BOS Reports Financial Results for the Fourth Quarter and the Year 2023
Exceeds the projections for 2023 and positive outlook for year 2024
RISHON LE ZION, Israel, March 28, 2024 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the fourth quarter and the year 2023.*Year 202**3** Financial Highlights:*
· *Revenues *grew by 6.5% to $44.2 million from $41.5 million in the year 2022 ;
· *Operating **profit* increased to $2.5 million from $1.9 million in the year 2022;
· *EBITDA* amounted to $3.06 million compared to $2.4 million in the year 2022.
· *Financial expenses *decreased to $441,000 from $647,000 in the year 2022.
· *Net income* amounted to $2.01 million or $0.35 per basic share compared to $1.28 million or $0.23 per basic share in the year 2022.*Fourth Quarter 202**3** Financial Highlights:*
· *Revenues *reduced by 3.5% to $10.9 million from $11.3 million in the fourth quarter of the year 2022;
· *Operating **profit* amounted to $400,000 compared to $652,000 in the fourth quarter of the year 2022;
· *EBITDA* amounted to $562,000 compared to $781,000 in the fourth quarter of the year 2022;
· *Financial income amounted to *$31,000 compared to financial expenses of $115,000 in the fourth quarter of the year 2022;
· *Net income* amounted to $427,000 or $0.07 per basic share compared to $531,000 or $0.09 per basic share in the fourth quarter of the year 2022.Eyal Cohen, BOS' CEO, stated: "We are pleased with the financial results of year 2023, which reflect net income of $2 million, above our expectation of $1.5 million.
"The fourth quarter results of 2023 were weak as compared to those of the fourth quarter of 2022 due to the war that started in October 2023. However, during the first quarter of 2024, the business environment in Israel has begun to recover. In addition, most of our business is linked to the Israeli defense market that has been showing increased demand. We therefore expect that in 2024 our revenues will grow to $46 million from $44.2 million in 2023 and our net income shall increase to $2.2 million from $2 million in 2023."
Ziv Dekel, BOS’ Chairman stated: "Year 2023 was characterized by growing in revenues and net income which supported by continued strengthening of BOS' core capabilities and enhancement of our competitive position in our different market places. This forms the basis for our future growth and profits."
BOS will host a video conference meeting on March 28, 2024 at 9:00 a.m. EDT. A question-and-answer session will follow management’s presentation.
To access the video conference meeting, please click on the following link:
https://us06web.zoom.us/j/81096669677?pwd=UDnhFOusds9UBQSEkC28wqY9pvM1ac.1or dial: +1 646 876 9923, meeting ID - 810 9666 9677, passcode - 185490For those unable to participate in the video conference, a recording of the meeting will be available the next day on the BOS website: www.boscorporate.com
About BOS
BOS’ technologies enhance inventory processes through 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.
*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, 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.
*CONSOLIDATED STATEMENTS OF OPERATIONS*
*U.S. dollars in thousands* *Year ended*
*December 31,* *Three months ended*
*December 31,* *2023* *2022* *2023* *2022* *(Unaudited)**
* *(Audited)* *(Unaudited)**
* *(Audited)*
Revenues $ 44,179 $ 41,511 $ 10,886 $ 11,328
Cost of revenues 34,970 32,451 8,796 8,738
Gross profit 9,209 9,060 2,090 2,590
Operating costs and expenses:
Research and development 158 166 44 38
Sales and marketing 4,891 4,924 1,278 1,375
General and administrative 1,762 2,122 420 564
Other income, net (52 ) (81 ) (52 ) (39 )
Total operating costs and expenses 6,759 7,131 1,690 1,938
Operating income 2,450 1,929 400 652
Financial income (expenses), net (441 ) (647 ) 31 (115 )
Income before taxes on income 2,009 1,282 431 537
Taxes on income (4 ) (6 ) (4 ) (6 )
Net income $ 2,005 $ 1,276 $ 427 $ 531
Basic net income per share $ 0.35 $ 0.23 $ 0.07 $ 0.09
Diluted net income per share $ 0.34 $ 0.23 $ 0.07 $ 0.09
