Attached files
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| 8-K - CURRENT REPORT - BK Technologies Corp | bkti_8k.htm |
Exhibit 99.1
Company Contact:
BK Technologies, Inc.
William Kelly, EVP & CFO
(321) 984-1414
BK Technologies Reports Second Quarter and Six Months 2018
Results
-Six Months Sales Grow 40%; Operating Income Increases $2.3 Million
from Prior Year-
WEST
MELBOURNE, Florida – August 1, 2018 – BK Technologies,
Inc. (NYSE American: BKTI) today announced financial and operating
results for the second quarter and six months ended June 30,
2018.
For the
second quarter ended June 30, 2018, revenues increased 26.9% to
approximately $13.7 million, compared with approximately $10.8
million for the second quarter of 2017. Operating income for the
second quarter of 2018 increased 36.8% to approximately $1.3
million, compared with $973,000 for the second quarter last year.
Net income for the second quarter of 2018 was approximately
$947,000, or $0.07 per diluted share, compared with $1.3 million,
or $0.10 per diluted share, for the same quarter in
2017.
The
Company had approximately $23.4 million in working capital as of
June 30, 2018, of which $17.7 million was comprised of cash, cash
equivalents and trade receivables. This compares with working
capital of approximately $26.7 million as of December 31, 2017, of
which $12.7 million was comprised of cash, cash equivalents and
trade receivables. As of June 30, 2018, the Company had no
borrowings outstanding under its revolving credit
facility.
Tim
Vitou, BK’s President, commented, “Our operating
results for the second quarter and six months were encouraging,
featuring sales growth, improvement in gross profit margins and
strong operating income. State public safety agencies were the
primary driver for second quarter sales. They were complemented,
however, with solid demand from the federal market, including
legacy customers in the wildland fire suppression community. Gross
profit margins increased for the second consecutive quarter,
derived from manufacturing and quality improvement initiatives,
increased volumes and a more favorable mix of product sales. These
factors combined to turn last year’s operating loss into $2.1
million of operating income for the first half of this
year.
Mr.
Vitou continued, “We also realized improvement on the balance
sheet, reducing inventory by approximately $1.6 million and
generating $3.6 million in cash for the first six months of 2018,
which has funded accelerated investment in engineering and new
product development, leading toward the anticipated introduction of
a new line of leading-edge products later this year. The financial
and operating results also enabled us to continue our capital
return program, which has yielded nine consecutive quarterly
dividends and the repurchase of over 350,000 shares of our common
stock through June 30, 2018. Overall, the trend of key metrics for
our business and the market are promising.”
For the
six months ended June 30, 2018, sales increased 40.0% to
approximately $25.4 million compared with approximately $18.1
million for the same period last year. Operating income for the six
month period of 2018 increased to approximately $2.1 million,
compared with an operating loss of approximately $233,000 for the
same period last year. Net income for the six months ended June 30,
2018 totaled approximately $503,000, or $0.04 per basic and diluted
share, compared with $50,000, or $0.00 per basic and diluted share
for the same period last year.
The
financial results for the six months ended June 30, 2018 include a
loss on investment in securities totaling approximately $1.2
million, compared with a gain of approximately $617,000 for the six
month period last year.
Conference Call and Webcast
The
Company will host a conference call and webcast for investors at
9:00 a.m. Eastern Time, on Thursday, August 2, 2018. Shareholders
and other interested parties may participate in the conference call
by dialing 877-407-8031 (international/local participants dial
201-689-8031) and asking to be connected to the “BK
Technologies, Inc. Conference Call” a few minutes before 9:00
a.m. Eastern Time on August 2, 2018. The call will also be webcast
at http://www.bktechnologies.com.
Please allow extra time prior to the call to visit the site and
download any necessary software to listen to the Internet webcast.
An online archive of the webcast will be available on the
Company’s website for 30 days following the call at
http://www.bktechnologies.com.
A
replay of the conference call will be available one hour after the
completion of the call until August 12, 2018 by dialing
877-481-4010 PIN#34109 (international/local participants dial
919-882-2331 PIN#34109).
About BK Technologies
As an
American manufacturer for over 70 years, BK Technologies is deeply
rooted in the public safety communications industry, manufacturing
high-specification communications equipment of unsurpassed
reliability and value for use by public safety professionals and
government agencies. Advances include a broad new line of leading
digital two-way radios compliant with APCO Project 25
specifications. BK Technologies’ products are manufactured
and distributed worldwide under BK Radio and RELM brand names. The
Company maintains its headquarters in West Melbourne, Florida and
can be contacted through its web site at www.bktechnologies.com or
directly at 1-800-821-2900. The Company’s common stock trades
on the NYSE American market under the symbol
“BKTI”.
Forward-Looking Statements
This press release contains certain forward-looking statements that
are made pursuant to the “Safe Harbor” provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements concern the Company’s operations,
economic performance and financial condition and are based largely
on the Company’s beliefs and expectations. These statements
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of
the Company, or industry results, to be materially different from
any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors and risks
include, among others, the following: changes or advances in
technology; the success of our LMR product line; successful
introduction of new products and technologies; competition in the
land mobile radio industry; general economic and business
conditions, including federal, state and local government budget
deficits and spending limitations; the availability, terms and
deployment of capital; reliance on contract manufacturers and
suppliers; heavy reliance on sales to agencies of the U.S.
government; our ability to utilize deferred tax assets; retention
of executive officers and key personnel; our ability to manage our
growth; our ability to identify potential candidates for, and
consummate, acquisition or investment transactions, and risks
incumbent to being a minority stockholder in a corporation; impact
of our capital allocation strategy; government regulation; our
business with manufacturers located in other countries; our
inventory and debt levels; protection of our intellectual property
rights; fluctuation in our operating results; acts of war or
terrorism, natural disasters and other catastrophic events; any
infringement claims; data security breaches, cyber attacks and
other factors impacting our technology systems; availability of
adequate insurance coverage; maintenance of our NYSE American
listing; and the effect on our stock price and ability to raise
equity capital of future sales of shares of our common stock.
