Q3 2023 B.O.S. Better Online Solutions Ltd Earnings Call
Speaker 1: Ladies and gentlemen, thank you for standing by. Welcome to the BOS conference call. All participants are at present in listen only mode. As a reminder, this conference call is being recorded and will be available on the...
Ladies and gentlemen, thank you for standing by.
Welcome to the <unk> conference call.
All participants are at present in listen only mode.
As a reminder, this conference call is being recorded and will be available on the.
Okay.
POS website as of Tomorrow.
Speaker 1: Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward-looking statements for the respective companies' business, financial condition, and results of its operations are subject to risk and uncertainties, which could cause actual results to differ materially from those contemplated.
Before I turn the call over to Mr. Cohen, I would like to remind everyone that forward looking statements for the respective company's business financial condition and results of its operations are subject to risks and uncertainties, which could cause actual results to differ materially from those contemplated.
Speaker 1: Such foreign-looking statements include, but are not limited to product demand, pricing, market acceptance, changing economic conditions, risk and product and technology development, and the effect of the company's accounting policies, as well as certain other risk factors, which are detailed from time to time in the company's filings with the various securities authorities. I would now like to turn the call over to Mr. Iao Cohen, CEO . Mr. Cohen, please go ahead.
Such forward looking statements include but are not limited to product demand pricing market acceptance changing economic conditions risks and product and technology development and the effect of the Companys accounting policies as well as certain other risk factors, which are detailed from time to time in the companys filings with the various security.
These authorities.
I'd now like to turn the call over to Mr. Eyal Cohen CEO. Mr. Cohen. Please go ahead.
Speaker 2: Thank you. Thank you for joining our call.
Thank you.
Thank you for joining our call.
On the call with me today is Jim Kennedy.
Speaker 2: On the corner of mid to day, Zibdakalin, the remote site, chairman, and Moshaya Delta, see you call.
Oxide chairman.
After the call.
We are excited to meet you again to our quarterly.
Speaker 2: We are excited to meet you again at our quarterly video meeting.
Yeah.
During this call we will review our financial results business trends and the growth strategy.
And after luxury love a Q&A session.
Speaker 2: And after that we love a QMA here fish.
Alright.
Okay.
Speaker 2: So, the financial results for the first nine months of the year of year 23 showed that
So the financial results for the first nine months.
The year of <unk> trade show.
Significant improvement compared to the comparable nine months for year 'twenty two.
Revenues grew by 11% EBITDA by 60%.
And net income by 128% in bps.
Almost all of it.
On May three years' perspective, our trailing 12 months as revenues grew by 38%.
To $44 $6 million compared to $32 $2 million a year a tricky one.
Our trailing 12 months.
EBITDA increased by 312% to treatment <unk>.
Compared to $8 million in the year through QR.
Our trailing 12 months net income amounted to $2 $12 billion.
Compared to often the encore in year.
During Q1.
Our trailing 12 months earnings.
<unk> amounted to 37%.
Two nine only for Q1.
Yeah.
Our balance sheet.
Has significantly trends with those shares.
Our shareholders' equity increased from $43 million in December 'twenty one.
To $18 4 million Golar September 23.
Our bank loans remained roughly the same around $2 million.
And currently.
Most of it attributed to a long term.
No.
Underlying the real estate that we acquired for our internal use.
Our work in capital.
Terrific tree amounted to $10 2 million Golar.
And we believe that.
Got it is sufficient for our ongoing operations.
Business trends.
Our supply chain division faced intense demands from there these were the defense market.
And those demands are attributed to the military across Europe.
The middle East.
Our robotics division the shoulder.
Consecutive improvement year over year, and rich breakeven point in the last two quarters.
Inhibition.
This division is transitioning tour the Israeli defense market currently.
Most of our projects in process or for the defense segment reviews.
Our RFID location.
Has faced the decrease in revenues during the first nine months of the year compared to the first nine months or so per year 'twenty two.
In the past several years in terms of investment New Logistics Center in Israel has positively affected the RFID division was the financial results.
However, this trend was adversely affected during the year are transitory.
By a sharp increase in the interest rate.
By the political tension. Another line. These are the governments attempt to pursue extensive 12 disease really drifted cuddly.
Great.
On October seven the tree.
It all started with between these rather on the cole organization.
Organization Havas.
<unk>.
The war has not affected our work force production facilities.
<unk> been there has been no significantly drop shipping.
To our operation.
I'm very proud of our team that has come together to work through this situation.
Okay.
We operate through tree business Division.
<unk> Division the Robotics Division reach account for 70% of gross revenues during the first nine months of the year a.
Our significant exposure to these are the defense industry.
We therefore anticipate the growing demand for their products.
I'd services due.
Due to the current situation in Israel.
