- Reduction in General Administrative expenses by
$4.7 million , or 17% YoY - Reduction of thirty-four employees compared to
December 31 st, 2022. - Increased Cash Assets by
$300 Thousand . - Decrease in current liabilities by
$836 Thousand . - For the year ended
December 31, 2023 , no customer accounted for more than 10% of the Company’s revenues. For the year endedDecember 31, 2022 , one customer accounted for 30% of the Company’s revenues. - Losses reported are largely impacted by non-cash impairments*, our non-cash
Goodwill impairment expenses amounted to$14.7 million forDecember 31 st, 2023.
Fourth Quarter 2023 Financial Results
Net loss for the quarter was
Cash balance on
FY 2023 Financial Results
Net loss for the year ended
Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the year ended
Additional Q4 2023 and recent events:
- Multi-year contract for Israel’s largest logistics center.
- AI-machine vision ordered for
La Guardia , NY Stewart, and Newark Airports. - Addition of AI based in-car face detection.
- Acquisition of Codeblocks; a fintech company ensuring proprietary unique features.
- Fintech solution ordered for Israel’s largest fast-food chain.
- Self-Service Taxi kiosks ordered for
Ben-Gurion Airport to improve service, safety, and regulate pricing for travelers. - Fintech solution ordered for
U.S. -owned restaurant chain. - Contract to upgrade 450 sporting goods stores in the US.
- Recent purchase order from Nestle for logistic operations.
Shareholder update
The Company dealt with the challenge of the need to conduct cost cuts mainly attributable to the temporary weakness in the market conditions combined with the need to maintain and improve its position in the huge markets it is involved with to support future growth and profitability. So far, management has taken, and is still taking, aggressive measures reducing annual SG&A costs by
One challenge is that we are experiencing a working capital deficit of
To ensure we have sufficient working capital, in
“In navigating through the complex landscape shaped by global and market events, it has provided us with a valuable opportunity to reflect deeply on our core operations and values. It's like looking in a mirror, not to critique what we see with harshness, but to understand where our strengths lie and where we need to evolve. These insights are now guiding us toward making significant, forward-thinking changes. We are not just addressing the immediate issues at hand; we are laying down the foundation for a healthier, more robust future for our company. This period of transformation, though demanding, is an investment in our collective future, ensuring we emerge not just intact but stronger and more aligned with our mission than ever before.” –
OMNIQ Fourth Quarter 2023 Earnings Call Details
Participant Numbers: Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 102048
Participants will be greeted by an operator and asked for the access code. If a caller does not have the code, they can reference the company name. We have found that using access codes expedites entry into the call and suggest the code be distributed with the dial in numbers.
Teleconference Replay Number:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 50290
Webcast URL: https://www.webcaster4.com/Webcast/Page/2310/50290
About
The Company serves a broad spectrum of clients, including government agencies and esteemed Fortune 500 corporations across several industries—manufacturing, retail, healthcare, distribution, transportation, logistics, food and beverage, and the oil, gas, and chemical sectors. By adopting
For additional information, please visit www.OMNIQ.com.
Information about forward-looking statements
This press release includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, specifically under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements, which address expected future events, economic performance, and financial outcomes, are not historical facts but predictions based on current expectations and projections.
Such forward-looking statements, identifiable by terms like "anticipate," "expect," "may," "believe," and similar expressions, should not be seen as guarantees of future results. They are based on the information available at the time of making and reflect management's current expectations about future events. These statements are subject to various risks and uncertainties that could cause actual results to differ significantly from those projected or implied. Some of these risks include fluctuations in product demand, the introduction of new offerings, maintaining customer and strategic relationships, competitive pressures, market growth, financial liquidity, debt management, and the ability to integrate new acquisitions effectively.
