- Revenue increased by 51.4% to $50.6 million for the quarter
(34% organic growth)
- Net loss per common share improved by $0.02 to $(0.07) for the
quarter
- Ended quarter with $43.0 million Backorders, $11.3 million
Cash, $49.6 million Working Capital and $47.5 million Stockholders’
Equity
- Expect Q2 2022 Revenue of $54 million and Adjusted EBITDA
greater than $2 million
- Expect Full Year 2022 Revenue of $250 million and Adjusted
EBITDA of $26 million
Boxlight Corporation (Nasdaq: BOXL) (“Boxlight”), a leading
provider of interactive technology solutions, today announced the
Company’s financial results for the first quarter ended March 31,
2022.
Key Financial Highlights for Q1 2022 as Compared to Q1
2021
- Revenue increased by 51.4% to $50.6 million (34% organic
growth)
- Customer orders increased by 34.0% to $64.0 million (23%
organic growth)
- Net loss improved by $0.3 million to $(4.9) million
- Adjusted EBITDA declined by $0.4 million to $1.2 million
- Net loss per common share improved by $0.02 to $(0.07)
- Working capital increased by 127.8% to $49.6 million
- Ended quarter with $43.0 million backorders, $11.3 million cash
and $47.5 million stockholders’ equity
Key Business Highlights for First quarter of 2022
- Received significant customer orders of $10.9M from Bluum
(U.S.), $6.0M from D&H Distributing (U.S.), $2.2M from Central
Technologies (U.S.), $1.1M from Data Projections (U.S.), $1.9M from
Unit DK (Denmark), $1.7M from Roche Audio Visual (U.K.), $1.7M from
Camera Mundi (Puerto Rico) and $1.5M from ASI (Australia).
- Amended our $68.5 million loan facility with WhiteHawk Capital
Partners extending the payment term on $8.5 million of the facility
by 12 months, providing for a potential 50 basis point interest
rate reduction after June 30, 2023 and extending the prepayment
penalty, among other provisions.
- Received Tech & Learning Best of 2021 Awards of Excellence
in the primary and secondary categories for our MimioConnect
blended learning platform, ProColor interactive display, MyStemKits
STEM curriculum and professional development services by
Boxlight-EOS.
- Launched the MimioStem Mobile “Mission to Mars” experience, a
van completely equipped with our award-winning STEM solutions and
ProColor interactive display.
Management Commentary
“We made substantial progress during the first quarter across
several key company initiatives and delivered another strong
financial performance with $64 million in customer orders, $51
million in revenue and $1.2 million in Adjusted EBITDA,” commented
Michael Pope, Chairman and Chief Executive Officer. “We are
experiencing growing demand for our solutions globally as evidenced
by our organic growth of 23% in customer orders and 34% in revenue
over the first quarter last year. We also concluded Q1 with $43
million in backorders, a 66% organic increase over Q1 last year,
and a healthy balance sheet with $11 million in cash, $49 million
in inventory, $50 million in working capital and $47 million in net
assets.”
“Despite continued supply chain, logistics and other challenges,
we are operating at a very high level, and for the second quarter,
we expect to deliver $54 million in revenue and greater than $2
million in Adjusted EBITDA. There are a substantial number of
orders which would have shipped in Q2 that will now ship in early
Q3 as a result of product delays. However, we still expect to
achieve our full year guidance of $250 million in revenue and $26
million in Adjusted EBITDA.”
Revenues for the three months ended March 31, 2022 were $50.6
million as compared to $33.4 million for the three months ended
March 31, 2021, resulting in a 51.4% increase, primarily due to the
inclusion of FrontRow and increased demand for our solutions in the
U.S. and Europe.
Gross profit for the three months ended March 31, 2022 was $12.6
million as compared to $8.6 million for the three months ended
March 31, 2021. The gross profit margin for the three months was
24.9% which is a reduction of 7 basis points compared to the
comparable three months in 2021. Gross profit margin, adjusted for
the net effect of acquisition-related purchase accounting, was
27.4% as compared to the 28.0%, as adjusted, reported for the three
months ended March 31, 2021. As previously reported gross margins
continue to be adversely impacted by supply chain challenges with
increased freight costs which are now expected to continue
throughout 2022; however, we anticipate gross profit percentage
improvements in Q2 and beyond as a result of reduced manufacturing
costs.
Total operating expenses for the three months ended March 31,
2022 were $16.0 million as compared to $10.6 million for the three
months ended March 31, 2021. The increase primarily resulted from
additional overhead costs associated with the acquired FrontRow
operations (including related intangibles amortization) and growth
in headcount and other related expenses.
Other income (expense) for the three months ended March 31, 2022
was net expense of $(1.5) million, as compared to net expense of
$(3.1) million for the three months ended March 31, 2021. The key
movements were an increase in interest expense $1.3 million and a
reduction of $1.8 million in previous losses recognized upon the
settlement of debt obligations, $0.8m current gain from the PPP
loan forgiveness and finally $0.3 million reduction in changes in
fair value of derivative liabilities.
