EX-99.1 2 ea146716ex99-1_bosbetter.htm PRESS RELEASE: B.O.S. BETTER ONLINE SOLUTIONS REPORTS SECOND QUARTER OF 2021 FINANCIAL RESULTS

Exhibit 99.1

 

BOS Reports Second Quarter of the Year 2021 Financial Results

 

Fourth Consecutive Profitable Quarter

 

RISHON LE ZION, Israel, August 31, 2021 – BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) reported its financial results for the second quarter of the year 2021.

 

Revenues for the second quarter of 2021 were $9.2 million compared to $7.5 million in the comparable quarter last year, a 23.4% growth.

 

Gross profit margin for the second quarter of 2021 was 17.3% compared to 11.7% in the comparable quarter last year.

 

Operating profit for the second quarter was $129,000 compared to an operating loss of $1.4 million in the comparable quarter last year.

 

Net income for the second quarter of 2021 was $141,000 or $0.03 per basic share compared to a net loss of $1.4 million or $0.34 per basic share in the comparable quarter last year.

 

Eyal Cohen, BOS’s CEO stated: “While we still have significant business challenges to solve in the Robotic division, I am encouraged by the continuing improvement in our financial results. Regarding the year 2021 outlook, we reiterate our expectation for revenues over $33 million and a net profit of above $1 million.”

 

BOS will host a conference call on Tuesday, August 31, 2021, at 9:00 a.m. EDT - 4:00 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 replay of the call will be available the next day on the BOS website: www.boscom.com

 

About BOS

 

BOS is a global provider of custom-made robots and an integrator of off-the-shelf automation systems for industrial and logistics processes. BOS also provides supply chain services, mainly for the aerospace and defense industries worldwide.

 

For more information, please visit our websites:

 

Corporate - www.boscom.com | Robotics – www.imdecol.com

 

RFID – www.dimex.co.il | Supply Chain – www.odem.co.il

 

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), 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.

 

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CONSOLIDATED STATEMENTS OF OPERATIONS

 

U.S. dollars in thousands

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2021   2020   2021   2020 
   (Unaudited)   (Unaudited) 
         
Revenues  $16,557   $14,946   $9,229   $7,478 
Cost of revenues   13,274    11,718    7,626    6,048 
Inventory Impairment   -    671    -    552 
Gross profit   3,283    2,557    1,603    878 
                     
Operating costs and expenses:                    
Research and development   114    21    54    3 
Sales and marketing   1,929    1,953    977    846 
General and administrative   877    843    443    394 
Impairment of Goodwill and intangible assets   -    988    -    988 
Total operating costs and expenses   2,920    3,805    1,474    2,231 
                     
Operating income (loss)   363    (1,248)   129    (1,353)
Financial income (expenses), net   (98)   (137)   13    (81)
Income before taxes on income (loss)   265    (1,385)   142    (1,434)
Taxes on income   (1)   -    (1)   - 
Net income (loss)  $264   $(1,385)  $141   $(1,434)
                     
Basic and diluted net income (loss) per share  $0.05   $(0.32)  $0.03   $(0.34)
Weighted average number of shares used in computing basic net income per share   5,188    4,265    5,219    4,273 
Weighted average number of shares used in computing diluted net income per share   5,216    4,265    5,252    4,273 
                     
Number of outstanding shares as of June 30, 2021 and 2020   5,224    4,318    5,224    4,318 

 

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CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

   June 30,
2021
   December 31,
2020
 
   (Unaudited)   (Audited) 
ASSETS        
         
CURRENT ASSETS:          
Cash and cash equivalents  $1,929   $1,036 
Restricted bank deposits   139    140 
Trade receivables   10,020    9,172 
Other accounts receivable and prepaid expenses   1,089    1,311 
Inventories   4,816    4,871 
           
Total current assets   17,993    16,530 
           
LONG-TERM ASSETS   26    59 
           
PROPERTY AND EQUIPMENT, NET   1,091    956 
           
OPERATING LEASE RIGHT-OF-USE ASSETS, NET   987    767 
           
OTHER INTANGIBLE ASSETS, NET   30    40 
           
GOODWILL   4,676    4,676 
           
Total assets  $24,803   $23,028 

 

