Attached files
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| 8-K - CURRENT REPORT - BK Technologies Corp | bkti_8k.htm |
Exhibit 99.1
Company Contact:
Hayden IR
James Carbonara
james@haydenir.com
(646)-755-7412
BK Technologies Announces First Quarter 2021 Results
WEST MELBOURNE, FL May 13, 2021 / BK Technologies Corporation (NYSE American:
BKTI) today announced financial and operating results for the first
quarter ended March 31, 2021. The Company will host a conference
call today, May 13, 2021, at 9:00 AM eastern
time.
Recent Financial and Operational Highlights
●
Cost
management initiatives offset revenue delays, related to the timing
of certain orders from existing customers and supply chain
constraints, that will benefit future quarters
●
New
Technology Innovation Center in South Florida, focused on
completing and launching the BKR 9000 multiband communications
technology (“BKR 9000”) for the public safety
market
●
Received
first pre-orders for BKR 9000 from new customers
●
Received multiple
orders for new BKR 5000 Digital P25 portable communications
technology (“BKR 5000”)
●
Expanded
printed circuit board (PCB) assembly capabilities and capacity with
addition of high-specification surface mount technology (SMT) at
our American manufacturing operations in Florida
o
Anticipated
to double capacity and allow for additional production
shifts.
Tim Vitou, BK’s President, commented, “We are currently
seeing strong demand across our addressable markets and users
despite first quarter revenues that were impacted by delays from
the timing of orders from existing customers as well as some supply
chain disruption. Several orders anticipated for the first quarter
have now been booked or are in the final procurement stage giving
us confidence that the second quarter will show growth. As with
many enterprises, COVID-19 has disrupted the operations of some of
our supply chain partners, in some cases slowing delivery times,
and extending the ordering and procurement processes at certain
government customers.”
Mr. Vitou continued, “We are already seeing demand for our
multiband BKR 9000 product, which we plan to launch later this
year. This product is anticipated to unlock a significantly larger
segment of the market for us. While our existing product line
enables us to serve a relatively small portion of the addressable
LMR market, the BKR 9000’s multiband capabilities will open
up new markets and bigger contract opportunities. Consequently, we
see a path toward significant annual revenue growth and achieving
gross profit margin improvement as the business scales. This is an
exciting time for BK, and we believe that the strength and market
recognition of our existing products, coupled with the capabilities
of our new technology, position us well to grow our customer base,
win new contracts and capture additional market
share.”
First Quarter 2021 Financial Review
Revenue totaled approximately $8.6 million, compared with
approximately $10.9 million for the first quarter of
last year, primarily related to delays
from certain existing federal customers and supply chain partners.
The gross profit margin remained consistent at
36%.
Selling, General & Administrative expenses decreased 16% to
$4.0 million, compared to $4.7 million in the first quarter of last
year.
Operating loss totaled approximately $(0.9) million, compared with
an operating loss of $(0.8) million in the first quarter of last
year.
Net loss narrowed to $(0.7) million, or $(0.06) per basic and
diluted share, compared with a net loss of $(1.2) million, or
$(0.09) per basic and diluted share, for the first quarter of last
year.
Working capital totaled approximately $13.2 million, of which
approximately $10.9 million was comprised of cash, cash
equivalents, and trade receivables. This compares with the working
capital total, at year-end of last year, of approximately $15.2
million, of which $13.3 million was comprised of cash, cash
equivalents, and trade receivables.
Conference Call and Webcast
The
Company will host a conference call and webcast for investors
today, May 13, 2021, at 9:00 AM
eastern time. Shareholders and other interested parties may
participate in the conference call by dialing 888-506-0062; entry
code 415220 (international participants dial 973-528-0011; entry
code 415220) and asking to be connected to the “BK
Technologies Corporation Conference Call” a few minutes
before 9:00 AM eastern time on
May 13, 2021. The call will also be webcast at http://www.bktechnologies.com.
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 and will be available until May 27, 2021.
The replay will be accessible by dialing 877-481-4010; PIN# 40775
(international participants dial 919-882-2331; PIN#
40775).
About BK Technologies
BK Technologies Corporation is an American holding company deeply
rooted in the public safety communications industry, with its
operating subsidiary manufacturing high-specification,
American-made communications equipment of unsurpassed reliability
and value for use by public safety professionals and government
agencies. BK Technologies is honored to serve our public safety
heroes with reliable equipment when every moment counts. The
Company’s common stock trades on the NYSE American market
under the symbol “BKTI”. Maintaining its headquarters
in West Melbourne, Florida, BK Technologies can be contacted
through its website at www.bktechnologies.com or directly at
1-800-821-2900.