The Company reported net loss of $4.9 million for the three
months ended March 31, 2022 as compared to a net loss of $5.2
million for the three months ended March 31, 2021.
The net loss attributable to common shareholders was $5.2
million and $5.5 million loss for the three months ended March 31,
2022 and 2021, respectively, after deducting the fixed dividends to
Series B preferred shareholders of $317 thousand in both 2022 and
2021.
Total comprehensive loss was $6.6 million and $5.4 million loss
for the three months ended March 31, 2022 and 2021, reflecting the
effect of foreign currency translation adjustments on
consolidation, with the net effect in the quarter of $1.8 million
loss and $0.3 million loss for the three months ended March 31,
2022 and 2021, respectively.
The EPS for the three months ended March 31, 2022 was $(0.07)
loss, compared to $(0.09) loss for the three months ended March 31,
2021.
EBITDA for the three months ending March 31, 2022 was $(0.3)
million loss, as compared to $(2.4) million EBITDA loss for the
three months ending March 31, 2021.
Adjusted EBITDA for the three months ended March 31, 2022 was
$1.2 million, as compared to $1.6 million for the three months
ended March 31, 2021. Adjustments to EBITDA include stock-based
compensation expense, gains/losses recognized upon the settlement
of certain debt instruments, gains/losses from the remeasurement of
derivative liabilities, and the effects of purchase accounting
adjustments in connection with acquisitions.
At March 31, 2022, Boxlight had $11.3 million in cash and cash
equivalents, $49.6 million in working capital, $49.1 million
inventory, $193.1 million in total assets, $51.0 million in debt,
$47.5 million in stockholders’ equity, 65.5 million common shares
issued and outstanding, and 3.1 million preferred shares issued and
outstanding.
First Quarter 2022 Financial Results Conference Call
Boxlight Corporation, a Nevada corporation (the “Company”), will
hold a conference call to announce its First Quarter 2022 financial
results on Thursday, May 12, 2022 at 4:30 p.m. Eastern Time.
The conference call details are as
follows:
Date:
Thursday, May 12, 2022
Time:
4:30 p.m. Eastern Time / 1:30 p.m. Pacific
Time
Dial-in:
1-877-545-0523 (Domestic)
1-973-528-0016 (International)
Participant Access Code:
597977
Webcast:
https://www.webcaster4.com/Webcast/Page/2213/45498
For those unable to participate during the live broadcast, a
replay of the conference call will be available until 11:59 p.m.
Eastern Time on Friday, May 12, 2023, by dialing 1-877-481-4010
(domestic) and 1-919-882-2331 (international) and referencing the
replay passcode 45498.
Use of Non-GAAP Financial Measures
To supplement Boxlight’s financial statements presented on a
GAAP basis, Boxlight provides EBITDA and Adjusted EBITDA as
supplemental measures of its performance.
To provide investors with additional insight and allow for a
more comprehensive understanding of the information used by
management in its financial and decision-making surrounding pro
forma operations, we supplement our consolidated financial
statements presented on a basis consistent with U.S. generally
accepted accounting principles, or GAAP, with EBITDA and Adjusted
EBITDA, non-GAAP financial measures of earnings. EBITDA represents
net income before income tax expense (benefit), interest expense,
depreciation and amortization. Adjusted EBITDA represents EBITDA
plus stock-based compensation, the change in fair value of
derivative liabilities, purchase accounting impact of inventory
markup, and fair value adjustments to deferred revenue, and
non-cash gains and losses associated with debt settlement. Our
management uses EBITDA and Adjusted EBITDA as financial measures to
evaluate the profitability and efficiency of our business model. We
use these non-GAAP financial measures to assess the strength of the
underlying operations of our business. These adjustments, and the
non-GAAP financial measures that are derived from them, provide
supplemental information to analyze our operations between periods
and over time. We find this especially useful when reviewing pro
forma results of operations, which include large non-cash
amortizations of intangible assets from acquisitions and
stock-based compensation. Investors should consider our non-GAAP
financial measures in addition to, and not as a substitute for,
financial measures prepared in accordance with GAAP.
About Boxlight Corporation
Boxlight Corporation (Nasdaq: BOXL) is a leading provider of
interactive technology solutions under its award-winning brands
Clevertouch®, FrontRow™ and Mimio®. The Company aims to improve
engagement and communication in diverse business and education
environments. Boxlight develops, sells and services its integrated
solution suite including interactive displays, collaboration
software, audio solutions, supporting accessories, and professional
services. For more information about Boxlight and the Boxlight
story, visit http://www.boxlight.com, https://www.clevertouch.com
and https://www.gofrontrow.com.
Forward Looking Statements
This press release may contain information about Boxlight’s view
of its future expectations, plans and prospects that constitute
forward-looking statements. Actual results may differ materially
from historical results or those indicated by these forward-looking
statements as a result of a variety of factors including, but not
limited to, risks and uncertainties associated with its ability to
maintain and grow its business, variability of operating results,
its development and introduction of new products and services,
marketing and other business development initiatives, and
competition in the industry, among other things. Boxlight
encourages you to review other factors that may affect its future
results and performance in Boxlight’s filings with the Securities
and Exchange Commission.
