Boxlight Reports Second Quarter 2023 Financial Results
-
Revenue was
for the quarter, a decrease of$47.1 million 21.1% from the prior year quarter -
Net loss per basic and diluted common share decreased by
to ($0.08 ) from the prior year quarter$0.12 -
Adjusted EBITDA increased by
to$0.2 million from the prior year quarter$5.4 million -
Ended quarter with
in Cash,$15.6 million in Working Capital and$64.8 million in Stockholders’ Equity$50.9 million -
Expect Q3 2023 Revenue of
and Adjusted EBITDA of$60 million $10 million
Key Financial Highlights for Q2 2023 as Compared to Q2 2022
-
Revenue decreased by
21.1% to$47.1 million -
Customer orders decreased by
37% to$51.2 million -
Gross profit margin improved by 970 basis points to
37.9% -
Net loss increased by
to$0.8 million ( $0.8) million -
Adjusted EBITDA increased by
to$0.2 million $5.4 million -
Net loss per basic and diluted common share decreased by
to ($0.08 )$0.12 -
Ended the quarter with
in Cash,$15.6 million in Working Capital and$64.8 million in Stockholders’ Equity$50.9 million
Key Business Highlights for Q2 2023
-
Received key
U.S. customer orders of from Bluum,$7.2 million from Graphics Distribution,$6.7 million from Data Projections, and$2.8 million from Camera Mundi.$1.8 million -
Received key international customer orders of
from ASI Solutions ($2.6 million Australia ) and from Avion Interactive ($1.0 million Finland ). - Achieved Education Services Partner Specialization in the Google Cloud Partner Advantage program for our EOS professional services group.
- Launched PowerLine, a low-voltage power supply, and the MyFrontRow app for intuitive control of classroom audio from interactive displays for our ezRoom audio system.
- Introduced MyBot, an upgraded education robotics system as part of our STEM product line.
- Introduced the Clevertouch IMPACT Lux, a Google EDLA-certified interactive display at ISTE Live 2023 and expect to commence shipments during the third quarter of 2023.
- Received five Tech & Learning Awards of Excellence for Best of 2023 across multiple products and brands including Mimio Pro4, CleverLive, CleverHub, Clevertouch UX and Mimio DS.
- Awarded The Best Technology Solution for Student Safety for our FrontRow Attention! Product at the 5th Annual EdTech Breakthrough Awards.
- Won seven Best in Show awards at InfoComm 2023 for our MimioWall, Mimio DS, IMPACT Lux, CleverLive and LYNX Whiteboard solutions.
Management Commentary
“Although demand remained softer than expected during the second quarter, we delivered record gross profit margin and strong profitability for the second quarter,” commented Michael Pope, Chairman and Chief Executive Officer. “Our increased profitability compared to Q2 2022 is attributable to our gross profit margin of
Financial Results for the Three Months Ended June 30, 2023
Total revenues for the three months ended June 30, 2023 were
Cost of revenues for the three months ended June 30, 2023 were
Gross profit for the three months ended June 30, 2023 was
Total operating expenses for the three months ended June 30, 2023 were
Other expense, net for the three months ended June 30, 2023 was
Net loss was
The net loss attributable to common shareholders was
Total comprehensive income was
Basic and diluted EPS for the three months ended June 30, 2023 was (
EBITDA for the three months ended June 30, 2023 was
Adjusted EBITDA for the three months ended June 30, 2023 was
At June 30, 2023, Boxlight had
Financial Results for the Six Months Ended June 30, 2023
Total revenues for the six months ended June 30, 2023 were
Cost of revenues for the six months ended June 30, 2023 were
Gross profit for the six months ended June 30, 2023 was
Total operating expenses for the six months ended June 30, 2023 were
Other expense, net for the six months ended June 30, 2023 was
The Company reported a net loss of
The net loss attributable to common shareholders was
Total comprehensive loss was
EPS loss for the six months ended June 30, 2023 was (
EBITDA for the six months ended June 30, 2023 was
Adjusted EBITDA for the six months ended June 30, 2023 was
Second Quarter 2023 Financial Results Conference Call
Boxlight Corporation, a
The conference call details are as follows:
Date: |
Wednesday, August 9, 2023 |
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Time: |
4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time |
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Dial-in: |
1-888-506-0062 (Domestic) 1-973-528-0011 (International) |
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Participant Access Code: |
437132 |
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Webcast: |
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 Wednesday, August 23, 2023, by dialing 1-877-481-4010 (domestic) and 1-919-882-2331 (international) and referencing the replay passcode 48673.
Use of Non-GAAP Financial Measures
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
We report our operating results in accordance with
We believe disclosure of constant-currency results is helpful to investors because it facilitates period-to-period comparisons of our results by increasing the transparency of our underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, constant-currency results are non-
Discussion of the Effect of Constant Currency on Financial Condition
We calculate constant-currency amounts by translating local currency amounts in the current period at actual foreign exchange rates for the prior year period. Our constant-currency results do not eliminate the transaction currency impact of purchases and sales of products in a currency other than the functional currency.
