Boxlight Reports Fourth Quarter and Full Year 2023 Financial Results
New Leadership, Board Corporate Restructuring, Positions
Financial and Operational Highlights:
-
Revenue was
$38.8 million for the quarter, a decrease of 9.3% from the prior year quarter - Gross profit margin in Q4'23 decreased by 190 basis points to 31.7% due to non-recurring charges
-
Net loss was
$17.7 million , inclusive of non-recurring impairment charges of$12.0 million , compared to net loss of$2.0 million in the prior year quarter -
Net loss per basic and diluted common share was
$1.87 , compared to$0.25 net loss per basic and diluted common share in the prior year quarter -
Adjusted EBITDA decreased by
$3.7 million to($1.1) million from the prior year quarter -
Ended the quarter with
$17.3 million in Cash,$54.1 million in Working Capital and$16.8 million in Stockholders’ Equity -
Expect Q1 2024 Revenue and adjusted EBITDA at
$34 million and($3.0) million , respectively -
Q4'23 Sales orders slightly decreased 3% to
$38.3 million -
Announced the opening of our Central European
Hub Showroom in theUK
Management Commentary
“My first few weeks have confirmed my perception that Boxlight is comprised of high-quality assets, exceptional technology, and talented, committed employees,” commented
Financial Results for the Three Months Ended
Total revenues were
Gross profit for Q4'23 was
Total Q4'23 operating expenses were
Net loss, inclusive of the
Total Q4'23 comprehensive loss was
Basic and diluted EPS for Q4'23 was (
EBITDA loss for Q4'23 was
Adjusted EBITDA loss for Q4'23 was
Financial Results for the Year Ended
Total revenues for FY'23 were
Total operating expenses for FY'23 were
Net loss for FY'23 was
Basic and diluted EPS for FY'23 was (
EBITDA loss for FY'23 was
Balance Sheet
At
Fourth Quarter 2023 Financial Results Conference Call
The Company will hold a conference call to announce its fourth quarter and full year 2023 financial results on
The conference call details are as follows:
Date: |
|
Time: |
|
Dial-in: |
1-888-506-0062 (Domestic) |
|
1-973-528-0011 (International) |
Participant Access Code: |
951719 |
Webcast: |
For those unable to participate during the live broadcast, a replay of the conference call will be available until
Use of Non-GAAP Financial Measures
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
We report our operating results in accordance with
We believe disclosure of constant-currency results is helpful to investors because it facilitates period-to-period comparisons of our results by increasing the transparency of our underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, constant-currency results are non-
Discussion of the Effect of Constant Currency on Financial Condition
We calculate constant-currency amounts by translating local currency amounts in the current period at actual foreign exchange rates for the prior year period. Our constant-currency results do not eliminate the transaction currency impact of purchases and sales of products in a currency other than the functional currency.
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Three Months
|
|
Three Months
|
% Decrease |
||||
|
(Dollars in thousands) |
|
||||||
Total revenues |
|
|
|
|
||||
As reported |
$ |
38,812 |
|
|
$ |
42,814 |
(9 |
)% |
Impact of foreign currency translation |
|
(1,095 |
) |
|
|
- |
|
|
Constant-currency |
$ |
37,717 |
|
|
$ |
42,814 |
(12 |
)% |
|
Year Ended
|
|
Year Ended
|
% Decrease |
||||
|
(Dollars in thousands) |
|
||||||
Total revenues |
|
|
|
|
||||
As reported |
$ |
176,721 |
|
|
$ |
221,781 |
(20 |
)% |
Impact of foreign currency translation |
|
(487 |
) |
|
|
- |
|
|
Constant-currency |
$ |
176,234 |
|
|
$ |
221,781 |
(21 |
)% |
About
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
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Condensed Consolidated Balance Sheets |
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As of |
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(in thousands, except share and per share amounts) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
17,253 |
|
|
$ |
14,591 |
|
Accounts receivable – trade, net of allowances |
|
29,523 |
|
|
|
31,009 |
|
Inventories, net of reserves |
|
44,131 |
|
|
|
58,211 |
|
Prepaid expenses and other current assets |
|
9,471 |
|
|
|
7,433 |
|
Total current assets |
|
100,378 |
|
|
|
111,244 |
|
|
|
|
|
||||
Property and equipment, net of accumulated depreciation |
|
2,477 |
|
|
|
1,733 |
|
Operating lease right of use asset |
|
8,846 |
|
|
|
4,350 |
|
Intangible assets, net of accumulated amortization |
|
45,964 |
|
|
|
52,579 |
|
|
|
— |
|
|
|
25,092 |
|
Other assets |
|
906 |
|
|
|
397 |
|
