Boxlight Reports First Quarter 2018 Financial Results
LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--May 15, 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 first quarter ended March 31, 2018.
First Quarter 2018 Financial HighlightsRevenue 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.
“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.”
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:
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.
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Charlotte Andrist, +1-770-310-5244
Michael Pope, +1-360-464-4478
Addo Investor Relations
Laura Bainbridge, +1-310-829-5400
KEYWORD: UNITED STATES NORTH AMERICA GEORGIA
INDUSTRY KEYWORD: EDUCATION PRIMARY/SECONDARY TECHNOLOGY SOFTWARE MOBILE/WIRELESS
SOURCE: Boxlight Corporation
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PUB: 05/15/2018 04:47 PM/DISC: 05/15/2018 04:47 PM