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, 2022.
Highlights – First Quarter 2022
- Total revenue increased 16.3% to 52,961 kEUR compared to 45,554
kEUR for the first quarter of 2021.
- Total deferred revenues from annual software sales and
maintenance fees increased by 2,937 kEUR this quarter to 38,082
kEUR.
- Adjusted EBITDA increased to 5,443 kEUR for the first quarter
of 2022 from 5,341 kEUR for the 2021 period.
- Net profit for the first quarter of 2022 was 127 kEUR, or 0.0
EUR per diluted share, compared to (3,642) kEUR, or (0.07) EUR per
diluted share, for the 2021 period.
Executive Chairman Peter Leys commented, “While the global
economy was negatively impacted by a combination of geopolitical
instability and the COVID-19 pandemic, Materialise continued to
perform well. After posting record numbers for 2021, all of our
segments grew during the first quarter of 2022, with an aggregate
revenue increase of 16% on a consolidated basis, driven by the
continued recovery of Materialise Manufacturing. We are
particularly pleased that our deferred revenue from annual software
sales and maintenance fees increased significantly, underscoring
the solid recurring sales performance of our Materialise Software
and Materialise Medical segments. Moreover, our Adjusted EBITDA for
the quarter was 5,443 kEUR, slightly above last year’s, and
included the continued operational investments in Link3D, a
developer of AM manufacturing execution systems that we acquired on
January 4, 2022.”
First Quarter 2022 Results
Total revenue for the first quarter of 2022 increased 16.3% to
52,961 kEUR from 45,554 kEUR for the first quarter of 2021.
Adjusted EBITDA increased to 5,443 kEUR for the first quarter of
2022 from 5,341 kEUR for the 2021 period. The Adjusted EBITDA
margin (Adjusted EBITDA divided by total revenue) for the first
quarter of 2022 was 10.3%, compared to 11.7% for the first quarter
of 2021.
The results of Link3D have been fully consolidated with the
results of our Materialise Software segment as of the beginning of
this year. Revenue from Materialise Software increased 2.6% to
10,483 kEUR for the first quarter of 2022 from 10,219 kEUR for the
same quarter last year. Segment EBITDA decreased, including the
effect of ongoing investments in Link3D, to 1,932 kEUR from 3,429
kEUR while the segment EBITDA margin was 18.4% compared to 33.6%
for the prior-year period.
Revenue from our Materialise Medical segment increased 13.0% to
18,347 kEUR for the first quarter of 2022 compared to 16,231 kEUR
for the same period in 2021. Segment EBITDA amounted to 3,227 kEUR
for the first quarter of 2022 compared to 4,541 kEUR while the
segment EBITDA margin was 17.6% compared to 28.0% for the first
quarter of 2021.
Revenue from our Materialise Manufacturing segment increased
26.2% to 24,131 kEUR for the first quarter of 2022 from 19,114 kEUR
for the first quarter of 2021. Segment EBITDA increased to 2,613
kEUR from (144) kEUR while the segment EBITDA margin grew to 10.8%
compared to (0.8)% for the first quarter of 2021.
Gross profit grew to 28,884 kEUR compared to 24,568 kEUR for the
same period last year, while gross profit as a percentage of
revenue increased to 54.5% compared to 53.9% for the first quarter
of 2021.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
increased, in the aggregate, 17.2% to 29,773 kEUR for the first
quarter of 2022 from 25,398 kEUR for the first quarter of 2021.
Net other operating income was 938 kEUR compared to 1,120 kEUR
for the first quarter of 2021.
Operating result amounted to 49 kEUR compared to 290 kEUR for
the first quarter of 2021.
Net financial result was 376 kEUR compared to (4,112) kEUR for
the first quarter of 2021.
The first quarter of 2022 contained income tax expenses of (298)
kEUR, compared to 181 kEUR income tax income in the first quarter
of 2021.
