Boxlight Reports Third Quarter 2020 Results
LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Boxlight Corporation (Nasdaq: BOXL) (“Boxlight”), a leading provider of interactive technology solutions, today announced the Company's financial results for the third quarter ended September 30, 2020.
Key Financial Highlights for Q3 2020
-
Revenues decreased by
16% to$9.5 million -
Customer orders increased by
37% to$9.3 million -
Gross profit decreased to
21.4% -
Operating expenses decreased by
18% to$3.8 million -
Net loss increased by
792% to$4.2 million -
EPS loss increased by
117% to$(0.10) -
Adjusted EBITDA loss increased by
66% to$0.9 million -
Adjusted EPS loss decreased by
60% to loss of$0.02 -
Ended quarter with
$9.7 million in backorders -
Working capital improved by
558% to$25.1 million compared to prior quarter -
Stockholders’ equity improved by
313% to$44.3 million compared to prior quarter
Key Business Highlights for Q3 2020
- Acquired Sahara Presentation Systems for GBP 63 million
-
Received
$22 million investment from The Lind Partners and closed$34.5 million secondary offering - Acquired screen sharing intellectual property portfolio
- Added seasoned North America sales leadership in Scott Willett, Vice President Sales and Dan Deem, Vice President Sales, Platforms & Services
- Announced strategic partnership with Samsung
- Extended contract with Atlanta Public Schools
- Received two Tech & Learning Awards of Excellence for Boxlight-EOS Distance Teaching Essentials and MySTEMKits 3D printing curriculum
Management Commentary
“Our progress during the third quarter was the most significant in our history, and we are one step closer to our vision of market leadership,” commented Michael Pope, Chairman and Chief Executive Officer. “During the quarter, we closed on fundraising of over
Although sales and gross profit lagged our expectations in Q3 due to several factors including the effects of COVID-19, we are seeing increased demand in the fourth quarter and expect to generate greater than
We are committed to a tremendous fourth quarter and FY 2021, and we have a renewed focus on strong revenue growth, improving gross margins and positive earnings.”
Financial Results for the Three Months Ended September 30, 2020
Revenues for the three months ended September 30, 2020 was
Gross profit for the three months ended September 30, 2020 was
General and administrative expenses for the three months ended September 30, 2020 was
Research and development expenses were
Other income (expense) for the three months ended September 30, 2020 was (
Net loss was
Adjusted EBITDA loss for the three months ended September 30, 2020 was
At September 30, 2020, Boxlight had
Financial Results for the Nine Months Ended September 30, 2020
Revenues for the nine months ended September 30, 2020 were
Gross profit for the nine months ended September 30, 2020 was
General and administrative expenses for the nine months ended September 30, 2020 were
Research and development expenses were
Other income (expense) for the nine months ended September 30, 2020 was (
Net loss was
Adjusted EBITDA loss for the nine months ended September 30, 2020 was
Adjusted EPS for the nine months ended September 30, 2020 was (
3rd Quarter 2020 Financial Results Conference Call
Management will host a conference call to discuss the third quarter 2020 financial results on Monday, November 16, 2020 at 4:30 p.m. Eastern Time. The conference call details are as follows:
Date: |
Monday, November 16, 2020 |
|
Time: |
4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time |
|
Dial-in: |
1-888-567-1603 (Domestic) 1-862-298-0702 (International) |
|
Webcast: |
For those unable to participate during the live broadcast, a replay of the call will also be available from 7:30 p.m. Eastern Time on November 16, 2020 through 11:59 p.m. Eastern Time on November 30, 2020 by dialing 1-877-481-4010 (domestic) and 1-919-882-2331 (international) and referencing the replay pin number: 38710.
