BOS Reports First Quarter of the Year 2021 Financial Results

RISHON LE ZION, Israel, May 27, 2021 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the first quarter of the year 2021.

Revenues for the first quarter of 2021 were $7.3 million compared to $7.5 million in the comparable quarter last year. The decrease in revenues was attributed mostly to the RFID division, and reflects the adverse effects of the COVID-19 pandemic. We expect to make up the shortfall in first-quarter revenues during the rest of 2021.

Operating profit for the first quarter increased to $234,000 compared to $110,000 in the comparable quarter last year. The increase is attributed to the improvement in the Robotics division operational results (see segment tables below).

Financial expenses in the first quarter of 2021 increased to $111,000 from $56,000 in the comparable quarter last year, due to the decrease in the exchange rate of the U.S. dollar to the Israeli Shekel.

Net income for the first quarter of 2021 was $123,000 or $0.02 per basic share compared to a net income of $54,000 or $0.01 per basic share in the first quarter of 2020.

Eyal Cohen, BOS's CEO stated: "I am encouraged by the continuing improvement in the operational results of the Robotics division that has positively affected the first quarter of the year 2021, as compared to the comparable quarter last year. We are working extensively to strengthen and develop the growth engines of our divisions, by expanding our product offerings, developing new solutions, and branching into new territories and segments. Regarding the year 2021, we reiterate our expectation for revenues in excess of $33 million and a net profit of above $1 million."

BOS will host a conference call on Friday, May 28, 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: [phone], International: [phone].

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
[phone] | [e-mail] 

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
		Three months ended										Year ended
		March 31,										December 31,
			2021				2020						2020
		(Unaudited)										(Audited)
Revenues		$	7,328			$	7,468					$	33,551
Cost of revenues			5,648				5,784						27,433
Gross profit			1,680				1,684						6,118
Operating costs and expenses:
Research and development			60				18						112
Sales and marketing			952				1,107						3,922
General and administrative			434				449						1,747
Impairment of Goodwill and intangible assets			-				-						988
Total operating costs and expenses			1,446				1,574						6,769
Operating Income (loss)			234				110						(651	)
Financial expenses, net			(111	)			(56			)			(348	)
Other income, net			-				-						39
Net income (loss)		$	123			$	54					$	(960	)
Basic and diluted net income (loss) per share		$	0.02			$	0.01					$	(0.22	)
Weighted average number of shares used in computing basic net income (loss) per share			5,157				4,258						4,298
Weighted average number of shares used in computing diluted net income (loss) per share			5,185				4,258						4,298

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
		March 31, 2021				December 31, 2020
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	1,662			$	1,036
Restricted bank deposits			136				140
Trade receivables			8,961				9,172
Other accounts receivable and prepaid expenses			1,173				1,311
Inventories			5,841				4,871
Total current assets			17,772				16,530
LONG-TERM ASSETS			62				59
PROPERTY AND EQUIPMENT, NET			949				956
OPERATING LEASE RIGHT-OF-USE ASSETS, NET			985				767
OTHER INTANGIBLE ASSETS, NET			35				40
GOODWILL			4,676				4,676
Total assets		$	24,479			$	23,028

CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands)
		March 31, 2021			December 31, 2020
		(Unaudited)			(Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long term loans		$	786		$	815
Operating lease liabilities, current			459			557
Trade payables			5,327			5,492
Employees and payroll accruals			805			985
Deferred revenues			739			601
Advances net of inventory in process			230			68
Accrued expenses and other liabilities			111			391
Total current liabilities			8,457			8,909
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities			984			1,216
Operating lease liabilities, non-current			652			367
Long term deferred revenues			197			303
Accrued severance pay			335			364
Total long-term liabilities			2,168			2,250
TOTAL SHAREHOLDERS' EQUITY			13,854			11,869
Total liabilities and shareholders' equity		$	24,479		$	23,028

CONDENSED CONSOLIDATED EBITDA (U.S. dollars in thousands)
		Three months ended  March 31,						Year ended December 31,
		2021			2020			2020
Operating income (loss)		$	234		$	110		$	(651	)
Add:
Impairment of Goodwill and other intangible assets			-			-			988
Amortization of intangible assets			5			26			40
Stock-based compensation			15			21			65
Depreciation			54			71			270
EBITDA		$	308		$	228		$	712

SEGMENT INFORMATION (U.S. dollars in thousands)
		RFID				Supply  Chain Solutions			Intelligent Robotics				Intercompany				Consolidated
		Three months ended March 31, 2021
Revenues		$	2,948			$	3,954		$	454			$	(28	)		$	7,328
Gross profit		$	848			$	648		$	184			$	-			$	1,680
Operating income (loss)		$	247			$	57		$	(70	)		$	-			$	234

		RFID			Supply  Chain Solutions			Intelligent Robotics				Intercompany				Consolidated
		Three months ended March 31,  2020
Revenues		$	3,305		$	4,081		$	104			$	(22	)		$	7,468
Gross profit (loss)		$	940		$	858		$	(114	)		$	-			$	1,684
Operating income (loss)		$	321		$	184		$	(395	)		$	-			$	110

		RFID				Supply Chain Solutions			Intelligent Robotics				Intercompany			Consolidated
		Year ended December 31, 2020
Revenues		$	12,455			$	18,594		$	2,502			$	-		$	33,551
Gross profit (loss)		$	3,265			$	3,724		$	(871	)		$	-		$	6,118
Impairment of goodwill and intangible assets			-						$	(988	)			-			(988	)
Operating income (loss)		$	941			$	1,130		$	(2,722	)		$	-		$	(651	)