BEIJING, Aug. 19, 2020
/PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE: LITB)
("LightInTheBox" or the "Company"), a cross-border e-commerce
platform that delivers products directly to consumers around the
world, today announced its unaudited financial results for the
second quarter ended June 30, 2020.
Second Quarter and First Half 2020 Financial
Highlights
|
|
Three Months
Ended
|
|
Year-over-
|
|
Six Months
Ended
|
|
Year-over-
|
|
|
June 30,
|
|
June 30,
|
|
Year %
|
|
June 30,
|
|
June 30,
|
|
Year %
|
|
In millions, except percentages
|
|
2019
|
|
2020
|
|
Change
|
|
2019
|
|
2020
|
|
Change
|
|
Total
revenues
|
|
$
|
58.1
|
|
$
|
113.9
|
|
95.9%
|
|
$
|
109.0
|
|
$
|
165.4
|
|
51.7%
|
|
Gross
margin
|
|
41.9%
|
|
43.5%
|
|
|
|
38.6%
|
|
44.4%
|
|
|
|
Net income /
(loss)
|
|
$
|
(7.3)
|
|
$
|
8.5
|
|
|
|
$
|
(21.4)
|
|
$
|
9.2
|
|
|
|
Adjusted
EBITDA
|
|
$
|
0.9
|
|
$
|
9.1
|
|
920.8%
|
|
$
|
(7.0)
|
|
$
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
|
|
As of June 30,
|
|
In millions
|
|
2020
|
|
2020
|
|
Cash, cash
equivalents and restricted cash
|
|
$
|
35.6
|
|
$
|
55.0
|
Mr. Jian He, Chief Executive Officer of LightInTheBox,
commented, "Despite the continued macroeconomic uncertainty, we are
proud of achieving a significant milestone in the second quarter
operationally and financially. Total revenues were $113.9 million in the second quarter, nearly
doubling that of the second quarter in 2019. At the same time, we
achieved a net income of $8.5 million
in comparison with $0.7 million net
income in the preceding quarter and a net loss of $7.3 million in the same period of last year.
These results reflected the success of our revamped strategy, which
is to focus on optimizing product and category mix, enhancing
supplier chain management and driving customer engagement. Looking
ahead, we will continue to execute our established growth strategy,
further enhance our partnership with key suppliers and improve the
customer experience across regions we operate. We are confident
that with our sound strategy and solid execution, we will be able
to consistently achieve profitable growth and create long-term
value for our shareholders."
Second Quarter 2020 Financial Results
Total revenues increased by 95.9% year-over-year to
$113.9 million from $58.1 million in the same quarter of 2019.
Revenues generated from product sales were $107.2 million, compared with $57.1 million in the same quarter of 2019.
Revenues from service and others were $6.7
million, compared with $1.0
million in the same quarter of 2019.
Total cost of revenues was $64.3
million in the second quarter of 2020, compared with
$33.8 million in the same quarter of
2019. Cost for product sales was $59.0
million in the second quarter of 2020, compared with
$33.6 million in the same quarter of
2019. Cost for service and others was $5.3
million in the second quarter of 2020, compared with
$0.2 million in the same quarter of
2019.
Gross profit in the second quarter of 2020 was
$49.6 million, compared with
$24.4 million in the same quarter of
2019. Gross margin was 43.5% in the second quarter of 2020,
compared with 41.9% in the same quarter of 2019. The increase in
gross margin was a result of the Company's continuous efforts to
drive revenues from product categories with higher margins.
Total operating expenses in the second quarter of 2020
were $41.4 million, compared with
$26.9 million in the same quarter of
2019.
- Fulfillment expenses in the second quarter of 2020 were
$7.4 million, compared with
$4.9 million in the same quarter of
2019. As a percentage of total revenues, fulfillment expenses were
6.5% in the second quarter of 2020, compared with 8.4% in the same
quarter of 2019 and 9.8% in the first quarter of 2020.
- Selling and marketing expenses in the second quarter of
2020 were $26.5 million, compared
with $11.5 million in the same
quarter of 2019. As a percentage of total revenues, selling and
marketing expenses were 23.3% for the second quarter of 2020,
compared with 19.8% in the same quarter of 2019 and 28.7% in the
first quarter of 2020.
- G&A expenses in the second quarter of 2020 were
$7.5 million, compared with
$10.5 million in the same quarter of
2019. As a percentage of total revenues, G&A expenses were 6.6%
for the second quarter of 2020, compared with 18.1% in the same
quarter of 2019 and 14.1% in the first quarter of 2020. Included in
G&A expenses, R&D expenses in the second quarter of 2020
were $3.3 million, compared with
$4.1 million in the same quarter of
2019.
Income from operations was $8.2
million in the second quarter of 2020, compared with loss
from operations of $2.6 million in
the same quarter of 2019.
