Press Release

ADDING and REPLACING Boxlight Reports First Quarter 2018 Financial Results

Company Release - 5/15/2018 4:47 PM ET

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)-- 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:

http://public.viavid.com/index.php?id=129430

 

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 )

Media:
Nickel Communications
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

Source: Boxlight Corporation