Revenue Growth of 15% to $5.7
million
Gross Profit of 28%
Adjusted EBITDA Improvement of 41% to Loss
of $1.0 million
Boxlight Corporation (Nasdaq: BOXL) (“Boxlight”), a leading
provider of interactive technology solutions for the global
education market, today announced the Company's financial results
for the first quarter ended March 31, 2020.
Key Financial Highlights for Q1 2020
- Revenues increased by 15% to $5.7 million
- Customer orders increased by 85% to $7.6 million
- Gross profit decreased by 568 basis points to 28%
- Operating loss increased by 14% to $2.7 million
- Adjusted EBITDA loss improved by 41% to $1.0 million
- Adjusted EPS improved by 51% to a loss of $0.08
- Ended quarter with $4.5 million in backorders
Key Business Highlights for Q1 2020
- Selected by Shelby County Schools, Tennessee as approved
provider of interactive flat panel displays
- Received $750,000 follow on investment from The Lind
Partners
- Awarded district-wide contract for interactive flat panels in
Netherland Independent School District, Texas
- Implemented Mimio MyBot educational robotics system with the
Giant Moon Map™ and Giant Mars Map™programs in Union County Public
Schools, North Carolina
- Announced Daniel Leis as Global Head of Sales and
Marketing
- Announced Michael Pope as Chairman and Chief Executive
Officer
- Entered into national distribution agreement with D&H
Distributing
Management Commentary
“I would like to thank our friends and shareholders for their
tremendous support during this critical time as a Company,”
commented Michael Pope, Chairman and Chief Executive Officer. “We
have experienced significant transition since our 2016 merger of
Mimio and the Boxlight Group, and our subsequent IPO in 2017. Since
that time, we have attracted a tremendous management team,
assembled a global channel partner network, closed the acquisitions
of Cohuba, Qwizdom, EOS Education, Modern Robotics, Robo3d and
MyStemKits, continued to innovate with award-winning products and
services, consolidated our operations and supply chain, and
organized our systems and accounting under one ERP system. We are
proud of our progress, and I believe we are better positioned as a
company today than any time in our history.
I look forward to sharing additional commentary on our earnings
call concerning our product strategy, response to the COVID-19
crisis, significant operating expense reductions, plans to improve
our balance sheet and expectation to generate future profits.
Our company mission and vision have not changed. We are
committed to become the leader of innovative and effective
educational technology solutions. We aim to improve learning and
engagement in classrooms, and help educators enhance student
outcomes and build essential skills. We understand that we must be
nimble, flexible and innovate to meet the demands for today’s
evolving education requirements, and we are doing just that.”
Financial Results for the Three Months Ended March 31,
2020
Revenue for the three months ended March 31, 2020 was $5.7
million, an increase of $0.7 million or 15%, compared to $5.0
million for the three months ended March 31, 2019. Revenue growth
reflects increased sales volume related to US panel sales.
Gross profit for the three months ended March 31, 2020 was $1.6
million, a decrease of $0.1 million, compared to $1.7 million for
the three months ended March 31, 2019. The resulting gross margin
was 27.8% for the three months ended March 31, 2020, compared to
33.4% for the three months ended March 31, 2019.
General and Administrative expenses for the three months ended
March 31, 2020 was $3.9 million, a decrease of $0.1 million or 5%,
compared to $3.8 million for the three months ended March 31, 2019.
The expense remained relatively flat year over year.
Research and development expenses for the three months ended
March 31, 2020 was $0.3 million, an increase of $0.1 million or
34%, compared to $0.2 million for the three months ended March 31,
2019. The expense remained relatively flat year over year.
Operating loss for the three months ended March 31, 2020 was
$2.7 million, an increase of $0.4 million, or 14%, compared to $2.3
million for the three months ended March 31, 2019.
Adjusted EBITDA loss for the three months ended March 31, 2020
was $1.0 million, a decrease of $0.8 million or 41% compared to
$1.8 million for the three months ended March 31, 2019.
