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 second
quarter ended June 30, 2021.
Highlights – Second Quarter 2021
- Total revenue increased 33% to 50,713 kEUR for the second
quarter of 2021 from 38,117 kEUR for the 2020 period.
- Total deferred revenues from annual software sales and
maintenance fees increased 1,725 kEUR to 31,967 kEUR compared to
December 31, 2020.
- Adjusted EBITDA increased 105% to 6,925 kEUR for the second
quarter of 2021 from to 3,382 kEUR for the 2020 period.
- Net profit for the second quarter of 2021 was 3,443 kEUR, or
0.06 EUR per diluted share, compared to a loss of (1,969) kEUR, or
(0.04) EUR per diluted share, for the 2020 period.
- Total cash was 182,816 kEUR at the end of the quarter, and
includes the net proceeds from our follow on capital increase of
4,000,000 new shares at 24 USD per share.
Executive Chairman Peter Leys commented, “Our strong second
quarter results reflect our swift recovery from the COVID-19
crisis: on a sequential basis, our revenues grew by 11.3% compared
to the first quarter of 2021 and our Adjusted EBITDA grew by almost
30% compared to the same quarter. More importantly, in addition to
a solid recovery, our second quarter 2021 results also show
effective growth relative to our pre-pandemic results: compared to
the same period in 2019, our revenues grew by 5% and our Adjusted
EBITDA grew by 37%. We are well positioned and determined to
accelerate that growth, including through the use of the proceeds
from the public offering of new shares we recently completed
(generating US $110.4 million in total gross cash proceeds,
including US $14.4 million from the sale of 600,000 additional
shares in connection with the underwriters’ exercise of their
option to purchase such shares in July).”
Second Quarter 2021 Results
Total revenue for the second quarter of 2021 increased 33.0% to
50,713 kEUR from 38,117 kEUR for the second quarter of 2020.
Adjusted EBITDA more than doubled, increasing from 3,382 kEUR in
the previous period to 6,925 kEUR. The Adjusted EBITDA margin
(Adjusted EBITDA divided by total revenue) for the second quarter
of 2021 increased to 13.7% from 8.9% for the second quarter of
2020.
Revenue from our Materialise Software segment increased 5.2% to
10,032 kEUR for the second quarter of 2021 from 9,540 kEUR for the
same quarter last year. Segment EBITDA was 3,129 kEUR compared to
3,756 kEUR while the segment EBITDA margin was 31.2% compared to
39.4% in the prior-year period.
Revenue from our Materialise Medical segment increased 49.5% to
17,544 kEUR for the second quarter of 2021 compared to 11,735 kEUR
for the same period in 2020. Segment EBITDA increased to 4,519 kEUR
compared to 1,139 kEUR while the segment EBITDA margin increased to
25.8% from 9.7% for the second quarter of 2020.
Revenue from our Materialise Manufacturing segment increased
38.7% to 23,268 kEUR from 16,777 kEUR for the second quarter of
2020. Segment EBITDA increased to 1,850 kEUR from 650 kEUR while
the segment EBITDA margin increased to 7.9% from 3.9% for the
second quarter of 2020.
Gross profit was 28,441 kEUR, an increase of 42.6% compared to
19,949 kEUR for the same period last year, while the gross profit
margin increased considerably to 56.1% of total revenue compared to
52.3% for the second quarter of 2020.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
increased, in the aggregate, 18.3% to 26,864 kEUR for the second
quarter of 2021 from 22,705 kEUR for the second quarter of
2020.
Net other operating income was 843 kEUR compared to 892 kEUR for
the second quarter of 2020. Operating result increased to 2,421
kEUR from (1,865) kEUR for the second quarter of 2020. Net
financial result was 1,153 kEUR compared to (295) kEUR for the
second quarter of 2020. The second quarter of 2021 contained income
tax expenses of (131) kEUR, compared to 191 kEUR in the second
quarter of 2020.
As a result of the above, our net result for the second quarter
of 2021 increased 5,412 kEUR to a net profit of 3,443 kEUR,
compared to a net loss of (1,969) kEUR for the same period in 2020.
Total comprehensive income for the second quarter of 2021, which
includes exchange differences on translation of foreign operations,
was 4,420 kEUR compared to (3,014) kEUR for the 2020 period.
