Add after last paragraph of release: Boxlight Corporation Consolidated Balance Sheets, Boxlight Corporation Consolidated Statements of Operations and Comprehensive Loss, Boxlight Corporation Reconciliation of Net Loss to EBITDA, Boxlight Corporation Reconciliation of Net Loss to Adjusted EBITDA.
The corrected release reads:
BOXLIGHT REPORTS FIRST QUARTER 2018 FINANCIAL RESULTS
Boxlight Corporation (Nasdaq: BOXL) (“Boxlight”), a leading provider of technology solutions for the global learning market, today announced the Company's financial results for the first quarter ended March 31, 2018.
First Quarter 2018 Financial Highlights
- Revenue of $6.0 million increased 43.0% from $4.2 million in the first quarter of 2017.
- Gross profit of $1.5 million increased 23.4% from $1.2 million in the first quarter of 2017. Gross margin was 24.7% compared to 28.6% in the first quarter of 2017.
- Operating expenses of $3.3 million increased 23.5% from $2.6 million in the first quarter of 2017. Loss from operations was $(1.8) million, compared to a loss of $(1.4) million in the first quarter of 2017.
- Net loss was $(1.9) million, or $(0.20) per share, compared to a net loss of $(1.6) million, or $(0.34) per share, in the first quarter of 2017.
- Adjusted EBITDA was a loss of $(1.1) million, compared to a loss of $(1.1) million in the first quarter of 2017.
Management Commentary
“We are pleased to build on our 2017 performance with a very strong first quarter. Revenues were up over 40 percent year-over-year, led by the continued expansion in our network of reseller partners, growing adoption of our existing product suite and continued product introductions,” commented Mark Elliott, chief executive officer of Boxlight. “Growth in our reseller network is an important component of our organic growth strategy.”
“We intend to complement our growth with strategic acquisitions,” added Mr. Elliott. “With this in mind, we are pleased to announce our acquisition of Cohuba, a touch display technology firm based in the U.K. We look forward to leveraging Cohuba’s experienced sales and operational team and channel partner network in this important market.”
Mr. Elliott concluded, “Subsequent to quarter end, we were awarded several significant contracts to deliver Boxlight’s comprehensive suite of products and services to students in thousands of additional U.S. classrooms this year. We are seeing unprecedented adoption of technology solutions in the education market, and we exited the quarter with the strongest sales pipeline in our history. We remain confident that our comprehensive, integrated product and software suite uniquely position Boxlight as a thought leader in the educational technology market.”
Recent Developments
During the quarter, the company entered into new partnerships with Kansas City Audio Visual (KVAC), a leading reseller in the Midwest; TEQ, a New York-based reseller for the Company’s portable STEM lab, tables, peripherals and supporting products; and Whalley Computer Associates, a prominent reseller in New England. Boxlight will work with these trusted reseller partners to introduce the Company’s interactive and collaborative learning solutions into additional K-12 classrooms in the U.S.
On May 14, 2018, the Company announced its acquisition of United Kingdom-based Cohuborate Ltd. (“Cohuba"), from a family trust of Tony Cann, founder of Promethean. Cohuba is a developer of touch display technology for the education, government and business markets. Through the acquisition, Boxlight gains Cohuba’s experienced sales and operations team, and strong network of reseller partners to distribute Boxlight’s technology solutions to the education market throughout the United Kingdom. Boxlight will relaunch the Cohuba brand in 2018 as its global business and government solution. The acquisition also expands the company’s advisory panel with the addition of Mr. Paul Pickup, former chief operating officer of Promethean and Mr. Andy Pennington, founder and CEO of Cohuba, and previously head of product at Promethean.
Boxlight acquired Cohuba for approximately $1.8 million through the issuance of 257,200 shares of common stock at a price of $7 per share.
First Quarter 2018 Financial Results Conference Call
Management will host a conference call to discuss the first quarter 2018 financial results today, Tuesday, May 15, 2018 at 4:30 p.m. Eastern Time. The conference call details are as follows:
| Date: | Tuesday, May 15, 2018 | ||
| Time: | 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time | ||
| Dial-in: |
1-877-407-9716 (Domestic)
1-201-493-6779 (International) | ||
| Conference ID: | 13679065 | ||
| Webcast: | |||
For those unable to participate during the live broadcast, a replay of the call will also be available from 7:30 p.m. Eastern Time on May 15, 2018 through 11:59 p.m. Eastern Time on May 29, 2018 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13679065.
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 income, interest expense, depreciation and amortization. Adjusted EBITDA represents EBITDA plus stock-based compensation and non-recurring IPO expenses. 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 access 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) (“Boxlight”) is a leading provider of technology solutions for the global education market. The company aims to improve learning and engagement in classrooms and to help educators enhance student outcomes, by developing the products they need. The company develops, sells, and services its integrated, interactive solution suite including software, classroom technologies, professional development and support services. For more information about the Boxlight story, visit http://www.boxlight.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, competition in the industry, etc. Boxlight encourages you to review other factors that may affect its future results in Boxlight's filings with the Securities and Exchange Commission.
