Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries BK Technologies Announces Third Quarter 2022 Results By: ACCESSWIRE November 03, 2022 at 07:00 AM EDT Achieves Record Third Quarter Bookings of $28M WEST MELBOURNE, FL / ACCESSWIRE / November 3, 2022 / BK Technologies Corporation (NYSE American:BKTI) (the "Company" or "BK Technologies") today announced financial and operating results for the third quarter and nine months ended September 30, 2022. The Company will host a conference call today, November 3, 2022, at 9:00 a.m. Eastern Time. Third Quarter 2022 Financial and Operational Update $12 million in revenue with record bookings of $28 million in the quarter driven by solid demand for BKR 5000 Continued strong interest in BKR 5000 contributed to total backlog of $42 million at September 30, 2022 Radio production improved, however shipment activity was adversely impacted by transportation delays caused by Hurricane Ian Q3 gross margins improved from Q2 2022 as supply chain improvements materialized and elevated material costs experienced earlier this year started to return to more historical prices, the Company believes margins will continue to improve and reach historical levels by December 2022 BKR 9000 development is on track and expected to launch during Q4 2022 "We continue to see strong demand for our BKR 5000 product line of radios and accessories, which resulted in our third consecutive quarter of record booking activity," commented John Suzuki, CEO of BK Technologies. "With the addition of the second BKR 5000 production line and easing of supply chain constraints, radio production began increasing in September. At the end of September, Hurricane Ian directly hit our home state of Florida, and while we're grateful that our employees and operations came through the storm intact, our shipment capabilities were significantly limited for several days, thereby pushing approximately $1.5 million in revenue into the first two weeks of October." "As we move through the close of 2022, radio production rates continue to increase and we believe we are strongly positioned to convert a meaningful portion of our backlog orders and drive continued sequential improved margins." "Notably, shortly after the close of the quarter, our SaaS business unit launched our first public safety service, InteropONE, the only Push-To-Talk Over Cellular (PTToC) service that enables on-demand group communications for any smartphone user. As PTToC solutions have become more sophisticated and operate on a variety of platforms, interoperability between different technologies and service providers has become a big challenge, especially for the public safety community. Our InteropONE offering provides a practical solution by enabling on-demand group communications between first responders who arrive at events from different emergency agencies. We believe InteropONE is a game-changing, scalable smartphone application which provides a tremendous opportunity to address a broader market audience within the public safety communications market and will serve as a blueprint for our development of additional SaaS services." Kyle Cerminara, Chairman of the Board of Directors of BK Technologies and CEO of Fundamental Global stated, "Our record $42 million backlog is a dramatic increase from $13 million at the close of 2021. This backlog, when combined with future orders for our well-received BKR product line, positions us for strong growth and enhanced profitability in the fourth quarter and 2023. Supply chain concerns have eased significantly giving us confidence in our ability to convert backlog into revenue and convert inventory into cash at an attractive gross margin." Third Quarter 2022 Financial Review Revenue decreased 6% to $11.9 million, compared with $12.6 million for the third quarter of last year. Gross profit margin was 19% compared to 33% for the same quarter of last year. The lower gross margins generally reflect cost increases in material and freight costs related to supply chain constraints. Selling, General & Administrative expenses totaled $4.6 million, compared with $4.5 million for the third quarter of last year. Operating loss totaled ($2.4 million) compared with operating loss of ($370,000) for the third quarter of last year. BK Technologies recorded a net loss of ($2.4 million) or ($0.14) per basic and diluted share, compared with a net loss of ($2.6 million) or ($0.15) per basic and diluted share, for the third quarter of last year. In the third quarter of 2022, the Company recognized a net realized and unrealized gain of $76,000 on its investments, compared with an unrealized loss of ($2.2 million) in the same quarter of last