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 third
quarter ended September 30, 2021.
Highlights – Third Quarter 2021
- Total revenue increased 28% to 52,195 kEUR for the third
quarter of 2021 from 40,785 kEUR for the 2020 period.
- Total deferred revenues from annual software sales and
maintenance fees increased 547 kEUR to 30,789 kEUR compared to
December 31, 2020.
- Adjusted EBITDA increased 62% to 9,739 kEUR for the third
quarter of 2021 from to 6,023 kEUR for the 2020 period.
- Net profit for the third quarter of 2021 was 8,652 kEUR, or
0.15 EUR per diluted share, compared to a loss of (282) kEUR, or
(0.01) EUR per diluted share, for the 2020 period.
- Total cash was 194,946 kEUR at the end of the quarter.
Executive Chairman Peter Leys commented, “While the COVID-19
pandemic lingers on in certain parts of the world, our record third
quarter results show that Materialise is coming out of this crisis
stronger than before: our revenue grew by 28% to a quarterly record
of 52.2 kEUR and solid operational performances in all three of our
segments resulted in a quarterly Adjusted EBITDA record of 9.7
million EUR. We plan to continue to invest to further accelerate
our growth and look forward to introducing new product upgrades at
next month’s Formnext in Frankfurt.”
Third Quarter 2021 Results
Total revenue for the third quarter of 2021 increased 28.0% to
52,195 kEUR from 40,785 kEUR for the third quarter of 2020.
Adjusted EBITDA increased 62% to 9,739 kEUR from 6,023 kEUR in the
previous period. The Adjusted EBITDA margin (Adjusted EBITDA
divided by total revenue) for the third quarter of 2021 increased
to 18.7% from 14.8% for the third quarter of 2020.
Revenue from our Materialise Software segment increased 10.4% to
10,468 kEUR for the third quarter of 2021 from 9,478 kEUR for the
same quarter last year. Segment EBITDA increased 19.1% to 3,708
kEUR from 3,114 kEUR while the segment EBITDA margin increased to
35.4% compared to 32.9% in the prior-year period.
Revenue from our Materialise Medical segment increased 10.2% to
18,910 kEUR for the third quarter of 2021 compared to 17,161 kEUR
for the same period in 2020. Segment EBITDA decreased to 5,251 kEUR
from 5,476 kEUR while the segment EBITDA margin was 27.8% compared
to 31.9% for the third quarter of 2020.
Revenue from our Materialise Manufacturing segment increased
61.2% to 22,817 kEUR from 14,154 kEUR for the third quarter of
2020. Segment EBITDA increased to 3,546 kEUR from a loss of (321)
kEUR while the segment EBITDA margin increased to 15.5% compared to
(2.3)% in the third quarter of 2020.
Gross profit was 31,076 kEUR, an increase of 33.4% compared to
23,303 kEUR for the same period last year, while the gross profit
margin increased to 59.5% of total revenue compared to 57.1% for
the third quarter of 2020.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
increased, in the aggregate, 11.3% to 26,900 kEUR for the third
quarter of 2021 from 24,176 kEUR for the third quarter of 2020.
Net other operating income was 355 kEUR compared to 1,157 kEUR
for the third quarter of 2020. Operating result increased to 4,529
kEUR from 284 kEUR for the third quarter of 2020. Net financial
result was 4,204 kEUR compared to (1,331) kEUR for the third
quarter of 2020. The third quarter of 2021 contained income tax
expenses of (80) kEUR, compared to 764 kEUR in the third quarter of
2020.
As a result of the above, our net result for the third quarter
of 2021 increased 8,934 kEUR to a net profit of 8,652 kEUR,
compared to a net loss of (282) kEUR for the same period in 2020.
Total comprehensive income for the third quarter of 2021, which
includes exchange differences on translation of foreign operations,
was 8,267 kEUR compared to (1,659) kEUR for the 2020 period.
