- First quarter revenue of $13.0 million, including record
quarterly recurring revenue of $8.1 million, up 15%
year-on-year
- Record backlog of $47.8 million increased 41% year-on-year
and 21% sequentially
- Total liquidity increased to $137.3 million at March 31,
2021
- Reaffirming 2021 full year revenue growth expectations of
15% – 25% based on record backlog, new product launches and
improving macroeconomic conditions
The ExOne Company (Nasdaq: XONE) (“ExOne” or the “Company”), the
global leader in industrial sand and metal 3D printers using binder
jetting technology, today reported financial results for the first
quarter ended March 31, 2021.
“The ExOne team is pleased to report record levels of both
recurring revenue and machine order backlog, which shows the
strength of our product offerings, adoption model, and momentum,”
said John Hartner, ExOne’s CEO.
“While our first quarter results reflect the difficult operating
environment that continues to persist as a result of COVID-19, we
are seeing signs of an economic rebound, particularly in the U.S.
market where we saw a higher concentration of sales and backlog
growth during the first quarter. We look forward to entering the
post-pandemic period with new tailwinds as manufacturers look to
de-risk supply chains and improve the sustainability of their
products with new designs that require our industrial 3D printing
solutions to execute.”
Other highlights for the year to-date are also driving
confidence at ExOne:
- The launch of the ExOne Metal Designlab™, through an exclusive
partnership with Rapidia, has diversified and strengthened our
metal portfolio beyond binder jetting to include our first
office-friendly bound metal 3D printer.
- ExOne’s strength as the market leader in binder jetting
materials continues to intensify, with the recent announcement that
reactive materials such as aluminum and titanium will be printable
on a controlled-atmosphere model of the X1 160Pro metal system, the
market’s largest metal binder jetting platform, in 2022.
- A significant expansion of the global sales distribution
network, including four new experienced additive sales partners
with more than 60 offices in the U.S. and Canada, and a doubling of
the sales network in Greater China. The majority of the new sales
partners will be focused on metal system sales.
- Increased investment in innovation, continuous improvement,
manufacturing capacity, and training surrounding ExOne’s
production-ready metal 3D printers. These investments include a 15%
increase in the global workforce in 2021 to support a significant
shift in manufacturing mix to a higher percentage of metal units
and to accelerate production of metal printers in an effort to more
quickly convert backlog to revenue and meet growing customer
demands.
Q1 2021 Revenue Summary
Three Months Ended
(in thousands)
March 31,
Revenue by Product Line
2021
2020
% Change
3D Printing Machines
$
4,905
38
%
$
6,317
47
%
(22%)
3D Printed and Other
Products, Materials and Services
8,116
62
%
7,066
53
%
15%
Total Revenue
$
13,021
100
%
$
13,383
100
%
(3%)
Q1 2021 Financial Results Summary
The following summarizes ExOne’s financial results for the first
quarter ended March 31, 2021:
- Revenue was $13.0 million, a decrease of 3% from a record
year-ago quarter, largely due to COVID-related installation
challenges. The decrease in revenue was driven by a 22% decrease in
revenue from 3D printing machines as a result of a decrease in
volumes (14 units in Q1 2020 compared to seven units in Q1 2021)
offset by a favorable mix of metal systems sold, with increased
sales of the X1 25Pro system in Q1 2021. The decrease in 3D
printing machine revenue was offset by an increase in recurring
revenue (3D printed and other products, materials and services) of
15% compared to the year-ago period, led by an increase in revenue
from funded research and development services, largely in support
of future production metal equipment sale opportunities, as well as
aftermarket revenue associated with the Company’s global installed
base of printers. Revenue for both product groups continued to be
impacted by COVID-19, including disruptions to domestic and
international shipping and travel, in addition to negative
macroeconomic effects, particularly in Europe and Asia.