Certain of these factors and risks, as well as other risks and
uncertainties, are stated in more detail in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2017 and in the Company’s subsequent filings with the SEC.
These forward-looking statements are made as of the date of this
press release, and the Company assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
# #
#
(Financial Tables To Follow)
BK TECHNOLOGIES, INC.
Condensed Consolidated Statements of Income
(In
thousands, except share and per share data) (Unaudited)
|
|
Three Months
Ended
|
Six Months
Ended
|
||
|
|
June
30,
2018
|
June
30,
2017
|
June
30,
2018
|
June
30,
2017
|
|
|
|
|
|
|
|
Sales,
net
|
$13,656
|
$10,762
|
$25,402
|
$18,142
|
|
Expenses
|
|
|
|
|
|
Cost of
products
|
7,771
|
6,268
|
14,681
|
11,411
|
|
Selling, general
and administrative
|
4,554
|
3,521
|
8,644
|
6,964
|
|
Total
expenses
|
12,325
|
9,789
|
23,325
|
18,375
|
|
|
|
|
|
|
|
Operating income
(loss)
|
1,331
|
973
|
2,077
|
(233)
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
income
|
19
|
10
|
35
|
18
|
|
(Loss) gain on
investment in securities
|
(55)
|
617
|
(1,201)
|
617
|
|
Loss on disposal of
property, plant and equipment
|
—
|
—
|
—
|
(104)
|
|
Other
expense
|
(58)
|
(60)
|
(225)
|
(147)
|
|
Total other income
(expense)
|
(94)
|
567
|
(1,391)
|
384
|
|
|
|
|
|
|
|
Income before
income taxes
|
1,237
|
1,540
|
686
|
151
|
|
|
|
|
|
|
|
Income tax
expense
|
(290)
|
(222)
|
(183)
|
(101)
|
|
|
|
|
|
|
|
Net
income
|
$947
|
$1,318
|
$503
|
$50
|
|
|
|
|
|
|
|
Net earnings per
share-basic
|
$0.07
|
$0.10
|
$0.04
|
$0.00
|
|
Net earnings per
share-diluted
|
$0.07
|
$0.10
|
$0.04
|
$0.00
|
|
Weighted average
shares outstanding-basic
|
13,532,958
|
13,785,046
|
13,567,778
|
13,759,732
|
|
Weighted average
shares outstanding-diluted
|
13,547,394
|
13,814,690
|
13,595,586
|
13,902,587
|
BK TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(In
thousands, except share data)
|
|
June
30,
2018
|
December
31,
2017
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$10,723
|
$7,147
|
|
Available-for-sale-securities
|
—
|
9,184
|
|
Trade accounts
receivable, net
|
6,983
|
5,524
|
|
Inventories,
net
|
12,781
|
14,358
|
|
Prepaid expenses
and other current assets
|
871
|
772
|
|
Total current
assets
|
31,358
|
36,985
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,367
|
2,201
|
|
Investment in
securities
|
3,389
|
—
|
|
Deferred tax
assets, net
|
3,139
|
3,317
|
|
Other
assets
|
239
|
298
|
|
Total
assets
|
$40,492
|
$42,801
|
|
|
||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$3,534
|
$5,971
|
|
Accrued
compensation and related taxes
|
1,615
|
1,364
|
|
Accrued warranty
expense
|
1,415
|
1,389
|
|
Accrued other
expenses and other current liabilities
|
974
|
1,159
|
|
Dividends
payable
|
271
|
273
|
|
Deferred
revenue
|
175
|
157
|
|
Total current
liabilities
|
7,984
|
10,313
|
|
|
|
|
|
Deferred
revenue
|
1,045
|
481
|
|
Total
liabilities
|
$9,029
|
$10,794
|
|
Commitments and
contingencies
|
|
|
|
Stockholders’
equity:
|
|
|
|
Preferred stock;
$1.00 par value; 1,000,000 authorized shares; none issued or
outstanding
|
—
|
—
|
|
Common stock; $.60
par value; 20,000,000 authorized shares; 13,882,937 and 13,844,584
issued and 13,529,983 and 13,652,490 outstanding shares at June 30,
2018 and December 31, 2017, respectively
|
8,330
|
8,307
|
|
Additional paid-in
capital
|
25,730
|
25,642
|
|
Accumulated
deficit
|
(1,171)
|
(5,450)
|
|
Accumulated other
comprehensive income
|
—
|
4,318
|
|
Treasury stock, at
cost, 352,954 and 192,094 shares at June 30, 2018 and December 31,
2017, respectively
|
(1,426)
|
(810)
|
|
Total
stockholders’ equity
|
31,463
|
32,007
|
|
Total liabilities
and stockholders’ equity
|
$40,492
|
$42,801
|