OMNIQ Corp. (NASDAQ: OMQS) (“OMNIQ” or “the
Company”), a provider of Supply Chain and Artificial Intelligence
(AI)-based solutions, today announced its financial results for the
three months ended March 31, 2021.
OMNIQ’s 2022 continuous momentum:
- 33%
Growth in Q1 Revenue compared to Q1 2021
- 132%
increase in Gross Profit compared to Q1 2021.
- 6%
sequential Revenue increase over previous record on Q4 2021.
- Gross
margin 23.3% compared to 13.3% in Q1 2021.
- Trailing
6 months revenue exceeds $51Million, annual run rate of over
$100M
- Along
with improvement of Gross Profit, the Company is taking measures to
further improve profitability in the near future.
- On April
5, 2022 the Company completed the acquisition of 100% of Dangot
Computers Ltd., a leader in providing sophisticated solutions of
automation for Hospitals, Restaurants, Supermarkets, Government
Institutions and others.
- Synergy
with Dangot generated immediate joint projects with OMNIQ’s AI
solutions for the US market.
- OMNIQ’s Q Shield’s AI based
law enforcement solution offered to municipalities is
experiencing positive momentum as seven (7) cities in the US
have already contracted and more are in the pipeline. Revenue model
is based on recurring revenue sharing.
- The Company signed an agreement
with a reputable reseller aiming to accelerate sales of the Q
Shield to many more cities.
-
Artificial Intelligence (AI) solutions operate in critical spots in
the Middle East and South America contributing significant impact
on public safety and terror prevention.
-
Uber awarded OMNIQ’s LPR with the coveted
“Innovator Award” for contributing to traffic flow in the
Philadelphia International Airport.
Shai Lustgarten, CEO of omniQ commented: “We are
experiencing a great start of 2022. Our focus remains on Q Shield’s
deployments in the Public Safety sector, growing sales of omniQ’s
AI Parking Solutions, increasing sales of omniQ’s Supply Chain
automation products, in parallel to making our financial
infrastructure stronger. We are facing increased demand for our
products in multiple verticals and markets.
Our mission is to improve efficiencies, help to
secure public safety and enable better quality of life for people
using our systems. Our customer base includes some of the most
demanding customers in the world, including Governments, Hospitals,
Major Supermarket chains, Security agencies and Municipalities
among others.
Following the success of the first installations
of our Q Shield turnkey AI based systems we continued our focus on
indirect sales channels, partnering with VAR’s (Value Added
Resellers). We recently signed agreement with a reputable VAR whom
we believe will accelerate the sales of Q Shield that we consider
as an important growth engine with an endless market potential.
In addition to the strong revenue and gross
profit in our Q1 results we note improvement in all financial
parameters. These efforts will continue to be in our focus for
further improvements in the near future.
Achieving trailing six months sales of over
$51M, resulting into annual revenue run rate of $102M we feel
stronger and confident while fulfilling our plan to elevate OMNIQ
to new spheres.” Concluded Mr. Lustgarten.
First Quarter 2021 Financial
Results
OMNIQ reported revenue of $26.3 million for
the quarter ended March 31, 2022, an increase of 33%
from $19.8 million in the first quarter of 2021. The
revenue increase reflects the consolidation of our financial
statements with Dangot Computers, Ltd. which we acquired in July
2021. We also see a higher demand from certain customers
during the quarter as well as continued traction in our markets.
Total operating expenses for the quarter were $7.5 million,
compared with $5.5 million in the first quarter of 2021.
Net loss for the quarter was $2.6 million,
or a loss of $.34 per basic share, compared with a loss of
$3.3 million, or a loss of $.70 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 2022 amounted to a loss of $189
thousand compared with an adjusted EBITDA loss of $1.2
million in the first quarter of 2021.
Cash balance at March 31, 2022 was 6.9
million compared to $7.1M on December 31, 2021.