- Gross margin was 15.4%, compared to 27.1% in the first quarter
of 2020. The decrease was primarily due to the continued impact of
operating inefficiencies and challenges driven by the COVID-19
operating environment, including unfavorable product warranty
experience, as well as low contribution margin on X1 25Pro system
sales following their initial introduction to market.
- Research and development expenses were $2.6 million, compared
to $2.5 million in the first quarter of 2020. The increase was
primarily due to additional material costs associated with systems
and materials development of binder jetting technology. This
includes the planned introduction to market of the X1 160Pro
production metal 3D printing system and InnoventPro advanced
entry-level metal 3D printing system in 2021, with inert atmosphere
processing capabilities for the X1 160Pro for high value reactive
materials to be introduced in 2022.
- Selling, general and administrative expenses were $5.9 million,
compared to $6.2 million for the first quarter of 2020. The
decrease was primarily due to lower employee and travel related
expenses as a result of COVID-19 and a net recovery for bad debts
for Q1 2021 (versus bad debt expense in Q1 2020) offset by slightly
higher consulting and professional fees between the periods.
- Net loss was $6.1 million, or $0.29 per fully diluted share,
compared with a net loss of $3.6 million, or $0.22 per fully
diluted share, in the first quarter of 2020.
- Adjusted earnings before interest, taxes, depreciation and
amortization (“Adjusted EBITDA”), a non-GAAP measure, was a loss of
$5.2 million, compared with a loss of $3.8 million in the first
quarter of 2020. Refer to the attached table captioned “Adjusted
EBITDA Reconciliation” and the section below titled “Non-GAAP
Financial Measure” for important disclosures regarding the
Company’s definition and use of Adjusted EBITDA as well as a
reconciliation of net loss (the most directly comparable measure
under accounting principles generally accepted in the United States
(“GAAP”)) to Adjusted EBITDA. ExOne management believes that, when
used in conjunction with other measures prepared in accordance with
GAAP, Adjusted EBITDA assists in the understanding of its financial
results.
- Cash, cash equivalents and restricted cash as of March 31, 2021
increased to $138.3 million, from $50.2 million at December 31,
2020. The increase was driven by cash inflows from financing
activities of $95.3 million, primarily as a result of an
underwritten public offering of common stock completed in February
2021. These inflows were offset by cash outflows from operations of
$5.9 million mostly due to the widening net loss, net of noncash
items for the period, and net cash outflows from working capital
changes driven by an increase in inventories to support expanded
contractual backlog offset by cash inflows from customers based on
timing of payments.
Outlook
ExOne CEO John Hartner commented, “With signs of a broader
economic recovery on the horizon, a record contractual backlog and
expanded product portfolio and distribution network, we see the
remainder of 2021 as the beginning of our next phase of growth.
While there are still some remaining execution challenges as a
result of COVID-19, particularly in Europe and Asia, we feel
confident that our operating plan for 2021 is well supported. In
addition, our improved liquidity position gives us the ability to
strategically invest in additional growth opportunities.”
Webcast and Conference Call
ExOne will host a conference call and live webcast on Tuesday,
May 18, 2021 at 8:30 a.m. Eastern Time. During the conference call
and webcast, management will review the financial and operating
results for the first quarter of 2021, along with ExOne’s corporate
strategies and outlook. A question-and-answer session will follow.
The teleconference can be accessed by calling (877) 407-9039 or,
for international callers, (201) 689-8470. The webcast can be
accessed on the Company’s website at www.investor.exone.com.
A telephonic replay of the conference call will be available
from 11:30 a.m. ET on the day of the teleconference through
Tuesday, May 25, 2021. To listen to a replay of the call, dial
(844) 512-2921 or, for international callers, (412) 317-6671, and
enter the conference ID number 13719543, or access the webcast
replay via the Company’s website.