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Three months ended |
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Three months ended |
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June 30, |
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June 30, |
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% |
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|
2023 |
|
2022 |
|
Decrease |
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(Dollars in thousands) |
|||||||
Total revenues |
|
|
|
|
||||
As reported |
$ |
47,052 |
|
$ |
59,628 |
(21 |
)% |
|
Impact of foreign currency |
|
88 |
|
|
- |
|
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Constant-currency |
$ |
47,140 |
|
$ |
59,628 |
(21 |
)% |
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||||
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Six Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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% |
|||
|
2023 |
|
2022 |
|
Decrease |
|||
|
(Dollars in thousands) |
|||||||
Total revenues |
|
|
|
|
||||
As reported |
$ |
88,242 |
|
$ |
110,231 |
(20 |
)% |
|
Impact of foreign currency |
|
2,341 |
|
|
- |
|
||
Constant-currency |
$ |
90,583 |
|
$ |
110,231 |
(18 |
)% |
|
About Boxlight Corporation
Boxlight Corporation (Nasdaq: BOXL) is a leading provider of interactive technology solutions under its award-winning brands Clevertouch®, FrontRow™ and Mimio®. Boxlight 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, audio solutions, supporting accessories, and professional services. For more information about Boxlight and the Boxlight story, visit http://www.boxlight.com, https://www.clevertouch.com and https://www.gofrontrow.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, including its Annual Report on Form 10-K for the year ended December 31, 2022, as filed on March 17, 2023 and its Quarterly Report on Form 10-Q filed on May 10, 2023.
Boxlight Corporation
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June 30, |
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December 31, |
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2023 |
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2022 |
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(Unaudited) |
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(as adjusted)* |
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ASSETS |
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|
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Current assets: |
|
|
|
|
|
|
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Cash and cash equivalents |
|
$ |
15,588 |
|
|
$ |
14,591 |
|
Accounts receivable – trade, net of allowances |
|
|
37,635 |
|
|
|
31,009 |
|
Inventories, net of reserves |
|
|
37,809 |
|
|
|
58,211 |
|
Prepaid expenses and other current assets |
|
|
10,014 |
|
|
|
7,433 |
|
Total current assets |
|
|
101,046 |
|
|
|
111,244 |
|
|
|
|
|
|
|
|
||
Property and equipment, net of accumulated depreciation |
|
|
1,545 |
|
|
|
1,733 |
|
Operating lease right of use asset |
|
|
3,556 |
|
|
|
4,350 |
|
Intangible assets, net of accumulated amortization |
|
|
49,869 |
|
|
|
52,579 |
|
Goodwill |
|
|
25,470 |
|
|
|
25,092 |
|
Other assets |
|
|
827 |
|
|
|
397 |
|
Total assets |
|
$ |
182,313 |
|
|
$ |
195,395 |
|
|
|
|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
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||
|
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|
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Current liabilities: |
|
|
|
|
|
|
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Accounts payable and accrued expenses |
|
$ |
21,108 |
|
|
$ |
36,566 |
|
Short-term debt |
|
|
3,807 |
|
|
|
845 |
|
Operating lease liabilities, current |
|
|
1,699 |
|
|
|
1,898 |
|
Deferred revenues, current |
|
|
8,248 |
|
|
|
8,308 |
|
Derivative liabilities |
|
|
512 |
|
|
|
472 |
|
Other short-term liabilities |
|
|
878 |
|
|
|
386 |
|
Total current liabilities |
|
|
36,252 |
|
|
|
48,475 |
|
|
|
|
|
|
|
|
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Deferred revenues, non-current |
|
|
15,682 |
|
|
|
15,603 |
|
Long-term debt |
|
|
43,369 |
|
|
|
43,778 |
|
Deferred tax liabilities, net |
|
|
5,571 |
|
|
|
4,680 |
|
Operating lease liabilities, non-current |
|
|
2,038 |
|
|
|
2,457 |
|
Total liabilities |
|
|
102,912 |
|
|
|
114,993 |
|
|
|
|
|
|
|
|
||
|
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|
|
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Mezzanine equity: |
|
|
|
|
|
|
||
Preferred Series B, 1,586,620 shares issued and outstanding |
|
|
16,146 |
|
|
|
16,146 |
|
Preferred Series C, 1,320,850 shares issued and outstanding |
|
|
12,363 |
|
|
|
12,363 |
|
