BEIJING, April 22, 2020 /PRNewswire/ -- LightInTheBox
Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the "Company"),
a cross-border e-commerce platform that delivers products directly
to consumers around the world, today announced its unaudited
financial results for the fourth quarter ended December 31, 2019.
Fourth Quarter 2019 Highlights
- Total revenues regained significant growth momentum increasing
29.9% year-over-year to $74.7
million.
- Gross margin improved to 40.4% from 34.6% in the same quarter
of 2018.
- Net income was $12.5 million,
compared with a net loss of $24.4
million in the same quarter of 2018.
Mr. Jian He, Chief Executive
Officer of LightInTheBox, commented, "our results this quarter are
a strong reflection of the significant progress we have made since
we began implementing our strategy to turn the business around last
year. I am pleased to report that we are beginning to see the
tangible benefits of the changes we have been making to improve
operational efficiency, product optimization, and cost controls
which resulted in our second quarter of GAAP profitability since
2014. In particular, our focus on improving product optimization,
driving customer engagement and expanding our market scale have
been critical to the success we have seen so far. Net income was
$12.5 million, as compared to a loss
of $24.4 million during the same
period last year, which I believe demonstrates the growth
trajectory we are on. We remain focused on executing our strategy
to generate sustainable long-term growth and are very encouraged by
our improvements to date. We will continue to implement our
strategies in order to maintain the trend of improvement."
Fourth Quarter 2019 Financial Results
Total revenues increased by 29.9% year-over-year to
$74.7 million from $57.5 million in the same quarter of 2018.
Revenues generated from product sales were $71.7 million, compared with $55.4 million in the same quarter of 2018.
Revenues from service and others were $3.0
million, compared with $2.1
million in the same quarter of 2018.
The number of orders for product sales was 1.8 million in the
fourth quarter of 2019, compared with 1.3 million in the same
quarter of 2018. The number of customers for product sales was 1.2
million for the fourth quarter of 2019, compared with 1.0 million
in the same quarter of 2018.
Revenues generated from product sales in the apparel category
were $24.1 million in the fourth
quarter of 2019, compared with $20.3
million in the same quarter of 2018. As a percentage of
product sales, apparel revenues accounted for 33.5% in the fourth
quarter of 2019, compared with 36.6% in the same quarter of 2018.
Revenues generated from product sales from other general
merchandise were $47.6 million in the
fourth quarter of 2019.
Total cost of revenues was $44.5
million in the fourth quarter of 2019, compared with
$37.6 million in the same quarter of
2018. Cost for product sales was $43.9
million in the fourth quarter of 2019, compared with
$36.0 million in the same quarter of
2018. Cost for service and others was $0.6
million in the fourth quarter of 2019, compared with
$1.6 million in the same quarter of
2018.
Gross profit in the fourth quarter of 2019 was
$30.2 million, compared with
$19.9 million in the same quarter of
2018. Gross margin was 40.4% in the fourth quarter of 2019,
compared with 34.6% in the same quarter of 2018. The increase in
gross margin was a result of our continuous efforts to drive
revenues from categories with high margin.
Total operating expenses in the fourth quarter of 2019
were $34.5 million, compared with
$21.6 million in the same quarter of
2018.
- Fulfillment expenses in the fourth quarter of 2019 were
$8.0 million, compared with
$3.5 million in the same quarter of
2018. As a percentage of total revenues, fulfillment expenses were
10.7% in the fourth quarter of 2019, compared to 6.2% in the same
quarter of 2018 and 11.3% in the third quarter of 2019.
- Selling and marketing expenses in the fourth quarter of
2019 were $17.9 million, compared
with $11.9 million in the same
quarter of 2018. As a percentage of total revenues, selling and
marketing expenses were 23.9% for the fourth quarter of 2019,
compared to 20.5% in the same quarter of 2018 and 20.8% in the
third quarter of 2019.
