Reaffirms Guidance for 2019 Revenue Growth of
25% to $47 Million
Gross Profit Improved to 31.6%
Adequately Capitalized to Execute on 2019
Plans
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 first quarter ended March 31, 2019.
Key Business Highlights for Q1 2019:
- Revenue of $5 million and Gross Profit
of 31.6%
- Strongest pipeline in Company
history
- Closed $4 million investment from The
Lind Partners
- Acquired Modern Robotics, to expand
proprietary STEM solutions to programming and robotics
- Selected by Colorado’s Cooperative
Educational Purchasing Council as Preferred Provider for classroom
audio visual solutions
- Awarded by Michigan’s REMC Association
as Provider for classroom technology solutions
- Selected by Charter School for Applied
Technologies to outfit classrooms with interactive teaching
technologies
- Selected as official vendor to appear
on Federal Purchasing Contracts for all education institutions in
Puerto Rico, Peru and Chile
- New solution launches of Boxlight NDMS
(Network Device Management System), MimioStudio12, MimioInteract,
Mimio MyBot, Mimio MicroCloud, Unplug'd and On-Demand Educator
Certifications
2019 Outlook:
The current business pipeline, backlog and awarded contracts
support our guidance of 25% organic revenue growth for 2019 to $47
million. The first quarter of each year is our slowest sales
quarter and often unpredictable. However, we are optimistic as we
enter the buying season of Q2 and Q3 with our sales managers and
channel partners reporting more sales activity than in our history,
fueled by a strong replacement market and the acceptance of our
total solution approach. Additionally, we are seeing an increase in
our gross profit margins and are targeting a range of 25-30% for
2019, as we continue to enhance our product suite with higher
margin hardware, software and professional services. We continue to
see gross margins greater than 50% from our professional services
division, which is targeted to contribute as much as 10% of total
revenue by 2020. Furthermore, cross-sell opportunities exist to
expand penetration of our offerings within our existing customers,
and we are receiving significant interest in several of our new
solutions including Mimio MyBot, Boxlight NDMS (Network Device
Management System), Boxlight Unplug’d screen casting software and
suite of professional services offerings. Given our recent $4
million investment from The Lind Partners, we are adequately
capitalized to deliver on sales orders and to execute on our 2019
growth strategy, and the investment funds are expected to bridge
our operations to positive cash flow.
Management Commentary
“We are set up for a very favorable 2019 and beyond as the K-12
classroom continues to evolve with interactive learning
technologies, and our products and services are at the forefront of
this technology transition,” commented, Mark Elliott, Boxlight’s
Chief Executive Officer. “Our team has done a tremendous job in
developing an innovative hardware, software and service solution
that educators need to improve engagement and learning in the
classroom. This is reflected in the large number of successful
implementations we have deployed and our tremendous sales pipeline
across the U.S. and key international markets including EMEA and
Latin America. We are targeting a record number of prospective
sales opportunities and given our high success rate, we feel
extremely confident in our year-over-year growth prospects. Over
the past three years, we have grown our annual revenues from $20
million to $26 million to $38 million and believe we are now better
positioned for growth than at any other time in our history. Our
re-seller partner network is as strong and loyal as ever. This
coupled with our seasoned management team, strong sales force and
continued product development, enables us to deliver our
best-in-class and award-winning interactive technology solutions to
the education market globally.”
Global Expansion and Customer Reference Contracts
Boxlight whole-class learning solutions are in 60 countries,
supported in 32 languages and installed in 850,000+ classrooms.
Boxlight solutions encompass whole class learning, collaborative
learning, assessment and STEM solutions. The Company has 500+
global reseller partners that assist in identifying, positioning
and winning education contracts.
Significant contracts include:
- Atlanta Public Schools, Georgia
- Beaufort County, South Carolina
- Clayton County, Georgia
Acquisition of Modern Robotics
On March 14, Boxlight closed the acquisition of Modern Robotics
for consideration consisting of (i) $70,000 in the form of a
promissory note and (ii) Two Hundred Thousand (200,000) shares of
Boxlight Class A Common Stock.
Modern Robotics are the developers of MyBot, a powerful and
innovative K-12 ecosystem and robotics program that helps students
from pre-school to high school develop skills and a passion for
programming and robotics. Through the cohesive software platform
and innovative robots, educators receive an out-of-the-box
solution, complete with a robust curriculum, STEM lessons,
tutorials and videos.
