BEIJING, June 29, 2018 /PRNewswire/ -- LightInTheBox
Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the
"Company"), a global online retail company that delivers products
directly to consumers around the world, today announced its
unaudited financial results for the first quarter of 2018.
First Quarter 2018 Financial Results
Net revenues decreased 3.6% year-over-year to
$70.1 million from $72.7 million in the same quarter of 2017. Net
revenues from product sales were $66.0
million, compared with $64.8
million in the same quarter of 2017. Net revenues from
service and others were $4.1 million,
compared with $7.9 million in the
same quarter of 2017. As a percentage of net revenues, service and
others accounted for 5.8% during the first quarter of 2018.
Total orders of product sales were 1.3 million during the first
quarter of 2018, compared with 1.6 million in the same quarter of
2017. Total number of product sales customers was 1.0 million,
compared with 1.2 million in the same quarter of 2017.
Product sales in the apparel category were $19.9 million for the first quarter of 2018,
compared with $21.2 million in the
same quarter of 2017. As a percentage of product sales, apparel
revenues accounted for 30.2%, compared with 32.8% in the same
quarter of 2017. Product sales from other general merchandise were
$46.1 million for the first quarter
of 2018.
Product sales from Europe were
$33.9 million for the first quarter
of 2018, compared with $33.5 million
in the same quarter of 2017, representing 51.4% of total product
sales for the first quarter of 2018. Product sales from
North America were $13.8 million, compared with $17.4 million in the same quarter of 2017,
representing 20.9% of total product sales for the first quarter of
2018. Product sales from GCC were $2.6
million for the first quarter of 2018, compared with
$0.3 million in the same quarter of
2017, representing 4.0% of total product sales for the first
quarter of 2018, while product sales from other countries were
$15.7 million, representing 23.7% of
total product sales for the same quarter.
Total cost of revenues was $49.6
million in the first quarter of 2018, compared with
$48.5 million in the same quarter of
2017. Cost for product sales was $45.9
million in the first quarter of 2018, compared with
$41.0 million in the same quarter of
2017. Cost for service and others was $3.7
million in the first quarter of 2018, compared with
$7.5 million in the same quarter of
2017.
Gross profit for the first quarter of 2018 was
$20.5 million, compared with
$24.2 million in the same quarter of
2017. Gross margin was 29.2% in the first quarter of 2018, compared
with 33.3% in the same quarter of 2017.
Total operating expenses in the first quarter of 2018
were $28.6 million, compared with
$26.8 million in the same quarter of
2017.
- Fulfillment expenses in the first quarter of 2018 were
$4.5 million, compared with
$3.8 million in the same quarter of
2017. As a percentage of total net revenues, fulfillment expenses
were 6.4%, compared to 5.2% in the same quarter of 2017 and 5.5%
for the fourth quarter of 2017.
- Selling and marketing expenses in the first quarter of
2018 were $16.1 million, compared
with $15.2 million in the same
quarter of 2017. As a percentage of total net revenues, selling and
marketing expenses were 23.0%, compared to 20.9% in the same
quarter of 2017 and 19.4% for the fourth quarter of 2017.
- General and administrative (G&A) expenses in the
first quarter of 2018 were $8.0
million, compared with $7.8
million in the same quarter of 2017. As a percentage of
total net revenues, G&A expenses were 11.4%, compared with
10.8% in the same quarter of 2017 and 8.7% for the fourth quarter
of 2017. G&A expenses in the first quarter of 2018 included
$3.0 million in technology
investments, compared with $2.5
million in the same quarter of 2017.
Loss from operations was $8.1
million in the first quarter of 2018, compared with a loss
from operations of $2.6 million in
the same quarter of 2017.
Net loss was $7.9 million
in the first quarter of 2018, compared with a net loss of
$2.4 million during the same quarter
of 2017.
Net loss per American Depository Share ("ADS") was
$0.12 in the first quarter of 2018,
compared with net loss per ADS of $0.03 in the same quarter of 2017. Each ADS
represents two ordinary shares.
For the first quarter of 2018, the Company's weighted average
number of ADSs used in computing the loss per ADS was
67,100,429.
As of March 31, 2018, the Company
had cash and cash equivalents and restricted cash of
$54.6 million, compared with
$70.0 million as of December 31,
2017.
Share Repurchase Program
On June 15, 2017, the Company
announced the extension of its existing share repurchase program
for an additional twelve month period from June 15, 2017 through June
14, 2018 to continue to repurchase up to the remaining
balance of the $10 million of its
American Depositary Shares ("ADSs"). As of March 31, 2018, the Company had repurchased a
total of $6.8 million of its
ADSs.
