OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the
Company”), a provider of Supply Chain and Artificial Intelligence
(AI)-based solutions, today announced its financial results for the
three months and nine months ended September 30, 2022.
OMNIQ’s 2022 continuous
momentum:
- 45% growth in 9 months Revenue marks an all-time record of over
$77 Million.
- 71% growth in 9 Months Gross Profit up to a record of over
$18M.
- Gross margin for the 9-month period up to 23% compared to 20%
in the same period of 2021.
- Improved adjusted EBITDA for 9 months ended September 30, 2022
by $2M compared to same period of 2021.
- 32% organic Growth in Q3 Revenue compared to Q3 2021.
- 28% increase in Q3 Gross Profit compared to Q3 2021
- Improved adjusted EBITDA by $1.5M in Q3 2022 compared to Q3
2021.
Recent Events:-OMNIQ Named a Total Solution
Partner for One of The Largest Global Leaders in Enterprise Asset
Intelligence for Robotics Supply Chain Management - OMNIQ Announces
Follow on Order for its AI Based Machine Vision System for a Major
US Fast Food Chain with 800+ Locations - OMNIQ Received an
Approximately $10 Million Purchase Agreement for Intelligent
Healthcare Carts (IHC) from Israel’s Ministry of Health -ONMIQ
Announces a Purchase Order to Deploy its AI-Machine Vision Solution
in its 50th North American Airport -OMNIQ’s Self-Service Patient
Management Kiosks Featured in Israel’s Newest State of the Art
Emergency Medical Hospital
Shai Lustgarten Chairman and CEO commented: “I
am proud of how diligent our team has been throughout this year as
OMNIQ delivered record results despite the supply chain challenges
across the globe. We delivered a record Q3 with organic revenue
growth of 32% resulting in $27 million. In addition, we saw our 9
month revenue come in at $77 million, up 45% over the same period
in 2021. This growth reflects the consolidation with Dangot
Computers, Ltd. Which we acquired in July, 2021 and was also driven
by strong customer demand across all of our segments which resulted
in improved bottom line in our intended path to profitability”.
OMNIQ continues to enjoy significant growth with
our long-standing Fortune 500 customers, many of whom have relied
on the company for 20 plus years to handle their logistics and
supply chain challenges. At the same time, we have added new
customers within the parking, security and smart kiosk sectors.
OMNIQ’s Q Shield AI based law enforcement solution offered to
municipalities is experiencing positive momentum as 12 cities
in the US have already contracted and we continue to see a growing
pipeline. We expect a positive impact to both the top and bottom
line as the revenue model is based on achieving recurring revenue
coupled with significantly higher margins.
In addition, we expanded our penetration into
the multibillion dollar retail and quick serve restaurant (QSR)
markets with our AI-Machine Vision proprietary technology. We
received both an initial order as well as a strong follow-on order
from one of the largest QSRs in the US with over 800 locations and
initial orders from an automotive related retailer with 1,000
stores in the US. Both customers appreciate the added value that
our AI technology provides in improving services, increasing
revenue and higher security. We expect an increase in deployments
over the next several quarters. We also anticipate that our
innovative solutions will add greatly to our revenue opportunities,
as well as ultimately providing an unprecedented growth in
profitability.
Our increase in gross profitability, as well as
our significant growth in AI related business show that our loyal
customer base, as well as newly announced customers are relying
more on our patented technology and solutions. OMNIQ’s technology
makes the invisible visible, eliminating the touch of a human which
allows for increased productivity, efficiency, stronger customer
satisfaction and better expense control. With our revenue
visibility increasing, we are looking forward to a successful
finish to 2022 and going forward.” Mr. Lustgarten concluded.
Third Quarter 2022 Financial Results
OMNIQ reported revenue of $27 million for the
quarter ended September 30, 2022, an increase of 32% from $20,5
million in the third quarter of 2021. The revenue growth is organic
as we already consolidated our financial statements with Dangot
Computers, Ltd. which we acquired in July 2021. The organic growth
reflects higher demand from certain customers during the period.
Total operating expenses for the quarter were $8.6 million,
compared with $8.9 million in the third quarter of 2021.
Net loss for the quarter was $3.8 million, or a
loss of $.52 per basic share, compared with a loss of $5.1 million,
or a loss of $.73 per basic share, for the third quarter of last
year.
Adjusted EBITDA (adjusted Earnings Before
Interest, Taxes, Depreciation and Amortization) for the third
quarter of 2022 amounted to a loss of $516 thousand compared with
an adjusted EBITDA loss of $2 million in the third quarter of
2021.
