Boxlight Corporation (NASDAQ:BOXL) Q4 2023 Earnings Call Transcript

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Greg Wiggins: Yeah. So, I think on a go-forward basis on a full run rate after we start to achieve these operating expense reductions that we plan to put in place this year, our goal is to achieve an adjusted EBITDA margin north of 10%, sustain a margin north of 10%, which we think is able to be accomplished. And a lot of the operating expense reductions we want to put in place this year are based, as we’ve noted on the call, at a flat year-over-year revenue. We expect this to be an industry that we’ll experience some modest growth over time, but even on a flat revenue basis, we think with these operating expense reductions, all things being considered, we can achieve a double-digit EBITDA margin and sustain that going forward.

Jack Vander Aarde: Okay, great. That’s helpful. And then maybe just one more question for me, just because there’s a press release on it and everything. Dale, can you touch on the new Clevertouch headquarters and warehouse? I believe it was some of the press releases, it’s much larger, 35% bigger. Just how does that impact sort of — I guess that plays nicely into — you guys are going through cost cutting initiatives and you expect growth to pick up down the road. What was the decision behind that? And is that fair to say it kind of validates or reinforces your confidence in growth to pick up in the back half of the year just down the road so you can satisfy it? Thanks.

Dale Strang: Yeah, sure. The place is — I was happy enough to be there I think on the second day we were open, and it’s really — it’s a vast improvement of what we had before. And most of that is just on consolidation and efficiency. Just if you’ve ever run a warehouse, which I have not, but I’ve spoken with people who have, just the ease with which repetitive tasks can be repeated, can really add up to a lot of logistical improvements. And this is a state-of-the-art warehouse with plenty of room for ebbs and flows of inventory levels. Infrastructure-wise, it’s placed ideally near the transportation centers there outside of London. And it’s also a more effective workplace for the people compared to — for our staff members compared to the prior place. So, we’re excited about it. We think it benefits both of efficiency and in terms of kind of productivity, if you will. But we committed to it based on the expectation of future growth and we’re set for that.

Jack Vander Aarde: Okay. Great. That’s it for me guys. Thank you.

Operator: Thank you. There were no other questions at this time. I would now like to hand the call back to Dale Strang for closing remarks.

Dale Strang: Well, thank you everyone for your support and for joining us today on our fourth quarter 2023 conference call. As I mentioned, the pieces for meaningful improvement are in place. We have a clear understanding of the challenges we need to address and a plan in place to drive improvements. I’m Incredibly proud of the team for responding to the challenges and operating with both professionalism as well as energy and creativity. And we look forward to speaking to you again in May, when we report our Q1 2024 results.

Operator: Thank you. This does conclude today’s conference. You may disconnect your lines at this time. Have a wonderful day. Thank you for your participation.

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