- Revenue increased by 38% to $44 million for the quarter and by
237% for the year to $185 million
- Net income per common share improved by $0.6 to $(.11) for the
quarter and by $.16 per common share to $(.23) for the year
- Expect Q1 2022 Revenue of $44 million and Adjusted EBITDA of $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 fourth quarter and year ended
December 31, 2021.
Key Financial Highlights for Q4 2021 as Compared to Q4
2020
- Revenue increased by 38.1% to $44.0 million
- Customer orders increased by 25.0% to 41.5 million
- Gross profit margin improved by 100 basis points to 21.2%
- Net loss improved by $1.4 million to $(7.1) million
- Adjusted EBITDA loss increased by $2.4 million to $(2.0)
million
- Net loss per common share improved by $0.06 to $(0.11)
- Working capital improved by 154.0% to $53.4 million
- Ended quarter with $27.6 million backorders, $17.9 million cash
and $53.3 million stockholders’ equity
Key Financial Highlights for Full Year 2021 as Compared to
Full Year 2020
- Revenue increased by 237% to $185.2 million
- Customer orders increased by 283% to 216.2 million
- Gross profit margin was 25.1%, as adjusted for the net effect
of acquisition related purchase accounting, increased by 117 basis
points to 26.8%
- Net loss improved by $2.4 million to $(13.8) million
- Adjusted EBITDA improved by $13.1 million to $12.1 million
- Net loss per common share improved by $0.16 to $(0.23)
Key Business Highlights for 2021
- Received significant customer orders of $3.1 million from Unit
DK (Denmark), $2.6m from Bluum (U.S.), $2.5 million from Central
Technologies (U.S.), $2.2 million from D&H Distributing (U.S.),
$2.2 million from ASI (Australia), $1.9 million from Advanced
Classroom Technologies (U.S.), $1.3 million from Speechi (France)
and $1.1 million from Roche Audio Visual (U.K.).
- Completed the acquisition of FrontRow, a leading provider of
classroom and campus communication solutions for the education
market. We expect FrontRow to contribute $32 million revenue and $8
million EBITDA in fiscal year 2022.
- Secured a $68.5 million loan facility with WhiteHawk Capital
Partners, providing funding to complete the FrontRow acquisition,
refinance existing debt with Sallyport Commercial Finance and Lind
Global Asset Management, and allow for general working
capital.
- We continue to innovate and release product updates and feature
additions that differentiate us from the competition, including a
new generation of interactive and non-interactive flat panels,
enhancements to our MimioConnect blended learning platform,
improved tools in our LYNX Whiteboard annotation and lesson
planning software, the ability to access our Cleverstore 3
education app via a web browser, additional screen sharing tools
using Clevershare 5, and the addition of sensor technologies to
monitor air quality in meeting spaces.
- Clevertouch Technologies received two Tech & Learning Best
of Show Awards at InfoComm for our Clevertouch IMPACT Plus
interactive touchscreen and ClevertouchLive, our customizable
content management platform.
Management Commentary
“We had a strong fourth quarter, delivering $44 million in
revenue, a 38% organic increase over the fourth quarter of 2020,”
commented Michael Pope, Chairman and Chief Executive Officer. “The
financial results of FrontRow were not included in our Q4 financial
statements because we completed the acquisition on December 31,
2021. However, due to significant one-time costs during the quarter
from the FrontRow transaction and related financing, as well as
high supply chain and logistics expenses, we reported an Adjusted
EBITDA loss of $2 million.
“For the current year, we are experiencing stronger than
expected customer orders as well as growth in our sales pipeline
and have lifted our guidance for the full year to $250 million in
revenue and $26 million in Adjusted EBITDA. For the first quarter,
we expect $44 million in revenue and $2 million in Adjusted
EBITDA.
“We concluded the year with an improved balance sheet including
$18 million cash, $53 million working capital and $53 million in
net assets.
“Just two years prior, we reported the full year 2019 financial
results with $31 million in orders, $33 million in revenue and an
Adjusted EBITDA loss of $6 million. We are a dramatically larger
company today, benefitting from both market expansion and strategic
acquisitions. For the full year 2021, on a pro forma basis combined
with FrontRow, we generated $250 million in orders, $215 million in
revenue and $21 million in Adjusted EBITDA. We are gaining on our
key competitors with an aim to achieve the top industry position in
each of our product categories. We are also committed to continue
our trend of above market growth and improving profitability.”
