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B.O.S. Reports Third Quarter of the Year 2022 Financial Results

Growth of 13% in Revenues as compared to the Third Quarter of 2021

/EIN News/ -- RISHON LE ZION, Israel, Nov. 30, 2022 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the third quarter of the year 2022.

Revenues for the third quarter of 2022 grew by 13% to $9 million from $8 million in the comparable quarter last year.

Gross profit margin for the third quarter of 2022 improved to 22.1%, compared to 19.6% in the comparable quarter last year.

Operating profit for the third quarter amounted to $235,000 compared to an operating profit of $96,000 in the comparable quarter last year.

EBITDA for the third quarter amounted to $352,000 compared to $178,000 in the comparable quarter last year.

Net income for the third quarter of 2022 amounted to $274,000 or $0.05 per basic share compared to $87,000 or $0.02 per basic share in the comparable quarter last year.

Eyal Cohen, BOS's CEO stated: "We concluded the first nine months of 2022 with $30 million of revenues, EBITDA of $1.6 million and net income of $745,000. Financial expenses during that period included a cost of $342,000 that was attributed to foreign exchange differences between the Israeli NIS and the US dollar.
These results are in line with our financial targets for the year 2022, which are revenues of over $39 million (compared to $33.6 million in the year 2021) and net income in excess of $1 million (compared to a net income of $451,000 in the year 2021.)”

Ziv Dekel, BOS's Chairman stated: “During the first nine months of 2022, the Company continued the execution of its turnaround process, which has led to encouraging financial results. Led by Eyal, BOS' management is focused on growth initiatives, and is working diligently towards realizing its potential.”

BOS will host a conference call on Wednesday, November 30, 2022, 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 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 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

   

Nine months ended
September 30,

 

Three months ended
September 30,

     

2022

     

2021

     

2022

   

2021

   

(Unaudited)

 

(Unaudited)

         

Revenues

 

$

30,183

   

$

24,555

   

$

9,045

   

$

7,998

 

Cost of revenues

   

23,713

     

19,697

     

7,046

     

6,423

 

Gross profit

   

6,470

     

4,858

     

1,999

     

1,575

 

Operating costs and expenses:

               

Research and development

   

128

     

154

     

40

     

40

 

Sales and marketing

   

3,599

     

2,902

     

1,215

     

973

 

General and administrative

   

1,508

     

1,343

     

509

     

466

 

Total operating costs and expenses

   

5,235

     

4,399

     

1,764

     

1,479

 
                 

Operating income

   

1,235

     

459

     

235

     

96

 

Financial expenses, net

   

(532

)

   

(107

)

   

(3

)

   

(9

)

Other income, net

   

42

     

-

     

42

     

-

 

Income before taxes on income

   

745

     

352

     

274

     

87

 

Taxes on income

   

-

     

(1

)

  

 

-

     

-

 

Net income

 

$

       745

   

$

    351

   

$

274

   

$

87

 
                 

Basic and diluted net income per share

 

$

0.14

   

$

0.07

   

$

0.05

   

$

     0.02

 

Weighted average number of shares used in computing basic net income per share

   

5,498

     

5,201

     

5,702

   

5,223

 

Weighted average number of shares used in computing diluted net income per share

   

5,542

     

5,421

     

5,729

   

5,613

 
                 

Number of outstanding shares as of September 30, 2022 and 2021

   

5,702

     

5,237

     

5,702

   

5,237

 


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)

   

   September 30,
2022

   

December 31,
202
1

 
   

(Unaudited)

   

(Audited)


ASSETS

             
               

CURRENT ASSETS:

             

Cash and cash equivalents

 

$

        1,213

 

$

        1,875

 

Restricted bank deposits

   

129

   

                 242

 

Trade receivables

   

10,405

   

9,209

 

Other accounts receivable and prepaid expenses

   

1,177

   

977

 

Inventories

   

6,340

   

5,567

 
           

Total current assets

   

19,264

   

17,870

 
           

LONG-TERM ASSETS

   

257

   

150

 
           

PROPERTY AND EQUIPMENT, NET

   

3,037

   

1,097

 
           

OPERATING LEASE RIGHT-OF-USE ASSETS, NET

   

