- Revenue increased by 12.7% to $68.7 million
- Net income per diluted common share improved by $0.02 to
$0.03
- Adjusted EBITDA increased by $2.7 million to $9.9 million
- Ended quarter with $22.0 million in Cash, $62.3 million in
Working Capital and $46.8 million in Stockholders’ Equity
- Expect Q4 2022 Revenue of $48 million and Adjusted EBITDA of $2
million
- Expect Full Year 2022 Revenue of $227 million and Adjusted
EBITDA of $18 million
Boxlight Corporation (Nasdaq: BOXL) (“Boxlight” or the
“Company”), a leading provider of interactive technology solutions,
today announced the Company’s financial results for the third
quarter ended September 30, 2022.
Key Financial Highlights for Q3 2022 as Compared to Q3
2021
- Revenue increased by 12.7% to $68.7 million
- Customer orders decreased by 14.3% to $43.7 million
- Gross profit margin improved by 470 basis points to 30.6%
- Net income improved by $2.4 million to $3.1 million
- Adjusted EBITDA improved by $2.7 million to $9.9 million
- Net income per diluted common share improved by $0.02 to
$0.03
- Ended the quarter with $22.0 million in Cash, $62.3 million in
Working Capital and $46.8 million in Stockholders’ equity
Key Business Highlights for third quarter of 2022
- Received significant customer orders of $43.7 million,
including $5.9 million from Bluum (U.S.), $2.2 million from Camera
Mundi (Puerto Rico), $2.1 million from Graphics Distribution
(U.S.), $1.6 million from Central Technologies (U.S.), $1.4 million
from D&H Distributing (U.S.), $1.5 million from Bischoff AG
(Switzerland), $1.4 million from Unit DK (Denmark) and $1.1 million
from IDNS (U.K.).
- Updated our interactive displays with Android 11, improved
speakers, USB-C with hardware optimization, additional screen
sharing and lesson planning apps, user profiles and launch screens,
and compatibility with Google Classroom cloud accounts.
- Launched CleverHub and MimioHub – our all-in-one, wireless
screen sharing solution for any display.
- Rebranded ClevertouchLive as CleverLive with new features
expected in 2023.
- Enhanced our FrontRow Attention! solution allowing simultaneous
campus-wide broadcast of audio alerts and visual messages.
- Enhanced our MimioConnect blended learning platform to allow
students to add and save annotations; teachers to view and share
student work, student polling via text messages and enhanced STEM
lessons with PhET simulations.
- Received 11 Best for Back-to-School 2022 Awards from Tech and
Learning, including for MimioPro 4, CleverLive, MimioConnect,
MyStemKits, EOS Education, and Attention! by FrontRow.
“The third quarter was our strongest to date,” commented Michael
Pope, Chairman and Chief Executive Officer. “We reported revenue
growth of 13% to $69 million and Adjusted EBITDA growth of 38% to
$10 million over the same quarter last year. We have delivered
double-digit or greater revenue growth for eight consecutive
quarters, gaining meaningful market share in each of our key
territories.”
“We ended the quarter with a strong balance sheet including $22
million in cash, $49 million in inventory, $62 million in working
capital and $47 million in net assets. Also, for the first time, we
reported positive cash flows from operations for both the three
months and nine months ended September 30, 2022.”
“Our success as a company has been a result of our talented
employees and our commitment to innovation. During the third
quarter we introduced several hardware and software updates that
uniquely position us as a leading provider of interactive solutions
in both the education and enterprise verticals.”
Financial Results for the Three Months Ended September 30,
2022
Total revenues for the three months ended September 30, 2022
were $68.7 million as compared to $61.0 million for the three
months ended September 30, 2021, resulting in a 12.7% increase in
revenue. Revenues primarily consisted of hardware revenue, software
revenue and professional services. The increase in revenues was
primarily due to the acquisition of FrontRow in December 2021, as
well as increased demand for the Company’s solutions in the U.S.
FrontRow revenue for the three months ended September 30, 2022 was
$5.6 million.
Cost of revenues for the three months ended September 30, 2022
was $47.7 million compared to $45.2 million for the three months
ended September, 30, 2021, resulting in a 5.5% increase. Cost of
revenues consists primarily of product cost, freight expenses,
customs expense and inventory adjustments. The increase in cost of
revenues was associated with the FrontRow acquisition.
