B.O.S. Announces Financial Results for the First Quarter of 2014 3rd Consecutive Profitable Quarter RISHON LEZION, Israel, May 28, 2014 (GLOBE NEWSWIRE) -- B.O.S. Better Online Solutions Ltd. (the "Company", "BOS") (Nasdaq:BOSC), Israeli provider of RFID and supply chain solutions to global enterprises, today reported its financial results for the first quarter of 2014. Highlights: *Growth in revenues by 22% to $7.2 million from $5.9 million in the first quarter of year 2013. *Gross profit increased by 36% to $1.4 million from $1 million in the first quarter of year 2013. *Net profit on a NON GAAP basis amounted to $115,000, as compared to a net loss of $106,000 in the first quarter of year 2013. *EBITDA increased by 300% to $327,000 from $81,000 in the first quarter of year 2013. Edouard Cukierman, Chairman of the Board, stated, "We are very pleased with these results, which reflect a continuing improvement in the Company's performance and financial position. We expect these positive trends to continue". Yuval Viner, BOS CEO, stated: "We are satisfied with the positive bottom line for the third consecutive quarter. We are working to expand our solution offerings and are confident that we will meet our challenges". Conference Call BOS will host a conference call on Thursday, May 29, 2014 at 10 a.m. EDT - 5:00 p.m. Israel Time. A question-and-answer session will follow management's presentation. Interested parties may participate in the conference call by dialing + 972-3-9180644, approximately five to ten minutes before the call start time. For those unable to listen to the live call, a recording of the call will be available the next day after the call on BOS's website, at: http://www.boscorporate.com About BOS B.O.S. Better Online Solutions Ltd. (BOSC) is a leading provider of RFID and Supply Chain solutions to global enterprises. BOS' RFID and mobile division offers both turnkey integration services as well as stand-alone products, including best-of-breed RFID and AIDC hardware and communications equipment, BOS middleware and industry-specific software applications. The Company's supply chain division provides electronic components consolidation services to the aerospace, defense, medical and telecommunications industries as well as to enterprise customers worldwide. For more information, please visit: www.boscorporate.com. Use of Non-GAAP Financial Information BOS reports financial results in accordance with U.S. 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, 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 and continued availability of financing for working capital purposes and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS's periodic reports and registration statements filed with the U.S. Securities 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, except per share data Three months ended Year ended March 31, December 31, 2014 2013 2013 (Unaudited) (Audited) Revenues $7,241 $5,930 $25,903 Cost of revenues 5,829 4,896 20,872 Gross profit 1,412 1,034 5,031 Operating costs and expenses: Sales and marketing 807 677 2,924 General and administrative 425 419 1,523 Total operating costs and expenses 1,232 1,096 4,447 Operating profit (loss) 180 (62) 584 Financial expenses, net (153) (141) (549) Other expenses, net -- -- (22) Profit (loss) before taxes on income 27 (203) 13 Taxes on income (10) -- (13) Netprofit (loss) 17 $(203) -- Basic and diluted net loss per share $0.01 $(0.18) $-- Weighted average number of shares used in computing basic net earnings (loss) per 1,291,434 1,152,926 1,171,657 share Weighted average number of shares used in computing diluted net earnings (loss) per 1,306,806 1,152,926 1,171,657 share CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands, except per share amounts) March 31, December 31, 2014 2013 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $713 $1,005 Trade receivables 8,731 8,137 Other accounts receivable and prepaid expenses 675 819 Inventories 3,656 3,718 Total current assets 13,775 13,679 LONG-TERM ASSETS: Severance pay fund 3 26 Bank deposit 484 486 Other assets 39 9 Total long-term assets 526 521 PROPERTY, PLANT AND EQUIPMENT, NET 658 689 OTHER INTANGIBLE ASSETS, NET 149 176 GOODWILL 4,122 4,122 $19,230 $19,187 CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands, except share and per share data) March 31, December 31, 2014 2013 (Unaudited) (Audited) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term loans $5,418 $5,426 Current maturities of long term loans 897 926 Trade payables 6,179 6,232 Employees and payroll accruals 445 433 Deferred revenues 823 639 Accrued expenses and other liabilities 536 523 Total current liabilities 14,298 14,179 LONG-TERM LIABILITIES: Long-term loans, net of current maturities 923 1,146 Accrued severance pay 116 159 Total long-term liabilities 1,039 1,305 SHAREHOLDERS' EQUITY 3,893 3,703 Total liabilities and shareholders' equity $19,230 $19,187 RECONCILIATION OF NON-GAAP FINANCIAL RESULTS CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (U.S. dollars in thousands, except per share amounts) Three months ended Year ended March 31, December 31, 2014 2013 2013 GAAP (as reported) Adjustments Non-GAAP Non-GAAP Non-GAAP Revenues $7,241 $ $7,241 $5,930 $25,903 Gross profit 1,412 1,412 1,034 5,031 Operating costs and expenses: Sales and marketing 807 (27)a 780 626 2,742 General and 425 (71)b 354 373 1,312 administrative Total operating costs 1,232 (98) 1,134 999 4,054 and expenses Operating profit 180 98 278 35 977 Financial expenses, (153) -- (153) (141) (549) net Income (loss) before 27 98 125 (106) 428 taxes on income Taxes on income (10) -- (10) -- (13) Net profit (loss) $17 $98 $115 ($106) $415 Notes to the reconciliation: a - Amortization of intangible assets. b - Stock based compensation. CONDENSED CONSOLIDATED EBITDA (U.S. dollars in thousands) Three months ended Year ended March 31, December 31, 2014 2013 2013 Operating Profit (loss) $180 $(62) $584 Add: Amortization of intangible assets 27 45 182 Stock based compensation 71 52 211 Depreciation 49 46 173 EBITDA $327 $81 $1,150 RFID and Supply RFID and Supply Mobile Chain Mobile Chain Solutions Solutions Intercompany Consolidated Solutions Solutions Intercompany Consolidated Three months ended March 31, Three months endedMarch 31, 2014 2013 Revenues $2,655 $4,601 $(15) $7,241 $2,281 $3,667 $(18) $5,930 Gross $784 $628 $-- $1,412 $607 $427 $-- $1,034 profit CONTACT: B.O.S. Better Online Solutions Ltd. Mr. Eyal Cohen, CFO +972-54-2525925 email@example.com
B.O.S. Announces Financial Results for the First Quarter of 2014
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