- G&A expenses in the fourth quarter of 2019 were
$8.8 million, compared with
$6.2 million in the same quarter of
2018. As a percentage of total revenues, G&A expenses were
11.8% for the fourth quarter of 2019, compared with 10.8% in the
same quarter of 2018 and 10.8% in the third quarter of 2019.
Included in G&A expenses, R&D expenses in the fourth
quarter of 2019 were $4.6 million,
compared with $2.2 million in the
same quarter of 2018.
- Other operating income in the fourth quarter of 2019 was
$0.2 million.
Net income was $12.5
million in the fourth quarter of 2019, compared with a net
loss of $24.4 million in the same
quarter of 2018. The net income as a result of the change in fair
value of the convertible promissory notes associated with the
acquisition of Ezbuy in the fourth quarter of 2019 was $16.2 million.
Net income per American Depository Share ("ADS") was
$0.17 in the fourth quarter of 2019,
compared with net loss per ADS of $0.37 in the same quarter of 2018. Each ADS
represents two ordinary shares. The diluted net loss per ADS in the
fourth quarter of 2019 was $0.03,
compared with $0.37 in the same
quarter of 2018.
In the fourth quarter of 2019, the Company's basic weighted
average number of ADSs used in computing the income per ADS
was 73,248,717 and 111,831,054 in diluted
weighted average number.
Adjusted EBITDA[1], which represents gain /(loss)
from operations before share-based compensation expense, change in
fair value of convertible promissory notes, interest income,
interest expense, income tax expense and depreciation and
amortization expenses, remained stable at $2.6 million of loss in the fourth quarter
of 2019, compared with the same quarter of 2018.
[1]
|
For a discussion of
the use of non-GAAP financial measures, see "Non-GAAP Financial
Measures."
|
As of
December 31, 2019, the Company
had cash and cash equivalents and restricted cash of
$40.4 million, compared with
$29.7 million as of
September 30, 2019.
Full Year 2019 Financial Results
Total revenues increased by 7.1% year-over-year to
$243.6 million from $227.5 million in 2018. Revenues generated from
product sales were $236.7 million,
compared with $216.4 million in 2018.
Revenues from service and others were $6.9
million, compared with $11.1
million in 2018.
The number of orders for product sales was 5.6 million for the
full year of 2019, compared with 4.9 million in 2018. The number of
customers for product sales was 3.3 million for the full year of
2019, compared with 2.9 million in 2018.
Revenues generated from product sales in the apparel category
were $79.0 million for the full year
of 2019, compared with $73.4 million
in 2018. As a percentage of product sales, apparel revenues
accounted for 33.4 % for the full year of 2019, compared with 33.9%
in 2018. Revenues generated from product sales from other general
merchandise were $157.7 million for
the full year of 2019.
Total cost of revenues was $146.0
million for the full year of 2019, compared with
$166.3 million in 2018. Cost for
product sales was $144.0 million for
the full year of 2019, compared with $156.4
million in 2018. Cost for service and others was
$2.0 million for the full year of
2019, compared with $9.9 million in
2018.
Gross profit for the full year of 2019 was $97.6 million, compared with $61.2 million in 2018. Gross margin was 40.1% for
the full year of 2019, compared with 26.9% in 2018. The increase in
gross margin was a result of our continuous efforts to drive
revenues from categories with higher profitability.
Total operating expenses for the full year of 2019 were
$113.6 million, compared with
$98.7 million in 2018.
- Fulfillment expenses for the full year of 2019 were
$24.9 million, compared with
$15.1 million in 2018. As a
percentage of total revenues, fulfillment expenses were 10.2% for
the full year of 2019, compared to 6.6% in 2018.
- Selling and marketing expenses for the full year of 2019
were $51.1 million, compared with
$50.6 million in 2018. As a
percentage of total revenues, selling and marketing expenses were
21.0% for the full year of 2019, compared to 22.2% in 2018.
