Boxlight Reports Fourth Quarter and Full Year 2018 Results

Q4 Revenue Increase of 125% Year-Over-Year to $12.0 Million
2018 Revenue Increase of 47% Year-Over-Year to $37.8 Million
Expects 2019 Revenue Growth Greater Than 25%
Targets 25-30% Gross Profit for 2019

 

Lawrenceville, GA, March 14, 2019 – Boxlight Corporation (Nasdaq: BOXL) (“Boxlight”), a leading provider of interactive technology solutions for the global education market, today announced the Company’s financial results for the fourth quarter and year ended December 31, 2018.
Key Financial Highlights for Q4 2018:
• Revenues increased by 125% to $12.0 million; greater than the previously projected $11 million
• Gross profit improved to 25.2%
• Operating loss decreased by 81% to $1.1 million
Key Financial Highlights for Full Year 2018:
• Revenues increased by 47% to $37.8 million
• Gross profit of 22.9% was impacted by lower product margins on interactive panels on two large projects in Beaufort, South Carolina and Clayton County, Georgia
Key Business Highlights for Q4 and Full Year 2018:
• California’s Huntington Beach City School District will be adding 60 MimioSpace collaborative systems to its classrooms to support its expanding technology initiative
• Acquired EOS Education, a consulting and professional development company for the K-12 education market
• Connellsville Area School District, a large, rural school district south of Pittsburgh, replaced existing projectors with interactive flat panels from Boxlight, providing its 4,400 students with tools that will help them thrive in a 21st Century learning environment
• South Carolina’s Beaufort County School District announced plans to partner with Boxlight in outfitting classrooms with the latest interactive education technologies; adding 1,750
Interactive Flat Panels Based on Boxlight’s Affordability, Ease of Use, and Simple Integration of Existing Lessons
Subsequent to the end of 2018, the Company signed an agreement for a $4 million investment from The Lind Partners in the form of a convertible note with a 24-month maturity and a fixed conversion price of $4.00 per share. The investment proceeds will enable the Company to execute its aggressive growth strategy and is expected to bridge operations to positive cash flow. Specific working capital initiatives include increasing inventory levels in the U.S. and Europe and completing the market launch of several new products including our Mimio MyBot coding and robotics solution.
2019 Outlook:
Based on our current business pipeline, backlog and contracts, we expect 2019 revenue to increase by at least 25% over 2018. Additionally, we are targeting gross margins in the 25-30% range for 2019, as we expect higher margin hardware, software and professional services to contribute more significantly to revenue. We believe cross-sell opportunities exist to expand our penetration and offerings within our existing customers.
Management Commentary
“We had an extremely eventful and productive 2018, particularly in the fourth quarter,” commented, Mark Elliott, Boxlight’s Chief Executive Officer. “We achieved record revenue for the fourth quarter and full year 2018. Our strong momentum continued after the important back-to-school season and through the fourth quarter, driving our growth to a company historic quarterly record of $12.0 million for the fourth quarter. We’ve successfully grown our sales pipeline across the U.S. and in key international markets including Europe and Latin America, which has resulted in the largest sales pipeline in our history.”
Mr. Elliott concluded, “We see a significant opportunity to continue our growth trajectory well into the future through product introductions, growth in our re-seller network and strategic acquisitions. It is an exciting time at Boxlight with our mission to improve learning and engagement in classrooms, and to help educators enhance student outcomes. I want to thank our dedicated employees, our trusted customers and our supportive partners. While 2018 was a huge success, we know this is just the beginning. There is much work to do in delivering our best-in-class and award-winning interactive technology solutions for the global education market, and continuing to build shareholder value.”
Financial Results for the Three Months Ended December 31, 2018:
Revenue for the three months ended December 31, 2018 was $12.0 million, an increase of $6.6 million or 125%, compared to $5.3 million for the three months ended December 31, 2017. Revenue growth reflects increased sales volume driven by greater adoption of Boxlight’s product solution suite.
Gross profit for the three months ended December 31, 2018 was $3.0 million, an increase of $2.4 million, compared to $0.6 million for the three months ended December 31, 2017. The resulting gross margin was 25.2% for the three months ended December 31, 2018, compared to 11.3% for the three months ended December 31, 2017.
