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BOS Reports Financial Results for the Fourth Quarter and Full Year 2024

1. BOSC's net income rose 14.7% to $2.3 million in 2024. 2. Revenues fell 9.7%, reflecting post-COVID adjustments. 3. The company expects 10% sales growth in 2025. 4. 35% backlog increase to $27 million indicates strong demand. 5. New independent directors bring relevant experience to BOSC.

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FAQ

Why Bullish?

BOSC's profit growth and optimistic forecast suggest resilience, despite revenue decline.

How important is it?

Financial performance and strategic direction are crucial for investor confidence in BOSC.

Why Long Term?

Projected sales growth can stabilize and potentially uplift stock price over time.

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Net Income Rises 14.7% Year-Over-Year on Increased Gross Margin, Efficient Operations Provides Initial 2025 Outlook for Further 10% Growth in Sales and Net Income RISHON LE ZION, Israel, March 31, 2025 (GLOBE NEWSWIRE) -- BOS Better Online Solutions Ltd. ("BOS" or the "Company") (NASDAQ: BOSC) reported its financial results for the fourth quarter and full year 2024. Year 2024 Financial Highlights: Revenues declined by 9.7% to $39.9 million from $44.2 million in 2023. Revenue results in 2023 benefitted from one-time post-COVID restocking activities at multiple customers.Gross profit margin increased to 23.3% compared to 20.8% in the preceding year, demonstrating improved operating efficiency.Operating profit decreased to $1.4 million from $2.5 million in 2023, due to $1.2 million non-cash impairment of goodwill and other intangible assets in 2024.EBITDA increased to $3.25 million compared to $3.06 million in 2023.Financial expenses decreased to $139,000 from $441,000 in the prior year.Non cash income from taxes amounted to $1 million in year 2024.Net income increased by 14.7% to $2.3 million, or $0.40 per basic share, compared to $2.0 million, or $0.35 per basic share, in the year 2023. Fourth Quarter 2024 Financial Highlights: Revenues declined by 4.6% to $10.4 million from $10.9 million in the fourth quarter of 2023.Gross profit margin increased to 22.9% compared to 19.2% in the comparable quarter last year.Operating loss amounted to $616,000 compared to an operating income of $400,000 in the fourth quarter of 2023, due to a $1.2 million non-cash impairment of goodwill and other intangible assets included in the results of the fourth quarter of 2024.EBITDA amounted to $715,000 compared to $562,000 in the fourth quarter of 2023.Financial income amounted to $99,000 compared to financial expenses of $31,000 in the fourth quarter of 2023.Non cash income from taxes in the amount of $1 million in the fourth quarter of 2024.Net income amounted to $485,000 or $0.08 per basic share compared to $427,000 or $0.07 per basic share in the fourth quarter of 2023. Eyal Cohen, BOS’ CEO, stated: “BOS improved profitability on an operating basis across all of our business units in 2024, leveraging our favorable sales mix and lean cost structure to increase gross margin to 23.3% and net income to $2.3 million. That momentum has carried into 2025 as we continue to scale the business, manage costs effectively and drive operating leverage. We are starting the year with a 35% increase in backlog, at $27 million as of December 31, 2024, compared to $20 million as of December 31, 2023, plus significant new defense customer orders announced in the first quarter to date. As a result, our 2025 outlook calls for a 10% year-over-year increase in both sales and net income to $44 million of revenues and $2.5 million of net income. “BOS’ growth strategy remains focused on deepening our penetration in the defense sector, where we have strong customer relationships at both the primary and subcontractor levels. We expect robust ordering patterns across the strategic defense industry to continue in 2025, and we are progressing our sales strategy to enter new overseas markets by leveraging our relationships with Israeli defense customers that operate globally. We also continue to seek accretive strategic opportunities where we can deploy our strong balance sheet