UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
November 12, 2020
Date of Report (Date of earliest event reported)
BK Technologies Corporation
(Exact name of registrant as specified in its charter)
Nevada
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001-32644
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83-4064262
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(State or other jurisdiction of
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(Commission
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(IRS Employer
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incorporation or organization)
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File No.)
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Identification Number)
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7100 Technology Drive, West Melbourne, FL
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32904
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(Address of principal executive offices)
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(Zip Code)
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(321) 984-1414
(Registrant’s telephone number including area
code)
(Former name or former address, if changed since last
report)
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General
Instruction A.2. below):
[ ]
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[ ]
Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Securities registered pursuant to Section 12(b) of the
Act:
Title of Each Class
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Trading Symbol(s)
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Name of Each Exchange on Which Registered
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Common Stock, par value $.60 per share
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BKTI
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NYSE American
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Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this chapter).
Emerging
growth company [ ]
If an
emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial
Condition
On
November 12, 2020, BK Technologies Corporation (the
“Company”) announced its financial and operating
results for the third quarter and nine months ended September 30,
2020, in the press release furnished as Exhibit 99.1 to this Current Report on Form 8-K
and incorporated herein by reference.
The
information contained in Item 2.02 to this Current Report on Form
8-K, including the exhibit, is being “furnished” and,
as such, shall not be deemed to be “filed” for the
purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), or otherwise subject to
the liabilities of that section, nor shall it be incorporated by
reference into any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set
forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
Exhibit
Press
Release, dated November 12, 2020, issued by the
Company.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly
authorized.
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BK TECHNOLOGIES CORPORATION
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Date: November 12, 2020
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By:
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/s/ William P. Kelly
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William
P. Kelly
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Executive
Vice President and
Chief
Financial Officer
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Company Contact:
Hayden IR
James Carbonara
james@haydenir.com
(646)-755-7412
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, FL - November 12, 2020 / 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.
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,
some of which have been, and may further be, exacerbated by the
COVID-19 pandemic, 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, including our ability to successfully develop and
sell our anticipated new multiband product and other related
products in the planned new BKR Series product line;competition in
the land mobile radio industry; general economic and business
conditions, including federal, state and local government budget
deficits and spending limitations, any impact from a prolonged
shutdown of the U.S. Government, and the ongoing effects of the
COVID-19 pandemic; the availability, terms and deployment of
capital; reliance on contract manufacturers and suppliers;risks
associated with fixed-price contracts;heavy reliance on sales to
agencies of the U.S. Government and our ability to comply with the
requirements of contracts, laws and regulations related to such
sales;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; the impact of
the COVID-19 pandemic on the companies in which we hold
investments; impact of our capital allocation strategy;risks
related to maintaining our brand and reputation;impact of
government regulation; rising health care costs; our business with
manufacturers located in other countries, including changes in the
U.S. Government and foreign governments’ trade and tariff
policies, as well as any further impact resulting from the COVID-19
pandemic; our inventory and debt levels; protection of our
intellectual property rights; fluctuation in our operating results
and stock price; acts of war or terrorism, natural disasters and
other catastrophic events, such as the COVID-19 pandemic; 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; risks related to being a holding company; 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, 2019, its Quarterly Report on Form
10-Q for the quarters ended March 31, 2020, June 30, 2020,
September 30, 2020 and in the Company’s other 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 Income
(In thousands, except share and per share data)
(unaudited)
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Sales,
net
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$12,760
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$11,805
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$33,586
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$32,743
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Expenses
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Cost
of products
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7,560
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6,699
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20,163
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19,499
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Selling,
general and administrative expenses
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4,158
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4,811
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13,265
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15,247
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Total
expenses
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11,718
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11,510
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33,428
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34,746
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Operating income
(loss)
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1,042
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295
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158
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(2,003)
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Other (expense)
income:
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Interest
(expense) income
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(6)
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33
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(4)
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134
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(Loss)
gain on investment in securities
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(291)
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(258)
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(797)
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186
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Other
expense
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(65)
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(85)
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(144)
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(98)
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Total other
(expense) income
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(362)
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(310)
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(945)
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222
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Income (loss)
before income taxes
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680
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(15)
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(787)
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(1,781)
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Income tax
(expense) benefit
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(2)
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253
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(30)
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454
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Net income
(loss)
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$678
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$238
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$(817)
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$(1,327)
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Net earnings (loss)
per share - basic
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$0.05
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$0.02
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$(0.07)
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$(0.10)
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Net earnings (loss)
per share - diluted
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$0.05
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$0.02
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$(0.07)
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$(0.10)
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Weighted average
common shares outstanding - basic
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12,505,096
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12,696,273
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12,518,587
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12,725,793
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Weighted average
common shares outstanding - diluted
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12,517,493
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12,709,057
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12,518,587
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12,725,793
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BK
TECHNOLOGIES CORPORATION
Condensed
Consolidated Balance Sheets
(In thousands, except share data)
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ASSETS
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Current
assets:
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Cash and cash
equivalents
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$6,381
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$4,676
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Trade accounts
receivable, net
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5,778
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3,964
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Inventories,
net
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8,426
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13,513
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Prepaid expenses
and other current assets
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1,455
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1,733
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Total current
assets
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22,040
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23,886
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Property, plant and
equipment, net
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3,701
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3,964
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Right-of-use (ROU)
asset
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3,013
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2,885
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Investment in
securities
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1,838
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2,635
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Deferred tax
assets, net
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4,272
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4,373
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Other
assets
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122
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197
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Total
assets
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$34,986
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$37,940
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
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$3,129
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$5,310
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Accrued
compensation and related taxes
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1,428
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1,271
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Accrued warranty
expense
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911
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1,248
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Accrued other
expenses and other current liabilities
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660
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479
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Dividends
payable
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250
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252
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Short-term lease
liability
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496
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369
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Note payable -
current portion
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81
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78
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Deferred
revenue
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667
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369
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Total current
liabilities
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7,622
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9,376
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Note payable, net
of current portion
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268
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328
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Long-term lease
liability
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2,829
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2,606
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Deferred
revenue
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2,622
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2,354
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Total
liabilities
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13,341
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14,664
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Commitments and
contingencies
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Stockholders'
equity:
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Preferred stock;
$1.00 par value; 1,000,000 authorized
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shares;
none issued or outstanding
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-
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Common stock; $0.60
par value; 20,000,000 authorized shares;
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13,962,366
and 13,929,381 issued and 12,596,923 and 12,596,923
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outstanding
shares at September 30, 2020 and December 31, 2019,
respectively
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8,377
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8,357
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Additional paid-in
capital
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26,281
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26,095
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Accumulated
deficit
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(7,611)
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(6,043)
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Treasury Stock, at
cost, 1,450,400 and 1,332,458 shares at
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September
30, 2020 and December 31, 2019, respectively
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(5,402)
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(5,133)
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Total stockholders'
equity
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21,645
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23,276
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Total liabilities
and stockholders' equity
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$34,986
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$37,940
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