As a result of the above, net profit for the first quarter of
2022 was 127 kEUR, compared to (3,642) kEUR for the same period in
2021. Total comprehensive income for the first quarter of 2022,
which includes exchange differences on translation of foreign
operations, was 1,543 kEUR compared to (3,150) kEUR for the 2021
period.
At March 31, 2022, we had cash and cash equivalents of 169,610
kEUR compared to 196,028 kEUR at December 31, 2021. Gross debt
amounted to 93,583 kEUR, compared to 99,107 kEUR at December 31,
2021. As a result, our net cash position (gross debt less cash and
cash equivalents) was 76,027 kEUR, a decrease of 20,894 kEUR, and
included the effect of our call option exercise to acquire 100% of
the shares of Link3D.
Cash flow from operating activities for the first quarter of
2022 increased to 11,111 kEUR from 4,231 kEUR for the same period
in 2021. Total capital expenditures for the first quarter of 2022
amounted to 3,499 kEUR.
Net shareholders’ equity at March 31, 2022 was 234,121 kEUR
compared to 232,577 kEUR at December 31, 2021.
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 1.1101, the reference rate of the European Central Bank on
March 31, 2022.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the first quarter of 2022 on
Thursday, April 28, 2022, 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 2437458#.
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 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 current
armed conflict in Ukraine and 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.
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, In '000
2022
2022
2021*
U.S.$ € € Revenue
58,792
52,961
45,554
Cost of Sales
(26,729
)
(24,078
)
(20,986
)
Gross Profit
32,064
28,884
24,568
Gross profit as % of revenue
54.5
%
54.5
%
53.9
%
Research and development expenses
(8,675
)
(7,814
)
(6,536
)
Sales and marketing expenses
(15,003
)
(13,515
)
(11,310
)
General and administrative expenses
(9,373
)
(8,444
)
(7,552
)
Net other operating income (expenses)
1,041
938
1,120
Operating (loss) profit
54
49
290
Financial expenses
(1,431
)
(1,289
)
(4,701
)
Financial income
1,849
1,665
589
Share in loss of joint venture
-
-
-
(Loss) profit before taxes
472
425
(3,822
)
Income Taxes (*)
(331
)
(298
)
181
Net (loss) profit for the period (*)
141
127
(3,642
)
Net (loss) profit attributable to:
-
The owners of the parent
148
134
(3,642
)
Non-controlling interest
(7
)
(7
)
-
Earning per share attributable to owners of the
parent Basic
0.00
0.00
(0.07
)
Diluted
0.00
0.00
(0.07
)
Weighted average basic shares outstanding
59,064
59,064
54,169
Weighted average diluted shares outstanding
59,102
59,102
54,169
(*)
The year 2021 has been restated
to reflect the final accounting of the business combination with RS
Print.
Impact on Net profit for the
period and on Income taxes is 26 k€.
Consolidated statements of
comprehensive income (Unaudited)
for the three months endedMarch 31, In 000€
2022
2022
2021(*)
U.S.$ € € Net profit (loss) for the period
(*)
141
127
(3,642
)
Other comprehensive income Recycling Exchange
difference on translation of foreign operations
1,572
1,416
492
Non-recycling Fair value adjustments through OCI - Equity
instruments
-
-
-
Other comprehensive income (loss), net of taxes
1,572
1,416
492
Total comprehensive income (loss) for the year, net of taxes
1,713
1,543
(3,150
)
Total comprehensive income (loss) attributable to: The owners of
the parent
1,720
1,549
(3,150
)
Non-controlling interests
(7
)
(7
)
-
(*)
The year 2021 has been restated
to reflect the final accounting of the business combination with RS
Print.
Impact on Net profit for the
period is 26k€.
