Materialise NV (NASDAQ:MTLS), a leading provider of additive
manufacturing and medical software and of sophisticated 3D printing
services, today announced its financial results for the first
quarter ended March 31, 2021.
Highlights – First Quarter 2021
- Total revenue was 45,554 kEUR for the first quarter of 2021,
compared to 46,245 kEUR for the 2020 period.
- Total deferred revenues from annual software sales and
maintenance fees increased 1,888 kEUR to 32,130 kEUR compared to
December 31, 2020.
- Adjusted EBITDA was 5,341 kEUR for the first quarter of 2021
compared to 3,603 kEUR for the 2020 period.
- Net loss for the first quarter of 2021 was (3,667) kEUR, or
(0.07) EUR per diluted share, compared to (2,899) kEUR, or (0.05)
EUR per diluted share, for the 2020 period.
- Total cash was 107,568 kEUR at the end of the quarter; net debt
was 2,960 kEUR, an improvement of 612 kEUR compared to December 31,
2020.
Executive Chairman Peter Leys commented, “While the global
economy was still significantly impacted by the COVID-19 pandemic,
Materialise performed well. We continued to bounce back, and our
revenue came close to the level of the first quarter of 2020, which
predated the pandemic. We are particularly encouraged by the fact
that, alongside the revenue growth of Materialise Medical, which
has been performing very strongly since Q3 2020, Materialise
Software also posted growth this quarter. Our Adjusted EBITDA was a
solid 5,341 kEUR, a 48.2% increase compared to the same period last
year. In addition to our good financial performance during the past
quarter, we took an important step to secure our growth in the
longer term through the acquisition of an option to buy Link3D, a
developer of AM manufacturing execution systems.”
First Quarter 2021 Results
Total revenue for the first quarter of 2021 was 45,554 kEUR, a
decrease of 1.5% compared to 46,245 kEUR for the first quarter of
2020. Adjusted EBITDA increased 48.2% to 5,341 kEUR from 3,603
kEUR. The Adjusted EBITDA margin (Adjusted EBITDA divided by total
revenue) for the first quarter of 2021 increased to 11.7% from 7.8%
for the first quarter of 2020.
Revenue from our Materialise Software segment increased 4.1% to
10,219 kEUR for the first quarter of 2021 from 9,821 kEUR for the
same quarter last year. Segment EBITDA increased 29.6% to 3,429
kEUR from 2,645 kEUR while the segment EBITDA margin increased to
33.6% from 26.9% for the prior-year period.
Revenue from our Materialise Medical segment increased 3.7% to
16,231 kEUR for the first quarter of 2021 compared to 15,645 kEUR
for the same period in 2020. Segment EBITDA increased 85.0% to
4,541 kEUR compared to 2,455 kEUR while the segment EBITDA margin
increased to 28.0% from 15.7% for the first quarter of 2020.
Revenue from our Materialise Manufacturing segment was 19,114
kEUR for the first quarter of 2021, a decrease of 8.2% from 20,815
kEUR for the first quarter of 2020. Segment EBITDA decreased to
(144) kEUR from 1,118 kEUR while the segment EBITDA margin was
(0.8)% compared to 5.4% % for the first quarter of 2020.
Gross profit remained stable at 24,568 kEUR compared to 24,585
kEUR for the same period last year, while the gross profit margin
increased to 53.9% of total revenue from 53.2% for the first
quarter of 2020.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
decreased, in the aggregate, 3.6% to 25,398 kEUR for the first
quarter of 2021 from 26,351 kEUR for the first quarter of 2020.
Net other operating income was 1,120 kEUR compared to 683 kEUR
for the first quarter of 2020.
Operating result increased to 290 kEUR from (1,084) kEUR for the
first quarter of 2020.
Net financial result was (4,112) kEUR compared to (1,321) kEUR
for the first quarter of 2020. Excluding the impairment of our loan
position in Ditto for an amount of (3,201) kEUR, net financial
result was (911) kEUR.
The first quarter of 2021 contained income tax expenses of 155
kEUR, compared to (457) kEUR in the first quarter of 2020.
