B.O.S. Better Online Solutions Reports Financial Results for the Second Quarter of Fiscal Year 2016
August 29 2016 - 7:44AM
B.O.S. Better Online Solutions Ltd. (the "Company", "BOS")
(Nasdaq:BOSC), a leading Israeli provider of RFID and Mobile
solutions and a global provider of Supply Chain solutions to
enterprises, today reported its financial results for the second
quarter of fiscal year 2016.
Net profit for the second quarter of 2016
amounted to $126,000, as compared to $29,000 in the comparable
quarter last year. Net profit for the first six months of 2016
amounted to $346,000, as compared to a net profit of $5,000 in the
first six months of year 2015 and to a net profit of $334,000 in
the entire year 2015.
Yuval Viner, BOS' CEO, stated: "We are pleased
to present a fifth consecutive quarter with net profit. We are
satisfied with the progress we have made with the integration of
the acquisition of iDnext and Next-Line at the beginning of the
year. This acquisition improved our capabilities to provide a wide
array of operational solutions to our RFID and Mobile division
customers."
Avidan Zelicovsky, BOS' President, stated: "We
are satisfied with the growth of 21% in revenues in the first half
of year 2016, as compared to the first half of year 2015. We plan
our long term growth to be based on a possible acquisition of a
complementary business and on expansion of our product and solution
offerings. We continue to invest efforts in increasing our Supply
Chain division’s business in the Far East. Our revenues in the Far
East in the first half of year 2016 increased by 100%, to $3
million, as compared to $1.5 million in the comparable period last
year."
Eyal Cohen, BOS' CFO, stated: "Our financial
position continued to improve from quarter to quarter. As of June
30, 2016, our bank debt, net of cash, amounted to $1.8 million and
shareholders' equity was $8 million. Our last twelve months EBITDA
amounted to $1.3 million."
BOS will host a conference call on Tuesday,
August 30, 2016 at 10 a.m. EDT - 5:00 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 script of the
call will be available the next day after the call on BOS’s
website, at: http://www.boscorporate.com.
About BOS
B.O.S. Better Online Solutions Ltd. (BOSC) is a
leading Israeli provider of RFID and Mobile solutions and a global
provider of Supply Chain solutions to enterprises. BOS' RFID and
Mobile division offers both turnkey integration services as well as
stand-alone products, including best-of-breed RFID and AIDC
hardware and communications equipment, BOS middleware and
industry-specific software applications. The Company's Supply Chain
division provides electronic components consolidation services to
the aerospace, defense, medical and telecommunications industries
as well as to enterprise customers worldwide. For more information,
please visit: www.boscorporate.com.
Use of Non-GAAP Financial
Information
BOS reports financial results in accordance with
U.S. 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 and continued availability of financing for
working capital purposes and to refinance outstanding indebtedness;
and additional risks and uncertainties detailed in BOS's periodic
reports and registration statements filed with the U.S. Securities
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) |
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
Three months ended June 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
14,375 |
|
|
$ |
11,928 |
|
|
$ |
6,308 |
|
|
$ |
6,101 |
|
Cost of
revenues |
|
|
|
11,508 |
|
|
|
9,568 |
|
|
|
4,992 |
|
|
|
4,928 |
|
Gross
profit |
|
|
|
2,867 |
|
|
|
2,360 |
|
|
|
1,316 |
|
|
|
1,173 |
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
|
1,546 |
|
|
|
1,370 |
|
|
|
755 |
|
|
|
692 |
|
General and administrative |
|
|
|
809 |
|
|
|
763 |
|
|
|
351 |
|
|
|
354 |
|
Total
operating costs and expenses |
|
|
|
2,355 |
|
|
|
2,133 |
|
|
|
1,106 |
|
|
|
1,046 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
512 |
|
|
|
227 |
|
|
|
210 |
|
|
|
127 |
|
Financial expenses, net |
|
|
|
(166 |
) |
|
|
(222 |
) |
|
|
(84 |
) |
|
|
(98 |
) |
Net
income |
|
|
$ |
346 |
|
|
$ |
5 |
|
|
$ |
126 |
|
|
$ |
29 |
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted net income per share |
|
|
$ |
0.14 |
|
|
$ |
0.00 |
|
|
$ |
0.05 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computing basic net income per
share |
|
|
|
2,446 |
|
|
|
1,852 |
|
|
|
2,512 |
|
|
|
1,887 |
|
Weighted
average number of shares used in computing diluted net income per
share |
|
|
|
2,452 |
|
|
|
1,852 |
|
|
|
2,518 |
|
|
|
1,887 |
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS(U.S.