At June 30, 2021, we had cash and cash equivalents of 182,816
kEUR compared to 111,538 kEUR at December 31, 2020. This includes
the net proceeds from the public offering of 4,000,000 new shares
at 24 USD per share that we completed in the quarter (but excludes
the proceeds from the issuance of an additional 600,000 new shares
at 24 USD per share in connection with the underwriters’ exercise
of their option to purchase such shares in July 2021). Gross debt
amounted to 106,849 kEUR, compared to 115,110 kEUR at December 31,
2020. As a result, our net cash position (cash and cash equivalents
less gross debt) was 75,968 kEUR at June 30, 2021, an improvement
of 79,540 kEUR compared to December 31, 2020.
Cash flow from operating activities for the second quarter of
2021 was 8,871 kEUR compared to 7,053 kEUR for the same period in
2020. Total capital expenditures for the second quarter of 2021
amounted to 2,003 kEUR.
Net shareholders’ equity at June 30, 2021 was 208,755 kEUR
compared to 133,104 kEUR at December 31, 2020. In June of 2021, we
issued 4,000,000 new shares in connection with the public offering
of shares described above, bringing our total amount of shares on a
fully diluted basis at June 30, 2021 to 58.4 million (not including
the 600,000 additional new shares issued in July 2021 following the
exercise of the underwriters’ option to purchase additional
shares).
2021 Guidance
Mr. Leys concluded, “Assuming that the current positive, albeit
fragile and fairly diverse, global trend of businesses gradually
recovering from the COVID-19 pandemic continues, we currently
expect our consolidated revenues for 2021 to exceed their
pre-pandemic level during 2019 (197,000 kEUR), with the likelihood
of coming close to 200,000 kEUR. As is traditionally the case for
our business, we expect a particularly strong fourth quarter. As
our revenues grow, we intend to increase our operational expenses
accordingly, with a view to supporting and accelerating our growth
in the near future. Currently, we believe that Adjusted EBITDA for
2021 will reach up to 25,000 kEUR.”
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 1.1884, the reference rate of the European Central Bank on June
30, 2021.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the second quarter of 2021 on
Thursday, July 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 3659266#.
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 current estimates for fiscal 2021 revenues and
Adjusted EBITDA, 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. For example, the variant strains of the
COVID-19 virus could have a material adverse impact on the global
economic recovery from the pandemic.
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 endedJune 30, for the six months
endedJune 30, In 000€
2021
2021
2020 (*)
2021
2020 (*)
U.S.$ € € € € Revenue
60,267
50,713
38,117
96,266
84,362
Cost of Sales
(26,468)
(22,272)
(18,168)
(43,258)
(39,827)
Gross Profit
33,799
28,441
19,949
53,009
44,535
Gross profit as % of revenue
56.1%
56.1%
52.3%
55.1%
52.8%
Research and development expenses
(8,133)
(6,844)
(6,045)
(13,380)
(12,572)
Sales and marketing expenses
(14,269)
(12,007)
(10,161)
(23,317)
(22,789)
General and administrative expenses
(9,521)
(8,012)
(6,499)
(15,565)
(13,696)
Net other operating income (expenses)
1,002
843
892
1,963
1,575
Operating (loss) profit
2,878
2,421
(1,865)
2,710
(2,948)
Financial expenses
(969)
(815)
(640)
(5,515)
(2,461)
Financial income
2,339
1,968
345
2,556
845
Share in loss of joint venture
-
-
-
-
(39)
(Loss) profit before taxes
4,248
3,574
(2,160)
(249)
(4,603)
Income Taxes
(156)
(131)
191
25
(267)
Net (loss) profit for the period
4,092
3,443
(1,969)
(224)
(4,870)
Net (loss) profit attributable to:
-
The owners of the parent
4,092
3,443
(1,902)
(224)
(4,743)
Non-controlling interest
-
-
(67)
-
(127)
Earning per share attributable to owners of the
parent Basic
0.07
0.06
(0.04)
(0.00)
(0.09)
Diluted
0.07
0.06
(0.04)
(0.00)
(0.09)
Weighted average basic shares outstanding
54,873
54,873
53,194
54,521
53,194
Weighted average diluted shares outstanding
55,115
55,115
53,194
54,521
53,194
(*)
The year 2020 has been restated
to reflect the final accounting of the business combination with
Engimplan.