Gross profit for the three months ended September 30, 2022, was
$21.0 million, as compared to $15.8 million for the three months
ended September 30, 2021. The gross profit margin for the three
months ended September 30, 2022 was 30.6% which is an increase of
470 basis points compared to the comparable three months in 2021.
Gross profit margin, adjusted for the net effect of
acquisition-related purchase accounting of $698 thousand and $730
thousand, was 31.6% as compared to the 27.1%, as adjusted, reported
for the three months ended September 30, 2022 and September 30,
2021, respectively.
Total operating expenses for the three months ended September
30, 2022 were $14.6 million and 21.2% of revenues, as compared to
$12.3 million and 20.1% of revenues for the three months ended
September 30, 2021. The increase was primarily a result of
operating expenses associated with the FrontRow acquisition.
Other expense (net) for the three months ended September 30,
2022 was $2.8 million, as compared to $1.4 million for the three
months ended September 30, 2021. Other expense increased primarily
due to a $1.7 million increase in interest expense associated with
increased borrowings under our credit facility.
Net income was $3.1 million for the three months ended September
30, 2022 and $729 thousand for the three months ended September 30,
2021. The net income attributable to common shareholders was $2.8
million and $412 thousand for the three months ended September 30,
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 $1.9 million and $1.3 million for
the three months ended September 30, 2022 and 2021, respectively,
reflecting the effect of foreign currency translation adjustments
on consolidation, with the net effect in the quarter of $5.0
million loss and $2.0 million loss for the three months ended
September 30, 2022 and 2021, respectively.
Basic EPS for the three months ended September 30, 2022 was
$0.04, compared to $0.01 for the three months ended September 30,
2021. Diluted EPS for the three months ended September 30, 2022 was
$0.03, compared to $0.01 for the three months ended September 30,
2021.
EBITDA for the three months ended September 30, 2022 was $8.5
million, as compared to $4.7 million EBITDA for the three months
ended September 30, 2021.
Adjusted EBITDA for the three months ended September 30, 2022
was $9.9 million, as compared to $7.2 million for the three months
ended September 30, 2021. Adjustments to EBITDA included
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 prior period
acquisitions.
At September 30, 2022, Boxlight had $22.0 million in cash and
cash equivalents, $62.3 million in working capital, $49.4 million
inventory, $214.5 million in total assets, $59.2 million in debt,
$46.8 million in stockholders’ equity, 74.1 million common shares
issued and outstanding, and 3.1 million preferred shares issued and
outstanding.
Financial Results for the Nine Months Ended September 30,
2022
Total revenues for the nine months ended September 30, 2022 were
$179.0 million as compared to $141.2 million for the nine months
ended September 30, 2021, resulting in a 26.8% increase. The
increase in revenues was primarily due to the acquisition of
FrontRow in December 2021, as well as increased demand for our
solutions across all markets. Organic revenue growth for Boxlight
for the nine months ended September 30, 2022 was 13.3%. FrontRow
revenues for the first nine months of 2022 was $19.0 million.
Cost of revenues for the nine months ended September 30, 2022
were $128.5 million as compared to $104.0 million for the nine
months ended Septembers 30, 2021, resulting in a 23.6% increase.
The increase in cost of revenues was associated with the
acquisitions and growth of the business as discussed above, as well
as additional increases in global freight/shipping in the first
half of 2022.
Gross profit for the nine months ended September 30, 2022 was
$50.5 million as compared to $37.2 million for the nine months
ended September 30, 2021, an increase of $13.3 million. The gross
profit margin was 28.2% for the nine months ended September 30,
2022 and 26.3% for the nine months ending September 30, 2021. The
increase in gross profit margin during the nine months ended
September 30, 2022 was a result of increased margins associated
with FrontRow products, as well as lower manufacturing and
freight/shipping costs.
Total operating expenses for the nine months ended September 30,
2022 were $46.6 million and 26.0% of revenue as compared to $34.2
million and 24.2% of revenue for the nine months ended September
30, 2021. The increase in G&A expenses resulted from additional
costs associated with the acquired FrontRow operations, new hires
for planned growth and non-recurring professional fees associated
with recent transactions.
The company reported a net loss of $1.7 million for the nine
months ended September 30, 2022 as compared to a net loss of $6.7
million for the nine months ended September 30, 2021.
The net loss attributable to common shareholders was $2.7
million and $7.2 million for the nine months ended September 30,
2022 and 2021, respectively, after deducting fixed dividends to
Series B preferred shareholders of $952 thousand in both years and
the fair value revaluation deemed contribution of $367 thousand
following the redemption amendment with the Series B shareholders
in the second quarter of 2021.