- G&A expenses for the full year of 2019 were
$37.8 million, compared with
$33.0 million in 2018. As a
percentage of total revenues, G&A expenses were 15.5% for the
full year of 2019, compared with 14.5% in 2018. Included in G&A
expenses, R&D expenses for the full year of 2019 were
$17.9 million, compared with
$10.6 million in the same quarter of
2018.
- Other operating income for the full year of 2019 was
$0.2 million.
Loss from operations was $16.1
million for the full year of 2019, compared with
$37.5 million in 2018.
Net income was $1.1 million
for the full year of 2019, compared with a net loss of $59.6 million in 2018. The net income as a result
of the change in fair value of the convertible promissory notes
associated with the acquisition of Ezbuy for the full year of 2019
was $14.6 million.
Net income per American Depository Share ("ADS") was
$0.01 for the full year of 2019,
compared with net loss per ADS of $0.89 in 2018. Each ADS represents two ordinary
shares. The diluted net loss per ADS for the full year of 2019 was
$0.12, compared with $0.89 in 2018.
For the full year of 2019, the Company's basic weighted average
number of ADSs used in computing the income per ADS was 68,794,200,
and 111,758,916 in diluted weighted average number.
Adjusted EBITDA, which represents gain /(loss) from
operations before share-based compensation expense, change in fair
value of convertible promissory notes, interest income, interest
expense, income tax expense and depreciation and amortization
expenses, was $9.1 million of loss
for the full year of 2019, compared with $36.3 million of loss in 2018.
Business Outlook
For the first quarter of 2020, based on current information
available to the Company and business seasonality, the Company
expects net revenues to be between $53
million and $57 million.
Change in Fair Value of Convertible Promissory Notes
Associated with the Acquisition of Ezbuy
The Company entered into a share purchase agreement ("SPA") on
November 8, 2018 to acquire Ezbuy in
the form of non-interest bearing one-year convertible promissory
notes. This SPA took effect on December 10,
2018 when LITB's closing stock price was $0.64. LITB's closing stock price on December 31, 2018 and December 11, 2019 was $1.22 and $0.84,
respectively. The Company adopted Monte-Carlo Simulation based on a
scenario-weighted average method to estimate the fair value of the
convertible promissory notes. The estimate is based on the
probability of each scenario and pay-off of the convertible
promissory notes under each scenario. The scenarios include
different timing and corresponding conversion price of the
convertible promissory notes. The key assumptions adopted in the
convertible promissory notes valuation include risk-free rate of
interest and expected stock price volatility in the conversion
period. The Company recorded a non-cash net income arising from
change in fair value of the convertible promissory notes of
$16.2 million in the fourth quarter
of 2019. The Company recorded a non-cash net income arising from
change in fair value of the convertible promissory notes of
$14.6 million for the full year of
2019.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with U.S. GAAP, we use the
following non-GAAP financial measures to help evaluate our
operating performance:
"Adjusted EBITDA" represents gain /(loss) from operations before
share-based compensation expense, change in fair value of
convertible promissory notes, interest income, interest expense,
income tax expense and depreciation and amortization expenses.
Although other companies may calculate adjusted EBITDA differently
or not present it at all, we believe that the adjusted EBITDA helps
to identify underlying trends in our operating results, enhancing
investors' understanding of the past performance and future
prospects.
Recent Development
The Company received a letter from the New York Stock Exchange
("NYSE"), indicating that the Company is "below criteria" due to
the average closing price of the Company's ADSs being less than
$1.00 over a consecutive
30-trading-day period pursuant to Section 802.01C of the NYSE
Listed Company Manual.