year. First Nine Months 2022 Financial Review Revenue decreased 6% to $30.6 million, compared with $32.5 million for the first nine months of last year. Gross profit margin was 18% compared to 36% for the first nine months of last year. The lower gross margins generally reflect cost increases in material and freight and lower production volumes in the first quarter of 2022. Selling, General & Administrative expenses totaled $15.0 million, compared with $13.0 million for the first nine months of 2021. Operating loss totaled ($9.5 million) compared with operating loss of ($1.4 million) for the first nine months of last year. BK Technologies recorded a net loss of ($10.7 million) or ($0.63) per basic and diluted share, compared with a net loss of ($1.4 million) or ($0.10) per basic and diluted share for the first nine months of last year. In the first nine months of 2022, the Company recognized a net realized and unrealized loss of ($1.0 million) on its investments, compared with an unrealized gain of $0.3 million in the first nine months of last year. Working capital totaled approximately $14.6 million, of which approximately $9.4 million was comprised of cash, cash equivalents, and trade receivables. This compares with the working capital at year-end of 2021 of approximately $25.2 million, of which $18.8 million was comprised of cash, cash equivalents, and trade receivables. Conference Call and Webcast BK Technologies will host a conference call and webcast for investors today, November 3, 2022, at 9:00 a.m. Eastern Time. Stockholders and interested parties may participate in the conference call by dialing (877) 545-0320 and international participants should dial (973) 528-0002 and use access code: 115505. The call and the accompanying slide deck will also be webcast at: https://www.webcaster4.com/Webcast/Page/2208/46861 The conference call and slide deck may also be accessed via the Events page of the Company's website at www.bktechnologies.com . Please allow extra time prior to the call to visit the site. An online archive of the webcast will be available on the Company's web site for thirty (30) days following the call at www.bktechnologies.com . A replay of the conference call will be available one hour after completion of the call until November 10, 2022 by dialing (877) 481-4010 and international participants should dial (919) 882-2331. All callers must use passcode 46861 to access the replay. About BK Technologies BK Technologies Corporation manufactures high-specification, American-made communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. BK Technologies SaaS business focuses on new, innovative public safety smartphone services that will make the first responders safer or more productive. BK Technologies is honored to serve these heroes when every moment counts. The Company's common stock trades on the NYSE American market under the symbol "BKTI". Maintaining its headquarters and primary manufacturing facility in West Melbourne, Florida, BK Technologies can be contacted through its web site 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, including, but not limited to, statements regarding the expected timing for the launch of the BKR 9000 and the Company's long-term strategic plan, 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 and geopolitical events, include, among others, the following: changes or advances in technology; the success of our land mobile radio product line; disruption in the global supply chain creating delays, unavailability and adverse conditions; 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 and our announced SaaS solutions; competition in the land mobile radio industry; general economic and business conditions, including higher inflation and its impacts, federal, state and local government budget deficits and spending limitations, any impact from a prolonged shutdown of the U.S. Government, the ongoing effects of the COVID-19 pandemic and the ongoing war in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments; 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 to consummate, acquisition, disposition or investment transactions, and risks incumbent to being a noncontrolling interest stockholder in a corporation; impact of the COVID-19 pandemic or the ongoing war in Ukraine 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; impact of 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 or the ongoing war in Ukraine; 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 severe weather events, the COVID-19 pandemic and geopolitical 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; 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, 2021, 