UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the month of December 2019

 

Commission File Number: 001-35492

 

LightInTheBox Holding Co., Ltd.

 

Tower 2, Area D, Diantong Square

No. 7 Jiuxianqiao North Road

Chaoyang District, Beijing 100015

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

x Form 20-F

 

o Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): £

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): £

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

 

o Yes

 

x No

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a

 

 

 


 

TABLE OF CONTENTS

 

Exhibit 99.1 — LightInTheBox Reports Third Quarter 2019 Financial Results

 

Exhibit 99.2 — Press Release dated December 10, 2019, LightInTheBox Received Notification of Falling Below Continued Listing Standard Notice from the NYSE

 

2


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

LightInTheBox Holding Co., Ltd.

 

 

 

By:

/s/ Jian HE

 

Name:

Jian HE

 

Title:

Chief Executive Officer

 

Date: December 10, 2019

 

3


Exhibit 99.1

 

LightInTheBox Reports Third Quarter 2019 Financial Results

 

Beijing, China, December 10, 2019 - LightInTheBox Holding Co., Ltd. (NYSE: LITB) (“LightInTheBox” or the “Company”), a cross-border e-commerce platform that delivers products directly to consumers around the world, today announced its unaudited financial results for the third quarter ended September 30, 2019.

 

Third Quarter 2019 Highlights

 

·                               Total revenues regained significant growth momentum increasing 34.6% year-over-year to $59.9 million.

 

·                               Gross margin improved to 42.3% from 15.1% in the same quarter of 2018.

 

·                               Net income was $10.0 million, compared with a net loss of $17.8 million in the same quarter of 2018.

 

·                               Adjusted EBITDA1 improved significantly, increasing to earnings of $0.5 million, compared with a loss of $17.3 million in the same quarter of 2018.

 

Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, “Our results this quarter are a strong reflection of the significant progress we have made since we began implementing our strategy to turn the business around last year. I am pleased to report that we are beginning to see the tangible benefits of the changes we have been making to improve operational efficiency, product optimization, and cost controls which resulted in our first quarter of GAAP profitability since 2014. In particular, our focus on improving product optimization, driving customer engagement and expanding our market scale have been critical to the success we have seen so far. Adjusted EBITDA was also positive for the second consecutive quarter, increasing to earnings of $0.5 million from a loss of $17.3 million during the same period last year, which I believe demonstrates the growth trajectory we are on. We remain focused on executing our strategy to generate sustainable long-term growth and are very encouraged by our improvements to date. We will continue to implement our strategies in order to maintain the trend of improvement.”

 

Third Quarter 2019 Financial Results

 

Total revenues increased by 34.6% year-over-year to $59.9 million from $44.5 million in the same quarter of 2018. Revenues generated from product sales were $58.1 million, compared with $42.9 million in the same quarter of 2018. Revenues from service and others were $1.8 million, compared with $1.6 million in the same quarter of 2018.

 

The number of orders for product sales was 1.4 million in the third quarter of 2019, compared with 0.8 million in the same quarter of 2018. The number of customers for product sales was 0.8 million for the third quarter of 2019, compared with 0.7 million in the same quarter of 2018.

 

Revenues generated from product sales in the apparel category were $20.3 million in the third quarter of 2019, compared with $14.4 million in the same quarter of 2018. As a percentage of product sales, apparel revenues accounted for 34.9% in the third quarter of 2019, compared with 33.6% in the same quarter of 2018. Revenues generated from product sales from other general merchandise were $37.8 million in the third quarter of 2019.

 

Total cost of revenues was $34.6 million in the third quarter of 2019, compared with $37.8 million in the same quarter of 2018. Cost for product sales was $33.8 million in the third quarter of 2019, compared with $36.3 million in the same quarter of 2018. Cost for service and others was $0.8 million in the third quarter of 2019, compared with $1.4 million in the same quarter of 2018.

