BOS Reports Financial Results for the Fourth Quarter and the Year 2022
29 March 2023 - 10:00PM
BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ:
BOSC) reported its financial results for the fourth quarter and the
year 2022.
Fourth Quarter 2022 Financial
Highlights:
- Revenues grew by 25% to $11.3 million from
$9.1 million in the fourth quarter of the year 2021;
- Gross profit margin improved to 22.8% compared
to 19.0% in the fourth quarter of the year 2021;
- Operating profit amounted to $652,000 compared
to $58,000 in the fourth quarter of the year 2021;
- EBITDA amounted to $781,000 compared to
$149,000 in the fourth quarter of the year 2021;
- Financial expenses increased to $115,000 from
$2,000 in the fourth quarter of the year 2021;
- Net income amounted to $531,000 or $0.09 per
basic share compared to $100,000 or $0.02 per basic share in the
fourth quarter of the year 2021;
Year 2022 Financial
Highlights:
- Revenues grew by 23% to $41.5 million from
$33.6 million in the year 2021 ;
- Gross profit margin improved to 21.8% from
19.6% in the year 2021;
- Operating profit increased to $1.9 million
from $0.5 million in the year 2021;
- EBITDA amounted to $2.4 million compared to
$0.84 million in the year 2021.
- Financial expenses increased to $647,000 from
$105,000 in the year 2021.
- Net income amounted to $1.28 million or $0.23
per basic share compared to $0.45 million or $0.09 per basic share
in the year 2021.
Financial Outlook:
For the full year 2023, BOS currently expects:
- Revenues of $45 million
- Net income of $1.5 million
Eyal Cohen, BOS' CEO stated: "We are pleased with
the financial results of year 2022, which were above our
expectations. We feel comfortable with our year 2023 projection and
we are executing our growth plan that should yield further positive
results in year 2024."
Ziv Dekel, BOS’ Chairman stated: “ Year 2022 was
characterized by continued strengthening of BOS' core capabilities
and enhancement of our competitive position in our different market
places. This forms the basis for our future growth and
profits."
BOS will host a conference call on Wednesday,
March 29, 2023, 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, 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 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 December 31, |
|
Three months ended December
31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
Revenues |
|
$ 41,511 |
|
$ 33,634 |
|
$ 11,328 |
|
$ 9,079 |
Cost of revenues |
|
32,451 |
|
27,048 |
|
8,738 |
|
7,351 |
Gross profit |
|
9,060 |
|
6,586 |
|
2,590 |
|
1,728 |
Operating costs and expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
166 |
|
208 |
|
38 |
|
54 |
Sales and marketing |
|
4,924 |
|
3,955 |
|
1,375 |
|
1,053 |
General and administrative |
|
2,122 |
|
1,906 |
|
564 |
|
563 |
Other income, net |
|
(81) |
|
- |
|
(39) |
|
- |
Total operating costs and expenses |
|
7,131 |
|
6,069 |
|
1,938 |
|
1,670 |
|
|
|
|
|
|
|
|
|
Operating income |
|
1,929 |
|
517 |
|
652 |
|
58 |
Financial expenses, net |
|
(647) |
|
(105) |
|
(115) |
|
2 |
Income before taxes on income |
|
1,282 |
|
412 |
|
537 |
|
60 |
Taxes benefit (taxes on income) |
|
(6) |
|
39 |
|
(6) |
|
40 |
Net income |
|
$ 1,276 |
|
$ 451 |
|
$ 531 |
|
$ 100 |
|
|
|
|
|
|
|
|
|
Basic and diluted net income per share |
|
$ 0.23 |
|
$ 0.09 |
|
$ 0.09 |
|
$ 0.02 |
Weighted average number of shares used in computing basic net
income per share |
|
5,550 |
|
5,212 |
|
5,702 |
|
5,301 |
Weighted average number of shares used in computing diluted net
income per share |
|
5,589 |
|
5,424 |
|
5,703 |
|
5,438 |
|
|
|
|
|
|
|
|
|
Number of outstanding shares as of December 31, 2022 and 2021 |
|
5,702 |
|
5,251 |
|
5,702 |
|
5,251 |
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
|
|
December31, 2022 |
|
December31, 2021 |
|
|
(Unaudited) |
|
(Audited) |
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
|
$ |
1,763 |
|
$ |
1,875 |
Restricted bank deposits |
|
130 |
|
242 |
Trade receivables |
|
10,834 |
|
9,209 |
Other accounts receivable and prepaid expenses |
|
1,414 |
|
977 |
Inventories |
|
6,433 |
|
5,567 |
|
|
|
|
|
Total current assets |
|
20,574 |
|
17,870 |
|
|
|
|
|
LONG-TERM ASSETS |
|
260 |
|
150 |
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET |
|
3,270 |
|
1,097 |
|
|
|
|
|
OPERATING LEASE RIGHT-OF-USE ASSETS, NET |
|
1,110 |
|