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 statement. Company Contact: IMS Investor RelationsJohn Nesbett/Jennifer Belodeaubktechnologies@imsinvestorrelations.com (203) 972-9200 # # # (Financial Tables to Follow) BK TECHNOLOGIES CORPORATION Condensed Consolidated Statements of Operations ( In thousands, except share and per share data ) ( Unaudited ) Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Sales, net $ 11,917 $ 12,626 $ 30,612 $ 32,526 Expenses Cost of products 9,676 8,488 25,175 20,914 Selling, general and administrative 4,632 4,508 14,952 13,034 Total operating expenses 14,308 12,996 40,127 33,948 Operating loss (2,391) (370) (9,515) (1,422) Other (expense) income: Net interest expense (30) (19) (70) (37) Loss on disposal of property, plant and equipment - (6) - (6) Gain (loss) on investments 76 (2,157) (1,021) 310 Other expense (57) (14) (66) (59) Total other (expense) income (11) (2,196) (1,157) 208 Loss before income taxes (2,402) (2,566) (10,672) (1,214) Provision for income tax - - - (184) Net loss $ (2,402) $ (2,566) $ (10,672) $ (1,398) Net loss per share-basic: $ (0.14) $ (0.15) $ (0.63) $ (0.10) Net loss per share-diluted: $ (0.14) $ (0.15) $ (0.63) $ (0.10) Weighted average shares outstanding-basic 16,950,486 16,795,356 16,889,554 14,307,847 Weighted average shares outstanding-diluted 16,950,486 16,795,356 16,889,554 14,307,847 BK TECHNOLOGIES CORPORATION Condensed Consolidated Balance Sheets ( In thousands, except share data) (Unaudited) September 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 4,034 $ 10,580 Trade accounts receivable, net 5,379 8,229 Inventories, net 26,332 16,978 Prepaid expenses and other current assets 1,711 1,634 Total current assets 37,456 37,421 Property, plant and equipment, net 4,454 4,556 Right-of-use (ROU) asset 2,095 2,399 Investments 773 1,795 Deferred tax assets, net 4,116 4,116 Other assets 144 98 Total assets $ 49,038 $ 50,385 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 13,257 $ 5,883 Accrued compensation and related taxes 1,461 1,099 Accrued warranty expense 587 533 Accrued other expenses and other current liabilities 772 938 Dividends payable 510 505 Short-term lease liability 476 447 Credit facility 4,458 1,470 Notes payable-current portion 274 267 Deferred revenue 1,029 1,045 Total current liabilities 22,824 12,187 Notes payable, net of current portion 400 605 Long-term lease liability 1,909 2,269 Deferred revenue 2,912 2,706 Total liabilities 28,045 17,767 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; 50,000,000 authorized shares; 18,434,697 and 18,298,999 issued and 16,984,297 and 16,848,599 outstanding shares at September 30, 2022, and December 31, 2021, respectively 11,061 10,979 Additional paid-in capital 36,352 35,862 Accumulated deficit (21,018) (8,821) Treasury stock, at cost, 1,450,400 shares at September 30, 2022, and December 31, 2021, respectively (5,402) (5,402) Total stockholders' equity 20,993 32, 618 Total liabilities and stockholders' equity $ 49,038 $ 50,385 SOURCE: BK Technologies Corporation View source version on accesswire.com: https://www.accesswire.com/723654/BK-Technologies-Announces-Third-Quarter-2022-Results Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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BK Technologies Announces Third Quarter 2022 Results By: ACCESSWIRE November 03, 2022 at 07:00 AM EDT Achieves Record Third Quarter Bookings of $28M WEST MELBOURNE, FL / ACCESSWIRE / November 3, 2022 / BK Technologies Corporation (NYSE American:BKTI) (the "Company" or "BK Technologies") today announced financial and operating results for the third quarter and nine months ended September 30, 2022. The Company will host a conference call today, November 3, 2022, at 9:00 a.m. Eastern Time. Third Quarter 2022 Financial and Operational Update $12 million in revenue with record bookings of $28 million in the quarter driven by solid demand for BKR 5000 Continued strong interest in BKR 5000 contributed to total backlog of $42 million at September 30, 2022 Radio production improved, however shipment activity was adversely impacted by transportation delays caused by Hurricane Ian Q3 gross margins improved from Q2 2022 as supply chain improvements materialized and elevated material costs experienced earlier this year started to return to more historical prices, the Company believes margins will continue to improve and reach historical levels by December 2022 BKR 9000 development is on track and expected to launch during Q4 2022 "We continue to see strong demand for our BKR 5000 product line of radios and accessories, which resulted in our third consecutive quarter of record booking activity," commented John Suzuki, CEO