BEIJING, June 19, 2020 /PRNewswire/ -- LightInTheBox
Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the
"Company"), a cross-border e-commerce platform that delivers
products directly to consumers around the world, today announced
its unaudited financial results for the first quarter ended
March 31, 2020.
First Quarter 2020 Highlights
- Total revenues increased 1.3% year-over-year to $51.5 million.
- Gross margin expanded further to 46.4% from 40.4% last quarter
and 34.8% in the same quarter of 2019.
- Third consecutive quarter of GAAP profitability despite impact
from COVID-19 pandemic with net income of $0.7 million, compared with a net loss of
$14.1 million in the same quarter of
2019.
- Adjusted EBITDA improved significantly, increasing to earnings
of $1.4 million, compared with a loss
of $7.9 million in the same quarter
of 2019.
Mr. Jian He, Chief Executive Officer of LightInTheBox,
commented, "We responded quickly and decisively to the outbreak of
COVID-19 by implementing a number of strategic initiatives to
provide us with the flexibility needed to adapt to a challenging
global economic environment. Seasonally, the first quarter is
generally the slowest quarter of the year, so the COVID-19 induced
economic disruption made the operating environment even more
difficult. We took advantage of the temporary slowdown to deepen
relationships with high-quality suppliers, optimize our product
portfolio and category mix, and improve order fulfillment speed. We
also prioritized the health and safety of our employees to ensure
business continuity and adequately prepare for the resumption of
normal operations while demonstrating our commitment to corporate
social responsibility by including free medical face masks in
numerous orders shipped to markets that were being impacted heavily
by the pandemic. Despite the challenging operational environment,
our financial results this quarter are a reflection of our ability
to adapt and is highlighted by our third and consecutive quarter of
GAAP profitability which I believe demonstrates the long-term
growth trajectory we are on. We remain focused on executing our
strategy and are very encouraged by our improvements to date. We
are already starting to see certain product categories regain
strong growth momentum towards the end of the second quarter as
global markets begin re-opening and expect that both our operating
and financial results will continue to improve going forward."
First Quarter 2020 Financial Results
Total revenues increased by 1.3% year-over-year to
$51.5 million from $50.9 million in the same quarter of 2019.
Revenues generated from product sales were $49.9 million, compared with $49.8 million in the same quarter of 2019.
Revenues from service and others were $1.6
million, compared with $1.1
million in the same quarter of 2019.
The number of orders for product sales was 1.0 million in the
first quarter of 2020, compared with 1.2 million in the same
quarter of 2019. The number of customers for product sales was 0.8
million for the first quarter of 2020, compared with 0.6 million in
the same quarter of 2019.
Revenues generated from product sales in the apparel category
were $13.4 million in the first
quarter of 2020, compared with $14.4
million in the same quarter of 2019. As a percentage of
product sales, apparel revenues accounted for 26.8% in the first
quarter of 2020, compared with 28.9% in the same quarter of 2019.
Revenues generated from product sales from other general
merchandise were $36.5 million in the
first quarter of 2020.
Total cost of revenues was $27.6
million in the first quarter of 2020, compared with
$33.2 million in the same quarter of
2019. Cost for product sales was $26.9
million in the first quarter of 2020, compared with
$32.8 million in the same quarter of
2019. Cost for service and others was $0.7
million in the first quarter of 2020, compared with
$0.4 million in the same quarter of
2019.
Gross profit in the first quarter of 2020 was
$23.9 million, compared with
$17.7 million in the same quarter of
2019. Gross margin was 46.4% in the first quarter of 2020, compared
with 34.8% in the same quarter of 2019. The increase in gross
margin was a result of the Company's continuous efforts to drive
revenues from categories with higher margins.
Total operating expenses in the first quarter of 2020
were $27.1 million, compared with
$26.5 million in the same quarter of
2019.
- Fulfillment expenses in the first quarter of 2020 were
$5.0 million, compared with
$5.2 million in the same quarter of
2019. As a percentage of total revenues, fulfillment expenses were
9.8% in the first quarter of 2020, compared with 10.2% in the same
quarter of 2019 and 10.7% in the fourth quarter of 2019.
- Selling and marketing expenses in the first quarter of
2020 were $14.8 million, compared
with $9.3 million in the same quarter
of 2019. As a percentage of total revenues, selling and marketing
expenses were 28.7% for the first quarter of 2020, compared with
18.3% in the same quarter of 2019 and 23.9% in the fourth quarter
of 2019.
- G&A expenses in the first quarter of 2020 were
$7.3 million, compared with
$12.0 million in the same quarter of
2019. As a percentage of total revenues, G&A expenses were
14.1% for the first quarter of 2020, compared with 23.6% in the
same quarter of 2019 and 11.8% in the fourth quarter of 2019.
Included in G&A expenses, R&D expenses in the first quarter
of 2020 were $3.5 million, compared
with $4.2 million in the same quarter
of 2019.
