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Boxlight Reports Full-Year 2017 Financial Results

April 2, 2018

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Apr 2, 2018--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 year ended December 31, 2017.

2017 Year End Financial Highlights

  • Revenue was $25.7 million, an increase of 26.4% from $20.4 million in 2016.
  • Gross profit was $6.4 million, a decrease of 13.5% from $7.4 million in 2016. Gross margin was 24.9% compared to 36.4% in 2016.
  • Operating expenses were $13.6 million, up from $8.7 million in 2016. Loss from operations was $7.1 million, compared to a loss of $1.3 million in 2016.
  • Net loss was $7.3 million, or $1.34 per share, compared to a net loss of $2.1 million, or $0.48 per share, in 2016.
  • Adjusted EBITDA was a loss of $1.7 million, compared to a gain of $0.1 million in 2016.

Management Commentary

“2017 was an exciting year for Boxlight. We increased revenues by 26% year-over-year, while growing our reseller network, driving adoption of our product suite and introducing new products. We also completed our initial public offering, raising $7 million to invest in the business and lay the foundation for future growth,” commented Mark Elliott, Chief Executive Officer of Boxlight Corporation.

Mr. Elliott continued, “At Boxlight, we strive to be the leader of innovative and effective educational technology solutions. Our comprehensive product suite combines technology and software solutions in the areas of whole-classroom learning, collaboration, assessment and STEM, and is sold through a large network of over 500 trusted resellers. Our products are found in nearly 1 million classrooms in over 60 countries worldwide, including some of the largest school districts in the U.S.”

“As we look ahead to 2018, we’re excited about our prospects. We’re operating in a large and growing market that is poised for consolidation. We have an optimized global distribution channel, a comprehensive product offering that is protected by a strong suite of IP, and an infrastructure that is built to scale,” Mr. Elliot concluded.

Recent Developments

On November 28, 2017, the Company announced the closing of its initial public offering of 1,000,000 shares of its class A common stock at a public offering price of $7.00 per share. The gross proceeds to the Company from this offering were $7,000,000 before deducting offering related expenses and placement agent fees. The shares of class A common stock were approved for listing on The NASDAQ Capital Market under the ticker symbol “BOXL” and began trading on November 30, 2017. Aegis Capital Corp. acted as the lead placement agent for the offering.

On December 31, 2017, the Company announced that 2018 will mark the beginning of its new strategic partnership with ProArch, an end-to-end digital solutions provider that is an Elite Microsoft Tier 1 Cloud Service Provider (CSP) with global reach. The Company will work with ProArch on a number of projects, including the expansion of educators’ access to a variety of Microsoft products and licensing solutions.

In January 2018, Boxlight introduced new interactive and collaborative learning solutions including new touch boards, an interactive touch table, laser projectors, and more at the Future of Education Technology Conference and the Texas Computer Education Association Convention. Key product introductions included:

  • A first-of-its-kind solution that turns a conventional whiteboard into a touch board in less than five minutes.
  • The next generation ProColor interactive touch table, featuring a 49” diagonal screen size to better facilitate collaborative work.
  • MimioSpace, an ultra-wide system consisting of a 32-touch TouchBoard and companion ultra-wide laser projector.

On February 5, 2018, the Company announced the appointment of Lori Page as Vice President of Global Marketing. Ms. Page brings over 20 years of experience in marketing, channel development, and brand execution, having worked with diverse education and business technology companies including Apple, Promethean, Cox Automotive and Eastman Kodak Company. Prior to joining Boxlight, Ms. Page served as Promethean’s vice president of North America marketing where she managed strategy and execution for the field and channel marketing team.

2017 Year End Financial Results Conference Call

Management will host a conference call to discuss the full year 2017 financial results today, Monday, April 2, 2018 at 4:30 p.m. Eastern Time. The conference call details are as follows:

     
Date: Monday, April 2, 2018
Time: 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time
Dial-in:

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Apr 2, 2018--1-877-407-9716 (Domestic)
1-201-493-6779 (International)

Conference ID: 13677834
Webcast:

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Apr 2, 2018--http://public.viavid.com/index.php?id=128858

 

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 April 2, 2018 through 11:59 p.m. Eastern Time on April 16, 2018 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13677834.