 


1 For a discussion of the use of non-GAAP financial measures, see “Non-GAAP Financial Measures.”

 


 

Gross profit in the third quarter of 2019 was $25.3 million, compared with $6.7 million in the same quarter of 2018. Gross margin was 42.3% in the third quarter of 2019, compared with 15.1% in the same quarter of 2018. The increase in gross margin was a result of our continuous efforts to drive revenues from categories with high margin.

 

Total operating expenses in the third quarter of 2019 were $25.7 million, compared with $24.8 million in the same quarter of 2018.

 

·                                Fulfillment expenses in the third quarter of 2019 were $6.8 million, compared with $3.4 million in the same quarter of 2018. As a percentage of total revenues, fulfillment expenses were 11.3% in the third quarter of 2019, compared to 7.6% in the same quarter of 2018 and 8.4% in the second quarter of 2019.

 

·                                Selling and marketing expenses in the third quarter of 2019 were $12.4 million, compared with $11.3 million in the same quarter of 2018. As a percentage of total revenues, selling and marketing expenses were 20.8% for the third quarter of 2019, compared to 25.4% in the same quarter of 2018 and 19.8% in the second quarter of 2019.

 

·                                G&A expenses in the third quarter of 2019 were $1.6 million, compared with $7.5 million in the same quarter of 2018. As a percentage of total revenues, G&A expenses were 2.6% for the third  quarter of 2019, compared with 16.9% in the same quarter of 2018 and 11.0% in the second quarter of 2019.

 

·                                R&D expenses in the third quarter of 2019 were $4.9 million, compared with $2.5 million in the same quarter of 2018. As a percentage of total revenues, R&D expenses represented 8.2% for the third quarter of 2019, compared with 5.7% in the same quarter of 2018 and 7.1% in the second quarter of 2019.

 

Loss from operations was $0.4 million in the third quarter of 2019, compared with $18.1 million in the same quarter of 2018.

 

Net income was $10.0 million in the third quarter of 2019, compared with a net loss of $17.8 million in the same quarter of 2018. The net income as a result of the change in fair value of the convertible promissory notes associated with the acquisition of Ezbuy in the third quarter of 2019 was $10.3 million.

 

Net income per American Depository Share (“ADS”) was $0.15 in the third quarter of 2019, compared with net loss per ADS of $0.27 in the same quarter of 2018. Each ADS represents two ordinary shares. The diluted net loss per ADS in the third quarter of 2019 was $0.00 and $0.27 in the same quarter of 2018.

 

In the third quarter of 2019, the Company’s basic weighted average number of ADSs used in computing the income per ADS was 67,347,087, and 111,788,645 ADSs 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 $0.5 million of earning in the third quarter of 2019,compared with $17.3 million of loss in the same quarter of 2018.

 

As of September 30, 2019, the Company had cash and cash equivalents and restricted cash of $29.7 million, compared with $29.4 million as of June 30, 2019.

 

Business Outlook

 

For the fourth quarter of 2019, based on current information available to the Company and business seasonality, the Company expects net revenues to be between $71 million and $75 million.

 

Change in Fair Value of Convertible Promissory Notes Associated with the Acquisition of Ezbuy

 

The Company entered into a share purchase agreement (“SPA”) on November 8, 2018 to acquire Ezbuy in the form of non-interest bearing one-year convertible promissory notes. This SPA took effect on December 10, 2018 when LITB’s closing stock price was $0.64. LITB’s closing stock price on December 31, 2018 and September 30, 2019 was $1.22 and $1.20, respectively. The Company adopted Monte-Carlo Simulation based on a scenario-weighted average method to estimate the fair value of the convertible promissory notes. The estimate is based on the probability of each scenario and pay-off of the convertible promissory notes under each scenario. The scenarios include different timing and corresponding conversion price of the convertible promissory notes. The key assumptions adopted in the convertible promissory notes valuation include risk-free rate of interest and expected stock price volatility in the conversion period. The Company recorded a non-cash net income arising from change in fair value of the convertible promissory notes of $10.3 million in the third quarter of 2019.

