BEIJING, Dec. 13, 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 third quarter of 2017.
Financial and Operational Highlights
- Net revenues increased 19.8% year-over-year to $77.1 million, at the higher end of the Company's
guidance
- Sales made through mobile devices increased 53.7%
year-over-year. Sales made through the Company's mobile app
increased 119.8% year-over-year
- Fulfillment expenses as a percentage of revenues decreased to
5.4% from 6.0% during the same period last year
- General and Administrative expenses as a percentage of revenues
decreased to 8.6% from 12.2% during the same period last year
- Net loss was $1.8 million
compared to $2.3 million during the
same period last year
Mr. Alan Guo, Chairman and CEO of
LightInTheBox, commented, "We are pleased with our financial and
operational results during the quarter which continue to be driven
by our strategy to strengthen supply chain management, improve
customer satisfaction and enhance the mobile user experience on our
platforms. We saw strong growth momentum in strategic emerging
markets including India,
Brazil and the Gulf Cooperation
Council with more localized product offerings as well as logistics
and payment solutions."
Third Quarter 2017 Financial Results
Net revenues increased 19.8% year-over-year to
$77.1 million from $64.4 million in the same quarter of 2016. Net
revenues from product sales were $72.4
million, compared with $56.0
million in the same quarter of 2016. Net revenues from
service and others were $4.7 million,
compared with $8.4 million in the
same quarter of 2016. As a percentage of net revenues, service and
others accounted for 6.1% during the third quarter of 2017.
Total orders of product sales were 1.7 million for the third
quarter of 2017, compared with 1.4 million in the same quarter of
2016. Total number of product sales customers was 1.3 million for
the third quarter of 2017, compared with 1.1 million in the same
quarter of 2016.
Product sales in the apparel category were $25.7 million for the third quarter of 2017,
compared with $19.1 million in the
same quarter of 2016. As a percentage of product sales, apparel
revenues accounted for 35.5% for the third quarter of 2017,
compared with 34.1% in the same quarter of 2016. Product sales from
other general merchandise were $46.7
million for the third quarter of 2017.
Product sales from Europe were
$38.4 million for the third quarter
of 2017, compared with $28.8 million
in the same quarter of 2016, representing 53.0% of total product
sales for the third quarter of 2017. Product sales from
North America were $17.7 million, compared with $16.5 million in the same quarter of 2016,
representing 24.5% of total product sales for the third quarter of
2017, while product sales from other countries were $16.3 million, representing 22.5% of total
product sales for the same quarter.
Total cost of revenues was $50.5
million in the third quarter of 2017, compared with
$41.8 million in the same period of
2016. Cost for product sales was $46.0
million in the third quarter of 2017, compared with
$34.0 million in the same period of
2016. Cost for service and others was $4.5
million in the third quarter of 2017, compared with
$7.8 million in the same period of
2016.
Gross profit for the third quarter of 2017 was
$26.6 million, compared with
$22.5 million in the same period of
2016. Gross margin was 34.5% in the third quarter of 2017, compared
with 35.0% in the same quarter of 2016.
Total operating expenses in the third quarter of 2017
were $28.6 million, compared with
$25.0 million in the same quarter of
2016.
- Fulfillment expenses in the third quarter of 2017 were
$4.2 million, compared with
$3.9 million in the same quarter of
2016. As a percentage of total net revenues, fulfillment expenses
were 5.4% for the third quarter of 2017, compared to 6.0% in the
same quarter of 2016 and 5.5% in the second quarter of 2017.
- Selling and marketing expenses in the third quarter of
2017 were $17.8 million, compared
with $13.3 million in the same
quarter of 2016. As a percentage of total net revenues, selling and
marketing expenses were 23.1% for the third quarter of 2017,
compared to 20.6% in the same quarter of 2016 and 23.1% in the
second quarter of 2017.
- General and administrative (G&A) expenses in the
third quarter of 2017 were $6.6
million, compared with $7.8
million in the same quarter of 2016. As a percentage of
total net revenues, G&A expenses were 8.6% for the third
quarter of 2017, compared with 12.2% in the same quarter of 2016
and 9.1% in the second quarter of 2017. G&A expenses in the
third quarter of 2017 included $2.5
million in technology investments, compared with
$3.1 million in the same quarter of
2016.
Loss from operations was $2.0
million in the third quarter of 2017, compared with a loss
from operations of $2.5 million in
the same quarter of 2016.
Net loss was $1.8 million
in the third quarter of 2017, compared with a net loss of
$2.3 million in the same quarter of
2016.
Net loss per American Depository Share ("ADS") was
$0.03 in the third quarter of 2017,
compared with net loss per ADS of $0.03 in the same quarter of 2016. Each ADS
represents two ordinary shares.
Non-GAAP net loss was $2.9
million in the third quarter of 2017, compared with non-GAAP
net loss of $1.1 million in the same
quarter of 2016.
