LightInTheBox Reports Fourth Quarter 2019 Financial Results
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.
Fourth Quarter 2019 Financial Results
Total revenues increased by 29.9% year-over-year to
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
Total cost of revenues was
Gross profit in the fourth quarter of 2019 was
Total operating expenses in the fourth quarter of 2019 were
- 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
Net income per American Depository Share ("ADS") was
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
[1] For a discussion of the use of non-GAAP financial measures, see "Non-GAAP Financial Measures."
Full Year 2019 Financial Results
Total revenues increased by 7.1% year-over-year to
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
Total cost of revenues was
Gross profit for the full year of 2019 was
Total operating expenses for the full year of 2019 were
- 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
Net income was
Net income per American Depository Share ("ADS") was
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
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
Change in Fair Value of Convertible Promissory Notes Associated with the Acquisition of
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
"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.
The Company received a letter from the
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
The Company notified the NYSE on
Conference Call
The Company will host an earnings conference call at
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.
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
|
||||
Unaudited Condensed Consolidated Balance Sheets |
||||
( |
||||
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 |
||
|
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 |
||
|
(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 |
|
||||||||
Unaudited Condensed Consolidated Statements of Operations |
||||||||
( |
||||||||
Three-month Period Ended |
Twelve-month Period Ended |
|||||||
|
|
|
|
|||||
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 |
(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) |
|
|||||||||
Unaudited Reconciliations of GAAP and Non-GAAP Results |
|||||||||
( |
|||||||||
Three-month Period Ended |
Twelve-month Period Ended |
||||||||
|
|
|
|
||||||
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. |
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