of BK Technologies. "With the addition of the second BKR 5000 production line and easing of supply chain constraints, radio production began increasing in September. At the end of September, Hurricane Ian directly hit our home state of Florida, and while we're grateful that our employees and operations came through the storm intact, our shipment capabilities were significantly limited for several days, thereby pushing approximately $1.5 million in revenue into the first two weeks of October." "As we move through the close of 2022, radio production rates continue to increase and we believe we are strongly positioned to convert a meaningful portion of our backlog orders and drive continued sequential improved margins." "Notably, shortly after the close of the quarter, our SaaS business unit launched our first public safety service, InteropONE, the only Push-To-Talk Over Cellular (PTToC) service that enables on-demand group communications for any smartphone user. As PTToC solutions have become more sophisticated and operate on a variety of platforms, interoperability between different technologies and service providers has become a big challenge, especially for the public safety community. Our InteropONE offering provides a practical solution by enabling on-demand group communications between first responders who arrive at events from different emergency agencies. We believe InteropONE is a game-changing, scalable smartphone application which provides a tremendous opportunity to address a broader market audience within the public safety communications market and will serve as a blueprint for our development of additional SaaS services." Kyle Cerminara, Chairman of the Board of Directors of BK Technologies and CEO of Fundamental Global stated, "Our record $42 million backlog is a dramatic increase from $13 million at the close of 2021. This backlog, when combined with future orders for our well-received BKR product line, positions us for strong growth and enhanced profitability in the fourth quarter and 2023. Supply chain concerns have eased significantly giving us confidence in our ability to convert backlog into revenue and convert inventory into cash at an attractive gross margin." Third Quarter 2022 Financial Review Revenue decreased 6% to $11.9 million, compared with $12.6 million for the third quarter of last year. Gross profit margin was 19% compared to 33% for the same quarter of last year. The lower gross margins generally reflect cost increases in material and freight costs related to supply chain constraints. Selling, General & Administrative expenses totaled $4.6 million, compared with $4.5 million for the third quarter of last year. Operating loss totaled ($2.4 million) compared with operating loss of ($370,000) for the third quarter of last year. BK Technologies recorded a net loss of ($2.4 million) or ($0.14) per basic and diluted share, compared with a net loss of ($2.6 million) or ($0.15) per basic and diluted share, for the third quarter of last year. In the third quarter of 2022, the Company recognized a net realized and unrealized gain of $76,000 on its investments, compared with an unrealized loss of ($2.2 million) in the same quarter of last year. First Nine Months 2022 Financial Review Revenue decreased 6% to $30.6 million, compared with $32.5 million for the first nine months of last year. Gross profit margin was 18% compared to 36% for the first nine months of last year. The lower gross margins generally reflect cost increases in material and freight and lower production volumes in the first quarter of 2022. Selling, General & Administrative expenses totaled $15.0 million, compared with $13.0 million for the first nine months of 2021. Operating loss totaled ($9.5 million) compared with operating loss of ($1.4 million) for the first nine months of last year. BK Technologies recorded a net loss of ($10.7 million) or ($0.63) per basic and diluted share, compared with a net loss of ($1.4 million) or ($0.10) per basic and diluted share for the first nine months of last year. In the first nine months of 2022, the Company recognized a net realized and unrealized loss of ($1.0 million) on its investments, compared with an unrealized gain of $0.3 million in the first nine months of last year. Working capital totaled approximately $14.6 million, of which approximately $9.4 million was comprised of cash, cash equivalents, and trade receivables. This compares with the working capital at year-end of 2021 of approximately $25.2 million, of which $18.8 million was comprised of cash, cash equivalents, and trade receivables. Conference Call and Webcast BK Technologies will host a conference call and webcast for