EX-99.1 2 ea151513ex99-1_bosbetter.htm PRESS RELEASE: B.O.S. REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF THE YEAR 2021

Exhibit 99.1

 

BOS Reports Financial Results for the Third Quarter and First Nine Months of the Year 2021

 

RISHON LE ZION, Israel, November 30, 2021 – BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) reported financial results for the third quarter and first nine months of the year 2021.

 

Eyal Cohen, BOS’s CEO, stated: “We have made progress in the first nine months of the year 2021 as compared to the comparable period last year:

 

Revenues grew by 6%
   
Gross profit increased by 15%
   
Net income of $351,000 in the first nine months of the year 2021 as compared to a $1.2 million net loss in the comparable period last year
   
A fifth consecutive profitable quarter.

 

The Robotics division’s operating loss has decreased significantly, to $489,000 in the first nine months of 2021 from $2.4 million in the comparable period last year. However, the Robotics division did not yet reach the breakeven point as previously projected. We expect the Robotics division to breakeven in the year 2022. We believe in the long-term growth potential of our Robotics division because of the increasing shortage in manpower for industrial and logistic processes. 

 

The devaluation of the US dollar against the NIS in the first nine months of 2021 yielded an increase in our operating expenses by approximately $170,000 as compared to the comparable period last year.”

 

Avidan Zelicovsky, BOS’s President, stated: “The global shortage in commodities has presented an opportunity for our Supply Chain division. We have launched a new service for our electronic industry clients that significantly shortens the lead time for the electronic components. This service has been a growth engine of this division in the first nine months of 2021”. 

 

Eyal Cohen, BOS’s CEO, added:” In view of the third quarter results, we have revised our outlook for the year 2021 in respect of our net income, to be between $400,000 and $600,000 instead of $1,000,000. Our outlook for the year 2021 revenues has not been changed and remains $33 million. We will announce our outlook for the year 2022 during the first quarter of the year 2022”. 

 

BOS will host a conference call on Tuesday, November 30, 2021, at 9:00 a.m. EST, 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 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), 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

 

   Nine months ended
September 30,
   Three months ended
September 30,
 
   2021   2020   2021   2020 
   (Unaudited)   (Unaudited) 
Revenues  $24,555   $23,125   $7,998   $8,179 
Cost of revenues   19,697    18,153    6,423    6,435 
Inventory Impairment   -    752    -    81 
Gross profit   4,858    4,220    1,575    1,663 
                     
Operating costs and expenses:                    
    Research and development   154    71    40    50 
    Sales and marketing   2,902    2,933    973    978 
    General and administrative   1,343    1,251    466    408 
    Impairment of Goodwill and intangible assets   -    988    -    - 
Total operating costs and expenses   4,399    5,243    1,479    1,436 
                     
Operating income (loss)   459    (1,023)   96    227 
Financial income (expenses), net   (107)   (235)   (9)   (98)
Other income, net   -    50    -    50 
Income before taxes on income (loss)   352    (1,208)    87    179 
Taxes on income   (1)   -    -    - 
Net income (loss)  $351   $(1,208)  $87   $179 
                     
Basic and diluted net income (loss) per share  $0.07   $(0.28)  $0.02   $0.04 
Weighted average number of shares used in computing basic net income per share   5,201    4,284    5,223    4,329 
Weighted average number of shares used in computing diluted net income per share   5,421    4,284    5,613    4,339 
                     
Number of outstanding shares as of September 30, 2021 and  2020   5,237    4,321    5,237    4,321 

 

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CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

   September 30, 2021   December 31, 2020 
   (Unaudited)   (Audited) 
ASSETS        
         
CURRENT ASSETS:        
Cash and cash equivalents  $2,002   $1,036 
Restricted bank deposits   236    140 
Trade receivables   8,846    9,172 
Other accounts receivable and prepaid expenses   1,226    1,311 
Inventories   5,149    4,871 
           
Total current assets   17,459    16,530 
           
LONG-TERM ASSETS   44    59 
           
PROPERTY AND EQUIPMENT, NET   1,139    956 
           
OPERATING LEASE RIGHT-OF-USE ASSETS, NET   992    767 
           
OTHER INTANGIBLE ASSETS, NET   25    40 
           
GOODWILL   4,676    4,676 
           
Total assets  $24,335   $23,028 

 

