Boxlight Reports Second Quarter 2021 Financial Results
Boxlight Corporation (Nasdaq: BOXL) reported strong Q2 2021 results, with revenues soaring 497% to $46.8 million, driven by increased demand and the Sahara acquisition. Customer orders surged 986% to $76 million. Gross profit margin improved to 27.5%, adjusted for acquisition impacts. The net loss per share was $(0.04), an improvement from $(0.08) in Q2 2020. Management anticipates Q3 revenue of $60 million and positive net income. Despite growth, gross margins were affected by rising freight costs related to supply chain challenges due to COVID-19.
- Revenue increased by 497% to $46.8 million.
- Customer orders increased by 986% to $76 million.
- Adjusted EBITDA rose by $5.4 million to $5.4 million.
- Gross profit margin decreased to 27.5%, impacted by supply chain challenges.
- Net loss increased to $(7.4) million for the six months ended June 30, 2021.
Boxlight Corporation (Nasdaq: BOXL) (“Boxlight”), a leading provider of interactive technology solutions, today announced the Company's financial results for the second quarter ended June 30, 2021.
Key Financial Highlights for Q2 2021 as Compared to Q2 2020
-
Revenues increased by
497% to$46.8 million -
Customer orders increased by
986% to$76.0 million -
Gross profit margin was
27.5% , as adjusted for the net effect of acquisition-related purchase accounting, increased to29.1% , an improvement of 16 basis points -
Net loss per common share improved by
$0.04 t o$(0.04) -
Adjusted EBITDA improved by
$5.4 million to$5.4 million -
Working capital improved by
575% to$26.7 million -
Ended the quarter with
$48.0 million of backorders,$7.4 million cash and$51.1 million stockholders’ equity
Key Business Highlights for Q2 2021
-
Received significant customer orders of
$15.8 million from D&H Distributing (U.S.),$12.5 million from Tierney (U.S.),$3.5 million from Data Projections (U.S.),$2.5 million from IDNS (U.K.),$2.4 million from ASI (Australia),$2.1 million from Interactive AV (South Africa), and$1.5 million from EET Europarts (Finland). - Published twelve case studies for successful technology implementations including Clelian Heights School for Exceptional Children, Greensburg, PA; Shamrock Independent School District, Shamrock,TX; The British Computer Society, London, UK; Brussels School Group, Brussels, Belgium; and Horsley Park Public School, Sydney, Australia.
- Received recognition at the Cool Tool Finalist Awards, the InAVation Awards and The EdTech Breakthrough Awards for our software platforms, accessories, professional development content, STEM solutions and overall business growth.
- Joined the Google Cloud Partner Advantage program as a service partner giving Google Cloud educators the ability to receive specialized professional development focused on Google Cloud tools.
- Launched Boxlight Financial Services, a strategic customer financing program created in partnership with TEQlease Capital, to provide customers flexible payment plans.
- Released ClevertouchLive, a new digital signage Content Management Platform enabling customers to manage all their Clevertouch devices from a single content management platform.
- Announced our U.S. enterprise sales division focusing on corporate, government, higher education and house of worship customers.
Management Commentary
“We delivered another record quarter, again outperforming both our external guidance and internal targets,” commented Michael Pope, Chairman and Chief Executive Officer.
“For the first half of 2021, we generated
“Entering our seasonally strongest quarter, we expect to report the third quarter with revenue of
Financial Results for the Three Months Ended June 30, 2021
Revenues for the three months ended June 30, 2021 were
Gross profit for the three months ended June 30, 2021 was
Total operating expenses for the three months ended June 30, 2021 were
Other income (expense) for the three months ended June 30, 2021 was net expense of
The Company reported a net loss of
The net loss attributable to common shareholders was
Total comprehensive loss was
The EPS loss for the three months ended June 30, 2021 was
EBITDA for the three months ending June 30, 2021 was
Adjusted EBITDA for the three months ended June 30, 2021 was
At June 30, 2021, Boxlight had
Financial Results for the Six Months Ended June 30, 2021
Revenues for the six months ended June 30, 2021 were
Gross profit for the six months ended June 30, 2021 was
Total operating expenses for the six months ended June 30, 2021 were
Other income (expense) for the six months ended June 30, 2021 was net expense of
The Company reported a net loss of
The net loss attributable to common shareholders was
Total comprehensive loss was
The EPS loss for the six months ended June 30, 2021 was
EBITDA for the six months ending June 30, 2021 was
Adjusted EBITDA for the six months ended June 30, 2021 was
At June 30, 2021, Boxlight had
Second Quarter 2021 Financial Results Conference Call
Management will host a conference call to discuss the second quarter 2021 financial results on Thursday, August 12, 2021 at 4:30 p.m. Eastern Time. The conference call details are as follows:
Date: |
Thursday, August 12, 2021 |
|
Time: |
4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time |
|
Dial-in: |
1-877-545-0320 (Domestic) 1-973-528-0016 (International) |
|
Webcast: |
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For those unable to participate during the live broadcast, a replay of the conference call will be available until 11:59 p.m. Eastern Time on Thursday, August 26, 2021 by dialing 1-877-481-4010 (domestic) and 1-919-882-2331 (international) and referencing the replay passcode 42424.
