Boxlight Reports First Quarter 2020 Results
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, May 15, 2020 – (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
“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|
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 learning 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 because 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.
+1 360-464-2119 x254