Subsequent to quarter end, OMNIQ announced a definitive agreement to acquire technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings
SALT LAKE CITY, May 13, 2021 (GLOBE NEWSWIRE) — OMNIQ Corp. (OTCQB: OMQS) (“OMNIQ” or “the Company”), a provider of Supply Chain and Artificial Intelligence (AI)-based solutions, today announced its financial results for the three month period ended March 31, 2021.
Select Q1 2021 and recent highlights include:
- Subsequent to quarter end, OMNIQ announced a definitive agreement to acquire technology leader, Dangot Computers Ltd., creating a combined $91 Million Revenue provider of automation and object identification solutions, positioned to drive increased adoption of OMNIQ’s AI Based Offerings
- Q1 Sales of $19.8 million Increased 43% YoY
- Sales Orders from Artificial Intelligence (AI) Based Technology grew 100% in Q1 2021
- Secured a $6.8 Million Purchase Agreement from a leading specialty retailer
- Received a $6.1 Million Purchase Agreement from Leading U.S. Food Distributor
- Won an AI based homeland security project for terror prevention in a sensitive area in the middle east.
- AI Based Vehicle Recognition Systems Selected for Urban Traffic Management and Regulation Enforcement Projects
Shai Lustgarten, CEO of OMNIQ, “2021 is off to a great start. Last week we announced a definitive agreement to acquire Dangot, forming a combined $91 Million revenue automation and object identification solutions powerhouse, well placed to drive increased sales of our AI based offerings.”
“We also recorded a strong first quarter on an organic basis” said Shai Lustgarten, CEO of OMNIQ. “Revenue increased 43% to nearly $20 million and AI based technology contracts grew 100% year over year. As we add new AI based projects, book repeat supply chain sales, in higher volumes, from our Fortune 500 customers, and cross-sell AI-based solutions to our supply chain customers, and now to Dangot customers, we expect rapid growth to continue. ”
First Quarter 2020 Financial Results
OMNIQ reported revenue of $19.8 million for the quarter ended March 31, 2021, an increase of 43% from $13.8 million in the first quarter of 2020. The revenue increase reflects higher demand from certain customers during the quarter as well as continued traction in our markets. Total operating expenses for the quarter were $5.5 million, compared with $5.1 million in the first quarter of 2020.
Net loss for the quarter was $3.3 million, or a loss of $.70 per basic share, compared with a loss of $2.9 million, or a loss of $.74 per basic share, for the first quarter of last year.
Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the first quarter of 2020 amounted to a loss of $1.2 million compared with an adjusted EBITDA loss of $834 thousand in the first quarter of 2020.
After fully paying off its $5.0 million credit line, cash was $2.7 million for the period ended March 31, 2021.
Financial tables follow.
OMNIQ CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| For the three months ended | ||||||||
| 31-Mar | ||||||||
| (In thousands, except share and per share data) | 2021 | 2020 | ||||||
| Revenues | ||||||||
| Total Revenues | $ | 19,751 | $ | 13,799 | ||||
| Cost of goods sold | ||||||||
| Cost of goods sold | 17,115 | 10,763 | ||||||
| Gross profit | 2,636 | 3,036 | ||||||
| Operating expenses | ||||||||
| Research and development | 494 | 386 | ||||||
| Selling, general and administrative | 4,438 | 4,137 | ||||||
| Depreciation | 43 | 47 | ||||||
| Amortization | 525 | 502 | ||||||
| Total operating expenses | 5,500 | 5,072 | ||||||
| Income (loss) from operations | (2,864 | ) | (2,036 | ) | ||||
| Other income (expenses): | ||||||||
| Interest expense | (589 | ) | (795 | ) | ||||
| Other (expenses) income | 110 | (42 | ) | |||||
| Total other expenses | (479 | ) | (837 | ) | ||||
| Net loss before Income Taxes | (3,343 | ) | (2,873 | ) | ||||
| Provision for Income Taxes | ||||||||
| Current | – | – | ||||||
| Total Provision for Income Taxes | – | – | ||||||
| Net loss attributable to OMNIQ Corp. | $ | (3,343 | ) | $ | (2,873 | ) | ||
| Less: Preferred stock – Series C dividend | (31 | ) | (72 | ) | ||||
| Net loss attributable to the common stockholders | $ | (3,374 | ) | $ | (2,945 | ) | ||
| Foreign currency translation adjustment | 105 | – | ||||||
| Other comprehensive income (loss) | (3,269 | ) | (2,945 | ) | ||||
| Net loss per share – basic | $ | (0.70 | ) | $ | (0.74 | ) | ||
| Net loss per share from continuing operations – basic | $ | (0.70 | ) | $ | (0.74 | ) | ||
| Weighted average number of common shares outstanding – basic | 4,700,737 | 3,984,006 | ||||||
OMNIQ CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
| (In thousands, except share and per share data) | As of | |||||||
| 31-Mar-21 | 31-Dec-20 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 2,669 | $ | 4,594 | ||||
| Accounts receivable, net | 11,428 | 9,661 | ||||||
| Inventory | 2,347 | 1,507 | ||||||
| Prepaid expenses | 634 | 670 | ||||||
| Other current assets | 12 | 10 | ||||||
| Total current assets | 17,090 | $ | 16,442 | |||||
| Property and equipment, net of accumulated depreciation of $642 and $600, respectively | 248 | 289 | ||||||
| Goodwill | 14,695 | 14,695 | ||||||
| Trade name, net of accumulated amortization of $3,464 and $3,362, respectively | 927 | 1,028 | ||||||
| Customer relationships, net of accumulated amortization of $8,456 and $8,111, respectively | 4,133 | 4,479 | ||||||
