Exhibit 99.1
 
Company Contact:
BK Technologies, Inc.
William Kelly, EVP & CFO
(321) 984-1414
 
BK Technologies Reports Fourth Quarter and Twelve Months 2018 Results
-Annual Sales Grow 25%; Annual Operating Income Increases $7.4 Million from Prior Year-
 
WEST MELBOURNE, Florida – February 27, 2019 – BK Technologies, Inc. (NYSE American: BKTI) today announced financial and operating results for the fourth quarter and year ended December 31, 2018.
 
For the year ended December 31, 2018, sales increased 25.3% to approximately $49.4 million compared with approximately $39.4 million last year. Operating income for 2018 increased to approximately $2.4 million, compared with an operating loss of approximately $5.0 million last year; an improvement of approximately $7.4 million. The net loss for the year ended December 31, 2018 was approximately $195,000, or $0.01 per basic and diluted share, compared with a net loss of $3.6 million, or $0.27 per basic and diluted share last year.
 
The net loss for the year ended December 31, 2018 includes losses on investments in securities totaling approximately $2.7 million, compared with a gain of approximately $1.8 million last year.
 
For the fourth quarter ended December 31, 2018, revenues increased 13.3% to approximately $10.7 million, compared with approximately $9.4 million for the fourth quarter last year. An operating loss for the fourth quarter 2018 totaled approximately $532,000, compared with an operating loss of approximately $5.0 million for the fourth quarter last year. The net loss for the fourth quarter of 2018 was approximately $1.3 million, or $0.10 per basic and diluted share, compared with a net loss of approximately $4.3 million, or $0.31 per basic and diluted share, for the same quarter last year.
 
The net loss for the fourth quarter 2018 includes losses on investments in securities totaling approximately $1.3 million, compared with gains of approximately $546,000 for the same quarter last year.
 
The Company had approximately $21.0 million in working capital as of December 31, 2018, of which $17.0 million was comprised of cash, cash equivalents and trade receivables. This compares with working capital of approximately $26.7 million as of December 31, 2017, of which $12.7 million was comprised of cash, cash equivalents and trade receivables. During 2018, we repurchased 873,014 shares of our common stock, utilizing cash of approximately $3.3 million.
 
Tim Vitou, BK’s President, commented, “Overall, 2018 was a positive year for BK, marked by meaningful progress and improvements. Our sales growth from 2017 to 2018 was particularly encouraging, with 2018 representing one of BK’s best sales years in the last 20 years. During the year, we benefited from improvements in most every area of our operation. Many of the improvements were derived from the substantial changes we implemented since last year, and their impact is reflected in our 2018 financial and operating results compared with the prior year. These improvements and changes were the catalysts that drove sales growth, increasing gross profit margins and income from operations, while reducing inventory and generating positive cash flow. With the planned addition of new products in 2019, and a talented, quality-driven team, we should be well positioned to accelerate growth in the coming years.”
 
In June 2018, the Company changed its name from “RELM Wireless Corporation” to “BK Technologies, Inc.” and the Company’s stock began trading on the NYSE American stock exchange under the new ticker symbol “BKTI” as approved at the annual meeting of stockholders held on June 4, 2018.
 
 
1
 

Conference Call and Webcast
 
The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, on Thursday, February 28, 2019. Shareholders and other interested parties may participate in the conference call by dialing 877-407-8031 (international/local participants dial 201-689-8031) and asking to be connected to the “BK Technologies, Inc. Conference Call” a few minutes before 9:00 a.m. Eastern Time on February 28, 2019. The call will also be webcast at http://www.bktechnologies.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet webcast. 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 March 10, 2019 by dialing 877-481-4010 PIN#42399 (international/local participants dial 919-882-2331 PIN# 42399).
 
About BK Technologies
 
As an American manufacturer for over 70 years, BK Technologies is deeply rooted in the public safety communications industry, manufacturing high-specification communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. Advances include a broad new line of leading digital two-way radios compliant with APCO Project 25 specifications. BK Technologies’ products are manufactured and distributed worldwide under BK Radio and RELM brand names. The Company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at www.bktechnologies.com or directly at 1-800-821-2900. The Company’s common stock trades on the NYSE American market under the symbol “BKTI”.
 
