Boxlight(BOXL) - 2024 Q1 - Quarterly Results

Boxlight First Quarter 2024 Financial Results Financial & Operational Highlights Boxlight reported a 9.9% revenue decrease to $37.1 million in Q1 2024, resulting in a $7.1 million net loss and $0.2 million Adjusted EBITDA Q1 2024 Key Financial Metrics vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $37.1 million | $41.2 million | -9.9% | | Gross Profit | $12.8 million | $15.1 million | -15.4% | | Gross Profit Margin | 34.5% | 36.8% | -230 bps | | Net Loss | ($7.1 million) | ($2.9 million) | +$4.2M | | Net Loss per Share | ($0.76) | ($0.35) | +$0.41 | | Adjusted EBITDA | $0.2 million | $3.3 million | -$3.1M | - The company ended the quarter with $11.8 million in cash, $46.6 million in working capital, and $9.1 million in stockholders' equity[10][15] - Boxlight expects Q2 2024 revenue to be in the range of $43-$45 million and adjusted EBITDA between $2-$3 million[10] Management Commentary & Outlook Management streamlined operations, eliminating approximately $5 million in annualized operating costs, and secured a $2 million bridge loan post-quarter end - The company has eliminated approximately $5 million in operating costs in 2024. The first quarter included about $940 thousand in non-recurring severance costs, with the full benefits of these reductions expected in coming quarters[10] - Management believes market demand is stabilizing and sees an opportunity to capture market share in 2024 by refocusing the sales organization on customer-centric solutions[2] - Subsequent to the quarter's end, lenders provided a $2 million bridge loan for short-term seasonal working capital and extended the flexibility to borrow an additional $3 million in June[11] Detailed Financial Performance (Q1 2024 vs Q1 2023) Q1 2024 total revenues decreased by 9.9% to $37.1 million, with gross profit margin falling to 34.5% and a net loss of $7.1 million Revenue Breakdown (Q1 2024 vs Q1 2023) | Category | Q1 2024 (in millions) | Q1 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenues (As Reported) | $37.1M | $41.2M | -9.9% | | Constant-Currency Revenue | $36.2M | $41.2M | -12.0% | - The decrease in gross profit margin to 34.5% from 36.8% was primarily related to a different product mix compared to the prior year quarter[2] - Operating expenses increased to $16.4 million from $15.3 million, primarily due to approximately $0.9 million in severance charges from recent headcount reductions[26] Profitability Metrics (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Loss from Operations | $(3,605) | $(180) | | Net Loss | $(7,089) | $(2,924) | | Net Loss Attributable to Common Stockholders | $(7,406) | $(3,241) | | Comprehensive Loss | $(7,900) | $(2,366) | Balance Sheet Summary As of March 31, 2024, Boxlight reported total assets of $142.4 million, total liabilities of $104.8 million, and stockholders' equity of $9.1 million Condensed Balance Sheet (in thousands) | Account | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $11,812 | $17,253 | | Inventories, net | $39,155 | $44,131 | | Total current assets | $86,485 | $100,378 | | Total assets | $142,384 | $158,571 | | Liabilities & Equity | | | | Total current liabilities | $39,894 | $46,232 | | Long-term debt | $37,401 | $39,134 | | Total liabilities | $104,792 | $113,311 | | Total stockholders' equity | $9,083 | $16,751 | - As of March 31, 2024, the company had $38.5 million in total debt (net of debt issuance costs), comprised of $1.1 million in short-term and $37.4 million in long-term debt[15][22] Non-GAAP Financial Measures Boxlight utilizes non-GAAP measures like EBITDA, Adjusted EBITDA, and constant-currency results to provide additional insight into operational performance Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net Loss | $(7,089) | $(2,924) | | EBITDA | $(1,543) | $1,837 | | Severance charges | $943 | $— | | Stock compensation expense | $549 | $641 | | Adjusted EBITDA | $179 | $3,315 | - Adjusted EBITDA is calculated by taking EBITDA and adding back non-cash or non-recurring items like stock-based compensation, severance charges, change in fair value of derivative liabilities, and purchase accounting adjustments[29] - The company presents constant-currency results to facilitate period-to-period comparisons by excluding the impact of fluctuating foreign currency exchange rates, translating current period local currency amounts at prior year exchange rates[17][8] Supplementary Information This section provides details for the Q1 2024 financial results conference call, a brief company profile, and a standard forward-looking statements disclaimer - A conference call to discuss the results was held on May 8, 2024. A replay is available until May 22, 2024[28][16] - Boxlight Corporation is a provider of interactive technology solutions under brands like Clevertouch®, FrontRow™, and Mimio®, aimed at improving engagement in business and education[20] - The press release contains forward-looking statements, and actual results may differ. Readers are encouraged to review the company's SEC filings, including its Form 10-K[21]