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, 2019.
Highlights – First Quarter 2019
- Total revenue increased 7.3% to 47,115
kEUR for the first quarter of 2019 from 43,899 kEUR for the first
quarter of 2018.
- Total deferred revenue from annual
software sales and maintenance contracts increased by 2,305 kEUR to
24,911 kEUR from 22,606 kEUR at the end of 2018.
- Adjusted EBITDA increased 12% from the
first quarter of 2018 to 5,829 kEUR for the first quarter of
2019.
- Net loss for the first quarter of 2019
was (304) kEUR, or (0.01) EUR per diluted share, compared to (183)
kEUR, or 0.00 EUR per diluted share, over the same period last
year.
Executive Chairman Peter Leys commented, “In the year’s opening
quarter, all three of our segments performed well. Materialise
Software and Materialise Medical, which continue to invest in both
sales and marketing and research and development, combined healthy
double-digit revenue growth rates with solid double-digit EBITDA
margins. In spite of the continuing macro-economic uncertainties,
in particular in the automotive sector, Materialise Manufacturing
also realized growth, both in terms of revenue and, more
significantly, in terms of EBITDA. We believe we are on track to
meet our financial guidance for 2019.”
First Quarter 2019 Results
Total revenue for the first quarter of 2019 increased 7.3% to
47,115 kEUR compared to 43,899 kEUR for the first quarter of 2018.
Adjusted EBITDA increased to 5,829 kEUR from 5,224 kEUR. The
Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue)
in the first quarter of 2019 was 12.4% compared to 11.9% in the
first quarter of 2018.
Revenue from our Materialise Software segment increased 12.3% to
9,350 kEUR for the first quarter of 2019 from 8,326 kEUR for
the same quarter last year. Segment EBITDA increased to 2,961 kEUR
from 2,324 kEUR while the segment EBITDA margin (the segment's
EBITDA divided by the segment's revenue) was 31.7% compared to
27.9% in the prior-year period.
Revenue from our Materialise Medical segment increased 13.6% to
13,566 kEUR for the first quarter of 2019 compared to 11,946 kEUR
for the same period in 2018. Compared to the same quarter in 2018,
revenues from medical devices and services grew 15.8%, and revenues
from our medical software grew 9.4%. Segment EBITDA was 1,773 kEUR
compared to 2,060 kEUR while the segment EBITDA margin decreased to
13.1% from 17.2% in the first quarter of 2018.
Revenue from our Materialise Manufacturing segment increased
2.3% to 24,184 kEUR for the first quarter of 2019 from 23,632 kEUR
for the first quarter of 2018. Segment EBITDA increased to 3,695
kEUR from 3,133 kEUR while the segment EBITDA margin increased to
15.3% from 13.3% for the same quarter in 2018.
Gross profit was 25,579 kEUR, or 54.3% of total revenue, for the
first quarter of 2019 compared to 23,955 kEUR, or 54.6% of total
revenue, for the first quarter of 2018.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
increased, in the aggregate, 8.5% to 25,361 kEUR for the first
quarter of 2019 from 23,374 kEUR for the first quarter of 2018.
Net other operating income increased by 709 kEUR to 1,258 kEUR
compared to 549 kEUR for the first quarter of 2018.
Operating result increased 30.6% to 1,476 kEUR from 1,130 kEUR
for the same period in the prior year.
Net financial result was (592) kEUR compared to
(710) kEUR for the prior-year period. The share in loss of
joint venture amounted to (123) kEUR from (103) kEUR for the same
period last year.
The first quarter of 2019 contained income tax expenses of
(1,065) kEUR, compared to (500) kEUR in the first quarter of 2018.
The decrease of 565 kEUR primarily reflects the change in deferred
taxes from an income of 320 kEUR as at March 31, 2018 to an expense
of 290 kEUR as at March 31, 2019.
As a result of the above, net loss for the first quarter of 2019
was (304) kEUR, compared to (183) kEUR for the same period in 2018.
Total comprehensive income for the first quarter of 2019, which
includes exchange differences on translation of foreign operations,
was 284 kEUR compared to a loss of (278) kEUR for the same period
in 2018.
At March 31, 2019, we had cash and equivalents of 111,052 kEUR
compared to 115,506 kEUR at December 31, 2018. Cash flow from
operating activities for the first quarter of 2019 was 4,081 kEUR
compared to 6,200 kEUR in 2018. As a result of the implementation
of the new accounting standard IFRS 16, we have recognized
additional lease assets and liabilities for an amount of 4,998 kEUR
at January 1, 2019. Our Adjusted EBITDA for the first quarter of
2019 was affected positively by this new standard from the rental
payments decrease of 596 kEUR, but our operating profit was not
impacted as the depreciation expenses increased by the same
amount.
Net shareholders’ equity at March 31, 2019 was 136,377 kEUR
compared to 135,989 kEUR at December 31, 2018.