| Boxlight Corporation | ||||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||||
| March 31, | December 31, | |||||||||||||||
| 2018 | 2017 | |||||||||||||||
| ASSETS | ||||||||||||||||
Current Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 448,345 | $ | 2,010,325 | ||||||||||||
| Accounts receivable - trade, net of allowance | 3,083,668 | 3,089,932 | ||||||||||||||
| Inventories, net of reserve | 3,738,723 | 4,626,569 | ||||||||||||||
| Prepaid expenses and other current assets | 1,227,995 | 388,006 | ||||||||||||||
| Total current Assets | 8,498,731 | 10,114,832 | ||||||||||||||
| Property and equipment, net of accumulated depreciation | 25,095 | 29,752 | ||||||||||||||
| Intangible assets, net of accumulated amortization | 5,943,368 | 6,126,558 | ||||||||||||||
| Goodwill | 4,181,991 | 4,181,991 | ||||||||||||||
| Other assets | 316 | 292 | ||||||||||||||
| Total Assets | $ | 18,649,501 | $ | 20,453,425 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable and accrued expenses | $ | 2,415,090 | $ | 2,994,918 | ||||||||||||
| Accounts payable and accrued expenses - related parties | 4,739,569 | 4,391,713 | ||||||||||||||
| Short-term debt | 819,960 | 752,449 | ||||||||||||||
| Short-term debt - related parties | 54,000 | 54,000 | ||||||||||||||
| Convertible notes payable - related parties | 50,000 | 50,000 | ||||||||||||||
| Deferred revenues - short term | 483,243 | 1,127,423 | ||||||||||||||
| Total current liabilities | 8,561,862 | 9,370,503 | ||||||||||||||
| Deferred revenues - long term | 175,915 | 175,294 | ||||||||||||||
| Total liabilities | 8,737,777 | 9,545,797 | ||||||||||||||
| Commitments and contingencies | ||||||||||||||||
| Stockholders' equity: | ||||||||||||||||
| Preferred stock, $0.0001 par value, 50,000,000 shares authorized; 250,000 shares issued and outstanding | 25 | 25 | ||||||||||||||
| Common stock, $0.0001 par value, 200,000,000 shares authorized; 9,648,197 and 9,558,997 Class A shares issued and outstanding, respectively | 965 | 956 | ||||||||||||||
| Additional paid-in capital | 24,655,946 | 23,740,751 | ||||||||||||||
| Subscriptions receivable | (325 | ) | (325 | ) | ||||||||||||
| Accumulated deficit | (14,701,902 | ) | (12,785,931 | ) | ||||||||||||
| Other comprehensive loss | (42,985 | ) | (47,848 | ) | ||||||||||||
| Total stockholders' equity | 9,911,724 | 10,907,628 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 18,649,501 | $ | 20,453,425 | ||||||||||||
| Boxlight Corporation | |||||||||||||
| Consolidated Statements of Operations and Comprehensive Loss | |||||||||||||
| Three Months Ended March 31, | |||||||||||||
| 2018 | 2017 | ||||||||||||
| Revenues | $ | 5,996,685 | $ | 4,194,429 | |||||||||
| Cost of revenues | 4,515,713 | 2,994,683 | |||||||||||
| Gross profit | 1,480,972 | 1,199,746 | |||||||||||
Operating expenses: | |||||||||||||
| General and administrative expenses | 3,169,787 | 2,451,206 | |||||||||||
| Research and development | 92,505 | 190,445 | |||||||||||
Total operating expenses | 3,262,292 | 2,641,651 | |||||||||||
| Loss from operations | (1,781,320 | ) | (1,441,905 | ) | |||||||||
| Other income (expense): | |||||||||||||
Interest expense, net | (146,928 | ) | (169,091 | ) | |||||||||
| Other income (expense), net | (13,461 | ) | 49,646 | ||||||||||
| Gain on settlement of debt | 25,738 | - | |||||||||||
| Total other income (expense) | (134,651 | ) | (119,445 | ) | |||||||||
| Net loss | (1,915,971 | ) | (1,561,350 | ) | |||||||||
| Comprehensive loss: | |||||||||||||
| Net loss | (1,915,971 | ) | (1,561,350 | ) | |||||||||
| Other comprehensive loss: | |||||||||||||
| Foreign currency translation loss | 4,863 | (23,713 | ) | ||||||||||
| Total comprehensive loss | (1,911,108 | ) | (1,585,063 | ) | |||||||||
| Net loss per common share - basic and diluted | $ | (0.20 | ) | $ | (0.34 | ) | |||||||
| Weighted average number of common shares outstanding - basic and diluted | 9,617,233 | 4,621,687 | |||||||||||
| Boxlight Corporation | ||||||||||||
| Reconciliation of Net Loss to EBITDA | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
Net loss | $ | (1,916 | ) | $ | (1,561 | ) | ||||||
| Depreciation and amortization | 188 | 192 | ||||||||||
| Interest expense | 147 | 169 | ||||||||||
| EBITDA | $ | (1,581 | ) | $ | (1,200 | ) | ||||||
| Boxlight Corporation | ||||||||||||
| Reconciliation of Net Loss to Adjusted EBITDA | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
Net loss | $ | (1,916 | ) | $ | (1,561 | ) | ||||||
| Depreciation and amortization | 188 | 192 | ||||||||||
| Interest expense | 147 | 169 | ||||||||||
| Stock compensation expense | 497 | 47 | ||||||||||
| Non-recurring IPO expenses | - | 53 | ||||||||||
| Adjusted EBITDA | $ | (1,084 | ) | $ | (1,100 | ) | ||||||
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Contacts:
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Charlotte Andrist,
+1-770-310-5244
charlotte@nickelcommpr.com
or
Investor
Relations:
Boxlight Corporation
Michael Pope,
+1-360-464-4478
michael.pope@boxlight.com
or
Addo
Investor Relations
Laura Bainbridge, +1-310-829-5400
investor.relations@boxlight.com
