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BOS Reports First Quarter of the Year 2022 Financial Results

BOSC

47% growth in revenues

RISHON LE ZION, Israel, May 31, 2022 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the first quarter of the year 2022.

Revenues for the first quarter of 2022 increased by 47% to $10.8 million compared to $7.3 million in the comparable quarter of last year.

Operating income for the first quarter of 2022 increased by 98% to $465,000 compared to $234,000 in the comparable quarter of last year.

Net income for the first quarter of 2022 increased by 155% to $314,000 or $0.06 per basic share compared to a net income of $123,000 or $0.02 per basic share in the comparable quarter of 2021.

Eyal Cohen, BOS's CEO stated: "I am encouraged by the strong opening of the first quarter of the year 2022. The globally increasing demand for electronic components and the military conflict in Europe were catalysts for the growth of the Supply Chain division. In addition, the increase in the number of logistic centers in Israel and the return of the retail stores to work on a full scale supported the growth of the RFID division. Looking forward, I anticipate that the shortage of workers for production and the logistics operations will be a growth engine for our Intelligent Robotic division."

BOS will host a conference call on Tuesday, May 31, 2022 at 9:00 a.m. EDT - 4:00 p.m., Israel Time. A question-and-answer session will follow the 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 replay of the call will be available the next day on the BOS website: www.boscom.com

About BOS

BOS provides services and systems for inventory production and management in three channels:

  • Services – The Supply Chain division provides inventory procurement and kitting.
  • Integration – the RFID division provides off-the-shelf software and equipment to track and manage inventory in the production floor and warehouse.
  • Development – the Intelligent Robotics division develops and builds custom-made robotic cells for the industrial and logistic processes.

Contact:
Eyal Cohen, CEO
+972-542525925 | eyalc@boscom.com

Use of Non-GAAP Financial Information
BOS reports financial results in accordance with US 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, failure to successfully integrate and achieve the potential benefits of the acquisition of the business operations of Imdecol Ltd. (the Robotics business line) and of Dagesh Inventory Counting and Maintenance Ltd., 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, the impact of the COVID-19 virus 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 US 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
Three months ended Year ended
March 31, December 31,
2022 2021 2021
(Unaudited) (Audited)
Revenues $10,789 $7,328 $33,634
Cost of revenues 8,537 5,648 27,048
Gross profit 2,252 1,680 6,586
Operating costs and expenses:
Research and development 51 60 208
Sales and marketing 1,150 952 3,955
General and administrative 527 434 1,906
Acquisition expenses 59 - -
Total operating costs and expenses 1,787 1,446 6,069
Operating Income 465 234 517
Financial expenses, net (151 ) (111 ) (105 )
Income before taxes on income 314 123 412
Taxes on income - - 39
Net income $ 314 $ 123 $ 451
Basic net income per share $ 0.06 $ 0.02 $ 0.09
Diluted net income per share $ 0.06 $ 0.02 $ 0.08
Weighted average number of shares used in computing basic net income per share 5,251 5,157 5,212
Weighted average number of shares used in computing diluted net income per share 5,291 5,185 5,424
Number of outstanding shares as of March 31, 2022 and 2021 and December 31, 2021 5,251 5,185 5,251


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
March 31,
2022
December 31,
2021
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,300 $ 1,875
Restricted bank deposits 239 242
Trade receivables 10,552 9,209
Other accounts receivable and prepaid expenses 1,408 977
Inventories 5,541 5,567
Total current assets 19,040 17,870
LONG-TERM ASSETS 135 150
PROPERTY AND EQUIPMENT, NET 1,073 1,097
OPERATING LEASE RIGHT-OF-USE ASSETS, NET 858 944
OTHER INTANGIBLE ASSETS, NET 580 20
GOODWILL 4,895 4,676
Total assets $ 26,581 $ 24,757


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
March 31,
2022
December 31,
2021
(Unaudited) (Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans $ 670 $ 740
Operating lease liabilities, current 475 538
Trade payables 6,711 5,200
Employees and payroll accruals 1,118 996
Deferred revenues 455 917
Advances net of inventory in process 371 249
Accrued expenses and other liabilities 333 112
Total current liabilities 10,133 8,752
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities 505 681
Operating lease liabilities, non-current 518 565
Long term deferred revenues 465 132
Accrued severance pay 273 280
Total long-term liabilities 1,761 1,658
TOTAL SHAREHOLDERS' EQUITY 14,687 14,347
Total liabilities and shareholders' equity $ 26,581 $ 24,757


CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
Three months ended Year ended
March 31, December 31,
2022 2021 2021
Operating income $ 465 $ 234 $ 517
Add:
Amortization of intangible assets 14 5 20
Stock-based compensation 25 15 67
Depreciation 58 54 238
EBITDA $ 562 $ 308 $ 842


SEGMENT INFORMATION
(U.S. dollars in thousands)
RFID Supply
Chain
solutions
Intelligent
Robotics
Intercompany Consolidated
Three months ended March 31,
2022
Revenues $ 4,103 $ 6,508 178 $ - $ 10,789
Gross profit 1,031 1,244 -23 - 2,252
Allocated operating expenses 627 776 141 - 1,544
Acquisition expenses 59 - - 59
Unallocated operating expenses* - - - 184
Income (loss) from operations $ 345 $ 468 $ (164 ) - 465
Financial expenses (151 )
Net income $ 314



RFID Supply
Chain
Solutions
Intelligent
Robotics
Intercompany Consolidated
Three months ended March 31,
2021
Revenues $ 2,948 $ 3,954 $ 454 $ (28 ) $ 7,328
Gross profit 848 648 184 - 1,680
Allocated operating expenses 545 535 198 - 1,278
Unallocated operating expenses* - - - 169
Income (loss) from operations $ 303 $ 113 $ (14 ) - $ 234
Financial expenses (111 )
tax on income
Net income 123
RFID Supply
Chain
Solutions
Intelligent
Robotics
Intercompany Consolidated
Year ended December 31,
2021
Revenues $ 13,192 $ 19,008 $ 1,576 $ (142 ) $ 33,634
Gross profit (loss) 3,338 3,708 (460 ) - 6,586
Allocated operating expenses 2,300 2,497 573 - 5,370
Unallocated operating expenses* - - - 699
Income (loss) from operations 1,038 1,211 (1,033 ) - 517
Financial expenses (105 )
tax on income 39
Net income $ 451


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