Net income was $8.5 million
in the second quarter of 2020, compared with a net loss of
$7.3 million in the same quarter of
2019.
Net income per American Depository Share ("ADS") was
$0.08 in the second quarter of 2020,
compared with net loss per ADS of $0.11 in the same quarter of 2019. Each ADS
represents two ordinary shares. The diluted net income per ADS was
$0.08 in the second quarter of 2020,
compared with the diluted net loss per ADS of $0.11 in the same quarter of 2019.
In the second quarter of 2020, the Company's basic weighted
average number of ADSs used in computing the net income per ADS was
111,798,193 and the diluted weighted average number of ADSs was
111,822,459.
Adjusted EBITDA, which represents gain / (loss)
from operations before share-based compensation expense, change in
fair value of convertible promissory notes, interest income,
interest expense, income tax expense and depreciation and
amortization expenses, was earnings of $9.1
million in the second quarter of 2020, compared with
earnings of $0.9 million in the
same quarter of 2019.
As of June 30, 2020, the Company had cash and cash
equivalents and restricted cash of $55.0
million, compared with $35.6
million as of March 31, 2020. The increase of the
Company's cash position in the second quarter was mainly
contributed by the cash inflow generated from its operating
activities.
First Half 2020 Financial Results
Total revenues increased by 51.7% year-over-year to
$165.4 million from $109.0 million in the same half of 2019. Revenues
generated from product sales were $157.2
million, compared with $106.9
million in the same half of 2019. Revenues from service and
others were $8.2 million, compared
with $2.1 million in the same half of
2019.
Total cost of revenues was $91.9
million in the first half of 2020, compared with
$66.9 million in the same half of
2019. Cost for product sales was $85.9
million in the first half of 2020, compared with
$66.4 million in the same half of
2019. Cost for service and others was $6.0
million in the first half of 2020, compared with
$0.5 million in the same half of
2019.
Gross profit in the first half of 2020 was $73.5 million, compared with $42.1 million in the same half of 2019. Gross
margin was 44.4% in the first half of 2020, compared with 38.6% in
the same half of 2019. The increase in gross margin was a result of
the Company's continuous efforts to drive revenues from product
categories with higher margins.
Total operating expenses in the first half of 2020 were
$68.5 million, compared with
$53.5 million in the same half of
2019.
- Fulfillment expenses in the first half of 2020 were
$12.4 million, compared with
$10.2 million in the same half of
2019. As a percentage of total revenues, fulfillment expenses were
7.5% in the first half of 2020, compared with 9.3% in the same half
of 2019.
- Selling and marketing expenses in the first half of 2020
were $41.3 million, compared with
$20.8 million in the same half of
2019. As a percentage of total revenues, selling and marketing
expenses were 25.0% for the first half of 2020, compared with 19.1%
in the same half of 2019.
- G&A expenses in the first half of 2020 were
$14.8 million, compared with
$22.5 million in the same half of
2019. As a percentage of total revenues, G&A expenses were 8.9%
for the first half of 2020, compared with 20.6% in the same half of
2019. Included in G&A expenses, R&D expenses in the first
half of 2020 were $6.8 million,
compared with $8.3 million in the
same half of 2019.
Income from operations was $5.0
million in the first half of 2020, compared with loss from
operations of $11.4 million in the
same half of 2019.
Net income was $9.2 million
in the first half of 2020, compared with a net loss of $21.4 million in the same half of 2019.
Net income per American Depository Share ("ADS") was
$0.09 in the first half of 2020,
compared with net loss per ADS of $0.32 in the same half of 2019. Each ADS
represents two ordinary shares. The diluted net income per ADS for
the first half of 2020 was $0.08,
compared with the diluted net loss per ADS of $0.32 in the same half of 2019.
In the first half of 2020, the Company's basic weighted average
number of ADSs used in computing the net income per ADS was
107,019,679, and 111,890,989 in diluted weighted average
number.
Adjusted EBITDA, which represents gain / (loss)
from operations before share-based compensation expense, change in
fair value of convertible promissory notes, interest income,
interest expense, income tax expense and depreciation and
amortization expenses, was earnings of $10.6
million in the first half of 2020, compared with loss
of $7.0 million in the same
half of 2019.
Business Outlook
For the third quarter of 2020, based on current information
available to the Company and business seasonality, the Company
expects net revenues to be between $95
million and $110 million,
representing an increase between 59% and 83% compared with the
third quarter of 2019.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with U.S. GAAP, we use the
following non-GAAP financial measures to help evaluate our
operating performance:
"Adjusted EBITDA" represents gain /(loss) from operations before
share-based compensation expense, change in fair value of
convertible promissory notes, interest income, interest expense,
income tax expense and depreciation and amortization expenses.