Total comprehensive loss was $13.2 million and $8.4 million for
the nine months ended September 30, 2022 and 2021, respectively,
reflecting the effect of cumulative foreign currency translation
adjustments on consolidation, with the net effect year to date of
$11.4 million loss and $1.7 million loss for the nine months ended
September 30, 2022 and 2021, respectively.
EPS loss for the nine months ended September 30, 2022 was
$(0.04) per basic and diluted share, compared to $(0.12) per basic
and diluted share for the nine months ended September 30, 2021.
EBITDA for the nine months ended September 30, 2022 was $12.9
million, as compared to $5.2 million EBITDA for the nine months
ended September 30, 2021.
Adjusted EBITDA for the nine months ended September 30, 2022 was
$16.3 million, as compared to $14.1 million for the nine months
ended September 30, 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.
Third Quarter 2022 Financial Results Conference Call
Boxlight Corporation, a Nevada corporation (the “Company”), will
hold a conference call to announce its Third Quarter 2022 financial
results on Wednesday, November 9, 2022 at 4:30 p.m. Eastern
Time.
The conference call details are as follows:
Date:
Wednesday, November 9, 2022
Time:
4:30 p.m. Eastern Time / 1:30
p.m. Pacific Time
Dial-in:
1-888-506-0062 (Domestic)
1-973-528-0011
(International)
Participant Access Code:
951260
Webcast:
https://www.webcaster4.com/Webcast/Page/2213/46898
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 Wednesday, November 23, 2022, by dialing
1-877-481-4010 (domestic) and 1-919-882-2331 (international) and
referencing the replay passcode 46898.
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 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.
We report our operating results in accordance with U.S. GAAP. We
have disclosed in the table below the results on a constant
currency basis to facilitate period-to-period comparisons of our
results without regard to the impact of fluctuating foreign
currency exchange rates. The term foreign currency exchange rates
refers to the exchange rates we use to translate our operating
results for all countries where the functional currency is not the
U.S. Dollar into U.S. Dollars. Because we are a global company, the
foreign currency exchange rates used for translation may have a
significant effect on our reported results. In general, our
reported financial results are affected positively by a weaker U.S.
Dollar and are affected negatively by a stronger U.S. Dollar as
compared to the foreign currencies in which we conduct our
business. References to our operating results on a
constant-currency basis mean our operating results without the
impact of foreign currency exchange rate fluctuations.
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-U.S.
GAAP financial measures and are not meant to be considered in
isolation or as a substitute for comparable measures prepared in
accordance with U.S. GAAP. Constant-currency results have no
standardized meaning prescribed by U.S. GAAP, are not prepared
under any comprehensive set of accounting rules or principles, and
should be read in conjunction with our consolidated financial
statements prepared in accordance with U.S. GAAP. Constant-currency
results have limitations in their usefulness to investors and may
be calculated differently from, and therefore may not be directly
comparable to, similarly titled measures used by other
companies.
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.
Three months ended
Three months ended
September 30,
September 30,
%
2022
2021
Increase
(Dollars in thousands)
Total revenues
As reported
$
68,736
$
61,008
13%
Impact of foreign currency
5,757
-
Constant-currency
$
74,493
$
61,008
22%
Nine months ended
Nine months ended
September 30,
September 30,
%
2022
2021
Increase
(Dollars in thousands)
Total revenues
As reported
$
178,967
$
141,186
27%
Impact of foreign currency
9,969
-
Constant-currency
$
188,936
$
141,186
34%
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
Condensed Consolidated Balance
Sheets
As of September 30, 2022 and
December 31, 2021
(in thousands)
September 30,
December 31,
2022
2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
21,952
$
17,938
Accounts receivable – trade, net of
allowances
51,254
29,573
Inventories, net of reserves
49,435
51,591