Financial Results for the Three Months Ended December 31,
2021
Revenues for the three months ended December 31, 2021 were $44.0
million as compared to $31.9 million for the three months ended
December 31, 2020, resulting in a 38.1% increase, primarily due to
increased demand for our solutions in the U.S. and Europe.
Gross profit for the three months ended December 31, 2021 was
$9.3 million as compared to $3.6 million for the three months ended
December 31, 2020. The gross profit margin for the three months was
21.2% which is an improvement of 100 basis points compared to the
comparable three months in 2020. Gross profit margin, adjusted for
the net effect of acquisition-related purchase accounting, was
28.1% as compared to the 26.4%, as adjusted, reported for the three
months ended December 31, 2020. As reported in previous quarters
this year, gross margins have been adversely impacted by
approximately four percentage points due to increased freight and
customs costs caused by supply chain challenges associated with the
effects of the Covid-19 pandemic. Additional pressure on margin has
been seen on the cost of manufacturing as a result of component
shortages which have had an adverse impact of approximately 4% in
the quarter.
Total operating expenses for the three months ended December 31,
2021 were $14.9 million as compared to 11.1 million for the three
months ended December 31, 2020. The increase primarily arose from
headcount and other related overhead expenses and significant
one-time costs related to the FrontRow and WhiteHawk
transaction.
Other income (expense) for the three months ended December 31,
2021 was net expense of $(2.2) million, as compared to net expense
of $(1.9) million for the three months ended December 31, 2020.
Other expense increased primarily due to $1.6 million losses
recognized upon the settlement of debt obligations.
The Company reported net loss of $7.1 million for the three
months ended December 31, 2021 as compared to a net loss of $8.6
million for the three months ended December 31, 2020.
The net loss attributable to common shareholders was $7.5
million and $8.9 million for the three months ended December 31,
2021 and 2020, respectively, after deducting the fixed dividends to
Series B preferred shareholders of $317 thousand in 2021 and $338
thousand in 2020.
Total comprehensive loss was $6.9 million and $3.2 million for
the three months ended December 31, 2021 and 2020, reflecting the
effect of cumulative foreign currency translation adjustments on
consolidation, with the net effect in the quarter of $275 thousand
gain and $5.3 million gain for the three months ended December 31,
2021 and 2020, respectively.
The EPS for the three months ended December 31, 2021 was $(.11)
loss, compared to $(0.17) loss for the three months ended December
31 2020.
EBITDA for the three months ending December 31, 2021 was $(5.1)
million loss, as compared to $(6.4) million EBITDA loss for the
three months ending December 31, 2020.
Adjusted EBITDA for the three months ended December 31, 2021 was
$(2.0) million loss, as compared to $356 thousand for the three
months ended December 31, 2020. 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 December 31, 2021, Boxlight had $17.9 million in cash and
cash equivalents, $53.4 million in working capital, $51.6 million
inventory, $201.4 million in total assets, $51.9 million in debt
(which is our new Whitehawk debit facility, net of debt issuance
costs of 7.1 million), $53.3 million in stockholders’ equity, 63.8
million common shares issued and outstanding, and 3.1 million
preferred shares issued and outstanding.
Financial Results for the Year Ended December 31,
2021
Revenues for the twelve months ended December 31, 2021 were
$185.2 million as compared to $54.9 million for the twelve months
ended December 31, 2020, resulting in a 237% increase due primarily
to the acquisition of Sahara in September 2020 and increased demand
for our solutions.
Gross profit for the twelve months ended December 31, 2021 was
$46.5 million as compared to $9.9 million for the twelve months
ended December 31, 2020. The gross profit margin for the twelve
months ended December 31 2021 was 25.1% compared to 18% for the
twelve months ended December 31, 2020. Gross profit margin,
adjusted for the net effect of acquisition-related purchase
accounting, was 26.8% as compared to the 27.1%, as adjusted,
reported for the twelve months ended December 31 2020. As reported
in previous quarters this year, gross margins have been adversely
impacted by approximately four percentage points due to increased
freight and customs costs caused by supply chain challenges
associated with the effects of the Covid-19 pandemic; this is
anticipated to continue into 2022. Additional pressure on margin
has been seen on the cost of manufacturing as a result of component
shortages which have had an adverse impact of approximately 3.9% in
the twelve months to December 31, 2021.
