Revenues of $7.8 Million
Gross Profit of 34%
Adjusted EBITDA Improvement of 69% to Loss
of $0.3 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 June 30, 2020.
Key Financial Highlights for Q2 2020
- Revenues decreased by 28% to $7.8 million
- Customer orders decreased by 55% to $6.4 million
- Gross profit increased by 670 basis points to 34%
- Operating expenses decreased by 17% to $3.5 million
- Operating loss decreased by 36% to $0.8 million
- Net loss was even at $1.4 million
- EPS loss decreased by 40% to $(0.08)
- Adjusted EBITDA loss decreased by 69% to $0.3 million
- Adjusted EPS decreased by 81% to loss of $0.01
- Ended quarter with $2.5 million in backlog orders
- Working capital improved by 175% to $3.8 million
- Stockholders’ equity improved by 1,757% to $10.7 million
Key Business Highlights for Q2 2020
- Entered into a partnership with JB&A distribution
- Acquired Robo3D and MyStemKits
- Entered into a supply agreement and strategic partnership with
CEC Finance and Logistics
- Entered into a distribution agreement with CT
International
- Expanded partnership with Clayton County Public Schools
- Closed $11.5 million secondary offering
- Released MimioConnect software platform for virtual and blended
learning
Management Commentary
“We made significant progress as a company during the second
quarter, including closing an $11.5 million secondary offering,
launching our MimioConnect software platform for virtual and
blended learning environments, expanding our sales channel, and
acquiring Robo3D and MyStemKits, a complete 3D printing solution
for education,” commented Michael Pope, Chairman and Chief
Executive Officer. “Additionally, subsequent to quarter end, we
entered into a strategic partnership with Samsung Electronics
America, and we raised another $34.5 million, positioning the
company with a strong balance sheet, equipped for future
acquisition and joint venture opportunities.
Although COVID-19 has created significant disruption to the
education market globally, we are well positioned as a company to
provide the solutions educators need to create engaging and
collaborative experiences in any format including in-class, virtual
and hybrid environments.
We are committed to driving sustained shareholder value by
delivering strong revenue growth and improved profitability both
organically and through strategic partnerships and
acquisitions.”
Financial Results for the Three Months Ended June 30,
2020
Revenue for the three months ended June 30, 2020 was $7.8
million, a decrease of $3.0 million or 28%, compared to $10.8
million for the three months ended June 30, 2019. Revenue loss
reflects decreased sales volume primarily related to school
closures as a result of COVID-19.
Gross profit for the three months ended June 30, 2020 was $2.7
million, a decrease of $0.3 million, compared to $3.0 million for
the three months ended June 30, 2019. The resulting gross margin
was 34.4% for the three months ended June 30, 2020, compared to
27.7% for the three months ended June 30, 2019.
General and Administrative expenses for the three months ended
June 30, 2020 was $3.2 million, a decrease of $0.7 million or 18%,
compared to $3.9 million for the three months ended June 30, 2019.
The decrease was primarily driven by reductions in tradeshow
expense and contract services.
Research and development expenses for the three months ended
June 30, 2020 was $0.3 million, a decrease of 12%, compared to $0.3
million for the three months ended June 30, 2019. The decrease was
primarily driven by a decrease in contract services and
salaries.
Operating loss for the three months ended June 30, 2020 was $0.8
million, a decrease of $0.4 million, or 36%, compared to $1.2
million for the three months ended June 30, 2019.
Other expense for the three months ended June 30, 2020 was
expense of $0.6 million, as compared to an expense of $0.2 million
for the three months ended June 30, 2019. The increase in other
expense is related to the change in fair value of derivative
liability of $0.3 million and increased interest expense of $0.1
million.
Net loss for the three months ended June 30, 2020 was $1.4
million remaining flat compared to $1.4 million for the three
months ended June 30, 2019. The resulting EPS loss for the three
months ended June 30, 2020 was $(0.08) per diluted share, compared
to $(0.13) per diluted share for the three months ended June 30,
2019.
Adjusted EBITDA loss for the three months ended June 30, 2020
was $0.3 million, a decrease of $0.5 million or 69% compared to
$0.8 million for the three months ended June 30, 2019.
