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.
|
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SOURCE LightInTheBox Holding Co., Ltd.