Total operating expenses for the twelve months ended December
31, 2021 were $49.1 million as compared to $22.6 million for the
twelve months ended December 31, 2020. The increase primarily
resulted from additional overhead costs associated with full year
cost of the acquired Sahara operations in September 2020.
Other income (expense) for the twelve months ended December 31,
2021 was net expense of $(7.9) million, as compared to net expense
of $(4.3) million for the twelve months ended December 31, 2020.
The increase in other expense was primarily due to $4.9 million of
increased expense due to losses recognized upon the settlement of
certain debt instruments.
The Company reported a net loss of $(13.8) million for the
twelve months ended December 31, 2021 as compared to a net loss of
$(16.2) million for the twelve months ended December 31, 2020.
The net loss attributable to common shareholders was $(14.7)
million and $(16.5) million for the twelve months ended December
31, 2021 and 2020, respectively, after deducting fixed dividends to
Series B preferred shareholders of $1.3 million in 2021 and the
fair value revaluation deemed contribution of $367 thousand
following the redemption amendment with the Series B shareholders
signed June 14, 2021.
Total comprehensive loss was $(15.3) million and $(10.9) million
for the twelve months ended December 31, 2021 and 2020, reflecting
the effect of cumulative foreign currency translation adjustments
on consolidation, with the net effect year to date of $(1.5)
million loss and $5.2 million gain for the twelve months ended
December 31, 2021 and 2020, respectively.
The EPS loss for the twelve months ended December 31, 2021 was
$(0.23) per share, compared to $(0.39) per share for the twelve
months ended December 31, 2020.
EBITDA for the twelve months ending December 31, 2021 was a gain
of $67 thousand, as compared to a loss of $11.6 million for the
twelve months ending December 31, 2020.
Adjusted EBITDA for the twelve months ended December 31, 2021
was $12.1 million, as compared to a loss of $1.0 million for the
twelve months ended December 31, 2020. 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.
Fourth Quarter 2021 Financial Results Conference Call
Boxlight Corporation, a Nevada corporation (the “Company”), will
hold a conference call to announce its Fourth Quarter and Full Year
2021 financial results on Thursday, March 17, 2022 at 4:30 p.m.
Eastern Time.
The conference call details are as follows:
Date:
Thursday, March 17, 2022
Time:
4:30 p.m. Eastern Time / 1:30
p.m. Pacific Time
Dial-in:
1-877-545-0320 (Domestic)
1-973-528-0002
(International)
Participant Access Code:
901845
Webcast:
https://www.webcaster4.com/Webcast/Page/2213/44832
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, March 17, 2023, by dialing 1-877-481-4010
(domestic) and 1-919-882-2331 (international) and referencing the
replay passcode 44832.