OMNIQ CORP.CONDENSED
CONSOLIDATED BALANCE
SHEETS(UNAUDITED)
|
|
As of |
|
(In thousands, except share
and per share data) |
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,922 |
|
|
$ |
7,085 |
|
Accounts receivable, net |
|
|
29,789 |
|
|
$ |
27,123 |
|
Inventory |
|
|
7,517 |
|
|
$ |
6,955 |
|
Prepaid expenses |
|
|
1,443 |
|
|
$ |
1,987 |
|
Other current assets |
|
|
10 |
|
|
$ |
9 |
|
Total current assets |
|
|
45,681 |
|
|
$ |
43,159 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated depreciation of $1,483
and $2,203 respectively |
|
|
1,009 |
|
|
$ |
1,127 |
|
Goodwill |
|
|
16,453 |
|
|
$ |
16,453 |
|
Trade name, net of accumulated amortization of $4,011 and $3,863,
respectively |
|
|
2,272 |
|
|
$ |
2,421 |
|
Customer relationships, net of accumulated amortization of $9,936
and $9,660, respectively |
|
|
5,793 |
|
|
$ |
6,069 |
|
Other intangibles, net of accumulated amortization of $1,485 and
$1,457, respectively |
|
|
818 |
|
|
$ |
865 |
|
|
|
|
|
|
|
|
|
|
Right of use lease asset |
|
|
3,278 |
|
|
$ |
3,556 |
|
Other assets |
|
|
1,630 |
|
|
$ |
1,431 |
|
Total
assets |
|
$ |
76,934 |
|
|
$ |
75,081 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
48,348 |
|
|
$ |
45,553 |
|
Line of credit |
|
|
7,353 |
|
|
|
5,951 |
|
Accrued payroll and sales tax |
|
|
3,365 |
|
|
|
2,658 |
|
Notes payable, related parties – current portion |
|
|
390 |
|
|
|
390 |
|
Notes payable – current portion |
|
|
7,547 |
|
|
|
7,521 |
|
Lease liability – current portion |
|
|
1,304 |
|
|
|
1,341 |
|
Other current liabilities |
|
|
2,681 |
|
|
|
2,683 |
|
Total current liabilities |
|
|
70,988 |
|
|
|
66,097 |
|
|
|
|
|
|
|
|
|
|
Long term
liabilities |
|
|
|
|
|
|
|
|
Notes payable, related party, less current portion |
|
|
195 |
|
|
|
293 |
|
Accrued interest and accrued liabilities, related party |
|
|
68 |
|
|
|
63 |
|
Notes payable, less current portion |
|
|
3,128 |
|
|
|
2,646 |
|
Lease liability |
|
|
2,024 |
|
|
|
2,266 |
|
Other long term liabilities |
|
|
73 |
|
|
|
1,418 |
|
Total
liabilities |
|
|
76,476 |
|
|
|
72,783 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity (deficit) |
|
|
|
|
|
|
|
|
Series A Preferred stock; $0.001 par value; 2,000,000 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; 3,000,000 shares
designated, 544,500 shares issued and outstanding,
respectively |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
Common stock; $0.001 par value; 15,000,000 shares authorized;
7,560,001 and 7,459,534 shares issued and outstanding,
respectively. |
|
|
20 |
|
|
|
20 |
|
Additional paid-in capital |
|
|
71,413 |
|
|
|
70,606 |
|
Accumulated deficit |
|
|
(73,255 |
) |
|
|
(70,571 |
) |
|
|
|
|
|
|
|
|
|
Cumulative Translation Adjustment |
|
|
(164 |
) |
|
|
(154 |
) |
Total OmniQ stockholders’
deficit |
|
|
(1,985 |
) |
|
|
(98 |
) |
Non-controlling interest |
|
|
2,443 |
|
|
|
2,396 |
|
TOTAL STOCKHOLDERS’ EQUITY |
|
|
458 |
|
|
|
2298 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
76,934 |
|
|
$ |
75,081 |
|
The accompanying unaudited notes should be read
on conjunction with these unaudited condensed consolidated
financial statements.
