Revenues from our Materialise Software segment
increased 11.4% to 41,654 kEUR for the year ended December 31,
2019 compared to 37,374 kEUR for the year ended December 31,
Revenues from our Materialise Medical segment grew
by 16.4% for the year ended December 31, 2019 to 60,809 kEUR
from 52,252 kEUR for the year ended December 31, 2018. Medical
software growth was 13.9%, and revenues from medical devices and
services increased 17.6%, including Engimplan’s impact.
Revenues from our Materialise Manufacturing segment
decreased 0.8% to 94,156 kEUR for the year ended December 31,
2019 from 94,956 kEUR for the year ended December 31,
Operating profit improved 1,852 kEUR to 7,016 kEUR
for the year ended December 31, 2019 from 5,164 kEUR. The
increased net financial expenses of 1,070 kEUR and increased income
tax expenses of 2,170 kEUR impacted our net result. Accordingly,
net profit decreased to 1,724 kEUR for 2019 compared to 3,027 kEUR
At December 31, 2019, we had cash and
equivalents of 128,897 kEUR compared to 115,506 kEUR at
December 31, 2018. Gross debt amounted to 127,939 kEUR
(including 5,160 kEUR of lease liabilities recognized under the new
accounting standard IFRS 16), compared to 106,037 kEUR at
December 31, 2018.
Adjusted EBITDA for the year ended
December 31, 2019 was 26,656 kEUR, an increase of 13.3%
compared to 23,526 kEUR for the year ended December 31, 2018.
The Adjusted EBITDA margin increased to 13.6% from 12.7% in
Segment EBITDA from our Materialise Software
segment was 33.2% in 2019 compared to 30.9% in 2018.
Segment EBITDA from our Materialise Medical segment
was 17.7% in 2019, compared to 19.6% in 2018.
Segment EBITDA from our Materialise Manufacturing
segment increased from 11.4% for 2018 to 12.9% in 2019.
Cash flow from operating activities for the year
ended December 31, 2019 was 28,402 kEUR compared to 28,320
kEUR in the year ended December 31, 2018. Total capital
expenditures for the year ended December 31, 2019 amounted to
15,665 kEUR. This amount included 1,070 kEUR of capitalized R&D
expenditures from medical programs.
Net shareholders’ equity at December 31, 2019
was 142,675 kEUR compared to 135,989 kEUR at December 31,
Note on Comparability
As a result of the implementation of the new
accounting standard IFRS 16, we recognized additional lease assets
and liabilities in the amount of 4,998 kEUR at January 1,
2019. At the end of the year ended December 31, 2019, the
total commitment of lease assets and liabilities amounted to 5,025
kEUR. Our Adjusted EBITDA for the year ended December 31, 2019
was affected positively by the new standard as a result of the
rental payments decrease of 2,580 kEUR; however, our operating
profit was impacted by (18) kEUR as depreciation expenses
increased by 2,597 kEUR. For the fourth quarter of 2019 our
Adjusted EBITDA was affected positively by 641 kEUR, while our
operating profit was impacted by (93) kEUR and depreciation
expenses increased by 735 kEUR.
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.