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 learning 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
       
December 31, December 31,
ASSETS 2017 2016
Current Asset:
Cash and cash equivalents $ 2,010,325 $ 456,502
Accounts receivable - trade, net of allowance 3,089,932 2,943,954
Inventories, net of reserve 4,626,569 4,164,116
Prepaid expenses and other current assets   388,006     447,036  
Total current Assets 10,114,832 8,011,608
 
Property and equipment, net of accumulated depreciation 29,752 60,040
Intangible assets, net of accumulated amortization 6,126,558 6,833,477
Goodwill 4,181,991 4,181,991
Other assets   292     33,262  
Total Assets $ 20,453,425   $ 19,120,378  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 2,994,918 $ 4,453,893
Accounts payable and accrued expenses - related parties 4,391,713 3,754,050
Short-term debt 752,449 2,791,582
Short-term debt - related parties 54,000 876,550
Convertible notes payable - related parties 50,000 50,000
Deferred revenues - short term 1,127,423 495,603
Other short-term liabilities   -     251,537  
Total current liabilities 9,370,503 12,673,215
 
Long term convertible note payable - related parties - 4,060,785
Deferred revenues - long term   175,294     272,123  
 
Total liabilities   9,545,797     17,006,123  
 
Commitments and contingencies
 
Stockholders’ equity:

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Apr 2, 2018--Preferred stock, $0.0001 par value, 50,000,000 shares authorized, 250,000 AND 1,270,000 shares issued and outstanding, respectively

25 127

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Apr 2, 2018--Common stock, $0.0001 par value, 200,000,000 shares authorized; 9,558,998 and 4,621,687 Class A shares issued and outstanding, respectively

956 461
Additional paid-in capital 23,740,751 7,615,732
Subscriptions receivable (325 ) (325 )
Accumulated deficit (12,785,931 ) (5,488,822 )
Other comprehensive loss   (47,848 )   (12,918 )
Total stockholders’ equity   10,907,628     2,114,255  
 
Total liabilities and stockholders’ equity $ 20,453,425   $ 19,120,378  
 
 

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Apr 2, 2018--*Financial information has been retrospectively adjusted for the acquisitions of Mimio and Genesis.

See accompanying notes to the financial statements.
 
 
Boxlight Corporation
Consolidated Statements of Operations and Comprehensive Loss
       
2017 2016
Revenues $ 25,743,612 $ 20,371,826
Cost of revenues   19,329,831     12,959,749  
Gross profit   6,413,781     7,412,077  
 
Operating expense:
General and administrative expenses 13,086,120 7,689,898
Research and development   465,940     1,008,433  
Total Operating expenses   13,552,060     8,698,331  
 
Loss from operations   (7,138,279 )   (1,286,254 )
 
Other income (expense):
Interest expense net (635,445 ) (818,234 )
Other income (expense), net 200,589 42,505
Gain on settlement of debt   276,026     -  
Total other income (expense)   (158,830 )   (775,729 )
 
Net loss   (7,297,109 )   (2,061,983 )
 
Comprehensive loss:
Net loss (7,297,109 ) (2,061,983 )
Other comprehensive loss:
Foreign currency translation loss   (34,930 )   (12,918 )
Total comprehensive loss $ (7,332,039 ) $ (2,074,901 )
 
Net loss per common share - basic and diluted $ (1.34 ) $ (0.48 )
Weighted average number of common shares outstanding - basic and diluted   5,455,161     4,299,315  
 
*Financial information has been retrospectively adjusted for the acquisitions of Mimio and Genesis.

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Apr 2, 2018--See accompanying notes to the financial statements.

 
 
Reconciliation of net loss for the year ended
to EBITDA
(in thousands)                
              2017 2016
Net income (loss) $ (7,297 ) $ (2,062 )
Depreciation and amortization 747 353
Interest expense   635     818  
EBITDA $ (5,915 ) $ (891 )
 
 
Reconciliation of net loss for the year ended
to Adjusted EBITDA
 
(in thousands)
              2017 2016
Net income (loss) $ (7,297 ) $ (2,062 )
Depreciation and amortization 747 353
Interest expense 635 818
Stock compensation expense 4,240 464
Non-recurring IPO expenses   -     528  
Adjusted EBITDA $ (1,675 ) $ 101  

View source version on businesswire.com:https://www.businesswire.com/news/home/20180402005748/en/

CONTACT: 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

KEYWORD: UNITED STATES NORTH AMERICA GEORGIA

INDUSTRY KEYWORD: EDUCATION PRIMARY/SECONDARY TECHNOLOGY SOFTWARE

SOURCE: Boxlight Corporation

Copyright Business Wire 2018.

PUB: 04/02/2018 04:05 PM/DISC: 04/02/2018 04:05 PM

http://www.businesswire.com/news/home/20180402005748/en

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