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, the change in fair value of derivative liabilities, purchase accounting impact of inventory markup, and non- cash losses associated with debt settlement. 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) is a leading provider of interactive technology solutions under its award winning brands Clevertouch® and Mimio®. The Company aims to improve engagement and communication in diverse business and education environments. Boxlight develops, sells, and services its integrated solution suite including interactive displays, collaboration software, supporting accessories and professional 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 |
||||||||
September 30 |
|
December 31 |
||||||
2020 |
|
2019 |
||||||
ASSETS |
||||||||
Current asset: |
||||||||
Cash and cash equivalents |
$ |
9,609,667 |
|
$ |
1,172,994 |
|
||
Accounts receivable-trade, net of allowances |
|
21,095,910 |
|
|
3,665,057 |
|
||
Inventories, net of reserves |
|
21,571,932 |
|
|
3,318,857 |
|
||
Prepaid expenses and other current assets |
|
4,051,356 |
|
|
1,765,741 |
|
||
Total current assets |
|
56,328,865 |
|
|
9,922,649 |
|
||
Property and equipment, net of accumulated depreciation |
|
383,415 |
|
|
207,397 |
|
||
Intangible assets, net of accumulated amortization |
|
54,012,656 |
|
|
5,559,097 |
|
||
Goodwill |
|
13,429,385 |
|
|
4,723,549 |
|
||
Other assets |
|
70,634 |
|
|
56,193 |
|
||
Total Assets |
$ |
124,224,955 |
|
$ |
20,468,885 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued expenses |
$ |
11,282,365 |
|
$ |
4,721,417 |
|
||
Accounts payable and accrued expenses - related parties |
|
2,050,848 |
|
|
5,031,367 |
|
||
Warranty reserve |
|
17,223 |
|
|
12,775 |
|
||
Current portion of debt-third parties |
|
11,373,472 |
|
|
4,536,227 |
|
||
Current portion of debt-related parties |
|
- |
|
|
368,383 |
|
||
Earn-out payable - related party |
|
119,132 |
|
|
387,118 |
|
||
Deferred revenues - short-term |
|
4,917,088 |
|
|
1,972,565 |
|
||
Derivative liabilities |
|
385,944 |
|
|
146,604 |
|
||
Other short-term liabilities |
|
1,126,813 |
|
|
31,417 |
|
||
Total current liabilities |
|
31,272,885 |
|
|
17,207,873 |
|
||
Deferred revenues - long-term |
|
8,801,969 |
|
|
2,582,602 |
|
||
Long-term debt - third parties |
|
10,950,403 |
|
|
1,201,139 |
|
||
Long-term debt - related party |
|
- |
|
|
108,228 |
|
||
Other long - term liabilities |
|
5,623 |
|
|
16,696 |
|
||
Total liabilities |
|
51,030,880 |
|
|
21,116,538 |
|
||
Commitments and contingencies |
||||||||
Mezzanine equity: |
||||||||
Series B preferred stock, |
|
18,181,178 |
|
|
- |
|
||
Series C preferred stock, |
|
10,690,267 |
|
|
- |
|
||
Total mezzanine equity |
|
28,871,445 |
|
|
|
- |
|
|
Stockholders' equity (deficit): |
||||||||
Preferred stock, |
||||||||
Series A preferred stock, |
|
17 |
|
|
17 |
|
||
Common stock, |
|
5,087 |
|
|
1,170 |
|
||
Additional paid-in capital |
|
82,860,910 |
|
|
30,735,815 |
|
||
Subscriptions receivable |
|
(200 |
) |
|
(200 |
) |
||
Accumulated deficit |
|
(38,932,954 |
) |
|
(31,346,431 |
) |
||
Other comprehensive loss |
|
389,770 |
|
|
(38,024 |
) |
||
Total stockholders' equity |
|
44,322,630 |
|
|
(647,653 |
) |
||
Total liabilities, mezzanine and stockholders' equity (deficit) |
$ |
124,224,955 |
|
$ |
20,468,885 |
|
||
Boxlight Corporation |
|||||||||||||||||
Consolidated Statement of Operations |
|||||||||||||||||
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
September 30, |
|