Net loss for the three months ended March 31, 2020 was $1.9
million, a decrease of $2.7 million, or 58%, compared to $4.6
million for the three months ended March 31, 2019. The resulting
EPS loss for the three months ended March 31, 2020 was $(0.16) per
diluted share, compared to $(0.45) per diluted share for the three
months ended March 31, 2019.
At March 31, 2020, Boxlight had $0.6 million of cash, $19.3
million of total assets, $7.4 debt, and 13.9 million shares issued
and outstanding.
1st Quarter 2020 Financial Results Conference Call
Management will host a conference call to discuss the first
quarter 2020 financial results on Monday, May 18, 2020 at 11:00
a.m. Eastern Time. The conference call details are as follows:
Date:
Monday, May 18, 2020
Time:
11:00 a.m. Eastern Time / 8:00 a.m.
Pacific Time
Dial-in:
1-888-428-7458 (Domestic)
1-862-298-0702 (International)
Webcast:
https://www.webcaster4.com/Webcast/Page/2213/34810
For those unable to participate during the live broadcast, a
replay of the call will also be available from until 11:59 p.m.
Eastern Time on Monday, June 1, 2020 by dialing 1-877-481-4010
(domestic) and 1-919-882-2331 (international) and referencing the
replay pin number: 34810.
Use of Non-GAAP Financial Measures
To supplement Boxlight’s financial statements presented on a
GAAP basis, Boxlight provides EBITDA and Adjusted EBITDA as
supplemental measures of its performance.
To provide investors with additional insight and allow for a
more comprehensive understanding of the information used by
management in its financial and decision-making surrounding pro
forma operations, we supplement our consolidated financial
statements presented on a basis consistent with U.S. generally
accepted accounting principles, or GAAP, with EBITDA and Adjusted
EBITDA, non-GAAP financial measures of earnings. EBITDA represents
net income before income tax expense (benefit), interest expense,
depreciation and amortization. Adjusted EBITDA represents EBITDA
plus stock-based compensation and change in fair value of
derivative liabilities. Our management uses EBITDA and Adjusted
EBITDA as financial measures to evaluate the profitability and
efficiency of our business model. We use these non-GAAP financial
measures to access the strength of the underlying operations of our
business. These adjustments, and the non-GAAP financial measures
that are derived from them, provide supplemental information to
analyze our operations between periods and over time. We find this
especially useful when reviewing pro forma results of operations,
which include large non-cash amortizations of intangible assets
from acquisitions and stock-based compensation. Investors should
consider our non-GAAP financial measures in addition to, and not as
a substitute for, financial measures prepared in accordance with
GAAP.
About Boxlight Corporation
Boxlight Corporation (Nasdaq: BOXL) (“Boxlight”) is a leading
provider of technology solutions for the global education market.
The company aims to improve learning and engagement in classrooms
and to help educators enhance student outcomes, by developing the
products they need. The company develops, sells, and services its
integrated, interactive solution suite including software,
classroom technologies, professional development and support
services. For more information about the Boxlight story, visit
http://www.boxlight.com.
Forward Looking Statements
This press release may contain information about Boxlight's view
of its future expectations, plans and prospects that constitute
forward-looking statements. Actual results may differ materially
from historical results or those indicated by these forward-looking
statements as a result of a variety of factors including, but not
limited to, risks and uncertainties associated with its ability to
maintain and grow its business, variability of operating results,
its development and introduction of new products and services,
marketing and other business development initiatives, competition
in the industry, etc. Boxlight encourages you to review other
factors that may affect its future results in Boxlight's filings
with the Securities and Exchange Commission.
