Boxlight Reports Second Quarter 2024 Financial Results
Financial and Operational Highlights:
-
Revenue was
$38.5 million for the quarter, a decrease of 18.1% from the prior year quarter - Gross profit margin in Q2'24 decreased to 37.7% from 37.9% from the prior year quarter
-
Net loss was
$1.5 million , compared to net loss of$0.8 million in the prior year quarter -
Net loss per basic and diluted common share was (
$0.18 ), compared to ($0.12 ) net loss per basic and diluted common share in the prior year quarter -
Adjusted EBITDA, a non-GAAP measure, decreased by
$1.7 million to$3.7 million from the prior year quarter - Launched new products, UNITY, an all-in-one hardware device used in classrooms and on campus to unite and manage audio communication and safety ecosystems, providing audio, bells, paging, and alerts
- Released TimeSign, an affordable 22” digital clock display for customized visual campus communications
- Introduced our STEM Robo 3D printer, a succinct and affordable 3D printer for K12, backed with nationally aligned STEM curriculum
- Recognized by TIME as one of the World’s Top 250 EdTech Companies of 2024 placing 28th
-
Ended the quarter with
$7.5 million in cash,$46.7 million in working capital and$7.5 million in stockholders’ equity
Management Commentary
“We have made substantial progress in aligning our organization with current demand levels, while selectively investing in new solutions and enhanced sales capabilities to position Boxlight for the anticipated growth in future demand," commented
“While this turnaround process will take time, we are positioning our Company to capture market share through our comprehensive product portfolio, aligning our brand and go-to-market strategy and identifying underserved markets, continued
Financial Results for the Three Months Ended
Total revenues were
Cost of revenues were
Gross profit was
Total operating expenses were
Other expense, net, 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
EBITDA, a non-GAAP measure, for the three months ended
Adjusted EBITDA for the three months ended
Financial Results for the Six Months Ended
Total revenues were
Gross profit was
Total operating expenses were
Net loss increased
Total comprehensive loss was
Basic and diluted EPS for the six months ended
EBITDA for the six months ended
Balance Sheet
At
The financial results for the three and six months ended
Second Quarter 2024 Financial Results Conference Call
The Company will hold a conference call to discuss its second quarter 2024 financial results on
The conference call details are as follows:
Date: |
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Time: |
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Dial-in: |
1-888-506-0062 (Domestic) |
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1-973-528-0011 (International) |
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Participant Access Code: |
668734 |
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Webcast: |
For those unable to participate during the live broadcast, a replay of the conference call will be available until
About
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, including the information under the heading "Financial Outlook." 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
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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% Decrease |
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(Dollars in thousands) |
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Total revenues |
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As reported |
$ |
38,514 |
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$ |
47,052 |
(18 |
)% |
Impact of foreign currency translation |
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(132 |
) |
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|
88 |
|
|
Constant-currency |
$ |
38,382 |
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|
$ |
47,140 |
(19 |
)% |
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Six Months Ended
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Six Months Ended
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% Decrease |
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(Dollars in thousands) |
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||||||
Total revenues |
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|
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As reported |
$ |
75,608 |
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$ |
88,242 |
(14 |
)% |
Impact of foreign currency translation |
|
(939 |
) |
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|
2,341 |
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Constant-currency |
$ |
74,669 |
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$ |
90,583 |
(18 |
)% |
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Condensed Consolidated Balance Sheets |
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As of |
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(in thousands, except share and per share amounts) |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
7,514 |
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$ |
17,253 |
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Accounts receivable – trade, net of allowances for credit losses of 304 and 421 |
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29,147 |
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29,523 |
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Inventories, net of reserves |
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37,847 |
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44,131 |
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Prepaid expenses and other current assets |
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10,610 |
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9,471 |
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Total current assets |
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85,118 |
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100,378 |
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Property and equipment, net of accumulated depreciation |
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2,512 |
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2,477 |
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Operating lease right of use asset |
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8,287 |
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8,846 |
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Intangible assets, net of accumulated amortization |
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41,999 |
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45,964 |
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Other assets |
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856 |
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|
|
906 |
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Total assets |
$ |
138,772 |
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$ |
158,571 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ |
22,707 |
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$ |
32,899 |
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Short-term debt |
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3,107 |
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|
1,037 |
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Operating lease liabilities, current |
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2,061 |
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1,827 |
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Deferred revenues, current |
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8,976 |
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8,698 |
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Derivative liabilities |
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9 |
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|
|
205 |
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Other short-term liabilities |
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1,598 |
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1,566 |
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Total current liabilities |
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38,458 |
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46,232 |
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Deferred revenues, non-current |
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16,046 |
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16,347 |
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Long-term debt |
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37,143 |
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39,134 |
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Deferred tax liabilities, net |
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4,319 |
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4,316 |
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Operating lease liabilities, non-current |
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6,813 |
