omniture

LightInTheBox Reports First Quarter 2020 Financial Results

2020-06-19 18:00 12495

BEIJING, June 19, 2020 /PRNewswire/ -- 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 first quarter ended March 31, 2020.

First Quarter 2020 Highlights

  • Total revenues increased 1.3% year-over-year to $51.5 million.
  • Gross margin expanded further to 46.4% from 40.4% last quarter and 34.8% in the same quarter of 2019.
  • Third consecutive quarter of GAAP profitability despite impact from COVID-19 pandemic with net income of $0.7 million, compared with a net loss of $14.1 million in the same quarter of 2019.
  • Adjusted EBITDA improved significantly, increasing to earnings of $1.4 million, compared with a loss of $7.9 million in the same quarter of 2019.

Mr. Jian He, Chief Executive Officer of LightInTheBox, commented, "We responded quickly and decisively to the outbreak of COVID-19 by implementing a number of strategic initiatives to provide us with the flexibility needed to adapt to a challenging global economic environment. Seasonally, the first quarter is generally the slowest quarter of the year, so the COVID-19 induced economic disruption made the operating environment even more difficult. We took advantage of the temporary slowdown to deepen relationships with high-quality suppliers, optimize our product portfolio and category mix, and improve order fulfillment speed. We also prioritized the health and safety of our employees to ensure business continuity and adequately prepare for the resumption of normal operations while demonstrating our commitment to corporate social responsibility by including free medical face masks in numerous orders shipped to markets that were being impacted heavily by the pandemic. Despite the challenging operational environment, our financial results this quarter are a reflection of our ability to adapt and is highlighted by our third and consecutive quarter of GAAP profitability which I believe demonstrates the long-term growth trajectory we are on. We remain focused on executing our strategy and are very encouraged by our improvements to date. We are already starting to see certain product categories regain strong growth momentum towards the end of the second quarter as global markets begin re-opening and expect that both our operating and financial results will continue to improve going forward."

First Quarter 2020 Financial Results

Total revenues increased by 1.3% year-over-year to $51.5 million from $50.9 million in the same quarter of 2019. Revenues generated from product sales were $49.9 million, compared with $49.8 million in the same quarter of 2019. Revenues from service and others were $1.6 million, compared with $1.1 million in the same quarter of 2019.

The number of orders for product sales was 1.0 million in the first quarter of 2020, compared with 1.2 million in the same quarter of 2019. The number of customers for product sales was 0.8 million for the first quarter of 2020, compared with 0.6 million in the same quarter of 2019.

Revenues generated from product sales in the apparel category were $13.4 million in the first quarter of 2020, compared with $14.4 million in the same quarter of 2019. As a percentage of product sales, apparel revenues accounted for 26.8% in the first quarter of 2020, compared with 28.9% in the same quarter of 2019. Revenues generated from product sales from other general merchandise were $36.5 million in the first quarter of 2020.

Total cost of revenues was $27.6 million in the first quarter of 2020, compared with $33.2 million in the same quarter of 2019. Cost for product sales was $26.9 million in the first quarter of 2020, compared with $32.8 million in the same quarter of 2019. Cost for service and others was $0.7 million in the first quarter of 2020, compared with $0.4 million in the same quarter of 2019.

Gross profit in the first quarter of 2020 was $23.9 million, compared with $17.7 million in the same quarter of 2019. Gross margin was 46.4% in the first quarter of 2020, compared with 34.8% in the same quarter of 2019. The increase in gross margin was a result of the Company's continuous efforts to drive revenues from categories with higher margins.

Total operating expenses in the first quarter of 2020 were $27.1 million, compared with $26.5 million in the same quarter of 2019.

  • Fulfillment expenses in the first quarter of 2020 were $5.0 million, compared with $5.2 million in the same quarter of 2019. As a percentage of total revenues, fulfillment expenses were 9.8% in the first quarter of 2020, compared with 10.2% in the same quarter of 2019 and 10.7% in the fourth quarter of 2019.
  • Selling and marketing expenses in the first quarter of 2020 were $14.8 million, compared with $9.3 million in the same quarter of 2019. As a percentage of total revenues, selling and marketing expenses were 28.7% for the first quarter of 2020, compared with 18.3% in the same quarter of 2019 and 23.9% in the fourth quarter of 2019.
  • G&A expenses in the first quarter of 2020 were $7.3 million, compared with $12.0 million in the same quarter of 2019. As a percentage of total revenues, G&A expenses were 14.1% for the first quarter of 2020, compared with 23.6% in the same quarter of 2019 and 11.8% in the fourth quarter of 2019. Included in G&A expenses, R&D expenses in the first quarter of 2020 were $3.5 million, compared with $4.2 million in the same quarter of 2019.

Net income was $0.7 million in the first quarter of 2020, compared with a net loss of $14.1 million in the same quarter of 2019.

Net income per American Depository Share ("ADS") was $0.01 in the first quarter of 2020, compared with net loss per ADS of $0.21 in the same quarter of 2019. Each ADS represents two ordinary shares. The diluted net income per ADS was $0.01 in the first quarter of 2020, compared with the diluted net loss per ADS of $0.21 in the same quarter of 2019.

