B.O.S. Better Online Solutions Reports Financial Results for the Fourth Quarter and Fiscal Year ended December 31, 2016
22 March 2017 - 12:30AM
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 Fourth
quarter and fiscal year ended December 31, 2016.
Highlights of Year 2016 results:
- Net income of $360,000 in year 2016 as compared to a net income
of $334,000 in year 2015.
- Revenues grew by 7% to $27.5 million in year 2016 from $25.6
million in year 2015.
- Net income, on a non-GAAP basis in year 2016 amounted to
$571,000 as compared to $576,000 in year 2015.
- EBITDA in year 2016 amounted to $1.1 million as compared to $1
million in year 2015.
Highlights for the fourth quarter 2016
results:
- Net income amounted to $219,000 as compared to $214,000 in the
comparable quarter last year.
- Revenues amounted to $6.8 million as compared to $7.4 million
in the comparable quarter last year.
- Net income, on a non-GAAP basis amounted to $278,000 as
compared to $310,000 in the comparable quarter last year.
- EBITDA for the fourth quarter of 2016 amounted to $417,000 as
compared to $352,000 in the comparable quarter last year.
Yuval Viner, CEO, stated: "I am pleased to have
met our public forecast for the year 2016, which was an increase in
our revenues and in our net profit, as compared to 2015. Our
outlook for year 2017 is a net profit of $0.5 million and further
growth in revenues as compared to year 2016.
"In the beginning of 2016, we acquired the
business of iDnext and its subsidiary, Next-Line. This allowed us
to expand our advanced logistic solutions in the field of Automatic
Identification Data Collection. Since the acquisition, we have
invested substantial amount of working capital and managerial
resources in the integration process. We are pleased with the
resulting synergies, but there is still work to be done in order to
improve the performance of this business."
Avidan Zelicovsky, President stated: "Sales of
the Supply Chain division outside of Israel amounted to $6.8
million in year 2016. During this year, we have made significant
progress in expanding our Supply Chain business in India. We
are continuing to focus on this market, with the intention of
further growing our activity in this territory."
Eyal Cohen, CFO, stated: "In 2016, we have
continued the improvement in our financial position. Our
shareholder' equity amounted to $8.6 million in December 2016 and
it accounted for 47% of our balance sheet. Our net debt
decreased to $1.85 million in December 2016 from $2.44 million in
December 31, 2015, reflecting our trend in recent years of reducing
our debt.”
BOS will host a conference call on Tuesday,
March 21, 2017 at 11 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: +972-3-918-0644.
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 BOSB.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) |
|
|
|
|
|
|
|
Year ended December 31, |
|
Three months ended December
31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
27,427 |
|
|
$ |
25,599 |
|
|
|
6,777 |
|
|
$ |
7,376 |
|
Cost of
revenues |
|
|
22,112 |
|
|
|
20,462 |
|
|
|
5,341 |
|
|
|
5,845 |
|
Gross
profit |
|
|
5,315 |
|
|
|
5,317 |
|
|
|
1,436 |
|
|
|
1,531 |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
3,111 |
|
|
|
2,768 |
|
|
|
818 |
|
|
|
715 |
|
General
and administrative |
|
|
1,498 |
|
|
|
1,681 |
|
|
|
306 |
|
|
|
547 |
|
Total
operating costs and expenses |
|
|
4,609 |
|
|
|
4,449 |
|
|
|
1,124 |
|
|
|
1,262 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
706 |
|
|
|
688 |
|
|
|
312 |
|
|
|
269 |
|
Financial expenses, net |
|
|
(339 |
) |
|
|
(376 |
) |
|
|
(93 |
) |
|
|
(86 |
) |
Income
before taxes on income |
|
|
367 |
|
|
|
312 |
|
|
|
219 |
|
|
|
183 |
|
Taxes on
income (tax benefit) |
|
|
7 |
|
|
(22 |
) |
|
|
- |
|
|
|
(31 |
) |
Net
income |
|
$ |
360 |
|
|
$ |
334 |
|
|
$ |
219 |
|
|
$ |
214 |
|
|
|
|
|
|
|
|
|
|
Basic
and diluted net income per share |
|
$ |
0.14 |
|
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (in thousands) used in computing basic net
income per share |
|
|
2,587 |
|
|
|
1,970 |
|
|
|
2,783 |
|
|
|
2,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (in thousands) used in computing diluted
net income per share |
|
|
2,593 |
|
|
|
1,970 |
