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 third quarter of 2013, ended September 30,
2013.
Third Quarter 2013 Highlights
-
Net revenues were $68.1 million, an increase of 33.4% from $51.1
million in the same quarter of 2012, primarily driven by an increase
of 74.7% in total number of customers served in the third quarter of
2013.
-
Gross margin increased by 160 basis points to 43.9% from 42.3% in the
same quarter of 2012.
-
Adjusted operating loss (non-GAAP) (1) was $2.5 million, compared to
an adjusted operating income of $0.4 million in the same quarter of
2012.
-
Net loss was $2.4 million, compared to a net loss of $1.0 million in
the same quarter of 2012.
-
Adjusted net loss (non-GAAP) (2) was $1.9 million, compared to an
adjusted net loss of $0.2 million in the same quarter of 2012.
-
Revenue attributed to repeat customers increased 92.0% to $23.8
million from the same quarter of 2012.
Mr. Alan Guo, Chairman and CEO of LightInTheBox, commented, “Our net
revenues in the third quarter, which is a seasonally weaker quarter,
grew by 33.4% compared to our prior year period, meeting our revenue
forecast range. Geographically, Europe and South America contributed
most significantly to our year-over-year growth, increasing by 92.2% and
105.0%, respectively. Excluding the revenue contribution from our
apparel category, third quarter revenue from our other categories
increased 59.6% from the prior year period. In terms of revenue growth
in our product categories, our largest contributors in percentage terms
came from our small accessories and gadgets and home and garden product
categories.”
“Responding to both customer needs and the competitive environment, our
apparel category, which remains our second largest product category, is
undergoing adjustments. We are implementing improvements within
customized wedding and special occasion apparel in the areas of
management, merchandising, supply chain, and customer service. We are
enhancing our product offerings in the apparel segment by placing
greater emphasis on other product lines beyond wedding and special
occasion wear, such as fast fashion apparel, which are resulting in
increased purchase levels among our customers for such products. We
believe this expanded apparel offering will provide us with increased
ability to accelerate sales of both new and repeat customers.”
“Our total number of customers increased by 74.7% to 1.3 million and our
total number of orders increased by 80.0% to 1.6 million in the third
quarter compared to the prior year period, demonstrating the growing
consumer attraction of our online retail platform. We added 8 new
languages to our website in the third quarter. Recently, we made good
progress in revenues from mobile ecommerce and recently we launched an
updated version of our LightInTheBox app, as well as our first
MiniInTheBox app for the iPhone platform to further improve our mobile
customer experience. We are excited by our opportunities ahead as we
continue to build a strong growth platform that we believe will result
in improved operating performance and profitability in the coming
quarters.”
(1)
|
Adjusted operating income (loss) is a non-GAAP measure, which is
defined as income (loss) from operations excluding share-based
compensation expenses.
|
(2)
|
Adjusted net income (loss) is a non-GAAP measure, which is defined
as net income (loss) excluding share-based compensation expenses.
|
|
|
Third Quarter 2013 Financial Results
Net revenues increased by 33.4% to $68.1 million from $51.1
million in the same quarter of 2012. The increase was primarily driven
by growth in the number of customers and total orders.
During the third quarter of 2013, apparel, small accessories and gadgets
and electronics and communication devices remained the largest three
revenue contributors. Revenues from small accessories and gadgets and
electronics and communication devices increased by 94.5% to $26.7
million and 12.1% to $10.2 million, respectively, from the same quarter
of 2012. Revenues from apparel decreased by 8.1% to $18.2 million from
the same quarter of 2012. During the third quarter of 2013, revenues
from small accessories and gadgets, apparel and electronics and
communication devices represented 39.2%, 26.6% and 15.0% of the
Company's net revenues, respectively, as compared to 26.9%, 38.7% and
17.8% for the same period in the prior year, respectively.
Geographically, Europe remained the Company’s largest market with strong
revenues of $40.0 million, representing a year-over-year increase of
92.2%. As a percentage of total revenues, revenues in Europe were 58.8%
in the third quarter of 2013, up from 40.8% in the same quarter of 2012.