Cash balance at September 30, 2022 was $3.8
million compared with $7 million at December 31, 2021.
Nine Months ending September 30,
2022 Financial Results
OMNIQ reported revenue of $77.5 million for the
nine months ended September 30, 2022, an increase of 45% from $53.4
million in the first nine months of 2021. The revenue increase
reflects the consolidation of our financial statements with Dangot
Computers, Ltd. which we acquired in July 2021 as well as organic
growth.
Total operating expenses for the nine months
ended September 30, 2022 were $24.2 million, compared with $19.5
million in the same period of 2021.
Net loss for the nine months ended September 30,
2022 was $9.6 million, or a loss of $1.29 per basic share, compared
with a loss of $10.8 million, or a loss of $1.86 per basic share,
for first nine months of last year.
Adjusted EBITDA (adjusted Earnings Before
Interest, Taxes, Depreciation and Amortization) for the nine months
ended September 30, 2022 amounted to a loss of $1.5 million
compared with an adjusted EBITDA loss of $3.6 million in the same
period of 2021.
Cash balance at September 30, 2022 was $3.8
million compared with $7 million at December 31, 2021.
To access the live webcast, please click on
this webcast link to register, or go to the
Company’s website at www.omniQ.com. To participate in the call
by phone, dial 888-506-0062 approximately five minutes prior to the
scheduled start time. International callers please dial
973-528-0011. Callers should use conference ID: 873322
A replay of the teleconference will be available
until Thursday, December 15, 2022, and may be accessed by dialing
877-481-4010. International callers may dial 919-882-2331 Callers
should use conference ID: 47110
OMNIQ CORP.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months |
|
|
For the nine months |
|
|
|
ending September 30, |
|
|
ending September 30, |
|
(In thousands, except share
and per share data) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
$ |
27,008 |
|
|
$ |
20,513 |
|
|
$ |
77,539 |
|
|
$ |
53,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
21,032 |
|
|
|
15,842 |
|
|
|
59,449 |
|
|
|
42,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,976 |
|
|
|
4,671 |
|
|
|
18,090 |
|
|
|
10,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & Development |
|
|
445 |
|
|
|
474 |
|
|
|
1,436 |
|
|
|
1,437 |
|
Selling, general and administrative |
|
|
7,624 |
|
|
|
6,801 |
|
|
|
21,173 |
|
|
|
15,348 |
|
Depreciation |
|
|
91 |
|
|
|
82 |
|
|
|
241 |
|
|
|
167 |
|
Amortization |
|
|
474 |
|
|
|
1,528 |
|
|
|
1,326 |
|
|
|
2,575 |
|
Total operating expenses |
|
|
8,634 |
|
|
|
8,885 |
|
|
|
24,176 |
|
|
|
19,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(2,658 |
) |
|
|
(4,214 |
) |
|
|
(6,086 |
) |
|
|
(8,922 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(880 |
) |
|
|
(587 |
) |
|
|
(2,569 |
) |
|
|
(1,890 |
) |
Other (expenses) income |
|
|
(217 |
) |
|
|
(158 |
) |
|
|
(870 |
) |
|
|
2 |
|
Total other expenses |
|
|
(1,097 |
) |
|
|
(745 |
) |
|
|
(3,439 |
) |
|
|
(1,888 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Before Income
Taxes |
|
|
(3,755 |
) |
|
|
(4,959 |
) |
|
|
(9,525 |
) |
|
|
(10,810 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
(55 |
) |
|
|
(117 |
) |
|
|
(41 |
) |
|
|
(119 |
) |
Total Provision for Income
Taxes |
|
|
(55 |
) |
|
|
(117 |
) |
|
|
(41 |
) |
|
|
(119 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(3,810 |
) |
|
$ |
(5,076 |
) |
|
$ |
(9,566 |
) |
|
$ |
(10,929 |
) |
Net income attributable to
noncontrolling interest |
|
|
- |
|
|
|
166 |
|
|
|
67 |
|
|
|
166 |
|
Net Loss attributable to OmniQ
Corp |
|
$ |
(3,810 |
) |
|
$ |
(5,242 |
) |
|
$ |
(9,633 |
) |
|
$ |
(11,095 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(3,810 |
) |
|
$ |
(5,076 |
) |
|
$ |
(9,566 |
) |
|
$ |
(10,929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
|
241 |
|
|
|
(58 |
) |
|
|
260 |
|
|
|
(24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
|
(3,569 |
) |
|
|
(5,134 |
) |
|
|
(9,306 |
) |
|
|
(10,953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net loss to
net loss attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(3,810 |
) |
|
|
(5,076 |
) |
|
|
(9,566 |
) |
|
|