Net income was $0.7 million
in the first quarter of 2020, compared with a net loss of
$14.1 million in the same quarter of
2019.
Net income per American Depository Share ("ADS") was
$0.01 in the first quarter of 2020,
compared with net loss per ADS of $0.21 in the same quarter of 2019. Each ADS
represents two ordinary shares. The diluted net income per ADS was
$0.01 in the first quarter of 2020,
compared with the diluted net loss per ADS of $0.21 in the same quarter of 2019.
In the first quarter of 2020, the Company's basic weighted
average number of ADSs used in computing the net income per ADS was
102,240,901 and the diluted weighted average number of ADSs was
112,122,548.
Adjusted EBITDA, which represents gain / (loss)
from operations before share-based compensation expense, change in
fair value of convertible promissory notes, interest income,
interest expense, income tax expense and depreciation and
amortization expenses, was earnings of $1.4
million in the first quarter of 2020, compared with a loss
of $7.9 million in the same
quarter of 2019.
As of March 31, 2020, the Company had cash and cash
equivalents and restricted cash of $35.6
million, compared with $40.4
million as of December 31, 2019.
Business Outlook
For the second quarter of 2020, based on current information
available to the Company and business seasonality, the Company
expects net revenues to be between $105
million and $120 million.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with U.S. GAAP, we use the
following non-GAAP financial measures to help evaluate our
operating performance:
"Adjusted EBITDA" represents gain /(loss) from operations before
share-based compensation expense, change in fair value of
convertible promissory notes, interest income, interest expense,
income tax expense and depreciation and amortization expenses.
Although other companies may calculate adjusted EBITDA differently
or not present it at all, we believe that the adjusted EBITDA helps
to identify underlying trends in our operating results, enhancing
their understanding of the past performance and future
prospects.
Conference Call
The Company will hold a conference call to discuss the results
at 7:00 a.m. Eastern Time on June 19, 2020 (7:00
p.m. Beijing Time on the same day).
Preregistration Information
Participants can register for the conference call by navigating
to
http://apac.directeventreg.com/registration/event/8893322. Once
preregistration has been complete, participants will receive
dial-in numbers, an event passcode, and a unique registrant ID.
To join the conference, simply dial the number in the calendar
invite you receive after preregistering, enter the event passcode
followed by your unique registrant ID, and you will be joined to
the conference instantly.
A telephone replay will be available two hours after the
conclusion of the conference call through June 26, 2020. The
dial-in details are:
US/Canada:
|
+1-855-452-5696
|
Hong Kong:
|
800-963-117
|
International:
|
+61-2-8199-0299
|
Passcode:
|
8893322
|
Additionally, a live and archived webcast of the conference call
will be available on the Company's Investor Relations website at
http://ir.lightinthebox.com.
About LightInTheBox Holding Co., Ltd.
LightInTheBox is a cross-border e-commerce platform 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, www.ezbuy.com and
other websites and mobile applications, which are available in 23
major languages and cover more than 140 countries.
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
Tel: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
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 fourth 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. dollars in
thousands, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
As of March 31,
|
|
|
|
2019
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
37,736
|
|
33,902
|
|
Restricted
cash
|
|
2,709
|
|
1,684
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
1,356
|
|
1,411
|
|
Amounts due from
related parties
|
|
4,600
|
|
2,802
|
|
Inventories
|
|
7,357
|
|
7,316
|
|
Prepaid expenses and
other current assets
|
|
3,619
|
|
4,121
|
|
Total current
assets
|
|
57,377
|
|
51,236
|
|
Property and
equipment, net
|
|
3,502
|
|
3,245
|
|
Intangible assets,
net
|
|
8,516
|
|
8,350
|
|
Goodwill
|
|
27,922