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,
some of which have been, and may further be, exacerbated by the
COVID-19 pandemic, include, among others, the following: changes or
advances in technology; the success of our land mobile radio
product line; successful introduction of new products and
technologies, including our ability to successfully develop and
sell our anticipated new multiband product and other related
products in the planned new BKR Series product line; competition in
the land mobile radio industry; general economic and business
conditions, including federal, state and local government budget
deficits and spending limitations, any impact from a prolonged
shutdown of the U.S. Government, and the ongoing effects of the
COVID-19 pandemic; the availability, terms and deployment of
capital; reliance on contract manufacturers and suppliers; risks
associated with fixed-price contracts; heavy reliance on sales to
agencies of the U.S. Government and our ability to comply with the
requirements of contracts, laws and regulations related to such
sales; allocations by government agencies among multiple approved
suppliers under existing agreements; our ability to comply with
U.S. tax laws and utilize deferred tax assets; our ability to
attract and retain executive officers, skilled workers and key
personnel; our ability to manage our growth; our ability to
identify potential candidates for, and consummate, acquisition,
disposition or investment transactions, and risks incumbent to
being a noncontrolling interest stockholder in a corporation;
impact of the COVID-19 pandemic on the companies in which the
Company holds investments; impact of our capital allocation
strategy; risks related to maintaining our brand and reputation;
impact of government regulation; rising health care costs; our
business with manufacturers located in other countries, including
changes in the U.S. Government and foreign governments’ trade
and tariff policies, as well as any further impact resulting from
the COVID-19 pandemic; our inventory and debt levels; protection of
our intellectual property rights; fluctuation in our operating
results and stock price; acts of war or terrorism, natural
disasters and other catastrophic events, such as the COVID-19
pandemic; 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; risks related to being a holding company;
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, 2020, 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 CORPORATION
Condensed Consolidated Statements of Operations
(In
thousands, except share and per share data) (Unaudited)
|
|
Three Months
Ended
|
|
|
|
March 31,
2021
|
March 31,
2020
|
|
|
|
|
|
Sales,
net
|
$8,564
|
$10,889
|
|
Expenses
|
|
|
|
Cost of
products
|
5,468
|
6,994
|
|
Selling, general
and administrative
|
3,973
|
4,743
|
|
Total
expenses
|
9,441
|
11,737
|
|
|
|
|
|
Operating
loss
|
(877)
|
(848)
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
Net interest
(expense) income
|
(4)
|
9
|
|
Gain (loss) on
investment in securities
|
205
|
(306)
|
|
Other
expense
|
(18)
|
(47)
|
|
Total other income
(expense)
|
183
|
(344)
|
|
|
|
|
|
Loss before income
taxes
|
(694)
|
(1,192)
|
|
|
|
|
|
Income tax
benefit
|
—
|
—
|
|
|
|
|
|
Net
loss
|
$(694)
|
$(1,192)
|
|
|
|
|
|
Net loss per
share-basic and diluted:
|
$(0.06)
|
$(0.09)
|
|
Weighted average
shares outstanding-basic and diluted
|
12,517,412
|
12,555,108
|
BK TECHNOLOGIES CORPORATION
Condensed Consolidated Balance Sheets
(In
thousands, except share data)
|
|
March
31,
2021
|
December
31,
2020
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$6,363
|
$6,826
|
|
Trade accounts
receivable, net
|
4,566
|
6,466
|
|
Inventories,
net
|
10,511
|
9,441
|
|
Prepaid expenses
and other current assets
|
1,821
|
1,878
|
|
Total current
assets
|
23,261
|
24,611
|
|
|
|
|
|
Property, plant and
equipment, net
|
4,299
|
3,566
|
|
Right-of-use (ROU)
asset
|
2,689
|
2,887
|
|
Investment in
securities
|
2,219
|
2,014
|
|
Deferred tax
assets, net
|
4,300
|
4,300
|
|
Other
assets
|
118
|
112
|
|
Total
assets
|
$36,886
|
$37,490
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$5,418
|
$5,119
|
|
Accrued
compensation and related taxes
|
1,320
|
1,635
|
|
Accrued warranty
expense
|
718
|
791
|
|
Accrued other
expenses and other current liabilities
|
162
|
307
|
|
Dividends
payable
|
251
|
250
|
|
Short-term lease
liability
|
418
|
525
|
|
Credit
facility
|
800
|
—
|
|
Note
payable-current portion
|
82
|
82
|
|
Deferred
revenue
|
847
|
757
|
|
Total current
liabilities
|
10,016
|
9,466
|
|
|
|
|
|
Note payable, net
of current portion
|
226
|
247
|
|
Long-term lease
liability
|
2,607
|
2,702
|
|
Deferred
revenue
|
2,323
|
2,551
|
|
Total
liabilities
|
15,172
|
14,966
|
|
Commitments and
contingencies
|
|
|
|
Stockholders’
equity:
|
|
|
|
Preferred stock;
$1.00 par value; 1,000,000 authorized shares;non-issued or
outstanding
|
—
|
—
|
|
Common stock; $.60
par value; 20,000,000 authorized shares; 13,986,871 and 13,962,366
issued and 12,536,471 and 12,511,966 outstanding shares at March
31, 2021 and December 31, 2020, respectively
|
8,392
|
8,377
|
|
Additional paid-in
capital
|
26,466
|
26,346
|
|
Accumulated
deficit
|
(7,742)
|
(6,797)
|
|
Treasury stock, at
cost, 1,450,400 shares at March 31, 2021, and December 31, 2020,
respectively
|
(5,402)
|
(5,402)
|
|
Total
stockholders’ equity
|
21,714
|
22,524
|
|
Total liabilities
and stockholders’ equity
|
$36,886
|
$37,490
|