UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2020

Commission File Number: 001-36515

 

 

Materialise NV

 

 

Technologielaan 15

3001 Leuven

Belgium

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   ☒              Form 40-F   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):    ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):    ☐

This Form 6-K is incorporated by reference into the registrant’s Registration Statement on Form F-3 (File No. 333-213649).

 

 

 


First Quarter 2020 Financial Results

Except as otherwise required by the context, references to “Materialise,” “Company,” “we,” “us” and “our” are to Materialise NV and its subsidiaries.

First Quarter 2020 Results

Total revenue for the first quarter of 2020 decreased 1.8% to 46,245 kEUR compared to 47,115 kEUR for the first quarter of 2019.

Revenue from our Materialise Software segment increased 5.0% to 9,821 kEUR for the first quarter of 2020 from 9,350 kEUR for the same quarter last year.

Revenue from our Materialise Medical segment increased 15.3% to 15,645 kEUR for the first quarter of 2020 compared to 13,566 kEUR for the same period in 2019. Compared to the first quarter of 2019, revenues from medical devices and services grew 18.2% and revenues from our medical software grew 9.8%.

Revenue from our Materialise Manufacturing segment decreased 13.9% to 20,815 kEUR for the first quarter of 2020 from 24,184 kEUR for the first quarter of 2019.

Gross profit was 24,632 kEUR, or 53.3% of total revenue, for the first quarter of 2020 compared to 25,579 kEUR, or 54.3% of total revenue, for the first quarter of 2019.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 3.9% to 26,351 kEUR for the first quarter of 2020 from 25,361 kEUR for the first quarter of 2019.

Net other operating income was 683 kEUR compared to 1,258 kEUR for the first quarter of 2019.

Operating result decreased to (1,037) kEUR from 1,476 kEUR for the first quarter of 2019.

Net financial result was (1,321) kEUR compared to (592) kEUR for the first quarter of 2019. The share in loss of joint venture amounted to (39) kEUR compared to (123) kEUR for the same period in 2019.

The first quarter of 2020 contained income tax expenses of (457) kEUR, compared to (1,065) kEUR in the first quarter of 2019.

As a result of the above, net loss for the first quarter of 2020 was (2,853) kEUR, compared to (304) kEUR for the same period in 2019. Total comprehensive income for the first quarter of 2020, which includes exchange differences on translation of foreign operations, was (6,996) kEUR compared to 284 kEUR for the 2019 period.

Adjusted EBITDA decreased to 3,603 kEUR from 5,827 kEUR. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the first quarter of 2020 was 7.8% compared to 12.4% for the first quarter of 2019.

Segment EBITDA from our Materialise Software segment decreased to 2,645 kEUR from 2,961 kEUR while the segment EBITDA margin (segment EBITDA divided by segment revenue) was 26.9% compared to 31.7% for the prior-year period.

Segment EBITDA from our Materialise Medical segment increased to 2,455 kEUR compared to 1,773 kEUR while the segment EBITDA margin was 15.7% compared to 13.1% for the first quarter of 2019.

Segment EBITDA from our Materialise Manufacturing segment decreased to 1,118 kEUR from 3,695 kEUR while the segment EBITDA margin was 5.4% compared to 15.3% for the first quarter of 2019.

At March 31, 2020, we had cash and equivalents of 127,135 kEUR compared to 128,897 kEUR at December 31, 2019. Gross debt amounted to 124,702 kEUR, compared to 127,939 kEUR at December 31, 2019. As a result, our net cash position increased 1,474 kEUR during the first quarter of 2020.

Cash flow from operating activities for the first quarter of 2020 was 7,273 kEUR compared to 4,081 kEUR for the same period in 2019. Total capital expenditures for the first quarter of 2020 amounted to 3,053 kEUR.

Net shareholders’ equity at March 31, 2020 was 135,679 kEUR compared to 142,675 kEUR at December 31, 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 1.104309, the reference rate of the European Central Bank on March 31, 2020.

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.


