Exhibit
99.1
Company Contact:
BK Technologies, Inc.
William Kelly, EVP & CFO
(321) 984-1414
BK Technologies Reports Fourth Quarter and Twelve Months 2018
Results
-Annual Sales Grow 25%; Annual Operating Income Increases $7.4
Million from Prior Year-
WEST
MELBOURNE, Florida – 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.
1
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
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 land mobile radio 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 and any impact from a
prolonged shutdown of the U.S. Government; the availability, terms
and deployment of capital; reliance on contract manufacturers and
suppliers; heavy reliance on sales to agencies of the U.S.
government; 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; 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 noncontrolling interest stockholder in a
corporation; impact of our capital allocation strategy; government
regulation; our business with manufacturers located in other
countries, including changes in the U.S. Government and foreign
governments’ trade and tariff policies; 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, 2018 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)
2
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
|
3
BK TECHNOLOGIES, INC.
CONSOLIDATED
BALANCE SHEETS
(in thousands,
except share data)
|
|
December
31,
|
|
|
|
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
|
4