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47% growth in revenues

RISHON LE ZION, Israel, May 31, 2022 – BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) reported its financial results for the first quarter of the year 2022.

Revenues for the first quarter of 2022 increased by 47% to $10.8 million compared to $7.3 million in the comparable quarter of last year.

Operating income for the first quarter of 2022 increased by 98% to $465,000 compared to $234,000 in the comparable quarter of last year.

Net income for the first quarter of 2022 increased by 155% to $314,000 or $0.06 per basic share compared to a net income of $123,000 or $0.02 per basic share in the comparable quarter of 2021.

Eyal Cohen, BOS’s CEO stated: “I am encouraged by the strong opening of the first quarter of the year 2022. The globally increasing demand for electronic components and the military conflict in Europe were  catalysts for the growth of the Supply Chain division. In addition, the increase in the number of logistic centers in Israel and the return of the retail stores to work on a full scale supported the growth of the RFID division. Looking forward, I anticipate that the shortage of workers for production and the logistics operations will be a growth engine for our Intelligent Robotic division”. 

BOS will host a conference call on Tuesday, May 31, 2022 at 9:00 a.m. EDT – 4:00 p.m., Israel Time. A question-and-answer session will follow the 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) and of Dagesh Inventory Counting and Maintenance Ltd., 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
March 31,

 

Year ended
December 31,

  

2022

 

2021

 

2021

  

(Unaudited)

 

(Audited)

       

Revenues

 

              $10,789

 

            $7,328

 

              $33,634

Cost of revenues

 

8,537

 

5,648

 

27,048

Gross profit 

 

2,252

 

1,680

 

6,586

       

Operating costs and expenses:

      

    Research and development

 

51

 

60

 

208

    Sales and marketing 

 

1,150

 

952

 

3,955

    General and administrative 

 

527

 

434

 

1,906

  Acquisition expenses

 

59

 

 

Total operating costs and expenses

 

1,787

 

1,446

 

6,069

       

Operating Income 

 

465

 

234

 

517

Financial expenses, net

 

(151)

 

(111)

 

(105)

Income before taxes on income 

 

314

 

123

 

412

Taxes on income

 

 

 

39

Net income 

 

$                314

 

$               123

 

$              451

       

Basic net income per share

 

    $             0.06 

 

$          0.02

 

$             0.09

Diluted net income  per share

 

    $             0.06 

 

$          0.02

 

$            0.08

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

 

5,251

 

            5,157

 

                  5,212

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

 

            5,291

 

            5,185

 

                  5,424

Number of outstanding shares as of March 31, 2022 and 2021 and December 31, 2021

 

            5,251

 

        5,185

 

                  5,251

CONSOLIDATED BALANCE SHEETS

 (U.S. dollars in thousands)

  

  March 31, 2022

 

December 31, 2021

  

(Unaudited)

 

     (Audited)

ASSETS

    
     

CURRENT ASSETS:

    

Cash and cash equivalents 

 

$ 1,300

 

$    1,875

Restricted bank deposits 

 

239

 

                242

Trade receivables 

 

10,552

 

9,209

Other accounts receivable and prepaid expenses 

 

1,408

 

977

Inventories 

 

5,541

 

5,567

     

Total current assets

 

19,040

 

17,870

     

LONG-TERM ASSETS

 

135

 

150

     

PROPERTY AND EQUIPMENT, NET

 

1,073

 

1,097

     

OPERATING LEASE RIGHT-OF-USE ASSETS, NET

 

858

 

944

     

OTHER INTANGIBLE ASSETS, NET 

 

580

 

20

     

GOODWILL 

 

4,895

 

4,676

     

Total assets

 

      $ 26,581

 

$      24,757


CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

  

March 31, 2022

 

December 31, 2021

  

(Unaudited)

 

(Audited)

     

LIABILITIES AND SHAREHOLDERS’ EQUITY

    
     

CURRENT LIABILITIES:

    

Current maturities of long term loans

 

$ 670

 

$        740

Operating lease liabilities, current

 

475

 

538

Trade payables 

 

6,711

 

5,200

Employees and payroll accruals

 

1,118

 

996

Deferred revenues

 

455

 

917

Advances net of inventory in process

 

371

 

249

Accrued expenses and other liabilities 

 

333

 

112

     

Total current liabilities

 

10,133

 

8,752

     

LONG-TERM LIABILITIES:

    

Long-term loans, net of current maturities 

 

505

 

681

Operating lease liabilities, non-current

 

518

 

565

Long term deferred revenues

 

465

 

132

Accrued severance pay

 

273

 

280

     

Total long-term liabilities

 

1,761

 

1,658

     
     

TOTAL SHAREHOLDERS’ EQUITY

 

14,687

 

14,347

     
     

Total liabilities and shareholders’ equity

 

$   26,581

 

$ 24,757


CONDENSED CONSOLIDATED EBITDA

 (U.S. dollars in thousands)

  

Three months ended 

March 31,

 

Year ended December 31,

  

2022

 

2021

 

2021

 
       

Operating income 

 

                                                                                                                      $          465

 

                                                                                                                      $          234

 

$        517 

 

  Add:

      

Amortization of intangible assets 

 

14

 

5

 

20

 

Stock-based compensation

 

25

 

15

 

67

 

Depreciation

 

58

 

54

 

238

 

EBITDA

 

$        562

 

$        308

 

$    842

 
        

SEGMENT INFORMATION

(U.S. dollars in thousands)



  

RFID

 

Supply

Chain Solutions

 

Intelligent Robotics

 

Intercompany

 

Consolidated

 
    

Three months ended March 31,

2022

 
            
            

Revenues 

 

$ 4,103

 

$ 6,508

 

178

 

$

 

$ 10,789

 
            
            

Gross profit

 

1,031

 

1,244

 

        (23)

 

            –     

 

2,252

 
            

Allocated operating expenses

 

627

 

776

 

        141

 

            –     

 

1,544

 
            

Acquisition expenses

 

59

 

 

   

59

 
            

Unallocated operating expenses*

 

 

 

   

184

 
            

Income (loss) from operations

 

$ 345

 

$ 468

 

$ (164)

 

            –     

 

465

 
            

Financial expenses 

         

(151)

 
            

Net income

         

$ 314

 
            
            
            

 

  

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

 
            

Allocated operating expenses

 

545

 

535

 

        198

 

            –     

 

1,278

 
            

Unallocated operating expenses*

 

 

 

   

169

 
            

Income (loss) from operations

 

$ 303

 

$ 113

 

$ (14)

 

            –     

 

234

 
            

Financial expenses 

         

(111)

 
            

tax on income

           
            

Net income

         

$ 123

 
            
            
            

 

  

RFID

 

Supply

Chain Solutions

 

Intelligent Robotics

 

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 

         

(105)

 
            

tax on income

         

39

 
            

Net income

         

$ 451

 
            
            
            



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