(10,929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Dividends attributable
to non-common stockholders’ of OmniQ Corp |
|
|
(149 |
) |
|
|
(12 |
) |
|
|
(197 |
) |
|
|
(57 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss less non-common
stockholder dividends |
|
$ |
(3,959 |
) |
|
$ |
(5,088 |
) |
|
$ |
(9,763 |
) |
|
$ |
(10,986 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income after non-common
stockholder dividends attributable to noncontrolling interest |
|
|
- |
|
|
|
166 |
|
|
|
- |
|
|
|
166 |
|
Net loss attributable to
common stockholders of OmniQ Corp |
|
|
(3,959 |
) |
|
|
(5,242 |
) |
|
|
(9,763 |
) |
|
|
(11,095 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) per share - basic
attributable to common stockerholders’ of OmniQ Corp |
|
$ |
(0.52 |
) |
|
$ |
(0.73 |
) |
|
$ |
(1.29 |
) |
|
$ |
(1.86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding - basic |
|
|
7,578,351 |
|
|
|
7,224,958 |
|
|
|
7,545,190 |
|
|
|
5,971,440 |
|
OMNIQ CORP.CONDENSED
CONSOLIDATED BALANCE
SHEETS(UNAUDITED)
|
|
|
|
|
|
|
(In thousands, except share
and per share data) |
|
As of |
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
|
(UNAUDITED) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,791 |
|
|
$ |
7,085 |
|
Accounts receivable, net |
|
|
26,583 |
|
|
|
27,123 |
|
Inventory |
|
|
8,038 |
|
|
|
6,955 |
|
Prepaid expenses |
|
|
2,311 |
|
|
|
1,987 |
|
Other current assets |
|
|
13 |
|
|
|
9 |
|
Total current assets |
|
|
40,736 |
|
|
|
43,159 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated depreciation of $1,397
and $2,203 respectively |
|
|
940 |
|
|
|
1,127 |
|
Goodwill |
|
|
16,519 |
|
|
|
16,453 |
|
Trade name, net of accumulated amortization of $4,309 and $3,863,
respectively |
|
|
1,975 |
|
|
|
2,421 |
|
Customer relationships, net of accumulated amortization of $10,487
and $9,660, respectively |
|
|
5,242 |
|
|
|
6,069 |
|
Other intangibles, net of accumulated amortization of $1,485 and
$1,457, respectively |
|
|
723 |
|
|
|
865 |
|
|
|
|
|
|
|
|
|
|
Right of use lease asset |
|
|
2,582 |
|
|
|
3,556 |
|
Other assets |
|
|
1,628 |
|
|
|
1,431 |
|
Total
assets |
|
$ |
70,345 |
|
|
$ |
75,081 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
50,874 |
|
|
$ |
45,553 |
|
Line of credit |
|
|
7,533 |
|
|
|
5,951 |
|
Accrued payroll and sales tax |
|
|
2,860 |
|
|
|
2,658 |
|
Notes payable, related parties – current portion |
|
|
390 |
|
|
|
390 |
|
Notes payable – current portion |
|
|
7,995 |
|
|
|
7,521 |
|
Lease liability – current portion |
|
|
1,000 |
|
|
|
1,341 |
|
Other current liabilities |
|
|
2,558 |
|
|
|
2,683 |
|
Total current liabilities |
|
|
73,210 |
|
|
|
66,097 |
|
|
|
|
|
|
|
|
|
|
Long term
liabilities |
|
|
|
|
|
|
|
|
Notes payable, related party, less current portion |
|
|
- |
|
|
|
293 |
|
Accrued interest and accrued liabilities, related party |
|
|
71 |
|
|
|
63 |
|
Notes payable, less current portion |
|
|
2,855 |
|
|
|
2,646 |
|
Lease liability |
|
|
1,628 |
|
|
|
2,266 |
|
Other long term liabilities |
|
|
145 |
|
|
|
1,418 |
|
Total
liabilities |
|
|
77,909 |
|
|
|
72,783 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity (deficit) |
|
|
|
|
|
|
|
|
Series A Preferred stock; $0.001 par value; 2,000,000 shares
designated, 0 shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series B Preferred stock; $0.001 par value; 1 share designated, 0
shares issued and outstanding |
|
|
- |
|
|
|
- |
|
Series C Preferred stock; $0.001 par value; 3,000,000 shares
designated, 544,500 shares issued and outstanding,
respectively |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
Common stock; $0.001 par value; 15,000,000 shares authorized;
7,612,744 and 7,448,597 shares issued and outstanding,
respectively. |
|
|
8 |
|
|
|
20 |
|
Additional paid-in capital |
|
|
72,568 |
|
|
|
70,606 |
|
Accumulated (deficit) |
|
|
(80,401 |
) |
|
|
(70,571 |
) |
|
|
|
|
|
|
|
|
|
Cumulative Translation Adjustment |
|
|
260 |
|
|
|
(154 |
) |
Total OmniQ stockholders’
deficit |
|
|
(7,564 |
) |
|
|
(98 |
) |
|
|
Nine months ended |
|
(In
thousands) |
|
September 30, |
|
Adjusted EBITDA Calculation |
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Net loss |
|
|
(9,763 |
) |
|
|
(10,929 |
) |
Depreciation &
amortization |
|
|
1,567 |
|
|
|
2,742 |
|