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 non- cash 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® 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,
supporting accessories and professional services. For more
information about Boxlight and the Boxlight story, visit
http://www.boxlight.com and
http://www.clevertouch.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 December 31, 2021 and
December 31, 2020 (Unaudited) (in thousands)
December 31,
December 31,
2021
2020
ASSETS
Current assets:
Cash and cash equivalents
$
17,938
$
13,460
Accounts receivable – trade, net of
allowances
28,531
20,869
Inventories, net of reserves
51,591
20,913
Prepaid expenses and other current
assets
10,486
6,161
Total current assets
108,546
61,403
Property and equipment, net of accumulated
depreciation
1,073
562
Intangible assets, net of accumulated
amortization
65,532
55,156
Goodwill
26,037
22,742
Investment in subsidiary
—
—
Other assets
248
90
Total assets
$
201,436
$
139,953
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
33,638
$
14,246
Accounts payable and accrued expenses –
related parties
—
1,967
Short-term debt
9,804
16,817
Earn-out payable – related party
—
119
Deferred revenues – short-term
8,264
5,671
Derivative liabilities
3,064
363
Other short-term liabilities
426
1,209
Total current liabilities
55,196
40,392
Deferred revenues – long-term
13,265
10,482
Long-term debt
42,137
7,831
Deferred tax liability
8,690
7,902
Other long-term liabilities
340
2
Total liabilities
119,628
66,609
Commitments and contingencies (Note
13)
Mezzanine equity:
Preferred Series B
16,146
16,513
Preferred Series C
12,363
12,363
Total mezzanine equity
28,509
28,876
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; 61,310,899 and 53,343,518 Class A
shares issued and outstanding, respectively
6
6
Additional paid-in capital
110,866
86,768
Accumulated deficit
(61,301
)
(47,498
)
Accumulated other comprehensive loss
3,728
5,192
Total stockholders’ equity
53,299
44,468
Total liabilities and stockholders’
equity
$
201,436
$
139,953
Boxlight Corporation
Consolidated Condensed Statements of Operations and Comprehensive
Loss For the twelve months ended December 31, 2021, and 2020
(Unaudited) (in thousands, except per share amounts)
Year Ended
December 31,
2021
2020
Revenues, net
$
185,177
$
54,891
Cost of revenues
138,652
45,023
Gross profit
46,525
9,868
Operating expense:
General and administrative expenses
47,270
21,157
Research and development
1,826
1,419
Total operating expense
49,096
22,576
Income (loss) from operations
(2,571
)
(12,708
)
Other income (expense):
Interest expense, net
(3,382
)
(2,815
)
Other income (expense), net
(20
)
129
Changes in fair value of derivative
liabilities
(4,532
)
(1,363
)
Loss from settlements of liabilities
13
(216
)
Total other income (expense)
(7,921
)
(4,265
)
Income (loss) before income taxes
(10,492
)
(16,973
)
Income tax expense
(3,310
)
821
Net income (loss)
(13,802
)
(16,152
)
Fixed dividends - Series B Preferred
(1,269
)
(338
)
Deemed Contribution -Series B
Preferred
367
—
Net loss attributable to common
stockholders
(14,704
)
(16,490
)
Comprehensive loss:
Net income (loss)
(13,802
)
(16,152
)
Foreign currency translation (loss)
gain
(1,464
)
5,230
Total comprehensive loss
$
(15,266
)
$
(10,922
)
Net income (loss) per common share –
basic
$
(0.23
)
$
(0.39
)
Weighted average number of common shares
outstanding – basic
58,849
42,198
Reconciliation of net loss for
the three months ended December 31, 2021 and 2020 to EBITDA and
adjusted EBITDA
December 31,
December 31,
(in thousands)
2021
2020
Net loss
$
(7,143
)
$
(8,566
)
Depreciation and amortization
1,912
1,795
Interest expense
730
1,196
Income tax expense
(626
)
(821
)
EBITDA
$
(5,127
)
$
(6,396
)
Stock compensation expense
1,040
762
Restructuring costs
—
121
Acquisition costs
—
265
Change in fair value of derivative
liabilities
(177
)
(23
)
Purchase accounting impact of fair valuing
inventory
15
4,038
Purchase accounting impact of fair valuing
deferred revenue
668
805
Net loss on settlement of Lind debt in
stock
378
784
Net loss on settlement of debt close
out
1,189
—
Adjusted EBITDA
$
(2,014
)
$
356
Reconciliation of net loss for
the twelve months ended December 31, 2021 and 2020 to EBITDA and
adjusted EBITDA
December 31,
December 31,
(in thousands)
2021
2020
Net loss
$
(13,802
)
$
(16,153
)
Depreciation and amortization
7,177
2,555
Interest expense
3,382
2,815
Income tax expense
3,310
(821
)
EBITDA
$
67
$
(11,604
)
Stock compensation expense
4,060
1,628
Restructuring costs
—
121
Acquisition costs
—
438
Change in fair value of derivative
liabilities
(12
)
216
Purchase accounting impact of fair valuing
inventory
60
4,248
Purchase accounting impact of fair valuing
deferred revenue
2,980
805
Net loss on settlement of Lind debt in
stock
3,751
3,124
Net loss on settlement of debt close
out
1,189
—
Adjusted EBITDA
$
12,095
$
(1,024
)
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Media Sunshine Nance +1 360-464-2119 x254 sunshine.nance@boxlight.com
Investor Relations +1 360-464-4478 investor.relations@boxlight.com
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