General and Administrative expenses for the three months ended December 31, 2018 was $3.8 million, a decrease of $2.3 million or 38%, compared to $6.1 million for the three months ended December 31, 2017.
Research and development expenses for the three months ended December 31, 2018 was $0.3 million, an increase of $0.2 million or 181%, compared to $0.1 million for the three months ended December 31, 2017.
Operating loss for the three months ended December 31, 2018 was $1.1 million, a decrease of $4.5 million, or 81%, compared to $5.6 million for the three months ended December 31, 2017.
Adjusted EBITDA loss for the three months ended December 31, 2018 was $1.0 million, a decrease of $0.2 million or 18% compared to $1.2 million for the three months ended December 31, 2017.
Net loss for the three months ended December 31, 2018 was $0.6 million, a decrease of $4.0 million, or 87%, compared to $4.6 million for the three months ended December 31, 2017. The resulting EPS loss for the three months ended December 31, 2018 was $(0.06) per diluted share, compared to $(0.66) per diluted share for the three months ended December 31, 2017.
At December 31, 2018, Boxlight had $0.9 million of cash, $21.3 million of total assets, $3.0 debt, and 10.2 million shares issued and outstanding.
Financial Results for the Year Ended December 31, 2018:
Revenue for the year ended December 31, 2018 was $37.8 million, an increase of $12.0 million or 47%, compared to $25.7 million for the year ended December 31, 2017.
Gross profit for the year ended December 31, 2018 was $8.6 million, an increase of $2.2 million, compared to $6.4 million for the year ended December 31, 2017. The resulting gross margin was 22.9% for the year ended December 31, 2018, compared to 24.9% for the year ended December 31, 2017. The year-over-year decline in gross margin was primarily due to a larger concentration of interactive flat panel sales with lower product margins during 2018 including two large projects in Beaufort County, South Carolina and Clayton County, Georgia.
General and Administrative expenses for the year ended December 31, 2018 were $15.0 million, an increase of $1.8 million or 14%, compared to $13.2 million for the year ended December 31, 2017.
Research and development expenses for the year ended December 31, 2018 were $0.7 million, an increase of $0.2 million or 44%, compared to $0.5 million for the year ended December 31, 2017.
Operating loss for the year ended December 31, 2018 was $7.0 million, a slight decrease compared to $7.2 million for the year ended December 31, 2017.
Adjusted EBITDA loss for the year ended December 31, 2018 was $3.9 million, an increase of $2.2 million, or 132%, compared to $1.7 million for the year ended December 31, 2017.
Net loss for the year ended December 31, 2018 was $7.2 million, an increase of $0.6 million, or 10%, compared to $6.5 million for the year ended December 31, 2017. The resulting EPS loss for the year ended December 31, 2018 was $(0.72) per diluted share, compared to $(1.20) per diluted share for the year ended December 31, 2017.
Fourth Quarter 2018 Financial Results Conference Call
Management will host a conference call to discuss the fourth quarter 2018 financial results today, Thursday, March 28, 2019 at 4:30 p.m. Eastern Time. The conference call details are as follows:
Date: Thursday, March 28, 2019
Time: 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time
Dial-in: 1-877-407-9124 (Domestic)
1-201-689-8584 (International)
Webcast: https://www.investornetwork.com/event/presentation/45569M
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 March 28, 2019 through 11:59 p.m. Eastern Time on June 28, 2019 by dialing 1-877-481-4010 (domestic) and 1-919-882-2331 (international) and referencing the replay pin number: 45569.
Use of Non-GAAP Financial Measures
To supplement Boxlight’s financial statements presented on a GAAP basis, Boxlight provides EBITDA, Adjusted EBITDA, and Adjusted EPS 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) is a leading provider of interactive technology solutions under its award-winning brands Clevertouch®, FrontRow™ and Mimio®. The Company aims to improve engagement and communication in diverse business and education environments. Boxlight develops, sells and services its integrated solution suite including interactive displays, collaboration software, audio solutions, supporting accessories, and professional services. For more information about Boxlight and the Boxlight story, visit http://www.boxlight.com and http://www.clevertouch.com and https://www.gofrontrow.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 because 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.

 

 

Contacts
Media
Sunshine Nance – VP Global Marketing & Communications
+1 360-464-2119 x254
[email protected]
Investor Relations
Greg Wiggins
+1 360-464-4478
[email protected]
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