B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q3 2023 Earnings Call Transcript

B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC) Q3 2023 Earnings Call Transcript November 30, 2023

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the B.O.S. Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded and will be available on the B.O.S. website as of tomorrow. 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. 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 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. Eyal Cohen, CEO. Mr. Cohen, please go ahead.

Eyal Cohen: Thank you. Thank you for joining our call. On the call with me today is Ziv Dekel in the remote site, Chairman; and Moshe Zelter, CFO. We are excited to meet you again at our quarterly video meeting. During this call, we will review our financial results, business trends and the growth strategy. And after that, we will have Q&A session. So the financial results for the first 9 months of the year '23 showed significant improvement compared to the comparable 9 months of the year '22. Revenues grew by 11%, EBITDA by 60% and net income by 128% and the EPS that was doubled. From a 3 years perspective, our trailing 12 months' revenues grew by 38% to $44.6 million compared to $32.2 million in year '21. Our trailing 12 months' EBITDA increased by 312% to $3.3 million compared to $0.8 million in the year '21.

A ceramics artist crafting a wearable medical robotics to aid in daily living.

Our trailing 12 months as a net income amounted to $2.1 million compared to $0.5 million in year '21. Our trailing 12 months earnings per share amounted to $0.37 compared to $0.09 only in the year '21. Our balance sheet has significantly strengthened over those years. Our shareholders' equity increased from $14.3 million in December '21 to $18.4 million in September '23. Our bank loans remain roughly the same, around $2 million. And currently, most of it attributed to a long-term loan underlying the real estate that we acquired for our [terminals]. Our working capital as of September '23 amounted to $10.2 million, and we believe that it is sufficient for our ongoing operations. Business trends. Our Supply Chain division faced intense demand from the Israeli defense market.

And those demands are attributed to the military conflict in Europe and the Middle East. Our Robotic division has shown consecutive improvements year-by-year and reached a breakeven point in the last 2 quarters. In addition, this division is in transition towards the Israeli defense market currently, and most of our projects in process are for the defense segment in Israel. Our RFID division has faced a decrease in revenues in the first 9 months of the year compared to the first 9 months of year '22. In the past several years, intense investments in new logistics centers in Israel have positively affected the RFID division's financial results. However, this trend was adversely affected during year '23 by sharp increase in the interest rate and by the political tension underlining the Israeli government's attempt to pursue extensive reform to Israeli judicial system.

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