BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported financial results for the fourth quarter and the year 2021.

Eyal Cohen, BOS's CEO, stated: "We have made positive progress in the year 2021, although revenues were roughly the same as in the year 2020:

  • Gross profit margin improved to 19.6% in the year 2021 from 18.2% in the year 2020;
  • Operating expenses decreased to $6.1 million in the year 2021 from $6.8 million in the year 2020;
  • Financial expenses decreased to $105,000 in the year 2021 from $348,000 in the year 2020.

As a result, net income for the year 2021 amounted to $451,000 as compared to a $960,000 net loss in the year 2020.”

Eyal Cohen added: “On March 10, 2022, we announced that BOS’ RFID division acquired the assets of Dagesh, which provides inventory counting services in Israel. In addition, on March 28, 2022, we announced that BOS’ Supply Chain division received a $2.4 million order from an existing customer, for delivery this year. This advances us towards our financial targets for the year 2022, which are revenues over $35 million (compared to $33.6 million in the year 2021) and net income to exceed $1 million (compared to a net income of $451,000 in the year 2021.)"

BOS will host a conference call on Wednesday, March 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: http://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 InformationBOS 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 StatementsThe 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
                     
    Year ended   Three months ended
December 31, December 31,
    2021       2020      2021       2020  
                     
    (Unaudited)   (Unaudited)
                                 
Revenues   $ 33,634     $ 33,551     $ 9,079   $ 10,426  
Cost of revenues     27,048       27,433       7,351     8,528  
Gross profit     6,586       6,118       1,728     1,898  
                                 
Operating costs and expenses:                                
Research and development     208       112       54     41  
Sales and marketing     3,955       3,922       1,053     989  
General and administrative     1,906       1,747       563     496  
Impairment of intangible assets     -       517       -     -  
Impairment of Goodwill     -       471       -     -  
Total operating costs and expenses     6,069       6,769       1,670     1,526  
                                 
Operating income (loss)     517       (651 )     58     372  
Financial income (expenses), net     (105 )     (348 )     2     (113 )
Other income, net     -       39       -     (11 )
                                
Income before taxes on income (loss)     412       (960 )     60     248  
Taxes on income     39       -       40     -  
Net income (loss)     451     $ (960 )   $ 100   $ 248  
                                 
Basic net income (loss) per share   $ 0.09     $ (0.22 )   $ 0.02   $ 0.06  
Diluted net income (loss) per share   $ 0.08     $ (0.22 )   $ 0.02   $ 0.06  
Weighted average number of shares used in computing basic net income per share     5,212       4,298       5,301     4,346  
Weighted average number of shares used in computing diluted net income per share     5,424       4,298       5,438     4,350  
                               
Number of outstanding shares as of December 31, 2021 and 2020     5,251       4,391       5,251     4,396  
                               

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

December 312021

 

December 31, 2020

   

(Unaudited)

 

(Audited)

ASSETS

               
                 

CURRENT ASSETS:

               

Cash and cash equivalents

 

$

1,875

 

$

1,036

Restricted cash deposits

   

242

   

140

Trade receivables

   

9,209

   

9,172

Other accounts receivable and prepaid expenses

   

977

   

1,311

Inventories

   

5,567

   

4,871

                 

Total current assets

   

17,870

   

16,530

                 

LONG-TERM ASSETS

   

150

   

59

                 

PROPERTY AND EQUIPMENT, NET

   

1,097

   

956

                 

OPERATING LEASE RIGHT-OF-USE ASSETS, NET

   

944

   

767

                 

OTHER INTANGIBLE ASSETS, NET

   

20

   

40

                 

GOODWILL

   

4,676

   

4,676

                 

Total assets

 

$

24,757

 

$

23,028

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

December31,2021

 

December 31,2020

   

(Unaudited)

 

(Audited)

         

LIABILITIES AND SHAREHOLDERS' EQUITY

       
         

CURRENT LIABILITIES:

       

Current maturities of long term loans

 

$

740

 

$

815

Operating lease liabilities, current

   

538

   

557

Trade payables

   

5,200

   

5,492

Employees and payroll accruals

   

996

   

985

Deferred revenues

   

917

   

601

Advances net of inventory in process

   

249

   

68

Accrued expenses and other liabilities

   

112

   

391

         

Total current liabilities

   

8,752

   

8,909

         

LONG-TERM LIABILITIES:

       

Long-term loans, net of current maturities

   

681

   

1,216

Operating lease liabilities, non-current

   

565

   