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 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; competition in the land mobile radio industry; general economic and business conditions, including federal, state and local government budget deficits and spending limitations and any impact from a prolonged shutdown of the U.S. Government; the availability, terms and deployment of capital; reliance on contract manufacturers and suppliers; heavy reliance on sales to agencies of the U.S. government; 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; retention of executive officers and key personnel; our ability to manage our growth; our ability to identify potential candidates for, and consummate, acquisition or investment transactions, and risks incumbent to being a noncontrolling interest stockholder in a corporation; impact of our capital allocation strategy; government regulation; our business with manufacturers located in other countries, including changes in the U.S. Government and foreign governments’ trade and tariff policies; our inventory and debt levels; protection of our intellectual property rights; fluctuation in our operating results; acts of war or terrorism, natural disasters and other catastrophic events; 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; 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, 2018 and in the Company’s subsequent 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)
 
2
 
 
BK TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
 
 
 
Three Months Ended December 31,
 
 
Years Ended December 31,
 
 
 
(Unaudited)
 
 
           
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
Sales, net
 $10,676 
 $9,422 
 $49,380 
 $39,395 
 
    
    
    
    
Expenses:
    
    
    
    
Cost of products
  6,884 
  10,420 
  29,403 
  29,845 
Selling, general and administrative
  4,324 
  3,953 
  17,552 
  14,577 
Total expenses
  11,208 
  14,373 
  46,955 
  44,422 
 
    
    
    
    
Operating (loss) income
  (532)
  (4,951)
  2,425 
  (5,027)
 
    
    
    
    
Other (expense) income:
    
    
    
    
Interest income
  38 
  14 
  102 
  46 
(Loss) gain on investment in securities
  (1,279)
  546 
  (2,671)
  1,833 
Legal settlement
   
  (1,436)
   
  (1,436)
Loss on disposal of property, plant and equipment
   
  (1)
   
  (95)
Other (expense) income
  (54)
  41 
  (328)
  (106)
 
    
    
    
    
Loss before income taxes
  (1,827)
  (5,787)
  (472)
  (4,785)
 
    
    
    
    
Discrete tax item-impact of tax reform
   
  (665)
   
  (665)
Income tax benefit
  478 
  2,177 
  277 
  1,824 
 
    
    
    
    
Net loss
 $(1,349)
 $(4,275)
 $(195)
 $(3,626)
 
    
    
    
    
Net loss per share-basic
 $(0.10)
 $(0.31)
 $(0.01)
 $(0.27)
Net loss per share-diluted
 $(0.10)
 $(0.31)
 $(0.01)
 $(0.27)
 
    
    
    
    
Weighted average shares outstanding-basic
  13,243 
  13,691 
  13,464 
  13,625 
Weighted average shares outstanding-diluted
  13,243 
  13,691 
  13,464 
  13,625 
 
 
 
 
3
 
 
BK TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
 
 
December 31,
 
 
 
2018
 
 
2017
 
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $11,268 
 $7,147 
Available-for-sale securities
   
  9,184 
Trade accounts receivable, net
  5,721 
  5,524 
Inventories, net
  11,466 
  14,358 
Prepaid expenses and other current assets
  2,401 
  772 
Total current assets
  30,856 
  36,985 
 
    
    
Property, plant and equipment, net
  2,729 
  2,201 
Investment in securities
  1,919 
   
Deferred tax assets, net
  3,495 
  3,317 
Other assets
  192 
  298 
Total assets
 $39,191 
 $42,801 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
    
    
Current liabilities:
    
    
Accounts payable
 $5,595 
 $5,971 
Accrued compensation and related taxes
  2,014 
  1,364 
Accrued warranty expense
  1,546 
  1,389 
Accrued other expenses and other current liabilities
  292 
  1,159 
Dividends payable
  256 
  273 
Deferred revenue
  180 
  157 
Total current liabilities
  9,883 
  10,313 
 
    
    
Deferred revenue
  1,596 
  481 
Total liabilities
  11,479 
  10,794 
 
    
    
Commitments and contingencies
    
    
 
    
    
Stockholders’ equity:
    
    
Preferred stock; $1.00 par value; 1,000,000 authorized shares; none issued or outstanding
   
   
Common stock; $.60 par value; 20,000,000 authorized shares; 13,882,937 and 13,844,584 issued and 12,817,829 and 13,652,490 outstanding shares at December 31, 2018 and 2017, respectively
  8,330 
  8,307 
Additional paid-in capital
  25,867 
  25,642 
Accumulated deficit
  (2,393)
  (5,450)
Accumulated other comprehensive income
   
  4,318 
Treasury stock, at cost, 1,065,108 and 192,094 shares at December 31, 2018 and 2017, respectively
  (4,092)
  (810)
Total stockholders’ equity
  27,712 
  32,007 
Total liabilities and stockholders’ equity
 $39,191 
 $42,801 
 
 
4

The following information was filed by Bk Technologies, Inc. (BKTI) on Wednesday, February 27, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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