The Company can regain compliance at any time during the
six-month cure period if on the last trading day of any calendar
month during the cure period the Company has a closing share price
of at least $1.00 and an average
closing share price of at least $1.00
over the 30 trading-day period ending on the last trading day of
that month. In the event that at the expiration of the six-month
cure period, both a $1.00 closing
share price on the last trading day of the cure period and a
$1.00 average closing share price
over the 30 trading-day period ending on the last trading day of
the cure period are not attained, the NYSE will commence suspension
and delisting procedures.
The Company notified the NYSE on March
30, 2020 of its intent to cure the deficiency. The Company's
ADSs will continue to be listed and traded on the NYSE, subject to
compliance with other NYSE continued listing standards and other
rights of the NYSE to delist the ADSs. The Company is currently in
compliance with all other NYSE continued listing standards. The
NYSE notification does not affect the Company's business operations
or its Securities and Exchange Commission reporting
requirements.
Conference Call
The Company will host an earnings conference call at
8:00 a.m. Eastern Time on Thursday,
April 23, 2020 (8:00 p.m.
Beijing time on the same day).
Dial-in details will be released via press release shortly.
About LightInTheBox Holding Co., Ltd.
LightInTheBox is a cross-border e-commerce platform that
delivers products directly to consumers around the world. The
Company offers customers a convenient way to shop for a wide
selection of products at attractive prices through its
www.lightinthebox.com, www.miniinthebox.com, www.ezbuy.com and
other websites and mobile applications, which are available in 23
major languages and cover more than 140 countries.
For more information, please visit www.lightinthebox.com.
Investor Relations Contact
Christensen
Ms. Xiaoyan Su
Tel: +86 (10) 5900 3429
Email: ir@lightinthebox.com
OR
Christensen
Ms. Linda Bergkamp
Tel: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
Forward-Looking Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets" and similar statements. Among other things,
statements that are not historical facts, including statements
about LightInTheBox's beliefs and expectations, the business
outlook and quotations from management in this announcement, as
well as LightInTheBox's strategic and operational plans, are or
contain forward-looking statements.
LightInTheBox may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission (the "SEC"), in press releases and other
written materials and in oral statements made by its officers,
directors or employees to fourth parties. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward- looking statement, including but not
limited to the following: LightInTheBox's goals and strategies;
LightInTheBox's future business development, results of operations
and financial condition; the expected growth of the global online
retail market; LightInTheBox's ability to attract customers and
further enhance customer experience and product offerings;
LightInTheBox's ability to strengthen its supply chain efficiency
and optimize its logistics network; LightInTheBox's expectations
regarding demand for and market acceptance of its products;
competition; fluctuations in general economic and business
conditions and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in LightInTheBox's filings with the SEC. All information
provided in this press release and in the attachments is as of the
date of this press release, and LightInTheBox does not undertake
any obligation to update any forward-looking statement, except as
required under applicable law.
LightInTheBox
Holding Co., Ltd.
|
Unaudited
Condensed Consolidated Balance Sheets
|
(U.S. dollars in
thousands, or otherwise noted)
|
|
|
|
|
|
|
|
As of December 31,
|
|
As of December 31,
|
|
|
2018
|
|
2019