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CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

   June 30,
2021
   December 31,
2020
 
   (Unaudited)   (Audited) 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
         
CURRENT LIABILITIES:        
Current maturities of long term loans  $835   $815 
Operating lease liabilities, current   480    557 
Trade payables   5,453    5,492 
Employees and payroll accruals   929    985 
Deferred revenues   702    601 
Advances net of inventory in process   202    68 
Accrued expenses and other liabilities   89    391 
           
Total current liabilities   8,690    8,909 
           
LONG-TERM LIABILITIES:          
Long-term loans, net of current maturities   903    1,216 
Operating lease liabilities, non-current   636    367 
Long term deferred revenues   180    303 
Accrued severance pay   329    364 
           
Total long-term liabilities   2,048    2,250 
           
TOTAL SHAREHOLDERS’ EQUITY   14,065    11,869 
           
Total liabilities and shareholders’ equity  $   24, 803   $23,028 

 

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CONDENSED CONSOLIDATED EBITDA

(U.S. dollars in thousands)

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2021   2020   2021   2020 
                 
Operating income (loss)  $363   $(1,248)  $129   $(1,353)
Add:                    
Impairment of Goodwill and other intangible assets   -    988    -    988 
Amortization of intangible assets   10    32    5    6 
Stock-based compensation   31    39    16    18 
Depreciation   111    142    57    71 
                     
EBITDA  $515   $(47)  $207   $(270)

 

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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID  

Supply

Chain Solutions

   Intelligent Robotics   Intercompany   Consolidated 
   Six months ended June 30, 2021 
Revenues  $6,322   $9,249   $1,036   $      (50)  $16,557 
                          
Gross profit   1,553    1,699    31    -    3,283 
                          
Allocated operating expenses   1,112    1,148    336          -    2,596 
                          
Unallocated operating expenses*   -    -    -         324 
                          
Income (loss) from operations  $441   $551   $(305)   -    363 
                          
Financial expenses and tax on income                       (99)
                          
Net income                      $264 

 

   RFID   Supply Chain Solutions   Intelligent Robotics   Intercompany   Consolidated 
   Six months ended June 30,  2020 
     
Revenues  $5,712   $8,976   $301   $      (43)  $14,946 
                          
Gross profit (loss)   1,467    1,869    (779)   -    2,557 
                          
Allocated operating expenses   1,006    1,144    329    -    2,479 
                          
Impairment of goodwill and intangible assets   -    -    988    -    988 
    -    -    -           
Unallocated operating expenses*                       338 
                          
Income (loss) from operations  $461   $725   $(2,096)   -    (1,248)
                          
Financial expenses and tax on income                       (137)
                          
Net loss                      $(1,385)

 

7

 

 

SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID  

Supply

Chain Solutions

   Intelligent Robotics   Intercompany   Consolidated 
  

Three months ended June 30, 2021

 
                     
Revenues  $3,374   $5,295   $582   $      (22)  $9,229 
                          
Gross profit (loss)   706    1,050    (153)   -    1,603 
                          
Allocated operating expenses   567    612    138    -    1,319 
                          
Unallocated operating expenses*                       155 
    -    -    -           
Income (loss) from operations  $139   $438   $(291)   -    129 
                          
Financial income and tax on income                       12 
                          
Net income                      $141 

 

   RFID  

Supply

Chain Solutions

   Intelligent Robotics   Intercompany   Consolidated 
  

Three months ended June 30, 2020

 
                     
Revenues  $2,407   $4,895   $198   $      (22)  $7,478 
                          
Gross profit (loss)   534    1,009    (665)   -    878 
                          
Allocated operating expenses   454    533    114    -    1,101 
                          
Impairment of goodwill and intangible assets   -    -    988    -    988 
                          
Unallocated operating expenses*                       142 
    -    -    -           
Income (loss) from operations  $80   $476   $(1,767)   -    (1,353)
                          
Financial expenses and tax on income                       (81)
Net loss                      $(1,434)

 

*Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.

 

 

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