Revenues in South America increased by 105.0% to $7.5 million in the
third quarter of 2013. As a percentage of total revenues, revenues in
South America was 11.0% in the third quarter of 2013.
Revenues in North America and other countries were $13.0 million and
$7.6 million, respectively, in the third quarter of 2013. As a
percentage of total revenues, revenues in North America and other
countries were 19.0% and 11.2% in the third quarter of 2013,
respectively.
Gross profit was $29.9 million in the third quarter of 2013,
representing an increase of 38.4% from $21.6 million in the same quarter
of 2012. The increase was driven by a significant increase in net
revenues and continued gross margin expansion as the Company continues
to optimize its product mix. Gross margin increased to 43.9% from
42.3% in the same quarter of 2012.
Total operating expenses in the third quarter of 2013 increased
by 50.0% to $33.0 million from $22.0 million in the same quarter of
2012. As a percentage of total net revenues, total operating expenses
increased to 48.4% from 43.1% in the same quarter of 2012.
-
Fulfillment expenses increased by 52.0% to $3.8 million in the
third quarter of 2013 from $2.5 million in the same quarter of 2012,
primarily reflecting the increase in sales volume and number of orders
fulfilled. As a percentage of total net revenues, fulfillment
expenses increased to 5.6% from 4.9% in the same quarter of 2012.
Selling
and marketing expenses increased by 53.8% to $21.6 million in the
third quarter of 2013 from $14.0 million in the same quarter of 2012,
reflecting the Company’s efforts on growing its customer base. While
selling and marketing expenses for the third quarter of 2013 increased
by 53.8%, the number of customers served by the Company increased by
74.7% and the number of total orders increased by 80.0% respectively
over the same period of the prior year. As a percentage of total net
revenues, selling and marketing expenses increased to 31.7% from 27.5%
in the same quarter of 2012. The Company continues to believe that its
selling and marketing expenses as a percentage of total net revenues
will decrease in the long term as the Company achieves greater
economies of scale and utilize its selling and marketing channels more
efficiently.
-
General and administrative expenses increased by 39.3% to $7.6
million in the third quarter of 2013 from $5.4 million in the same
quarter of 2012, reflecting the continued growth of the Company’s
business operations. As a percentage of total net revenues, general
and administrative expenses increased to 11.1% from 10.7% in the same
quarter of 2012.
Loss from operations in the third quarter of 2013 increased to
$3.1 million, compared to a loss from operations of $0.4 million in the
same quarter of 2012.
Adjusted loss from operations (non-GAAP), which excludes the
impact of share-based compensation expense, in the third quarter of 2013
was $2.5 million, compared to an adjusted income from operations
(non-GAAP) of $0.4 million in the same quarter of 2012.
Net loss was $2.4 million in the third quarter of 2013, compared
to a net loss of $1.0 million in the same quarter of 2012.
Net loss per ADS was $0.05, compared to a net loss per ADS of
$0.10 in the third quarter of 2012. Each ADS represents two ordinary
shares.
Adjusted net loss (non-GAAP), which excludes the impact of
share-based compensation expense, was $1.9 million or $0.04 per ADS in
the third quarter of 2013, compared to an adjusted net loss (non-GAAP)
of $0.2 million or $0.05 per ADS in the third quarter of 2012.
Adjusted loss from operations and net loss (non-GAAP) for the
three months ended September 30, 2013 excluded $0.5 million of non-cash
share-based compensation expenses.
For the quarter ended September 30, 2013, the Company’s weighted average
number of ADS used in computing loss per ADS was 49,464,423.
As of September 30, 2013, the Company had cash and cash equivalents,
term deposit and restricted cash of $103.0 million, compared to
$21.2 million as of December 31, 2012.
Net cash provided by operating activities was $1.4 million for
the three months ended September 30, 2013, compared to $2.1 million in
the same quarter of 2012.
Business Outlook
For the fourth quarter of 2013, the Company expects its net revenues to
be between $75.0 million and $77.0 million, representing a
year-over-year growth rate of approximately 15.8% to 18.9%. These
forecasts reflect the Company’s current and preliminary view on the
market and operational conditions, which are subject to change.