Specific forward-looking statements in this release include expectations regarding financial strategies, revenue growth, and operational improvements. For a detailed discussion of risks and uncertainties that could affect
Contact Info:
IR@OMNIQ.com
* Impairment of
CONSOLIDATED BALANCE SHEETS
As of
(In thousands, except share and per share data) | 2023 | 2022 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 1,678 | $ | 1,311 | ||||
Accounts receivable, net | 18,654 | 23,893 | ||||||
Inventory | 6,028 | 8,726 | ||||||
Prepaid expenses | 969 | 1,268 | ||||||
Other current assets | 25 | 473 | ||||||
Total current assets | 27,354 | 35,671 | ||||||
Property and equipment, net of accumulated depreciation of | 1,066 | 1,086 | ||||||
1,788 | 16,542 | |||||||
Trade name, net of accumulated amortization of | 1,377 | 1,826 | ||||||
Customer relationships, net of accumulated amortization of | 3,777 | 4,967 | ||||||
Other intangibles, net of accumulated amortization of | 504 | 675 | ||||||
Right of use lease asset | 1,862 | 2,300 | ||||||
Other assets | 1,758 | 1,744 | ||||||
Total Assets | $ | 39,486 | $ | 64,811 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 56,741 | $ | 53,701 | ||||
Line of credit | 240 | 1,971 | ||||||
Accrued payroll and sales tax | 1,537 | 2,633 | ||||||
Notes payable, related parties – current portion | - | 293 | ||||||
Notes payable – current portion | 10,196 | 11,572 | ||||||
Lease liability – current portion | 885 | 942 | ||||||
Other current liabilities | 3,106 | 2,429 | ||||||
Total current liabilities | 72,705 | 73,541 | ||||||
Long term liabilities | ||||||||
Notes payable, related party, less current portion | - | 0 | ||||||
Accrued interest and accrued liabilities, related party | 73 | 72 | ||||||
Notes payable, less current portion | 265 | 55 | ||||||
Lease liability | 1,011 | 1,404 | ||||||
Other long term liabilities | 452 | 265 | ||||||
Total liabilities | 74,506 | 75,337 | ||||||
Stockholders’ equity (deficit) | ||||||||
Series A Preferred stock; | - | - | ||||||
Series B Preferred stock; | - | - | ||||||
Series C Preferred stock; | 1 | 1 | ||||||
Common stock; | 11 | 8 | ||||||
Additional paid-in capital | 78,339 | 73,714 | ||||||
Accumulated (deficit) | (113,923 | ) | (84,460 | ) | ||||
Accumulated other comprehensive income | 551 | 211 | ||||||
Total | (35,020 | ) | (10,526 | ) | ||||
Total liabilities and equity (deficit) | $ | 39,486 | $ | 64,811 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the Years Ended
(In thousands, except share and per share data) | 2023 | 2022 | ||||||
Revenues | $ | 81,193 | $ | 100,758 | ||||
Cost of goods sold | 65,485 | 78,654 | ||||||
Gross profit | 15,708 | 22,104 | ||||||
Operating expenses | ||||||||
Research & Development | 2,154 | 1,826 | ||||||
Selling, general and administrative | 22,960 | 27,707 | ||||||
Depreciation | 464 | 324 | ||||||
Amortization | 1,640 | 1,799 | ||||||
14,686 | - | |||||||
Total operating expenses | 41,904 | 31,656 | ||||||
Loss from operations | (26,196 | ) | (9,552 | ) | ||||
Other income (expenses): | ||||||||
Interest expense | (3,303 | ) | (3,496 | ) | ||||
Other (expenses) income | (1,145 | ) | (601 | ) | ||||
Total other expenses | (4,448 | ) | (4,097 | ) | ||||
Net Loss Before Income Taxes | (30,074 | ) | (13,649 | ) | ||||
Provision for Income Taxes | ||||||||
Current | 643 | 35 | ||||||
Total Provision for Income Taxes | 643 | 35 | ||||||
Net Loss | $ | (29,431 | ) | $ | (13,614 | ) | ||
Net income attributable to noncontrolling interest | - | 67 | ||||||
Net Loss attributable to | $ | (29,431 | ) | $ | (13,681 | ) | ||
Net Loss | $ | (29,431 | ) | $ | (13,614 | ) | ||
Foreign currency translation adjustment | 340 | 365 | ||||||
Comprehensive loss | $ | (29,091 | ) | $ | (13,249 | ) | ||
Reconciliation of net loss to net loss attributable to common shareholders | ||||||||
Net loss | $ | (29,431 | ) | $ | (13,614 | ) | ||
Less: Dividends attributable to non-common stockholders’ of | (32 | ) | (206 | ) | ||||
Net loss attributable to common stockholders’ of | $ | (29,463 | ) | $ | (13,820 | ) | ||
Net (loss) per share - basic attributable to common stockholders’ of | $ | (3.50 | ) | $ | (1.82 | ) | ||
Weighted average number of common shares outstanding - basic | 8,412,494 | 7,576,434 |
RECONCILIATION OF GAAP
MEASURES TO NON-GAAP MEASURES
The year ended | ||||||||
(In thousands) | ||||||||
Adjusted EBITDA Calculation | 2023 | 2022 | ||||||
Net loss | (29,431 | ) | (13,614 | ) | ||||
Depreciation & amortization | 2,104 | 2,119 | ||||||
Interest expense | 3,303 | 3,496 | ||||||
Income taxes | (643 | ) | (35 | ) | ||||
Stock compensation | 1,955 | 3,323 | ||||||
14,686 | - | |||||||
Nonrecurring loss events | 619 | 1,786 | ||||||
Adjusted EBITDA | (7,407 | ) | (2,925 | ) | ||||
Total revenues, net | 81,193 | 100,758 | ||||||
Adjusted EBITDA as a % of total revenues, net | (9.12 | %) | (-2.9%) |
Source:
2024 GlobeNewswire, Inc., source