to expand BOS’ capabilities and reach in the growing global defense market.” Board Updates On March 19, 2025, BOS announced the appointment of Osnat Gur, an independent director since 2021, as Board Chair and the appointment of Avi Dadon as a new independent director. Ms. Gur brings extensive management and leadership experience to BOS, having served as CEO of a global B2B marketing agency, an RFID technology company, and a dietary supplements manufacturer over the course of her career. She also serves as a board director in multiple Israeli companies. Mr. Dadon brings decades of experience in military leadership, defense procurement, supply chain management and logistics to BOS. He served as Head of Procurement for the Israeli Ministry of Defense from 2017 to 2023 and is a retired Colonel in the Israeli Defense Forces (IDF), with 28 years of military service. “We are excited to congratulate Osnat in her new role as Board Chair, and look forward to working with her to plan BOS’s next chapter of growth and earnings as we continue to execute our growth strategy,” said Cohen. “We also welcome Avi to the board and look forward to leveraging his decades of experience with the IDF and Ministry of Defense procurement to support BOS’s continued success.”  About BOS Better Online Solutions Ltd.BOS integrates cutting-edge technologies to streamline and enhance supply chain operations across three specialized divisions: Intelligent Robotics Division: Automates industrial and logistics inventory processes through advanced robotics technologies, improving efficiency and precision.RFID Division: Optimizes inventory management with state-of-the-art solutions for marking and tracking, ensuring real-time visibility and control.Supply Chain Division: Integrates franchised components directly into customer products, meeting their evolving needs for developing cutting-edge products. For additional information, contact:Matt Kreps, Managing Director Darrow Associates +1-214-597-8200 mkreps@darrowir.com 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, 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 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, including risks related to Israel’s conflicts with Hamas and other parties in the region.BOS undertakes no obligation to publicly update or revise any 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 OPERATIONSU.S. dollars in thousands     Year ended December 31, Three months ended December 31, 2024 2023  2024 2023 (Unaudited) (Audited)  (Unaudited)  (Audited)     Revenues$39,949  $44,179  $10,388  $10,886 Cost of revenues30,655  34,970  8,007  8,796 Gross profit9,294  9,209  2,381  2,090 Operating costs and expenses:           Research and development175  158  50  44 Sales and marketing4,394  4,891  1,118  1,278 General and administrative2,113  1,762  656  420 Other income, net-  (52)  -  (52) Impairment of intangible assets and Goodwill1,173  -  1,173  - Total operating costs and expenses7,855  6,759  2,997  1,690             Operating income (loss)1,439  2,450  (616)  400 Financial income (expenses), net(139)  (441)  99  31 Income before taxes on income1,300  2,009  (517)  431 Income taxes benefits (expenses)1,000  (4)  1,002  (4) Net income$2,300  $2,005  $485  $427             Basic net income per share$0.40  $0.35  $0.08  $0.07 Diluted net income per share$0.39  $0.34  $0.08  $0.07 Weighted average number of shares used in computing basic net income per share5,756  5,727  5,776  5,748 Weighted average number of shares used in computing diluted net income per share5,887  5,905  5,975  5,856            Number of outstanding shares as of December 31, 2024 and 20235,793  5,748  5,793  5,748  CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands)     December 31, 2024 December 31, 2023 (Unaudited) (Audited)ASSETS         CURRENT ASSETS:   Cash and cash equivalents$3,368  $2,344 Restricted bank deposits185  217 Trade receivables11,787  12,424 Other accounts receivable and prepaid expenses1,150  963 Inventories7,870  6,070       Total current assets24,360  22,018       LONG-TERM ASSETS177  196       PROPERTY AND EQUIPMENT, NET3,417  3,268       OPERATING LEASE RIGHT-OF-USE ASSETS, NET779  1,026       DEFERRED TAX