Annual Sales Grow 25%; Annual Operating Income Increases $7.4 Million from Prior Year
WEST MELBOURNE, FL / ACCESSWIRE / February 27, 2019 / BK Technologies, Inc. (NYSE American: BKTI) today announced financial and operating results for the fourth quarter and year ended December 31, 2018.
For the year ended December 31, 2018, sales increased 25.3% to approximately $49.4 million compared with approximately $39.4 million last year. Operating income for 2018 increased to approximately $2.4 million, compared with an operating loss of approximately $5.0 million last year; an improvement of approximately $7.4 million. The net loss for the year ended December 31, 2018 was approximately $195,000, or $0.01 per basic and diluted share, compared with a net loss of $3.6 million, or $0.27 per basic and diluted share last year.
The net loss for the year ended December 31, 2018 includes losses on investments in securities totaling approximately $2.7 million, compared with a gain of approximately $1.8 million last year.
For the fourth quarter ended December 31, 2018, revenues increased 13.3% to approximately $10.7 million, compared with approximately $9.4 million for the fourth quarter last year. An operating loss for the fourth quarter 2018 totaled approximately $532,000, compared with an operating loss of approximately $5.0 million for the fourth quarter last year. The net loss for the fourth quarter of 2018 was approximately $1.3 million, or $0.10 per basic and diluted share, compared with a net loss of approximately $4.3 million, or $0.31 per basic and diluted share, for the same quarter last year.
The net loss for the fourth quarter 2018 includes losses on investments in securities totaling approximately $1.3 million, compared with gains of approximately $546,000 for the same quarter last year.
The Company had approximately $21.0 million in working capital as of December 31, 2018, of which $17.0 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. During 2018, we repurchased 873,014 shares of our common stock, utilizing cash of approximately $3.3 million.
Tim Vitou, BK’s President, commented, “Overall, 2018 was a positive year for BK, marked by meaningful progress and improvements. Our sales growth from 2017 to 2018 was particularly encouraging, with 2018 representing one of BK’s best sales years in the last 20 years. During the year, we benefited from improvements in most every area of our operation. Many of the improvements were derived from the substantial changes we implemented since last year, and their impact is reflected in our 2018 financial and operating results compared with the prior year. These improvements and changes were the catalysts that drove sales growth, increasing gross profit margins and income from operations, while reducing inventory and generating positive cash flow. With the planned addition of new products in 2019, and a talented, quality-driven team, we should be well positioned to accelerate growth in the coming years.”
In June 2018, the Company changed its name from “RELM Wireless Corporation” to “BK Technologies, Inc.” and the Company’s stock began trading on the NYSE American stock exchange under the new ticker symbol “BKTI” as approved at the annual meeting of stockholders held on June 4, 2018.
Conference Call and Webcast
The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, on Thursday, February 28, 2019. 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 February 28, 2019. 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 March 10, 2019 by dialing 877-481-4010 PIN#42399 (international/local participants dial 919-882-2331 PIN# 42399).
About BK Technologies, Inc.
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”.