Non-GAAP net loss per ADS was $0.04 in the third quarter of 2017, compared with
non-GAAP net loss per ADS of $0.02 in
the same quarter of 2016.
For the third quarter of 2017, the Company's weighted average
number of ADSs used in computing the loss per ADS was
68,817,110.
As of September 30, 2017, the
Company had cash and cash equivalents and restricted cash of
$71.1 million, compared with
$79.9 million as of June 30, 2017.
Share Repurchase Program Extension
On June 15, 2017, the Company
announced the extension of its existing share repurchase program
for an additional twelve month period from June 15, 2017 through June
14, 2018 to continue to repurchase up to the remaining
balance of the $10 million of its
American Depositary Shares ("ADSs"). As of September 30,
2017, the Company had repurchased a total of $1.8
million of its ADSs.
Business Outlook
For the fourth quarter of 2017, based on current information
available to the Company and business seasonality, the Company
expects net revenues to be between $97 million and
$100 million, which represents an
increase of approximately 2% to
5% 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 Wednesday, December 13,
2017 to discuss its financial results and operating
performance for the third quarter 2017. 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:
|
6772059
|
A telephone replay will be available two hours after the
conclusion of the conference call through December 20, 2017. The dial-in details are:
US:
|
+1-646-254-3697
|
Hong Kong:
|
+852-3051-2780
|
International:
|
+61-2-8199-0299
|
Passcode:
|
6772059
|
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 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
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
and share-based compensation. 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, 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 September 30,
|
|
|
2016
|
|
2017
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
89,517
|
|
69,630
|
Restricted
cash
|
|
1,559
|
|
1,437
|
Accounts
receivable
|
|
2,401
|
|
2,281
|
Inventories,
net
|
|
10,587
|
|
11,343
|
Prepaid expenses and
other current assets
|
|
9,674
|
|
15,366
|
Total current
assets
|
|
113,738
|
|
100,057
|
Property and
equipment, net
|
|
1,071
|
|
840
|
Acquired intangible
assets, net
|
|
215
|
|
202
|
Goodwill
|
|
690
|
|
690
|
Long-term rental
deposit
|
|
638
|
|
675
|
Long-term
investment
|
|
1,849
|
|
5,067
|
TOTAL
ASSETS
|
|
118,201
|
|
107,531
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
22,523
|
|
14,920
|
Advance from
customers
|
|
8,758
|
|
12,674
|
Accrued expenses and
other current liabilities
|
|
21,084
|
|
19,407
|
Total current
liabilities
|
|
52,365
|
|
47,001
|
TOTAL
LIABILITIES
|
|
52,365
|
|
47,001
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Ordinary
shares
|
|
10
|
|
11
|
Treasury shares, at
cost
|
|
(20,806)
|
|
(21,837)
|
Additional paid-in
capital
|
|
236,949
|
|
238,439
|
Accumulated
deficit
|
|
(149,738)
|
|
(155,747)
|
Accumulated other
comprehensive loss
|
|
(579)
|
|
(336)
|
TOTAL
EQUITY
|
|
65,836
|
|
60,530
|
TOTAL LIABILITIES AND
EQUITY
|
|
118,201
|
|
107,531
|
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,
|
2016
|
|
2017
|
Net
revenues
|
|
|
|
|
Product
sales
|
|
56,010
|
|
72,383
|
Services and
others
|
|
8,352
|
|
4,694
|
Total net
revenues
|
|
64,362
|
|
77,077
|
Cost of
revenues
|
|
|
|
|
Product
sales
|
|
(34,027)
|
|
(45,946)
|
Services and
others
|
|
(7,818)
|
|
(4,513)
|
Total cost of
revenues
|
|
(41,845)
|
|
(50,459)
|
Gross
profit
|
|
22,517
|
|
26,618
|
Operating
expenses
|
|
|
|
|
Fulfillment
|
|
(3,871)
|
|
(4,168)
|
Selling and
marketing
|
|
(13,278)
|
|
(17,839)
|
General and
administrative
|
|
(7,820)
|
|
(6,613)
|
Total operating
expenses
|
|
(24,969)
|
|
(28,620)
|
Loss from
operations
|
|
(2,452)
|
|
(2,002)
|
Exchange gain (loss)
on offshore bank accounts
|
|
5
|
|
(9)
|
Interest
income
|
|
203
|
|
176
|
Loss before income
taxes
|
|
(2,244)