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
38,808
|
|
37,736
|
Restricted
cash
|
|
994
|
|
2,709
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
1,463
|
|
1,356
|
Amounts due from
related parties
|
|
-
|
|
4,600
|
Inventories
|
|
8,481
|
|
7,357
|
Prepaid expenses and
other current assets
|
|
5,811
|
|
3,619
|
Total current
assets
|
|
55,557
|
|
57,377
|
Property and
equipment, net
|
|
3,652
|
|
3,502
|
Intangible assets,
net
|
|
9,890
|
|
8,516
|
Goodwill
|
|
28,169
|
|
27,922
|
Operating lease
right-of-use assets
|
|
-
|
|
12,233
|
Long-term rental
deposits
|
|
1,131
|
|
778
|
Long-term
investments
|
|
5,188
|
|
2,873
|
TOTAL
ASSETS
|
|
103,587
|
|
113,201
|
|
|
|
|
|
LIABILITIES AND
(DEFICIT)/EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
12,941
|
|
17,643
|
Amounts due to
related parties
|
|
4,953
|
|
186
|
Convertible
promissory notes
|
|
51,922
|
|
-
|
Advance from
customers
|
|
17,732
|
|
21,731
|
Operating lease
liabilities
|
|
-
|
|
3,470
|
Accrued expenses and
other current liabilities
|
|
22,688
|
|
28,642
|
Total current
liabilities
|
|
110,236
|
|
71,672
|
|
|
|
|
|
Operating lease
liabilities
|
|
-
|
|
8,801
|
Long-term
payable
|
|
1,156
|
|
847
|
TOTAL
LIABILITIES
|
|
111,392
|
|
81,320
|
|
|
|
|
|
(DEFICIT)/EQUITY
|
|
|
|
|
Ordinary
shares
|
|
11
|
|
14
|
Additional paid-in
capital
|
|
239,269
|
|
262,888
|
Forward
contracts
|
|
-
|
|
15,769
|
Treasury shares, at
cost
|
|
(27,261)
|
|
(27,512)
|
Accumulated other
comprehensive loss
|
|
(932)
|
|
(1,444)
|
Accumulated
deficit
|
|
(218,887)
|
|
(217,888)
|
Non-controlling
interests
|
|
(5)
|
|
54
|
TOTAL
(DEFICIT)/EQUITY
|
|
(7,805)
|
|
31,881
|
TOTAL LIABILITIES AND
(DEFICIT)/EQUITY
|
|
103,587
|
|
113,201
|
LightInTheBox
Holding Co., Ltd.
|
Unaudited
Condensed Consolidated Statements of Operations
|
(U.S. dollars in
thousands, except per share data, or otherwise
noted)
|
|
|
|
|
|
|
|
|
|
|
|
Three-month Period Ended
|
|
Twelve-month Period Ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
2018
|
|
2019
|
2018
|
|
2019
|
Revenues
|
|
|
|
|
|
|
|
|
Product
sales
|
|
55,465
|
|
71,666
|
|
216,407
|
|
236,705
|
Services
and others
|
|
2,074
|
|
3,054
|
|
11,132
|
|
6,921
|
Total
revenues
|
|
57,539
|
|
74,720
|
|
227,539
|
|
243,626
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Product
sales
|
|
(35,940)
|
|
(43,868)
|
|
(156,326)
|
|
(144,061)
|
Services
and others
|
|
(1,687)
|
|
(655)
|
|
(10,017)
|
|
(1,968)
|
Total Cost of
revenues
|
|
(37,627)
|
|
(44,523)
|
|
(166,343)
|
|
(146,029)
|
Gross
profit
|
|
19,912
|
|
30,197
|
|
61,196
|
|
97,597
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Fulfillment
|
|
(3,547)
|
|
(7,966)
|
|
(15,127)
|
|
(24,900)
|
Selling
and marketing
|
|
(11,796)
|
|
(17,879)
|
|
(50,508)
|
|
(51,111)
|
General
and administrative
|
|
(6,245)
|
|
(8,854)
|
|
(33,042)
|
|
(37,811)
|
Other
operating income
|
|
|
|
173
|
|
|
|
173
|
Total operating
expenses
|
|
(21,588)
|
|
(34,526)
|
|
(98,677)
|
|
(113,649)
|
Loss from
operations
|
|
(1,676)
|
|
(4,329)
|
|
(37,481)
|
|
(16,052)
|
Exchange loss on
offshore bank accounts
|
|
23
|
|
0
|
|
0
|
|
0
|
Interest
income
|
|
55
|
|
51
|
|
487
|
|
297
|
Interest
expense
|
|
(5)
|
|
(15)
|
|
(5)
|
|
(66)
|
Change in fair value
of convertible promissory notes
|
|
(22,791)
|
|
16,186
|
|
(22,791)
|
|
14,591
|
Other
Income,net
|
|
|
|
283
|
|
|
|
283
|
Total other income /
(loss)
|
|
(22,718)
|
|
16,505
|
|
(22,309)
|
|
15,105
|
(Loss) / income
before income taxes and gain/(loss) from an equity method
investment
|
|
(24,394)
|
|
12,176
|
|
(59,790)
|
|
(947)
|
Income tax
(expense)/benefit
|
|
(27)
|
|
326
|
|
(33)
|
|
(113)
|
Gain/(loss) from an
equity method investment
|
|
24
|
|
(18)
|
|
221
|
|
2,118
|
Net ( loss) /
income
|
|
(24,397)
|
|
12,484
|
|
(59,602)
|
|
1,058
|
Net ( loss) / income
attributable to non-controlling interests
|
|
(1)
|
|
93
|
|
(1)
|
|
59
|
Net ( loss) /
income attributable to LightInTheBox Holding Co., Ltd.