New Revenue Standard
On January 1, 2018, we adopted
Accounting Standards Codification Topic 606, Revenue from Contracts
with Customers ("ASC 606"), utilizing the modified retrospective
transition method to all contracts that were not completed as of
January 1, 2018. Results for
reporting periods beginning after January 1,
2018 are presented under ASC 606, while prior period amounts
are not adjusted and continue to be reported under the accounting
standards in effect for the prior
periods.
The application of ASC 606 had no material impact on the
company's consolidated financial statements as of and for the three
month ended March 31, 2018.
About LightInTheBox Holding Co., Ltd.
LightInTheBox is a global online retail company that delivers
products directly to consumers around the world. The Company offers
customers a convenient way to shop for a wide selection of products
at attractive prices through its www.lightinthebox.com,
www.miniinthebox.com and other websites and mobile applications,
which are available in 23 major languages and cover more than 80%
of global Internet users.
For more information, please visit www.lightinthebox.com.
Investor Relations Contact
Christensen
Ms. Xiaoyan Su
Tel: +86 (10) 5900 3429
Email: ir@lightinthebox.com
OR
Christensen
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
Forward-Looking Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets" and similar statements. Among other things, statements
that are not historical facts, including statements about
LightInTheBox's beliefs and expectations, the business outlook and
quotations from management in this announcement, as well as
LightInTheBox's strategic and operational plans, are or contain
forward-looking statements. LightInTheBox may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the "SEC"), in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following:
LightInTheBox's goals and strategies; LightInTheBox's future
business development, results of operations and financial
condition; the expected growth of the global online retail market;
LightInTheBox's ability to attract customers and further enhance
customer experience and product offerings; LightInTheBox's ability
to strengthen its supply chain efficiency and optimize its
logistics network; LightInTheBox's expectations regarding demand
for and market acceptance of its products; competition;
fluctuations in general economic and business conditions and
assumptions underlying or related to any of the foregoing. Further
information regarding these and other risks is included in
LightInTheBox's filings with the SEC. All information provided in
this press release and in the attachments is as of the date of this
press release, and LightInTheBox does not undertake any obligation
to update any forward-looking statement, except as required under
applicable law.
LightInTheBox
Holding Co., Ltd.
|
Unaudited
Condensed Consolidated Balance Sheets
|
(U.S. dollar in
thousands)
|
|
|
|
|
|
|
|
As of December 31,
|
|
As of March 31,
|
|
|
2017
|
|
2018
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
68,441
|
|
53,231
|
Restricted
cash
|
|
1,573
|
|
1,381
|
Accounts
receivable
|
|
3,433
|
|
3,408
|
Inventories,
net
|
|
11,841
|
|
13,918
|
Prepaid expenses and
other current assets
|
|
15,696
|
|
17,560
|
Total current
assets
|
|
100,984
|
|
89,498
|
Property and
equipment, net
|
|
920
|
|
1,096
|
Acquired intangible
assets, net
|
|
210
|
|
209
|
Goodwill
|
|
690
|
|
690
|
Long-term rental
deposit
|
|
671
|
|
684
|
Long-term
investment
|
|
5,262
|
|
5,519
|
TOTAL
ASSETS
|
|
108,737
|
|
97,696
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
22,430
|
|
19,456
|
Advance from
customers
|
|
10,110
|
|
11,425
|
Accrued expenses and
other current liabilities
|
|
20,727
|
|
21,402
|
Total current
liabilities
|
|
53,267
|
|
52,283
|
TOTAL
LIABILITIES
|
|
53,267
|
|
52,283
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Ordinary
shares
|
|
11
|
|
11
|
Treasury shares, at
cost
|
|
(23,907)
|
|
(26,840)
|
Additional paid-in
capital
|
|
238,851
|
|
239,356
|
Accumulated
deficit
|
|
(159,286)
|
|
(167,139)
|
Accumulated other
comprehensive (loss) gain
|
|
(199)
|
|
25
|
TOTAL
EQUITY
|
|
55,470
|
|
45,413
|
TOTAL LIABILITIES AND
EQUITY
|
|
108,737
|
|
97,696
|
LightInTheBox
Holding Co., Ltd.
