LightInTheBox Reports First Quarter 2019 Financial Results
First Quarter 2019 Highlights
- Gross margin improved to 34.8% from 29.2% in the same quarter of 2018.
- Net loss was
$14.1 million , compared with a net loss of$7.9 million in the same quarter of 2018. The net loss includes the impact from a$5.3 million net loss due to the change in fair value of the convertible promissory notes associated with the acquisition of Ezbuy. Adjusted EBITDA[1] was$7.9 million , compared with$7.4 million in the same quarter of 2018. - Selling and marketing expenses as a percentage of total revenue decreased to 18.3% from 23.0% in the same quarter of 2018.
Mr.
Adjusted EBITDA was
First Quarter 2019 Financial Results
Total revenues decreased by 27.4% year-over-year to
The number of orders for product sales was 2.6 million in the first quarter of 2019, compared with 1.3 million in the same quarter of 2018. The number of customers for product sales was 0.6 million for the first quarter of 2019, compared with 1.0 million in the same quarter of 2018.
Product sales from the apparel category were
Total cost of revenues was $33.2 million in the first quarter of 2019, compared with
Gross profit in the first quarter of 2019 was
Total operating expenses in the first quarter of 2019 were
- Fulfillment expenses in the first quarter of 2019 were
$5.2 million , compared with$4.5 million in the same quarter of 2018. As a percentage of total revenues, fulfillment expenses was 10.2% in the first quarter of 2019, compared to 6.4% in the same quarter of 2018 and 6.2% in the fourth quarter of 2018. - Selling and marketing expenses in the first quarter of 2019 were
$9.3 million , compared with$16.1 million in the same quarter of 2018. As a percentage of total revenues, selling and marketing expenses was 18.3% for the first quarter of 2019, compared to 23.0% in the same quarter of 2018 and 20.5% in the fourth quarter of 2018. - General and administrative (G&A) expenses in the first quarter of 2019 were
$12.0 million , compared with$8.0 million in the same quarter of 2018. As a percentage of total revenues, G&A expenses was 23.6% for the first quarter of 2019, compared with 11.4% in the same quarter of 2018 and 10.8% in the fourth quarter of 2018. G&A expenses in the first quarter of 2019 included$4.2 million in technology investments, compared with$3.0 million in the same quarter of 2018.
Loss from operations was
Net loss was
Net loss per American Depository Share ("ADS") was
In the first quarter of 2019, the Company's weighted average number of ADSs used in computing the loss per ADS was 67,229,085.
Adjusted EBITDA, which represents 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
As of
Business outlook
For the second quarter of 2019, based on current information available to the Company and business seasonality, the Company expects net revenues to be between
Change in Fair Value of Convertible Promissory Notes Associated with the Acquisition of Ezbuy
The Company entered into a Share Purchase Agreement ("SPA") on
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 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 their understanding of the past performance and future prospects.
Conference Call
The Company will hold a conference call at
US Toll Free: |
1-866-519-4004 |
Hong Kong Toll Free: |
800-906-601 |
China: |
400-620-8038 |
International: |
+65-6713-5090 |
Passcode: |
6196338 |
A telephone replay will be available two hours after the conclusion of the conference call through
US: |
+1-646-254-3697 |
Hong Kong: |
+852-3051-2780 |
International: |
+61-2-8199-0299 |
Passcode: |
6196338 |
A live and archived webcast of the conference call will be available on the Investor Relations section of
[1] For a discussion of the use of non-GAAP financial measures, see "Non-GAAP Financial Measures." |
About
For more information, please visit www.lightinthebox.com.
Investor Relations Contact
Christensen
Ms.
Tel: +86 (10) 5900 3429
Email: ir@lightinthebox.com
OR
Christensen
Ms.