Impact on the year to date
operating result of the (83) kEUR
Consolidated statements of comprehensive income
(Unaudited)
for the three months endedJune 30, for the six months
endedJune 30, In 000€
2021
2021
2020 (*)
2021
2020 (*)
U.S.$ € € € € Net profit
(loss) for the period
4,092
3,443
(1,969)
(224)
(4,870)
Other comprehensive income Recycling Exchange
difference on translation of foreign operations
1,104
929
(1,045)
1,975
(6,787)
Non-recycling Fair value adjustments through OCI - Equity
instruments
57
48
-
48
-
Other comprehensive income (loss), net of taxes
1,161
977
(1,045)
2,023
(6,787)
Total comprehensive income (loss) for the year, net of taxes
5,253
4,420
(3,014)
1,799
(11,657)
Total comprehensive income (loss) attributable to: The owners of
the parent
5,253
4,420
(2,764)
1,799
(10,531)
Non-controlling interests
(250)
(1,126)
(*)
The year 2020 has been restated
to reflect the final accounting of the business combination with
Engimplan.
Impact on the year to date
operating result of the (83) kEUR
Consolidated statement of financial position
(Unaudited)
As ofJune 30, As ofDecember31, In 000€
2021
2020
Assets Non-current assets Goodwill
20,561
20,342
Intangible assets
32,233
32,981
Property, plant & equipment
85,468
88,267
Right-of-Use assets
9,678
10,996
Investments in joint ventures
-
-
Deferred tax assets
273
201
Other non-current assets
13,088
14,139
Total non-current assets
161,301
166,926
Current assets Inventories
11,219
10,043
Trade receivables
33,674
30,871
Other current assets
9,080
8,290
Cash and cash equivalents
182,816
111,538
Total non-current assets
236,789
160,741
Total assets
398,090
327,667
As ofJune 30, As ofDecember31, In 000€
2021
2020
Equity and liabilities Equity Share capital
4,401
4,096
Share premium
215,374
141,274
Consolidated reserves
(5,247)
(4,469)
Other comprehensive income
(5,773)
(7,797)
Equity attributable to the owners of the parent
208,755
133,104
Non-controlling interest
-
-
Total equity
208,755
133,104
Non-current liabilities Loans & borrowings
81,810
90,502
Lease liabilities
6,360
7,086
Deferred tax liabilities
6,347
6,805
Deferred income
4,820
5,327
Other non-current liabilities
678
398
Total non-current liabilities
100,015
110,118
Current liabilities Loans & borrowings
15,661
13,984
Lease liabilities
3,018
3,538
Trade payables
21,649
17,698
Tax payables
1,225
974
Deferred income
32,394
29,554
Other current liabilities
15,373
18,697
Total current liabilities
89,320
84,445
Total equity and liabilities
398,090
327,667
Consolidated statement of cash flows (Unaudited)
for the six months endedJune 30, In 000€
2021
2020 (*)
Operating activities Net (loss) profit for the period
(224)
(4,869)
Non-cash and operational adjustments Depreciation of property plant
& equipment
7,591
7,493
Amortization of intangible assets
2,335
2,284
Share-based payment expense
(774)
-
Loss (gain) on disposal of property, plant & equipment
48
46
Movement in provisions
5
4
Movement reserve for bad debt
204
181
Financial income
(2,556)
(845)
Financial expense
5,515
2,453
Impact of foreign currencies
87
36
Share in loss (gain) of a joint venture (equity method)
-
39
(Deferred) income taxes
(25)
266
Other non-current liabilities
-
Working capital adjustments & income tax paid Decrease
(increase) in trade receivables and other receivables
(1,528)
8,962
Decrease (increase) in inventories
(1,188)
1,220
Decrease (increase) in trade payables and other payables
3,439
(1,843)
Interest received
313
-
Income tax paid
(140)
(1,102)
Net cash flow from operating activities
13,102
14,326
for the six months endedJune 30, In 000€
2021
2020 (*)
Investing activities Purchase of property, plant &
equipment
(2,453)
(5,756)
Purchase of intangible assets
(1,562)
(687)
Proceeds from the sale of property, plant & equipment &
intangible assets (net)
222
72
Convertible loan to third party
(4,370)
(300)
Investment in joint-ventures
-
-
Net cash flow used in investing activities
(8,163)
(6,671)
Financing activities Proceeds from loans & borrowings
-
15
Repayment of loans & borrowings
(7,219)
(5,813)
Repayment of finance leases
(1,909)
(1,823)
Capital increase
74,346
140
Interest paid
(1,064)
(1,178)
Other financial income (expense)
1,580
(617)
Net cash flow from (used in) financing activities
65,734
(9,276)
Net increase of cash & cash equivalents
70,673
(1,621)
Cash & Cash equivalents at the beginning of the year
111,538
128,897
Exchange rate differences on cash & cash equivalents
605
(1,822)
Cash & cash equivalents at end of the year
182,816
125,454
(*)
The year 2020 has been restated
to reflect the final accounting of the business combination with
Engimplan.
