Boxlight Reports Third Quarter 2023 Financial Results
- Key U.S. customer orders increased, indicating improved customer demand.
- The company received several awards for its products, showcasing industry recognition and potential for increased market share.
- The release of the first Google EDLA certified interactive flat panel, the Clevertouch IMPACT Lux, demonstrates the company's commitment to innovation and staying competitive in the market.
- Revenue decreased by 28%, reflecting softer industry demand.
- Net loss per share was $(1.90), compared to net income in the prior year quarter, indicating a significant decline in profitability.
-
Revenue was
$49.7 million 28% from the prior year quarter
-
Net loss per basic and diluted common share was
$(1.90) $0.31 $0.28
-
Adjusted EBITDA decreased by
$5.0 million $4.9 million
-
Ended quarter with
$18.4 million $61.4 million $30.6 million
-
Expect Q4 2023 Revenue and adjusted EBITDA to remain flat with prior year at
$43 million $3 million
-
Sales orders increased
11% to$48.5 million
Key Financial Highlights for Q3 2023 as Compared to Q3 2022
-
Revenue decreased by
28% to$49.7 million
-
Customer orders increased
11% to$49.4 million
-
Gross profit margin improved by 570 basis points to
36.3%
-
Net loss was
$17.8 million $3.1 million
-
Adjusted EBITDA decreased by
$4.9 million $4.9 million
-
Net loss per basic and diluted common share was
$(1.90) $0.31 $0.28
-
Ended the quarter with
$18.4 million $61.4 million $30.6 million
Key Business Highlights for Q3 2023
-
Received key
U.S. customer orders of$7.0 million $5.0 million $2.6 million $1.2 million
-
Received key international customer orders of
$2.3 million UK ),$1.5 million Germany ) and$1.2 million Germany ).
- Received nine Tech & Learning Best for Back to School Awards across multiple products and brands including MimioWall, MimioDS, MyBot Recruit, IMPACT Lux and Teacher Action! Mic.
- Won Digital Signage Technology of the Year for CleverLive at the 2023 AV Awards.
- Announced the release of the first Google EDLA certified interactive flat panel, the Clevertouch IMPACT Lux and Mimio ProG, bundled with accelerated Level 1 and Level 2 Google Certification teacher training.
- Expanded the Clevertouch CM Series, which now includes high bright panels, totems, 16/7 and 24/7 displays, menu boards and LED Video walls.
Management Commentary
“We saw a decline in revenue for the third quarter, largely due to softer industry demand,” commented Michael Pope, Chairman and Chief Executive Officer. “However, we did see improved customer demand as indicated by customer order growth. For the fourth quarter, we expect revenue and Adjusted EBITDA to be in line with the fourth quarter of 2022. Looking forward to 2024, we are optimistic that we will return to revenue growth and deliver improved profitability.”
Financial Results for the Three Months Ended September 30, 2023
Total revenues for the three months ended September 30, 2023 were
Cost of revenues for the three months ended September 30, 2023 were
Gross profit for the three months ended September 30, 2023 was
Total operating expenses for the three months ended September 30, 2023 were
Other expense, net for the three months ended September 30, 2023 was
Net loss was
The net loss attributable to common shareholders was
Total comprehensive loss was
Basic and diluted EPS for the three months ended September 30, 2023 was
EBITDA loss for the three months ended September 30, 2023 was
Adjusted EBITDA for the three months ended September 30, 2023 was
At September 30, 2023, Boxlight had
Financial Results for the Nine Months Ended September 30, 2023
Total revenues for the nine months ended September 30, 2023 were
Cost of revenues for the nine months ended September 30, 2023 were
Gross profit for the nine months ended September 30, 2023 was
Total operating expenses for the nine months ended September 30, 2023 were
Other expense, net for the nine months ended September 30, 2023 was
The Company reported net loss of
Net loss attributable to common shareholders was
Total comprehensive loss was
Basic and diluted EPS for the nine months ended September 30, 2023 was
EBITDA loss for the nine months ended September 30, 2023 was
Adjusted EBITDA for the nine months ended September 30, 2023 was
Third Quarter 2023 Financial Results Conference Call
The Company will hold a conference call to announce its third quarter 2023 financial results on Wednesday, November 8, 2023, at 4:30 p.m. Eastern Time.
The conference call details are as follows: |
|
Date: |
Wednesday, November 8, 2023 |
Time: |
4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time |
Dial-in: |
1-888-506-0062 (Domestic) |
|
1-973-528-0011 (International) |
Participant Access Code: |
391836 |
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, Wednesday, November 22, 2023, by dialing 1-877-481-4010 (domestic) and 1-919-882-2331 (international) and referencing the replay passcode 49195.
