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BOS Reports Second Quarter of the Year 2021 Financial Results

RISHON LE ZION, Israel, Aug. 31, 2021 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the second quarter of the year 2021.

Revenues for the second quarter of 2021 were $9.2 million compared to $7.5 million in the comparable quarter last year, a 23.4% growth.

Gross profit margin for the second quarter of 2021 was 17.3% compared to 11.7% in the comparable quarter last year.

Operating profit for the second quarter was $129,000 compared to an operating loss of $1.4 million in the comparable quarter last year.

Net income for the second quarter of 2021 was $141,000 or $0.03 per basic share compared to a net loss of $1.4 million or $0.34 per basic share in the comparable quarter last year.

Eyal Cohen, BOS's CEO stated: "While we still have significant business challenges to solve in the Robotic division, I am encouraged by the continuing improvement in our financial results. Regarding the year 2021 outlook, we reiterate our expectation for revenues over $33 million and a net profit of above $1 million."

BOS will host a conference call on Tuesday, August 31, 2021, 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 is a global provider of custom-made robots and an integrator of off-the-shelf automation systems for industrial and logistics processes. BOS also provides supply chain services, mainly for the aerospace and defense industries worldwide.

For more information, please visit our websites:

Corporate – www.boscom.com | Robotics – www.imdecol.com

RFID – www.dimex.co.il | Supply Chain – www.odem.co.il

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, failure to successfully integrate and achieve the potential benefits of the acquisition of the business operations of Imdecol Ltd. (the Robotics business line), 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

  

Six months ended
June 30,

 

Three months ended
June 30,

   

2021

   

2020

   

2021

 

2020

 
  

(Unaudited)

 

(Unaudited)

     

Revenues

 

$

16,557

  

$

14,946

  

$

9,229

  

$

   7,478

 

Cost of revenues

  

13,274

   

11,718

   

7,626

   

6,048

 

Inventory Impairment

  

-

   

671

   

-

   

552

 

Gross profit

  

3,283

   

2,557

   

1,603

   

878

 
         

Operating costs and expenses:

        

Research and development

  

114

   

21

   

54

   

3

 

Sales and marketing

  

1,929

   

1,953

   

977

   

846

 

General and administrative

  

877

   

843

   

443

   

394

 

Impairment of Goodwill and intangible assets

  

-

   

988

   

-

   

988

 

Total operating costs and expenses

  

2,920

   

3,805

   

1,474

   

2,231

 
         

Operating income (loss)

  

363

   

(1,248

)

  

129

   

(1,353

)

Financial income (expenses), net

  

(98

)

  

(137

)

  

13

   

(81

)

Income before taxes on income (loss)

  

265

   

(1,385

)

  

142

   

(1,434

)

Taxes on income

  

(1

)

  

-

 

  

 

(1

)

  

-

 

Net income (loss)

 

$

          264

  

$

      (1,385

)

 

$

          141

  

$

(1,434

)

         

Basic and diluted net income (loss) per share

 

$

       0.05

  

$

    (0.32

)

 

$

0.03

  

$

(0.34

)

Weighted average number of shares used in computing basic net income per share

  

                  5,188

   

4,265

   

             5,219

  

4,273

 

Weighted average number of shares used in computing diluted net income per share

  

                  5,216

   

4,265

   

             5,252

  

4,273

 
         

Number of outstanding shares as of June 30, 2021 and 2020

  

   5,224

   

4,318

   

    5,224

  

4,318

 


  


   


   


  


 

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

 

June 30, 2021


December 31, 2020

 

(Unaudited)


(Audited)

ASSETS

     
      

CURRENT ASSETS:

     

Cash and cash equivalents

$

        1,929

 

$

        1,036

Restricted bank deposits

 

139

  

140

Trade receivables

 

10,020

  

9,172

Other accounts receivable and prepaid expenses

 

1,089

  

1,311

Inventories

 

4,816

  

4,871

    

Total current assets

 

17,993

  

16,530

    

LONG-TERM ASSETS

 

26

  

59

    

PROPERTY AND EQUIPMENT, NET

 

1,091

  

956

    

OPERATING LEASE RIGHT-OF-USE ASSETS, NET

 

987

  

767

    

OTHER INTANGIBLE ASSETS, NET

 

30

  

40

    

GOODWILL

 

4,676

  

4,676

    

Total assets

$

24,803

 

$

23,028

      

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

  

June 30,
2021

 

December 31,
2020

  

(Unaudited)

 

(Audited)

     

LIABILITIES AND SHAREHOLDERS' EQUITY

    
     

CURRENT LIABILITIES:

    

Current maturities of long term loans

 

$

        835

 

$

815

Operating lease liabilities, current

  

480

  