| Other intangibles, net of accumulated amortization of $415 and $382, respectively | 1,008 | 1,042 | ||||||
| Restricted Cash | – | 533 | ||||||
| Right of use lease asset | 69 | 76 | ||||||
| Other assets | 42 | 74 | ||||||
| Total assets | $ | 38,212 | $ | 38,658 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 34,074 | $ | 26,811 | ||||
| Line of credit | – | 4,914 | ||||||
| Accrued payroll and sales tax | 1,364 | 1,717 | ||||||
| Notes payable, related parties – current portion | 390 | 433 | ||||||
| Notes payable – current portion | 6,449 | 6,449 | ||||||
| Lease liability – current portion | 32 | 31 | ||||||
| Other current liabilities | 1,380 | 1,412 | ||||||
| Total current liabilities | 43,689 | 41,767 | ||||||
| Long term liabilities | ||||||||
| Notes payable, related party, less current portion | 585 | 683 | ||||||
| Accrued interest and accrued liabilities, related party | 59 | 56 | ||||||
| Notes payable, less current portion | – | 1 | ||||||
| Lease liability | 40 | 48 | ||||||
| Other long-term liabilities | 1,178 | 1,146 | ||||||
| Total liabilities | 45,551 | 43,701 | ||||||
| Stockholders’ equity (deficit) | ||||||||
| Series A Preferred stock; $0.001 par value; 1,000,000 shares designated, 0 shares issued and outstanding | – | – | ||||||
| Series B Preferred stock; $0.001 par value; 1 share designated, 0 shares issued and outstanding | – | – | ||||||
| Series C Preferred stock; $0.001 par value; 5,000,000 shares designated, 2,145,030 shares issued and outstanding, respectively | 2 | 2 | ||||||
| Common stock; $0.001 par value; 15,000,000 shares authorized; 4,716,218 and 4,684,736 shares issued and outstanding, respectively. | 5 | 5 | ||||||
| Additional paid-in capital | 52,819 | 51,842 | ||||||
| Accumulated (deficit) | (60,104 | ) | (56,726 | ) | ||||
| Accumulated other comprehensive loss | (61 | ) | (166 | ) | ||||
| Total stockholders’ equity (deficit) | (7,339 | ) | (5,043 | ) | ||||
| Total liabilities and stockholders’ equity (deficit) | $ | 38,212 | $ | 38,658 | ||||
OMNIQ Corp.
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
| Three months ended | |||||||||
| (In thousands) | March 31, | ||||||||
| Adjusted EBITDA Calculation | 2021 | 2020 | |||||||
| Net loss | (3343 | ) | (2873 | ) | |||||
| Depreciation & amortization | 566 | 548 | |||||||
| Interest expense | 589 | 795 | |||||||
| Income taxes | – | – | |||||||
| Stock compensation | 1107 | 544 | |||||||
| Nonrecurring loss events | (110 | ) | 153 | ||||||
| Adjusted EBITDA | (1191 | ) | (833 | ) | |||||
| Total revenues, net | 19751 | 13,799 | |||||||
| Adjusted EBITDA as a % of total revenues, net | (6.03 | ) | % | (6.04 | ) | ||||
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: May 14, 2021, at 11:00am ET
Toll-Free: 877-407-9210
International: 201-689-8049
Live Webcast: https://www.webcaster4.com/Webcast/Page/2310/41133
Conference Call Replay Information
Toll-Free: 877-481-4010
Reference ID: 41133
About OMNIQ Corp.
OMNIQ Corp. (OTCQB: OMQS) provides computerized and machine vision image processing solutions that use patented and proprietary AI technology to deliver data collection, real-time surveillance and monitoring for supply chain management, homeland security, public safety, traffic & parking management and access control applications. The technology and services provided by the Company help clients move people, assets and data safely and securely through airports, warehouses, schools, national borders, and many other applications and environments.
OMNIQ’s customers include government agencies and leading Fortune 500 companies from several sectors, including manufacturing, retail, distribution, food and beverage, transportation and logistics, healthcare, and oil, gas, and chemicals. Since 2014, annual revenues have grown to more than $50 million from clients in the USA and abroad.
The Company currently addresses several billion-dollar markets, including the Global Safe City market, forecast to grow to $29 billion by 2022, and the Ticketless Safe Parking market, forecast to grow to $5.2 billion by 2023. For more information, visit www.omniq.com.
Information about Forward-Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
This release contains “forward-looking statements” that include information relating to future events and future financial and operating performance. The words “anticipate”, “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company’s products particularly during the current health crisis, the introduction of new products, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, the Company’s ability to manage credit and debt structures from vendors, debt holders and secured lenders, the Company’s ability to successfully integrate its acquisitions, and other information that may be detailed from time-to-time in OMNIQ Corp.’s filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include, among others, statements regarding revenue growth, driving sales, operational and financial initiatives, cost reduction and profitability, and simplification of operations. For a more detailed description of the risk factors and uncertainties affecting OMNIQ Corp., please refer to the Company’s recent Securities and Exchange Commission filings, which are available at https://www.sec.gov. OMNIQ Corp. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by law.
Investor Contact:
James Carbonara
Hayden IR
(646)-755-7412
james@haydenir.com
Brett Maas
Hayden IR
(646) 536-7331
brett@haydenir.com