At June 30, 2020, Boxlight had $6.1 million of cash, $28.1
million of total assets, $7.1 debt, and 31.9 million shares issued
and outstanding.
Financial Results for the Six Months Ended June 30,
2020
Revenue for the six months ended June 30, 2020 was $13.6
million, a decrease of $2.2 million or 14%, compared to $15.8
million for the six months ended June 30, 2019.
Gross profit for the six months ended June 30, 2020 was $4.3
million, a decrease of $0.4 million, compared to $4.7 million for
the six months ended June 30, 2019. The resulting gross margin was
31.6% for the six months ended June 30, 2020, compared to 29.5% for
the six months ended June 30, 2019.
General and administrative expenses for the six months ended
June 30, 2020 was $7.1 million, a decrease of $0.6 million or 7%,
compared to $7.7 million for the six months ended June 30, 2019.
The decrease was primarily related to reductions in tradeshows and
contract services offset by an increase in commissions.
Research and development expenses for the six months ended June
30, 2020 was $0.6 million, an increase of 7%, compared to $0.6
million for the six months ended June 30, 2019. The increase was
primarily related to an increase in contract services offset by a
decrease in salaries.
Operating loss for the six months ended June 30, 2020 was $3.5
million, a decrease of $0.1 million, or 3%, compared to $3.6
million for the six months ended June 30, 2019.
Other income (expense) for the six months ended June 30, 2020
was income of $0.1 million, as compared to an expense of $2.5
million for the six months ended June 30, 2019. The increase in
other income is related to a gain on settlement of accounts payable
$1.7 million, change in fair value of derivative liability $1.8
million offset by a loss on settlement of debt of $0.6 million and
increased interest expense of $0.3 million.
Net loss for the six months ended June 30, 2020 was $3.4
million, a decrease of $2.6 million or 44%, compared to $6.0
million for the six months ended June 30, 2019. The resulting EPS
loss for the six months ended June 30, 2020 was ($0.22) per diluted
share, compared to ($0.58) per diluted share for the six months
ended June 30, 2019.
Adjusted EBITDA loss for the six months ended June 30, 2020 was
$1.3 million, a decrease of $1.3 million compared to $2.6 million
for the six months ended June 30, 2019.
Adjusted EPS for the six months ended June 30, 2020 was ($0.09)
per diluted share, compared to ($0.25) per diluted share for the
six months ended June 30, 2019.
2nd Quarter 2020 Financial Results Conference Call
Management will host a conference call to discuss the second
quarter 2020 financial results on Friday, August 14, 2020 at 9:30
a.m. Eastern Time. The conference call details are as follows:
Date:
Friday, August 14, 2020
Time:
9:30 a.m. Eastern Time / 6:30 a.m. Pacific
Time
Dial-in:
1-844-602-0380 (Domestic)
1-862-298-0970 (International)
Webcast:
https://www.webcaster4.com/Webcast/Page/2213/36623
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 August 14, 2020 through 11:59 p.m. Eastern Time on August
28, 2020 by dialing 1-877-481-4010 (domestic) and 1-919-882-2331
(international) and referencing the replay pin number: 36623.