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.
|
Three Months
|
|
Three Months
|
%
|
||||
|
(Dollars in thousands) |
|
||||||
Total revenues |
|
|
|
|
||||
As reported |
$ |
49,667 |
|
|
$ |
68,736 |
(28 |
)% |
Impact of foreign currency translation |
|
(1,705 |
) |
|
|
- |
|
|
Constant-currency |
$ |
47,962 |
|
|
$ |
68,736 |
(30 |
)% |
|
Nine Months
|
|
Nine Months
|
%
|
|||
|
(Dollars in thousands) |
|
|||||
Total revenues |
|
|
|
|
|||
As reported |
$ |
137,909 |
|
$ |
178,967 |
(23 |
)% |
Impact of foreign currency translation |
|
752 |
|
|
- |
|
|
Constant-currency |
$ |
138,661 |
|
$ |
178,967 |
(23 |
)% |
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 August 9, 2023.
Boxlight Corporation |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
As of September 30, 2023 and December 31, 2022 |
|||||||
(in thousands, except share and per share amounts) |
|||||||
|
September 30,
|
|
December 31,
|
||||
|
(Unaudited) |
|
(as adjusted)* |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
18,415 |
|
|
$ |
14,591 |
|
Accounts receivable – trade, net of allowances |
|
40,421 |
|
|
|
31,009 |
|
Inventories, net of reserves |
|
44,142 |
|
|
|
58,211 |
|
Prepaid expenses and other current assets |
|
8,099 |
|
|
|
7,433 |
|
Total current assets |
|
111,077 |
|
|
|
111,244 |
|
|
|
|
|
||||
Property and equipment, net of accumulated depreciation |
|
1,500 |
|
|
|
1,733 |
|
Operating lease right of use asset |
|
8,428 |
|
|
|
4,350 |
|
Intangible assets, net of accumulated amortization |
|
46,547 |
|
|
|
52,579 |
|
Goodwill |
|
11,969 |
|
|
|
25,092 |
|
Other assets |
|
851 |
|
|
|
397 |
|
Total assets |
$ |
180,372 |
|
|
$ |
195,395 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
35,988 |
|
|
$ |
36,566 |
|
Short-term debt |
|
1,022 |
|
|
|
845 |
|
Operating lease liabilities, current |
|
1,570 |
|
|
|
1,898 |
|
Deferred revenues, current |
|
8,202 |
|
|
|
8,308 |
|
Derivative liabilities |
|
422 |
|
|
|
472 |
|
Other short-term liabilities |
|
2,441 |
|
|
|
386 |
|
Total current liabilities |
|
49,645 |
|
|
|
48,475 |
|
|
|
|
|
||||
Deferred revenues, non-current |
|
15,531 |
|
|
|
15,603 |
|
Long-term debt |
|
43,355 |
|
|
|
43,778 |
|
Deferred tax liabilities, net |
|
5,584 |
|
|
|
4,680 |
|
Operating lease liabilities, non-current |
|
7,106 |
|
|
|
2,457 |
|
Total liabilities |
|
121,221 |
|
|
|
114,993 |
|
|
|
|
|
||||
|
|
|
|
||||
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 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
118,733 |
|
|
|
117,849 |
|
Accumulated deficit |
|
(86,604 |
) |
|
|
(65,043 |
) |
Accumulated other comprehensive loss |
|
(1,488 |
) |
|
|
(914 |
) |
Total stockholders’ equity |
|
30,642 |
|
|
|
51,893 |
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
$ |
180,372 |
|
|
$ |
195,395 |
|
* As adjusted for reverse stock split.