 


 

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 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 their understanding of the past performance and future prospects.

 

Conference Call

 

The Company will hold a conference call at 8:00 a.m. Eastern Time on December 10, 2019 to discuss its financial results and operating performance for the third quarter of 2019. To participate in the call, please dial the following numbers:

 

US Toll Free: 1-866-519-4004

 

Hong Kong Toll Free: 800-906-601

 

Mainland China: 400-620-8038

 

International:  +65-6713-5090

 

Passcode: 8998868

 

A telephone replay will be available two hours after the conclusion of the conference call through December 17, 2019. The dial-in details are:

 

US: +1-646-254-3697

 

Hong Kong: +852-3051-2780

 

International:  +61-2-8199-0299

 

Passcode: 8998868

 

A live and archived webcast of the conference call will be available on the Investor Relations section of LightInTheBox’s website at http://ir.lightinthebox.com.

 


 

About LightInTheBox Holding Co., Ltd.

 

LightInTheBox is a cross-border e-commerce platform that delivers products directly to consumers around the world. The Company offers customers a convenient way to shop for a wide selection of products at attractive prices through its www.lightinthebox.com, www.miniinthebox.com, www.ezbuy.com and other websites and mobile applications, which are available in 25 major languages and cover more than 140 countries.

 

For more information, please visit www.lightinthebox.com.

 

Investor Relations Contact

 

Christensen

 

Ms. Xiaoyan Su

 

Tel: +86 (10) 5900 3429

 

Email:  ir@lightinthebox.com

 

OR

 

Christensen

 

Ms. Linda Bergkamp

 

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 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’s beliefs and expectations, the business outlook and quotations from management in this announcement, as well as LightInTheBox’s strategic and operational plans, are or contain forward-looking statements.

 

LightInTheBox may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward- looking statement, including but not limited to the following: LightInTheBox’s goals and strategies; LightInTheBox’s future business development, results of operations and financial condition; the expected growth of the global online retail market; LightInTheBox’s ability to attract customers and further enhance customer experience and product offerings; LightInTheBox’s ability to strengthen its supply chain efficiency and optimize its logistics network; LightInTheBox’s expectations regarding demand for and market acceptance of its products; competition; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in LightInTheBox’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and LightInTheBox does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 


 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Balance Sheets

(U.S. dollars in thousands, or otherwise noted)

 

 

 

 

As of December 31,

 

As of September 30,

 

 

 

2018

 

2019

 

ASSETS

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

 

38,808

 

29,054

 

Restricted cash

 

994

 

642

 

Accounts receivable, net of allowance for doubtful accounts

 

1,463

 

1,721

 

Amounts due from related parties

 

 

4,113

 

Inventories

 

8,481

 

6,584

 

Prepaid expenses and other current assets

 

5,811

 

4,920

 

Total current assets

 

55,557

 

47,034

 

Property and equipment, net

 

3,652

 

2,936

 

Intangible assets, net

 

9,890

 

8,973

 

Goodwill

 

28,169

 

28,169

 

Operating lease right-of-use assets, net

 

 

6,923

 

Long-term rental deposits

 

1,131

 

913

 

Long-term investments

 

5,188

 

2,798

 

TOTAL ASSETS

 

103,587

 

97,746

 

 

 

 

 

 

 

LIABILITIES AND DEFICIT

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accounts payable

 

12,941

 

12,640

 

Amounts due to related parties

 

4,953

 

 

Convertible promissory notes

 

51,922

 

53,517

 

Advance from customers

 

17,732

 

17,185

 

Current operating lease liabilities

 

 

3,124

 

Income tax payable

 

26

 

147

 

Accrued expenses and other current liabilities

 

22,662

 

25,326

 

Total current liabilities

 

110,236

 

111,939

 

 

 