|
|
(1,835)
|
Income taxes
expenses
|
|
-
|
|
(9)
|
(Loss) Gain from
equity method investments
|
|
(23)
|
|
35
|
Net
loss
|
|
(2,267)
|
|
(1,809)
|
|
|
|
|
|
Weighted average
numbers of shares used in
calculating loss per ordinary share
|
|
|
|
|
-Basic
|
|
137,878,122
|
|
137,634,221
|
-Diluted
|
|
137,878,122
|
|
137,634,221
|
|
|
|
|
|
Net loss per ordinary
share
|
|
|
|
|
-Basic
|
|
(0.02)
|
|
(0.01)
|
-Diluted
|
|
(0.02)
|
|
(0.01)
|
|
|
|
|
|
Net loss per ADS (2
ordinary shares equal to 1 ADS)
|
|
|
|
|
-Basic
|
|
(0.03)
|
|
(0.03)
|
-Diluted
|
|
(0.03)
|
|
(0.03)
|
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
|
|
|
September
30,
|
|
September
30,
|
2016
|
|
2017
|
Net
revenues
|
|
64,362
|
|
77,077
|
Foreign exchange
impact on net revenues*
|
|
594
|
|
(1,549)
|
Non-GAAP net
revenues
|
|
64,956
|
|
75,528
|
|
|
|
|
|
Gross
profit
|
|
22,517
|
|
26,618
|
Foreign exchange
impact on net revenues*
|
|
594
|
|
(1,549)
|
Non-GAAP gross
profit
|
|
23,111
|
|
25,069
|
|
|
|
|
|
Loss from
operations
|
|
(2,452)
|
|
(2,002)
|
Foreign exchange
impact on net revenues*
|
|
594
|
|
(1,549)
|
Share-based
compensation expenses
|
|
540
|
|
441
|
Non-GAAP income
(loss) from operations
|
|
(1,318)
|
|
(3,110)
|
|
|
|
|
|
Net
loss
|
|
(2,267)
|
|
(1,809)
|
Foreign exchange
impact on net revenues*
|
|
594
|
|
(1,549)
|
Share-based
compensation expenses
|
|
540
|
|
441
|
Non-GAAP net income
(loss)
|
|
(1,133)
|
|
(2,917)
|
|
|
|
|
|
Non-GAAP weighted
average numbers of shares
used in calculating net income (loss) per ordinary
share
|
|
|
|
|
-Basic
|
|
137,878,122
|
|
137,634,221
|
-Diluted
|
|
137,878,122
|
|
137,634,221
|
|
|
|
|
|
Non-GAAP net income
(loss) per ordinary share
|
|
|
|
|
-Basic
|
|
(0.01)
|
|
(0.02)
|
-Diluted
|
|
(0.01)
|
|
(0.02)
|
|
|
|
|
|
Non-GAAP net income
(loss) per ADS (2 ordinary shares equal to 1 ADS)
|
|
|
|
|
-Basic
|
|
(0.02)
|
|
(0.04)
|
-Diluted
|
|
(0.02)
|
|
(0.04)
|
|
|
|
|
|
* 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
September 2017 will be calculated
by the average of the daily exchange rates in September 2016 times
the respective original
foreign currency net revenues in September 2017.
|
LightInTheBox
Holding Co., Ltd.
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
(U.S. dollar in
thousands)
|
|
|
|
|
|
|
|
Three-month Period Ended
|
|
|
September
30,
|
|
September
30,
|
2016
|
2017
|
Net loss
|
|
(2,267)
|
|
(1,809)
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
Depreciation and
amortization
|
|
277
|
|
174
|
Share-based
compensation
|
|
540
|
|
441
|
Inventory
write-down
|
|
565
|
|
701
|
Exchange gain (loss)
on offshore bank accounts
|
|
(5)
|
|
9
|
Loss(Gain) from
equity method investments
|
|
23
|
|
(35)
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts
receivable
|
|
(426)
|
|
(187)
|
Inventories
|
|
(2,133)
|
|
(2,314)
|
Prepaid expenses and
other current assets
|
|
(3,317)
|
|
(2,247)
|
Accounts
payable
|
|
(790)
|
|
(2,284)
|
Advance from
customers
|
|
506
|
|
(83)
|
Accrued expense and
other current liabilities
|
|
(597)
|
|
(785)
|
Long-term rental
deposit
|
|
-
|
|
(15)
|
Net cash used in
operating activities
|
|
(7,624)
|
|
(8,434)
|
Cash flows from
investing activities
|
|
|
|
|
Purchase of property
and equipment
|
|
(157)
|
|
(67)
|
Withdraw in
restricted cash
|
|
123
|
|
41
|
Net cash provided by
investing activities
|
|
(34)
|
|
(26)
|
Cash flows from
financing activities
|
|
|
|
|
Payment of private
placement offering expenses
|
|
(187)
|
|
-
|
Repurchase of
ordinary shares
|
|
(195)
|
|
(451)
|
Net cash used in by
financing activities
|
|
(382)
|
|
(451)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(21)
|
|
102
|
Cash and cash
equivalents at beginning of period
|
|
96,129
|
|
78,439
|
Cash and cash
equivalents at end of period
|
|
88,068
|
|
69,630
|
View original
content:http://www.prnewswire.com/news-releases/lightinthebox-reports-third-quarter-2017-financial-results-300570618.html
SOURCE LightInTheBox Holding Co., Ltd.