LightInTheBox Reports Third Quarter 2018 Financial Results

Date : 12/14/2018 @ 1:12PM
Source : PR Newswire (US)
Stock : Lightinthebox Holding Co., Ltd. American Depositary Shares, Each Representing 2 Ordinary Shares (LITB)
Quote : 1.45  0.0 (0.00%) @ 9:05PM

LightInTheBox Reports Third Quarter 2018 Financial Results

LIGHTINTHEBOX HOLDING CO., LTD. (NYSE:LITB)
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BEIJING, Dec. 14, 2018 /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 third quarter of 2018.

Third Quarter 2018 Financial Results

Net revenues decreased 42.3% year-over-year to $44.5 million from $77.1 million in the same quarter of 2017. Net revenues from product sales were $42.9 million, compared with $72.4 million in the same quarter of 2017. Net revenues from service and others were $1.6 million, compared with $4.7 million in the same quarter of 2017. As a percentage of net revenues, service and others accounted for 3.6% during the third quarter of 2018.

Total orders of product sales were 0.8 million during the third quarter of 2018, compared with 1.7 million in the same quarter of 2017. Total number of customers for product sales was 0.7 million for the third quarter of 2018, compared with 1.3 million in the same quarter of 2017.

Product sales in the apparel category were $14.4 million for the third quarter of 2018, compared with $25.7 million in the same quarter of 2017. As a percentage of product sales, apparel revenues accounted for 33.6% for the third quarter of 2018, compared with 35.5% in the same quarter of 2017. Product sales from other general merchandise were $28.5 million for the third quarter of 2018.

Product sales in Europe were $21.2 million for the third quarter of 2018, compared with $38.4 million in the same quarter of 2017, representing 49.4% of total product sales for the third quarter of 2018. Product sales in North America were $10.9 million, compared with $17.7 million in the same quarter of 2017, representing 25.4% of total product sales for the third quarter of 2018. Product sales in Gulf Cooperation Council ("GCC") countries were $2.6 million for the third quarter of 2018, compared with $0.3 million in the same quarter of 2017, representing 6.1% of total product sales for the third quarter of 2018, while product sales in other countries were $8.2 million, representing 19.1% of total product sales for the same quarter.

Total cost of revenues was $37.8 million in the third quarter of 2018, compared with $50.5 million in the same period of 2017. Cost for product sales was $36.4 million in the third quarter of 2018, compared with $46.0 million in the same period of 2017. Cost for service and others was $1.4 million in the third quarter of 2018, compared with $4.5 million in the same period of 2017.

Gross profit for the third quarter of 2018 was $6.7 million, compared with $26.6 million in the same period of 2017. Gross margin was 15.1% in the third quarter of 2018, compared with 34.5% in the same quarter of 2017.

Total operating expenses in the third quarter of 2018 were $24.8 million, compared with $28.6 million in the same quarter of 2017.

  • Fulfillment expenses in the third quarter of 2018 were $3.4 million, compared with $4.2 million in the same quarter of 2017. As a percentage of total net revenues, fulfillment expenses were 7.6% for the third quarter of 2018, compared to 5.4% in the same quarter of 2017 and 6.7% in the second quarter of 2018.
  • Selling and marketing expenses in the third quarter of 2018 were $11.3 million, compared with $17.8 million in the same quarter of 2017. As a percentage of total net revenues, selling and marketing expenses were 25.4% for the third quarter of 2018, compared to 23.1% in the same quarter of 2017 and 20.4% in the second quarter of 2018.
  • General and administrative (G&A) expenses in the third quarter of 2018 were $10.1 million, compared with $6.6 million in the same quarter of 2017. As a percentage of total net revenues, G&A expenses were 22.7% for the third quarter of 2018, compared with 8.6% in the same quarter of 2017 and 15.7% in the second quarter of 2018. G&A expenses in the third quarter of 2018 included $2.5 million in technology investments, compared with $2.5 million in the same quarter of 2017.

Loss from operations was $18.1 million in the third quarter of 2018, compared with a loss from operations of $2.0 million in the same quarter of 2017.

Net loss was $17.8 million in the third quarter of 2018, compared with a net loss of $1.8 million in the same quarter of 2017.

Net loss per American Depository Share ("ADS") was $0.27 in the third quarter of 2018, compared with net loss per ADS of $0.03 in the same quarter of 2017. Each ADS represents two ordinary shares.

For the third quarter of 2018, the Company's weighted average number of ADSs used in computing the loss per ADS was 66,639,467.

As of September 30, 2018, the Company had cash and cash equivalents and restricted cash of $38.3 million, compared with $41.7 million as of June 30, 2018.

