BK Technologies announces Q3 revenue of $12.8 million, Up 8% year-over-year, operating income of $1.0 million, up 253% year-over-year
WEST MELBOURNE, Fla.,- BK Technologies Corporation (NYSE American:BKTI) today announced financial and operating results for the third quarter and nine months ended September 30, 2020. The Company will host a conference call today, November 12, 2020 at 9:00AM eastern time.
Tim Vitou, BK's President, commented, "We had a solid third quarter. Revenue grew 8% and operating income surged 253%, benefitting from our recent restructuring and the related expense reductions. Operating margins more than tripled to 8.2%, as third quarter results offer a glimpse at the earnings power in our business model under our new expense structure."
Mr. Vitou continued, "We are laser-focused on continuing to grow top line revenue and leverage our current cost structure to increase bottom-line profits. We plan to execute against that goal, growing revenue and thereby earnings, at an even higher rate three ways: 1) through increased sales of existing products; 2) through ramping sales of our BKR 5000, launched in Q3 and already off to a good start with a $1.1 million sale in October; and 3) with the launch of the BKR 9000 next year, which addresses a much greater market with exponentially larger contract opportunities. Our existing, newly launched, and future growth engines enable us to create substantial short-term and long-term shareholder value, as third quarter results demonstrate."
Q3 2020 and Recent Operational Highlights
Announced the market introduction of the BKR 5000 portable radio; the first model in the new BKR Series of APCO Project 25 Land Mobile Radio products and solutions.
Received an order totaling approximately $1.1 million from an agency of the state of Tennessee for BK's new BKR 5000 Digital P-25 portable radio.
Received an order totaling approximately $1.1 million from the National Interagency Fire Center (NIFC) for BK's KNG2-Series Digital P-25 portable radios with related accessories.
Awarded a contract for up to $4.2 million from an electric utility agency of the U.S. Department of Energy (DoE) for BK's KNG2 and KNG Digital P-25 portable and mobile radios with related accessories, which will be deployed at more than 35 sites in the U.S
Third Quarter 2020 Financial Highlights
Revenue totaled approximately $12.8 million, compared with approximately $11.8 million for the third quarter last year.
Operating income totaled approximately $1.0 million compared with operating income of approximately $295,000 for the third quarter last year.
Net income was approximately $678,000, or $0.05 per basic and diluted share, compared with net income of approximately $238,000, or $0.02 per basic and diluted share, for the third quarter last year.
Nine Month 2020 Highlights
Revenue totaled approximately $33.6 million, compared with approximately $32.7 million for the same period last year.
Operating income for the nine months ended September 30, 2020 was approximately $158,000, compared with an operating loss of approximately $2.0 million for the nine-month period last year.
Net loss for the nine months ended September 30, 2020 totaled approximately $817,000, or a loss of $0.07 per basic and diluted share, compared with a net loss of approximately $1.3 million, or $0.10 per basic and diluted share, for the nine-month period last year.
For the nine months ended September 30, 2020, we recognized an unrealized loss of approximately $797,000 on our investment in 1347 Property Insurance Holdings, Inc., compared with an unrealized gain of $186,000 for the same period last year.
As of September 30, 2020, working capital totaled approximately $14.4 million, of which approximately $12.2 million was comprised of cash, cash equivalents and trade receivables. As of December 31, 2019, working capital totaled approximately $14.5 million, of which approximately $8.6 million was comprised of cash, cash equivalents and trade receivables. During the first nine months of 2020, we reduced inventory by approximately $5.0 million, or 37.6% from the start of the year, which was a primary factor enabling us to generate positive cash flow from operations.
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 12, 2020. 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 12, 2020. 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 19, 2020 by dialing 877-481-4010 PIN# 38307 (international/local participants dial 919-882-2331 PIN# 38307).
About BK Technologies
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.