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LightInTheBox Reports Second Quarter 2018 Financial Results

BEIJING, Sept. 20, 2018 /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 its unaudited financial results for the second quarter of 2018.

Second Quarter 2018 Financial Results

Net revenues decreased 29.4% year-over-year to $55.4 million from $78.5 million in the same quarter of 2017. Net revenues from product sales were $52.0 million, compared with $73.7 million in the same quarter of 2017. Net revenues from service and others were $3.4 million, compared with $4.8 million in the same quarter of 2017. As a percentage of net revenues, service and others accounted for 6.1% during the second quarter of 2018.

Total orders of product sales were 0.9 million during the second quarter of 2018, compared with 1.7 million in the same quarter of 2017. Total number of customers for product sales was 0.7 million for the second quarter of 2018, compared with 1.4 million in the same quarter of 2017.

Product sales in the apparel category were $18.7 million for the second quarter of 2018, compared with $27.0 million in the same quarter of 2017. As a percentage of product sales, apparel revenues accounted for 36.0% for the second quarter of 2018, compared with 36.6% in the same quarter of 2017. Product sales from other general merchandise were $33.3 million for the second quarter of 2018.

Product sales in Europe were $24.9 million for the second quarter of 2018, compared with $37.4 million in the same quarter of 2017, representing 47.8% of total product sales for the second quarter of 2018. Product sales in North America were $10.6 million, compared with $19.2 million in the same quarter of 2017, representing 20.4% of total product sales for the second quarter of 2018. Product sales in Gulf Cooperation Council ("GCC") countries were $3.3 million for the second quarter of 2018, compared with $0.3 million in the same quarter of 2017, representing 6.4% of total product sales for the second quarter of 2018, while product sales in other countries were $13.2 million, representing 25.4% of total product sales for the same quarter.

Total cost of revenues was $41.4 million in the second quarter of 2018, compared with $50.9 million in the same period of 2017. Cost for product sales was $38.2 million in the second quarter of 2018, compared with $46.2 million in the same period of 2017. Cost for service and others was $3.2 million in the second quarter of 2018, compared with $4.7 million in the same period of 2017.

Gross profit for the second quarter of 2018 was $14.0 million, compared with $27.6 million in the same period of 2017. Gross margin was 25.4% in the second quarter of 2018, compared with 35.2% in the same quarter of 2017.

Total operating expenses in the second quarter of 2018 were $23.7 million, compared with $29.6 million in the same quarter of 2017.

  • Fulfillment expenses in the second quarter of 2018 were $3.7 million, compared with $4.3 million in the same quarter of 2017. As a percentage of total net revenues, fulfillment expenses were 6.7% for the second quarter of 2018, compared to 5.5% in the same quarter of 2017 and 6.4% in the first quarter of 2018.
  • Selling and marketing expenses in the second quarter of 2018 were $11.3 million, compared with $18.1 million in the same quarter of 2017. As a percentage of total net revenues, selling and marketing expenses were 20.4% for the second quarter of 2018, compared to 23.1% in the same quarter of 2017 and 23.0% in the first quarter of 2018.
  • General and administrative (G&A) expenses in the second quarter of 2018 were $8.7 million, compared with $7.2 million in the same quarter of 2017. As a percentage of total net revenues, G&A expenses were 15.7% for the second quarter of 2018, compared with 9.1% in the same quarter of 2017 and 11.4% in the first quarter of 2018. G&A expenses in the second quarter of 2018 included $2.8 million in technology investments, compared with $2.7 million in the same quarter of 2017.

Loss from operations was $9.7 million in the second quarter of 2018, compared with a loss from operations of $2.0 million in the same quarter of 2017.

Net loss was $9.5 million in the second quarter of 2018, compared with a net loss of $1.8 million in the same quarter of 2017.

