BEIJING, Sept. 19, 2016 /PRNewswire/ -- LightInTheBox
Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the
"Company"), a global online retail company that delivers products
directly to consumers around the world, today announced its
unaudited financial results for the second quarter of 2016.
Second Quarter 2016 Highlights
- GAAP net revenues were $65.6
million.
- GAAP net loss was $1.9 million,
compared with GAAP net loss of $5.6
million during the same quarter last year and GAAP net loss
of $2.1 million last quarter.
- GAAP gross margin was 37.2%, compared with 37.5% during the
same period last year and 36.8% last quarter.
Mr. Alan Guo, Chairman and CEO of
LightInTheBox, commented, "Over the past quarters we have worked to
improve our supply chain with fewer but higher quality product
suppliers, and faster and more efficient shipment performance. The
arrivals of Aokang and Zall as strategic investors and partners
have greatly contributed to these improvements. As a result, we have seen a major improvement in
customer satisfaction over the past quarter. We believe that
this will generate greater customer loyalty and lead to further
improvements in our operations in the future."
Second Quarter 2016 Financial Results
GAAP net revenues decreased 16.3% year-over-year to
$65.6 million from $78.4 million in the same quarter of 2015. Total
orders decreased 32.7% year-over-year to 1.4 million for the second
quarter of 2016, while the total number of customers who made a
purchase decreased 26.8% year-over-year to 1.2 million.
Revenues in the apparel category decreased 22.5% year-over-year
to $27.1 million for the second
quarter of 2016. As a percentage of total net revenues, apparel
revenues were 41.2%, compared with 44.6% in the same quarter of
2015. Revenues from other general merchandise decreased by 11.3%
year-over-year to $38.5 million for
the second quarter of 2016.
Revenues from Europe decreased
by 17.0% to $37.0 million,
representing 56.4% of total net revenues for the second quarter of
2016. Revenues from North America
decreased by 9.4% to $21.4 million,
representing 32.6% of total net revenues for the second quarter of
2016, while revenues from other countries decreased by 29.1% to
$7.2 million, representing 11.0% of
total net revenues for the same quarter.
Gross profit for the second quarter of 2016 was
$24.4 million, down from $29.5 million in the same period of 2015. Gross
margin was 37.2% in the second quarter of 2016, compared with 37.5%
in the same quarter of 2015.
Total operating expenses in the second quarter of 2016
were $26.5 million, compared with
$35.4 million in the same quarter of
2015.
- Fulfillment expenses in the second quarter of 2016 were
$4.1 million, compared with
$5.4 million in the same quarter of
2015. Fulfillment expenses per order were $2.99, an increase from $2.68 in the same quarter of 2015 and
$2.65 from the first quarter of
2016.
- Selling and marketing expenses in the second quarter of
2016 were $14.1 million, compared
with $20.1 million in the same
quarter of 2015. Selling and marketing expenses per order increased
to $10.35 from $9.97 in the same quarter 2015 and $8.32 from the first quarter of 2016.
- General and administrative (G&A) expenses in the
second quarter of 2016 were $8.3
million, compared with $9.8
million in the same quarter of 2015. As a percentage of
total net revenues, G&A expenses were 12.7%, compared with
12.5% in the same quarter of 2015 and 12.3% from the first quarter
of 2016. G&A expenses in the second quarter of 2016 included
$3.1 million in technology
investments, compared with $3.9
million in the same quarter of 2015.
Loss from operations was $2.0
million in the second quarter of 2016, compared with a loss
from operations of $5.9 million in
the same quarter of 2015.
Net loss was $1.9 million
in the second quarter of 2016, compared with a net loss of
$5.6 million in the same quarter of
2015.
Net loss per American Depository Share ("ADS") was
$0.03 in the second quarter of 2016,
compared with net loss per ADS of $0.12 in the same quarter of 2015. Each ADS
represents two ordinary shares.
Non-GAAP net loss was $1.0
million in the second quarter of 2016, compared with
non-GAAP net income of $7.1 million
in the same quarter of 2015.
Non-GAAP net loss per ADS was $0.01 in the second quarter of 2016, compared
with non-GAAP net income per ADS of $0.15 in the same quarter of 2015.
For the quarter ended June 30, 2016, the Company's weighted
average number of ADSs used in computing the loss per ADS was
68,680,447.