investors today, November 3, 2022, at 9:00 a.m. Eastern Time. Stockholders and interested parties may participate in the conference call by dialing (877) 545-0320 and international participants should dial (973) 528-0002 and use access code: 115505. The call and the accompanying slide deck will also be webcast at: https://www.webcaster4.com/Webcast/Page/2208/46861 The conference call and slide deck may also be accessed via the Events page of the Company's website at www.bktechnologies.com . Please allow extra time prior to the call to visit the site. An online archive of the webcast will be available on the Company's web site for thirty (30) days following the call at www.bktechnologies.com . A replay of the conference call will be available one hour after completion of the call until November 10, 2022 by dialing (877) 481-4010 and international participants should dial (919) 882-2331. All callers must use passcode 46861 to access the replay. About BK Technologies BK Technologies Corporation manufactures high-specification, American-made communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. BK Technologies SaaS business focuses on new, innovative public safety smartphone services that will make the first responders safer or more productive. BK Technologies is honored to serve these heroes when every moment counts. The Company's common stock trades on the NYSE American market under the symbol "BKTI". Maintaining its headquarters and primary manufacturing facility in West Melbourne, Florida, BK Technologies can be contacted through its web site 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, including, but not limited to, statements regarding the expected timing for the launch of the BKR 9000 and the Company's long-term strategic plan, 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 and geopolitical events, include, among others, the following: changes or advances in technology; the success of our land mobile radio product line; disruption in the global supply chain creating delays, unavailability and adverse conditions; 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 and our announced SaaS solutions; competition in the land mobile radio industry; general economic and business conditions, including higher inflation and its impacts, federal, state and local government budget deficits and spending limitations, any impact from a prolonged shutdown of the U.S. Government, the ongoing effects of the COVID-19 pandemic and the ongoing war in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments; 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 to consummate, acquisition, disposition or investment transactions, and risks incumbent to being a noncontrolling interest stockholder in a corporation; impact of the COVID-19 pandemic or the ongoing war in Ukraine 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; impact of 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 or the ongoing war in Ukraine; 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 severe weather events, the COVID-19 pandemic and geopolitical 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; 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, 2021, 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 statement. Company Contact: IMS Investor RelationsJohn Nesbett/Jennifer Belodeaubktechnologies@imsinvestorrelations.com (203) 972-9200 # # # (Financial Tables to Follow) BK TECHNOLOGIES CORPORATION Condensed Consolidated Statements of Operations ( In thousands, except share and per share data ) ( Unaudited ) Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Sales, net $ 11,917 $ 12,626 $ 30,612 $ 32,526 Expenses Cost of products 9,676 8,488 25,175 20,914 Selling, general and administrative 4,632 4,508 14,952 13,034 Total operating expenses 14,308 12,996 40,127 33,948 Operating loss (2,391) (370) (9,515) (1,422) Other (expense) income: Net interest expense (30) (19) (70) (37) Loss on disposal of property, plant and equipment - (6) - (6) Gain (loss) on investments 76 (2,157) (1,021) 310 Other expense (57) (14) (66) (59) Total other (expense) income (11) (2,196) (1,157) 208 Loss before income taxes (2,402) (2,566) (10,672) (1,214) Provision for income tax - - - (184) Net loss $ (2,402) $ (2,566) $ (10,672) $ (1,398) Net loss per share-basic: $ (0.14) $ (0.15) $ (0.63) $ (0.10) Net loss per share-diluted: $ (0.14) $ (0.15) $ (0.63) $ (0.10) Weighted average shares outstanding-basic 16,950,486 16,795,356 16,889,554 14,307,847 Weighted average shares outstanding-diluted 16,950,486 16,795,356 16,889,554 14,307,847 BK TECHNOLOGIES CORPORATION Condensed Consolidated Balance Sheets ( In thousands, except share data) (Unaudited) September 