Prepaid expenses and other current
assets
9,013
9,444
Total current assets
131,654
108,546
Property and equipment, net of accumulated
depreciation
1,675
1,073
Operating lease right of use asset
4,370
—
Intangible assets, net of accumulated
amortization
51,913
65,532
Goodwill
24,524
26,037
Other assets
363
248
Total assets
$
214,499
$
201,436
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
48,410
$
33,638
Short-term debt
9,224
9,804
Operating lease liabilities, current
1,767
—
Derivative liabilities
8,194
7,575
Deferred revenues, current
1,527
3,064
Other short-term liabilities
258
667
Total current liabilities
69,380
54,748
Deferred revenues, non-current
15,016
13,952
Long-term debt
44,056
42,137
Deferred tax liabilities, net
8,036
8,449
Operating lease liabilities,
non-current
2,594
—
Other long-term liabilities
148
340
Total liabilities
139,230
119,626
Commitments and contingencies
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; 74,123,492 and 63,821,901 Class A
shares issued and outstanding, respectively
7
6
Additional paid-in capital
117,499
110,867
Accumulated deficit
(63,025
)
(61,300
)
Accumulated other comprehensive (loss)
income
(7,721
)
3,728
Total stockholders’ equity
46,760
53,301
Total liabilities and stockholders’
equity
$
214,499
$
201,436
Boxlight Corporation
Condensed Consolidated
Statements of Operations and Comprehensive Loss
For the three and nine months
ended September 30, 2022, and 2021
(Unaudited)
(in thousands, except share
and per share amounts)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Revenues, net
$
68,736
$
61,008
$
178,967
$
141,186
Cost of revenues
47,716
45,210
128,497
104,002
Gross profit
21,020
15,798
50,470
37,184
Operating expense:
General and administrative expenses
13,952
11,933
44,714
32,844
Research and development
604
355
1,865
1,310
Total operating expense
14,556
12,288
46,579
34,154
Income from operations
6,464
3,510
3,891
3,030
Other income (expense):
Interest expense, net
(2,598
)
(870
)
(7,330
)
(2,652
)
Other income (expense), net
(128
)
34
(204
)
54
Gain (loss) on settlement of liabilities,
net
—
(614
)
856
(2,992
)
Changes in fair value of derivative
liabilities
(113
)
60
1,537
(164
)
Total other expense
(2,839
)
(1,390
)
(5,141
)
(5,754
)
Income (loss) before income taxes
$
3,625
$
2,120
$
(1,250
)
$
(2,724
)
Income tax expense
(520
)
(1,391
)
(475
)
(3,936
)
Net income (loss)
$
3,105
$
729
$
(1,725
)
$
(6,660
)
Fixed dividends - Series B Preferred
(317
)
(317
)
(952
)
(952
)
Deemed contribution -Series B
Preferred
—
—
—
367
Net income (loss) attributable to common
stockholders
$
2,788
$
412
$
(2,677
)
$
(7,245
)
Comprehensive loss:
Net income (loss)
$
3,105
$
729
$
(1,725
)
$
(6,660
)
Other comprehensive loss:
Foreign currency translation
adjustment
(5,040
)
(2,008
)
(11,449
)
(1,738
)
Total comprehensive loss
$
(1,935
)
$
(1,279
)
$
(13,174
)
$
(8,398
)
Net income (loss) per common share –
basic
$
0.04
$
0.01
$
(0.03
)
$
(0.12
)
Net income (loss) per common share –
diluted
$
0.03
$
0.01
$
(0.03
)
$
(0.12
)
Weighted average number of common shares
outstanding – basic
71,547
60,094
67,458
57,723
Weighted average number of common shares
outstanding – diluted
89,574
64,710
67,458
57,723
Reconciliation of net income
(loss) for the three and nine months ended
September 30, 2022 and 2021 to
EBITDA and Adjusted EBITDA
Three Months Ended
Three Months Ended
Nine Months Ended
Nine Months Ended
September 30,
September 30,
September 30,
September 30,
(in thousands)
2022
2021
2022
2021
Net income (loss)
$
3,105
$
729
$
(1,725
)
$
(6,660
)
Depreciation and amortization
2,231
1,697
6,818
5,264
Interest expense
2,598
870
7,330
2,652
Income tax expense
520
1,391
475
3,936
EBITDA
$
8,454
$
4,687
$
12,898
$
5,192
Stock compensation expense
603
1,161
2,665
3,020
Change in fair value of derivative
liabilities
113
(60
)
(1,537
)
164
Purchase accounting impact of fair valuing
inventory
189
15
1,395
45
Purchase accounting impact of fair valuing
deferred revenue
509
715
1,747
2,312
Net (gain) loss on settlement of debt
—
638
(856
)
3,373
Adjusted EBITDA
$
9,868
$
7,156
$
16,312
$
14,106
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221109006045/en/
Media Sunshine Nance +1 360-464-2119 x254
sunshine.nance@boxlight.com
Investor Relations Greg Wiggins +1 360-464-4478
investor.relations@boxlight.com
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