533 |
Restricted bank deposits |
|
|
302 |
|
|
247 |
Trade receivables |
|
|
8,237 |
|
|
9,804 |
Other accounts receivable and prepaid expenses |
|
|
1,215 |
|
|
898 |
Inventories |
|
|
2,751 |
|
|
3,240 |
|
|
|
|
|
Total current assets |
|
|
14,001 |
|
|
15,722 |
|
|
|
|
|
LONG-TERM ASSETS |
|
|
181 |
|
|
220 |
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
|
1,010 |
|
|
651 |
|
|
|
|
|
OTHER INTANGIBLE ASSETS, NET |
|
|
109 |
|
|
138 |
|
|
|
|
|
GOODWILL |
|
|
4,676 |
|
|
4,676 |
|
|
|
|
|
|
|
Total assets |
|
$ |
19,977 |
|
$ |
21,407 |
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
June
30,
2018 |
|
December 31,
2017 |
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Current maturities of long term loans |
|
|
479 |
|
|
505 |
Trade payables |
|
|
4,249 |
|
|
5,951 |
Employees and payroll accruals |
|
|
706 |
|
|
822 |
Deferred revenues |
|
|
913 |
|
|
798 |
Accrued expenses and other liabilities |
|
|
277 |
|
|
304 |
|
|
|
|
|
Total current liabilities |
|
|
6,624 |
|
|
8,380 |
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
Long-term loans, net of current maturities |
|
|
2,157 |
|
|
2,523 |
Accrued severance pay |
|
|
270 |
|
|
286 |
|
|
|
|
|
Total long-term liabilities |
|
|
2,427 |
|
|
2,809 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
10,926 |
|
|
10,218 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity |
|
$ |
19,977 |
|
$ |
21,407 |
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL RESULTS |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
Six months ended
June 30, |
|
Three months ended
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income as reported |
|
$ |
397 |
|
$ |
313 |
|
$ |
192 |
|
$ |
166 |
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
28 |
|
|
28 |
|
|
14 |
|
|
14 |
Stock based compensation |
|
|
28 |
|
|
32 |
|
|
14 |
|
|
15 |
Total Adjustments |
|
|
56 |
|
|
60 |
|
|
28 |
|
|
29 |
Net Income on a Non-GAAP basis |
|
$ |
453 |
|
$ |
373 |
|
$ |
220 |
|
$ |
195 |
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED EBITDA |
(U.S. dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, |
|
Three months ended
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
520 |
|
$ |
476 |
|
$ |
233 |
|
$ |
238 |
Add: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
28 |
|
|
28 |
|
|
14 |
|
|
14 |
Stock based compensation |
|
|
28 |
|
|
32 |
|
|
14 |
|
|
15 |
Depreciation |
|
|
106 |
|
|
90 |
|
|
56 |
|
|
44 |
EBITDA |
|
$ |
682 |
|
$ |
626 |
|
$ |
317 |
|
$ |
311 |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Six months ended June
30,
2018 |
|
Three months
ended June 30,
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
7,145 |
|
$ |
8,740 |
|
$ |
(42) |
|
$ |
15,843 |
|
$ |
3,323 |
|
$ |
4,235 |
|
$ |
(6) |
|
$ |
7,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
1,696 |
|
$ |
1,521 |
|
$ |
- |
|
$ |
3,217 |
|
$ |
720 |
|
$ |
836 |
|
$ |
- |
|
$ |
1,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RFID and
Mobile
Solutions |
|
Supply
Chain
Solutions |
|
Intercompany |
|
Consolidated |
|
RFID and
Mobile
Solutions |
|
Supply
Chain
Solutions |
|
Intercompany |
|
Consolidated |
|
|
Six months ended June
30,
2017 |
|
Three months
ended June 30,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
6,229 |
|
$ |
7,639 |
|
$ |
(88) |
|
$ |
13,780 |
|
$ |
2,918 |
|
$ |
3,823 |
|
$ |
(25) |
|
$ |
6,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
1,533 |
|
$ |
1,379 |
|
$ |
- |
|
$ |
2,912 |
|
$ |
749 |
|
$ |
715 |
|
$ |
- |
|
$ |
1,464 |
|