Consolidated income statements (Unaudited)

 

     For the three months ended
March 31,
    For the three
months ended
March 31,
 
In 000    2020     2020     2019     2020     2019  
     U.S.$                  

Revenue

     51,069       46,245       47,155       46,245       47,115  

Cost of sales

     (23,867     (21,613     (21,536     (21,613     (21,536

Gross profit

     27,201       24,632       25,579       24,632       25,579  

Gross profit as % of revenue

     53.3     53.3     54.3     53.3     54.3

Research and development expenses

     (7,208     (6,527     (5,686     (6,527     (5,686

Sales and marketing expenses

     (13,945     (12,627     (12,079     (12,627     (12,079

General and administrative expenses

     (7,948     (7,197     (7,596     (7,197     (7,596

Net other operating income (expenses)

     754       683       1,258       683       1,258  

Operating (loss) profit

     (1,145     (1,037     1,476       (1,037     1,476  

Financial expenses

     (2,011     (1,821     (1,196     (1,821     (1,196

Financial income

     552       500       604       500       604  

Share in loss of joint venture

     (43     (39     (123     (39     (123

(Loss) profit before taxes

     (2,646     (2,396     761       (2,396     761  

Income taxes

     (505     (457     (1,065     (457     (1,065

Net (loss) profit for the period

     (3,151     (2,853     (304     (2,853     (304

Net (loss) profit attributable to:

          

The owners of the parent

     (3,100     (2,807     (304     (2,807     (304

Non-controlling interest

     (51     (47     —         (47     —    

Earnings per share attributable to owners of the parent

 

       

Basic

     (0.06     (0.05     (0.01     (0.05     (0.01

Diluted

     (0.06     (0.05     (0.01     (0.05     (0.01

Weighted average basic shares outstanding

     53,173       53,173       52,891       53,173       52,891  

Weighted average diluted shares outstanding

     53,173       53,173       52,891       53,173       52,891  


 

Consolidated statements of comprehensive income (Unaudited)

 

     For the three months
ended

March 31,
    For the three
months ended
March 31,
 
In 000    2020     2020     2019     2020     2019  
     U.S.$                  

Net profit (loss) for the period

     (3,151     (2,853     (304     (2,853     (304

Other comprehensive income

          

Exchange difference on translation of foreign operations

     (4.575     (4,143     588       (4,143     588  

Other comprehensive income (loss), net of taxes

     (4,575     (4,143     588       (4,143     588  

Total comprehensive income (loss) for the year, net of taxes

     (7,726     (6,996     284       (6,996     284  

Total comprehensive income (loss) attributable to:

          

The owners of the parent

     (6,997     (6,336     284       (6,336     284  

Non-controlling interest

     (729     (660     —         (660     —    


 

Consolidated statement of financial position (Unaudited)

 

     As of
March 31,
     As of
December 31,
 
In 000    2020      2019  
           

Assets

     

Non-current assets

     

Goodwill

     19,424        20,174  

Intangible assets

     26,092        27,395  

Property, plant & equipment

     88,682        90,331  

Right-of-Use assets

     10,057        10,586  

Investments in joint ventures

     —          39  

Deferred tax assets

     257        192  

Other non-current assets

     10,053        9,391  

Total non-current assets

     154,565        158,108  

Current assets

     

Inventories

     12,674        12,696  

Trade receivables

     37,174        40,322  

Other current assets

     10,080        9,271  

Cash and cash equivalents

     127,135        128,897  

Total current assets

     187,063        191,186  

Total assets

     341,628        349,294  


 

 

     As of
March 31,
    As of
December 31,
 
In 000    2020     2019  
          

Equity and liabilities

    

Equity

    

Share capital

     3,066       3,066  

Share premium

     138,090       138,090  

Consolidated reserves

     (3,007     (195

Other comprehensive income

     (4,918     (1.394

Equity attributable to the owners of the parent

     133,231       139,567  

Non-controlling interest

     2,447       3,107  

Total equity

     135,679       142,675  

Non-current liabilities

    

Loans & borrowings

     100,999       104,673  

Lease liabilities

     6,510       6,427  

Deferred tax liabilities

     5,906       5,747  

Deferred income

     5,418       5,031  

Other non-current liabilities

     584       696  

Total non-current liabilities

     119,418       122,575  

Current liabilities

    

Loans & borrowings

     13,821       13,389  

Lease liabilities

     3,372       3,449  

Trade payables

     18,166       18,516  

Tax payables

     3,048       3,363  

Deferred income

     29,471       27,641  

Other current liabilities

     18,653       17,686  

Total current liabilities

     86,531       84,044  

Total equity and liabilities

     341,628       349,294  


 

Consolidated statement of cash flows (Unaudited)

 

     For the three months ended March 31,  
in 000    2020     2019  
          

Operating activities

    

