B.O.S. BETTER ONLINE SOLUTIONS LTD.

(BOSC)
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B O S Better Online : BOS Reports Financial Results for the Third Quarter and First Nine Months of the Year 2021 - Form 6-K

11/30/2021 | 02:51pm EDT

BOS Reports Financial Results for the Third Quarter and First Nine Months of the Year 2021

RISHON LE ZION, Israel, November 30, 2021 - BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported financial results for the third quarter and first nine months of the year 2021.

Eyal Cohen, BOS's CEO, stated: "We have made progress in the first nine months of the year 2021 as compared to the comparable period last year:

Revenues grew by 6%
Gross profit increased by 15%
Net income of $351,000 in the first nine months of the year 2021 as compared to a $1.2 million net loss in the comparable period last year
A fifth consecutive profitable quarter.

The Robotics division's operating loss has decreased significantly, to $489,000 in the first nine months of 2021 from $2.4 million in the comparable period last year. However, the Robotics division did not yet reach the breakeven point as previously projected. We expect the Robotics division to breakeven in the year 2022. We believe in the long-term growth potential of our Robotics division because of the increasing shortage in manpower for industrial and logistic processes.

The devaluation of the US dollar against the NIS in the first nine months of 2021 yielded an increase in our operating expenses by approximately $170,000 as compared to the comparable period last year."

Avidan Zelicovsky, BOS's President, stated: "The global shortage in commodities has presented an opportunity for our Supply Chain division. We have launched a new service for our electronic industry clients that significantly shortens the lead time for the electronic components. This service has been a growth engine of this division in the first nine months of 2021".

Eyal Cohen, BOS's CEO, added:" In view of the third quarter results, we have revised our outlook for the year 2021 in respect of our net income, to be between $400,000 and $600,000 instead of $1,000,000. Our outlook for the year 2021 revenues has not been changed and remains $33 million. We will announce our outlook for the year 2022 during the first quarter of the year 2022".

BOS will host a conference call on Tuesday, November 30, 2021, at 9:00 a.m. EST, 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 the 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, 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.

2

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands

Nine months ended
September 30,
Three months ended
September 30,
2021 2020 2021 2020
(Unaudited) (Unaudited)
Revenues $ 24,555 $ 23,125 $ 7,998 $ 8,179
Cost of revenues 19,697 18,153 6,423 6,435
Inventory Impairment - 752 - 81
Gross profit 4,858 4,220 1,575 1,663
Operating costs and expenses:
Research and development 154 71 40 50
Sales and marketing 2,902 2,933 973 978
General and administrative 1,343 1,251 466 408
Impairment of Goodwill and intangible assets - 988 - -
Total operating costs and expenses 4,399 5,243 1,479 1,436
Operating income (loss) 459 (1,023 ) 96 227
Financial income (expenses), net (107 ) (235 ) (9 ) (98 )
Other income, net - 50 - 50
Income before taxes on income (loss) 352 (1,208) 87 179
Taxes on income (1 ) - - -
Net income (loss) $ 351 $ (1,208 ) $ 87 $ 179
Basic and diluted net income (loss) per share $ 0.07 $ (0.28 ) $ 0.02 $ 0.04
Weighted average number of shares used in computing basic net income per share 5,201 4,284 5,223 4,329
Weighted average number of shares used in computing diluted net income per share 5,421 4,284 5,613 4,339
Number of outstanding shares as of September 30, 2021 and 2020 5,237 4,321 5,237 4,321

3

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

September 30, 2021 December 31, 2020
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,002 $ 1,036
Restricted bank deposits 236 140
Trade receivables 8,846 9,172
Other accounts receivable and prepaid expenses 1,226 1,311
Inventories 5,149 4,871
Total current assets 17,459 16,530
LONG-TERM ASSETS 44 59
PROPERTY AND EQUIPMENT, NET 1,139 956
OPERATING LEASE RIGHT-OF-USE ASSETS, NET 992 767
OTHER INTANGIBLE ASSETS, NET 25 40
GOODWILL 4,676 4,676
Total assets $ 24,335 $ 23,028