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 assess 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 Boxlight and the Boxlight story, visit http://www.boxlight.com and http://www.clevertouch.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, and competition in the industry, among other things. Boxlight encourages you to review other factors that may affect its future results and performance in Boxlight's filings with the Securities and Exchange Commission.
Boxlight Corporation Condensed Consolidated Balance Sheets As of June 30, 2021 and December 31, 2020 (Unaudited) (in thousands, except share amounts) |
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|
|
June 30, 2021 |
|
|
December 31, 2020 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
7,437 |
|
|
$ |
13,460 |
|
Accounts receivable – trade, net of allowances |
|
|
36,115 |
|
|
|
20,869 |
|
Inventories, net of reserves |
|
|
20,870 |
|
|
|
20,913 |
|
Prepaid expenses and other current assets |
|
|
13,463 |
|
|
|
6,161 |
|
Total current assets |
|
|
77,885 |
|
|
|
61,403 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net of accumulated depreciation |
|
|
584 |
|
|
|
562 |
|
Intangible assets, net of accumulated amortization |
|
|
53,306 |
|
|
|
55,157 |
|
Goodwill |
|
|
23,352 |
|
|
|
22,742 |
|
Other assets |
|
|
170 |
|
|
|
91 |
|
Total assets |
|
$ |
155,297 |
|
|
$ |
139,953 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
26,107 |
|
|
$ |
14,245 |
|
Accounts payable and accrued expenses – related parties |
|
|
- |
|
|
|
1,967 |
|
Short-term debt |
|
|
16,485 |
|
|
|
16,817 |
|
Earn-out payable – related party |
|
|
- |
|
|
|
119 |
|
Deferred revenues – short-term |
|
|
6,197 |
|
|
|
5,671 |
|
Derivative liabilities |
|
|
536 |
|
|
|
363 |
|
Other short-term liabilities |
|
|
1,857 |
|
|
|
1,209 |
|
Total current liabilities |
|
|
51,182 |
|
|
|
40,392 |
|
|
|
|
|
|
|
|
|
|
Deferred revenues – long-term |
|
|
12,334 |
|
|
|
10,482 |
|
Long-term debt |
|
|
2,392 |
|
|
|
7,831 |
|
Deferred tax liability |
|
|
9,375 |
|
|
|
7,902 |
|
Other long-term liabilities |
|
|
365 |
|
|
|
2 |
|
Total liabilities |
|
75,648 |
|
|
66,609 |
|
||
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine equity: |
|
|
|
|
|
|
|
|
Preferred Series B |
|
|
16,146 |
|
|
|
16,513 |
|
Preferred Series C |
|
|
12,363 |
|
|
|
12,363 |
|
Total mezzanine equity |
|
|
28,509 |
|
|
|
28,876 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred Series A, |
|
|
- |
|
|
|
- |
|
Common stock, |
|
|
6 |
|
|
|
5 |
|
Additional paid-in capital |
|
|
100,559 |
|
|
|
86,768 |
|
Accumulated deficit |
|
|
(54,886 |
) |
|
|
(47,498 |
) |
Accumulated other comprehensive income |
|
|
5,461 |
|
|
|
5,192 |
|
Total stockholders’ equity |
|
51,140 |
|
|
44,467 |
|
||
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
155,297 |
|
|
$ |
139,953 |
|
Boxlight Corporation Consolidated Condensed Statements of Operations and Comprehensive Loss For the six months ended June 30, 2021 and 2020 (Unaudited) (in thousands, except per share amounts) |
||||||||||||||||
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Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Revenues, net |
|
$ |
46,754 |
|
|
$ |
7,828 |
|
|
$ |
80,177 |
|
|
$ |
13,551 |
|
Cost of revenues |
|
|
33,920 |
|
|
|
5,137 |
|
|
|
58,791 |
|
|
|
9,269 |
|
Gross profit |
|
|
12,834 |
|
|
|
2,691 |
|
|
|
21,386 |
|
|
|
4,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
10,800 |
|
|
|
3,200 |
|
|
|
20,912 |
|
|
|
7,137 |
|
Research and development |
|
|
481 |
|
|
|
285 |
|
|
|
955 |
|
|
|
602 |
|
Total operating expense |
|
|
11,281 |
|
|
|
3,485 |
|
|
|
21,866 |
|
|
|
7,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
1,553 |
|
|
|