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 4,034 $ 10,580 Trade accounts receivable, net 5,379 8,229 Inventories, net 26,332 16,978 Prepaid expenses and other current assets 1,711 1,634 Total current assets 37,456 37,421 Property, plant and equipment, net 4,454 4,556 Right-of-use (ROU) asset 2,095 2,399 Investments 773 1,795 Deferred tax assets, net 4,116 4,116 Other assets 144 98 Total assets $ 49,038 $ 50,385 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 13,257 $ 5,883 Accrued compensation and related taxes 1,461 1,099 Accrued warranty expense 587 533 Accrued other expenses and other current liabilities 772 938 Dividends payable 510 505 Short-term lease liability 476 447 Credit facility 4,458 1,470 Notes payable-current portion 274 267 Deferred revenue 1,029 1,045 Total current liabilities 22,824 12,187 Notes payable, net of current portion 400 605 Long-term lease liability 1,909 2,269 Deferred revenue 2,912 2,706 Total liabilities 28,045 17,767 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; 50,000,000 authorized shares; 18,434,697 and 18,298,999 issued and 16,984,297 and 16,848,599 outstanding shares at September 30, 2022, and December 31, 2021, respectively 11,061 10,979 Additional paid-in capital 36,352 35,862 Accumulated deficit (21,018) (8,821) Treasury stock, at cost, 1,450,400 shares at September 30, 2022, and December 31, 2021, respectively (5,402) (5,402) Total stockholders' equity 20,993 32, 618 Total liabilities and stockholders' equity $ 49,038 $ 50,385 SOURCE: BK Technologies Corporation View source version on accesswire.com: https://www.accesswire.com/723654/BK-Technologies-Announces-Third-Quarter-2022-Results
Achieves Record Third Quarter Bookings of $28M WEST MELBOURNE, FL / ACCESSWIRE / November 3, 2022 / BK Technologies Corporation (NYSE American:BKTI) (the "Company" or "BK Technologies") today announced financial and operating results for the third quarter and nine months ended September 30, 2022. The Company will host a conference call today, November 3, 2022, at 9:00 a.m. Eastern Time. Third Quarter 2022 Financial and Operational Update $12 million in revenue with record bookings of $28 million in the quarter driven by solid demand for BKR 5000 Continued strong interest in BKR 5000 contributed to total backlog of $42 million at September 30, 2022 Radio production improved, however shipment activity was adversely impacted by transportation delays caused by Hurricane Ian Q3 gross margins improved from Q2 2022 as supply chain improvements materialized and elevated material costs experienced earlier this year started to return to more historical prices, the Company believes margins will continue to improve and reach historical levels by December 2022 BKR 9000 development is on track and expected to launch during Q4 2022 "We continue to see strong demand for our BKR 5000 product line of radios and accessories, which resulted in our third consecutive quarter of record booking activity," commented John Suzuki, CEO of BK Technologies. "With the addition of the second BKR 5000 production line and easing of supply chain constraints, radio production began increasing in September. At the end of September, Hurricane Ian directly hit our home state of Florida, and while we're grateful that our employees and operations came through the storm intact, our shipment capabilities were significantly limited for several days, thereby pushing approximately $1.5 million in revenue into the first two weeks of October." "As we move through the close of 2022, radio production rates continue to increase and we believe we are strongly positioned to convert a meaningful portion of our backlog orders and drive continued sequential improved margins." "Notably, shortly after the close of the quarter, our SaaS business unit launched our first public safety service, InteropONE, the only Push-To-Talk Over Cellular (PTToC) service that enables on-demand group communications for any smartphone user. As PTToC solutions have become more sophisticated and operate on a variety of platforms, interoperability between different technologies and service providers has become a big challenge, especially for the public safety community. Our InteropONE offering provides a practical solution by enabling on-demand group communications between first responders who arrive at events from different emergency agencies. We believe InteropONE is a game-changing, scalable smartphone application which provides a tremendous opportunity to address a broader market audience within the public safety communications market and will serve as a blueprint for our development of additional SaaS services." Kyle Cerminara, Chairman