Net (loss) profit for the period

     (2,853     (304

Non-cash and operational adjustments

    

Depreciation of property, plant & equipment

     3,600       3,429  

Amortization of intangible assets

     1,115       1,101  

Share-based payment expense

     (75     (177

Loss (gain) on disposal of property, plant & equipment

     16       51  

Movement in provisions

     (3     14  

Movement reserve for bad debt

     221       (136

Financial income

     (500     (60

Financial expense

     1,821       583  

Impact of foreign currencies

       83  

Share in loss of a joint venture (equity method)

     39       124  

(Deferred) income taxes

     454       1,065  

Other

     147       35  

Working capital adjustment & income tax paid

    

Decrease (increase) in trade receivables and other receivables

     1,582       (2,393

Decrease (increase) in inventories

     (3     (1,200

Increase (decrease) in trade payables and other payables

     2,300       2,251  

Income tax paid

     (588     (385

Net cash flow from operating activities

     7,273       4,081  


 

 

     For the three months ended March 31,  
in 000    2020     2019  
          

Investing activities

    

Purchase of property, plant & equipment

     (2,575     (2,657

Purchase of intangible assets

     (478     (575

Proceeds from the sale of property, plant & equipment & intangible assets

     69       —    

Convertible loan to third party

     (300     (2,500

Investments in joint-ventures

     —         —    

Interest received

     —         53  

Net cash flow used in investing activities

     (3,284     (5,679

Financing activities

    

Proceeds from loans & borrowings

       1,500  

Repayment of loans & borrowings

     (2,585     (2,543

Repayment of finance leases

     (1,016     (1,399

Interest paid

     (634     (503

Other financial income (expense)

     (138     (110

Net cash flow from (used in) financing activities

     (4,373     (3,055

Net increase of cash & cash equivalents

     (383     (4,653

Cash & cash equivalents at beginning of the year

     128,897       115,506  

Exchange rate differences on cash & cash equivalents

     (1,379     199  

Cash & cash equivalents at end of the year

     127,135       111,052  


 

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

 

     For the three months
ended March 31,
    For the three months
ended March 31,
 
In 000    2020     2019     2020     2019  
                  

Net profit (loss) for the period

     (2,853     (304     (2,853     (304

Income taxes

     457       1,065       457       1,065  

Financial expenses

     1,821       1,196       1,821       1,196  

Financial income

     (500     (604     (500     (604  

Share in loss of joint venture

     39       123       39       123  

Depreciation and amortization

     4,715       4,530       4,715       4,530  

EBITDA

     3,678       6,006       3,678       6,006  

Non-cash stock-based compensation expense (1)

     (75     (177     (75     (177

Acquisition-related expenses business combinations

     —         —         —         —    

ADJUSTED EBITDA

     3,603       5,829       3,603       5,829  

 

(1)   Non-cash share-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
Manufacturing
    Total
segments
    Unallocated
(1)(2)
    Consolidated  
                          

For the three months 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

For the three months ended March 31, 2019

            

Revenues

     9,350       13,566       24,184       47,100       15       47,115  

Segment adjusted EBITDA

     2,961       1,773       3,695       8,429       (2,600     5,829  

Segment adjusted EBITDA %

     31.7     13.1     15.3     17.9       12.4

 

  (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 non-cash share-based compensation expenses and acquisition related expenses of business combinations that are included in Adjusted EBITDA.


 

Reconciliation of Net Profit (Loss) to Segment EBITDA (Unaudited)

 

     For the three months
ended March 31,
    For the three months
ended March 31,
 
In 000    2020     2019     2020     2019  
                  

Net profit (loss) for the period

     (2,853     (304     (2,853     (304

Income taxes

     457       1,065       457       1,065  

Financial cost

     1,821       1,196       1,821       1,196  

Financial income

     (500     (604     (500     (604

Share in loss of joint venture

     39       123       39       123  

Operating profit

     (1,037     1,476       (1,037     1,476  

Depreciation and amortization

     4,715       4,530       4,715       4,530  

Corporate research and development

     747       464       747       464  

Corporate headquarter costs

     2,368       2,565       2,368       2,565  

Other operating (income) expense

     (575     (606     (575     (606

Segment EBITDA

     6,218       8,429       6,218       8,429  


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

MATERIALISE NV

By:

 

/s/ Wilfried Vancraen

 

 

Name:

 

Wilfried Vancraen

Title:

 

Chief Executive Officer

Date: April 30, 2020

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