944 |
|
|
|
|
|
OTHER INTANGIBLE ASSETS, NET |
|
486 |
|
20 |
|
|
|
|
|
GOODWILL |
|
4,895 |
|
4,676 |
|
|
|
|
|
Total assets |
|
$ |
30,595 |
|
$ |
24,757 |
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
|
|
December 31, 2022 |
|
December 31, 2021 |
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Current maturities of long-term loans |
|
$ |
586 |
|
$ |
740 |
Operating lease liabilities, current |
|
|
301 |
|
|
538 |
Trade payables |
|
|
7,984 |
|
|
5,200 |
Employees and payroll accruals |
|
|
1,016 |
|
|
996 |
Deferred revenues |
|
|
542 |
|
|
917 |
Advances net of inventory in process |
|
|
47 |
|
|
249 |
Accrued expenses and other liabilities |
|
|
719 |
|
|
112 |
|
|
|
|
|
Total current liabilities |
|
|
11,195 |
|
|
8,752 |
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
Long-term loans, net of current maturities |
|
|
1,294 |
|
|
681 |
Operating lease liabilities, non-current |
|
|
827 |
|
|
565 |
Long-term deferred revenues |
|
|
241 |
|
|
132 |
Accrued severance pay |
|
|
404 |
|
|
280 |
|
|
|
|
|
Total long-term liabilities |
|
|
2,766 |
|
|
1,658 |
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
|
|
16,634 |
|
|
14,347 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
30, 595 |
|
$ |
24,757 |
CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
|
|
Year ended December 31, |
|
Three months
ended December 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
1,929 |
|
$ |
517 |
|
$ |
652 |
|
$ |
58 |
Add: |
|
|
|
|
|
|
|
|
Amortization
of intangible assets |
|
|
107 |
|
|
20 |
|
|
31 |
|
|
5 |
Stock-based
compensation |
|
|
97 |
|
|
67 |
|
|
22 |
|
|
23 |
Depreciation |
|
|
255 |
|
|
238 |
|
|
76 |
|
|
63 |
EBITDA |
|
$ |
2,388 |
|
$ |
842 |
|
$ |
781 |
|
$ |
149 |
SEGMENT INFORMATION (U.S.
dollars in thousands)
|
|
RFID |
|
Supply ChainSolutions |
|
IntelligentRobotics |
|
Intercompany |
|
Consolidated |
|
|
|
|
|
Year ended December 31,
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
15,318 |
|
$ |
25,232 |
|
$ |
961 |
|
|
|
|
$ |
41,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss) |
|
|
3,778 |
|
|
5,441 |
|
|
(159 |
) |
|
- |
|
|
9,060 |
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
operating expenses |
|
|
2,535 |
|
|
3,450 |
|
|
425 |
|
|
- |
|
|
6,410 |
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
operating expenses* |
|
|
|
|
- |
|
|
- |
|
|
|
|
|
721 |
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from operations |
|
$ |
1,243 |
|
$ |
1,991 |
|
$ |
(584 |
) |
|
- |
|
|
1,929 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial
expenses and tax on income |
|
|
|
|
|
|
|
|
|
|
(653 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
|
|
|
|
|
|
$ |
1,276 |
|
|
|
RFID |
|
Supply ChainSolutions |
|
IntelligentRobotics |
|
Intercompany |
|
Consolidated |
|
|
|
|
|
Year ended December
31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
13,192 |
|
$ |
19,008 |
|
$ |
1,576 |
|
|
$ |
(142) |
|
$ |
33,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
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 tax on income |
|
|
|
|
|
|
|
|
|
|
|
(66 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
$ |
451 |
|
SEGMENT INFORMATION (U.S.
dollars in thousands)
|
|
RFID |
|
Supply ChainSolutions |
|
IntelligentRobotics |
|
Intercompany |
|
Consolidated |
|
|
|
|
|
Three months ended December
31,2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
4,273 |
|
$ |
6,789 |
|
$ |
266 |
|
|
|
|
$ |
11,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
1,187 |
|
|
1,560 |
|
|
(157 |
) |
|
- |
|
|
2,590 |
|
|
|
|
|
|
|
|
|
|
|
|
Allocated operating expenses |
|
|
645 |
|
|
1,014 |
|
|
78 |
|
|
- |
|
|
1,737 |
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated operating expenses* |
|
|
|
|
- |
|
|
|
- |
|
|
|
|
201 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
$ |
542 |
|
$ |
546 |
|
$ |
(235 |
) |
|
- |
|
|
652 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses and tax on income |
|
|
|
|
|
|
|
|
|
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
$ |
531 |
|
|
|
RFID |
|
Supply ChainSolutions |
|
IntelligentRobotics |
|
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 expenses and tax on income |
|
|
|
|
|
|
|
|
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
$ |
100 |
|
*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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