of the Board of Directors of BK Technologies and CEO of Fundamental Global stated, "Our record $42 million backlog is a dramatic increase from $13 million at the close of 2021. This backlog, when combined with future orders for our well-received BKR product line, positions us for strong growth and enhanced profitability in the fourth quarter and 2023. Supply chain concerns have eased significantly giving us confidence in our ability to convert backlog into revenue and convert inventory into cash at an attractive gross margin." Third Quarter 2022 Financial Review Revenue decreased 6% to $11.9 million, compared with $12.6 million for the third quarter of last year. Gross profit margin was 19% compared to 33% for the same quarter of last year. The lower gross margins generally reflect cost increases in material and freight costs related to supply chain constraints. Selling, General & Administrative expenses totaled $4.6 million, compared with $4.5 million for the third quarter of last year. Operating loss totaled ($2.4 million) compared with operating loss of ($370,000) for the third quarter of last year. BK Technologies recorded a net loss of ($2.4 million) or ($0.14) per basic and diluted share, compared with a net loss of ($2.6 million) or ($0.15) per basic and diluted share, for the third quarter of last year. In the third quarter of 2022, the Company recognized a net realized and unrealized gain of $76,000 on its investments, compared with an unrealized loss of ($2.2 million) in the same quarter of last year. First Nine Months 2022 Financial Review Revenue decreased 6% to $30.6 million, compared with $32.5 million for the first nine months of last year. Gross profit margin was 18% compared to 36% for the first nine months of last year. The lower gross margins generally reflect cost increases in material and freight and lower production volumes in the first quarter of 2022. Selling, General & Administrative expenses totaled $15.0 million, compared with $13.0 million for the first nine months of 2021. Operating loss totaled ($9.5 million) compared with operating loss of ($1.4 million) for the first nine months of last year. BK Technologies recorded a net loss of ($10.7 million) or ($0.63) per basic and diluted share, compared with a net loss of ($1.4 million) or ($0.10) per basic and diluted share for the first nine months of last year. In the first nine months of 2022, the Company recognized a net realized and unrealized loss of ($1.0 million) on its investments, compared with an unrealized gain of $0.3 million in the first nine months of last year. Working capital totaled approximately $14.6 million, of which approximately $9.4 million was comprised of cash, cash equivalents, and trade receivables. This compares with the working capital at year-end of 2021 of approximately $25.2 million, of which $18.8 million was comprised of cash, cash equivalents, and trade receivables. Conference Call and Webcast BK Technologies will host a conference call and webcast for investors today, November 3, 2022, at 9:00 a.m. Eastern Time. Stockholders and interested parties may participate in the conference call by dialing (877) 545-0320 and international participants should dial (973) 528-0002 and use access code: 115505. The call and the accompanying slide deck will also be webcast at: https://www.webcaster4.com/Webcast/Page/2208/46861 The conference call and slide deck may also be accessed via the Events page of the Company's website at www.bktechnologies.com . Please allow extra time prior to the call to visit the site. An online archive of the webcast will be available on the Company's web site for thirty (30) days following the call at www.bktechnologies.com . A replay of the conference call will be available one hour after completion of the call until November 10, 2022 by dialing (877) 481-4010 and international participants should dial (919) 882-2331. All callers must use passcode 46861 to access the replay. About BK Technologies BK Technologies Corporation manufactures high-specification, American-made communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. BK Technologies SaaS business focuses on new, innovative public safety smartphone services that will make the first responders safer or more productive. BK Technologies is honored to serve these heroes when every moment counts. The Company's common stock trades on the NYSE American market under the symbol "BKTI". Maintaining its headquarters and primary manufacturing facility in West Melbourne, Florida, BK Technologies can be contacted through its web site 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, including, but not limited to, statements regarding the expected