Boxlight Corporation Consolidated Balance Sheets
March 31
December 31
2020
2019
ASSETS Current asset: Cash and cash
equivalents
$
612,936
$
1,172,994
Accounts receivable-trade, net of allowances
4,260,345
3,665,057
Inventories, net of reserves
2,884,640
3,318,857
Prepaid expenses and other current assets
1,179,349
1,765,741
Total current assets
8,937,270
9,922,649
Property and equipment, net of accumulated depreciation
203,487
207,397
Intangible assets, net of accumulated amortization
5,343,557
5,559,097
Goodwill
4,723,549
4,723,549
Other assets
59,649
56,193
Total Assets
$
19,267,512
$
20,468,885
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable and accrued expenses
$
4,794,939
$
4,721,417
Accounts payable and accrued expenses - related parties
3,301,412
5,031,367
Warranty
31,448
12,775
Current portion of debt-third parties
5,264,057
4,536,227
Current portion of debt- related parties
405,550
368,383
Earn-out payable - related party
351,595
387,118
Deferred revenues - short-term
1,733,660
1,972,565
Derivative liabilities
117,941
146,604
Other short-term liabilities
54,640
31,417
Total current liabilities
16,055,242
17,207,873
Deferred revenues - long-term
2,759,831
2,582,602
Long-term debt - third parties
1,058,797
1,201,139
Long-term debt - related party
53,561
108,228
Other long term liabilities
12,389
16,696
Total liabilities
19,939,820
21,116,538
Commitments and contingencies
Stockholders's
equity: Preferred stock, $0.0001 par value, 50,000,000 shares
authorized; 167,972 shares issued and outstanding
17
17
Common stock, $0.0001 par value, 200,000,000 shares authorized;
13,871,087 and 11,698,697 Class A shares issued and outstanding,
respectively
1,388
1,170
Additional paid-in capital
32,763,992
30,735,815
Subscriptions receivable
(200
)
(200
)
Accumulated deficit
(33,296,054
)
(31,346,431
)
Other comprehensive loss
(141,451
)
(38,024
)
Total stockholders' equity
(672,308
)
(647,653
)
Total liabilities and stockholders' equity
$
19,267,512
$
20,468,885
Boxlight Corporation Consolidated Statement of
Operations
Three Months Ended
March 31,
2020
2019
Revenues
$
5,723,049
$
4,993,399
Cost of Revenues
4,131,989
3,321,332
Gross Profit
1,591,060
1,672,067
27.80
%
33.49
%
Operating Expense: General and administrative expenses
3,937,729
3,766,068
Research and development expenses
316,756
235,996
Total operating expense
4,254,485
4,002,064
Loss from operations
(2,663,425
)
(2,329,997
)
Other income(expense): Interest expense, net
(459,320
)
(280,603
)
Other income (expense), net
57,950
21,209
Gain on settlement of liabilities, net
1,086,509
146,434
Change in fair value of derivative liabilities
28,663
(2,162,495
)
Total other income (expense)
713,802
(2,275,455
)
Net Loss
$
(1,949,623
)
$
(4,605,452
)
Comprehensive loss: Net Loss
$
(1,949,623
)
$
(4,605,452
)
Other comprehensive income (loss): Foreign currency translation
gain (loss)
(103,427
)
(38,147
)
Total comprehensive loss
$
(2,053,050
)
$
(4,643,599
)
Net loss per common share - basic
(0.16
)
(0.45
)
Net loss per common share - diluted
(0.16
)
(0.45
)
Weighted average number of common shares outstanding - basic
12,493,786
10,255,808
Weighted average number of common shares outstanding - diluted
12,493,786
10,255,808
Boxlight Corporation
Reconciliation of Net Loss to
Adjusted EBITDA
Three Months Ended
March 31,
2020
2019
Net Loss
$
(1,950
)
$
(4,605
)
Depreciation and amortization
219
242
Interest expense
459
281
EBITDA
$
(1,272
)
$
(4,082
)
Stock compensation expense
271
161
Change in fair value of derivative liabilities
(29
)
2,162
Adjusted EBITDA
$
(1,030
)
$
(1,759
)
Adjusted EPS
$
(0.08
)
$
(0.17
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200515005595/en/
Media Sunshine Nance +1 360-464-2119 x254
sunshine.nance@boxlight.com Investor Relations Michael Pope
+1 360-464-4478 michael.pope@boxlight.com
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