Non-GAAP Financial Measure
This press release includes a non-GAAP financial measure that is
not prepared in accordance with, nor as an alternative to, GAAP. In
addition, this non-GAAP financial measure is not based on any
standardized methodology prescribed by GAAP and is not necessarily
comparable to a similarly titled measure presented by other
companies.
The table captioned “Adjusted EBITDA Reconciliation” in this
press release provides a reconciliation of net loss (the most
directly comparable GAAP measure) to Adjusted EBITDA.
ExOne defines Adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization) as net income (loss) (as calculated
under accounting principles generally accepted in the United States
(“GAAP”)) plus interest expense, provision (benefit) for income
taxes, depreciation, equity-based compensation, gain from
sale-leaseback of property and equipment and other expense (income)
– net. Use of Adjusted EBITDA, as defined under SEC rules, is
intended as a supplemental measure of ExOne’s performance that is
not required by, or presented in accordance with, GAAP. The
presentation of Adjusted EBITDA is not intended to be a substitute
for, and should not be considered in isolation from, net loss
reported in accordance with GAAP. The Company’s presentation of
Adjusted EBITDA should not be construed to imply that its future
results will be unaffected by unusual or non-recurring items.
The Company believes that Adjusted EBITDA is meaningful to its
investors to enhance their understanding of ExOne’s financial
results. Although Adjusted EBITDA is not necessarily a measure of
the Company’s ability to fund its cash needs, the Company
understands that it is frequently used by securities analysts,
investors and other interested parties as a measure of financial
performance and to compare ExOne’s performance with the performance
of other companies that report Adjusted EBITDA.
About ExOne
ExOne is the pioneer and global leader in binder jet 3D printing
technology. Since 1995, we’ve been on a mission to deliver powerful
3D printers that solve our customers’ toughest problems and enable
world-changing innovations. Our 3D printing systems quickly
transform powder materials — including metals, ceramics, composites
and sand — into precision parts, metalcasting molds and cores, and
innovative tooling solutions. Industrial customers use our
technology to save time and money, reduce waste, increase their
manufacturing flexibility, and deliver designs and products that
were once impossible. As home to the world’s leading team of binder
jetting experts, ExOne also provides specialized 3D printing
services, including on-demand production of mission-critical parts,
as well as engineering and design consulting. Learn more about
ExOne at www.exone.com or on Twitter at @ExOneCo.
Safe Harbor Regarding Forward Looking Statements
This news release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act with
respect to the Company’s future financial or business performance,
strategies, or expectations. Forward-looking statements typically
are identified by words or phrases such as “trend,” “potential,”
“opportunity,” “pipeline,” “believe,” “comfortable,” “expect,”
“anticipate,” “current,” “intention,” “estimate,” “position,”
“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,”
“seek,” “achieve,” as well as similar expressions, or future or
conditional verbs such as “will,” “would,” “should,” “could” and
“may.”
The Company cautions that forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change over
time. Forward-looking statements speak only as of the date they are
made and the Company assumes no duty to and does not undertake to
update forward-looking statements. Actual results could differ
materially from those anticipated in forward-looking statements and
future results could differ materially from historical
performance.
In addition to risk factors previously disclosed in the
Company’s filings with the U.S. Securities and Exchange Commission
(the “SEC”), including its Annual Report on Form 10-K, the
following factors, among others, could cause results to differ
materially from forward-looking statements or historical
performance: the severity and duration of world health events,
including the COVID-19 outbreak and the related economic
repercussions and operational challenges; the Company’s ability to
consistently generate operating profits; fluctuations in the
Company’s revenues and operating results; the Company’s competitive
environment and its competitive position; ExOne’s ability to
enhance its current 3D printing machines and technology and to
develop and introduce new 3D printing machines; the Company’s
ability to qualify more industrial materials in which it can print;
demand for ExOne’s products; the availability of skilled personnel;
the impact of loss of key management; the impact of customer
specific terms in machine sale agreements in determining the period
in which the Company recognizes revenue; risks related to global
operations including effects of foreign currency and COVID-19;
dependency on certain critical suppliers; nature or impact of
alliances and strategic investments; reliance on critical
information technology systems; the effect of litigation,
contingencies and warranty claims; liabilities under laws and
regulations protecting the environment; the impact of governmental
laws and regulations; operating hazards, cyberattacks, war,
terrorism and cancellation or unavailability of insurance coverage;
the impact of disruption of the Company’s manufacturing facilities
or ExOne Adoption Centers; the adequacy of ExOne’s protection of
its intellectual property; expectations regarding demand for the
Company’s industrial products, and other matters with regard to
outlook; and other factors beyond our control, including the impact
of COVID-19.