Conference Call
The Company will hold a conference call at 8:00 a.m. Eastern Time on
November 19, 2013 to discuss its financial results and operating
performance for the third quarter of 2013. To participate in the call,
please dial the following numbers:
US Toll Free: 1-866-519-4004
|
International: 65-6723-9381
|
Hong Kong: 800-930-346
|
China: 400-620-8038
|
Passcode: 97394822
|
A telephone replay will be available shortly after the call until
November 26, 2013 by dialing:
US Toll Free: 1-855-452-5696
|
International: 61-2-8199-0299
|
Hong Kong: 800-963-117
|
China: 400-632-2162
|
Passcode: 97394822
|
A live and archived webcast of the conference call will be available 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 lifestyle products at
attractive prices through its www.lightinthebox.com,
www.miniinthebox.com
and other websites, which are available in 27 major languages and cover
more than 80% of global Internet users. In 2012, the Company ranked
number one in terms of revenue generated from customers outside of China
among all China-based retail websites that source products from
third-party manufacturers. For more information, please visit www.lightinthebox.com.
Use of Non-GAAP Financial Measures
LightInTheBox uses non-GAAP net income/(loss), non-GAAP net
income/(loss) per basic and diluted ADS, non-GAAP income/(loss) from
operations, non-GAAP net income/(loss) margin, and non-GAAP operating
income/(loss) margin, each of which is a non-GAAP financial measure.
Non-GAAP net income/(loss) is net income/(loss) excluding share-based
compensation expenses. Non-GAAP net income/(loss) per basic and diluted
ADS is non-GAAP net income/(loss) divided by weighted average number of
basic and diluted ADS, respectively. Non-GAAP income/(loss) from
operations is income/(loss) from operations excluding share-based
compensation expenses. Non-GAAP operating income/(loss) margin is
non-GAAP income/(loss) from operations as a percentage of net revenues.
Non-GAAP net income/(loss) margin is non-GAAP net income/(loss) as a
percentage of net revenues. The Company believes that separate analysis
and exclusion of the non-cash impact of share-based compensation adds
clarity to the constituent parts of its performance. The Company reviews
these non-GAAP financial measures together with GAAP financial measures
to obtain a better understanding of its operating performance. It uses
these non-GAAP financial measures for planning, forecasting and
measuring results against the forecast. The Company believes that
non-GAAP financial measures are useful supplemental information for
investors and analysts to assess its operating performance without the
effect of non-cash share-based compensation expenses, which have been
and will continue to be significant recurring expenses in its business.
However, the use of non-GAAP financial measures has material limitations
as an analytical tool.
One of the limitations of using non-GAAP financial measures is that they
do not include all items that impact the Company’s net income/(loss) for
the period. In addition, because non-GAAP financial measures are not
measured in the same manner by all companies, they may not be comparable
to other similar titled measures used by other companies. In light of
the foregoing limitations, you should not consider non-GAAP financial
measure in isolation from or as an alternative to the financial measure
prepared in accordance with U.S. GAAP. The presentation of these
non-GAAP financial measures is not intended to be considered in
isolation from, or as a substitute for, the financial information
prepared and presented in accordance with U.S. GAAP. For more
information on these non-GAAP financial measures, please see the table
captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” at
the end of this release.