Now if I did division operates Menlo logistics center, a retail chains and the answer there.
Therefore, the ethos suffered from a slowdown in the sales forces.
This division might be entitled to compensation from the Israeli government.
Our customers and suppliers are resilient I'm experiencing walk in challenging times.
There are signs of getting back to routine.
Regarding the outlook our outlook for year 'twenty three.
During the first nine months of the year, we reached our target perspective.
Steve.
Because of the current external circumstances, we keep our outlook four year term to treat unchanged.
Which is revenues.
Over $40 million.
Net income above one way of asking it.
I want to turn the call to Mr. Victor.
Chairman, we will elaborate on our growth strategy.
Basic.
Okay.
Okay perfect.
Okay.
So we are in.
Yeah.
Technical problem here to permit from remote.
Sure.
So I would say.
Few words on the growth strategy.
Sure.
Okay.
Okay.
The growth we are facing due to implementation of various so creative changes and business development that the company is implementing.
Especially in mainly the.
The strengthening our competitiveness by adding more brands to our existing offering.
And developing a new markets by expanding our offering with complementary technologies.
I'd merger or acquisition, both at both of them not being.
They are fully reflected in the <unk>, but they will gradually yield.
Gross.
So at this stage jetson menu really.
And we will take.
Question.
And just to wallet.
And.
Okay. So at this time, we'll start the Q&A session on the issue I have a question. Please on mute, 10% yourselves why in all of our participants remain mute.
Thank you.
If you have a problem to connect you can use with Chet.
Hi can you hear me.
Yes, we hear you.
Okay I just had a question I know in the past you've had several contracts.
With Israeli Defense force regarding your supply chain Division.
Obviously, the IDF has been using a lot of.
Products and equipment, what is the standard lead time between them using.
Some of the components and equipment you provide them.
Between them, giving you another order.
Okay.
It's a good question.
Additionally, the normal lead time, it could be a few minuses.
But I think they are not waiting to the last minute.
Do we feel.
These days.
Sure.
Barrington daily their orders to the supply chain Division.
A lot of bids.
And the.
Because we are the <unk> issue with other logistic issues are behind us a tank.
There are no is the lead time.
Shorter than we used than we had in previous years. So it could be another off track.
Amongst our too in the normal cases of course, there can be.
Okay.
Outstanding cases, but this is enrollment.
Okay, and do you anticipate announcing any significant orders that are received.
As you can see we are selling like $44 million a year.
So we can assume that we are getting significant orders from time to time.
Okay.
Okay.
Actually we Don to use to a naloxone.
Each significant order that we get the necessary something dramatic.
Game changer in that order for example, New company, then new Sigma Nu.
New client otherwise its ongoing orders.
Okay and regarding the slowdown in the RFID division and possible compensation from Israeli government.
When do we expect to hear more on that.
Laws.
Litigation.
Through.
To be passed to approve maybe stimulus or boost the companies affected.
Can you give us some more color on that.
Yes.
First as I mentioned October was a tough months.
Back in November we are getting back to the timelines where before the war.
Even the the unit.
Okay.
Fostering retail stores to return to work and further boost so all of the mall.
Back to normal and it's a good indication for the Israeli economy.
99.
97%.
Of the market.
Operator, the market come back to I tunes.
Enrollment.
Hey, there.
Relation regarding the compensation were announced.
And we are checking the implementation.
The implementation of our case.
I don't think it will be a huge amount of about two years back as much as the.
We are allowed.
Okay that helps and finally historically the fourth quarter has always been your strongest quarter.
And I know you had already reached your net income.
Some guidance given for the year.
Given the fact that you're not willing to boost that are you anticipating any problems in Q4 or are you expecting.
Another strong quarter.
Given that the fourth quarter is normally the.
The quarter that has the most revenues and earnings per share.
Yes.
The fourth quarter, usually is the.
Strongest quarter of the year.
And also the first quarter of the year.
We have not changed.
<unk>.
The outlook for now being re keep it on the $1 5 million Golar.
Because of the current circumstances.
In Israel.
So I think.
It's about it.
I think this is the best way to.
Keith.
The outlook.
No.
In the current circumstances.
But from a legal point of aspect.
It's not it's not smart to do.
Okay. That's all for me I appreciate your time in taking my questions.
Thank you.
Okay.
Okay.
And if all of your questions.
If you have a problem to connect to the Algeria can use the chat.
<unk>.
Let's wait another few seconds.
Okay.
Right.
Okay.
Okay.
Sure.
The whole a reversal.
Thank you for being with us today.
Looking forward would be.
Two meeting you again on <unk> fourth quarter call, which will be on March 24.
On that call. We will also provide our outlook for <unk> 'twenty 'twenty four thank you.
Good luck.
Goodbye.