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Tuesday October 22nd, 2019 1:09PM

Boxlight Reports Second Quarter 2019 Results

By The Associated Press

LAWRENCEVILLE, Ga.--(BUSINESS WIRE)--Aug 13, 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 second quarter ended June 30, 2019.

The current project roll-out implementation schedule, business pipeline, backlog and awarded contracts support our guidance of at least 25% revenue growth and approximately 30% gross profit margin for the second half of 2019. We expect the increase in gross profit margin over 2018 as higher margin hardware, software and professional services contribute more significantly to revenue. We are adequately capitalized to execute on our 2019 plans and to realize our growth strategy.

“We continue to see strong demand for our products and services 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 strong second quarter growth was driven by roll-outs and implementations across a number of school districts, including San Diego Unified School District, CA, Montgomery County School District, MD, Chesapeake School District, VA, Provo Schools, UT, Anacortes Schools, WA, Atlanta Public Schools, GA, Clayton County Schools, GA, Collier County School District, FL, Henry County School District, GA and Highland Park Schools, TX, among others. Our team continues to do 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 our recent awards and recognition at the ISTE education technology conference, several successful implementations, and our tremendous sales pipeline across the U.S. and in 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 better positioned for growth than at any other time in our history. We added several new re-seller partners including Virtuocomm, Sussman Education, Computer Hardware and Superior Fiber and Data Services, and our re-seller partner network is as strong as ever. Our re-sellers coupled with our seasoned management team, strong sales force and continued product development, help us deliver our best-in-class and award-winning interactive technology solutions to the education market globally.”

As the Company’s business continues to evolve, it is taking on more of a recurring revenue characteristic. School districts and counties throughout the U.S. are typically on 5-7 year technology replacement cycles. The majority of significant, school-wide awarded contracts call for multi-year roll-outs. Once in with a school district, the Company is likely to attain additional business with new products and services and replacements and is in an ideal position for next upgrade cycle.

Our relationship with Clayton County Public Schools, Georgia’s fifth-largest school district, is a great example of this recurring nature. Previously, in June 2018, Boxlight was awarded an $11 million contract to install its innovative Mimio classroom solution suite in approximately 3,200 classrooms, comprising of 37 elementary, 14 middle and 11 high schools. The installation was completed by the end of 2018. Subsequently, during the second quarter of 2019, we were awarded an additional services contract to provide a comprehensive program of training, professional development and ongoing support for the school district’s educators. We expect total revenues from this additional contract to exceed $1 million.

:

Revenue for the three months ended June 30, 2019 was $11.1 million, an increase of $1.4 million or 15%, compared to $9.7 million for the three months ended June 30, 2018. The increase is primarily attributable to the increase in sales volume of existing products, new products and additional services.

Gross profit for the three months ended June 30, 2019 was $3.3 million, an increase of $1.5 million, compared to $1.7 million for the three months ended June 30, 2018. The resulting gross margin was 29% for the three months ended June 30, 2019, compared to 18% for the three months ended June 30, 2018.

General and administrative expenses for the three months ended June 30, 2019 was $3.9 million, an increase of $0.2 million or 4%, compared to $3.7 million for the three months ended June 30, 2018. The slight increase was the result of the acquisitions of Qwizdom and EOS.

Research and development expenses for the three months ended June 30, 2019 was $0.3 million, an increase of $0.2 million or 83%, compared to $0.2 million for the three months ended June 30, 2018. The increase was due primarily to additional software development.

Other expense for the three months ended June 30, 2019 was an expense of $0.2 million, as compared to an expense of $2.3 million for the three months ended June 30, 2018. Interest expense increase by $0.3 million as a result of increased debt for Sallyport, Radium and Lind Global loans. The change in fair value of derivative liability of $2.4 million was a result of the quarterly mark to market adjustment impacted by change in the stock price.

Operating loss for the three months ended June 30, 2019 was $1.0 million, a decrease of $1.2 million, or 55%, compared to $2.2 million for the three months ended June 30, 2018.

Adjusted EBITDA loss for the three months ended June 30, 2019 was $0.6 million, a decrease of $0.6 million or 54% compared to $1.2 million for the three months ended June 30, 2018.