In the first quarter of 2020, the Company's basic weighted average number of ADSs used in computing the net income per ADS was 102,240,901 and the diluted weighted average number of ADSs was 112,122,548.

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 earnings of $1.4 million in the first quarter of 2020, compared with a loss of  $7.9 million in the same quarter of 2019.

As of March 31, 2020, the Company had cash and cash equivalents and restricted cash of $35.6 million, compared with $40.4 million as of December 31, 2019.

Business Outlook

For the second quarter of 2020, based on current information available to the Company and business seasonality, the Company expects net revenues to be between $105 million and $120 million.

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 to discuss the results at 7:00 a.m. Eastern Time on June 19, 2020 (7:00 p.m. Beijing Time on the same day).

Preregistration Information

Participants can register for the conference call by navigating to http://apac.directeventreg.com/registration/event/8893322. Once preregistration has been complete, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.

A telephone replay will be available two hours after the conclusion of the conference call through June 26, 2020. The dial-in details are:

US/Canada:

+1-855-452-5696

Hong Kong:

800-963-117

International:

+61-2-8199-0299

Passcode:

8893322

Additionally, 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 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 23 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 fourth 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 March 31,




2019


2020


ASSETS






Current Assets






Cash and cash equivalents


37,736


33,902


Restricted cash


2,709


1,684


Accounts receivable, net of allowance for doubtful accounts


1,356


1,411


Amounts due from related parties


4,600


2,802


Inventories


7,357


7,316


Prepaid expenses and other current assets


3,619


4,121


Total current assets


57,377


51,236


Property and equipment, net


3,502


3,245


Intangible assets, net


8,516


8,350


Goodwill


27,922


27,465


Operating lease right-of-use assets


12,233


13,504


Long-term rental deposits


778


723


Long-term investments


2,873


6,634


TOTAL ASSETS


113,201


111,157








LIABILITIES AND EQUITY






Current Liabilities






Accounts payable


17,643


11,957


Amounts due to related parties


186


167


Advance from customers


21,731


28,921


Operating lease liabilities


3,470


4,642


Accrued expenses and other current liabilities


28,642


24,273


Total current liabilities


71,672


69,960








Operating lease liabilities


8,801


9,173


Long-term payable


847


726


TOTAL LIABILITIES


81,320


79,859








EQUITY






Ordinary shares


14


17


Additional paid-in capital


262,888


278,804


Forward contracts


15,769



Treasury shares, at cost


(27,512)


(28,268)


Accumulated other comprehensive loss


(1,444)


(2,165)


Accumulated deficit


(217,888)


(217,267)


Non-controlling interests


54


177


TOTAL EQUITY


31,881


31,298


TOTAL LIABILITIES AND EQUITY


113,201


111,157



 

 

 

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




March 31,


March 31,




2019


2020


Revenues






Product sales


49,789


49,936


Services and others


1,084


1,582


Total revenues


50,873


51,518


Cost of revenues






Product sales


(32,785)


(26,905)


Services and others


(357)


(712)


Total Cost of revenues


(33,142)


(27,617)


Gross profit


17,731


23,901


Operating expenses






Fulfillment


(5,265)


(5,049)


Selling and marketing


(9,269)


(14,780)


General and administrative


(11,984)


(7,268)


Other operating income



13


Total operating expenses


(26,518)


(27,084)


Loss from operations


(8,787)


(3,183)


Interest income


123


47


Interest expense


(20)


(30)


Change in fair value of convertible promissory notes


(5,337)



Other Income,net



3,913


Total other (loss) / income


(5,234)


3,930


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


(14,021)


747


Income tax expense


(216)


(3)


Gain from an equity method investment


127



Net (loss) / income


(14,110)


744


Less: Net income attributable to non-controlling interests


32


123


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


(14,142)


621








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






—Basic


134,458,170


204,481,801


—Diluted


134,458,170


224,245,096








Net (loss) / income per ordinary share






—Basic


(0.11)


0.00


—Diluted


(0.11)


0.00








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






—Basic


(0.21)


0.01


—Diluted


(0.21)


0.01


 

 

 

LightInTheBox Holding Co., Ltd.


Unaudited Reconciliations of GAAP and Non-GAAP Results


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








Three-month Period Ended




March 31,


March 31,




2019


2020








Net (loss) / income


(14,110)


744








Less: Interest income


123


47


Interest expense


(20)


(30)


Income tax expense


(216)


(3)


Depreciation and amortization


(628)


(551)


EBITDA


(13,369)


1,281








Less: Share-based compensation


(157)


(149)


Change in fair value of convertible promissory notes


(5,337)



Adjusted EBITDA*


(7,875)


1,430






* 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.

 

 

Cision View original content:http://www.prnewswire.com/news-releases/lightinthebox-reports-first-quarter-2020-financial-results-301080178.html

Source: LightInTheBox Holding Co., Ltd.
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