Blueprint
Exhibit 99.1
Company Contact:
BK Technologies Corporation
William Kelly, EVP & CFO
(321) 984-1414
BK Technologies Reports Third Quarter and Nine Months 2019
Results
WEST
MELBOURNE, Florida – November 6, 2019 – BK Technologies
Corporation (NYSE American: BKTI) today announced financial and
operating results for the third quarter and nine months ended
September 30, 2019.
For the
third quarter ended September 30, 2019, revenues totaled
approximately $11.8 million, compared with approximately $13.3
million for the third quarter last year. Operating income for the
third quarter 2019 totaled approximately $295,000, compared with
operating income of approximately $878,000 for the third quarter
last year. Net income for the third quarter of 2019 was
approximately $238,000, or $0.02 per basic and diluted share,
compared with net income of approximately $650,000, or $0.05 per
basic and diluted share, for the same quarter last
year.
Net
income for the third quarter 2019 includes unrealized losses on
investments in securities totaling approximately $258,000, compared
with losses of approximately $191,000 for the same quarter last
year.
The
Company had approximately $17.1 million in working capital as of
September 30, 2019, of which $11.7 million was comprised of cash,
cash equivalents and trade receivables. This compares with working
capital of approximately $21.0 million as of December 31, 2018, of
which $17.0 million was comprised of cash, cash equivalents and
trade receivables.
Tim
Vitou, BK’s President, commented, “During the third
quarter of 2019, sales to legacy federal customers showed strength,
including a previously announced order for $3.4 million from the
U.S. Forest Service. However, we experienced sluggish demand in the
third quarter from public safety customers in state and
international markets compared with the same quarter last year. Our
gross profit margins continued their improvement from early in the
year, exceeding 43% for the quarter. For the third quarter,
although engineering and product development expenses increased
from the same quarter last year, they declined by approximately
15.4% from the preceding quarter.”
Mr.
Vitou continued, “The success of our key new product
development initiatives is vital to BK’s future growth and
success. Reflecting the importance of these programs, we recently
announced the appointment of a new Chief Technology Officer, Dr.
Branko Avanic, whose primary focus is to complete the development
of our multiband product, with an emphasis on maximizing
performance, functionality and quality. As a Ph.D. with over 30
years in land mobile radio product development, we are excited
about Dr. Avanic’s addition to the executive team and believe
he will make positive contributions that can be translated to new
products and sales growth moving forward.”
For the
nine months ended September 30, 2019, sales totaled approximately
$32.7 million, compared with approximately $38.7 million for the
same period last year. Operating loss for the nine-month period of
2019 totaled approximately $2.0 million, compared with operating
income of approximately $3.0 million for the same period last year.
Net loss for the nine months ended September 30, 2019 totaled
approximately $1.3 million, or $0.10 per basic and diluted share,
compared with net income of $1.2 million, or $0.09 per basic and
diluted share, for the same period last year.
The
financial results for the nine months ended September 30, 2019
include a gain on investment in securities totaling approximately
$186,000, compared with losses of approximately $1.4 million for
the nine-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, November 7, 2019. Shareholders
and other interested parties may participate in the conference call
by dialing 844-602-0380 (international/local participants dial
862-298-0970) and asking to be connected to the “BK
Technologies Corporation Conference Call” a few minutes
before 9:00 a.m. Eastern Time on November 7, 2019. 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 until November 18, 2019 by dialing
877-481-4010 PIN# 55679 (international/local participants dial
919-882-2331 PIN# 55679).
BK
Technologies Corporation is an American holding company deeply
rooted in the public safety communications industry, with its
operating subsidiary manufacturing high-specification
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 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 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; 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 our capital allocation strategy; impact of 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)
BK TECHNOLOGIES CORPORATION
Condensed Consolidated Statements of Operations
(In
thousands, except share and per share data) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales,
net
|
$11,805
|
$13,302
|
$32,743
|
$38,704
|
Expenses
|
|
|
|
|
Cost of
products
|
6,699
|
7,839
|
19,499
|
22,519
|
Selling, general
and administrative
|
4,811
|
4,585
|
15,247
|
13,229
|
Total
expenses
|
11,510
|
12,424
|
34,746
|
35,748
|
|
|
|
|
|
Operating income
(loss)
|
295
|
878
|
(2,003)
|
2,956
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
Net
interest income
|
33
|
28
|
134
|
63
|
(Loss) gain on
investment in securities
|
(258)
|
(191)
|
186
|
(1,392)
|
Other
expense
|
(85)
|
(48)
|
(98)
|
(274)
|
Total other
(expense) income
|
(310)
|
(211)
|
222
|
(1,603)
|
|
|
|
|
|
(Loss) income
before income taxes
|
(15)
|
667
|
(1,781)
|
1,353
|
|
|
|
|
|
Income tax benefit
(expense)
|
253
|
(17)
|
454
|
(200)
|
|
|
|
|
|
Net income
(loss)
|
$238
|
$650
|
$(1,327)
|
$1,153
|
|
|
|
|
|
Net income (loss)
per share-basic and diluted:
|
$0.02
|
$0.05
|
$(0.10)
|
$0.09
|
Weighted average
shares outstanding-basic
|
12,696,273
|
13,479,759
|
12,725,793
|
13,538,116
|
Weighted average
shares outstanding-diluted
|
12,709,057
|
13,501,587
|
12,725,793
|
13,563,990
|
BK TECHNOLOGIES CORPORATION
Condensed Consolidated Balance Sheets
(In
thousands, except share data)
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$8,825
|
$11,268
|
Trade accounts
receivable, net
|
2,871
|
5,721
|
Inventories,
net
|
14,450
|
11,466
|
Prepaid expenses
and other current assets
|
1,792
|
2,401
|
Total current
assets
|
27,938
|
30,856
|
|
|
|
Property, plant and
equipment, net
|
4,134
|
2,729
|
Right-of-use (ROU)
asset
|
2,558
|
—
|
Investment in
securities
|
2,105
|
1,919
|
Deferred tax
assets, net
|
3,911
|
3,495
|
Other
assets
|
223
|
192
|
Total
assets
|
$40,869
|
$39,191
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$6,854
|
$5,595
|
Accrued
compensation and related taxes
|
1,160
|
2,014
|
Accrued warranty
expense
|
1,390
|
1,546
|
Accrued other
expenses and other current liabilities
|
512
|
292
|
Dividends
payable
|
253
|
256
|
Short-term lease
liability
|
263
|
—
|
Note
payable-current portion
|
77
|
—
|
Deferred
revenue
|
281
|
180
|
Total current
liabilities
|
10,790
|
9,883
|
|
|
|
Note payable, net
of current portion
|
348
|
—
|
Long-term lease
liability
|
2,295
|
—
|
Deferred
revenue
|
2,419
|
1,596
|
Total
liabilities
|
15,852
|
11,479
|
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; 13,929,381 and 13,882,937
issued; and 12,672,056 and 12,817,829 outstanding shares at
September 30, 2019 and December 31, 2018, respectively
|
8,357
|
8,330
|
Additional paid-in
capital
|
26,037
|
25,867
|
Accumulated
deficit
|
(4,482)
|
(2,393)
|
Treasury stock, at
cost, 1,257,325 and 1,065,108 shares at September 30, 2019 and
December 31, 2018, respectively
|
(4,895)
|
(4,092)
|
Total
stockholders’ equity
|
25,017
|
27,712
|
Total liabilities
and stockholders’ equity
|
$40,869
|
$39,191
|