Phone: +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 Holding Co., Ltd. |
||||
Unaudited Condensed Consolidated Balance Sheets |
||||
(U.S. dollars in thousands, or otherwise noted) |
||||
As of December 31, |
As of March 31, |
|||
2018 |
2019 |
|||
ASSETS |
||||
Current Assets |
||||
Cash and cash equivalents |
38,808 |
29,525 |
||
Restricted cash |
994 |
802 |
||
Accounts receivable, net of allowance for doubtful |
1,463 |
1,566 |
||
Inventories |
8,481 |
8,209 |
||
Prepaid expenses and other current assets |
5,811 |
4,388 |
||
Total current assets |
55,557 |
44,490 |
||
Property and equipment, net |
3,652 |
3,431 |
||
Intangible assets, net |
9,890 |
9,572 |
||
Goodwill |
28,169 |
28,169 |
||
Operating lease right-of-use assets, net |
- |
7,376 |
||
Long-term rental deposits |
1,131 |
910 |
||
Long-term investments |
5,188 |
5,443 |
||
TOTAL ASSETS |
103,587 |
99,391 |
||
LIABILITIES AND DEFICIT |
||||
Current Liabilities |
||||
Accounts payable |
12,941 |
10,674 |
||
Amounts due to related parties |
4,953 |
5,707 |
||
Convertible promissory notes |
51,922 |
57,259 |
||
Advance from customers |
17,732 |
19,675 |
||
Current operating lease liabilities |
- |
3,916 |
||
Accrued expenses and other current liabilities |
22,688 |
19,950 |
||
Total current liabilities |
110,236 |
117,181 |
||
Non-current operating lease liabilities |
- |
3,647 |
||
Non-current finance lease liabilities |
1,156 |
1,073 |
||
TOTAL LIABILITIES |
111,392 |
121,901 |
||
DEFICIT |
||||
Ordinary shares |
11 |
11 |
||
Additional paid-in capital |
239,269 |
239,426 |
||
Treasury shares, at cost |
(27,261) |
(27,261) |
||
Accumulated other comprehensive loss |
(932) |
(1,684) |
||
Accumulated deficit |
(218,887) |
(233,029) |
||
Non-controlling interests |
(5) |
27 |
||
TOTAL DEFICIT |
(7,805) |
(22,510) |
||
TOTAL LIABILITIES AND DEFICIT |
103,587 |
99,391 |
||
LightInTheBox Holding Co., Ltd. |
|||||
Unaudited Condensed Consolidated Statements of Operations |
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(U.S. dollars in thousands, except per share data, or otherwise noted) |
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Three-month Period Ended |
|||||
March 31, |
March 31, |
||||
2018 |
2019 |
||||
Revenues |
|||||
Product sales |
65,968 |
49,789 |
|||
Services and others |
4,086 |
1,084 |
|||
Total revenues |
70,054 |
50,873 |
|||
Cost of revenues |
|||||
Product sales |
(45,890) |
(32,785) |
|||
Services and others |
(3,678) |
(357) |
|||
Total Cost of revenues |
(49,568) |
(33,142) |
|||
Gross profit |
20,486 |
17,731 |
|||
Operating expenses |
|||||
Fulfillment |
(4,480) |
(5,265) |
|||
Selling and marketing |
(16,078) |
(9,269) |
|||
General and administrative |
(7,999) |
(11,984) |
|||
Total operating expenses |
(28,557) |
(26,518) |
|||
Loss from operations |
(8,071) |
(8,787) |
|||
Exchange loss on offshore bank accounts |
(57) |
- |
|||
Interest income |
218 |
123 |
|||
Interest expense |
- |
(20) |
|||
Change in fair value of convertible promissory notes |
- |
(5,337) |
|||
Total other income / (loss) |
161 |
(5,234) |
|||
Loss before income taxes and gain from equity method investment |
(7,910) |
(14,021) |
|||
Income tax expense |
(2) |
(216) |
|||
Gain from equity method investment |
59 |
127 |
|||
Net loss |
(7,853) |
(14,110) |
|||
Less: Net income attributable to non-controlling interests |
- |
32 |
|||
Net loss attributable to LightInTheBox Holding Co., Ltd. |
(7,853) |
(14,142) |
|||
Weighted average numbers of shares used in calculating loss per ordinary |
|||||
—Basic |
134,200,859 |
134,458,170 |
|||
—Diluted |
134,200,859 |
134,458,170 |
|||
Net loss per ordinary share |
|||||
—Basic |
(0.06) |
(0.10) |
|||
—Diluted |
(0.06) |
(0.10) |
|||
Net loss per ADS (2 ordinary shares equal to 1 ADS) |
|||||
—Basic |
(0.12) |
(0.21) |
|||
—Diluted |
(0.12) |
(0.21) |
|||
LightInTheBox Holding Co., Ltd. |
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Unaudited Reconciliations of GAAP and Non-GAAP Results |
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(U.S. dollars in thousands, or otherwise noted) |
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Three-month Period Ended |
|||||
March 31, |
March 31, |
||||
2018 |
2019 |
||||
Net loss |
(7,853) |
(14,110) |
|||
Less: Interest income |
218 |
123 |
|||
Interest expense |
- |
(20) |
|||
Income tax expense |
(2) |
(216) |
|||
Depreciation and amortization |
(152) |
(628) |
|||
EBITDA |
(7,917) |
(13,369) |
|||
Less: Share-based compensation |
(505) |
(157) |
|||
Change in fair value of convertible promissory notes |
- |
(5,337) |
|||
Adjusted EBITDA* |
(7,412) |
(7,875) |
|||
* Adjusted EBITDA represents loss from operations before share-based compensation expense, |
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