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B.O.S. Better Online Solutions Reports Financial Results for the Third Quarter of 2015

RISHON LEZION, Israel, Nov. 30, 2015 (GLOBE NEWSWIRE) -- B.O.S. Better Online Solutions Ltd. (the "Company", "BOS") (Nasdaq:BOSC), a leading Israeli provider of RFID and Supply Chain solutions to global enterprises, today reported its financial results for the third quarter of 2015.

On a GAAP basis, the net profit for the third quarter of 2015 and for the first nine months of 2015 was $115,000 and $120,000, respectively compared to a net profit of $8,000 and a net loss of $60,000 in the comparable periods last year.

On a non GAAP basis, the net profit for the third quarter of 2015 and for the first nine months of 2015 was $150,000 and $266,000, respectively compared to a net profit of $105,000 and $236,000 in the comparable periods last year.

Revenues for the first nine months of 2015 amounted to $18.2 million, as compared to revenues of $20.9 million in the comparable period of last year. However, lower operational and financial expenses turned a net loss of $60,000 in the first nine months of 2014 into a net profit of $120,000 in the first nine months of 2015.

Avidan Zelicovski, BOS' President, stated: "We are encouraged by a second consecutive quarter with net profit, and I am confident that we will meet our target for net profit in year 2015."

Eyal Cohen, BOS' CFO, stated: “Our financial position as of the end of September 2015 has improved as compared to the end of December 2014. Loans, net of cash and deposits, reduced from $3.1 million on December 31, 2014 to $2.4 million on September 30, 2015; working capital increased to $1.3 million on September 30, 2015 from $634,000 on December 31, 2014, and shareholders equity amounted to $6 million."

Yuval Viner, BOS' CEO, stated: "BOS is now well positioned to explore growth opportunities. Today we announced the signing of the definitive agreement for the acquisition of the business operations of iDnext Ltd. and its subsidiary Next-Line Ltd. We are now working extensively towards consummation of the transaction, which is expected in January 2016."

BOS will host a conference call on Tuesday, December 1, 2015 at 10a.m. EST - 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 script 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 Israeli provider of RFID and Supply Chain solutions to 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 the risk that the iDnext acquisition may not be consummated; 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
Nine months ended
September 30,
Three months ended
September 30,
2015 2014 2015 2014
(Unaudited) (Unaudited)
Revenues $18,223 $ 20,923 $ 6,295 $ 6,791
Cost of revenues 14,617 16,881 5,049 5,436
Gross profit 3,606 4,042 1,246 1,355
Operating costs and expenses:
Sales and marketing 2,053 2,329 683 727
General and administrative 1,134 1,350 371 464
Total operating costs and expenses 3,187 3,679 1,054 1,191
Operating profit 419 363 192 164
Financial expenses and others, net (290) (383) (69) (123)
Other expenses, net - (1) - -
Profit or (loss) before taxes on income 129 (21) 123 41
Taxes on income 9 39 8 33
Net Profit or (loss) $120 $(60) $115 $8
Basic and diluted net profit (loss) per share $0.06 $(0.04) $0.06 $0.01
Weighted average number of shares used in computing basic and diluted net profit (loss) per share 1,929 1,368 2,080 1,492


CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except per share amounts)
September 30, 2015December 31, 2014
(Unaudited)(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents$1,270 $1,522
Restricted bank deposits 322 216
Trade receivables 6,234 6,144
Other accounts receivable and prepaid expenses 609 490
Inventories 2,921 2,843
Total current assets 11,356 11,215
LONG-TERM ASSETS:
Restricted Bank deposit 257 263
Other assets 40 35
Total long-term assets 297 298
PROPERTY, PLANT AND EQUIPMENT, NET 508 556
OTHER INTANGIBLE ASSETS, NET 23 70
GOODWILL 4,122 4,122
$16,306 $16,261


CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
September 30, 2015 December 31, 2014
(Unaudited) (Audited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term loans $3,973 $4,297
Current maturities of long term loans 296 570
Trade payables 4,461 4,468
Employees and payroll accruals 361 389
Deferred revenues 738 621
Accrued expenses and other liabilities 234 236
Total current liabilities 10,063 10,581
LONG-TERM LIABILITIES:
Long-term loans, net of current maturities 19 190
Accrued severance pay 134 127
Deferred capital gain 47 66
Total long-term liabilities 200 383
SHAREHOLDERS' EQUITY 6,043 5,297
Total liabilities and shareholders' equity $16,306 $16,261


RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. dollars in thousands, except per share amounts)
Three months ended September 30,

2015

2014
GAAP
(as
reported)
AdjustmentsNon-
GAAP
Non-GAAP
Revenues$6,295 $- $6,295 $6,791
Gross profit 1,246 1,246 1,355
Operating costs and expenses:
Sales and marketing 683 (16)a 667 701
General and administrative 371 (19)b 352 393
Total operating costs and expenses 1,054 (35) 1,019 1,094
Operating profit 192 35 227 261
Financial expenses and others, net (69) - (69) (123)
Income before taxes on income 123 35 158 138
Taxes on income 8 - 8 33
Net Income$115 $35 $150 $105
Nine months ended September 30,
20152014
GAAP
(as
reported)
AdjustmentsNon-
GAAP
Non-GAAP
Revenues$18,223 $- $18,223 $20,923
Gross profit 3,606 3,606 4,042
Operating costs and expenses:
Sales and marketing 2,053 (48)a 2,005 2,250
General and administrative 1,134 (98)b 1,036 1,133
Total operating costs and expenses 3,187 (146) 3,041 3,383
Operating profit 419 146 565 659
Financial expenses and others, net (290) - (290) (383)
Other expenses, net - - - (1)
Income before taxes on income 129 146 275 275
Taxes on income 9 - 9 39
Net Income$120 $146 $266 $236
Notes to the reconciliation:
a - Amortization of intangible assets.
b - Stock based compensation.


CONDENSED CONSOLIDATED EBITDA
(U.S. dollars in thousands)
Nine months ended
September 30,
Three months ended
September 30,
2015 2014 2015 2014
(Unaudited) (Unaudited)
Operating Profit $419 $363 $192 $164
Add:
Amortization of intangible assets 48 79 16 26
Stock based compensation 98 217 19 71
Depreciation 106 129 36 38
EBITDA $671 $788 $263 $299


RFID and
Mobile
Solutions
Supply
Chain
Solutions
Intercompany Consolidated RFID and
Mobile
Solutions
Supply
Chain
Solutions
Intercompany Consolidated
Nine months ended September 30,
2015
Three months ended September 30,
2015
Revenues $6,513 $11,716 $(6) $18,223 $2,251 $4,045 $(1) $6,295
Gross profit $1,775 $1,831 $- $3,606 $649 $597 $- $1,246
RFID and
Mobile
Solutions
Supply
Chain
Solutions
Intercompany Consolidated RFID and
Mobile
Solutions
Supply
Chain
Solutions
Intercompany Consolidated
Nine months ended September 30,
2014
Three months ended September 30,
2014
Revenues $8,380 $12,570 $(27) $20,923 $2,870 $3,930 $(9) $6,791
Gross profit $2,200 $1,842 $- $4,042 $758 $597 $- $1,355


For more information: Eyal Cohen CFO +972-542525925

Source:B.O.S. Better Online Solutions Ltd.