 

 

 

 

Non-current operating lease liabilities

 

 

3,757

 

Non-current finance lease liabilities

 

1,156

 

900

 

TOTAL LIABILITIES

 

111,392

 

116,596

 

 

 

 

 

 

 

DEFICIT

 

 

 

 

 

Ordinary shares

 

11

 

11

 

Additional paid-in capital

 

239,269

 

240,530

 

Treasury shares, at cost

 

(27,261

)

(27,261

)

Accumulated other comprehensive loss

 

(932

)

(1,812

)

Accumulated deficit

 

(218,887

)

(230,279

)

Non-controlling interests

 

(5

)

(39

)

TOTAL DEFICIT

 

(7,805

)

(18,850

)

TOTAL LIABILITIES AND DEFICIT

 

103,587

 

97,746

 

 


 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations

(U.S. dollars in thousands, except per share data, or otherwise noted)

 

 

 

Three-month Period Ended

 

Nine-month Period Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2018

 

2019

 

2018

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

Product sales

 

42,910

 

58,139

 

160,942

 

165,039

 

Services and others

 

1,593

 

1,752

 

9,058

 

3,867

 

Total revenues

 

44,503

 

59,891

 

170,000

 

168,906

 

Cost of revenues

 

 

 

 

 

 

 

 

 

Product sales

 

(36,336

)

(33,790

)

(120,386

)

(100,193

)

Services and others

 

(1,442

)

(794

)

(8,330

)

(1,313

)

Total cost of revenues

 

(37,778

)

(34,584

)

(128,716

)

(101,506

)

Gross profit

 

6,725

 

25,307

 

41,284

 

67,400

 

Operating expenses

 

 

 

 

 

 

 

 

 

Fulfillment

 

(3,400

)

(6,763

)

(11,580

)

(16,934

)

Selling and marketing

 

(11,316

)

(12,440

)

(38,712

)

(33,232

)

General and administrative

 

(7,541

)

(1,559

)

(18,415

)

(15,734

)

Research and development

 

(2,546

)

(4,915

)

(8,382

)

(13,223

)

Total operating expenses

 

(24,803

)

(25,677

)

(77,089

)

(79,123

)

Loss from operations

 

(18,078

)

(370

)

(35,805

)

(11,723

)

Exchange loss on offshore bank accounts

 

20

 

 

(23

)

 

Interest income

 

205

 

49

 

432

 

246

 

Interest expense

 

 

(13

)

 

(51

)

Change in fair value of convertible promissory notes

 

 

10,347

 

 

(1,595

)

Total other income / (loss)

 

225

 

10,383

 

409

 

(1,400

)

Income/(loss) before income taxes and gain from equity method investment

 

(17,853

)

10,013

 

(35,396

)

(13,123

)

Income tax expense

 

(3

)

(19

)

(6

)

(439

)

Gain/(loss) from equity method investment

 

46

 

(20

)

197

 

2,136

 

Net income/( loss)

 

(17,810

)

9,974

 

(35,205

)

(11,426

)

Less: Net income/(loss) attributable to non-controlling interests

 

 

 

(138

)

 

(34

)

Net income/( loss) attributable to LightInTheBox Holding Co., Ltd.

 

(17,810

)

10,112

 

(35,205

)

(11,392

)

 

 

 

 

 

 

 

 

 

 

Weighted average numbers of shares used in calculating income/(loss) per ordinary share

 

 

 

 

 

 

 

 

 

—Basic

 

133,278,934

 

134,694,173

 

134,070,694

 

134,586,488

 

—Diluted

 

133,278,934

 

223,577,289

 

134,070,694

 

134,586,488

 

 

 

 

 

 

 

 

 

 

 

Net income/( loss) per ordinary share

 

 

 

 

 

 

 

 

 

—Basic

 

(0.13

)

0.08

 

(0.26

)

(0.08

)

—Diluted

 

(0.13

)