dollars in thousands) |
|
|
|
|
|
|
|
June 30,2016 |
|
|
|
December 31,2015 |
|
|
(Unaudited) |
|
|
|
(Audited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,538 |
|
|
$ |
1,419 |
Restricted bank deposits |
|
|
185 |
|
|
|
195 |
Trade
receivables |
|
|
6,975 |
|
|
|
7,071 |
Other
accounts receivable and prepaid expenses |
|
|
849 |
|
|
|
725 |
Inventories |
|
|
2,111 |
|
|
|
2,503 |
|
|
|
|
|
|
|
|
Total
current assets |
|
|
11,658 |
|
|
|
11,913 |
|
|
|
|
|
|
|
|
LONG-TERM ASSETS |
|
|
62 |
|
|
|
303 |
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, NET |
|
|
531 |
|
|
|
480 |
|
|
|
|
|
|
|
|
OTHER
INTANGIBLE ASSETS, NET |
|
|
224 |
|
|
|
7 |
|
|
|
|
|
|
|
|
GOODWILL |
|
|
4,676 |
|
|
|
4,122 |
|
|
|
|
Total
assets |
|
$ |
17,151 |
|
|
$ |
16,825 |
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS(U.S.
dollars in thousands) |
|
|
|
|
|
|
|
June 30,2016 |
|
December 31,2015 |
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current
maturities of long term loans |
|
|
400 |
|
|
|
400 |
Trade
payables |
|
|
3,805 |
|
|
|
4,671 |
Employees and payroll accruals |
|
|
616 |
|
|
|
480 |
Deferred
revenues |
|
|
796 |
|
|
|
796 |
Accrued
expenses and other liabilities |
|
|
235 |
|
|
|
320 |
|
|
|
|
|
Total
current liabilities |
|
|
5,852 |
|
|
|
6,667 |
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
Long-term loans, net of current maturities |
|
|
2,938 |
|
|
|
3,458 |
Liability related to acquisition of business |
|
|
196 |
|
|
|
- |
Accrued
severance pay |
|
|
169 |
|
|
|
155 |
Deferred
gain |
|
|
28 |
|
|
|
40 |
|
|
|
|
|
Total
long-term liabilities |
|
|
3,331 |
|
|
|
3,653 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
7,968 |
|
|
|
6,505 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
|
$ |
17,151 |
|
|
$ |
16,825 |
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL
RESULTS(U.S. dollars in thousands) |
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
Three months ended June 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income as reported |
|
|
$ |
346 |
|
|
$ |
5 |
|
|
$ |
126 |
|
|
$ |
29 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
|
53 |
|
|
|
32 |
|
|
|
23 |
|
|
|
16 |
|
Stock
based compensation |
|
|
|
68 |
|
|
|
79 |
|
|
|
34 |
|
|
|
38 |
|
Acquisition expenses |
|
|
|
30 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
Adjustments |
|
|
|
151 |
|
|
|
111 |
|
|
|
57 |
|
|
|
54 |
|
Net
Income on a Non-GAAP basis |
|
|
$ |
497 |
|
|
$ |
116 |
|
|
$ |
183 |
|
|
$ |
83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED EBITDA(U.S.
dollars in thousands) |
|
|
|
|
|
|
|
Six months ended June 30, |
|
Three months ended June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
512 |
|
|
$ |
227 |
|
|
$ |
210 |
|
|
$ |
127 |
|
Add: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
53 |
|
|
|
32 |
|
|
|
23 |
|
|
|
16 |
|
Stock
based compensation |
|
|
68 |
|
|
|
79 |
|
|
|
34 |
|
|
|
38 |
|
Depreciation |
|
|
93 |
|
|
|
70 |
|
|
|
46 |
|
|
|
35 |
|
EBITDA |
|
$ |
726 |
|
|
$ |
408 |
|
|
$ |
313 |
|
|
$ |
216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (U.S. dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RFID andMobileSolutions |
|
Supply ChainSolutions |
|
|
Intercompany |
|
Consolidated |
|
|
RFID andMobileSolutions |
|
|
SupplyChainSolutions |
|
|
Intercompany |
|
|
Consolidated |
|
|
|
Six months ended June 30, 2016 |
|
|
Three months ended June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
6,034 |
|
$ |
8,368 |
|
|
|
$ |
(27 |
) |
|
$ |
14,375 |
|
|
$ |
2,584 |
|
|
$ |
3,750 |
|
|
$ |
(26 |
) |
|
|
$ |
6,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
$ |
1,499 |
|
$ |
1,368 |
|
|
|
$ |
- |
|
|
$ |
2,867 |
|
|
$ |
687 |
|
|
$ |
629 |
|
|
$ |
- |
|
|
|
$ |
1,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RFID andMobileSolutions |
|
SupplyChainSolutions |
|
|
Intercompany |
|
Consolidated |
|
|
RFID andMobileSolutions |
|
|
SupplyChainSolutions |
|
|
Intercompany |
|
|
Consolidated |
|
|
|
Six months ended June 30,2015 |
|
|
Three months ended June 30,2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
$ |
4,262 |
|
|
|
$ |
7,671 |
|
|
|
$ |
(5 |
) |
|
|
|
$ |
|
11,928 |
|
|
$ |
2,032 |
|
|
$ |
4,069 |
|
|
$ |
- |
|
|
|
$ |
6,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
|
$ |
1,126 |
|
|
|
$ |
1,234 |
|
|
|
$ |
- |
|
|
|
|
$ |
|
2,360 |
|
|
$ |
538 |
|
|
$ |
635 |
|
|
$ |
- |
|
|
|
$ |
1,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For more information:
Eyal Cohen
CFO
+972-542525925
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