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Boxlight Corporation$1.42($.02)(1.39%)

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 Boxlight Reports First Quarter 2020 Results
   Friday, May 15, 2020 5:49:00 PM ET

Revenue Growth of 15% to $5.7 million

Gross Profit of 28%

Adjusted EBITDA Improvement of 41% to Loss of $1.0 million

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--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

)

 

Media
Sunshine Nance
+1 360-464-2119 x254
sunshine.nance@boxlight.com

Investor Relations
Michael Pope
+1 360-464-4478
michael.pope@boxlight.com

Source: Boxlight Corporation



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