2019 Guidance
As detailed in the company’s year-end fiscal 2018 earnings
announcement, in fiscal 2019, management expects to report
consolidated revenue between 196,000 - 204,000 kEUR and Adjusted
EBITDA between 29,000 - 33,000 kEUR. Management also expects the
amount of deferred revenue the company generates from annual
licenses and maintenance in 2019 to increase by an amount between
2,000 - 4,000 kEUR as compared to 2018. Reflecting the usual
seasonality of the company’s business, Materialise expects its
financial performance to be weighted towards the second half of
2019.
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 loss in a joint venture and
depreciation and amortization. Adjusted EBITDA is determined by
adding non-cash stock-based compensation expenses and
acquisition-related expenses of 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 1.1235, the reference rate of the European Central Bank on
March 29, 2019.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the first quarter of 2019 on
Tuesday, April 30, 2019, 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 #4573367. 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 more than 25 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, current estimates of fiscal 2019 revenues, deferred
revenue from annual licenses and maintenance and Adjusted EBITDA,
results of operations, cash needs, capital expenditures, expenses,
financial condition, liquidity, prospects, growth and strategies
(including our strategic priorities for 2019), 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 actual results to differ materially from our
expectations, including risk factors described in the company's
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 months endedMarch
31,
For the three months endedMarch
31,
In 000 2019 2019 2018 2019
2018
U.S.$ € € € €
Revenue 52,934 47,115 43,899 47,115
43,899 Cost of sales (24,195 ) (21,536 ) (19,944 ) (21,536 )
(19,944 )
Gross profit 28,739 25,579
23,955 25,579 23,955 Gross profit as % of
revenue 54,3 % 54,3 % 54.6 % 54,3 % 54.6 % Research and
development expenses (6,388 ) (5,686 ) (5,615 ) (5,686 ) (5,615 )
Sales and marketing expenses (13,571 ) (12,079 ) (10,599 ) (12,079
) (10,599 ) General and administrative expenses (8,534 ) (7,596 )
(7,160 ) (7,596 ) (7,160 ) Net other operating income (expenses)
1,412 1,258 549 1,258 549
Operating (loss) profit
1,658 1,476 1,130 1,476 1,130
Financial expenses (1,344 ) (1,196 ) (1,550 ) (1,196 )
(1,550 ) Financial income 679 604 840 604 840 Share in loss of
joint venture (139 ) (123 ) (103 ) (123 ) (103 )
(Loss) profit
before taxes 854 761 317 761
317 Income taxes (1,196 ) (1,065 ) (500 ) (1,065 )
(500 )
Net (loss) profit for the period (342 )
(304 ) (183 ) (304 )
(183 ) Net (loss) profit attributable to: The owners
of the parent (342 ) (304 ) (183 ) (304 ) (183 ) Non-controlling
interest – – – – –
Earnings per share attributable to
owners of the parent Basic (0.01 ) (0.01 ) 0.00 (0.01 ) 0.00
Diluted (0.01 ) (0.01 ) 0.00 (0.01 ) 0.00 Weighted average
basic shares outstanding 52,891 52,891 47,428 52,891 47,428
Weighted average diluted shares outstanding 52,891 52,891 47,428
52,891 47,428
Consolidated statements of
comprehensive income (Unaudited)
For the three months endedMarch
31,
For the three months endedMarch
31,
In 000 2019 2019 2018 2019
2018
U.S.$ € € € €
Net profit (loss) for the period (342 )
(304 ) (183 )
(304 ) (183 ) Other
comprehensive income Exchange difference on translation of foreign
operations 661 588 (95 ) 588 (95 ) Other comprehensive income
(loss), net of taxes 661 588 (95 ) 588 (95 )
Total comprehensive
income (loss) for the year, net of taxes 319 284
(278 ) 284 (278 ) Total
comprehensive income (loss) attributable to: The owners of the
parent 319 284 (278 ) 284 (278 ) Non-controlling interest – – – – –
Consolidated statement of financial
position (Unaudited)
As ofMarch 31,
As ofDecember 31,
In 000
2019
2018
€ € Assets Non-current
assets Goodwill 17,680 17,491 Intangible assets 26,189 26,326
Property, plant & equipment 97,120 92,537 Investments in joint
ventures Deferred tax assets 257 315 Other non-current assets 9,388
7,237
Total non-current assets 150,634 143,906
Current assets Inventories 11,203 9,986 Trade
receivables 39,397 36,891 Other current assets 7,172 6,936 Cash and
cash equivalents 111,052 115,506
Total current assets
168,824 169,319 Total assets 319,458
313,225
As ofMarch 31,
As ofDecember 31,
In 000 2019 2018
€ € Equity and liabilities
Equity Share capital 3,050 3,050 Share premium
136,741 136,637 Consolidated reserves (2,152 ) (1,848 ) Other
comprehensive income (1,262 ) (1,850 )
Equity attributable to
the owners of the parent
136,377
135,989 Non-controlling interest – –
Total equity
136,377 135,989 Non-current liabilities
Loans & borrowings 93,638 92,440 Deferred tax liabilities 6,484