557

Trade payables

  

5,453

  

5,492

Employees and payroll accruals

  

929

  

985

Deferred revenues

  

702

  

601

Advances net of inventory in process

  

202

  

68

Accrued expenses and other liabilities

  

89

  

391

     

Total current liabilities

  

8,690

  

8,909

     

LONG-TERM LIABILITIES:

    

Long-term loans, net of current maturities

  

903

  

1,216

Operating lease liabilities, non-current

  

636

  

367

Long term deferred revenues

  

180

  

303

Accrued severance pay

  

329

  

364

     

Total long-term liabilities

  

2,048

  

2,250

     
     

TOTAL SHAREHOLDERS' EQUITY

  

14,065

  

11,869

     
     

Total liabilities and shareholders' equity

 

$

24,803

 

$

23,028

       

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

  

Six months ended
June 30,

 

Three months ended
June 30,

  

2021

  

2020

  

2021

 

2020

         

Operating income (loss)

 

$

363

 

$

(1,248

)

 

$

129

 

$

(1,353

)

Add:

        

Impairment of Goodwill and other intangible assets

  

-

  

988

   

-

  

988

 

Amortization of intangible assets

  

10

  

32

   

5

  

6

 

Stock-based compensation

  

31

  

39

   

16

  

18

 

Depreciation

  

111

  

142

   

57

  

71

 

EBITDA

 

$

515

 

$

(47

)

 

$

         207

 

$

     (270

)


 



 




 



 




SEGMENT INFORMATION
(U.S. dollars in thousands)

 

RFID

 

Supply Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

 Six months ended June 30, 2021
          
          

Revenues

$

         6,322

 

$

        9,249

 

$

         1,036

  

$

         (50

)

 

$

        16,557

 
          
          

Gross profit

 

        1,553

  

        1,699

  

31

   

-

   

        3,283

 
          

Allocated operating expenses

 

        1,112

  

        1,148

  

         336

   

-

   

        2,596

 
          

Unallocated operating expenses*

 

-

  

-

  

-

     

        324

 
          

Income (loss) from operations

$

                441

 

$

                551

 

$

        (305

)


 

-

   

        363

 
          

Financial expenses and tax on income

         

(99

)

          

Net income

        

$

                264

 


 

RFID

 

Supply Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

 

Six months ended June 302020

          
          

Revenues

$

         5,712

 

$

        8,976

 

$

        301

  

$

         (43

)

 

$

        14,946

 
          
          

Gross profit (loss)

 

        1,467

  

        1,869

  

(779

)

  

-

   

        2,557

 
          
          

Allocated operating expenses

 

        1,006

  

        1,144

  

       329

   

-

   

        2,479

 
          

Impairment of goodwill and intangible assets

 

        -

  

        -

  

       988

   

-

   

        988

 
  

-

  

-

  

-

     

Unallocated operating expenses*

         

        338

 
          

Income (loss) from operations

$

                461

 

$

                725

 

$

                (2,096

)

  

-

   

        (1,248

)

          

Financial expenses and tax on income

        

          (137

)

         

Net loss

       

$

                (1,385

)

                  

SEGMENT INFORMATION
(U.S. dollars in thousands)

 

RFID

 

Supply Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

 

Three months ended June 302021

           
           

Revenues

$

         3,374

 

$

        5,295

 

$

        582

  

$

                   (22

)

 

$

        9,229

 
           
           

Gross profit (loss)

 

        706

  

        1,050

  

(153

)

  

-

   

        1,603

 
           

Allocated operating expenses

 

        567

  

        612

  

     138

   

-

   

        1,319

 
           

Unallocated operating expenses*

         

        155

 
  

-

  

-

  

-

      

Income (loss) from operations

$

                139

 

$

                438

 

$

                (291

)

  

-

   

        129

 
           

Financial income and tax on income

         

        12

 
           

Net income

        

$

                141

 


 

RFID

 

Supply Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

 

Three months ended June 302020

          
          

Revenues

$

         2,407

 

$

        4,895

 

$

        198

  

$

                   (22

)

 

$

        7,478

 
          
          

Gross profit (loss)

 

        534

  

        1,009

  

(665

)

  

-

   

        878

 
          

Allocated operating expenses

 

        454

  

        533

  

114

   

-

   

        1,101

 
          

Impairment of goodwill and intangible assets

 

        -

  

        -

  

     988

   

-

   

        988

 
          

Unallocated operating expenses*

         

        142

 
  

-

  

-

  

-

     

Income (loss) from operations

$

                80

 

$

                476

 

$

                (1,767

)

  

-

   

        (1,353

)

          

Financial expenses and tax on income

         

        (81

)

Net loss

        

$

                (1,434

)

                  

* 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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