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 Condensed Balance
Sheets
June 30, 2020
December 31, 2019
ASSETS
Current asset:
Cash and cash equivalents
$
6,133,053
$
1,172,994
Accounts receivable – trade, net of
allowances
5,356,940
3,665,057
Inventories, net of reserves
2,868,192
3,318,857
Prepaid expenses and other current
assets
3,172,768
1,765,741
Total current assets
17,530,953
9,922,649
Property and equipment, net of accumulated
depreciation
198,653
207,397
Intangible assets, net of accumulated
amortization
5,574,666
5,559,097
Goodwill
4,723,549
4,723,549
Other assets
62,327
56,193
Total assets
$
28,090,148
$
20,468,885
LIABILITIES AND STOCKHOLDERS’
EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses
$
3,802,221
$
4,721,417
Accounts payable and accrued expenses –
related parties
2,221,350
5,031,367
Warranty reserve
2,713
12,775
Current portion of debt – third
parties
5,388,350
4,536,227
Current portions of debt – related
parties
383,726
368,383
Earn-out payable – related party
122,372
387,118
Deferred revenues – short-term
1,577,992
1,972,565
Derivative liabilities
192,304
146,604
Other short-term liabilities
30,560
31,417
Total current liabilities
13,721,588
17,207,873
Deferred revenues – long-term
2,350,154
2,582,602
Long-term debt – third parties
1,277,980
1,201,139
Long-term debt – related parties
-
108,228
Other long-term liabilities
9,006
16,696
Total liabilities
17,358,728
21,116,538
Stockholders’ deficit:
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; 31,857,327 and 11,698,697 Class A
shares issued and outstanding, respectively
3,186
1,170
Additional paid-in capital
45,596,815
30,735,815
Subscriptions receivable
(200
)
(200
)
Accumulated deficit
(34,722,050
)
(31,346,431
)
Accumulated other comprehensive loss
(146,348
)
(38,024
)
Total stockholders’ equity (deficit)
10,731,420
(647,653
)
Total liabilities and stockholders’ equity
(deficit)
$
28,090,148
$
20,468,885
Boxlight Corporation
Consolidated Condensed
Statements of Operations and Comprehensive Loss
Three Months Ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
(Note 1)
(Note 1)
Revenues, net
$
7,827,718
$
10,801,523
$
13,550,767
$
15,794,923
Cost of revenues
5,137,168
7,812,079
9,269,157
11,133,412
Gross profit
2,690,550
2,989,444
4,281,610
4,661,511
Operating expense:
General and administrative expenses
3,199,486
3,896,374
7,137,215
7,662,442
Research and development
285,210
324,582
601,966
560,578
Total operating expense
3,484,695
4,220,956
7,739,181
8,223,020
Loss from operations
(794,146
)
(1,231,512
)
(3,457,571
)
(3,561,509
)
Other income (expense):
Interest expense, net
(628,216
)
(479,022
)
(1,087,536
)
(759,625
)
Other income, net
17,655
23,670
75,605
44,879
Changes in fair value of derivative
liabilities
(74,363
)
263,260
(45,700
)
(1,899,235
)
Gain from settlements of liabilities
53,074
-
1,139,583
146,434
Total other expense
(631,850
)
(192,092
)
81,952
(2,467,547
)
Net loss
$
(1,425,996
)
$
(1,423,604
)
$
(3,375,619
)
$
(6,029,056
)
Comprehensive loss:
Net loss
(1,425,996
)
(1,423,604
)
$
(3,375,619
)
$
(6,029,056
)
Other comprehensive loss:
Foreign currency translation gain
(loss)
(4,897
)
22,962
(108,324
)
(15,186
)
Total comprehensive loss
$
(1,430,893
)
$
(1,400,642
)
$
(3,482,943
)
$
(6,044,242
)
Net loss per common share – basic and
diluted
$
(0.08
)
$
(0.13
)
$
(0.22
)
$
(0.58
)
Weighted average number of common shares
outstanding – basic and diluted
17,637,458
10,590,451
15,065,644
10,424,054
Boxlight Corporation
Reconciliation of net loss for
the three months ended
Three months ended
June 30
(in thousands)
2020
2019
Net loss
$
(1,426
)
$
(1,424
)
Depreciation and amortization
221
225
Interest expense
628
479
EBITDA
$
(577
)
$
(720
)
Stock compensation expense
249
160
Change in fair value of derivative
liabilities
74
(263
)
Adjusted EBITDA
$
(254
)
$
(823
)
Boxlight Corporation
Reconciliation of net loss for
the three months ended
Six months ended
June 30
(in thousands)
2020
2019
Net loss
$
(3,376
)
$
(6,029
)
Depreciation and amortization
440
467
Interest expense
1,088
760
EBITDA
$
(1,848
)
$
(4,802
)
Stock compensation expense
520
321
Change in fair value of derivative
liabilities
46
1,899
Adjusted EBITDA
$
(1,282
)
$
(2,582
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200814005081/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
Boxlight (NASDAQ:BOXL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Boxlight (NASDAQ:BOXL)
Historical Stock Chart
From Sep 2023 to Sep 2024