Interest expense |
|
|
2,569 |
|
|
|
1,889 |
|
Income taxes |
|
|
41 |
|
|
|
119 |
|
Stock compensation |
|
|
2,811 |
|
|
|
2,596 |
|
Nonrecurring loss events |
|
|
1,293 |
|
|
|
1 |
|
Adjusted EBITDA |
|
|
(1,482 |
) |
|
|
(3,582 |
) |
|
|
|
|
|
|
|
|
|
Total revenues, net |
|
|
77,539 |
|
|
|
53,383 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of
total revenues, net |
|
|
(2 |
)% |
|
|
(7 |
)% |
About omniQ Corp.
omniQ Corp. (Nasdaq: OMQS) provides computerized
and machine vision image processing solutions that use patented and
proprietary AI technology to deliver data collection, real-time
surveillance and monitoring for supply chain management, homeland
security, public safety, traffic & parking management, and
access control applications. The technology and services provided
by the Company help clients move people, assets, and data safely
and securely through airports, warehouses, schools, national
borders, and many other applications and environments.
omniQ’s customers include government agencies
and leading Fortune 500 companies from several sectors, including
manufacturing, retail, distribution, food and beverage,
transportation and logistics, healthcare, and oil, gas, and
chemicals. Since 2014, annual revenues have grown to more than $50
million from clients in the USA and abroad.
The Company currently addresses several
billion-dollar markets, including the Global Safe City market,
forecast to grow to $29 billion by 2022, and the Ticketless Safe
Parking market, forecast to grow to $5.2 billion by 2023. For more
information, visit www.omniq.com.
Information about Forward-Looking Statements
“Safe Harbor” Statement under the Private
Securities Litigation Reform Act of 1995. Statements in this press
release relating to plans, strategies, economic performance and
trends, projections of results of specific activities or
investments, and other statements that are not descriptions of
historical facts may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934.
This release contains “forward-looking
statements” that include information relating to future events and
future financial and operating performance. The words “anticipate”,
“may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,”
“potential” and similar expressions and variations thereof are
intended to identify forward-looking statements. Forward-looking
statements should not be read as a guarantee of future performance
or results, and will not necessarily be accurate indications of the
times at, or by, which that performance or those results will be
achieved. Forward-looking statements are based on information
available at the time they are made and/or management’s good faith
belief as of that time with respect to future events, and are
subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. Important factors
that could cause these differences include, but are not limited to:
fluctuations in demand for the Company’s products particularly
during the current health crisis , the introduction of new
products, the Company’s ability to maintain customer and strategic
business relationships, the impact of competitive products and
pricing, growth in targeted markets, the adequacy of the Company’s
liquidity and financial strength to support its growth, the
Company’s ability to manage credit and debt structures from
vendors, debt holders and secured lenders, the Company’s ability to
successfully integrate its acquisitions, and other information that
may be detailed from time-to-time in omniQ Corp.’s filings with the
United States Securities and Exchange Commission. Examples of such
forward looking statements in this release include, among others,
statements regarding revenue growth, driving sales, operational and
financial initiatives, cost reduction and profitability, and
simplification of operations. For a more detailed description of
the risk factors and uncertainties affecting omniQ Corp., please
refer to the Company’s recent Securities and Exchange Commission
filings, which are available at https://www.sec.gov. omniQ
Corp. undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless otherwise required by law.
Koko Kimball(385)-758-9241kkimball@omniq.com
OMNIQ (NASDAQ:OMQS)
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