Boxlight(US:BOXL)2023-11-07 16:00Revenue Performance - Total revenue for the three months ended September 30, 2023, was $49.67 million, a decrease of 27.8% compared to $68.74 million for the same period in 2022[142] - Revenue from the Americas for the three months ended September 30, 2023, was $25.72 million, down 19.5% from $31.78 million in the same period last year[142] - EMEA revenue for the three months ended September 30, 2023, was $24.33 million, a decline of 35.2% compared to $37.54 million for the same period in 2022[142] - Total revenues for Q3 2023 were $49.7 million, a decrease of 27.7% compared to $68.7 million in Q3 2022[184] - Total net revenue for the nine months ended September 30, 2023, was $137.91 million, down 22.9% from $178.97 million for the same period in 2022[142] - Total revenues for the nine months ended September 30, 2023, were $137.9 million, a decrease of 22.9% compared to $179.0 million for the same period in 2022, primarily due to lower sales volume across all markets[211] Profitability and Loss - The company reported a total loss from operations of $11.60 million for the three months ended September 30, 2023, compared to an income of $6.46 million for the same period in 2022[142] - Net loss for the three months ended September 30, 2023, was $17.8 million, compared to a net income of $3.1 million for the same period in 2022[187] - Net loss for the nine months ended September 30, 2023, was $21.5 million, compared to a net loss of $1.7 million for the same period in 2022[215] - Gross profit for Q3 2023 was $18.0 million, down 14.3% from $21.0 million in Q3 2022, with a gross profit margin of 36.3% compared to 30.6% in the prior year[185] - Gross profit for the nine months ended September 30, 2023, was $51.0 million, a 1.0% increase from $50.5 million in the same period of 2022, with a gross profit margin of 37.0%[188][189] Expenses - General and administrative expenses for Q3 2023 were $15.4 million, representing 31.0% of revenue, up from $14.0 million or 20.3% of revenue in Q3 2022[161] - General and administrative expenses for the nine months ended September 30, 2023, were $45.4 million, representing 32.9% of revenue, up from 25.0% in the same period of 2022[213] - Research and development expenses for the nine months ended September 30, 2023, were $2.1 million, representing 1.5% of revenue, compared to $1.9 million or 1.0% of revenue in 2022[165] - Research and development expenses were $979 thousand for the three months ended September 30, 2023, representing 2.0% of revenue, compared to 0.9% in the same period of 2022[209] - Other expenses for the nine months ended September 30, 2023, were $8.4 million, an increase of $3.3 million from $5.1 million in the same period of 2022[214] Assets and Liabilities - Identifiable assets totaled $180.4 million as of September 30, 2023, down from $195.4 million as of December 31, 2022[144] - The company’s inventory as of September 30, 2023, was $44.14 million, a decrease of 24.2% from $58.21 million as of December 31, 2022[127] - Accounts receivable – trade increased to $43.8 million in 2023 from $33.2 million in 2022, net of allowances[159] - The EMEA segment's identifiable assets decreased to $84.1 million in 2023 from $105.0 million in 2022[144] - The Americas segment's identifiable assets increased to $93.6 million in 2023 from $88.5 million in 2022[144] Compliance and Financial Covenants - The company was not in compliance with its Senior Leverage Ratio financial covenant at September 30, 2023, but cured this by paying $4.3 million in November 2023[224] - The Senior Leverage Ratio is set to decrease to 2.50 at December 31, 2023, and further to 2.00 at March 31, 2024, raising concerns about the company's ability to maintain compliance[224] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2023, were $18.4 million, down from $22.0 million on September 30, 2022[194] - For the nine months ended September 30, 2023, net cash provided by operating activities was $8.2 million, up from $0.5 million in the same period of 2022, indicating improved operating income due to higher product margins[219] - The company anticipates that cash and cash equivalents, along with expected cash flows from operations, will provide sufficient liquidity for working capital needs and debt service requirements[223] Goodwill Impairment - The company recorded goodwill impairment charges of $13.2 million for Q3 2023, with no such charges in 2022[186] - The company recorded goodwill impairment charges of $13.2 million for the nine months ended September 30, 2023, with no such charges in 2022[190] - The company recorded goodwill impairment charges of $10.4 million and $2.8 million for the Americas and EMEA reporting units, respectively, for the three and nine months ended September 30, 2023[230]