As of June 30, 2016, the Company
had cash and cash equivalents and restricted cash of
$97.3 million, compared with
$104.3 million as of March 31, 2016.
Recent Developments
On June 8, 2016, LightInTheBox
announced a $10 million share
repurchase program. As of June 30,
2016, the Company had repurchased a total of $0.2 million of its ADSs.
On June 22, 2016, LightInTheBox
announced the launch of its cross-border fulfillment services
business for Chinese manufacturers and merchants. The new
e-commerce fulfillment services will be integrated into
LanTingZhiTong, the Company's global open cross-border logistics
platform, and enable Chinese manufacturers and merchants to store
their products in the Company's domestic warehouses and rely on
LightInTheBox to manage their inventory and fulfil each
order.
Business Outlook
For the third quarter of 2016, based on current information and
seasonality, the Company expects net revenues to be between
$61.0 million and $63.0 million.
These forecasts reflect the Company's current and preliminary views
on the market and operational conditions, which are subject to
change.
Conference Call
The Company will hold a conference call at 8:00 a.m.
Eastern Time on Monday, September 19,
2016 to discuss its financial results and operating
performance for the second quarter of 2016. To participate in the
call, please dial the following numbers:
US Toll Free: 1-866-519-4004
Hong Kong Toll Free: 800-906-601
China: 400-620-8038
International: +65-6713-5090
Passcode: 79189909
A telephone replay will be available two hours after the
conclusion of the conference call through September 26, 2016. The dial-in details are:
US: +1-646-254-3697
Hong Kong: +852-3051-2780
International: +61-2-8199-0299
Passcode: 79189909
A live and archived webcast of the conference call will be
available on the Investor Relations section of LightInTheBox's
website at http://ir.lightinthebox.com.
About LightInTheBox Holding Co., Ltd.
LightInTheBox is a global online retail company that delivers
products directly to consumers around the world. The Company offers
customers a convenient way to shop for a wide selection of products
at attractive prices through its www.lightinthebox.com,
www.miniinthebox.com and other websites and mobile applications,
which are available in 27 major languages and cover more than 80%
of global Internet users.
For more information, please visit www.lightinthebox.com.
Investor Relations Contact
Christensen
Ms. Xiaoyan Su
Tel: +86 (10) 5900 3429
Email: ir@lightinthebox.com
OR
Christensen
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
Use of Non-GAAP Financial Measures
LightInTheBox uses non-GAAP net income (loss) and non-GAAP net
income (loss) per basic and diluted ADS, each of which is a
non-GAAP financial measure. Non-GAAP net income (loss) is net
income (loss) excluding the foreign exchange impact on net
revenues, share-based compensation and one-time expense. Non-GAAP
net income (loss) per basic and diluted ADS is non-GAAP net income
(loss) divided by weighted average number of basic and diluted ADS,
respectively. The Company continuously monitors the impact of
currency exchange rates on net revenues given that it is a global
company and has exposure to a variety of currencies. Starting in
the fourth quarter of 2014, there was a significant impact on net
revenues from changes in foreign currency exchange rates against
the U.S. dollar. Due to the nature of its business, the Company
believes that excluding the impact of such fluctuations more
appropriately reflects the Company's results of operations, and
provides investors with a better understanding of the Company's
business performance. The Company believes that separate analysis
and exclusion of foreign exchange impact on net revenues and the
non-cash impact of share-based compensation adds clarity to the
constituent parts of its performance. The Company reviews these
non-GAAP financial measures together with GAAP financial measures
to obtain a better understanding of its operating performance. It
uses these non-GAAP financial measures for planning, forecasting
and measuring results against the forecast. The Company believes
that non-GAAP financial measures are useful supplemental
information for investors and analysts to assess its operating
performance without the effect of foreign exchange impact on net
revenues, non-cash share-based compensation expenses and one-time
expense, which have been and will continue to be significant
recurring expenses in its business. However, the use of non-GAAP
financial measures has material limitations as an analytical tool.
One of the limitations of using non-GAAP financial measures is that
they do not include all items that impact the Company's net loss
for the period. In addition, because non-GAAP financial measures
are not measured in the same manner by all companies, they may not
be comparable to other similar titled measures used by other
companies. In light of the foregoing limitations, you should not
consider non-GAAP financial measure in isolation from or as an
alternative to the financial measure prepared in accordance with
U.S. GAAP. The presentation of these non-GAAP financial measures is
not intended to be considered in isolation from, or as a substitute
for, the financial information prepared and presented in accordance
with U.S. GAAP. For more information on these non-GAAP financial
measures, please see the table captioned "Unaudited Reconciliations
of GAAP and Non-GAAP Results" at the end of this release.
Forward-Looking Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets" and similar statements. Among other things, statements
that are not historical facts, including statements about
LightInTheBox's beliefs and expectations, the business outlook and
quotations from management in this announcement, as well as
LightInTheBox's strategic and operational plans, are or contain
forward-looking statements. LightInTheBox may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the "SEC"), in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following:
LightInTheBox's goals and strategies; LightInTheBox's future
business development, results of operations and financial
condition; the expected growth of the global online retail market;
LightInTheBox's ability to attract customers and further enhance
customer experience and product offerings; LightInTheBox's ability
to strengthen its supply chain efficiency and optimize its
logistics network; LightInTheBox's expectations regarding demand
for and market acceptance of its products; competition;
fluctuations in general economic and business conditions and
assumptions underlying or related to any of the foregoing. Further
information regarding these and other risks is included in
LightInTheBox's filings with the SEC. All information provided in
this press release and in the attachments is as of the date of this
press release, and LightInTheBox does not undertake any obligation
to update any forward-looking statement, except as required under
applicable law.
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
(U.S. dollar in
thousands)
|
|
|
|
As of December 31,
|
|
As of June 30,
|
|
|
2015
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
30,901
|
|
96,129
|
|
Restricted
cash
|
|
1,606
|
|
1,203
|
|
Accounts
receivable
|
|
920
|
|
2,199
|
|
Inventories,
net
|
|
11,261
|
|
7,349
|
|
Prepaid expenses and
other current assets
|
|
5,053
|
|
4,287
|
|
Total current
assets
|
|
49,741
|
|
111,167
|
|
Property and
equipment, net
|
|
2,209
|
|
1,390
|
|
Acquired intangible
assets, net
|
|
232
|
|
224
|
|
Goodwill
|
|
690
|
|
690
|
|
Long-term rental
deposit
|
|
658
|
|
653
|
|
Long-term
investment
|
|
1,963
|
|
1,915
|
|
TOTAL
ASSETS
|
|
55,493
|
|
116,039
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
29,351
|
|
14,638
|
|
Advance from
customers
|
|
8,282
|
|
10,213
|
|
Accrued expenses and
other current liabilities
|
|
19,983
|
|
20,773
|
|
Total current
liabilities
|
|
57,616
|
|
45,624
|
|
TOTAL
LIABILITIES
|
|
57,616
|
|
45,624
|
|
|
|
|
|
|
(DEFICIT)
EQUITY
|
|
|
|
|
|
Ordinary
shares
|
|
7
|
|
10
|
|
Treasury shares, at
cost
|
|
(19,996)
|
|
(20,149)
|
|
Additional paid-in
capital
|
|
159,190
|
|
236,029
|
|
Accumulated
deficit
|
|
(141,015)
|
|
(145,053)
|
|
Accumulated other
comprehensive loss
|
|
(309)
|
|
(422)
|
|
TOTAL (DEFICIT)
EQUITY
|
|
(2,123)
|
|
70,415
|
|
TOTAL LIABILITIES AND
EQUITY
|
|
55,493
|
|
116,039
|
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
(U.S. dollar in
thousands, except share data and per share data)
|
|
|
|
Three-month Period Ended
|
|
Six-month Period
Ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2016
|
2015
|
|
2016
|
|
Net
revenues
|
|
78,446
|
|
65,647
|
|
166,058
|
|
132,945
|
|
Cost of goods
sold
|
|
(48,992)
|
|
(41,204)
|
|
(106,845)
|
|
(83,731)
|
|
Gross
profit
|
|
29,454
|
|
24,443
|
|
59,213
|
|
49,214
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Fulfillment
|
|
(5,407)
|
|
(4,062)
|
|
(12,292)
|
|
(8,595)
|
|
Selling and
marketing
|
|
(20,144)
|
|
(14,081)
|
|
(51,695)
|
|
(28,286)
|
|
General and
administrative
|
|
(9,827)
|
|
(8,343)
|
|
(22,580)
|
|
(16,599)
|
|
Total operating
expenses
|
|
(35,378)
|
|
(26,486)
|
|
(86,567)
|
|
(53,480)
|
|
Loss from
operations
|
|
(5,924)
|
|
(2,043)
|
|
(27,354)
|
|
(4,266)
|
|
Exchange gain (loss)
on offshore bank accounts
|
|
66