OMNIQ CORP.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS(UNAUDITED)
|
|
For the three months |
|
|
|
ending March 31, |
|
(In thousands, except share
and per share data) |
|
2022 |
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
Total Revenues |
|
$ |
26,322 |
|
|
$ |
19,751 |
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
20,194 |
|
|
|
17,115 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
6,128 |
|
|
|
2,636 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
Research & Development |
|
|
523 |
|
|
|
494 |
|
Selling, general and administrative |
|
|
6,476 |
|
|
|
4,438 |
|
Depreciation |
|
|
93 |
|
|
|
43 |
|
Amortization |
|
|
445 |
|
|
|
525 |
|
Total operating expenses |
|
|
7,537 |
|
|
|
5,500 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,409 |
) |
|
|
(2,864 |
) |
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(812 |
) |
|
|
(589 |
) |
Other (expenses) income |
|
|
(264 |
) |
|
|
110 |
|
Total other expenses |
|
|
(1,076 |
) |
|
|
(479 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Before Income
Taxes |
|
|
(2,485 |
) |
|
|
(3,343 |
) |
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes |
|
|
|
|
|
|
|
|
Current |
|
|
(84 |
) |
|
|
- |
|
Total Provision for Income
Taxes |
|
|
(84 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(2,569 |
) |
|
$ |
(3,343 |
) |
Net income attributable to
noncontrolling interest |
|
|
67 |
|
|
|
- |
|
Net Loss attributable to OmniQ
Corp |
|
$ |
(2,636 |
) |
|
$ |
(3,343 |
) |
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(2,569 |
) |
|
$ |
(3,343 |
) |
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment |
|
|
(10 |
) |
|
|
105 |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
|
(2,579 |
) |
|
|
(3,238 |
) |
|
|
|
|
|
|
|
|
|
Reconciliation of net loss to
net loss attributable to common shareholders |
|
|
|
|
|
|
|
|
Net loss |
|
|
(2,569 |
) |
|
|
(3,343 |
) |
|
|
|
|
|
|
|
|
|
Less: Preferred stock – Series
C dividend |
|
|
(48 |
) |
|
|
(31 |
) |
|
|
|
|
|
|
|
|
|
Net loss less series C
dividend |
|
$ |
(2,617 |
) |
|
$ |
(3,374 |
) |
|
|
|
|
|
|
|
|
|
Net income after series C
dividend attributable to noncontrolling interest |
|
|
67 |
|
|
|
- |
|
Net loss after series C
dividend attributable to common stockholders’ of OmniQ Corp |
|
$ |
(2,684 |
) |
|
$ |
(3,374 |
) |
Net (loss) per share - basic
attributable to common stockholders’ of OmniQ Corp |
|
$ |
(0.34 |
) |
|
$ |
(0.70 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding - basic |
|
|
7,511,376 |
|
|
|
4,700,737 |
|
OMNIQ Corp. |
RECONCILIATION OF GAAP MEASURES TO NON-GAAP
MEASURES |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
(In thousands) |
|
March 31, |
|
Adjusted EBITDA Calculation |
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(2,569.00 |
) |
|
|
|
(3,343 |
) |
|
Depreciation &
amortization |
|
|
538.00 |
|
|
|
|
566 |
|
|
Interest expense |
|
|
811.00 |
|
|
|
|
589 |
|
|
Income taxes |
|
|
84.00 |
|
|
|
|
- |
|
|
Stock compensation |
|
|
457.00 |
|
|
|
|
1,107 |
|
|
Nonrecurring loss events |
|
|
265.00 |
|
|
|
|
(110 |
) |
|
Adjusted EBITDA |
|
|
(414.00 |
) |
|
|
|
(1,191 |
) |
|
|
|
|
|
|
|
|
|
|
Total revenues, net |
|
|
26,322.00 |
|
|
|
|
19,751 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of
total revenues, net |
|
|
(2 |
) |
% |
|
|
(6 |
) |
% |
Earnings Call Details
OMNIQ will host a conference call and
webcast on Tuesday, May 17th, 2022 at 11:00 a.m. Eastern Time to
discuss financial results for the first quarter ended March 31,
2022.
To access the live webcast, please click on
this webcast link to register, or go to the Company’s
website at www.omniQ.com, and click on the About tab, then
Investors.
To participate in the call by phone, dial (877)
407-9210 approximately five minutes prior to the scheduled start
time. International callers please dial (201) 689-8049.
A replay of the teleconference will be available
until June 17th, 2022 and may be accessed by dialing (877)
481-4010. International callers may dial (877) -545-0523. Callers
should use conference ID: 427335
About omniQ
Corp.
omniQ Corp. (Nasdaq: 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.
Contact:
Corporate ContactKoko Kimball (385)
758-9241IR@omniq.com
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