Total mezzanine equity |
|
|
28,509 |
|
|
|
28,509 |
|
|
|
|
|
|
|
|
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Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
118,379 |
|
|
|
117,849 |
|
Accumulated deficit |
|
|
(68,854 |
) |
|
|
(65,043 |
) |
Accumulated other comprehensive income (loss) |
|
|
1,366 |
|
|
|
(914 |
) |
Total stockholders’ equity |
|
|
50,892 |
|
|
|
51,893 |
|
|
|
|
|
|
|
|
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Total liabilities and stockholders’ equity |
|
$ |
182,313 |
|
|
$ |
195,395 |
|
*As adjusted for reverse stock split |
Boxlight Corporation
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Three Months Ended |
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Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues, net |
|
$ |
47,052 |
|
|
$ |
59,628 |
|
|
$ |
88,242 |
|
|
$ |
110,231 |
|
Cost of revenues |
|
|
29,224 |
|
|
|
42,794 |
|
|
|
55,266 |
|
|
|
80,781 |
|
Gross profit |
|
|
17,828 |
|
|
|
16,834 |
|
|
|
32,976 |
|
|
|
29,450 |
|
|
|
|
|
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|
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Operating expense: |
|
|
|
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|
|
|
|
|
|
|
||||
General and administrative |
|
|
15,227 |
|
|
|
15,304 |
|
|
|
29,958 |
|
|
|
30,762 |
|
Research and development |
|
|
525 |
|
|
|
649 |
|
|
|
1,122 |
|
|
|
1,261 |
|
Total operating expense |
|
|
15,752 |
|
|
|
15,953 |
|
|
|
31,080 |
|
|
|
32,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income (loss) from operations |
|
|
2,076 |
|
|
|
881 |
|
|
|
1,896 |
|
|
|
(2,573 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
(2,788 |
) |
|
|
(2,417 |
) |
|
|
(5,235 |
) |
|
|
(4,733 |
) |
Other expense, net |
|
|
(28 |
) |
|
|
(60 |
) |
|
|
(50 |
) |
|
|
(74 |
) |
Gain on settlement of liabilities, net |
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
856 |
|
Change in fair value of derivative liabilities |
|
|
184 |
|
|
|
1,660 |
|
|
|
(40 |
) |
|
|
1,650 |
|
Total other expense |
|
|
(2,632 |
) |
|
|
(814 |
) |
|
|
(5,325 |
) |
|
|
(2,301 |
) |
Income (loss) before income taxes |
|
$ |
(556 |
) |
|
$ |
67 |
|
|
$ |
(3,429 |
) |
|
$ |
(4,874 |
) |
Income tax (expense) benefit |
|
|
(255 |
) |
|
|
(41 |
) |
|
|
(306 |
) |
|
|
45 |
|
Net income (loss) |
|
$ |
(811 |
) |
|
$ |
26 |
|
|
$ |
(3,735 |
) |
|
$ |
(4,829 |
) |
Fixed dividends - Series B Preferred |
|
|
(317 |
) |
|
|
(317 |
) |
|
|
(635 |
) |
|
|
(635 |
) |
Net loss attributable to common stockholders |
|
$ |
(1,128 |
) |
|
$ |
(291 |
) |
|
$ |
(4,370 |
) |
|
$ |
(5,464 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
(811 |
) |
|
$ |
26 |
|
|
$ |
(3,735 |
) |
|
$ |
(4,829 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustment |
|
|
1,722 |
|
|
|
(4,637 |
) |
|
|
2,280 |
|
|
|
(6,409 |
) |
Total comprehensive income (loss) |
|
$ |
911 |
|
|
$ |
(4,611 |
) |
|
$ |
(1,455 |
) |
|
$ |
(11,238 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per common share – basic and diluted, as adjusted* |
|
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding – basic and diluted, as adjusted* |
|
|
9,385 |
|
|
|
8,228 |
|
|
|
9,359 |
|
|
|
8,176 |
|
*As adjusted for reverse stock split. |
Reconciliation of net income (loss) for the three and six months June 30, 2023 and 2022 to EBITDA and Adjusted EBITDA |
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|
||||||||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||
(in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net Income (loss) |
|
$ |
(811 |
) |
|
$ |
26 |
|
|
$ |
(3,735 |
) |
|
$ |
(4,829 |
) |
Depreciation and amortization |
|
|
2,298 |
|
|
|
2,266 |
|
|
|
4,561 |
|
|
|
4,587 |
|
Interest expense |
|
|
2,788 |
|
|
|
2,417 |
|
|
|
5,235 |
|
|
|
4,733 |
|
Income tax expense (benefit) |
|
|
255 |
|
|
|
41 |
|
|
|
306 |
|
|
|
(45 |
) |
EBITDA |
|
$ |
4,530 |
|
|
$ |
4,750 |
|
|
$ |
6,367 |
|
|
$ |
4,446 |
|
Stock compensation expense |
|
|
511 |
|
|
|
929 |
|
|
|
1,152 |
|
|
|
2,062 |
|
Change in fair value of derivative liabilities |
|
|
(184 |
) |
|
|
(1,660 |
) |
|
|
40 |
|
|
|
(1,650 |
) |
Purchase accounting impact of fair valuing inventory |
|
|
80 |
|
|
|
589 |
|
|
|
223 |
|
|
|
1,206 |
|
Purchase accounting impact of fair valuing deferred revenue |
|
|
472 |
|
|
|
589 |
|
|
|
942 |
|
|
|
1,238 |
|
Gain on settlement of debt |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(856 |
) |
Adjusted EBITDA |
|
$ |
5,409 |
|
|
$ |
5,194 |
|
|
$ |
8,724 |
|
|
$ |
6,446 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230809689767/en/
Media
Sunshine Nance
+1 360-464-2119 x254
sunshine.nance@boxlight.com
Investor Relations
Greg Wiggins
+1 360-464-4478
investor.relations@boxlight.com
Source: Boxlight Corporation