The Company is excited to expand its offerings in the red-hot
field of STEM and robotics learning. MyBot was conceived and
developed to fulfill a need in robotics and coding in the
classroom. By bringing these cutting-edge teaching tools to
educators, we help them engage today’s students in meaningful
learning experiences that will create graduates who are workplace
ready in emerging STEM fields including software, robotics and
technology.
Over the next 12 months, it’s expected that Boxlight will
generate over $2 million in robotics and programming revenues with
gross profit margins greater than 50%. The acquisition also brings
significant management talent to Boxlight by adding Stephen Barker
as Vice President, STEM Education. Barker has more than 30 years of
extensive experience in robotics and technology innovation,
including developing sensors and components for Lego Robotics, and
brings an incredible wealth of brain trust to Boxlight’s growing
STEM offerings.
Financial Results for the Three Months Ended March 31,
2019:
Revenue for the three months ended March 31, 2019 was $5.0
million, a decrease of $1.0 million or 16%, compared to $6.0
million for the three months ended March 31, 2018. The first
quarter is historically our slowest sales quarter and often
unpredictable. The decrease is primarily attributable to the fact
that in the first quarter of 2018, the Company fulfilled some large
projects while in 2019, certain projects were delayed.
Gross profit for the three months ended March 31, 2019 was $1.6
million, an increase of $0.1 million, compared to $1.5 million for
the three months ended March 31, 2018. The resulting gross margin
was 31.6% for the three months ended March 31, 2019, compared to
24.7% for the three months ended March 31, 2018.
General and administrative expenses for the three months ended
March 31, 2019 was $3.8 million, an increase of $0.6 million or
18%, compared to $3.2 million for the three months ended March 31,
2018. The increase resulted from an increase in salaries primarily
as a result of new acquisitions in 2018.
Research and development expenses for the three months ended
March 31, 2019 was $0.2 million, an increase of $0.1 million or
155%, compared to $0.1 million for the three months ended March 31,
2018. Research and development expenses primarily consist of costs
associated with the development of proprietary technology. The
increase was due primarily to research and development contractors
and salary expense.
Other income or expense for the three months ended March 31,
2019 was an expense of $2.3 million, as compared to income of $0.9
million for the three months ended March 31, 2018. The increase in
other expense was mainly non-cash and related to the change in fair
value of derivative liabilities.
Operating loss for the three months ended March 31, 2019 was
$2.4 million, an increase of $0.6 million, or 34%, compared to $1.8
million for the three months ended March 31, 2018.
Adjusted EBITDA loss for the three months ended March 31, 2019
was $1.8 million, an increase of $0.7 million or 70% compared to
$1.1 million for the three months ended March 31, 2018.
Net loss for the three months ended March 31, 2019 was $4.7
million, an increase of $3.8 million, or 418%, compared to $0.9
million for the three months ended March 31, 2018. The resulting
EPS loss for the three months ended March 31, 2019 was $(0.46) per
diluted share, compared to $(0.09) per diluted share for the three
months ended March 31, 2018. The increase in the net loss was
primarily due to salary, research and development and change in
fair value of derivative liabilities.
At March 31, 2019, Boxlight had $2.7 million of cash, $20.7
million of total assets, $3.7 debt, and 10.6 million shares issued
and outstanding.
First Quarter 2019 Financial Results Conference Call
Management will host a conference call to discuss the first
quarter 2019 financial results on Thursday, May 16, 2019 at 9:00
a.m. Eastern Time. The conference call details are as follows:
Date: Thursday, May 9,
2019
Time: 9:00 a.m. Eastern Time / 6:00 a.m. Pacific Time
Dial-in: 1-877-407-9124 (Domestic)
1-201-689-8584 (International)
Webcast:
https://www.investornetwork.com/event/presentation/48537
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 16, 2019 through 11:59 p.m. Eastern Time on August 16,
2019 by dialing 1-877-481-4010 (domestic) and 1-919-882-2331
(international) and referencing the replay pin number: 48537.