Weighted average number of shares used in computing basic net income per share 5,727 5,550 5,748 5,702
Weighted average number of shares used in computing diluted net income per share 5,905 5,589 5,856 5,703
Number of outstanding shares as of December 31, 2023 and 2022 5,748 5,702 5,748 5,702
*CONSOLIDATED BALANCE SHEETS*
*(U.S. dollars in thousands)* * December 31, 2023* *December 31, 2022* *(Unaudited)* *(Audited)*
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,344 $ 1,763
Restricted bank deposits 217 130
Trade receivables 12,424 10,834
Other accounts receivable and prepaid expenses 963 1,414
Inventories 6,070 6,433
Total current assets 22,018 20,574
LONG-TERM ASSETS 196 260
PROPERTY AND EQUIPMENT, NET 3,268 3,270
OPERATING LEASE RIGHT-OF-USE ASSETS, NET 1,026 1,110
OTHER INTANGIBLE ASSETS, NET 1,078 486
GOODWILL 4,895 4,895
Total assets $ 32,481 $ 30,595
*CONSOLIDATED BALANCE SHEETS*
*(U.S. dollars in thousands)* *December 31, *
*2023* *December 31,
2022* *(Unaudited)* *(Audited)*
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loans $ 170 $ 586
Operating lease liabilities, current 235 301
Trade payables 7,710 7,984
Employees and payroll accruals 980 1,016
Deferred revenues 600 542
Advances net of inventory in process 137 47
Accrued expenses and other liabilities 1,072 719
Total current liabilities 10,904 11,195
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities 1,150 1,294
Operating lease liabilities, non-current 759 827
Long-term deferred revenues 339 241
Accrued severance pay 490 404
Total long-term liabilities 2,738 2,766
TOTAL SHAREHOLDERS' EQUITY 18,839 16,634
Total liabilities and shareholders' equity $ 32,481 $ 30,595
*CONDENSED CONSOLIDATED EBITDA*
(U.S. dollars in thousands) *Year ended*
*December 31,* *Three months ended*
*December 31,* *2023* *2022* *2023* *2022*
Operating income $ 2,450 $ 1,929 $ 400 $ 652
Add:
*Amortization of intangible assets * 168 107 48 31
*Stock-based compensation* 98 97 24 22
*Depreciation* 342 255 90 76
EBITDA $ 3,058 $ 2,388 $ 562 $ 781
*SEGMENT INFORMATION*
(U.S. dollars in thousands) *RFID* * * *Supply Chain Solutions**
* *Intelligent Robotics* * * * **Intercompany** * * * *Consolidated* *Year ended December 31, 2023** ** ** ** ** ** ** ** *
Revenues $ 13,713 $ 28,845 1,742 (121 ) $ 44,179
Gross profit 3,179 5,845 185 9,209
Allocated operating expenses 2,150 3,675 258 6,083
Unallocated operating expenses* - - 676
Income (loss) from operations $ 1,029 $ 2,170 $ (73 ) 2,450
Financial expenses and tax on income (445 )
Net income $ 2,005 *RFID* * * *Supply Chain Solutions**
* *Intelligent Robotics* * * * **Intercompany** * * * *Consolidated* *Year ended December 31, 2022*
Revenues $ 15,318 $ 25,232 961 $ 41,511
Gross profit (loss) 3,778 5,441 (159 ) 9,060
Allocated operating expenses 2,535 3,450 425 6,410
Unallocated operating expenses* - - 721
Income (loss) from operations $ 1,243 $ 1,991 $ (584 ) 1,929
Financial expenses and tax on income (653 )
Net income $ 1,276
*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.*SEGMENT INFORMATION*
(U.S. dollars in thousands) *RFID* *Supply **Chain Solutions* *Intelligent Robotics* *Intercompany* *Consolidated* *Three months ended December 31, 2023*
Revenues $ 3,622 $ 7,017 $ 279 (32 ) $ 10,886
Gross profit 725 1,257 108 - 2,090
Allocated operating expenses 513 974 72 - 1,559
Unallocated operating expenses* 131
Income from operations $ 212 $ 283 $ 36 - 400
Financial income and tax on income 27
Net income $ 427 *RFID* * * *Supply Chain Solutions* * * *Intelligent Robotics* * * *Intercompany* * * *Consolidated* *Three months ended December 31, 2022*
Revenues $ 4,273 $ 6,789 $ 266 $ 11,328
Gross profit 1,187 1,560 (157 ) 2,590
Allocated operating expenses 645 1,014 78 1,737
Unallocated operating expenses* 201
Income (loss) from operations $ 542 $ 546 $ (235 ) 652
Financial expenses and tax on income (121 )
Net income $ 531
*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.
CONTACT: Contact:
Eyal Cohen, CEO
+972-542525925 | eyalc@boscom.com