6,226 Deferred income 4,813 4,587 Other non-current liabilities 585
868
Total non-current liabilities 105,520
104,121 Current liabilities Loans &
borrowings 15,517 13,598 Trade payables 17,128 18,667 Tax payables
2,730 2,313 Deferred income 26,476 23,195 Other current liabilities
15,710 15,342
Total current liabilities 77,561
73,115 Total equity and liabilities 319,458
313,225
Consolidated statement of cash flows
(Unaudited)
For the three months endedMarch
31,
in 000
2019 2018 € €
Operating activities Net (loss) profit for the period (304 )
(183 ) Non-cash and operational adjustments Depreciation of
property, plant & equipment 3,429 2,700 Amortization of
intangible assets 1,101 1,305 Share-based payment expense (177 ) 89
Loss (gain) on disposal of property, plant & equipment 51 –
Movement in provisions 14 (16 ) Movement reserve for bad debt (136
) 84 Financial income (60 ) (667 ) Financial expense 583 1,067
Impact of foreign currencies 83 310 Share in loss of a joint
venture (equity method) 124 103 (Deferred) income taxes 1,065 501
Other 35 (88 )
Working capital adjustment & income tax
paid Increase in trade receivables and other receivables (2,393
) (4,372 ) Decrease (increase) in inventories (1,200 ) 1,147
Increase in trade payables and other payables 2,251 5,027 Income
tax paid (385 ) (807 )
Net cash flow from operating
activities 4,081 6,200
For the three months endedMarch
31,
in 000
2019 2018 € €
Investing activities Purchase of property, plant &
equipment (2,657 ) (4,275 ) Purchase of intangible assets (575 )
(324 ) Proceeds from the sale of property, plant & equipment
& intangible assets (net) – 20 Convertible loan to third party
(2,500 ) – Investments in joint-ventures – – Interest received 53
14
Net cash flow used in investing activities (5,679
) (4,565 ) Financing activities
Proceeds from loans & borrowings 1,500 12,413 Repayment of
loans & borrowings (2,543 ) (11,388 ) Repayment of finance
leases (1,399 ) (760 ) Capital increase – 207 Interest paid (503 )
(404 ) Other financial income (expense) (110 ) 5
Net cash flow
from (used in) financing activities (3,055 )
73 Net increase of cash & cash equivalents
(4,653 ) 1,708 Cash & cash equivalents at
beginning of the year 115,506 43,175 Exchange rate differences on
cash & cash equivalents 199 (186 )
Cash & cash
equivalents at end of the year 111,052 44,697
Reconciliation of Net Profit (Loss) to
EBITDA and Adjusted EBITDA (Unaudited)
For the three monthsended March
31,
For the three monthsended March
31,
In 000 2019 2018 2019 2018
€ € €
€ Net profit (loss) for the period (304
) (183 ) (304 ) (183 ) Income taxes
1,065 500 1,065 500 Financial expenses 1,196 1,550 1,196 1,550
Financial income (604 ) (840 ) (604 ) (840 ) Share in loss of joint
venture 123 103 123 103 Depreciation and amortization 4,530 4,006
4,530 4,006
EBITDA 6,006 5,136
6,006 5,136 Non-cash stock-based compensation
expense (1) (177 ) 88 (177 ) 88 Acquisition-related expenses
business combinations – – – –
ADJUSTED EBITDA
5,829 5,224 5,829 5,224
(1) Non-cash stock-based compensation expenses represent the
cost of equity-settled and cash-settled share-based payments to
employees.
Segment P&L (Unaudited)
In 000
Materialise
Software
Materialise
Medical
Materialise
Manufact-
uring
Total
segments
Unallocated
(1)
Consoli-
dated
€ € € € € € For the
three months ended March 31, 2019 Revenues 9,350 13,566 24,184
47,100 15 47,115 Segment EBITDA 2,961 1,773 3,695 8,429 (2,423)
6,006 Segment EBITDA % 31.7% 13.1% 15.3% 17.9% 12.7%
For the three months ended March 31, 2018 Revenues 8,326
11,946 23,632 43,904 (5) 43,899 Segment EBITDA 2,324 2,060 3,133
7,517 (2,381) 5,136 Segment EBITDA % 27.9% 17.2% 13.3% 17.1%
11.7%
(1) Unallocated Revenues consist of
occasional one-off sales by our core competencies not
allocated to any of our segments. Unallocated Segment EBITDA
consists of corporate research and development, corporate
headquarter costs and other operating income (expense).
Reconciliation of Net Profit (Loss) to
Segment EBITDA (Unaudited)
For the three monthsended March
31,
For the three monthsended March
31,
In 000 2019 2018 2019 2018
€ € €
€ Net profit (loss) for the period (304
) (183 ) (304 ) (183 ) Income taxes 1,065 500
1,065 500 Financial cost 1,196 1,550 1,196 1,550 Financial income
(604 ) (840 ) (604 ) (840 ) Share in loss of joint venture 123 103
123 103
Operating profit 1,476 1,130
1,476 1,130 Depreciation and amortization
4,530 4,006 4,530 4,006 Corporate research and development 464 490
464 490 Corporate headquarter costs 2,565 2,263 2,565 2,263 Other
operating income (expense) (606 ) (372 ) (606 ) (372 )
Segment EBITDA 8,429 7,517 8,429
7,517
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190430005144/en/
Investor RelationsHarriet
FriedLHA212.838.3777hfried@lhai.com
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