EX-99.1 2 ea184047ex99-1_bosbetter.htm PRESS RELEASE: BOS REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF THE YEAR 2023

Exhibit 99.1

 

BOS Reports Financial Results for the Second Quarter of the Year 2023  

 

RISHON LE ZION, Israel, August 22, 2023 – BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) reported its financial results for the second quarter of the year 2023.

 

Second Quarter 2023 Financial Highlights:

 

Revenues for the second quarter of 2023 grew by 9.5% to $11.3 million from $10.3 million in the comparable quarter last year.

 

Operating profit for the second quarter of 2023 increased by 32% to $707,000 compared to $537,000 in the comparable quarter last year.

 

EBITDA for the second quarter of 2023 increased by 32% to $863,000 from $653,000 in the comparable quarter last year.

 

Financial expenses for the second quarter of 2023 decreased to $98,000 compared to $378,000 in the comparable quarter last year. The decrease is attributed to the depreciation of the Israeli NIS as compared to the US dollar by 10.2% in the second quarter of the year 2022 as compared to a depreciation of 2.3% in the second quarter of the year 2023. 

 

Net income for the second quarter of 2023 increased by 283% to $609,000 or $0.11 per basic share compared to $159,000 or $0.03 per basic share in the second quarter of the year 2022.

 

Ziv Dekel, BOS’ Chairman, stated: “BOS’ management has invested extensive resources to strengthen BOS’ market position and penetrate new business segments. I am pleased to see the positive results consistently yielded by these efforts since 2021. In addition, we are looking for an M&A opportunity for further expansion.”

 

Eyal Cohen, BOS’ CEO, stated: “The relatively strong results in the first half of the year and our backlog for the remainder of the year 2023 advance us towards meeting and possibly exceeding our financial targets for 2023, which are revenues of over $45 million and net income above $1.5 million.”

 

 

 

 

BOS will host a conference call on August 22, 2023 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 click on the following link: https://us06web.zoom.us/j/87034095301?pwd=ZGo3bGRuTTRCZEpYOHF1OW1RWml6Zz09 or dial to: +1 646 876 9923, meeting ID - 870 3409 530, passcode - 455932

 

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 empowers inventory processes through its three business divisions:

 

The Intelligent Robotics division automates industrial and logistic inventory processes;

 

The RFID division marks and tracks inventory; and

 

The Supply Chain division manages inventory.

 

For additional information, 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.

 

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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, the 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,
 
   2023   2022   2023   2022 
   (Unaudited)   (Unaudited) 
         
Revenues  $23,478   $21,138   $11,336   $10,350 
Cost of revenues   18,409    16,667    8,931    8,130 
Gross profit   5,069    4,471    2,405    2,220 
                     
Operating costs and expenses:                    
Research and development   78    87    37    36 
Sales and marketing   2,470    2,340    1,224    1,176 
General and administrative   912    999    437    471 
Acquisition expenses   -    44    -    - 
Total operating costs and expenses   3,460    3,470    1,698    1,683 
                     
Operating income   1,609    1,001    707    537 
Financial expenses, net   (343)   (529)   (98)   (378)
Income before taxes on income   1,266    472    609    159 
Taxes on income   -    -    -    - 
Net income  $1,266   $472   $609   $159 
                     
Basic and diluted net income per share  $0.22   $0.09   $0.11   $0.03 
Weighted average number of shares used in computing basic net income per share   5,707    5,395    5,712    5,538 
Weighted average number of shares used in computing diluted net income per share   5,767    5,438    5,847    5,570 
                     
Number of outstanding shares as of June 30, 2023 and 2022   5,741    5,702    5,741    5,702 

 

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CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

   June 30,
2023
   December 31,
2022
 
   (Unaudited)   (Audited) 
ASSETS        
         
CURRENT ASSETS:        
Cash and cash equivalents  $1,931   $1,763 
Restricted bank deposits   144    130 
Trade receivables   11,011    10,834 
Other accounts receivable and prepaid expenses   1,167    1,414 
Inventories   7,667    6,433 
           