Impact on the year to date
operating result of the (83) kEUR
Reconciliation of Net Profit (Loss) to EBITDA and Adjusted
EBITDA (Unaudited)
for the three months endedJune 30, for the six months
endedJune 30, In 000€
2021
2020 (*)
2021
2020 (*)
Net profit (loss) for the period
3,443
(1,969)
(224)
(4,870)
Income taxes
131
(191)
(25)
267
Financial expenses
815
640
5,515
2,461
Financial income
(1,968)
(345)
(2,556)
(845)
Depreciation and amortization
4,845
5,017
9,926
9,777
Share in loss of joint venture
-
-
-
39
EBITDA
7,266
3,152
12,637
6,829
Share-based compensation expense (1)
(358)
231
(774)
157
Acquisition-related expenses business combinations (2)
17
-
405
-
Adjusted EBITDA
6,925
3,382
12,268
6,985
(1)
Share-based compensation expense represents the cost of
equity-settled and 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 year 2020 has been restated to reflect the final
accounting of the business combination with Engimplan.
Impact on the year to date operating result of the (83) kEUR
Segment P&L (Unaudited)
In 000€
MaterialiseSoftware MaterialiseMedical
MaterialiseManufacturing Totalsegments
Unallocated(1)(2) Consolidated For the three
months ended June 30, 2021 Revenues
10,032
17,544
23,268
50,844
(131)
50,713
Segment (adj) EBITDA
3,129
4,519
1,850
9,498
(2,572)
6,925
Segment (adj) EBITDA %
31.2%
25.8%
7.9%
18.7%
13.7%
For the three months ended June 30, 2020 Revenues
9,540
11,735
16,777
38,052
65
38,117
Segment (adj) EBITDA
3,756
1,139
650
5,546
(2,164)
3,382
Segment (adj) EBITDA %
39.4%
9.7%
3.9%
14.6%
8.9%
In 000€
MaterialiseSoftware MaterialiseMedical
MaterialiseManufacturing Totalsegments
Unallocated(1)(2) Consolidated For the six months
ended June 30, 2021 Revenues
20,251
33,776
42,381
96,408
(142)
96,266
Segment (adj) EBITDA
6,558
9,060
1,706
17,324
(5,059)
12,265
Segment (adj) EBITDA %
32.4%
26.8%
4.0%
18.0%
12.7%
For the six months ended June 30, 2020 Revenues
19,361
27,380
37,592
84,333
29
84,362
Segment (adj) EBITDA
6,401
3,595
1,768
11,765
(4,780)
6,985
Segment (adj) EBITDA %
33.1%
13.1%
4.7%
14.0%
8.3%
(1) Unallocated Revenues consists of occasional one-off sales in
our core competencies not allocated to any of our segments. (2)
Unallocated segment adjusted EBITDA consists of corporate research
and development, corporate headquarter costs and other operating
income (expense), and the added share-based compensation expenses,
acquisition related expenses of business combinations, impairments
and fair value of business combinations that are included in
Adjusted EBITDA.
Reconciliation of Net Profit (Loss) to Segment EBITDA
(Unaudited)
for the three months endedJune 30, for the six months
endedJune 30, In 000€
2021
2020 (*)
2021
2020 (*)
Net profit (loss) for the period
3,443
(1,969)
(224)
(4,870)
Income taxes
131
(191)
(25)
267
Financial cost
814
640
5,515
2,461
Financial income
(1,968)
(345)
(2,556)
(845)
Share in loss of joint venture
-
39
Operating (loss) profit
2,420
(1,865)
2,710
(2,948)
Depreciation and amortization
4,845
5,015
9,926
9,777
Corporate research and development
774
687
1,466
1,478
Corporate headquarter costs
2,316
2,781
4,964
5,173
Other operating income (expense)
(857)
(1,074)
(1,742)
(1,716)
Segment EBITDA
9,498
5,546
17,324
11,765
(*) The year 2020 has been restated to reflect the final accounting
of the business combination with Engimplan. Impact on the year to
date operating result of the (83) kEUR
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210729005057/en/
Investor Relations Harriet Fried LHA 212.838.3777
hfried@lhai.com
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