At September 30, 2021, we had cash and cash equivalents of
194,946 kEUR compared to 111,538 kEUR at December 31, 2020. Gross
debt amounted to 102,180 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 92,766 kEUR at September 30, 2021,
an improvement of 96,338 kEUR compared to December 31, 2020.
Cash flow from operating activities for the first three quarters
of 2021 was 17,490 kEUR compared to 14,752 kEUR for the same period
in 2020. Total capital expenditures for the third quarter of 2021
amounted to 3,252 kEUR.
Net shareholders’ equity at September 30, 2021 was 228,474 kEUR
compared to 133,104 kEUR at December 31, 2020. In July 2021, we
issued 600,000 new shares following the exercise of the
underwriters’ option to purchase additional shares, in connection
with the public offering of 4,000,000 shares issued in June
2021.
2021 Guidance
Mr. Leys concluded, “We expect our consolidated revenues for
2021 to be towards the higher end of the 197,000 kEUR to 200,000
kEUR range we previously provided. For 2021, we are increasing our
Adjusted EBITDA guidance from up to 25,000 kEUR to up to 28,000
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 1.1579, the reference rate of the European Central Bank on
September 30, 2021.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the third quarter of 2021 on
Thursday, October 28, 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), 4294784#.
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 endedSeptember 30, for the
nine months endedSeptember 30, In 000€
2021
2021
2020 (*)
2021
2020
U.S.$ € € € € Revenue
60,437
52,195
40,785
148,461
125,148
Cost of Sales
(24,454)
(21,119)
(17,483)
(64,378)
(57,310)
Gross Profit
35,983
31,076
23,303
84,084
67,838
Gross profit as % of revenue
59.5%
59.5%
57.1%
56.6%
54.2%
Research and development expenses
(7,644)
(6,602)
(5,861)
(19,982)
(18,434)
Sales and marketing expenses
(14,373)
(12,413)
(11,015)
(35,730)
(33,700)
General and administrative expenses
(9,130)
(7,885)
(7,300)
(23,449)
(21,100)
Net other operating income (expenses)
411
355
1,157
2,318
2,733
Operating (loss) profit
5,247
4,529
284
7,239
(2,663)
Financial expenses
2,703
2,334
(2,462)
(3,182)
(4,923)
Financial income
2,164
1,869
1,132
4,426
1,976
Share in loss of joint venture
-
-
-
-
(39)
(Loss) profit before taxes
10,114
8,732
(1,046)
8,483
(5,649)
Income Taxes
(93)
(80)
764
(55)
497
Net (loss) profit for the period
10,021
8,652
(282)
8,428
(5,152)
Net (loss) profit attributable to:
-
The owners of the parent
10,022
8,655
(246)
8,432
(4,989)
Non-controlling interest
(3)
(3)
(36)
(4)
(163)
Earning per share attributable to owners of the
parent Basic
0.17
0.15
(0.01)
0.15
(0.01)
Diluted
0.17
0.15
(0.01)
0.15
(0.01)
Weighted average basic shares outstanding
58,731
58,731
53,194
55,935
53,194
Weighted average diluted shares outstanding
58,944
58,944
53,194
56,206
53,194
(*) The year 2020 has been restated to reflect the final accounting
of the business combination with Engimplan.
Impact on the quarter operating result was
83 kEUR, no impact on year to date operating result.
Consolidated statements of
comprehensive income (Unaudited)
for the three months endedSeptember 30, for the
nine months endedSeptember 30, In 000€
2021
2021
2020 (*)
2021
2020
U.S.$ € € € € Net profit
(loss) for the period
10,021
8,652
(282)
8,428
(5,152)
Other comprehensive income Recycling Exchange
difference on translation of foreign operations
(446)
(385)
(1,377)
1,590
(8,165)
Non-recycling Fair value adjustments through OCI - Equity
instruments
-
-
-
48
-
Other comprehensive income (loss), net of taxes
(446)
(385)
(1,377)
1,638
(8,165)
Total comprehensive income (loss) for the year, net of taxes
9,572
8,267
(1,659)
10,066
(13,317)
Total comprehensive income (loss) attributable to: The owners of
the parent
9,576
8,270
(1,490)
10,069
(11,968)
Non-controlling interests
(3)
(3)
(169)
(3)
(1,349)
(*)
The year 2020 has been restated to reflect
the final accounting of the business combination with
Engimplan.