(794 |
) |
|
|
(480 |
) |
|
|
(3,457 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(764 |
) |
|
|
(628 |
) |
|
|
(1,782 |
) |
|
|
(1,088 |
) |
Other income, net |
|
|
5 |
|
|
|
17 |
|
|
|
20 |
|
|
|
76 |
|
Changes in fair value of derivative liabilities |
|
|
41 |
|
|
|
(74 |
) |
|
|
(225 |
) |
|
|
(46 |
) |
(Loss) gain from settlements of liabilities |
|
|
(533 |
) |
|
|
53 |
|
|
|
(2,378 |
) |
|
|
1,139 |
|
Total other income (expense) |
|
|
(1,251 |
) |
|
|
(632 |
) |
|
|
(4,365 |
) |
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) before income taxes |
|
$ |
302 |
|
|
$ |
(1,426 |
) |
|
$ |
(4,845 |
) |
|
$ |
(3,376 |
) |
Income tax expense |
|
|
(2,522 |
) |
|
|
- |
|
|
|
(2,543 |
) |
|
|
- |
|
Net loss |
|
$ |
(2,220 |
) |
|
$ |
(1,426 |
) |
|
$ |
(7,388 |
) |
|
$ |
(3,376 |
) |
Fixed dividends to Series B preferred shareholders |
|
|
(317 |
) |
|
|
- |
|
|
|
(635 |
) |
|
|
- |
|
Contribution from Series B preferred shareholders |
|
|
367 |
|
|
|
- |
|
|
|
367 |
|
|
|
- |
|
Net loss attributable to common stockholders |
|
$ |
(2,170 |
) |
|
$ |
(1,426 |
) |
|
$ |
(7,656 |
) |
|
$ |
(3,376 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,220 |
) |
|
$ |
(1,426 |
) |
|
$ |
(7,388 |
) |
|
$ |
(3,376 |
) |
Foreign currency translation loss |
|
|
530 |
|
|
(5 |
) |
|
|
269 |
|
|
(108 |
) |
||
Total comprehensive loss |
|
$ |
(1,691 |
) |
|
$ |
(1,431 |
) |
|
$ |
(7,119 |
) |
|
$ |
(3,484 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss loss per common share – basic and diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.22 |
) |
Weighted average number of common shares outstanding – basic and diluted |
|
|
57,871 |
|
|
|
17,637 |
|
|
|
56,518 |
|
|
|
15,066 |
|
Boxlight Corporation Reconciliation of Net Loss for the Three Months Ended June 30, 2021 and 2020 to EBITDA and Adjusted EBITDA (unaudited) (in thousands) |
||||||||
(in thousands) |
|
June 30, 2021 |
|
|
June 30, 2020 |
|
||
Net loss |
|
$ |
(2,220 |
) |
|
$ |
(1,426 |
) |
Depreciation and amortization |
|
|
1,815 |
|
|
|
221 |
|
Interest expense |
|
|
764 |
|
|
|
628 |
|
Income tax benefit |
|
|
2,522 |
|
|
|
- |
|
EBITDA |
|
$ |
2,881 |
|
$ |
(577 |
) |
|
Stock-based compensation expense |
|
|
1,182 |
|
|
|
249 |
|
Change in fair value of derivative liabilities |
|
|
(41 |
) |
|
|
74 |
|
Purchase accounting impact of fair valuing inventory |
|
|
15 |
|
|
|
14 |
|
Purchase accounting impact of fair valuing deferred revenue |
|
|
790 |
|
|
|
- |
|
Net loss on settlement of Lind debt in stock |
|
|
532 |
|
|
|
244 |
|
Adjusted EBITDA |
|
$ |
5,359 |
|
|
$ |
4 |
|
Boxlight Corporation Reconciliation of Net Loss for the Six Months Ended June 30, 2021 and 2020 to EBITDA and Adjusted EBITDA (unaudited) (in thousands) |
||||||||
(in thousands) |
|
June 30, 2021 |
|
|
June 30, 2020 |
|
||
Net loss |
|
$ |
(7,388 |
) |
|
$ |
(3,376 |
) |
Depreciation and amortization |
|
|
3,570 |
|
|
|
440 |
|
Interest expense |
|
|
1,782 |
|
|
|
1,088 |
|
Income tax benefit |
|
|
2,543 |
|
|
|
- |
|
EBITDA |
|
$ |
507 |
|
$ |
(1,848 |
) |
|
Stock-based compensation expense |
|
|
1,859 |
|
|
|
520 |
|
Change in fair value of derivative liabilities |
|
|
225 |
|
|
|
46 |
|
Purchase accounting impact of fair valuing inventory |
|
|
30 |
|
|
|
19 |
|
Purchase accounting impact of fair valuing deferred revenue |
|
|
1,597 |
|
|
|
- |
|
Net loss on settlement of Lind debt in stock |
|
|
2,735 |
|
|
|
591 |
|
Adjusted EBITDA |
|
$ |
6,953 |
|
|
$ |
(672 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005837/en/
FAQ
What were Boxlight's Q2 2021 revenues?
What is Boxlight's adjusted EBITDA for Q2 2021?
What is Boxlight's net loss per share for Q2 2021?
What is Boxlight's revenue guidance for Q3 2021?