|
Unaudited
Condensed Consolidated Statements of Operations
|
(U.S. dollar in
thousands, except share data and per share data)
|
|
|
|
|
|
|
|
|
Three-month Period Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
2017
|
|
2018
|
Net
revenues
|
|
|
|
|
|
Product
sales
|
|
64,776
|
|
65,968
|
|
Services and
others
|
|
7,925
|
|
4,086
|
|
Total net
revenues
|
|
72,701
|
|
70,054
|
|
Cost of
revenues
|
|
|
|
|
|
Product
sales
|
|
(41,032)
|
|
(45,890)
|
|
Services and
others
|
|
(7,458)
|
|
(3,678)
|
|
Total cost of
revenues
|
|
(48,490)
|
|
(49,568)
|
|
Gross
profit
|
|
24,211
|
|
20,486
|
|
Operating
expenses
|
|
|
|
|
|
Fulfillment
|
|
(3,748)
|
|
(4,480)
|
|
Selling and
marketing
|
|
(15,205)
|
|
(16,078)
|
|
General and
administrative
|
|
(7,834)
|
|
(7,999)
|
|
Total operating
expenses
|
|
(26,787)
|
|
(28,557)
|
|
Loss from
operations
|
|
(2,576)
|
|
(8,071)
|
|
Exchange loss on
offshore bank accounts
|
|
(12)
|
|
(57)
|
|
Interest
income
|
|
145
|
|
218
|
|
Loss before income
taxes
|
|
(2,443)
|
|
(7,910)
|
|
Income taxes
expenses
|
|
(8)
|
|
(2)
|
|
Gain from equity
method investments
|
|
56
|
|
59
|
|
Net
loss
|
|
(2,395)
|
|
(7,853)
|
|
|
|
|
|
|
|
Weighted average
numbers of shares used in calculating loss per ordinary
share
|
|
|
|
|
|
-Basic
|
|
137,761,078
|
|
134,200,859
|
|
-Diluted
|
|
137,761,078
|
|
134,200,859
|
|
|
|
|
|
|
|
Net loss per ordinary
share
|
|
|
|
|
|
-Basic
|
|
(0.02)
|
|
(0.06)
|
|
-Diluted
|
|
(0.02)
|
|
(0.06)
|
|
|
|
|
|
|
|
Net loss per ADS (2
ordinary shares equal to 1 ADS)
|
|
|
|
|
|
-Basic
|
|
(0.03)
|
|
(0.12)
|
|
-Diluted
|
|
(0.03)
|
|
(0.12)
|
|
LightInTheBox
Holding Co., Ltd.
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
(U.S. dollar in
thousands)
|
|
|
|
|
|
|
|
Three-month Period Ended
|
|
|
March
31,
|
|
March
31,
|
2017
|
2018
|
Net loss
|
|
(2,395)
|
|
(7,853)
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
Depreciation and
amortization
|
|
231
|
|
152
|
Share-based
compensation
|
|
498
|
|
505
|
Inventory
write-down
|
|
338
|
|
397
|
Exchange loss on
offshore bank accounts
|
|
12
|
|
57
|
Gain from equity
method investments
|
|
(56)
|
|
(59)
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts
receivable
|
|
242
|
|
53
|
Inventories
|
|
658
|
|
(2,456)
|
Prepaid expenses and
other current assets
|
|
(1,765)
|
|
(1,844)
|
Accounts
payable
|
|
(4,938)
|
|
(2,987)
|
Advance from
customers
|
|
3,260
|
|
1,312
|
Accrued expense and
other current liabilities
|
|
(1,733)
|
|
376
|
Long-term rental
deposit
|
|
(11)
|
|
—
|
Net cash used in
operating activities
|
|
(5,659)
|
|
(12,347)
|
Cash flow from
investing activity
|
|
|
|
|
Purchase of property
and equipment
|
|
(111)
|
|
(295)
|
Net cash used in
investing activity
|
|
(111)
|
|
(295)
|
Cash flow from
financing activity
|
|
|
|
|
Repurchase of
ordinary shares
|
|
(236)
|
|
(2,934)
|
Net cash used in
financing activity
|
|
(236)
|
|
(2,934)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
17
|
|
174
|
Cash, cash
equivalents and restricted cash beginning of period
|
|
91,076
|
|
70,014
|
Cash, cash
equivalents and restricted cash end of period
|
|
85,087
|
|
54,612
|
|
|
|
|
|
Supplemental Cash
Flow Data
|
|
|
|
|
Reconciliation of
cash and cash equivalents to consolidated statements of cash
flows:
|
|
|
|
|
Cash and cash
equivalents as presented in consolidated balance sheets
|
|
83,797
|
|
53,231
|
Restricted cash and
restricted cash equivalents as presented in consolidated balance
sheets
|
1,290
|
|
1,381
|
Cash, cash
equivalents and restricted cash as presented in consolidated
statements of cash flows
|
|
85,087
|
|
54,612
|
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SOURCE LightInTheBox Holding Co., Ltd.