|
|
27,465
|
|
Operating lease
right-of-use assets
|
|
12,233
|
|
13,504
|
|
Long-term rental
deposits
|
|
778
|
|
723
|
|
Long-term
investments
|
|
2,873
|
|
6,634
|
|
TOTAL
ASSETS
|
|
113,201
|
|
111,157
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
17,643
|
|
11,957
|
|
Amounts due to
related parties
|
|
186
|
|
167
|
|
Advance from
customers
|
|
21,731
|
|
28,921
|
|
Operating lease
liabilities
|
|
3,470
|
|
4,642
|
|
Accrued expenses and
other current liabilities
|
|
28,642
|
|
24,273
|
|
Total current
liabilities
|
|
71,672
|
|
69,960
|
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
8,801
|
|
9,173
|
|
Long-term
payable
|
|
847
|
|
726
|
|
TOTAL
LIABILITIES
|
|
81,320
|
|
79,859
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Ordinary
shares
|
|
14
|
|
17
|
|
Additional paid-in
capital
|
|
262,888
|
|
278,804
|
|
Forward
contracts
|
|
15,769
|
|
—
|
|
Treasury shares, at
cost
|
|
(27,512)
|
|
(28,268)
|
|
Accumulated other
comprehensive loss
|
|
(1,444)
|
|
(2,165)
|
|
Accumulated
deficit
|
|
(217,888)
|
|
(217,267)
|
|
Non-controlling
interests
|
|
54
|
|
177
|
|
TOTAL
EQUITY
|
|
31,881
|
|
31,298
|
|
TOTAL LIABILITIES AND
EQUITY
|
|
113,201
|
|
111,157
|
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
(U.S. dollars in
thousands, except per share data, or otherwise
noted)
|
|
|
|
|
|
Three-month Period Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2019
|
|
2020
|
|
Revenues
|
|
|
|
|
|
Product
sales
|
|
49,789
|
|
49,936
|
|
Services and
others
|
|
1,084
|
|
1,582
|
|
Total
revenues
|
|
50,873
|
|
51,518
|
|
Cost of
revenues
|
|
|
|
|
|
Product
sales
|
|
(32,785)
|
|
(26,905)
|
|
Services and
others
|
|
(357)
|
|
(712)
|
|
Total Cost of
revenues
|
|
(33,142)
|
|
(27,617)
|
|
Gross
profit
|
|
17,731
|
|
23,901
|
|
Operating
expenses
|
|
|
|
|
|
Fulfillment
|
|
(5,265)
|
|
(5,049)
|
|
Selling and
marketing
|
|
(9,269)
|
|
(14,780)
|
|
General and
administrative
|
|
(11,984)
|
|
(7,268)
|
|
Other operating
income
|
|
—
|
|
13
|
|
Total operating
expenses
|
|
(26,518)
|
|
(27,084)
|
|
Loss from
operations
|
|
(8,787)
|
|
(3,183)
|
|
Interest
income
|
|
123
|
|
47
|
|
Interest
expense
|
|
(20)
|
|
(30)
|
|
Change in fair value
of convertible promissory notes
|
|
(5,337)
|
|
—
|
|
Other
Income,net
|
|
—
|
|
3,913
|
|
Total other (loss) /
income
|
|
(5,234)
|
|
3,930
|
|
(Loss) / Income
before income taxes and gain from an equity method
investment
|
|
(14,021)
|
|
747
|
|
Income tax
expense
|
|
(216)
|
|
(3)
|
|
Gain from an equity
method investment
|
|
127
|
|
—
|
|
Net (loss) /
income
|
|
(14,110)
|
|
744
|
|
Less: Net income
attributable to non-controlling interests
|
|
32
|
|
123
|
|
Net (loss) /income
attributable to LightInTheBox Holding Co., Ltd.
|
|
(14,142)
|
|
621
|
|
|
|
|
|
|
|
Weighted average
numbers of shares used in calculating (loss) / income per ordinary
share
|
|
|
|
|
|
—Basic
|
|
134,458,170
|
|
204,481,801
|
|
—Diluted
|
|
134,458,170
|
|
224,245,096
|
|
|
|
|
|
|
|
Net (loss) / income
per ordinary share
|
|
|
|
|
|
—Basic
|
|
(0.11)
|
|
0.00
|
|
—Diluted
|
|
(0.11)
|
|
0.00
|
|
|
|
|
|
|
|
Net (loss) / income
per ADS (2 ordinary shares equal to 1 ADS)
|
|
|
|
|
|
—Basic
|
|
(0.21)
|
|
0.01
|
|
—Diluted
|
|
(0.21)
|
|
0.01
|
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Reconciliations of GAAP and Non-GAAP Results
|
|
(U.S. dollars in
thousands, or otherwise noted)
|
|
|
|
|
|
|
|
Three-month Period Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2019
|
|
2020
|
|
|
|
|
|
|
|
Net (loss) /
income
|
|
(14,110)
|
|
744
|
|
|
|
|
|
|
|
Less: Interest
income
|
|
123
|
|
47
|
|
Interest
expense
|
|
(20)
|
|
(30)
|
|
Income tax
expense
|
|
(216)
|
|
(3)
|
|
Depreciation and
amortization
|
|
(628)
|
|
(551)
|
|
EBITDA
|
|
(13,369)
|
|
1,281
|
|
|
|
|
|
|
|
Less: Share-based
compensation
|
|
(157)
|
|
(149)
|
|
Change in fair value
of convertible promissory notes
|
|
(5,337)
|
|
—
|
|
Adjusted
EBITDA*
|
|
(7,875)
|
|
1,430
|
|
|
|
|
|
* Adjusted EBITDA
represents gain /(loss) from operations before share-based
compensation expense, change in fair value of
convertible promissory notes, interest income, interest expense,
income tax expense and depreciation and amortization
expenses.
|
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SOURCE LightInTheBox Holding Co., Ltd.