OMNIQ Announces Q4 2020 Revenue, up 12% YoY achieving $13 Million in Q4 Revenue; Growth Accelerates in Q1 2021 with a Record $25 Million in New Orders, 100% Growth in AI-Based Technology Contracts
OMNIQ Corp. (OTCQB: OMQS) reported its financial results for Q4 and the full year 2020, highlighting a 12% YoY increase in Q4 revenue to $12.9 million but a slight overall annual revenue decline of 3.5% to $55.2 million due to pandemic impacts. The company achieved record new orders of $25 million in Q1 2021 and experienced 100% growth in AI technology sales. Despite a cash increase to over $4.5 million, OMNIQ's net loss for 2020 was $11.5 million, worsening from a $5.4 million loss in 2019. CEO Shai Lustgarten expressed optimism for 2021 growth prospects.
- Q1 2021 orders reached $25 million.
- 100% growth in AI-based technology sales orders in Q1 2021.
- Q4 2020 revenue increased by 12% YoY.
- Cash balance grew to over $4.5 million from $1.6 million year-over-year.
- 2020 revenue declined by 3.5% compared to 2019.
- Net loss for 2020 increased to $11.5 million from $5.4 million in 2019.
- Adjusted EBITDA for 2020 was a loss of $3 million, down from a gain of $1.2 million in 2019.
- Gross margin decreased to 19.8% from 24.5% in 2019.
SALT LAKE CITY, March 31, 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- and twelve-month periods ended December 31, 2020.
Select Q4 2020 and recent highlights include:
- OMNIQ won an AI based homeland security project for terror prevention in a sensitive area in the middle east.
- OMNIQ’s AI-Based VRS (Vehicle Recognition Systems) selected for Los Angeles International Airport Modernization Project by HUB Parking Technology
- Achieved record
$25 Million in new orders in Q1 2021 - Sales Orders from Artificial Intelligence (AI) Based Technology grew
100% in Q1 2021 - Q4 Sales of
$13 million represents an increase of12% YoY - Cash balance on December 31, 2020 grew to over
$4.5 million from$1.6 million on December 31, 2019
“OMNIQ closed the year with solid fourth quarter results, as revenue grew
Mr. Lustgarten continued, “Now, in 2021, we are driving record growth with 1) bringing on new AI-based projects from Homeland Security – terror prevention, Smart City and Parking automation projects, 2) repeat sales to our Fortune 500 supply chain customers which are growing in volume, and 3) laying the groundwork to cross-sell AI-based solutions to our supply chain customers. In Q1 2021, as projects have resumed, we have achieved a record
Shai Lustgarten concluded: “With over
Fourth Quarter 2020 Financial Results
OMNIQ reported revenue of
Net loss for the quarter was
Adjusted EBITDA (adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) for the fourth quarter of 2020 amounted to a loss of
Full Year 2020 Financial Results
OMNIQ reported revenues of
Net loss for 2020 was
Adjusted EBITDA for 2020 was a loss of
Financial tables follow.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31,
| (In thousands, except share and per share data) | 2020 | 2019 | ||||||
| Revenues | ||||||||
| Total Revenues, net | $ | 55,209 | $ | 57,199 | ||||
| Cost of goods sold | ||||||||
| Cost of goods sold | 44,293 | 43,165 | ||||||
| Gross profit | 10,916 | 14,034 | ||||||
| Operating expenses | ||||||||
| Research and development | 1,805 | 1,063 | ||||||
| Selling, General and Administrative | 15,802 | 13,682 | ||||||
| Depreciation | 178 | 151 | ||||||
| Intangible amortization | 2,114 | 2,002 | ||||||
| 19,899 | 16,898 | |||||||
| Loss from operations | (8,983 | ) | (2,864 | ) | ||||
| Other income (expenses): | ||||||||
| Interest expense | (2,628 | ) | (2,555 | ) | ||||
| Other (expenses) income | 112 | (23 | ) | |||||
| Total other expense | (2,516 | ) | (2,578 | ) | ||||
| Net loss before income taxes | (11,499 | ) | (5,442 | ) | ||||
| (Provision) benefit for Income Taxes | ||||||||
| Current | (5 | ) | (14 | ) | ||||
| Deferred | - | - | ||||||
| Total income tax benefit (provision) | (5 | ) | (14 | ) | ||||
| Net loss from continuing operations | $ | (11,504 | ) | $ | (5,456 | ) | ||
| Less: Preferred stock – series C dividend | (191 | ) | (146 | ) | ||||
| Net loss attributable to the common stockholders | (11,313 | ) | (5,310 | ) | ||||