Boxlight Corporation
Consolidated Condensed Balance
Sheets
As of March 31, 2022 and
December 31, 2021
(Unaudited)
(in thousands)
March 31,
December 31,
2022
2021
ASSETS
Current assets:
Cash and cash equivalents
$
11,265
$
17,938
Accounts receivable – trade, net of
allowances
30,033
29,573
Inventories, net of reserves
49,094
51,591
Prepaid expenses and other current
assets
7,913
9,444
Total current assets
98,305
108,546
Property and equipment, net of accumulated
depreciation
1,447
1,073
Operating lease right of use asset
5,198
—
Intangible assets, net of accumulated
amortization
62,075
65,532
Goodwill
25,783
26,037
Other assets
308
248
Total assets
$
193,116
$
201,436
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
26,131
$
33,638
Short-term debt
9,063
9,804
Operating lease liabilities, current
2,003
—
Deferred revenues, current
7,793
7,575
Derivative liabilities
3,073
3,064
Other short-term liabilities
642
667
Total current liabilities
48,705
54,748
Deferred revenues, non-current
14,547
13,952
Long-term debt
41,962
42,137
Deferred tax liabilities, net
8,313
8,449
Operating lease liabilities,
non-current
3,230
—
Other long-term liabilities
334
340
Total liabilities
117,091
119,626
Commitments and contingencies (Note
17)
Mezzanine equity:
Preferred Series B, 1,586,620 shares
issued and outstanding
16,146
16,146
Preferred Series C, 1,320,850 shares
issued and outstanding
12,363
12,363
Total mezzanine equity
28,509
28,509
Stockholders’ equity:
Preferred stock, $0.0001 par value,
50,000,000 shares authorized; 167,972 and 167,972 shares issued and
outstanding, respectively
—
—
Common stock, $0.0001 par value,
200,000,000 shares authorized; 65,522,438 and 63,821,901 Class A
shares issued and outstanding, respectively
7
6
Additional paid-in capital
111,715
110,867
Accumulated deficit
(66,162
)
(61,300
)
Accumulated other comprehensive income
1,956
3,728
Total stockholders’ equity
47,516
53,301
Total liabilities and stockholders’
equity
$
193,116
$
201,436
Boxlight Corporation
Consolidated Condensed
Statements of Operations and Comprehensive Loss
For the three months ended
March 31, 2022, and 2021
(Unaudited)
(in thousands, except per
share amounts)
Three Months Ended
March 31,
2022
2021
Revenues, net
$
50,603
$
33,424
Cost of revenues
37,987
24,872
Gross profit
12,616
8,552
Operating expense:
General and administrative expenses
15,457
10,112
Research and development
613
474
Total operating expense
16,070
10,586
Loss from operations
(3,454
)
(2,034
)
Other income (expense):
Interest expense, net
(2,317
)
(1,018
)
Other income (expense), net
(15
)
15
(Loss) gain on settlement of liabilities,
net
854
(1,846
)
Changes in fair value of derivative
liabilities
(10
)
(265
)
Total other income (expense)
(1,488
)
(3,114
)
Loss before income taxes
(4,942
)
(5,148
)
Income tax expense
86
(21
)
Net loss
(4,856
)
(5,169
)
Fixed dividends - Series B Preferred
(317
)
(317
)
Net loss attributable to common
stockholders
(5,173
)
(5,486
)
Comprehensive loss:
Net income (loss)
(4,856
)
(5,169
)
Foreign currency translation (loss)
gain
(1,772
)
(261
)
Total comprehensive loss
$
(6,628
)
$
(5,430
)
Net income (loss) per common share –
basic
$
(0.07
)
$
(0.09
)
Weighted average number of common shares
outstanding – basic
65,428
55,150
Reconciliation of net loss for
the three months ended
March 31, 2022 and 2021 to
EBITDA and adjusted EBITDA
March 31,
March 31,
(in thousands)
2022
2021
Net loss
$
(4,856
)
$
(5,169
)
Depreciation and amortization
2,321
1,754
Interest expense
2,317
1,018
Income tax expense
(86
)
21
EBITDA
$
(304
)
$
(2,376
)
Stock compensation expense
1,086
677
Change in fair value of derivative
liabilities
9
265
Purchase accounting impact of fair valuing
inventory
617
15
Purchase accounting impact of fair valuing
deferred revenue
649
807
Net loss on settlement of Lind debt in
stock
—
2,203
Net gain on forgiveness of PPP loan
(835
)
—
Adjusted EBITDA
$
1,222
$
1,591
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220512006085/en/
Media Sunshine Nance +1 360-464-2119 x254
sunshine.nance@boxlight.com
Investor Relations +1 360-464-4478
investor.relations@boxlight.com
Boxlight (NASDAQ:BOXL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Boxlight (NASDAQ:BOXL)
Historical Stock Chart
From Apr 2023 to Apr 2024