As a result of the above, net loss for the first quarter of 2021
was (3,667) kEUR, compared to (2,899) kEUR for the same period in
2020. Total comprehensive income for the first quarter of 2021,
which includes exchange differences on translation of foreign
operations, was (6,996) kEUR compared to 284 kEUR for the 2020
period.
At March 31, 2021, we had cash and cash equivalents of 107,568
kEUR compared to 111,538 kEUR at December 31, 2020. Gross debt
amounted to 110,527 kEUR, compared to 115,110 kEUR at December 31,
2020. As a result, our net debt position (gross debt less cash and
cash equivalents) was (2,960) kEUR, an improvement of 612 kEUR
compared to December 31, 2020.
Cash flow from operating activities for the first quarter of
2021 was 4,231 kEUR compared to 7,273 kEUR for the same period in
2020. Total capital expenditures for the first quarter of 2021
amounted to 2,011 kEUR.
Net shareholders’ equity at March 31, 2021 was 129,961 kEUR
compared to 133,104 kEUR at December 31, 2020.
2021 Guidance
Mr. Leys concluded, “In the second quarter of 2021, we currently
expect that our consolidated revenues will continue to grow
sequentially, with the potential to be up to 10% higher than in
this year’s first quarter. As our business gradually recovers from
the crisis, we also intend to gradually increase expenditures in
our growth initiatives, which will also impact our Adjusted EBITDA.
We are cautiously optimistic that the positive trend we have been
seeing in the first months of the year will continue throughout the
rest of 2021, but in view of the unpredictability of the COVID-19
crisis, our visibility remains too uncertain to provide
quantitative guidance for the full year of 2021.”
Non-IFRS Measures
Materialise uses EBITDA and Adjusted EBITDA as supplemental
financial measures of its financial performance. EBITDA is
calculated as net profit plus income taxes, financial expenses
(less financial income), shares of profit or loss in a joint
venture and depreciation and amortization. Adjusted EBITDA is
determined by adding share-based compensation expenses,
acquisition-related expenses of business combinations, impairments
and revaluation of fair value due to business combinations to
EBITDA. Management believes these non-IFRS measures to be important
measures as they exclude the effects of items which primarily
reflect the impact of long-term investment and financing decisions,
rather than the performance of the company’s day-to-day operations.
As compared to net profit, these measures are limited in that they
do not reflect the periodic costs of certain capitalized tangible
and intangible assets used in generating revenues in the company’s
business, or the charges associated with impairments. Management
evaluates such items through other financial measures such as
capital expenditures and cash flow provided by operating
activities. The company believes that these measurements are useful
to measure a company’s ability to grow or as a valuation
measurement. The company’s calculation of EBITDA and Adjusted
EBITDA may not be comparable to similarly titled measures reported
by other companies. EBITDA and Adjusted EBITDA should not be
considered as alternatives to net profit or any other performance
measure derived in accordance with IFRS. The company’s presentation
of EBITDA and Adjusted EBITDA should not be construed to imply that
its future results will be unaffected by unusual or non-recurring
items.
Exchange Rate
This document contains translations of certain euro amounts into
U.S. dollars at specified rates solely for the convenience of
readers. Unless otherwise noted, all translations from euros to
U.S. dollars in this document were made at a rate of EUR 1.00 to
USD 1.1725, the reference rate of the European Central Bank on
March 31, 2021.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the first quarter of 2021 on
Thursday, April 29, 2021, at 8:30 a.m. ET/2:30 p.m. CET. Company
participants on the call will include Wilfried Vancraen, Founder
and Chief Executive Officer; Peter Leys, Executive Chairman; and
Johan Albrecht, Chief Financial Officer. A question-and-answer
session will follow management’s remarks.
- To access the conference call, please dial 844-469-2530 (U.S.)
or 765-507-2679 (international), passcode 6683847#.
The conference call will also be broadcast live over the
Internet with an accompanying slide presentation, which can be
accessed on the company’s website at
http://investors.materialise.com. A webcast of the conference call
will be archived on the company's website for one year.