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 expense,
depreciation and amortization. Adjusted EBITDA represents EBITDA
plus stock-based compensation and change in fair value of
derivative liabilities. 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
2019 2018 ASSETS Current asset:
Cash and cash equivalents $ 2,717,623 $ 901,459 Accounts
receivable-trade, net of allowances 2,269,730 3,634,726
Inventories, net of reserves 3,520,022 4,214,316 Prepaid expenses
and other current assets 942,023 1,214,157
Total current assets 9,449,398
9,964,658 Property and equipment, net of accumulated
depreciation 216,031 226,409 Intangible assets, net of accumulated
amortization 6,292,406 6,352,273 Goodwill 4,723,549 4,723,549 Other
assets 302 298
Total Assets
$ 20,681,686 $ 21,267,187
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable and accrued expenses $
2,520,991 $ 1,883,626 Accounts payable and accrued expenses -
related parties 5,966,673 6,009,112 Warranty 565,684 580,236
Short-term debt 1,602,185 2,306,227 Short-term debt - related
parties 446,231 377,333 Current portion of earn-out payable -
related party 300,923 136,667 Deferred revenues - short-term
440,092 938,050 Derivative liabilities 2,531,532 326,452 Other
short-term liabilities 19,319 5,128
Total current liabilities 14,393,630
12,562,831 Deferred revenues - long-term 105,416
134,964 Earn-out payable - related party 109,077 273,333 Long-term
debt - related party 273,333 328,000 Long-term debt
1,344,446 -
Total liabilities
16,225,902 13,299,128 Commitments and
contingencies
Stockholders's 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; 10,588,118 and 10,176,433 Class A
shares issued and outstanding, respectively 1,059 1,018 Additional
paid-in capital 28,492,785 27,279,931 Subscriptions receivable (225
) (225 ) Accumulated deficit (23,893,294 ) (19,206,271 ) Other
comprehensive loss (144,566 ) (106,419 )
Total
stockholders' equity 4,455,784 7,968,059
Total liabilities and stockholders' equity $
20,681,686 $ 21,267,187
Boxlight Corporation
Consolidated Statement of Operations
Three Months Ended March 31,
2019 2018 Revenues
$ 5,012,713 $ 5,996,685 Cost of Revenues 3,428,173
4,515,713
Gross Profit 1,584,540
1,480,972 Operating Expense: General and
administrative expenses 3,760,112 3,194,013 Research and
development expenses 235,996 92,505
Total operating expense 3,996,108
3,286,518 Loss from operations
(2,411,568 ) (1,805,546 )
Other income(expense): Interest expense, net (280,603 )
(146,928 ) Other income (expense), net 21,209 (13,461 ) Gain on
settlement of liabilities, net 146,434 25,738 Change in fair value
of derivative liabilities (2,162,495 ) 1,035,159
Total other income (expense) (2,275,455
) 900,508 Net Loss
$ (4,687,023 ) $ (905,038
) Comprehensive loss: Net Loss $ (4,687,023 )
$ (905,038 ) Other comprehensive income (loss): Foreign currency
translation gain (loss) (38,147 ) 4,863
Total comprehensive loss $ (4,725,170 )
$ (900,175 ) Net loss per common share
- basic (0.46 ) (0.09 ) Net loss per common share - diluted (0.46 )
(0.09 ) Weighted average number of common shares outstanding
- basic 10,255,808 9,617,234 Weighted average number of common
shares outstanding - diluted 10,255,808 9,617,234
Boxlight
Corporation Reconciliation of Net Loss to EBITDA
Three Months Ended March 31, 2019
2018 Net Loss $ (4,687 ) $ (905 ) Depreciation
and amortization 242 188 Interest expense 281
147
EBITDA $ (4,164 ) $
(570 ) Boxlight Corporation
Reconciliation of Net Loss to Adjusted EBITDA
Three Months Ended March 31, 2019
2018 Net Loss $ (4,687 ) $ (905 ) Depreciation and
amortization 242 188 Interest expense 281 147 Stock compensation
expense 161 521 Change in fair value of derivative liabilities
2,162 (1,035 )
Adjusted EBITDA $
(1,841 ) $ (1,084 )
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version on businesswire.com: https://www.businesswire.com/news/home/20190516005220/en/
MediaCharlotte AndristNickel Communications+1
770-310-5244charlotte@nickelcommpr.com
Investor RelationsMichael Pope, Boxlight Corporation+1
360-464-4478michael.pope@boxlight.com
Hayden IR+1 917-658-7878BOXL@HaydenIR.com
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