Impact on the quarter operating result was
83 kEUR, no impact on year to date operating result.
Consolidated statement of financial
position (Unaudited)
As ofSeptember30, As ofDecember31, In 000€
2021
2020
Assets Non-current assets Goodwill
20,531
20,342
Intangible assets
31,534
32,981
Property, plant & equipment
84,512
88,267
Right-of-Use assets
9,109
10,996
Investments in joint ventures
-
-
Deferred tax assets
249
201
Other non-current assets
13,868
14,139
Total non-current assets
159,803
166,926
Current assets Inventories
11,812
10,043
Trade receivables
38,543
30,871
Other current assets
9,767
8,290
Cash and cash equivalents
194,946
111,538
Total non-current assets
255,068
160,741
Total assets
414,871
327,667
As ofSeptember30, As ofDecember31, In 000€
2021
2020
Equity and liabilities Equity Share capital
4,445
4,096
Share premium
226,750
141,274
Consolidated reserves
3,430
(4,469)
Other comprehensive income
(6,158)
(7,797)
Equity attributable to the owners of the parent
228,467
133,104
Non-controlling interest
7
-
Total equity
228,474
133,104
Non-current liabilities Loans & borrowings
75,760
90,502
Lease liabilities
5,445
7,086
Deferred tax liabilities
6,175
6,805
Deferred income
4,812
5,327
Other non-current liabilities
2,151
398
Total non-current liabilities
94,343
110,118
Current liabilities Loans & borrowings
17,740
13,984
Lease liabilities
3,235
3,538
Trade payables
22,357
17,698
Tax payables
1,311
974
Deferred income
30,174
29,554
Other current liabilities
17,237
18,697
Total current liabilities
92,054
84,445
Total equity and liabilities
414,871
327,667
Consolidated statement of cash flows
(Unaudited)
for the nine months endedSeptember 30, In 000€
2021
2020
Operating activities Net (loss) profit for the period
8,429
(5,153)
Non-cash and operational adjustments Depreciation of property plant
& equipment
11,460
11,266
Amortization of intangible assets
3,780
3,349
Share-based payment expense
(878)
-
Loss (gain) on disposal of property, plant & equipment
43
(16)
Movement in provisions
7
-
Movement reserve for bad debt
154
36
Financial income
(4,426)
(1,977)
Financial expense
3,182
4,922
Impact of foreign currencies
107
18
Share in loss (gain) of a joint venture (equity method)
-
39
(Deferred) income taxes
55
(496)
Other non-current liabilities
-
Working capital adjustments
(4,531)
5,221
Decrease (increase) in trade receivables and other receivables
(7,553)
6,765
Decrease (increase) in inventories
(1,770)
2,757
Increase (decrease) in trade payables and other payables
4,792
(4,301)
Income tax paid & Interest received
108
(2,457)
Net cash flow from operating activities
17,490
14,752
for the nine months endedSeptember 30, In 000€
2021
2020
Investing activities Purchase of property, plant &
equipment
(4,827)
(8,196)
Purchase of intangible assets
(2,439)
(5,783)
Proceeds from the sale of property, plant & equipment &
intangible assets (net)
295
150
(Convertible) Loan to third party
1,239
(2,428)
Investment in subsidiary, net of cash acquired
(1,680)
-
Net cash flow used in investing activities
(7,412)
(16,257)
Financing activities Repayment of loans & borrowings
(11,169)
(8,909)
Repayment of finance leases
(2,841)
(2,997)
Capital increase
85,787
140
Interest paid
(1,652)
(1,626)
Other financial income (expense)
2,740
(1,034)
Net cash flow from (used in) financing activities