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7,282 |
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Total liabilities |
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102,779 |
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113,311 |
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Mezzanine equity: |
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Preferred Series B, 1,586,620 shares issued and outstanding |
|
16,146 |
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16,146 |
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Preferred Series C, 1,320,850 shares issued and outstanding |
|
12,363 |
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12,363 |
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Total mezzanine equity |
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28,509 |
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28,509 |
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Stockholders’ equity: |
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Preferred stock, |
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— |
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|
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— |
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Common stock, |
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1 |
|
|
|
1 |
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Additional paid-in capital |
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119,882 |
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119,724 |
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Accumulated deficit |
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(112,842 |
) |
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(104,275 |
) |
Accumulated other comprehensive income |
|
443 |
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|
1,301 |
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Total stockholders’ equity |
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7,484 |
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|
16,751 |
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Total liabilities and stockholders’ equity |
$ |
138,772 |
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$ |
158,571 |
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Condensed Consolidated Statements of Operations and Comprehensive Loss |
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For the six months ended |
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(Unaudited) |
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(in thousands, except per share amounts) |
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Three Months Ended
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Six Months Ended
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues, net |
$ |
38,514 |
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$ |
47,052 |
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$ |
75,608 |
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$ |
88,242 |
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Cost of revenues |
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23,986 |
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|
29,224 |
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|
48,265 |
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|
55,266 |
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Gross profit |
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14,528 |
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|
|
17,828 |
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27,343 |
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|
32,976 |
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Operating expense: |
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General and administrative |
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12,321 |
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15,227 |
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27,570 |
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29,958 |
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Research and development |
|
985 |
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|
|
525 |
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|
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2,155 |
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|
|
1,122 |
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Total operating expense |
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13,306 |
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|
|
15,752 |
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|
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29,725 |
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31,080 |
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Income (loss) from operations |
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1,222 |
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|
|
2,076 |
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(2,382 |
) |
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|
1,896 |
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|
|
|
|
|
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Other (expense) income: |
|
|
|
|
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Interest expense, net |
|
(2,566 |
) |
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|
(2,788 |
) |
|
|
(5,173 |
) |
|
|
(5,235 |
) |
Other expense, net |
|
(229 |
) |
|
|
(28 |
) |
|
|
(429 |
) |
|
|
(50 |
) |
Change in fair value of derivative liabilities |
|
4 |
|
|
|
184 |
|
|
|
196 |
|
|
|
(40 |
) |
Total other expense |
|
(2,791 |
) |
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|
(2,632 |
) |
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|
(5,406 |
) |
|
|
(5,325 |
) |
Loss before income taxes |
$ |
(1,569 |
) |
|
$ |
(556 |
) |
|
$ |
(7,788 |
) |
|
$ |
(3,429 |
) |
Income tax (expense) benefit |
|
91 |
|
|
|
(255 |
) |
|
|
(779 |
) |
|
|
(306 |
) |
Net loss |
$ |
(1,478 |
) |
|
$ |
(811 |
) |
|
$ |
(8,567 |
) |
|
$ |
(3,735 |
) |
Fixed dividends - Series B Preferred |
|
(317 |
) |
|
|
(317 |
) |
|
|
(634 |
) |
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|
(635 |
) |
Net loss attributable to common stockholders |
$ |
(1,795 |
) |
|
$ |
(1,128 |
) |
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$ |
(9,201 |
) |
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$ |
(4,370 |
) |
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Comprehensive loss: |
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Net loss |
$ |
(1,478 |
) |
|
$ |
(811 |
) |
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$ |
(8,567 |
) |
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$ |
(3,735 |
) |
Other comprehensive loss: |
|
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|
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Foreign currency translation adjustment |
|
(47 |
) |
|
|
1,722 |
|
|
|
(858 |
) |
|
|
2,280 |
|
Total comprehensive income (loss) |
$ |
(1,525 |
) |
|
$ |
911 |
|
|
$ |
(9,426 |
) |
|
$ |
(1,455 |
) |
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Net loss per common share – basic and diluted |
$ |
(0.18 |
) |
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$ |
(0.12 |
) |
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$ |
(0.94 |
) |
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$ |
(0.47 |
) |
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|
|
|
|
|
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Weighted average number of common shares outstanding – basic and diluted |
|
9,787 |
|
|
|
9,385 |
|
|
|
9,751 |
|
|
|
9,359 |
|
Reconciliation of net loss for the six months ended |
||||||||||||||||
(in thousands) |
|
Three Months Ended
|
|
Three Months Ended
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|
Six Months Ended
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Six Months Ended
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Net Loss |
|
$ |
(1,478 |
) |
|
$ |
(811 |
) |
|
$ |
(8,567 |
) |
|
$ |
(3,735 |
) |
Depreciation and amortization |
|
|
2,043 |
|
|
|
2,298 |
|
|
|
4,112 |
|
|
|
4,561 |
|
Interest expense |
|
|
2,566 |
|
|
|
2,788 |
|
|
|
5,173 |
|
|
|
5,235 |
|
Income tax expense |
|
|
(91 |
) |
|
|
255 |
|
|
|
779 |
|
|
|
306 |
|
EBITDA |
|
$ |
3,040 |
|
|
$ |
4,530 |
|
|
$ |
1,497 |
|
|
$ |
6,367 |
|
Stock compensation expense |
|
|
243 |
|
|
|
511 |
|
|
|
792 |
|
|
|
1,152 |
|
Change in fair value of derivative liabilities |
|
|
(4 |
) |
|
|
(184 |
) |
|
|
(196 |
) |
|
|
40 |
|
Purchase accounting impact of fair valuing inventory |
|
|
113 |
|
|
|
80 |
|
|
|
225 |
|
|
|
223 |
|
Purchase accounting impact of fair valuing deferred revenue |
|
|
262 |
|
|
|
472 |
|
|
|
570 |
|
|
|
942 |
|
Severance charges |
|
|
— |
|
|
|
— |
|
|
|
943 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
3,654 |
|
|
$ |
5,409 |
|
|
$ |
3,831 |
|
|
$ |
8,724 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807518888/en/
Media
Sunshine NanceP
+1 360-464-2119 x254
sunshine.nance@boxlight.com
Investor Relations
+1 360-464-4478
investor.relations@boxlight.com
Source: