Net Revenues Increase 8.8% Year-over-Year
Conference Call to be Held at 8:00AM
ET on March 16, 2017
BEIJING, March 16, 2017 /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 fourth quarter of 2016.
Fourth Quarter 2016 Highlights
- Net revenues increased 8.8% year-over-year to $95.2 million, above the high end of the
Company's guidance of $93.0
million.
- Black Friday sales increased 10.0% year-over-year.
- LightIntheBox's SaaS ERP software platform was officially
launched; a milestone for the Company's cloud computing
strategy.
- For the first quarter of 2017, the Company expects net revenues
to in the range of $70.0 to $72.0
million, representing an increase of 4.0% to 7.0%
year-over-year.
Mr. Alan Guo, Chairman and CEO of
LightInTheBox, commented, "I am pleased with our performance
during the fourth quarter as revenue exceeded the high-end of our
guidance of $91.0 to $93.0 million.
More importantly, we were able to successfully regain revenue
growth on a year-over-year basis. This was a direct result of
strong sales during Black Friday and the Christmas holiday season
as well as the increased traction that our logistics and
warehousing platform and services are getting. We look forward to
further improving our business and developing new innovative
products and services in 2017."
Fourth Quarter 2016 Financial Results
Net revenues increased 8.8% year-over-year to
$95.2 million from $87.5 million in the same quarter of 2015. Net
revenues from product sales were $84.7
million, compared with $80.9
million in the same quarter of 2015. Net revenues from
service and others were $10.5
million, compared with $6.6
million in the same quarter of 2015. As a percentage of net
revenues, service and others accounted for 11.0% during the fourth
quarter of 2016.
Total orders of product sales were 2.2 million during the fourth
quarter of 2016, compared with 2.3 million in the same quarter of
2015. Total number of product sales customers were 1.7 million,
compared with 1.8 million in the same quarter of 2015.
Product sales in the apparel category were $24.1 million for the fourth quarter of 2016,
compared with $25.2 million in the
same quarter of 2015. As a percentage of product sales, apparel
revenues accounted for 28.5%, compared with 31.1% in the same
quarter of 2015. Product sales from other general merchandise were
$60.6 million for the fourth quarter
of 2016.
Product sales from Europe were
$47.0 million for the fourth quarter
of 2016, compared with $48.0 million
in the same quarter of 2015, representing 55.4% of total product
sales for the fourth quarter of 2016. Product sales from
North America were $22.7 million, compared with $24.4 million in the same quarter of 2015,
representing 26.8% of total product sales for the fourth quarter of
2016, while product sales from other countries were $15.0 million, representing 17.8% of total
product sales for the same quarter.
Total cost of revenues was
$63.4 million in the fourth quarter
of 2016, compared with $56.6 million
in the same period of 2015. Cost for product sales was $53.6 million in the fourth quarter of 2016,
compared with $50.5 million in the
same period of 2015. Cost for service and others was $9.8 million in the fourth quarter of 2016,
compared with $6.1 million in the
same period of 2015.
Gross profit for the fourth quarter of 2016 was
$31.8 million, compared with
$30.8 million in the same period of
2015. Gross margin was 33.4% in the fourth quarter of 2016,
compared with 35.3% in the same quarter of 2015.
Total operating expenses in the fourth quarter of 2016
were $34.2 million, compared with
$34.3 million in the same quarter of
2015.
- Fulfillment expenses in the fourth quarter of 2016 were
$4.6 million, compared with
$5.2 million in the same quarter of
2015. As a percentage of total net revenues, fulfillment expenses
were 4.8%, compared to 6.0% in the same quarter of 2015 and 6.0%
for the third quarter of 2016.
- Selling and marketing expenses in the fourth quarter of
2016 were $19.5 million, compared
with $20.4 million in the same
quarter of 2015. As a percentage of total net revenues, selling and
marketing expenses were 20.5%, compared to 23.4% in the same
quarter of 2015 and 20.6% for the third quarter of 2016.
- General and administrative (G&A) expenses in the
fourth quarter of 2016 were $10.1
million, compared with $8.6
million in the same quarter of 2015. As a percentage of
total net revenues, G&A expenses were 10.6%, compared with 9.9%
in the same quarter of 2015 and 12.2% for the third quarter of
2016. G&A expenses in the fourth quarter of 2016 included
$3.1 million in technology
investments, compared with $3.3
million in the same quarter of 2015.
Loss from operations was $2.4
million in the fourth quarter of 2016, compared with a loss
from operations of $3.5 million in
the same quarter of 2015.
Net loss was $2.4 million
in the fourth quarter of 2016, an improvement when compared to a
net loss of $3.5 million during the
same quarter of 2015.
Net loss per American Depository Share ("ADS") was
$0.04 in the fourth quarter of 2016,
compared with net loss per ADS of $0.07 in the same quarter of 2015. Each ADS
represents two ordinary shares.
Non-GAAP net loss was $0.7
million in the fourth quarter of 2016, compared with
non-GAAP net income of $5.5 million
in the same quarter of 2015.
Non-GAAP net loss per ADS was $0.01 in the fourth quarter of 2016, compared
with non-GAAP net income per ADS of $0.12 in the same quarter of 2015.
For the fourth quarter of 2016, the Company's weighted average
number of ADSs used in computing the loss per ADS was
68,944,227.
As of December 31, 2016, the
Company had cash and cash equivalents and restricted cash of
$91.1 million, compared with
$89.1 million as of September 30, 2016.
Share Repurchase Program
On June 8, 2016, LightInTheBox
announced a $10 million share
repurchase program. As of December 31,
2016, the Company had repurchased a total of $0.8 million of its ADSs.
Business Outlook
For the first quarter of 2017, based on current information and
seasonality, the Company expects net revenues to be between
$70.0 million and $72.0 million,
which represents an increase of 4.0% to 7.0% year-over-year. 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 Thursday, March 16,
2017 to discuss its financial results and operating
performance for the fourth quarter 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:
|
81546308
|
A telephone replay will be available two hours after the
conclusion of the conference call through March 23, 2016. The dial-in details are:
US:
|
+1-646-254-3697
|
Hong Kong:
|
+852-3051-2780
|
International:
|
+61-2-8199-0299
|
Passcode:
|
81546308
|
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 December 31,
|
|
|
2015
|
|
2016
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
30,901
|
|
89,517
|
Restricted
cash
|
|
1,606
|
|
1,559
|
Accounts
receivable
|
|
920
|
|
2,401
|
Inventories,
net
|
|
11,261
|
|
10,587
|
Prepaid expenses and
other current assets
|
|
5,053
|
|
9,674
|
Total current
assets
|
|
49,741
|
|
113,738
|
Property and
equipment, net
|
|
2,209
|
|
1,071
|
Acquired intangible
assets, net
|
|
232
|
|
215
|
Goodwill
|
|
690
|
|
690
|
Long-term rental
deposit
|
|
658
|
|
638
|
Long-term
investment
|
|
1,963
|
|
1,849
|
TOTAL
ASSETS
|
|
55,493
|
|
118,201
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
29,351
|
|
22,523
|
Advance from
customers
|
|
8,282
|
|
8,758
|
Accrued expenses and
other current liabilities
|
|
19,983
|
|
21,084
|
Total current
liabilities
|
|
57,616
|
|
52,365
|
TOTAL
LIABILITIES
|
|
57,616
|
|
52,365
|
|
|
|
|
|
(DEFICIT)
EQUITY
|
|
|
|
|
Ordinary
shares
|
|
7
|
|
10
|
Treasury shares, at
cost
|
|
(19,996)
|
|
(20,806)
|
Additional paid-in
capital
|
|
159,190
|
|
236,949
|
Accumulated
deficit
|
|
(141,015)
|
|
(149,738)
|
Accumulated other
comprehensive loss
|
|
(309)
|
|
(579)
|
TOTAL (DEFICIT)
EQUITY
|
|
(2,123)
|
|
65,836
|
TOTAL LIABILITIES AND
EQUITY
|
|
55,493
|
|
118,201
|
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
|
|
|
December
31,
|
|
December
31,
|
2015
|
|
2016
|
Net
revenues
|
|
|
|
|
Product
sales
|
|
80,908
|
|
84,749
|
Service
and others
|
|
6,575
|
|
10,431
|
Total net
revenues
|
|
87,483
|
|
95,180
|
Cost of
revenues
|
|
|
|
|
Product
sales
|
|
(50,535)
|
|
(53,566)
|
Service
and others
|
|
(6,107)
|
|
(9,795)
|
Total cost of
revenues
|
|
(56,642)
|
|
(63,361)
|
Gross
profit
|
|
30,841
|
|
31,819
|
Operating
expenses
|
|
|
|
|
Fulfillment
|
|
(5,215)
|
|
(4,586)
|
Selling
and marketing
|
|
(20,432)
|
|
(19,526)
|
General
and administrative
|
|
(8,648)
|
|
(10,073)
|
Total operating
expenses
|
|
(34,295)
|
|
(34,185)
|
Loss from
operations
|
|
(3,454)
|
|
(2,366)
|
Exchange loss on
offshore bank accounts
|
|
(84)
|
|
(190)
|
Interest
income
|
|
36
|
|
112
|
Loss before income
taxes
|
|
(3,502)
|
|
(2,444)
|
Income taxes
expenses
|
|
(9)
|
|
(12)
|
(Loss) gain from
equity method investments
|
|
(18)
|
|
38
|
Net
loss
|
|
(3,529)
|
|
(2,418)
|
|
|
|
|
|
Weighted average
numbers of shares used in calculating loss per ordinary
share
|
|
|
|
|
--Basic
|
|
94,326,148
|
|
137,888,454
|
--Diluted
|
|
94,326,148
|
|
137,888,454
|
|
|
|
|
|
Net loss per ordinary
share
|
|
|
|
|
--Basic
|
|
(0.04)
|
|
(0.02)
|
--Diluted
|
|
(0.04)
|
|
(0.02)
|
|
|
|
|
|
Net loss per ADS (2
ordinary shares equal to 1 ADS)
|
|
|
|
|
--Basic
|
|
(0.07)
|
|
(0.04)
|
--Diluted
|
|
(0.07)
|
|
(0.04)
|
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
|
|
|
December
31,
|
|
December
31,
|
2015
|
|
2016
|
Net
revenues
|
|
87,483
|
|
95,180
|
Foreign exchange
impact on net revenues*
|
|
8,433
|
|
1,271
|
Non-GAAP net
revenues
|
|
95,916
|
|
96,451
|
|
|
|
|
|
Gross
profit
|
|
30,841
|
|
31,819
|
Foreign exchange
impact on net revenues*
|
|
8,433
|
|
1,271
|
Non-GAAP gross
profit
|
|
39,274
|
|
33,090
|
|
|
|
|
|
Loss from
operations
|
|
(3,454)
|
|
(2,366)
|
Foreign exchange
impact on net revenues*
|
|
8,433
|
|
1,271
|
Share-based
compensation expenses
|
|
587
|
|
495
|
Non-GAAP income
(loss) from operations
|
|
5,566
|
|
(600)
|
|
|
|
|
|
Net
loss
|
|
(3,529)
|
|
(2,418)
|
Foreign exchange
impact on net revenues*
|
|
8,433
|
|
1,271
|
Share-based
compensation expenses
|
|
587
|
|
495
|
Non-GAAP net income
(loss)
|
|
5,491
|
|
(652)
|
|
|
|
|
|
Non-GAAP weighted
average numbers of shares used in calculating net income (loss) per
ordinary share
|
|
|
|
|
--Basic
|
|
94,326,148
|
|
137,888,454
|
--Diluted
|
|
94,576,518
|
|
137,888,454
|
|
|
|
|
|
Non-GAAP net income
(loss) per ordinary share
|
|
|
|
|
--Basic
|
|
0.06
|
|
(0.00)
|
--Diluted
|
|
0.06
|
|
(0.00)
|
|
|
|
|
|
Non-GAAP net income
(loss) per ADS (2 ordinary shares equal to 1 ADS)
|
|
|
|
|
--Basic
|
|
0.12
|
|
(0.01)
|
--Diluted
|
|
0.12
|
|
(0.01)
|
|
|
|
|
|
* 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 December 2016
will be calculated by the average of the daily exchange rates in
December 2015 times the respective original foreign currency net
revenues in December 2016.
|
LightInTheBox
Holding Co., Ltd.
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
(U.S. dollar in
thousands)
|
|
|
|
|
|
|
|
Three-month Period Ended
|
|
|
December
31,
|
|
December
31,
|
2015
|
2016
|
Net loss
|
|
(3,529)
|
|
(2,418)
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
Depreciation and amortization
|
|
528
|
|
255
|
Share-based compensation
|
|
587
|
|
495
|
Inventory write-down
|
|
533
|
|
474
|
Exchange
loss on offshore bank accounts
|
|
84
|
|
190
|
Loss
(gain) from equity method investments
|
|
18
|
|
(38)
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts
receivable
|
|
(471)
|
|
139
|
Inventories
|
|
(667)
|
|
(2,159)
|
Prepaid
expenses and other current assets
|
|
(301)
|
|
(2,094)
|
Accounts
payable
|
|
3,514
|
|
8,681
|
Advance
from customers
|
|
(2,768)
|
|
(1,960)
|
Accrued
expense and other current liabilities
|
|
(705)
|
|
1,450
|
Long-term rental deposit
|
|
99
|
|
1
|
Net cash (used in)
provided by operating activities
|
|
(3,078)
|
|
3,016
|
Cash flows from
investing activities
|
|
|
|
|
Purchase
of property and equipment
|
|
(149)
|
|
(95)
|
Deposit
in restricted cash
|
|
(329)
|
|
(479)
|
Net cash used in
investing activities
|
|
(478)
|
|
(574)
|
Cash flows from
financing activities
|
|
|
|
|
Payment
of private placement offering expenses
|
|
-
|
|
(153)
|
Repurchase of ordinary shares
|
|
-
|
|
(462)
|
Net cash used in
financing activities
|
|
-
|
|
(615)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(219)
|
|
(378)
|
Cash and cash
equivalents at beginning of period
|
|
34,676
|
|
88,068
|
Cash and cash
equivalents at end of period
|
|
30,901
|
|
89,517
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lightinthebox-reports-fourth-quarter-2016-financial-results-300424741.html
SOURCE LightInTheBox Holding Co., Ltd.