ASSETS1,000  -       OTHER INTANGIBLE ASSETS, NET422  1,078       GOODWILL4,188  4,895       Total assets$34,343  $32,481  CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands)     December 31, 2024 December 31, 2023 (Unaudited) (Audited)                    LIABILITIES AND SHAREHOLDERS' EQUITY       CURRENT LIABILITIES:   Current maturities of long-term loans$439  $170 Operating lease liabilities, current 176   235 Trade payables 6,362   7,710 Employees and payroll accruals 1,087   980 Deferred revenues 2,003   600 Advances net of inventory in progress -   137 Accrued expenses and other liabilities 598   1,072     Total current liabilities 10,665   10,904     LONG-TERM LIABILITIES:   Long-term loans, net of current maturities 980   1,150 Operating lease liabilities, non-current 576   759 Long-term deferred revenues 293   339 Accrued severance pay 498   490     Total long-term liabilities 2,347   2,738         TOTAL SHAREHOLDERS' EQUITY 21,331   18,839         Total liabilities and shareholders' equity$34,343  $32,481  CONDENSED CONSOLIDATED EBITDA(U.S. dollars in thousands)     Year endedDecember 31, Three months endedDecember 31, 2024 2023 2024 2023        Operating income (loss)$1,439  $2,450  $(616) $400 Add:       Impairment of Goodwill and other intangible assets 1,173   -   1,173   - Amortization of intangible assets 190   168   47   48 Stock-based compensation 74   98   11   24 Depreciation 370   342   100   90 EBITDA$3,246  $3,058  $715  $562  SEGMENT INFORMATION(U.S. dollars in thousands)           RFID SupplyChain Solutions Intelligent Robotics Intercompany Consolidated Year ended December 31, 2024          Revenues$12,877 $25,829  1,410 (167) $39,949Cost of revenues 9,344  19,763  1,079 (167)  30,019Allowance for slow inventory -  636  - -  636Gross profit 3,533  5,430  331    9,294          Allocated operating expenses 2,273  3,338  274    5,885          Impairment of goodwill and intangible assets 984  189  -    1,173          Unallocated operating expenses*   -  -    797          Operating income$276 $1,903 $57    1,439          Financial expenses and income tax benefits         861          Net income        $2,300  RFID Supply ChainSolutions IntelligentRobotics Intercompany Consolidated Year ended December 31, 2023          Revenues$13,713 $28,845  1,742 (121) $44,179Cost of revenues10,534 22,830  1,557 (121) 34,800Allowance for slow inventory- 170 - - 170Gross profit3,179 5,845  185   9,209          Allocated operating expenses2,150 3,675  258   6,083          Unallocated operating expenses*  - -   676          Operating income (loss)$1,029 $2,170 $(73)   2,450          Financial expenses and tax on income        (445)          Net income        $2,005           *Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs. SEGMENT INFORMATION(U.S. dollars in thousands)           RFID  Supply Chain Solutions Intelligent Robotics Intercompany Consolidated    Three months ended December 31, 2024          Revenues$         3,445 $        6,806 $        171 (34) $        10,388Cost of revenues2,294 5,170 127 (34) 7,557Allowance for slow inventory- 450 - - 450Gross profit1,151 1,186 44 - 2,381          Allocated operating expenses605 883 84 - 1,572          Impairment of goodwill and intangible assets984 189 -   1,173          Unallocated operating expenses*        252          Operating income (loss)$        (438) $        114 $        (40)   (616)          Financial income and income tax benefits        1,101          Net income        $        485  RFID  Supply Chain Solutions Intelligent Robotics Intercompany Consolidated    Three months ended December 31, 2023          Revenues$         3,622 $        7,017 $        279 (32) $        10,886Cost of revenues2,897 5,797 171 (32) 8,833Allowance for slow inventory- (37) - - (37)Gross profit725 1,257 108 - 2,090          Allocated operating expenses513 974 72 - 1,559          Unallocated operating expenses*        131          Operating income$        212 $        283 $        36   400          Financial income and tax on income        27          Net income        $        427           *Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.

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