(0.00

)

(0.26

)

(0.08

)

 

 

 

 

 

 

 

 

 

 

Net income/( loss) per ADS (2 ordinary shares equal to 1 ADS)

 

 

 

 

 

 

 

 

 

—Basic

 

(0.27

)

0.15

 

(0.53

)

(0.17

)

—Diluted

 

(0.27

)

(0.00

)

(0.53

)

(0.17

)

 


 

LightInTheBox Holding Co., Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

(U.S. dollars in thousands, or otherwise noted)

 

 

 

Three-month Period Ended

 

Nine-month Period Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2018

 

2019

 

2018

 

2019

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

(17,810

)

9,974

 

(35,205

)

(11,426

)

 

 

 

 

 

 

 

 

 

 

Less: Interest income

 

205

 

49

 

432

 

246

 

Interest expense

 

 

(13

)

 

(51

)

Income tax expense

 

(3

)

(19

)

(6

)

(439

)

Depreciation and amortization

 

(133

)

(598

)

(438

)

(1,860

)

EBITDA

 

(17,879

)

10,555

 

(35,193

)

(9,322

)

 

 

 

 

 

 

 

 

 

 

Less: Share-based compensation

 

(532

)

(305

)

(1,551

)

(1,261

)

Change in fair value of convertible promissory notes

 

 

10,347

 

 

(1,595

)

Adjusted EBITDA*

 

(17,347

)

513

 

(33,642

)

(6,466

)

 


* 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.

 


Exhibit 99.2

 

LightInTheBox Received Notification of Falling Below Continued Listing Standard Notice from the NYSE

 

BEIJING, December 10, 2019/PRNewswire/ — LightInTheBox Holding Co., Ltd. (NYSE: LITB) (“LightInTheBox” or the “Company”), a global online retail company that delivers products directly to consumers around the world, today announced that it received a letter from the New York Stock Exchange (“NYSE”), indicating that the Company is “below criteria” due to the average closing price of the Company’s ADSs being less than $1.00 over a consecutive 30-trading-day period pursuant to Section 802.01C of the NYSE Listed Company Manual.

 

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 $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. In the event that at the expiration of the six-month cure period, both a $1.00 closing share price on the last trading day of the cure period and a $1.00 average closing share price over the 30 trading-day period ending on the last trading day of the cure period are not attained, the NYSE will commence suspension and delisting procedures.

 

The Company has notified the NYSE on November 28, 2019 of its intention to cure the deficiency. The Company’s ADSs will continue to be listed and traded on the NYSE, subject to compliance with other NYSE continued listing standards and other rights of the NYSE to delist the ADSs. The Company is currently in compliance with all other NYSE continued listing standards. The NYSE notification does not affect the Company’s business operations or its Securities and Exchange Commission reporting requirements.

 

About LightInTheBox Holding Co., Ltd.

 

LightInTheBox is a global online retail company that delivers products directly to consumers around the world. The Company offers customers a convenient way to shop for a wide selection of products at attractive prices through its www.lightinthebox.com, www.miniinthebox.com and other websites and mobile applications, which are available in 23 major languages and cover more than 90% of global internet users.

 

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’s beliefs and expectations, the business outlook and quotations from management in this announcement, as well as LightInTheBox’s strategic and operational plans, are or contain forward-looking statements. LightInTheBox may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: LightInTheBox’s goals and strategies; LightInTheBox’s future business development, results of operations and financial condition; the expected growth of the global online retail market; LightInTheBox’s ability to attract customers and further enhance customer experience and product offerings; LightInTheBox’s ability to strengthen its supply chain efficiency and optimize its logistics network; LightInTheBox’s expectations regarding demand for and market acceptance of its products; competition; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in LightInTheBox’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and LightInTheBox does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

Investor Relations Contact

 

Christensen

Ms. Xiaoyan Su

Tel: +86 (10) 5900 3429

Email: ir@lightinthebox.com