367

Long term deferred revenues

   

132

   

303

Accrued severance pay

   

280

   

364

         

Total long-term liabilities

   

1,658

   

2,250

         
         

TOTAL SHAREHOLDERS' EQUITY

   

14,347

   

11,869

         
         

Total liabilities and shareholders' equity

 

$

24,757

 

$

23,028

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

Year endedDecember 31,

 

Three months endedDecember 31,

    2021   2020  

2021

 

2020

                 

Operating income (loss)

 

$

517

 

$

(651

)

 

$

58

 

$

372

Add:

               

Impairment of Goodwill and other intangible assets

   

-

   

988

     

-

   

-

Amortization of intangible assets

   

20

   

40

     

5

   

4

Stock-based compensation

   

67

   

65

     

23

   

8

Depreciation

   

238

   

270

     

63

   

62

EBITDA

 

$

842

 

$

712

   

$

149

 

$

446

        

SEGMENT INFORMATION
(U.S. dollars in thousands)
 

RFID

 

Supply Chain Solutions

 

IntelligentRobotics

 

Intercompany

 

Consolidated

                                     
           

  Year ended December 31,2021        
                                     
                                     

Revenues

$

13,192

 

$

19,008

     

1,576

   

$

(142

)

 

$

33,634

 
                                     
                                     

Gross profit

 

3,338

   

3,708

     

(460

)

   

-

     

6,586

 
                                     

Allocated operating expenses

 

2,300

   

2,497

     

573

     

-

     

5,370

 
                                     

Unallocated operating expenses*

 

-

   

-

     

-

             

699

 
                                     

Income (loss) from operations

$

1,038

 

$

1,211

   

$

(1,033

)

   

-

     

517

 
                                     
Financial expenses and                                 (105 )
                                     

tax on income

                               

39

 
                                     

Net income

                             

$

451

 
   

RFID

   

SupplyChain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

           

Year ended December 31, 2020

                                         
                                         

Revenues

 

$

12,523

   

$

18,594

 

$

2,502

   

$

(68

)

   

$

33,551

                                         
                                         

Gross profit (loss)

   

3,265

     

3,724

   

(871

)

   

-

       

6,118

                                         
                                         

Allocated operating expenses

   

2,099

     

2,373

   

641

     

-

       

5,113

                                         

Impairment of goodwill and intangible assets

   

-

     

-

   

988

     

-

       

988

     

-

     

-

   

-

                 

Unallocated operating expenses*

                                     

668

                                         

Income (loss) from operations

 

$

1,166

   

$

1,351

 

$

(2,500

)

   

-

       

(651

                                         

Financial expenses

                                     

(348

Other income

                                     

39

                                         

Net loss

                                   

$

(960

                                         

SEGMENT INFORMATION(U.S. dollars in thousands)

     

RFID

 

Supply

Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

 
         

Three months ended December 31,

2021

   
                           
                           

Revenues

   

$

         3,999

 

$

        4,840

 

$

        236

   

$

        4

 

$

        9,079

   
                           
                           

Gross profit (loss)

     

1,126

   

        1,025

   

(423

)

   

-

   

        1,728

   
                           

Allocated operating expenses

     

        659

   

        709

   

     121

     

-

   

1,489

   
                           

Unallocated operating expenses*

                     

        181

   
       

-

   

-

   

-

             

Income (loss) from operations

   

$

                467

 

$

                316

 

$

                (544

)

   

-

   

58

   
                           

Financial income

                     

2

   
                           

Tax on income

                     

        40

   
                           

Net income

                     

100

   
                       
     

RFID

 

Supply

Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

 
         

Three months ended December 31,

2020

   
                           
                           

Revenues

   

$

         3,547

 

$

        4,769

 

$

        2,135

   

$

        (25

)

 

$

        10,426

     
                           
                           

Gross profit (loss)

     

        1,042

   

        842

   

      14     

     

-

     

        1,898

     
                           

Allocated operating expenses

     

        575

   

        643

   

137

     

-

     

        1,355

     
                           

Impairment of goodwill and intangible assets

     

        -

   

        -

   

     -

     

-

     

        -

     
                           

Unallocated operating expenses*

                     

        201

     
       

-

   

-

   

-

             

Income (loss) from operations

   

$

                467

   

197

 

$

                (91

)

   

-

     

372

     

Financial expenses

                     

(113

)

   

Tax on income

                     

        (11

)

   

Net loss

                   

$

                248

     

*   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, directors fees, public company fees, legal fees, and other similar corporate costs.

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