|
|
(3)
|
|
(436)
|
|
65
|
|
Interest
income
|
|
250
|
|
187
|
|
578
|
|
203
|
|
Loss before income
taxes
|
|
(5,608)
|
|
(1,859)
|
|
(27,212)
|
|
(3,998)
|
|
Income taxes
expenses
|
|
(20)
|
|
(28)
|
|
(20)
|
|
(42)
|
|
Loss (gain) from
equity method investments
|
|
--
|
|
(10)
|
|
--
|
|
2
|
|
Net
loss
|
|
(5,628)
|
|
(1,897)
|
|
(27,232)
|
|
(4,038)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
numbers of shares used in calculating loss per ordinary
share
|
|
|
|
|
|
|
|
|
|
--Basic
|
|
95,077,456
|
|
137,360,894
|
|
95,531,036
|
|
116,383,085
|
|
--Diluted
|
|
95,077,456
|
|
137,360,894
|
|
95,531,036
|
|
116,383,085
|
|
|
|
|
|
|
|
|
|
|
Net loss per ordinary
share
|
|
|
|
|
|
|
|
|
|
--Basic
|
|
(0.06)
|
|
(0.01)
|
|
(0.29)
|
|
(0.03)
|
|
--Diluted
|
|
(0.06)
|
|
(0.01)
|
|
(0.29)
|
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
Net loss per ADS (2
ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
--Basic
|
|
(0.12)
|
|
(0.03)
|
|
(0.57)
|
|
(0.07)
|
|
--Diluted
|
|
(0.12)
|
|
(0.03)
|
|
(0.57)
|
|
(0.07)
|
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Reconciliations of GAAP and Non-GAAP Results
|
|
(U.S. dollar in
thousands, except share data and per share data)
|
|
|
|
Three-month Period Ended
|
|
Six-month Period
Ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2016
|
2015
|
|
2016
|
|
Net
revenues
|
|
78,446
|
|
65,647
|
|
166,058
|
|
132,945
|
|
Foreign exchange
impact on net revenues*
|
|
12,367
|
|
174
|
|
24,051
|
|
2,698
|
|
Non-GAAP net
revenues
|
|
90,813
|
|
65,821
|
|
190,109
|
|
135,643
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
29,454
|
|
24,443
|
|
59,213
|
|
49,214
|
|
Foreign exchange
impact on net revenues*
|
|
12,367
|
|
174
|
|
24,051
|
|
2,698
|
|
Non-GAAP gross
profit
|
|
41,821
|
|
24,617
|
|
83,264
|
|
51,912
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(5,924)
|
|
(2,043)
|
|
(27,354)
|
|
(4,266)
|
|
Foreign exchange
impact on net revenues*
|
|
12,367
|
|
174
|
|
24,051
|
|
2,698
|
|
Share-based
compensation expenses
|
|
380
|
|
748
|
|
656
|
|
1,282
|
|
One-time severance
cost
|
|
--
|
|
--
|
|
935
|
|
--
|
|
Non-GAAP income
(loss) from operations
|
|
6,823
|
|
(1,121)
|
|
(1,712)
|
|
(286)
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(5,628)
|
|
(1,897)
|
|
(27,232)
|
|
(4,038)
|
|
Foreign exchange
impact on net revenues*
|
|
12,367
|
|
174
|
|
24,051
|
|
2,698
|
|
Share-based
compensation expenses
|
|
380
|
|
748
|
|
656
|
|
1,282
|
|
One-time severance
cost
|
|
--
|
|
--
|
|
935
|
|
--
|
|
Non-GAAP net
income (loss)
|
|
7,119
|
|
(975)
|
|
(1,590)
|
|
(58)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP weighted
average numbers of shares used in calculating net income (loss) per
ordinary share
|
|
|
|
|
|
|
|
|
|
--Basic
|
|
95,077,456
|
|
137,360,894
|
|
95,531,036
|
|
116,383,085
|
|
--Diluted
|
|
96,743,983
|
|
137,360,894
|
|
95,531,036
|
|
116,383,085
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss) per ordinary share
|
|
|
|
|
|
|
|
|
|
--Basic
|
|
0.07
|
|
(0.01)
|
|
(0.02)
|
|
(0.00)
|
|
--Diluted
|
|
0.07
|
|
(0.01)
|
|
(0.02)
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss) per ADS (2 ordinary shares equal
to 1 ADS)
|
|
|
|
|
|
|
|
|
|
--Basic
|
|
0.15
|
|
(0.01)
|
|
(0.03)
|
|
(0.00)
|
|
--Diluted
|
|
0.15
|
|
(0.01)
|
|
(0.03)
|
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
* The foreign
exchange impact on net revenue includes all net revenues received
in currencies other than USD in the calculation and the exchange
rate in the calculation of the foreign exchange impact on the net
revenue is using the comparable period exchange rate. For example,
the foreign exchange impact on the net revenue of June 2016 will be
calculated by the average of the daily exchange rates in June 2015
times the respective original foreign currency net revenues in June
2016.