Net loss per American Depository Share ("ADS") was $0.14 in the second quarter of 2018, compared with net loss per ADS of $0.03 in the same quarter of 2017. Each ADS represents two ordinary shares.

For the second quarter of 2018, the Company's weighted average number of ADSs used in computing the loss per ADS was 66,646,520.

As of June 30, 2018, the Company had cash and cash equivalents and restricted cash of $41.7 million, compared with $54.6 million as of March 31, 2018.

Share Repurchase Program

On June 15, 2017, the Company announced the extension of its existing share repurchase program for an additional twelve month period from June 15, 2017 through June 14, 2018 to continue to repurchase up to the remaining balance of the $10 million of its American Depositary Shares ("ADSs"). As of June 30, 2018, the Company had repurchased a total of $7.2 million of its ADSs.

Conference Call

The Company will hold a conference call at 8:00 a.m. Eastern Time on Thursday, September 20, 2018 to discuss its financial results and operating performance for the second quarter 2018. 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: 

1091553

A telephone replay will be available two hours after the conclusion of the conference call through September 27, 2018. The dial-in details are:

US:

+1-646-254-3697

Hong Kong:

+852-3051-2780

International: 

61-2-8199-0299

Passcode:

1091553

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

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 80% of global Internet users.

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
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'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. dollar in thousands)








 As of December 31, 


 As of June 30, 



2017


2018

ASSETS





Current Assets





Cash and cash equivalents


68,441


40,787

Restricted cash


1,573


876

Accounts receivable


3,433


2,343

Inventories, net


11,841


11,887

Prepaid expenses and other current assets


15,696


14,519

Total current assets


100,984


70,412

Property and equipment, net


920


920

Acquired intangible assets, net


210


210

Goodwill


690


690

Long-term rental deposit


671


671

Long-term investment


5,262


5,320

TOTAL ASSETS


108,737


78,223






LIABILITIES





Current Liabilities





Accounts payable


22,430


12,519

Advance from customers


10,110


10,014

Accrued expenses and other current liabilities


20,727


20,058

Total current liabilities


53,267


42,591

TOTAL LIABILITIES


53,267


42,591






EQUITY





Ordinary shares


11


11

Treasury shares, at cost


(23,907)


(27,261)

Additional paid-in capital


238,851


239,883

Accumulated deficit


(159,286)


(176,681)

Accumulated other comprehensive loss


(199)


(320)

TOTAL EQUITY 


55,470


35,632

TOTAL LIABILITIES AND EQUITY


108,737


78,223

 

 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Operations

(U.S. dollar in thousands, except share data and per share data)












Three-month Period Ended


Six-month Period Ended



June 30,


June 30,


June 30,


June 30,

2017


2018

2017


2018

Net revenues









Product sales


73,652


52,064


138,428


118,032

Services and others


4,840


3,379


12,765


7,465

Total net revenues


78,492


55,443


151,193


125,497

Cost of revenues









Product sales


(46,173)


(38,160)


(87,205)


(84,050)

Services and others


(4,699)


(3,210)


(12,157)


(6,888)

Total cost of revenues


(50,872)


(41,370)


(99,362)


(90,938)

Gross profit


27,620


14,073


51,831


34,559

Operating expenses









Fulfillment


(4,347)


(3,700)


(8,095)


(8,180)

Selling and marketing


(18,091)


(11,318)


(33,296)


(27,396)

General and administrative


(7,180)


(8,711)


(15,014)


(16,710)

Total operating expenses


(29,618)


(23,729)


(56,405)


(52,286)

Loss from operations


(1,998)


(9,656)


(4,574)


(17,727)

Exchange (loss) gain on offshore bank accounts


(22)


14


(34)


(43)

Interest income


190


9


335


227

Loss before income taxes


(1,830)


(9,633)


(4,273)


(17,543)

Income taxes expenses


(13)


(1)


(21)


(3)

Gain from equity method investments


38


92


94


151

Net loss 


(1,805)


(9,542)