These and other important factors, including those discussed
under Item 1A, “Risk Factors” and Item 7, “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” in
the Company’s Annual Report on Form 10-K, and under Part I, Item 2,
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the Company’s Quarterly Report on Form
10-Q for the quarter ended March 31, 2021, may cause the Company’s
actual results of operations to differ materially from any future
results of operations expressed or implied by the forward-looking
statements contained therein. Before making a decision to purchase
ExOne common stock, you should carefully consider all of the
factors identified in its Annual Report on Form 10-K and Quarterly
Report on Form 10-Q that could cause actual results to differ from
these forward-looking statements.
FINANCIAL TABLES FOLLOW.
The ExOne Company
Condensed Statement of
Consolidated Operations and Comprehensive Loss (Unaudited)
(in thousands, except
per-share amounts)
Three Months Ended
March 31,
2021
2020
Revenue
$
13,021
$
13,383
Cost of sales
11,021
9,754
Gross profit
2,000
3,629
Operating expenses
Research and development
2,624
2,476
Selling, general and administrative
5,893
6,163
Gain from sale-leaseback of property and
equipment
—
(1,462
)
8,517
7,177
Loss from operations
(6,517
)
(3,548
)
Other expense (income)
Interest expense
160
64
Other (income) expense – net
(125
)
(190
)
35
(126
)
Loss before income taxes
(6,552
)
(3,422
)
(Benefit) provision for income
taxes
(412
)
226
Net loss
$
(6,140
)
$
(3,648
)
Net loss per common share:
Basic
$
(0.29
)
$
(0.22
)
Diluted
$
(0.29
)
$
(0.22
)
Comprehensive loss:
Net loss
$
(6,140
)
$
(3,648
)
Other comprehensive loss:
Foreign currency translation
adjustments
(1,120
)
(838
)
Comprehensive loss
$
(7,260
)
$
(4,486
)
The ExOne Company
Condensed Consolidated Balance
Sheet (Unaudited)
(in thousands, except
per-share and share amounts)
March 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
137,321
$
49,668
Restricted cash
955
508
Accounts receivable – net
4,825
5,225
Current portion of net investment in
sales-type leases – net
233
229
Inventories – net
23,015
20,562
Prepaid expenses and other current
assets
6,724
4,451
Total current assets
173,073
80,643
Property and equipment – net
21,429
21,300
Operating lease right-of-use assets
3,429
4,043
Net investment in sales-type leases – net
of current portion – net
449
509
Other noncurrent assets
460
794
Total assets
$
198,840
$
107,289
Liabilities
Current liabilities:
Current portion of long-term debt
$
1,949
$
1,622
Current portion of operating lease
liabilities
1,897
1,958
Accounts payable
6,158
4,501
Accrued expenses and other current
liabilities
5,452
4,978
Current portion of contract
liabilities
14,877
13,586
Total current liabilities
30,333
26,645
Long-term debt – net of current
portion
245
1,783
Operating lease liabilities – net of
current portion
1,532
2,085
Contract liabilities – net of current
portion
248
159
Other noncurrent liabilities
258
314
Total liabilities
32,616
30,986
Contingencies and commitments
Stockholders' equity
Common stock, $0.01 par value, 200,000,000
shares authorized,
22,030,401 (2021) and 20,009,157 (2020)
shares issued and
outstanding
220
200
Additional paid-in capital
315,274
218,113
Accumulated deficit
(138,012
)
(131,872
)
Accumulated other comprehensive loss
(11,258
)
(10,138
)
Total stockholders' equity