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. Condensed
Consolidated Balance Sheets (U.S. dollar in thousands,
or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012
|
|
|
As of September 30, 2013
|
|
|
|
|
(Note)
|
|
|
(Unaudited)
|
ASSETS
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
19,972
|
|
|
71,799
|
Term deposit
|
|
|
|
—
|
|
|
30,088
|
Restricted cash
|
|
|
|
1,217
|
|
|
1,125
|
Accounts receivable
|
|
|
|
249
|
|
|
275
|
Inventories, net
|
|
|
|
5,753
|
|
|
4,476
|
Prepaid expenses and other current assets
|
|
|
|
10,562
|
|
|
9,016
|
Total current assets
|
|
|
|
37,753
|
|
|
116,779
|
Property and equipment, net
|
|
|
|
1,792
|
|
|
2,989
|
Long-term deposit
|
|
|
|
293
|
|
|
496
|
TOTAL ASSETS
|
|
|
|
39,838
|
|
|
120,264
|
|
|
|
|
|
|
|
|
LIABILTIES
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
9,150
|
|
|
13,420
|
Advance from customers
|
|
|
|
7,098
|
|
|
6,699
|
Accrued expenses and other current liabilities
|
|
|
|
12,811
|
|
|
13,699
|
Convertible notes
|
|
|
|
7,788
|
|
|
—
|
Total current liabilities
|
|
|
|
36,847
|
|
|
33,818
|
TOTAL LIABILITIES
|
|
|
|
36,847
|
|
|
33,818
|
|
|
|
|
|
|
|
|
Series C convertible redeemable preferred shares
|
|
|
|
41,471
|
|
|
—
|
EQUITY
|
|
|
|
|
|
|
|
Series A convertible preferred shares
|
|
|
|
5,000
|
|
|
—
|
Series B convertible preferred shares
|
|
|
|
11,270
|
|
|
—
|
Ordinary shares
|
|
|
|
2
|
|
|
7
|
Additional paid-in capital
|
|
|
|
10,459
|
|
|
152,517
|
Accumulated deficit
|
|
|
|
(65,181)
|
|
|
(65,977)
|
Accumulated other comprehensive loss
|
|
|
|
(30)
|
|
|
(101)
|
TOTAL (DEFICIT) EQUITY
|
|
|
|
(38,480)
|
|
|
86,446
|
TOTAL LIABILITIES AND SERIES C CONVERTIBLE REDEEMABLE PREFERRED
SHARES AND (DEFICIT) EQUITY
|
|
|
|
39,838
|
|
|
120,264
|
Note: The condensed consolidated balance sheet as of December
31, 2012 is derived from the audited consolidated financial
statements of the Company as of and for the year ended December
31, 2012.
|
|
|
LightInTheBox Holding Co., Ltd. Unaudited Condensed
Consolidated Statements of Operations (U.S. dollar in
thousands, except share data and per share data, or otherwise
noted)
|
|
|
|
|
|
Three-month Period Ended
|
|
|
|
|
September 30, 2012
|
|
|
September 30, 2013
|
Net revenues
|
|
|
|
51,053
|
|
|
68,125
|
Cost of goods sold
|
|
|
|
(29,447)
|
|
|
(38,230)
|
Gross profit
|
|
|
|
21,606
|
|
|
29,895
|
Operating expenses
|
|
|
|
|
|
|
|
Fulfillment
|
|
|
|
(2,497)
|
|
|
(3,796)
|
Selling and marketing
|
|
|
|
(14,048)
|
|
|
(21,604)
|
General and administrative
|
|
|
|
(5,434)
|
|
|
(7,569)
|
Total operating expenses
|
|
|
|
(21,979)
|
|
|
(32,969)
|
Loss from operations
|
|
|
|
(373)
|
|
|
(3,074)
|
Interest (expense) income
|
|
|
|
(609)
|
|
|
653
|
Loss before income taxes
|
|
|
|
(982)
|
|
|
(2,421)
|
Income taxes expenses
|
|
|
|
—
|
|
|
(12)
|
Net loss
|
|
|
|
(982)
|
|
|
(2,433)
|
Accretion for Series C convertible redeemable preferred shares
|
|
|
|
700
|
|
|
—
|
Net loss attributable to ordinary shareholders
|
|
|
|
(1,682)
|
|
|
(2,433)
|
|
|
|
|
|
|
|
|
Weighted average numbers of shares used in calculating loss per
ordinary share
|
|
|
|
|
|
|
|
—Basic
|
|
|
|
34,986,784
|
|
|
98,928,846
|
—Diluted
|
|
|
|
34,986,784
|
|
|
98,928,846
|
|
|
|
|
|
|
|
|
Net loss per ordinary share
|
|
|
|
|
|
|
|
—Basic
|
|
|
|
(0.05)
|
|
|
(0.02)
|
—Diluted
|
|
|
|
(0.05)
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
Net loss per ADS (2 ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
|
—Basic
|
|
|
|
(0.10)
|
|
|
(0.05)
|
—Diluted
|
|
|
|
(0.10)
|
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
LightInTheBox Holding Co., Ltd. Unaudited
Reconciliations of GAAP and Non-GAAP Results (U.S.