About Materialise
Materialise incorporates 30 years of 3D printing experience into
a range of software solutions and 3D printing services, which form
the backbone of the 3D printing industry. Materialise’s open and
flexible solutions enable players in a wide variety of industries,
including healthcare, automotive, aerospace, art and design, and
consumer goods, to build innovative 3D printing applications that
aim to make the world a better and healthier place. Headquartered
in Belgium, with branches worldwide, Materialise combines one of
the largest groups of software developers in the industry with one
of the largest 3D printing facilities in the world. For additional
information, please visit: www.materialise.com.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding, among other things, our intentions, beliefs,
assumptions, projections, outlook, analyses or current
expectations, plans, objectives, strategies and prospects, both
financial and business, including statements concerning, among
other things, our results of operations, cash needs, capital
expenditures, expenses, financial condition, liquidity, prospects,
growth and strategies (including how our business, results of
operations and financial condition could be impacted by the
COVID-19 pandemic and related public health measures, as well as
the related actions we are taking in response), and the trends and
competition that may affect the markets, industry or us. Such
statements are subject to known and unknown uncertainties and
risks. When used in this press release, the words “estimate,”
“expect,” “anticipate,” “project,” “plan,” “intend,” “believe,”
“forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and
variations of such words or similar expressions are intended to
identify forward-looking statements. These forward-looking
statements are based upon the expectations of management under
current assumptions at the time of this press release. These
expectations, beliefs and projections are expressed in good faith
and the company believes there is a reasonable basis for them.
However, the company cannot offer any assurance that our
expectations, beliefs and projections will actually be achieved. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events, competitive dynamics
and industry change, and depend on economic circumstances that may
or may not occur in the future or may occur on longer or shorter
timelines than anticipated. We caution you that forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors that are
in some cases beyond our control. All of the forward-looking
statements are subject to risks and uncertainties that may cause
the company's most recent actual results to differ materially from
our expectations, including risk factors described in the company's
most recent annual report on Form 20-F filed with the U.S.
Securities and Exchange Commission. There are a number of risks and
uncertainties that could cause the company's actual results to
differ materially from the forward-looking statements contained in
this press release.
The company is providing this information as of the date of this
press release and does not undertake any obligation to update any
forward-looking statements contained in this press release as a
result of new information, future events or otherwise, unless it
has obligations under the federal securities laws to update and
disclose material developments related to previously disclosed
information.
Consolidated income statements (Unaudited)
For the three month period
ended
March 31,
in 000€, except for share data
2021
2021
2020(*)
U.S.$
€
€
Revenue
53,412
45,554
46,245
Cost of sales
(24,606)
(20,986)
(21,660)
Gross profit
28,806
24,568
24,585
Research and development expenses
(7,663)
(6,536)
(6,527)
Sales and marketing expenses
(13,261)
(11,310)
(12,627)
General and administrative expenses
(8,855)
(7,552)
(7,197)
Net other operating income
1,313
1,120
683
Operating profit
340
290
(1,084)
Financial expenses
(5,512)
(4,701)
(1,820)
Financial income
691
589
500
Share in loss of joint venture, after
tax
−
−
(39)