|
|
|
2,783 |
|
|
|
2,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
|
|
December 31,
2016 |
|
December 31, 2015 |
|
|
(Unaudited) |
|
(Audited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,286 |
|
$ |
1,419 |
|
Restricted bank deposits |
|
|
196 |
|
|
195 |
|
Trade
receivables |
|
|
7,928 |
|
|
7,071 |
|
Other
accounts receivable and prepaid expenses |
|
|
992 |
|
|
725 |
|
Inventories |
|
|
2,314 |
|
|
2,503 |
|
|
|
|
|
|
|
Total
current assets |
|
|
12,716 |
|
|
11,913 |
|
|
|
|
|
|
|
LONG-TERM ASSETS |
|
|
43 |
|
|
303 |
|
|
|
|
|
|
|
PROPERTY
AND EQUIPMENT, NET |
|
|
514 |
|
|
480 |
|
|
|
|
|
|
|
OTHER
INTANGIBLE ASSETS, NET |
|
|
195 |
|
|
7 |
|
|
|
|
|
|
|
GOODWILL |
|
|
4,676 |
|
|
4,122 |
|
|
|
|
|
|
|
Total
assets |
|
$ |
18,144 |
|
$ |
16,825 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
December 31,
2016 |
|
December 31, 2015 |
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current
maturities of long term loans |
|
$ |
400 |
|
$ |
400 |
Trade
payables |
|
|
4,601 |
|
|
4,671 |
Employees
and payroll accruals |
|
|
677 |
|
|
480 |
Deferred
revenues |
|
|
680 |
|
|
796 |
Accrued
expenses and other liabilities |
|
|
259 |
|
|
320 |
|
|
|
|
|
Total
current liabilities |
|
|
6,617 |
|
|
6,667 |
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
Long-term
loans, net of current maturities |
|
|
2,734 |
|
|
3,458 |
Accrued
severance pay |
|
|
194 |
|
|
155 |
Deferred
gain |
|
|
15 |
|
|
40 |
|
|
|
|
|
Total
long-term liabilities |
|
|
2,943 |
|
|
3,653 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
8,584 |
|
|
6,505 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
|
$ |
18,144 |
|
$ |
16,825 |
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP FINANCIAL
RESULTS |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
Year ended December 31, |
|
Three months ended December
31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income as reported |
|
$ |
360 |
|
$ |
334 |
|
$ |
219 |
|
$ |
214 |
Adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
64 |
|
|
63 |
|
|
14 |
|
|
15 |
Stock
based compensation |
|
|
147 |
|
|
130 |
|
|
45 |
|
|
32 |
Acquisition expenses |
|
|
- |
|
|
49 |
|
|
- |
|
|
49 |
Total
Adjustments |
|
|
211 |
|
|
242 |
|
|
59 |
|
|
96 |
Net
Income on a Non-GAAP basis |
|
$ |
571 |
|
$ |
576 |
|
$ |
278 |
|
$ |
310 |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED EBITDA |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
Year ended
December 31, |
|
Three months ended
December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
706 |
|
$ |
688 |
|
$ |
312 |
|
$ |
269 |
Add: |
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
64 |
|
|
63 |
|
|
14 |
|
|
15 |
Stock
based compensation |
|
|
147 |
|
|
130 |
|
|
45 |
|
|
32 |
Depreciation |
|
|
184 |
|
|
142 |
|
|
46 |
|
|
36 |
EBITDA |
|
$ |
1,101 |
|
$ |
1,023 |
|
|
417 |
|
$ |
352 |
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION |
(U.S. dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RFID and Mobile Solutions |
|
Supply Chain
Solutions |
|
Intercompany |
|
Consolidated |
|
RFID and Mobile Solutions |
|
SupplyChain
Solutions |
|
Intercompany |
|
Consolidated |
|
|
Year ended December
31, 2016 |
|
Three months ended December
31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
12,197 |
|
$ |
15,291 |
|
$ |
(61 |
) |
|
$ |
27,427 |
|
$ |
3,379 |
|
$ |
3,409 |
|
$ |
(11 |
) |
|
$ |
6,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
2,888 |
|
$ |
2,427 |
|
$ |
- |
|
|
$ |
5,315 |
|
$ |
872 |
|
$ |
564 |
|
$ |
- |
|
|
$ |
1,436 |
|
|
RFID and Mobile Solutions |
|
SupplyChain
Solutions |
|
Intercompany |
|
Consolidated |
|
RFID and Mobile Solutions |
|
SupplyChain
Solutions |
|
Intercompany |
|
Consolidated |
|
|
Year ended December
31, 2015 |
|
Three months ended December
31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
9,270 |
|
$ |
16,336 |
|
$ |
(7 |
) |
|
$ |
25,599 |
|
$ |
2,757 |
|
$ |
4,620 |
|
$ |
(1 |
) |
|
$ |
7,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
2,608 |
|
$ |
2,529 |
|
$ |
- |
|
|
$ |
5,137 |
|
$ |
833 |
|
$ |
698 |
|
$ |
- |
|
|
$ |
1,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For more information:
Eyal Cohen
CFO
+972-542525925
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