Boxlight Corporation |
|||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss |
|||||||||||||||
For the three and nine months ended September 30, 2023 and 2022 |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenues, net |
$ |
49,667 |
|
|
$ |
68,736 |
|
|
$ |
137,909 |
|
|
$ |
178,967 |
|
Cost of revenues |
|
31,653 |
|
|
|
47,716 |
|
|
|
86,919 |
|
|
|
128,497 |
|
Gross profit |
|
18,014 |
|
|
|
21,020 |
|
|
|
50,990 |
|
|
|
50,470 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expense: |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
15,408 |
|
|
|
13,952 |
|
|
|
45,366 |
|
|
|
44,714 |
|
Research and development |
|
979 |
|
|
|
604 |
|
|
|
2,101 |
|
|
|
1,865 |
|
Impairment of goodwill |
|
13,226 |
|
|
|
— |
|
|
|
13,226 |
|
|
|
— |
|
Total operating expense |
|
29,613 |
|
|
|
14,556 |
|
|
|
60,693 |
|
|
|
46,579 |
|
|
|
|
|
|
|
|
|
||||||||
(Loss) income from operations |
|
(11,599 |
) |
|
|
6,464 |
|
|
|
(9,703 |
) |
|
|
3,891 |
|
|
|
|
|
|
|
|
|
||||||||
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(2,987 |
) |
|
|
(2,598 |
) |
|
|
(8,222 |
) |
|
|
(7,330 |
) |
Other expense, net |
|
(181 |
) |
|
|
(128 |
) |
|
|
(231 |
) |
|
|
(204 |
) |
Gain on settlement of liabilities, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
856 |
|
Change in fair value of derivative liabilities |
|
90 |
|
|
|
(113 |
) |
|
|
50 |
|
|
|
1,537 |
|
Total other expense |
|
(3,078 |
) |
|
|
(2,839 |
) |
|
|
(8,403 |
) |
|
|
(5,141 |
) |
(Loss) income before income taxes |
$ |
(14,677 |
) |
|
$ |
3,625 |
|
|
$ |
(18,106 |
) |
|
$ |
(1,250 |
) |
Income tax expense |
|
(3,073 |
) |
|
|
(520 |
) |
|
|
(3,379 |
) |
|
|
(475 |
) |
Net (loss) income |
$ |
(17,750 |
) |
|
$ |
3,105 |
|
|
$ |
(21,485 |
) |
|
$ |
(1,725 |
) |
Fixed dividends - Series B Preferred |
|
(317 |
) |
|
|
(317 |
) |
|
|
(952 |
) |
|
|
(952 |
) |
Net (loss) income attributable to common stockholders |
$ |
(18,067 |
) |
|
$ |
2,788 |
|
|
$ |
(22,437 |
) |
|
$ |
(2,677 |
) |
|
|
|
|
|
|
|
|
||||||||
Comprehensive loss: |
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(17,750 |
) |
|
$ |
3,105 |
|
|
$ |
(21,485 |
) |
|
$ |
(1,725 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment |
|
(2,854 |
) |
|
|
(5,040 |
) |
|
|
(574 |
) |
|
|
(11,449 |
) |
Total comprehensive loss |
$ |
(20,604 |
) |
|
$ |
(1,935 |
) |
|
$ |
(22,059 |
) |
|
$ |
(13,174 |
) |
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per common share – basic, as adjusted |
$ |
(1.90 |
) |
|
$ |
0.31 |
|
|
$ |
(2.39 |
) |
|
$ |
(0.32 |
) |
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per common share - diluted, as adjusted |
$ |
(1.90 |
) |
|
$ |
0.28 |
|
|
$ |
(2.39 |
) |
|
$ |
(0.32 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding – basic, as adjusted |
|
9,484 |
|
|
|
8,943 |
|
|
|
9,399 |
|
|
|
8,432 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares outstanding – diluted, as adjusted |
|
9,484 |
|
|
|
11,197 |
|
|
|
9,399 |
|
|
|
8,432 |
|
* As adjusted for reverse stock split.
Reconciliation of net (loss) income for the three and nine months September 30, 2023 and 2022 to EBITDA and |
|||||||||||||||
Adjusted EBITDA |
|||||||||||||||
(in thousands) |
|
Three Months
|
|
Three Months
|
|
Nine Months
|
|
Nine Months
|
|||||||
Net (Loss) Income |
|
$ |
(17,750 |
) |
|
$ |
3,105 |
|
$ |
(21,485 |
) |
|
$ |
(1,725 |
) |
Depreciation and amortization |
|
|
2,332 |
|
|
|
2,231 |
|
|
6,893 |
|
|
|
6,818 |
|
Interest expense |
|
|
2,987 |
|
|
|
2,598 |
|
|
8,222 |
|
|
|
7,330 |
|
Income tax expense |
|
|
3,073 |
|
|
|
520 |
|
|
3,379 |
|
|
|
475 |
|
EBITDA |
|
$ |
(9,358 |
) |
|
$ |
8,454 |
|
$ |
(2,991 |
) |
|
$ |
12,898 |
|
Stock compensation expense |
|
|
671 |
|
|
|
603 |
|
|
1,823 |
|
|
|
2,665 |
|
Change in fair value of derivative liabilities |
|
|
(90 |
) |
|
|
113 |
|
|
(50 |
) |
|
|
(1,537 |
) |
Purchase accounting impact of fair valuing inventory |
|
|
113 |
|
|
|
189 |
|
|
336 |
|
|
|
1,395 |
|
Purchase accounting impact of fair valuing deferred revenue |
|
|
366 |
|
|
|
509 |
|
|
1,308 |
|
|
|
1,747 |
|
Gain on settlement of debt |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(856 |
) |
Impairment of goodwill |
|
|
13,226 |
|
|
|
— |
|
|
13,226 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
4,928 |
|
|
$ |
9,868 |
|
$ |
13,652 |
|
|
$ |
16,312 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231108025245/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
FAQ
What was Boxlight Corporation's Q3 2023 revenue?
What were the company's key U.S. customer orders in Q3 2023?
What product release did Boxlight Corporation announce in Q3 2023?