BK TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
| (Unaudited) | ||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
|
Sales, net
|
$ | 10,676 | $ | 9,422 | $ | 49,380 | $ | 39,395 | ||||||||
|
Expenses:
|
||||||||||||||||
|
Cost
of products |
6,884 | 10,420 | 29,403 | 29,845 | ||||||||||||
|
Selling, general and administrative
|
4,324 | 3,953 | 17,552 | 14,577 | ||||||||||||
|
Total
expenses |
11,208 | 14,373 | 46,955 | 44,422 | ||||||||||||
|
Operating (loss) income
|
(532 | ) | (4,951 | ) | 2,425 | (5,027 | ) | |||||||||
|
Other (expense) income:
|
||||||||||||||||
|
Interest income
|
38 | 14 | 102 | 46 | ||||||||||||
|
(Loss) gain on investment in securities
|
(1,279 | ) | 546 | (2,671 | ) | 1,833 | ||||||||||
|
Legal settlement
|
– | (1,436 | ) | – | (1,436 | ) | ||||||||||
|
Loss
on disposal of property, plant and equipment |
– | (1 | ) | – | (95 | ) | ||||||||||
|
Other (expense) income
|
(54 | ) | 41 | (328 | ) | (106 | ) | |||||||||
|
Loss
before income taxes |
(1,827 | ) | (5,787 | ) | (472 | ) | (4,785 | ) | ||||||||
|
Discrete tax item-impact of tax reform
|
– | (665 | ) | – | (665 | ) | ||||||||||
|
Income tax benefit
|
478 | 2,177 | 277 | 1,824 | ||||||||||||
|
Net
loss |
$ | (1,349 | ) | $ | (4,275 | ) | $ | (195 | ) | $ | (3,626 | ) | ||||
|
Net
loss per share-basic |
$ | (0.10 | ) | $ | (0.31 | ) | $ | (0.01 | ) | $ | (0.27 | ) | ||||
|
Net
loss per share-diluted |
$ | (0.10 | ) | $ | (0.31 | ) | $ | (0.01 | ) | $ | (0.27 | ) | ||||
|
Weighted average shares outstanding-basic
|
13,243 | 13,691 | 13,464 | 13,625 | ||||||||||||
|
Weighted average shares outstanding-diluted
|
13,243 | 13,691 | 13,464 | 13,625 | ||||||||||||
BK TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| 2018 | 2017 | ||||||||||
|
ASSETS
|
|||||||||||
|
Current assets:
|
|||||||||||
|
Cash and cash equivalents
|
$ | 11,268 | $ | 7,147 | |||||||
|
Available-for-sale securities
|
– | 9,184 | |||||||||
|
Trade accounts receivable, net
|
5,721 | 5,524 | |||||||||
|
Inventories, net
|
11,466 | 14,358 | |||||||||
|
Prepaid expenses and other current assets
|
2,401 | 772 | |||||||||
|
Total current assets
|
30,856 | 36,985 | |||||||||
|
Property, plant and equipment, net
|
2,729 | 2,201 | |||||||||
|
Investment in securities
|
1,919 | – | |||||||||
|
Deferred tax assets, net
|
3,495 | 3,317 | |||||||||
|
Other assets
|
192 | 298 | |||||||||
|
Total assets
|
$ | 39,191 | $ | 42,801 | |||||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||||||
|
Current liabilities:
|
|||||||||||
|
Accounts payable
|
$ | 5,595 | $ | 5,971 | |||||||
|
Accrued compensation and related taxes
|
2,014 | 1,364 | |||||||||
|
Accrued warranty expense
|
1,546 | 1,389 | |||||||||
|
Accrued other expenses and other current liabilities
|
292 | 1,159 | |||||||||
|
Dividends payable
|
256 | 273 | |||||||||
|
Deferred revenue
|
180 | 157 | |||||||||
|
Total current liabilities
|
9,883 | 10,313 | |||||||||
|
Deferred revenue
|
1,596 | 481 | |||||||||
|
Total liabilities
|
11,479 | 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 12,817,829 and 13,652,490 outstanding shares at December 31, 2018 and 2017, respectively
|
8,330 | 8,307 | |||||||||
|
Additional paid-in capital
|
25,867 | 25,642 | |||||||||
|
Accumulated deficit
|
(2,393 | ) | (5,450 | ) | |||||||
|
Accumulated other comprehensive income
|
– | 4,318 | |||||||||
|
Treasury stock, at cost, 1,065,108 and 192,094 shares at December 31, 2018 and 2017, respectively
|
(4,092 | ) | (810 | ) | |||||||
|
Total stockholders’ equity
|
27,712 | 32,007 | |||||||||
|
Total liabilities and stockholders’ equity
|
$ | 39,191 | $ | 42,801 | |||||||