Total current assets   21,920    20,574 
           
LONG-TERM ASSETS   244    260 
           
PROPERTY AND EQUIPMENT, NET   3,341    3,270 
           
OPERATING LEASE RIGHT-OF-USE ASSETS, NET   955    1,110 
           
OTHER INTANGIBLE ASSETS, NET   1,174    486 
           
GOODWILL   4,895    4,895 
           
Total assets  $32,529   $30,595 

 

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CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

  

June 30,
2023

   December 31,
2022
 
   (Unaudited)   (Audited) 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
         
CURRENT LIABILITIES:        
Current maturities of long term loans  $391   $586 
Operating lease liabilities, current   235    301 
Trade payables   7,801    7,984 
Employees and payroll accruals   980    1,016 
Deferred revenues   1,550    542 
Advances net of inventory in process   79    47 
Accrued expenses and other liabilities   812    719 
           
Total current liabilities   11,848    11,195 
           
LONG-TERM LIABILITIES:          
Long-term loans, net of current maturities   1,209    1,294 
Operating lease liabilities, non-current   674    827 
Long term deferred revenues   401    241 
Accrued severance pay   363    404 
           
Total long-term liabilities   2,647    2,766 
           
TOTAL SHAREHOLDERS’ EQUITY   18,034    16,634 
           
Total liabilities and shareholders’ equity  $   32, 529   $30,595 

 

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CONDENSED CONSOLIDATED EBITDA

(U.S. dollars in thousands)

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2023   2022   2023   2022 
                 
Operating income  $1,609   $1,001   $707   $537 
Add:                    
Amortization of intangible assets   73    45    47    31 
Stock-based compensation   49    50    24    25 
Depreciation   165    118    85    60 
EBITDA  $1,896   $1,214   $863   $653 

 

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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID   Supply
Chain Solutions
   Intelligent Robotics   Intercompany   Consolidated 
   Six months ended June 30, 2023 
Revenues  $6,948   $15,351   $1,257   $           77   $23,633 
                          
Gross profit   1,796    3,253    20    -    5,069 
                          
Allocated operating expenses   1,097    1,859    130    -    3,086 
                          
Acquisition expenses   -    -    -    -    - 
                          
Unallocated operating expenses*   -    -    -    374      
                          
Income (loss) from operations  $699   $1,394   $(110)   -    1,609 
                          
Financial expenses and tax on income                       (343)
                          
Net income                      $1,266 

 

   RFID   Supply
Chain Solutions
   Intelligent Robotics   Intercompany   Consolidated 
  

Six months ended June 30, 2022

 
Revenues  $7,693   $12,873   $572   $              -   $21,138 
                          
Gross profit (loss)   1,915    2,575    (19)   -    4,471 
                          
Allocated operating expenses   1,209    1,585    271    -    3,065 
                          
Acquisition expenses   44    -    -    -    44 
                          
Unallocated operating expenses*   -    -    -         361 
                          
Income (loss) from operations  $662   $990   $(290)   -    1,001 
                          
Financial expenses and tax on income                       (529)
                          
Net income                      $472 

 

*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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SEGMENT INFORMATION

(U.S. dollars in thousands)

 

   RFID   Supply
Chain Solutions
   Intelligent Robotics   Intercompany   Consolidated 
  

Three months ended June 30, 2023

 
Revenues  $2,931   $7,863   $            557   $          14   $11,365 
                          
Gross profit   689    1,668    48    -    2,405 
                          
Allocated operating expenses   524    931    55    -    1,510 
                          
Unallocated operating expenses*                  -    188 
                          
Income (loss) from operations  $165   $737   $(7)   -    707 
                          
Financial expenses and tax on income                       (98)
                          
Net income                      $609 

 

   RFID   Supply
Chain Solutions
   Intelligent
Robotics
   Intercompany   Consolidated 
  

Three months ended June 30, 2022

 
Revenues  $3,590   $6,366   $             394   $                 -   $10,350 
                          
Gross profit   885    1,332    3    -    2,220 
                          
Allocated operating expenses   566    809    129    -    1,504 
                          
Unallocated operating expenses*                  -    179 
                          
Income (loss) from operations  $319   $523   $(126)   -    537 
                          
Financial expenses and tax on income                       (378)
                          
Net income                      $159 

 

*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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