Total assets |
$ |
158,571 |
|
|
$ |
195,395 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
32,899 |
|
|
$ |
36,566 |
|
Short-term debt |
|
1,037 |
|
|
|
845 |
|
Operating lease liabilities, current |
|
1,827 |
|
|
|
1,898 |
|
Deferred revenues, current |
|
8,698 |
|
|
|
8,308 |
|
Derivative liabilities |
|
205 |
|
|
|
472 |
|
Other short-term liabilities |
|
1,566 |
|
|
|
386 |
|
Total current liabilities |
|
46,232 |
|
|
|
48,475 |
|
|
|
|
|
||||
Deferred revenues, non-current |
|
16,347 |
|
|
|
15,603 |
|
Long-term debt |
|
39,134 |
|
|
|
43,778 |
|
Deferred tax liabilities, net |
|
4,316 |
|
|
|
4,680 |
|
Operating lease liabilities, non-current |
|
7,282 |
|
|
|
2,457 |
|
Other long-term liabilities |
|
— |
|
|
|
— |
|
Total liabilities |
|
113,311 |
|
|
|
114,993 |
|
|
|
|
|
||||
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, |
|
— |
|
|
|
— |
|
Common stock, |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
119,724 |
|
|
|
117,849 |
|
Accumulated deficit |
|
(104,275 |
) |
|
|
(65,043 |
) |
Accumulated other comprehensive income (loss) |
|
1,301 |
|
|
|
(914 |
) |
Total stockholders’ equity |
|
16,751 |
|
|
|
51,893 |
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
$ |
158,571 |
|
|
$ |
195,395 |
|
* As adjusted for reverse stock split. |
|
|||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss |
|||||||
For the year ended |
|||||||
(in thousands, except per share amounts) |
|||||||
|
2023 |
|
2022 |
||||
Revenues, net |
$ |
176,721 |
|
|
$ |
221,781 |
|
Cost of revenues |
|
113,419 |
|
|
|
156,913 |
|
Gross profit |
|
63,302 |
|
|
|
64,868 |
|
|
|
|
|
||||
Operating expense: |
|
|
|
||||
General and administrative expenses |
|
61,252 |
|
|
|
59,337 |
|
Research and development |
|
3,155 |
|
|
|
2,482 |
|
Impairment of goodwill |
|
25,195 |
|
|
|
— |
|
Total operating expense |
|
89,602 |
|
|
|
61,819 |
|
|
|
|
|
||||
(Loss) income from operations |
|
(26,300 |
) |
|
|
3,049 |
|
|
|
|
|
||||
Other income (expense): |
|
|
|
||||
Interest expense, net |
|
(10,840 |
) |
|
|
(9,923 |
) |
Other expense, net |
|
(417 |
) |
|
|
(267 |
) |
Gain on settlement of liabilities, net |
|
— |
|
|
|
856 |
|
Change in fair value of derivative liabilities |
|
267 |
|
|
|
2,591 |
|
Total other expense |
|
(10,990 |
) |
|
|
(6,743 |
) |
Loss before income taxes |
|
(37,290 |
) |
|
|
(3,694 |
) |
Income tax expense |
|
(1,866 |
) |
|
|
(49 |
) |
Net loss |
|
(39,156 |
) |
|
|
(3,743 |
) |
Fixed dividends - Series B Preferred |
|
(1,269 |
) |
|
|
(1,269 |
) |
Net loss attributable to common stockholders |
$ |
(40,425 |
) |
|
$ |
(5,012 |
) |
|
|
|
|
||||
Comprehensive loss: |
|
|
|
||||
Net loss |
|
(39,156 |
) |
|
|
(3,743 |
) |
Other comprehensive loss: |
|
|
|
||||
Foreign currency translation adjustment |
|
2,215 |
|
|
|
(4,642 |
) |
Total comprehensive loss |
$ |
(36,941 |
) |
|
$ |
(8,385 |
) |
|
|
|
|
||||
Net loss per common share – basic and diluted - as adjusted* |
$ |
(4.28 |
) |
|
$ |
(0.58 |
) |
|
|
|
|
||||
Weighted average number of common shares outstanding – basic and diluted - as adjusted* |
|
9,455 |
|
|
|
8,644 |
|
* As adjusted for reverse stock split. |
Reconciliation of net loss for the three months and year ended |
||||||||||||||||
(in thousands) |
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
2023 |
|
Year Ended
2022 |
||||||||
Net loss |
|
$ |
(17,671 |
) |
|
$ |
(2,018 |
) |
|
$ |
(39,156 |
) |
|
$ |
(3,743 |
) |
Depreciation and amortization |
|
|
1,966 |
|
|
|
2,311 |
|
|
|
8,859 |
|
|
|
9,129 |
|
Interest expense |
|
|
2,619 |
|
|
|
2,593 |
|
|
|
10,840 |
|
|
|
9,923 |
|
Income tax (benefit) expense |
|
|
(1,514 |
) |
|
|
(426 |
) |
|
|
1,866 |
|
|
|
49 |
|
EBITDA |
|
$ |
(14,600 |
) |
|
$ |
2,460 |
|
|
$ |
(17,591 |
) |
|
$ |
15,358 |
|
Stock compensation expense |
|
|
1,307 |
|
|
|
648 |
|
|
|
3,131 |
|
|
|
3,313 |
|
Change in fair value of derivative liabilities |
|
|
(217 |
) |
|
|
(1,054 |
) |
|
|
(267 |
) |
|
|
(2,591 |
) |
Purchase accounting impact of fair valuing inventory |
|
|
113 |
|
|
|
101 |
|
|
|
448 |
|
|
|
1,496 |
|
Purchase accounting impact of fair valuing deferred revenue |
|
|
341 |
|
|
|
482 |
|
|
|
1,649 |
|
|
|
2,229 |
|
Net gain on settlement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(856 |
) |
Impairment of |
|
|
11,969 |
|
|
|
— |
|
|
|
25,195 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(1,087 |
) |
|
$ |
2,637 |
|
|
$ |
12,565 |
|
|
$ |
18,949 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240313168319/en/
Media
+1 360-464-2119 x254
sunshine.nance@boxlight.com
Investor Relations
+1 360-464-4478
investor.relations@boxlight.com
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