dollar in thousands, except share data and per share data, or
otherwise noted)
|
|
|
|
|
|
|
|
|
|
Three-month Period Ended
|
|
|
|
|
September 30, 2012
|
|
|
September 30, 2013
|
Loss from operations
|
|
|
|
(373)
|
|
|
(3,074)
|
Share-based compensation expenses
|
|
|
|
753
|
|
|
542
|
Non-GAAP income (loss) from operations
|
|
|
|
380
|
|
|
(2,532)
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
(982)
|
|
|
(2,433)
|
Share-based compensation expenses
|
|
|
|
753
|
|
|
542
|
Non-GAAP net loss
|
|
|
|
(229)
|
|
|
(1,891)
|
|
|
|
|
|
|
|
|
Net loss attributable to ordinary shareholders
|
|
|
|
(1,682)
|
|
|
(2,433)
|
Share-based compensation expenses
|
|
|
|
753
|
|
|
542
|
Non-GAAP net loss attributable to ordinary shareholders
|
|
|
|
(929)
|
|
|
(1,891)
|
|
|
|
|
|
|
|
|
Non-GAAP weighted average numbers of shares used in calculating net
loss per ordinary share
|
|
|
|
|
|
|
|
—Basic
|
|
|
|
34,986,784
|
|
|
98,928,846
|
—Diluted
|
|
|
|
34,986,784
|
|
|
98,928,846
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per ordinary share
|
|
|
|
|
|
|
|
—Basic
|
|
|
|
(0.03)
|
|
|
(0.02)
|
—Diluted
|
|
|
|
(0.03)
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per ADS (2 ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
|
—Basic
|
|
|
|
(0.05)
|
|
|
(0.04)
|
—Diluted
|
|
|
|
(0.05)
|
|
|
(0.04)
|
|
|
LightInTheBox Holding Co., Ltd. Unaudited Condensed
Consolidated Statements of Cash Flows (U.S. dollar in
thousands, or otherwise noted)
|
|
|
|
|
|
Three-month Period Ended
|
|
|
|
|
September 30, 2012
|
|
|
September 30, 2013
|
Net loss
|
|
|
|
(982)
|
|
|
(2,433)
|
Adjustments to reconcile net loss to net cash provided by operating
activities
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
258
|
|
|
371
|
Share-based compensation
|
|
|
|
753
|
|
|
542
|
Amortization of debt discount
|
|
|
|
369
|
|
|
—
|
Interest on convertible notes
|
|
|
|
242
|
|
|
—
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(88)
|
|
|
(37)
|
Inventories, net
|
|
|
|
(1,732)
|
|
|
(896)
|
Prepaid expenses and other current assets
|
|
|
|
(1,399)
|
|
|
(1,096)
|
Accounts payable
|
|
|
|
4,579
|
|
|
3,138
|
Advance from customers
|
|
|
|
(772)
|
|
|
616
|
Accrued expense and other current liabilities
|
|
|
|
1,032
|
|
|
1,238
|
Long-term deposit
|
|
|
|
(111)
|
|
|
(29)
|
Cash provided by operating activities
|
|
|
|
2,149
|
|
|
1,414
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
(437)
|
|
|
(349)
|
Increase in term deposit
|
|
|
|
—
|
|
|
(30,088)
|
Decrease (increase) in restricted cash
|
|
|
|
25
|
|
|
(7)
|
Net cash used in investing activities
|
|
|
|
(412)
|
|
|
(30,444)
|
Cash flows from financing activity
|
|
|
|
|
|
|
|
Proceeds from exercise of share options
|
|
|
|
—
|
|
|
113
|
Payment of interest of convertible loan
|
|
|
|
—
|
|
|
(1,157)
|
Payment of initial public offering expenses
|
|
|
|
(42)
|
|
|
(789)
|
Net cash used in financing activities
|
|
|
|
(42)
|
|
|
(1,833)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
(1)
|
|
|
6
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
16,974
|
|
|
102,656
|
Cash and cash equivalents at end of period
|
|
|
|
18,668
|
|
|
71,799
|
Copyright Business Wire 2013