1,172

   

944

 
           

OTHER INTANGIBLE ASSETS, NET

   

517

   

20

 
           

GOODWILL

   

4,895

   

4,676

 
           

Total assets

 

$

29,142

 

$

24,757

 


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)

   

September 30,
2022

 

December 31,
202
1

   

(Unaudited)

 

(Audited)

         

LIABILITIES AND SHAREHOLDERS' EQUITY

       
         

CURRENT LIABILITIES:

       

Short term loans

 

$

        360

 

$

-


Current maturities of long-term loans

   

        577

   

          740


Operating lease liabilities, current

   

361

   

538


Trade payables

   

6,888

   

5,200


Employees and payroll accruals

   

872

   

996


Deferred revenues

   

471

   

917


Advances net of inventory in process

   

215

   

249


Accrued expenses and other liabilities

   

402

   

112


         

Total current liabilities

   

10,146

   

8,752


         

LONG-TERM LIABILITIES:

       

Long-term loans, net of current maturities

   

1,430

   

681


Operating lease liabilities, non-current

   

822

   

565


Long-term deferred revenues

   

415

   

132


Accrued severance pay

   

245

   

280


         

Total long-term liabilities

   

2,912

   

1,658


         
         

TOTAL SHAREHOLDERS' EQUITY

   

16,084

   

14,347


         
         

Total liabilities and shareholders' equity

 

$

29,142

 

$

24,757



CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)

   

Nine months ended
September 30,

 

Three months ended
September 30,

     

2022

   

2021

   

2022

 

2021

                 

Operating income

 

$

1,235

 

$

459

 

$

235

 

$

96

Add:

               

Amortization of intangible assets

   

76

   

15

   

31

   

5

Stock-based compensation

   

75

   

44

   

25

   

13

Depreciation

   

179

   

175

   

61

   

64

EBITDA

 

$

1,565

 

$

693

 

$

352

 

$

178

        

SEGMENT INFORMATION
(U.S. dollars in thousands)

   

RFID

 

Supply Chain Solutions

 

Intelligent
Robotics

 

Intercompany

 

Consolidated

             
           

Nine months ended
 September 30, 2022

                     
                     

Revenues

 

$

         11,046

 

$

        18,442

   

695

       

$

        30,183

 
                     
                     

Gross profit (loss)

   

        2,591

   

        3,881

   

         (2

)

 

-

   

        6,470

 
                     

Allocated operating expenses

   

        1,889

   

        2,436

   

         347

   

-

   

        4,672

 
                     
                     

Unallocated operating expenses*

       

-

   

-

         

        563

 
                     

Income (loss) from operations

 

$

                702

 

$

                1,445

 

$

        (349

)

 

-

   

        1,235

 
                     

Financial expenses and tax on income and other income, net

                   

(490

)

                     
                     

Net income

                 

$

                745

 
                     
                     
                     


     

RFID

 

Supply Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

         

Nine months ended
September 302021

                       
                       

Revenues

   

$

         9,193

 

$

        14,168

 

1,340

   

$

                (146

)

 

$

        24,555

 
                       
                       

Gross profit (loss)

     

        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

 
                     

SEGMENT INFORMATION
(U.S. dollars in thousands)

     

RFID

 

Supply Chain Solutions

 

Intelligent
Robotics

 

Intercompany

 

Consolidated

         

Three months ended
September 302022

 
                         
                         

Revenues

   

$

         3,352

 

$

        5,570

 

$

        123

       

$

        9,045

 
                         
                         

Gross profit

     

676

   

        1,306

    

   

17

     

-

   

        1,999

 
                         

Allocated operating expenses

     

        636

   

        851

   

     76

   

-

   

        1,563

 
                         

Unallocated operating expenses*

                     

        201

 
                         

Income (loss) from operations

   

$

                40

 

$

                455

 

$

                (59

)

 

-

   

        235

 
                         

Financial income and tax on income and other income, net

                     

        39

 
                         

Net income

                   

$

                274

 
                       


     

RFID

 

Supply Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

         

Three months ended
September 302021

                       
                       

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 expenses and tax on income

                     

        (9

)

                       

Net income

                   

$

                87

 
                       

*  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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