September 30, |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|||
Revenues |
$ |
9,476,956 |
|
$ |
11,304,731 |
|
$ |
23,027,723 |
|
$ |
27,099,654 |
|
|||||
Cost of Revenues |
|
7,452,453 |
|
|
8,070,930 |
|
|
16,721,610 |
|
|
19,204,342 |
|
|||||
Gross Profit |
|
2,024,503 |
|
|
3,233,801 |
|
|
6,306,113 |
|
|
7,895,312 |
|
|||||
Operating Expense: |
|||||||||||||||||
General and administrative expenses |
|
3,306,845 |
|
|
4,230,372 |
|
|
10,444,060 |
|
|
11,892,814 |
|
|||||
Research and development expenses |
|
471,129 |
|
|
351,104 |
|
|
1,073,095 |
|
|
911,682 |
|
|||||
Total operating expense |
|
3,777,974 |
|
|
4,581,476 |
|
|
11,517,155 |
|
|
12,804,496 |
|
|||||
Loss from operations |
|
(1,753,471 |
) |
|
(1,347,675 |
) |
|
(5,211,042 |
) |
|
(4,909,184 |
) |
|||||
Other income (expense): |
|||||||||||||||||
Interest expense, net |
|
(530,830 |
) |
|
(517,391 |
) |
|
(1,618,366 |
) |
|
(1,277,016 |
) |
|||||
Other (expense) income, net |
|
(14,673 |
) |
|
21,077 |
|
|
60,932 |
|
|
65,956 |
|
|||||
Change in fair value of derivative liabilities |
|
(193,640 |
) |
|
1,372,177 |
|
|
(239,340 |
) |
|
(527,058 |
) |
|||||
Gain (loss) from settlement of liabilities |
|
(1,718,290 |
) |
|
- |
|
|
(578,707 |
) |
|
146,434 |
|
|||||
Total other income (expense) |
|
(2,457,433 |
) |
|
875,863 |
|
|
(2,375,481 |
) |
|
(1,591,684 |
) |
|||||
Net Loss |
$ |
(4,210,904 |
) |
$ |
(471,812 |
) |
$ |
(7,586,523 |
) |
$ |
(6,500,868 |
) |
|||||
Comprehensive loss: |
|||||||||||||||||
Net Loss |
$ |
(4,210,904 |
) |
$ |
(471,812 |
) |
$ |
(7,586,523 |
) |
$ |
(6,500,868 |
) |
|||||
Other comprehensive loss: |
|||||||||||||||||
Foreign currency translation income (loss) |
|
536,118 |
|
|
(11,563 |
) |
|
427,794 |
|
|
(26,749 |
) |
|||||
Total comprehensive loss |
$ |
(3,674,786 |
) |
$ |
(483,375 |
) |
$ |
(7,158,729 |
) |
$ |
(6,527,617 |
) |
|||||
Net loss per common share - basic and diluted |
|
(0.10 |
) |
|
(0.04 |
) |
|
(0.31 |
) |
|
(0.62 |
) |
|||||
Weighted average number of common shares outstanding - basic and diluted |
|
44,214,758 |
|
|
10,746,186 |
|
|
24,852,937 |
|
|
10,533,090 |
|
|||||
Boxlight Corporation |
||||||||
Reconciliation of Net Loss to Adjusted EBITDA |
||||||||
|
|
|
||||||
Three Months Ended |
||||||||
September 30, |
||||||||
|
|
|
||||||
|
2020 |
|
|
|
2019 |
|
||
Net Loss |
$ |
(4,211 |
) |
$ |
(472 |
) |
||
Depreciation and amortization |
|
318 |
|
|
222 |
|
||
Interest expense |
|
531 |
|
|
517 |
|
||
EBITDA |
$ |
(3,362 |
) |
$ |
267 |
|
||
Stock compensation expense |
|
346 |
|
|
574 |
|
||
Change in fair value of derivative liabilities |
|
194 |
|
|
(1,372 |
) |
||
Purchase accounting impact of fair valuing inventory |
|
217 |
|
|
16 |
|
||
Net loss on settlement of Lind debt in stock |
|
1,748 |
|
|
- |
|
||
Adjusted EBITDA |
$ |
(857 |
) |
$ |
(515 |
) |
||
Boxlight Corporation |
||||||||
Reconciliation of Net Loss to Adjusted EBITDA |
||||||||
|
|
|
||||||
Nine Months Ended |
||||||||
September 30, |
||||||||
|
|
|
||||||
|
2020 |
|
|
|
2019 |
|
||
Net Loss |
$ |
(7,587 |
) |
$ |
(6,501 |
) |
||
Depreciation and amortization |
|
758 |
|
|
689 |
|
||
Interest expense |
|
1,618 |
|
|
1,277 |
|
||
EBITDA |
$ |
(5,211 |
) |
$ |
(4,535 |
) |
||
Stock compensation expense |
|
866 |
|
|
896 |
|
||
Change in fair value of derivative liabilities |
|
239 |
|
|
527 |
|
||
Purchase accounting impact of fair valuing inventory |
|
236 |
|
|
40 |
|
||
Net loss on settlement of Lind debt in stock |
|
2,340 |
|
|
- |
|
||
Adjusted EBITDA |
$ |
(1,530 |
) |
$ |
(3,072 |
) |
||