|
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
(U.S. dollar in
thousands)
|
|
|
|
Three-month Period Ended
|
|
Six-month Period
Ended
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2015
|
2016
|
|
2015
|
2016
|
|
Net loss
|
|
(5,628)
|
|
(1,897)
|
|
(27,232)
|
|
(4,038)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
578
|
|
361
|
|
1,102
|
|
862
|
|
Share-based
compensation
|
|
380
|
|
748
|
|
656
|
|
1,282
|
|
Inventory
write-down
|
|
383
|
|
760
|
|
750
|
|
2,247
|
|
Exchange (gain) loss
on offshore bank accounts
|
|
(66)
|
|
3
|
|
436
|
|
(65)
|
|
Loss (gain) from
equity method investments
|
|
--
|
|
10
|
|
--
|
|
(2)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
190
|
|
(415)
|
|
51
|
|
(1,279)
|
|
Inventories
|
|
606
|
|
(106)
|
|
(1,260)
|
|
1,655
|
|
Prepaid expenses and
other current assets
|
|
1,330
|
|
236
|
|
175
|
|
753
|
|
Accounts
payable
|
|
2,057
|
|
(5,427)
|
|
7,950
|
|
(14,711)
|
|
Advance from
customers
|
|
(989)
|
|
(855)
|
|
2,750
|
|
1,930
|
|
Accrued expense and
other current liabilities
|
|
(5,887)
|
|
730
|
|
(2,282)
|
|
765
|
|
Long-term rental
deposit
|
|
(111)
|
|
(3)
|
|
(111)
|
|
(3)
|
|
Net cash used in
operating activities
|
|
(7,157)
|
|
(5,855)
|
|
(17,015)
|
|
(10,604)
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(84)
|
|
(62)
|
|
(435)
|
|
(75)
|
|
Maturity of term
deposit
|
|
5,807
|
|
--
|
|
28,950
|
|
--
|
|
Addition of term
deposit
|
|
(9,015)
|
|
--
|
|
(37,708)
|
|
--
|
|
Withdrawal in
restricted cash
|
|
380
|
|
170
|
|
706
|
|
402
|
|
Payment for long term
investment
|
|
--
|
|
--
|
|
(2,097)
|
|
--
|
|
Net cash (used in)
provided by investing activities
|
|
(2,912)
|
|
108
|
|
(10,584)
|
|
327
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
Issuance of ordinary
shares upon private placement
|
|
--
|
|
--
|
|
--
|
|
76,499
|
|
Payment of private
placement offering expenses
|
|
--
|
|
(735)
|
|
--
|
|
(735)
|
|
Proceeds from
exercise of share options
|
|
78
|
|
17
|
|
88
|
|
23
|
|
Repurchase of
ordinary shares
|
|
(3,827)
|
|
(153)
|
|
(6,748)
|
|
(153)
|
|
Net cash (used in)
provided by financing activities
|
|
(3,749)
|
|
(871)
|
|
(6,660)
|
|
75,634
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
30
|
|
(219)
|
|
(377)
|
|
(129)
|
|
Cash and cash
equivalents at beginning of period
|
|
54,510
|
|
102,966
|
|
75,358
|
|
30,901
|
|
Cash and cash
equivalents at end of period
|
|
40,722
|
|
96,129
|
|
40,722
|
|
96,129
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lightinthebox-reports-second-quarter-2016-financial-results-300329975.html
SOURCE LightInTheBox Holding Co., Ltd.