Profit (loss) before taxes
(4,481)
(3,822)
(2,443)
Income taxes
182
155
(457)
Net profit (loss) for the year
(4,299)
(3,667)
(2,899)
Net profit (loss) attributable to:
−
The owners of the parent
(4,300)
(3,667)
(2,841)
Non-controlling interest
−
−
(58)
Earnings per share attributable to the
owners of the parent
Basic
(0.08)
(0.07)
(0.05)
Diluted
(0.08)
(0.07)
(0.05)
* The quarter ended March 31, 2020 has
been restated to reflect the final accounting of the business
combination with Engimplan. Impact on operating result of (47)
kEUR
Consolidated statements of
comprehensive income (Unaudited)
For the three month period
ended
March 31,
in 000€
2021
2020(*)
Net profit (loss) for the
quarter
(3,667)
(2,899)
Other comprehensive income
(loss)
Recycling
Exchange differences on translation of
foreign operations
492
(4,157)
Non-recycling
Fair value adjustment through OCI - Equity
instruments
−
−
Other comprehensive income (loss), net
of taxes
492
(4,157)
Total comprehensive income (loss) for
the quarter, net of taxes
(3,175)
(7,056)
Total comprehensive income (loss)
attributable to:
The owners of the parent
(3,175)
(6,353)
Non-controlling interest
−
(703)
* The quarter ended March 31, 2020 has
been restated to reflect the final accounting of the business
combination with Engimplan. Impact on operating result of (47)
kEUR
Consolidated statement of financial
position (Unaudited)
As of
March 31,
As of
December 31,
in 000€
2021
2020
Assets
Non-current assets
Goodwill
20,572
20,342
Intangible assets
32,457
32,981
Property, plant & equipment
86,435
88,267
Right-of-use assets
10,436
10,996
Investments in joint ventures
−
−
Deferred tax assets
264
201
Investments in convertible loans
3,955
6,203
Investments in non-listed equity
instruments
3,842
3,842
Other non-current assets
3,969
4,093
Total non-current assets
161,930
166,925
Current assets
Inventories and contracts in progress
10,292
10,043
Trade receivables
31,899
30,871
Other current assets
8,472
8,290
Cash and cash equivalents
107,568
111,538
Total current assets
158,231
160,742
Total assets
320,162
327,667
As of
March 31,
As of
December 31,
in 000€
2021
2020
Equity and liabilities
Equity
Share capital
4,096
4,096
Share premium
141,306
141,274
Retained Earnings
(11,062)
(7,395)
Other reserves
(4,379)
(4,871)
Equity attributable to the owners of
the parent
129,961
133,104
Non-controlling interest
−
−
Total equity
129,961
133,104
Non-current liabilities
Loans & borrowings
84,669
90,502
Lease liabilities
6,689
7,086
Deferred tax liabilities
6,450
6,805
Deferred income
4,948
5,327
Other non-current liabilities
604
398
Total non-current liabilities
103,360
110,118
Current liabilities
Loans & borrowings
15,841
13,984
Lease liabilities
3,328
3,539
Trade payables
19,024
17,698
Tax payables
977
974
Deferred income
32,692
29,555
Other current liabilities
14,979
18,695
Total current liabilities
86,841
84,445
Total equity and liabilities
320,162
327,667
Consolidated statement of cash flows (Unaudited)
For the three month period
ended
March 31,
in 000€
2021
2020
Operating activities
Net profit (loss) for the quarter
(3,667)
(2,899)
Non-cash and operational adjustments
−
Depreciation of property, plant &
equipment
3,803
3,646
Amortization of intangible assets
1,277
1,115
Impairment of goodwill and (in)tangible
assets
−
−
Share-based payment expense
(415)
(75)
Loss (gain) on disposal of property, plant
& equipment
(32)
108
Movement in provisions
−
(3)
Movement in reserve for bad debt and slow
moving inventory
(2)
241
Financial income
(589)
(500)
Financial expense
4,701
1,821
Impact of foreign currencies
18
2
Share in loss of joint venture (equity
method)
−
39
Income taxes and deferred taxes
(156)
457
Fair value adjustment
−
−
Other
−
−
Working capital adjustment and income
tax paid
Decrease (increase) in trade receivables
and other receivables
(931)
1,581
Decrease (increase) in inventories and
contracts in progress
(329)
(4)
Increase in trade payables and other
payables
400
2,300
Income tax paid
−
(589)
Interest received
153
33
Net cash flow from operating
activities
4,231
7,273
For the three month period
ended
March 31,