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CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

  

September 30,

2021

   December 31, 2020 
   (Unaudited)   (Audited) 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
         
CURRENT LIABILITIES:        
Current maturities of long term loans  $  825   $815 
Operating lease liabilities, current   495    557 
Trade payables   5,060    5,492 
Employees and payroll accruals   769    985 
Deferred revenues   742    601 
Advances net of inventory in process   106    68 
Accrued expenses and other liabilities   231    391 
           
Total current liabilities   8,228    8,909 
           
LONG-TERM LIABILITIES:          
Long-term loans, net of current maturities   756    1,216 
Operating lease liabilities, non-current   628    367 
Long term deferred revenues   190    303 
Accrued severance pay   336    364 
           
Total long-term liabilities   1,910    2,250 
           
TOTAL SHAREHOLDERS’ EQUITY   14,197    11,869 
           
Total liabilities and shareholders’ equity    24, 335   $23,028 

 

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CONDENSED CONSOLIDATED EBITDA

(U.S. dollars in thousands)

 

   Nine months ended
September 30,
   Three months ended
September 30,
 
   2021   2020   2021   2020 
                 
Operating income (loss)  $459   $(1,023)  $96   $227 
Add:                    
Impairment of Goodwill and other intangible assets   -    988    -    - 
Amortization of intangible assets   15    36    5    5 
Stock-based compensation   44    57    13    18 
Depreciation   175    208    64    66 
EBITDA  $693   $266   $178   $316 

 

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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID  

Supply

Chain Solutions

   Intelligent
Robotics
   Intercompany   Consolidated 
   Nine months ended September 30, 2021 
                     
Revenues  $9,193   $14,168    1,340   $(146)  $24,555 
                          
Gross profit   2,212    2,683    (37)   -    4,858 
                          
Allocated operating expenses   1,641    1,788    452    -    3,881 
                          
Unallocated operating expenses*   -    -    -         518 
                          
Income (loss) from operations  $571   $895   $(489)   -    459 
                          
Financial expenses and tax on income                       (108)
Net income                      $351 

 

   RFID  

Supply

Chain Solutions

   Intelligent
Robotics
   Intercompany   Consolidated 
   Nine months ended September 30, 2020 
                     
Revenues  $8,976   $13,825   $367   $(43)  $23,125 
                          
Gross profit (loss)   2,223    2,882    (885)   -    4,220 
                          
Allocated operating expenses   1,524    1,730    534    -    3,788 
                          
Impairment of goodwill and intangible assets   -    -    988    -    988 
    -    -    -           
Unallocated operating expenses*                       467 
                          
Income (loss) from operations  $699   $1,152   $(2,407)   -    (1,023)
                          
Financial expenses and tax on income                       (185)
Net loss                      $(1,208)

 

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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID  

Supply

Chain Solutions

   Intelligent
Robotics
   Intercompany   Consolidated 
   Three months ended September 30, 2021
                     
Revenues  $2,871   $4,919   $304   $(96)  $7,998 
                          
Gross profit (loss)   660    984    (69)   -    1,575 
                          
Allocated operating expenses   529    640    116    -    1,285 
                          
Unallocated operating expenses*                       194 
    -    -    -           
Income (loss) from operations  $131   $344   $(185)   -    96 
                          
Financial income and tax on income                       (9)
Net income                      $87 

 

   RFID  

Supply

Chain Solutions

   Intelligent
Robotics
   Intercompany   Consolidated 
   Three months ended September 30, 2020
                     
                     
Revenues  $3,264   $4,849   $66   $       -   $8,179 
                          
Gross profit (loss)   749    1,013    (99)   -    1,663 
                          
Allocated operating expenses   518    586    205    -    1,309 
                          
Impairment of goodwill and intangible assets   -    -    -    -    - 
                          
Unallocated operating expenses*                       127 
    -    -    -           
Income (loss) from operations  $238   $427   $(311)   -    227 
                          
Financial expenses and tax on income                       (48)
Net loss                      $179 

  

*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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