Net loss for the three months ended June 30, 2019 was $1.2 million, a decrease of $3.3 million, or 74%, compared to $4.5 million for the three months ended June 30, 2018. The resulting EPS loss for the three months ended June 30, 2019 was ($0.11) per diluted share, compared to ($0.45) per diluted share for the three months ended June 30, 2018. The decrease in the net loss was primarily due to increased revenue, a decrease in operating expenses as a percentage of revenue and change in fair value of derivative liabilities.

Adjusted EPS for the three months ended June 30, 2019 was ($0.05) per diluted share, compared to ($0.13) per diluted share for the three months ended June 30, 2018.

:

Revenue for the six months ended June 30, 2019 was $16.1 million, an increase of $0.4 million or 3%, compared to $15.7 million for the six months ended June 30, 2018.

Gross profit for the six months ended June 30, 2019 was $4.8 million, an increase of $1.6 million, compared to $3.2 million for the six months ended June 30, 2018. The resulting gross margin was 30% for the six months ended June 30, 2019, compared to 20% for the six months ended June 30, 2018.

General and administrative expenses for the six months ended June 30, 2019 was $7.7 million, an increase of $0.7 million or 11%, compared to $6.9 million for the six months ended June 30, 2018. The increase was due primarily to the acquisition of Qwizdom.

Research and development expenses for the six months ended June 30, 2019 was $0.6 million, an increase of $0.3 million or 108%, compared to $0.3 million for the six months ended June 30, 2018. The increase was due primarily to additional software development.

Other expense for the six months ended June 30, 2019 was an expense of $2.5 million, as compared to an expense of $1.4 million for the six months ended June 30, 2018. Interest expense increase by $0.4 million from loans entered into with Lind Global and Radium. The change in fair value of derivative liability of $0.7 million was a result of the quarterly mark to market adjustment impacted by change in the stock price.

Operating loss for the six months ended June 30, 2019 was $3.4 million, a decrease of $0.6 million, or 15%, compared to $4.0 million for the six months ended June 30, 2018.

Adjusted EBITDA loss for the six months ended June 30, 2019 was $2.4 million, remaining flat compared to the six months ended June 30, 2018.

Net loss for the six months ended June 30, 2019 was $5.8 million, an increase of $0.5 million, or 9%, compared to $5.4 million for the six months ended June 30, 2018. The resulting EPS loss for the six months ended June 30, 2019 was ($0.56) per diluted share, compared to ($0.55) per diluted share for the six months ended June 30, 2018.

Adjusted EPS for the six months ended June 30, 2019 was ($0.23) per diluted share, compared to ($0.24) per diluted share for the six months ended June 30, 2018.

Management will host a conference call to discuss the second quarter 2019 financial results on Tuesday, August 13, 2019 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 August 13, 2019 through 11:59 p.m. Eastern Time on November 13, 2019 by dialing 1-877-481-4010 (domestic) and 1-919-882-2331 (international) and referencing the replay pin number: 52022.

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, Adjusted EBITDA and Adjusted EPS as 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. Adjusted EPS represents Adjusted EBITDA divided by the number of fully diluted shares outstanding. Our management uses EBITDA, Adjusted EBITDA, and Adjusted EPS 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.

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 .

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.

 

View source version on businesswire.com:

CONTACT: Media

Charlotte Andrist

Nickel Communications

+1 770-310-5244

charlotte@nickelcommpr.comInvestor Relations

Michael Pope, Boxlight Corporation

+1 360-464-4478

michael.pope@boxlight.comHayden IR

+1 917-658-7878

BOXL@HaydenIR.com

KEYWORD: UNITED STATES NORTH AMERICA GEORGIA

INDUSTRY KEYWORD: TECHNOLOGY PRIMARY/SECONDARY EDUCATION SOFTWARE

SOURCE: Boxlight Corporation

Copyright Business Wire 2019.

PUB: 08/13/2019 04:03 PM/DISC: 08/13/2019 04:03 PM

http://www.businesswire.com/news/home/20190813005709/en

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