LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Boxlight Corporation (Nasdaq: BOXL) (“Boxlight”), a leading provider of technology solutions for the global education market, today announced the Company’s financial results for the second quarter ended June 30, 2018.
“Our approach continues to translate into strong financial results. In the second quarter, we grew revenues over 61% year-over-year to $9.7 million,” commented Mark Elliott, Chief Executive Officer of Boxlight. “During the quarter, we provided our products to over 5,000 classrooms. Our strong growth is a result of greater adoption of our existing product suite, continued product introductions and growth in our reseller network.”
“We entered the second half of 2018 with the strongest pipeline in our company’s history including over $10 million in backorders which was equal to our total Q3 sales last year. We expect to deliver the majority of these orders in the third quarter, including significant installations in Beaufort County, South Carolina and Clayton County, Georgia.”
Mr. Elliott concluded, “Boxlight has a clear vision to help lead and shape the future of education in the classroom. Through our comprehensive and integrated suite of hardware and software products, our goal is to become the single source solution to satisfy the needs of educators around the globe and provide a holistic approach to the modern classroom.”
Second Quarter 2018 Financial Highlights
- Revenue of $9.7 million increased 61.5% from $6.0 million in the second quarter of 2017. Revenue growth reflects increased sales volume driven by greater adoption of Boxlight’s product solution suite.
- Gross profit of $1.7 million was flat with the prior year period. As a percent of revenue, gross margin was 17.9% compared to 28.6% in the second quarter of 2017. Gross margin in the quarter was impacted by an estimated 10% due to lower margins on the initial deliveries of two large projects and an accelerated delivery schedule associated with those projects. We have negotiated a reduction in cost of goods with our key vendor for these projects that will increase the profit margins by approximately 10% beginning in the third quarter of 2018.
- Operating expenses of $3.9 million increased 62% from $2.4 million in the second quarter of 2017, primarily driven by a $1.4 million increase in general and administrative expenses, which includes higher stock compensation of $0.7 million, contract services of $0.3 million, commissions of $0.2 million and professional fees primarily related to a management advisory agreement of $0.1 million.
- Net loss was $(4.5) million, or $(0.45) per share, compared to a net loss of $(0.8) million, or $(0.18) per share, in the second quarter of 2017. The increase in the net loss was primarily due to an increase in cost of sales and operating expenses.
- Adjusted EBITDA was a loss of $(1.2) million compared to a loss of $(0.5) million in the second quarter of 2017. Adjusted EPS was a loss of $(0.13) million compared to a loss of $(0.11) million in the second quarter of 2017.
On June 21, 2018, Boxlight highlighted that Clayton County, Georgia’s fifth-largest school district, is installing its innovative Mimio classroom solution suite in approximately 3,200 classrooms, including 37 elementary, 14 middle and 11 high schools. The contract with Clayton County Public Schools (CCPS) will result in over $11 million in sales with an anticipated completion date by the end of 2018.
On June 22, 2018, the Company announced its acquisition of Qwizdom, an education software company, for a total consideration of approximately $2.5 million. Qwizdom’s world-class software solutions and trusted partner relationships are expected to enhance Boxlight’s existing product suite and expand the Company’s distribution network. The acquisition also brings the expertise of Qwizdom’s software development team as well as industry software veteran and Qwizdom CEO, Darin Beamish. Beamish will lead software development at Boxlight and manage the global comprehensive software product roadmap for the Qwizdom and Mimio classroom solution suite.
On June 25, 2018, the Company was added to the Russell MicroCap Index. Boxlight’s membership means automatic inclusion in the appropriate growth and value style indexes widely used by institutional investors to benchmark the performance of active investment strategies.
On July 2, 2018, Boxlight highlighted that its interactive touch technology offering, MimioSpace, was named as a Best of Show winner by Tech & Learning at the 2018 International Society for Technology in Education (ISTE) Conference and Expo.
Second quarter 2018 Financial Results Conference Call
Management will host a conference call to discuss the second quarter 2018 financial results today, Thursday, August 16, 2018 at 4:30 p.m. Eastern Time. The conference call details are as follows:
|Date:||Thursday, August 16, 2018|
|Time:||4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time|
For those unable to participate during the live broadcast, a replay of the call will also be available from 8:00 p.m. Eastern Time on August 16, 2018 through 11:59 p.m. Eastern Time on August 30, 2018 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13681838.
Use of Non-GAAP Financial Measures
To supplement Boxlight’s financial statements presented on a GAAP basis, Boxlight provides EBITDA, Adjusted EBITDA, and Adjusted EPS 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 income, interest expense, depreciation and amortization. Adjusted EBITDA represents EBITDA plus stock-based compensation and non-recurring IPO expenses. 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 education 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 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, 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.
|June 30,||December 31,|
|Cash and cash equivalents||$||1,799,024||$||2,010,325|
|Accounts receivable – trade, net of allowances||5,019,988||3,089,932|
|Inventories, net of reserve||3,487,210||4,626,569|
|Prepaid expenses and other current assets||1,978,291||388,006|
|Total current assets||12,284,513||10,114,832|
|Property and equipment, net of accumulated depreciation||323,777||29,752|
|Intangible assets, net of accumulated amortization||6,850,135||6,126,558|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable and accrued expenses||$||3,057,354||$||2,502,962|
|Accounts payable and accrued expenses – related parties||5,110,792||4,391,713|
|Short-term debt – related party||163,333||54,000|
|Other current liabilities – related party||136,667||-|
|Convertible notes payable – related party||50,000||50,000|
|Deferred revenues – short-term||1,726,717||1,127,423|
|Total current liabilities||14,345,498||11,227,755|
|Long term debt – related party||546,667||-|
|Other long-term liabilities – related party||273,333||-|
|Deferred revenues – long-term||167,573||175,294|
|Commitments and contingencies|
|Preferred stock, $0.0001 par value, 50,000,000 shares authorized;||25||25|
|Common stock, $0.0001 par value, 200,000,000 shares authorized; 9,558,998 and 4,621,687 Class A shares issued and outstanding, respectively||1,006||956|
|Additional paid-in capital||25,993,583||21,125,956|
|Other comprehensive loss||(73,534||)||(47,848||)|
|Total stockholders’ equity||8,530,307||9,050,376|
|Total liabilities and stockholders’ equity||$||23,863,378||$||20,453,425|
|Three Months Ended June 30,|
|Cost of revenues||7,938,340||4,273,396|
|General and administrative expenses||3,726,585||2,302,981|
|Research and development||177,098||107,107|
|Total operating expense||3,903,683||2,410,088|
|Loss from operations||(2,178,366||)||(699,044||)|
|Other income (expense):|
|Interest expense, net||(207,271||)||(106,607||)|
|Other income (expense), net||16,732||(8,482||)|
|Change in fair value of derivative liability||(2,191,677||)||-|
|Gain on settlement of liabilities||103,560||-|
|Total other income (expense)||(2,278,656||)||(115,089||)|
|Other comprehensive loss:|
|Foreign currency translation gain (loss)||(30,549||)||7,187|
|Total comprehensive loss||$||(4,487,571||)||$||(806,946||)|
|Net loss per common share – basic and diluted||$||(0.45||)||$||(0.18||)|
Weighted average number of common shares outstanding – basic and diluted
|Three Months Ended June 30,|
|Depreciation and amortization||194||183|
|Three Months Ended June 30,|
|Depreciation and amortization||194||183|
|Stock compensation expense||636||38|
|Change in fair value of derivative liability||2,192||-|