|
|
(24,396)
|
|
12,391
|
|
(59,601)
|
|
999
|
|
|
|
|
|
|
|
|
|
Weighted average
numbers of shares used in calculating loss per ordinary
share
|
|
|
|
|
|
|
|
|
—Basic
|
|
133,385,624
|
|
146,497,433
|
|
134,495,549
|
|
137,588,401
|
—Diluted
|
|
133,385,624
|
|
223,662,107
|
|
134,495,549
|
|
223,517,833
|
|
|
|
|
|
|
|
|
|
Net ( loss) /
income per ordinary share
|
|
|
|
|
|
|
|
|
—Basic
|
|
(0.18)
|
|
0.08
|
|
(0.44)
|
|
0.01
|
—Diluted
|
|
(0.18)
|
|
(0.02)
|
|
(0.44)
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
Net ( loss) /
income per ADS (2 ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
—Basic
|
|
(0.37)
|
|
0.17
|
|
(0.89)
|
|
0.01
|
—Diluted
|
|
(0.37)
|
|
(0.03)
|
|
(0.89)
|
|
(0.12)
|
LightInTheBox
Holding Co., Ltd.
|
|
Unaudited
Reconciliations of GAAP and Non-GAAP Results
|
|
(U.S. dollars in
thousands, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month Period Ended
|
|
Twelve-month Period Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2019
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(24,397)
|
|
12,484
|
|
(59,602)
|
|
1,058
|
|
|
|
|
|
|
|
|
|
|
|
Less: Interest
income
|
|
55
|
|
51
|
|
487
|
|
297
|
|
Interest expense
|
|
(5)
|
|
(15)
|
|
(5)
|
|
(66)
|
|
Income tax (benefit)/expense
|
|
(27)
|
|
326
|
|
(33)
|
|
(113)
|
|
Depreciation and amortization
|
|
(141)
|
|
(658)
|
|
(579)
|
|
(2,518)
|
|
EBITDA
|
|
(24,279)
|
|
12,780
|
|
(59,472)
|
|
3,458
|
|
|
|
|
|
|
|
|
|
|
|
Less: Share-based
compensation
|
|
1,147
|
|
(799)
|
|
(404)
|
|
(2,060)
|
|
Change in
fair value of convertible promissory notes
|
|
(22,791)
|
|
16,186
|
|
(22,791)
|
|
14,591
|
|
Adjusted
EBITDA*
|
|
(2,635)
|
|
(2,607)
|
|
(36,277)
|
|
(9,073)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Adjusted EBITDA
represents gain /(loss) from operations before share-based
compensation expense, change in fair value of convertible
promissory notes, interest income, interest expense, income tax
expense and depreciation and amortization expenses.
|
View original
content:http://www.prnewswire.com/news-releases/lightinthebox-reports-fourth-quarter-2019-financial-results-301045592.html
SOURCE LightInTheBox Holding Co., Ltd.