| Foreign currency translation adjustment | (166 | ) | - | |||||
| Other comprehensive income (loss) | $ | (11,149 | ) | $ | (5,310 | ) | ||
| Net loss per share – basic | $ | (2.46 | ) | $ | (1.37 | ) | ||
| Net loss per share – diluted | $ | (2.66 | ) | $ | (1.37 | ) | ||
| Weighted average number of common shares outstanding – basic and diluted | 4,322,303 | 3,889,478 | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
(AUDITED)
| (In thousands, except share and per share data) | 2020 | 2019 | ||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 4,594 | $ | 1,615 | ||||
| Accounts receivable, net | 9,661 | 6,694 | ||||||
| Inventory | 1,507 | 1,889 | ||||||
| Prepaid expenses | 670 | 362 | ||||||
| Other current assets | 10 | 65 | ||||||
| Total current assets | 16,442 | 10,625 | ||||||
| Property and equipment, net of accumulated depreciation of | 289 | 463 | ||||||
| Goodwill | 14,695 | 13,921 | ||||||
| Trade name, net of accumulated amortization of | 1,028 | 1,458 | ||||||
| Customer relationships, net of accumulated amortization of | 4,479 | 6,012 | ||||||
| Other intangibles, net of accumulated amortization of | 1,042 | 1,138 | ||||||
| Cash, restricted | 533 | 533 | ||||||
| Right of Use asset | 76 | 131 | ||||||
| Other assets | 74 | 172 | ||||||
| Total assets | $ | 38,658 | $ | 34,453 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 26,811 | $ | 18,694 | ||||
| Line of credit | 4,914 | 1,365 | ||||||
| Accrued payroll and sales tax | 1,717 | 1,556 | ||||||
| Notes payable, related parties – current portion | 433 | 1,025 | ||||||
| Notes payable – current portion | 6,449 | 6,497 | ||||||
| Lease liability – current portion | 31 | 54 | ||||||
| Other current liabilities | 1,412 | 1,599 | ||||||
| Total current liabilities | 41,767 | 30,790 | ||||||
| Long term liabilities | ||||||||
| Notes payable, related party, less current portion | 683 | 1,172 | ||||||
| Accrued interest and accrued liabilities, related party | 56 | 76 | ||||||
| Notes payable, less current portion | 1 | 143 | ||||||
| Lease liability, less current portion | 48 | 80 | ||||||
| Other long term liabilities | 1,146 | 384 | ||||||
| Total liabilities | $ | 43,701 | $ | 32,615 | ||||
| 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 and 4,828,530 shares issued and Outstanding, respectively | 2 | 5 | ||||||
| Common stock; 0.001 par value; 15,000,000 shares authorized; 4,684,736 and 3,960,405 shares issued and outstanding, respectively. | 5 | 4 | ||||||
| Additional paid-in capital | 51,842 | 46,861 | ||||||
| Accumulated (deficit) | (56,726 | ) | (45,063 | ) | ||||
| Accumulated other comprehensive loss | (166 | ) | 1 | |||||
| Total stockholders’ equity | $ | (5,043 | ) | $ | 1,808 | |||
| Total liabilities and stockholders’ equity (deficit) | $ | 38,658 | $ | 34,453 | ||||
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(UNAUDITED)
| Year ended | ||||||||
| (In thousands) | December 31, | |||||||
| Adjusted EBITDA Calculation | 2020 | 2019 | ||||||
| Net loss | (11,504 | ) | (5,456 | ) | ||||
| Depreciation & amortization | 2,292 | 2,154 | ||||||
| Interest expense | 2,628 | 2,555 | ||||||
| Income taxes | 5 | 14 | ||||||
| Stock compensation | 3,478 | 1,267 | ||||||
| Gain on cancellation of insurance | - | - | ||||||
| Loss on forgiveness of debt | (948 | ) | - | |||||
| Nonrecurring loss events | 945 | 288 | ||||||
| Litigation related expenses | 42 | 355 | ||||||
| Nonrecurring financing-related costs | - | - | ||||||
| Adjusted EBITDA | (3,061 | ) | 1,177 | |||||
| Total revenues, net | 55,209 | 57,199 | ||||||
| Adjusted EBITDA as a % of total revenues, net | (5.50 | )% | 2.06 | % | ||||
Conference Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date, Time: April 1, 2021, at 11:00am ET
Toll-Free: 877-407-9210
International: 201-689-8049
Live Webcast: https://www.webcaster4.com/Webcast/Page/2310/40545
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Reference ID: 40545
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
The Company currently addresses several billion-dollar markets, including the Global Safe City market, forecast to grow to
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
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