166,224
76,303
Total liabilities and stockholders'
equity
$
198,840
$
107,289
The ExOne Company
Condensed Statement of
Consolidated Cash Flows (Unaudited)
(in thousands)
Three Months Ended
March 31,
2021
2020
Operating activities
Net loss
$
(6,140
)
$
(3,648
)
Adjustments to reconcile net loss to net
cash used for operations:
Depreciation
993
923
Equity-based compensation
282
292
Amortization of debt issuance costs
7
19
(Recoveries) provision for bad debts –
net
(47
)
51
Provision for slow-moving, obsolete and
lower of cost or
net realizable value inventories – net
129
22
Foreign exchange gains on intercompany
transactions – net
(136
)
(165
)
Gain from sale-leaseback of property and
equipment
—
(1,462
)
Deferred income taxes
—
195
Loss on extinguishment of debt
119
—
Changes in assets and liabilities,
excluding effects of foreign currency
translation adjustments:
Decrease in accounts receivable
311
1,487
Decrease (increase) in net investment in
sales-type leases
56
(50
)
Increase in inventories
(3,500
)
(2,146
)
Increase in prepaid expenses and other
assets
(1,389
)
(674
)
Increase (decrease) in accounts
payable
1,549
(1,408
)
Increase (decrease) in accrued expenses
and other liabilities
395
(24
)
Increase in contract liabilities
1,468
1,849
Net cash used for operating
activities
(5,903
)
(4,739
)
Investing activities
Capital expenditures
(1,067
)
(338
)
Proceeds from sale of property and
equipment
—
16,228
Net cash (used for) provided by
investing activities
(1,067
)
15,890
Financing activities
Payments on long-term debt
(1,226
)
(39
)
Proceeds from exercise of employee stock
options
1,100
—
Proceeds from common stock offerings, net
of issuance costs
95,446
—
Other
(6
)
(3
)
Net cash provided by (used for)
financing activities
95,314
(42
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(244
)
(31
)
Net change in cash, cash equivalents, and
restricted cash
88,100
11,078
Cash, cash equivalents, and restricted
cash at beginning of period
50,176
6,243
Cash, cash equivalents, and restricted
cash at end of period
$
138,276
$
17,321
Supplemental disclosure of noncash
investing and financing activities
Transfer of internally developed 3D
printing machines from inventories to
property and equipment for internal use or
leasing activities
$
975
$
852
Transfer of internally developed 3D
printing machines from property
and equipment to inventories for sale
$
629
$
823
Property and equipment included in
accounts payable
$
310
$
56
Common stock offering issuance costs
included in accounts payable
$
158
$
—
Unsettled proceeds from exercise of
employee stock options included in
prepaid expenses and other current
assets
$
340
$
—
Debt issuance costs included in accounts
payable
$
—
$
41
The ExOne Company
Adjusted EBITDA Reconciliation
(Unaudited)
(in millions)
Three Months Ended
March 31,
2021
2020
Net loss
$
(6.1
)
$
(3.6
)
Interest expense
0.1
0.1
(Benefit) provision for income taxes
(0.4
)
0.2
Depreciation
1.0
0.9
Equity-based compensation
0.3
0.3
Gain from sale-leaseback of property and
equipment
—
(1.5
)
Other (income) expense – net
(0.1
)
(0.2
)
Adjusted EBITDA
$
(5.2
)
$
(3.8
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210517005856/en/
Doug Zemba Chief Financial Officer (724) 765-1331
douglas.zemba@exone.com Monica Gould Investor Relations (212)
871-3927 investor.relations@exone.com
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