Although other companies may calculate adjusted EBITDA differently
or not present it at all, we believe that the adjusted EBITDA helps
to identify underlying trends in our operating results, enhancing
their understanding of the past performance and future
prospects.
Conference Call
The Company will hold a conference call to discuss the results
at 8:00 a.m. Eastern Time on August 19, 2020 (8:00
p.m. Beijing Time on the same day).
Preregistration Information
Participants can register for the conference call by navigating
to http://apac.directeventreg.com/registration/event/6718979. Once
preregistration has been complete, participants will receive
dial-in numbers, an event passcode, and a unique registrant ID.
To join the conference, simply dial the number in the calendar
invite you receive after preregistering, enter the event passcode
followed by your unique registrant ID, and you will be joined to
the conference instantly.
A telephone replay will be available two hours after the
conclusion of the conference call through August 26, 2020. The
dial-in details are:
|
US/Canada:
|
+1-855-452-5696
|
|
Hong Kong:
|
800-963-117
|
|
International:
|
+61-2-8199-0299
|
|
Passcode:
|
6718979
|
Additionally, a live and archived webcast of the conference call
will be available on the Company's Investor Relations website at
http://ir.lightinthebox.com.
About LightInTheBox Holding Co., Ltd.
LightInTheBox is a cross-border e-commerce platform 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, www.ezbuy.com and
other websites and mobile applications, which are available in 23
major languages and cover more than 140 countries.
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
Tel: +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 fourth 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. dollars in
thousands, or otherwise noted)
|
|
|
As of December 31,
|
|
As of June 30,
|
|
2019
|
|
2020
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
37,736
|
|
52,117
|
|
Restricted
cash
|
2,709
|
|
2,907
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
1,356
|
|
1,196
|
|
Amounts due from
related parties
|
4,600
|
|
2,810
|
|
Inventories
|
7,357
|
|
8,496
|
|
Prepaid expenses and
other current assets
|
3,619
|
|
3,469
|
|
Total current
assets
|
57,377
|
|
70,995
|
|
Property and
equipment, net
|
3,502
|
|
3,207
|
|
Intangible assets,
net
|
8,516
|
|
8,403
|
|
Goodwill
|
27,922
|
|
27,524
|
|
Operating lease
right-of-use assets
|
12,233
|
|
13,168
|
|
Long-term rental
deposits
|
778
|
|
559
|
|
Long-term
investments
|
2,873
|
|
6,648
|
|
TOTAL
ASSETS
|
113,201
|
|
130,504
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
17,643
|
|
16,680
|
|
Amounts due to
related parties
|
186
|
|
167
|
|
Advance from
customers
|
21,731
|
|
28,536
|
|
Operating lease
liabilities
|
3,470
|
|
4,363
|
|
Accrued expenses and
other current liabilities
|
28,642
|
|
31,806
|
|
Total current
liabilities
|
71,672
|
|
81,552
|
|
|
|
|
|
Operating lease
liabilities
|
8,801
|
|
8,443
|
|
Long-term
payable
|
847
|
|
662
|
|
TOTAL
LIABILITIES
|
81,320
|
|
90,657
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Ordinary
shares
|
14
|
|
17
|
|
Additional paid-in
capital
|
262,888
|
|
278,884
|
|
Forward
contracts
|
15,769
|
|
-
|
|
Treasury shares, at
cost
|
(27,512)
|
|
(28,464)
|
|
Accumulated other
comprehensive loss
|
(1,444)
|
|
(1,977)
|
|
Accumulated
deficit
|
(217,888)
|
|
(208,785)
|
|
Non-controlling
interests
|
54
|
|
172
|
|
TOTAL
EQUITY
|
31,881
|
|
39,847
|
|
TOTAL LIABILITIES AND
EQUITY
|
113,201
|
|
130,504
|
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
(U.S. dollars in
thousands, except per share data, or otherwise
noted)
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
Revenues