4

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

September 30,

2021

December 31, 2020
(Unaudited) (Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans $ 825 $ 815
Operating lease liabilities, current 495 557
Trade payables 5,060 5,492
Employees and payroll accruals 769 985
Deferred revenues 742 601
Advances net of inventory in process 106 68
Accrued expenses and other liabilities 231 391
Total current liabilities 8,228 8,909
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities 756 1,216
Operating lease liabilities, non-current 628 367
Long term deferred revenues 190 303
Accrued severance pay 336 364
Total long-term liabilities 1,910 2,250
TOTAL SHAREHOLDERS' EQUITY 14,197 11,869
Total liabilities and shareholders' equity $ 24, 335 $ 23,028

5

CONDENSED CONSOLIDATED EBITDA

(U.S. dollars in thousands)

Nine months ended
September 30,
Three months ended
September 30,
2021 2020 2021 2020
Operating income (loss) $ 459 $ (1,023 ) $ 96 $ 227
Add:
Impairment of Goodwill and other intangible assets - 988 - -
Amortization of intangible assets 15 36 5 5
Stock-based compensation 44 57 13 18
Depreciation 175 208 64 66
EBITDA $ 693 $ 266 $ 178 $ 316

6

SEGMENT INFORMATION

(U.S. dollars in thousands)

RFID

Supply

Chain Solutions

Intelligent
Robotics
Intercompany Consolidated
Nine months ended September 30, 2021
Revenues $ 9,193 $ 14,168 1,340 $ (146 ) $ 24,555
Gross profit 2,212 2,683 (37 ) - 4,858
Allocated operating expenses 1,641 1,788 452 - 3,881
Unallocated operating expenses* - - - 518
Income (loss) from operations $ 571 $ 895 $ (489 ) - 459
Financial expenses and tax on income (108 )
Net income $ 351
RFID

Supply

Chain Solutions

Intelligent
Robotics
Intercompany Consolidated
Nine months ended September 30, 2020
Revenues $ 8,976 $ 13,825 $ 367 $ (43 ) $ 23,125
Gross profit (loss) 2,223 2,882 (885 ) - 4,220
Allocated operating expenses 1,524 1,730 534 - 3,788
Impairment of goodwill and intangible assets - - 988 - 988
- - -
Unallocated operating expenses* 467
Income (loss) from operations $ 699 $ 1,152 $ (2,407 ) - (1,023 )
Financial expenses and tax on income (185 )
Net loss $ (1,208 )

7

SEGMENT INFORMATION

(U.S. dollars in thousands)

RFID

Supply

Chain Solutions

Intelligent
Robotics
Intercompany Consolidated
Three months ended September 30, 2021
Revenues $ 2,871 $ 4,919 $ 304 $ (96 ) $ 7,998
Gross profit (loss) 660 984 (69 ) - 1,575
Allocated operating expenses 529 640 116 - 1,285
Unallocated operating expenses* 194
- - -
Income (loss) from operations $ 131 $ 344 $ (185 ) - 96
Financial income and tax on income (9 )
Net income $ 87
RFID

Supply

Chain Solutions

Intelligent
Robotics
Intercompany Consolidated
Three months ended September 30, 2020
Revenues $ 3,264 $ 4,849 $ 66 $ - $ 8,179
Gross profit (loss) 749 1,013 (99 ) - 1,663
Allocated operating expenses 518 586 205 - 1,309
Impairment of goodwill and intangible assets - - - - -
Unallocated operating expenses* 127
- - -
Income (loss) from operations $ 238 $ 427 $ (311 ) - 227
Financial expenses and tax on income (48 )
Net loss $ 179
* 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.

8

Disclaimer

BOS - Better Online Solutions Ltd. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 19:50:05 UTC.


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Financials (USD)
Sales
Net income
Net Debt
P/E ratio
Yield
Capitalization 12,4 M 12,4 M -
EV / Sales -1
EV / Sales 0
Nbr of Employees -
Free-Float 79,3%
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Eyal Cohen Chief Executive Officer & Director
Avidan Zelicovsky President
Moshe Zeltzer Chief Financial Officer
Ziv Dekel Chairman
Danny Lavi Vice President-Operation
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