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 23 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

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 September 30, 



2017


2018

ASSETS





Current Assets





Cash and cash equivalents


68,441


37,506

Restricted cash


1,573


825

Accounts receivable


3,433


1,557

Inventories, net


11,841


5,267

Prepaid expenses and other current assets


15,696


9,843

Total current assets


100,984


54,998

Property and equipment, net


920


780

Acquired intangible assets, net


210


210

Goodwill


690


690

Long-term rental deposit


671


662

Long-term investment


5,262


5,171

TOTAL ASSETS


108,737


62,511






LIABILITIES





Current Liabilities





Accounts payable


22,430


14,907

Advance from customers


10,110


10,186

Accrued expenses and other current liabilities


20,727


19,299

Total current liabilities


53,267


44,392

TOTAL LIABILITIES


53,267


44,392






EQUITY





Ordinary shares


11


11

Treasury shares, at cost


(23,907)


(27,261)

Additional paid-in capital


238,851


240,415

Accumulated deficit


(159,286)


(194,491)

Accumulated other comprehensive loss


(199)


(555)

TOTAL EQUITY 


55,470


18,119

TOTAL LIABILITIES AND EQUITY


108,737


62,511






 

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



September 30,


September 30,

2017


2018

Net revenues





Product sales


72,383


42,910

Services and others


4,694


1,593

Total net revenues


77,077


44,503

Cost of revenues





Product sales


(45,946)


(36,336)

Services and others


(4,513)


(1,442)

Total cost of revenues


(50,459)


(37,778)

Gross profit


26,618


6,725

Operating expenses





Fulfillment


(4,168)


(3,400)

Selling and marketing


(17,839)


(11,316)

General and administrative


(6,613)


(10,087)

Total operating expenses


(28,620)


(24,803)

Loss from operations


(2,002)


(18,078)

Exchange (loss) gain on offshore bank accounts


(9)


20

Interest income


176


205

Loss before income taxes


(1,835)


(17,853)

Income taxes expenses


(9)


(3)

Gain from equity method investments


35


46

Net loss 


(1,809)


(17,810)






Weighted average numbers of shares used in calculating loss per
ordinary share





--Basic


137,634,221


133,278,934

--Diluted


137,634,221


133,278,934






Net loss per ordinary share





--Basic


(0.01)


(0.13)

--Diluted


(0.01)


(0.13)






Net loss per ADS (2 ordinary shares equal to 1 ADS)





--Basic


(0.03)


(0.27)

--Diluted


(0.03)


(0.27)






 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

(U.S. dollar in thousands)








Three-month Period Ended



September 30,


September 30,

2017

2018

Net loss


(1,809)


(17,810)

Adjustments to reconcile net loss to net cash used in operating activities





Depreciation and amortization


174


133

Share-based compensation


441


532

Bad debt expense 


-


533

Inventory write-down


701


666

Exchange loss (gain) on offshore bank accounts


9


(20)

Gain from equity method investments


(35)


(46)

Changes in operating assets and liabilities





Accounts receivable


(187)


718

Inventories


(2,314)


5,940

Prepaid expenses and other current assets


(2,247)


4,123

Accounts payable


(2,284)


2,402

Advance from customers


(83)


173

Accrued expense and other current liabilities


(785)


(480)

Long-term rental deposit


(15)


(3)

Net cash used in operating activities


(8,434)


(3,139)

Cash flows from investing activities





Purchase of property and equipment


(67)


(16)

Net cash used in investing activities[1]


(67)


(16)

Cash flows from financing activities





Repurchase of ordinary shares


(451)


-

Net cash used in financing activities


(451)


-

Effect of exchange rate changes on cash and cash equivalents


102


(177)

Cash, cash equivalents and restricted cash beginning of period


79,917


41,663

Cash, cash equivalents and restricted cash end of period


71,067


38,331






Supplemental Cash Flow Data 





Reconciliation of cash and cash equivalents to consolidated statements of
cash flows:





Cash and cash equivalents as presented in consolidated balance sheets


69,630


37,506

Restricted cash and restricted cash equivalents as presented in
consolidated balance sheets


1,437


825

Cash, cash equivalents and restricted cash as presented in consolidated
statements of cash flows


71,067


38,331
















[1] Note: As a result of new accounting standard adopted on January 1, 2018, the consolidated statements of cash
flows were retrospectively adjusted to include restricted cash in cash and cash equivalents when reconciling the
beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The impact of the
retrospective reclassification on cash flows of investing activities for the three-months ended Sep 30, 2017 was a
decrease of $41 thousand. The impact of cash flows of investing activities for the three-months ended Sep 30, 2018
was a decrease of $51 thousand. 

 

Cision View original content:http://www.prnewswire.com/news-releases/lightinthebox-reports-third-quarter-2018-financial-results-300765696.html

SOURCE LightInTheBox Holding Co., Ltd.

Copyright 2018 PR Newswire

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