in 000€
2021
2020
Investing activities
Purchase of property, plant &
equipment
(1,242)
(2,567)
Purchase of intangible assets
(768)
(478)
Proceeds from the sale of property, plant,
equipment and intangibles (net)
183
70
Acquisition of subsidiary (net of
cash)
−
−
Investments in joint-ventures / shares
−
−
Convertible loan granted
(1,122)
(300)
Other equity investments in non-listed
entities
−
−
Interest received
−
−
Net cash flow used in investing
activities
(2,949)
(3,275)
Financing activities
Proceeds from loans & borrowings
−
−
Repayment of loans & borrowings
(3,918)
(2,585)
Repayment of leases
(1,066)
(1,024)
Capital increase in parent company
−
−
Direct attributable expense capital
increase
−
−
Interest paid
(536)
(634)
Other financial income (expense), net
136
(138)
Net cash flow from financing
activities
(5,384)
(4,381)
Net increase/(decrease) of cash and
cash equivalents
(4,102)
(383)
Cash and cash equivalents at beginning of
the quarter
111,538
128,897
Exchange rate differences on cash and cash
equivalents
132
(1,379)
Cash and cash equivalents at end of the
quarter
107,568
127,135
Reconciliation of Net Profit (Loss) to
EBITDA and Adjusted EBITDA (Unaudited)
For the three months
ended
March 31,
in 000€
2021
2020 (*)
Net profit (loss)
(3,667)
(2,899)
Income taxes
(155)
457
Financial expenses
4,701
1,820
Financial income
(589)
(500)
Depreciation and amortization
5,081
4,760
Share in loss of joint venture
−
39
EBITDA (unaudited)
5,371
3,677
Share-based compensation expense (1)
(415)
(75)
Acquisition-related expenses business
combinations
385
−
Adjusted EBITDA (unaudited)
5,341
3,602
(1)
Share-based compensation expenses
represent the cost of equity-settled and cash-settled share-based
payments to employees.
(2)
Acquisition-related expenses of business combinations
represent expenses incurred in connection with the acquisition of
our option to buy Link3D.
* The quarter ended March 31, 2020 has
been restated to reflect the final accounting of the business
combination with Engimplan. Impact on operating result of (47)
kEUR
Segment P&L (Unaudited)
in 000€
Materialise
Software
Materialise
Medical
Materialise
Manufacturing
Total
segments
Unallocated
(1) (2)
Consolidated
For the three month period ended March
31, 2021
Revenues
10,219
16,231
19,114
45,564
(11)
45,553
Segment Adjusted EBITDA
3,429
4,541
(144)
7,826
(2,486)
5,341
Segment Adjusted EBITDA %
33.6%
28.0%
-0.8%
17.2%
−
11.7%
For the three month period ended March
31, 2020
Revenues
9,821
15,645
20,815
46,281
(36)
46,245
Segment Adjusted EBITDA
2,645
2,455
1,118
6,218
(2,615)
3,603
Segment Adjusted EBITDA %
26.9%
15.7%
5.4%
13.4%
−
7.8%
(1)
Unallocated Revenues consist of
occasional one-off sales by our core competencies not allocated to
any of our segments.
(2)
Unallocated segment EBITDA
consists of corporate research and development, corporate
headquarter costs and other operating income (expense), and the
added share-based compensation expenses and acquisition related
expenses of business combinations that are included in Adjusted
EBITDA.
* The quarter ended March 31, 2020 has been restated to reflect the
final accounting of the business combination with Engimplan. Impact
on operating result of (47) kEUR
Reconciliation of Net Profit (Loss) to
Segment EBITDA (Unaudited)
For the three months
ended
March 31,
in 000€
2021
2020
Net profit (loss) for the
period
(3,667)
(2,899)
Income taxes
(155)
457
Financial cost
4,701
1,820
Financial income
(589)
(500)
Share in loss of joint venture
−
39
Operating profit
290
(1,083)
Depreciation and amortization
5,081
4,760
Corporate research and development
692
747
Corporate headquarter costs
2,648
2,368
Other operating (income) expense
(855)
(575)
Segment EBITDA (unaudited)
7,856
6,217
* The quarter ended March 31, 2020 has
been restated to reflect the final accounting of the business
combination with Engimplan. Impact on operating result of (47)
kEUR.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210429005092/en/
Investor Relations Harriet Fried LHA 212.838.3777
hfried@lhai.com
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