B.O.S. Better Online Solutions (BOSC) Q2 2024 earnings summary

Executive summary

• Operations span three divisions: Robotics (automation for inventory), RFID (inventory tracking), and Supply Chain (distribution of electronic components, mainly to defense and high-tech sectors).

• Robotics Division has transitioned to focus on the defense sector, with 90% of projects now defense-related.

• Net income reached $1.2 million for H1 2024 and $500,000 for Q2 2024, matching prior year levels despite lower revenues.

• Revenues for H1 2024 declined 16% year-over-year due to defense customers reducing inventory as component shortages eased.

• Q3 2024 shows a resurgence in demand, with $5.4 million in new orders for the Supply Chain division by mid-August.

Financial highlights

• Total assets: $32 million; equity: $20 million; cash net of loans: $1.4 million as of June 2024.

• Trailing 12 months (TTM) revenues: $40 million; 2024 revenue outlook: $46 million.

• H1 2024 revenues: $19.7 million, down from $23.5 million in H1 2023; Q2 2024 revenues: $8.4 million, down from $11.3 million in Q2 2023.

• H1 2024 EBITDA: $1.82 million; Q2 2024 EBITDA: $817,000; TTM EBITDA: $3 million.

• Book value per share: $2.2.

Outlook and guidance

• 2024 revenue outlook maintained at $46 million, with expectations for higher revenues in the second half of the year.

• 2024 net income expected to rise to $2.2 million from $2 million in 2023.

• Third quarter expected to be slightly stronger than the second, with significant order fulfillment planned for the fourth quarter.

• Growth in the Robotics Division anticipated as current projects mature; target of $4–5 million annual revenue in the near term.

• RFID Division expects growth to renew in 2025, driven by expanded offerings and anticipated economic recovery.