72,865
(14,426)
Net increase of cash & cash equivalents
82,943
(15,931)
Cash & Cash equivalents at the beginning of the year
111,538
128,897
Exchange rate differences on cash & cash equivalents
465
(2,275)
Cash & cash equivalents at end of the year
194,946
110,691
Reconciliation of Net Profit (Loss) to
EBITDA and Adjusted EBITDA (Unaudited)
for the three months endedSeptember 30, for the
nine months endedSeptember 30, In 000€
2021
2020 (*)
2021
2020
Net profit (loss) for the period
8,652
(282)
8,428
(5,152)
Income taxes
80
(764)
55
(497)
Financial expenses
(2,334)
2,462
3,182
4,923
Financial income
(1,869)
(1,131)
(4,426)
(1,976)
Depreciation and amortization
5,314
4,839
15,240
14,616
Share in loss of joint venture
-
-
-
39
EBITDA
9,843
5,123
22,480
11,952
Share-based compensation expense (1)
(104)
900
(878)
1,057
Acquisition-related expenses business combinations (2)
-
-
405
-
Adjusted EBITDA
9,739
6,023
22,007
13,009
(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 quarter operating result was
83 kEUR, no impact on year to date operating result.
Segment P&L (Unaudited)
In 000€
MaterialiseSoftware MaterialiseMedical
MaterialiseManufacturing Totalsegments
Unallocated(1)(2) Consolidated For the three
months ended September 30, 2021 Revenues
10,468
18,910
22,817
52,196
(0)
52,195
Segment (adj) EBITDA
3,708
5,251
3,546
12,506
(2,767)
9,739
Segment (adj) EBITDA %
35.4%
27.8%
15.5%
24.0%
18.7%
For the three months ended September 30, 2020 Revenues
9,478
17,161
14,154
40,793
(8)
40,785
Segment (adj) EBITDA
3,114
5,476
(321)
8,269
(2,246)
6,023
Segment (adj) EBITDA %
32.9%
31.9%
-2.3%
20.3%
14.8%
In 000€
MaterialiseSoftware MaterialiseMedical
MaterialiseManufacturing Totalsegments
Unallocated(1)(2) Consolidated For the nine months
ended September 30, 2021 Revenues
30,719
52,686
65,199
148,604
(142)
148,461
Segment (adj) EBITDA
10,266
14,313
5,252
29,831
(7,826)
22,004
Segment (adj) EBITDA %
33.4%
27.2%
8.1%
20.1%
14.8%
For the nine months ended September 30, 2020 Revenues
28,839
44,541
51,746
125,126
21
125,147
Segment (adj) EBITDA
9,515
9,072
1,447
20,035
(7,026)
13,008
Segment (adj) EBITDA %
33.0%
20.4%
2.8%
16.0%
10.4%
(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 corporate 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 endedSeptember 30, for the
nine months endedSeptember 30, In 000€
2021
2020 (*)
2021
2020
Net profit (loss) for the period
8,652
(282)
8,428
(5,152)
Income taxes
80
(764)
55
(497)
Financial cost
(2,334)
2,462
3,182
4,923
Financial income
(1,869)
(1,131)
(4,426)
(1,976)
Share in loss of joint venture
-
39
Operating (loss) profit
4,529
285
7,239
(2,663)
Depreciation and amortization
5,314
4,839
15,240
14,616
Corporate research and development
710
666
2,191
2,034
Corporate headquarter costs
2,463
2,969
6,907
7,862
Other operating income (expense)
(511)
(492)
(1,745)
(1,816)
Segment EBITDA
12,506
8,269
29,831
20,035
(*)
The year 2020 has been restated to reflect
the final accounting of the business combination with
Engimplan.
Impact on the quarter operating result was
83 kEUR, no impact on year to date operating result.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211028005098/en/
Investor Relations Harriet Fried LHA 212.838.3777
hfried@lhai.com
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