timing for the launch of the BKR 9000 and the Company's long-term strategic plan, 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 and geopolitical events, include, among others, the following: changes or advances in technology; the success of our land mobile radio product line; disruption in the global supply chain creating delays, unavailability and adverse conditions; 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 and our announced SaaS solutions; competition in the land mobile radio industry; general economic and business conditions, including higher inflation and its impacts, federal, state and local government budget deficits and spending limitations, any impact from a prolonged shutdown of the U.S. Government, the ongoing effects of the COVID-19 pandemic and the ongoing war in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments; 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 to consummate, acquisition, disposition or investment transactions, and risks incumbent to being a noncontrolling interest stockholder in a corporation; impact of the COVID-19 pandemic or the ongoing war in Ukraine 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; impact of 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 or the ongoing war in Ukraine; 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 severe weather events, the COVID-19 pandemic and geopolitical 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; 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, 2021, 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 statement. Company Contact: IMS Investor RelationsJohn Nesbett/Jennifer Belodeaubktechnologies@imsinvestorrelations.com (203) 972-9200 # # # (Financial Tables to Follow) BK TECHNOLOGIES CORPORATION Condensed Consolidated Statements of Operations ( In thousands, except share and per share data ) ( Unaudited ) Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Sales, net $ 11,917 $ 12,626 $ 30,612 $ 32,526 Expenses Cost of products 9,676 8,488 25,175 20,914 Selling, general and administrative 4,632 4,508 14,952 13,034 Total operating expenses 14,308 12,996 40,127 33,948 Operating loss (2,391) (370) (9,515) (1,422) Other (expense) income: Net interest expense (30) (19) (70) (37) Loss on disposal of property, plant and equipment - (6) - (6) Gain (loss) on investments 76 (2,157) (1,021) 310 Other expense (57) (14) (66) (59) Total other (expense) income (11) (2,196) (1,157) 208 Loss before income taxes (2,402) (2,566) (10,672) (1,214) Provision for income tax - - - (184) Net loss $ (2,402) $ (2,566) $ (10,672) $ (1,398) Net loss per share-basic: $ (0.14) $ (0.15) $ (0.63) $ (0.10) Net loss per share-diluted: $ (0.14) $ (0.15) $ (0.63) $ (0.10) Weighted average shares outstanding-basic 16,950,486 16,795,356 16,889,554 14,307,847 Weighted average shares outstanding-diluted 16,950,486 16,795,356 16,889,554 14,307,847 BK TECHNOLOGIES CORPORATION Condensed Consolidated Balance Sheets ( In thousands, except share data) (Unaudited) September 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 4,034 $ 10,580 Trade accounts receivable, net 5,379 8,229 Inventories, net 26,332 16,978 Prepaid expenses and other current assets 1,711 1,634 Total current assets 37,456 37,421 Property, plant and equipment, net 4,454 4,556 Right-of-use (ROU) asset 2,095 2,399 Investments 773 1,795 Deferred tax assets, net 4,116 4,116 Other assets 144 98 Total assets $ 49,038 $ 50,385 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 13,257 $ 5,883 Accrued compensation and related taxes 1,461 1,099 Accrued warranty expense 587 533 Accrued other expenses and other current liabilities 772 938 Dividends payable 510 505 Short-term lease liability 476 447 Credit facility 4,458 1,470 Notes payable-current portion 274 267 Deferred revenue 1,029 1,045 Total current liabilities 22,824 12,187 Notes payable, net of current portion 400 605 Long-term lease liability 1,909 2,269 Deferred revenue 2,912 2,706 Total liabilities 28,045 17,767 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; 50,000,000 authorized shares; 18,434,697 and 18,298,999 issued and 16,984,297 and 16,848,599 outstanding shares at September 30, 2022, and December 31, 2021, respectively 11,061 10,979 Additional paid-in capital 36,352 35,862 Accumulated deficit (21,018) (8,821) Treasury stock, at cost, 1,450,400 shares at September 30, 2022, and December 31, 2021, respectively (5,402) (5,402) Total stockholders' equity 20,993 32, 618 Total liabilities and stockholders' equity $ 49,038 $ 50,385 SOURCE: BK Technologies Corporation View source version on accesswire.com: https://www.accesswire.com/723654/BK-Technologies-Announces-Third-Quarter-2022-Results