|
|
|
|
|
|
|
|
|
Product
sales
|
57,111
|
|
107,235
|
|
106,900
|
|
157,171
|
|
Services and
others
|
1,031
|
|
6,643
|
|
2,115
|
|
8,225
|
|
Total
revenues
|
58,142
|
|
113,878
|
|
109,015
|
|
165,396
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Product
sales
|
(33,618)
|
|
(58,964)
|
|
(66,403)
|
|
(85,869)
|
|
Services and
others
|
(162)
|
|
(5,364)
|
|
(519)
|
|
(6,076)
|
|
Total Cost of
revenues
|
(33,780)
|
|
(64,328)
|
|
(66,922)
|
|
(91,945)
|
|
Gross
profit
|
24,362
|
|
49,550
|
|
42,093
|
|
73,451
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Fulfillment
|
(4,906)
|
|
(7,414)
|
|
(10,171)
|
|
(12,463)
|
|
Selling and
marketing
|
(11,523)
|
|
(26,499)
|
|
(20,792)
|
|
(41,279)
|
|
General and
administrative
|
(10,499)
|
|
(7,517)
|
|
(22,483)
|
|
(14,785)
|
|
Other operating
income
|
-
|
|
59
|
|
-
|
|
72
|
|
Total operating
expenses
|
(26,928)
|
|
(41,371)
|
|
(53,446)
|
|
(68,455)
|
|
(Loss) / Income from
operations
|
(2,566)
|
|
8,179
|
|
(11,353)
|
|
4,996
|
|
Interest
income
|
74
|
|
6
|
|
197
|
|
53
|
|
Interest
expense
|
(18)
|
|
(13)
|
|
(38)
|
|
(43)
|
|
Change in fair value
of convertible promissory notes
|
(6,605)
|
|
-
|
|
(11,942)
|
|
-
|
|
Other
Income,net
|
-
|
|
301
|
|
-
|
|
4,214
|
|
Total other (loss) /
income
|
(6,549)
|
|
294
|
|
(11,783)
|
|
4,224
|
|
(Loss) / Income
before income taxes and gain from an
equity method investment
|
(9,115)
|
|
8,473
|
|
(23,136)
|
|
9,220
|
|
Income tax (expense)
/ benefit
|
(204)
|
|
4
|
|
(420)
|
|
1
|
|
Gain from an equity
method investment
|
2,029
|
|
-
|
|
2,156
|
|
-
|
|
Net (loss) /
income
|
(7,290)
|
|
8,477
|
|
(21,400)
|
|
9,221
|
|
Less: Net income /
(loss) attributable to non-controlling
interests
|
72
|
|
(5)
|
|
104
|
|
118
|
|
Net (loss) /income
attributable to LightInTheBox Holding
Co., Ltd.
|
(7,362)
|
|
8,482
|
|
(21,504)
|
|
9,103
|
|
|
|
|
|
|
|
|
|
Weighted average
numbers of shares used in calculating
(loss) / income per ordinary
share
|
|
|
|
|
|
|
|
|
-Basic
|
134,604,556
|
|
223,596,385
|
|
134,531,762
|
|
214,039,358
|
|
-Diluted
|
134,604,556
|
|
223,644,919
|
|
134,531,762
|
|
223,781,977
|
|
|
|
|
|
|
|
|
|
Net (loss) / income
per ordinary share
|
|
|
|
|
|
|
|
|
-Basic
|
(0.05)
|
|
0.04
|
|
(0.16)
|
|
0.04
|
|
-Diluted
|
(0.05)
|
|
0.04
|
|
(0.16)
|
|
0.04
|
|
|
|
|
|
|
|
|
|
Net (loss) / income
per ADS (2 ordinary shares equal to 1
ADS)
|
|
|
|
|
|
|
|
|
-Basic
|
(0.11)
|
|
0.08
|
|
(0.32)
|
|
0.09
|
|
-Diluted
|
(0.11)
|
|
0.08
|
|
(0.32)
|
|
0.08
|
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Reconciliations of GAAP and Non-GAAP Results
|
|
(U.S. dollars in
thousands, or otherwise noted)
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income
|
(7,290)
|
|
8,477
|
|
(21,400)
|
|
9,221
|
|
|
|
|
|
|
|
|
|
Less: Interest
income
|
74
|
|
6
|
|
197
|
|
53
|
|
Interest
expense
|
(18)
|
|
(13)
|
|
(38)
|
|
(43)
|
|
Income tax (expense) /
benefit
|
(204)
|
|
4
|
|
(420)
|
|
1
|
|
Depreciation and
amortization
|
(634)
|
|
(586)
|
|
(1,262)
|
|
(1,137)
|
|
EBITDA
|
(6,508)
|
|
9,066
|
|
(19,877)
|
|
10,347
|
|
|
|
|
|
|
|
|
|
Less: Share-based
compensation
|
(799)
|
|
(80)
|
|
(956)
|
|
(229)
|
|
Change in fair value
of convertible promissory notes
|
(6,605)
|
|
-
|
|
(11,942)
|
|
-
|
|
Adjusted
EBITDA*
|
896
|
|
9,146
|
|
(6,979)
|
|
10,576
|
|
|
* Adjusted EBITDA
represents gain /(loss) from operations before share-based
compensation expense, change in fair value of
convertible promissory notes, interest income, interest
expense, income tax expense and depreciation and amortization
expenses.
|
View original
content:http://www.prnewswire.com/news-releases/lightinthebox-reports-second-quarter-2020-financial-results-301114631.html
SOURCE LightInTheBox Holding Co., Ltd.