(4,200)


(17,395)










Weighted average numbers of shares used in
calculating loss per ordinary share









--Basic


137,717,629


133,293,041


137,736,836


133,679,564

--Diluted


137,717,629


133,293,041


137,736,836


133,679,564










Net loss per ordinary share









--Basic


(0.01)


(0.07)


(0.03)


(0.13)

--Diluted


(0.01)


(0.07)


(0.03)


(0.13)










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









--Basic


(0.03)


(0.14)


(0.06)


(0.26)

--Diluted


(0.03)


(0.14)


(0.06)


(0.26)

 

 

LightInTheBox Holding Co., Ltd.

Unaudited Condensed Consolidated Statements of Cash Flows

(U.S. dollar in thousands)












Three-month Period Ended


Six-month Period Ended



June 30,


June 30,


June 30,


June 30,

2017

2018


2017

2018

Net loss


(1,805)


(9,542)


(4,200)


(17,395)

Adjustments to reconcile net loss to net cash used in operating
activities









Depreciation and amortization


194


153


425


305

Share-based compensation


515


514


1,013


1,019

Inventory write-down


568


793


906


1,190

Exchange loss (gain) on offshore bank accounts


22


(14)


34


43

Gain from equity method investments


(38)


(92)


(94)


(151)

Changes in operating assets and liabilities









Accounts receivable


115


972


357


1,025

Inventories


(692)


1,217


(34)


(1,239)

Prepaid expenses and other current assets


(1,645)


3,014


(3,410)


1,170

Accounts payable


(387)


(6,918)


(5,325)


(9,905)

Advance from customers


738


(1,410)


3,998


(98)

Accrued expense and other current liabilities


541


(930)


(1,192)


(554)

Long-term rental deposit


2


(6)


(9)


(6)

Net cash used in operating activities


(1,872)


(12,249)


(7,531)


(24,596)

Cash flows from investing activities









Payment for long-term investment


(2,950)


-


(2,950)


-

Purchase of property and equipment


(140)


(17)


(251)


(312)

Net cash used in investing activities[1]


(3,090)


(17)


(3,201)


(312)

Cash flows from financing activities









Proceeds from exercise of share options


23


13


23


13

Repurchase of ordinary shares


(344)


(421)


(580)


(3,355)

Net cash used in financing activities


(321)


(408)


(557)


(3,342)

Effect of exchange rate changes on cash and cash equivalents


113


(275)


130


(101)

Cash, cash equivalents and restricted cash beginning of period


85,087


54,612


91,076


70,014

Cash, cash equivalents and restricted cash end of period


79,917


41,663


79,917


41,663










Supplemental Cash Flow Data 









Reconciliation of cash and cash equivalents to consolidated
statements of cash flows:









Cash and cash equivalents as presented in consolidated balance
sheets


78,439


40,787


78,439


40,787

Restricted cash and restricted cash equivalents as presented in
consolidated balance sheets


1,478


876


1,478


876

Cash, cash equivalents and restricted cash as presented in
consolidated statements of cash flows


79,917


41,663


79,917


41,663



















[1] Note: As a result of new accounting standard adopted on January 1, 2018, the consolidated statements of cash flows were
retrospectively adjusted to include restricted cash in cash and cash equivalents when reconciling the beginning-of-period and end-of-
period total amounts shown on the statement of cash flows. The impact of the retrospective reclassification on cash flows of investing
activities for the three-months and six-months ended June 30, 2017 was an increase of $189 thousand and  a decrease of $80 thousand,
respectively.The impact of cash flows of investing activities for the three-months and six-months ended June 30, 2018 was a decrease of
$506 thousand and a decrease of $698 thousand, respectively.


 

Cision View original content:http://www.prnewswire.com/news-releases/lightinthebox-reports-second-quarter-2018-financial-results-300715986.html

SOURCE LightInTheBox Holding Co., Ltd.