Consolidated statement of financial
position (Unaudited)
As ofMarch 31, As ofDecember 31, In 000€
2022
2021
Assets Non-current assets Goodwill
43,548
18,726
Intangible assets
38,075
31,668
Property, plant & equipment
84,329
84,451
Right-of-Use assets
9,270
9,054
Investments in joint ventures
-
-
Deferred tax assets
393
227
Investments in convertible loans
3,622
3,560
Investments in non-listed equity instruments
399
399
Other non-current assets
5,404
7,520
Total non-current assets
185,040
155,605
Current assets Inventories
12,720
11,295
Trade receivables
38,575
41,541
Other current assets
8,169
8,940
Cash and cash equivalents
169,610
196,028
Total current assets
229,074
257,803
Total assets
414,115
413,408
As ofMarch 31, As ofDecember 31, In 000€
2022
2021
Equity and liabilities Equity Share capital
4,489
4,489
Share premium
233,872
233,872
Retained earnings and other reserves
(4,240
)
(5,784
)
Equity attributable to the owners of the parent
234,121
232,577
Non-controlling interest
(6
)
1
Total equity
234,115
232,578
Non-current liabilities Loans & borrowings
66,759
72,637
Lease liabilities
5,670
5,268
Deferred tax liabilities
4,295
4,371
Deferred income
5,555
4,952
Other non-current liabilities
2,681
2,168
Total non-current liabilities
84,960
89,396
Current liabilities Loans & borrowings
17,882
17,849
Lease liabilities
3,272
3,353
Trade payables
20,202
20,171
Tax payables
722
783
Deferred income
37,226
33,306
Other current liabilities
15,736
15,972
Total current liabilities
95,040
91,434
Total equity and liabilities
414,115
413,408
Consolidated statement of cash flows
(Unaudited)
for the three months endedMarch 31, In 000€
2022
2021*
Operating activities Net (loss) profit for the period (*)
127
(3,642
)
Non-cash and operational adjustments Depreciation of property plant
& equipment
3,840
3,803
Amortization of intangible assets
1,602
1,277
Impairment of goodwill and intangible assets
-
-
Share-based payment expense
(48
)
(415
)
Loss (gain) on disposal of property, plant & equipment
(18
)
(32
)
Movement in provisions
2
-
Movement reserve for bad debt and slow moving inventory
130
(2
)
Financial income
(1,618
)
(589
)
Financial expense
1,237
4,701
Impact of foreign currencies
(28
)
18
Share in loss (gain) of a joint venture (equity method)
-
-
(Deferred) income taxes (*)
302
(181
)
Other non-current liabilities
-
-
Working capital adjustments
5,923
(860
)
Decrease (increase) in trade receivables and other receivables
4,506
(931
)
Decrease (increase) in inventories and contracts in progress
(1,357
)
(329
)
Increase (decrease) in trade payables and other payables
2,774
400
Income tax paid & Interest received
(341
)
153
Net cash flow from operating activities
11,111
4,231
(*) The year 2021 has been restated to reflect the final accounting
of the business combination with RS Print. Impact on Net profit for
the period and on (Deferred) income taxes is 26 k€.
for the
three months endedMarch 31, In 000€
2022
2021
Investing activities Purchase of property, plant &
equipment
(2,376
)
(1,242
)
Purchase of intangible assets
(1,123
)
(768
)
Proceeds from the sale of property, plant & equipment &
intangible assets (net)
93
183
Acquisition of subsidiary (net of cash)
(27,414
)
-
(Convertible) Loans granted
-
(1,122
)
Other equity investments in non-listed entities
-
-
Net cash flow used in investing activities
(30,820
)
(2,949
)
Financing activities Repayment of loans & borrowings
(5,969
)
(3,918
)
Repayment of leases
(881
)
(1,066
)
Capital increase
-
-
Interest paid
(515
)
(536
)
Other financial income (expense)
(89
)
136
Net cash flow from (used in) financing activities
(7,452
)
(5,384
)
Net increase/(decrease) of cash & cash equivalents
(27,161
)
(4,102
)
Cash & Cash equivalents at the beginning of the year
196,028
111,538
Exchange rate differences on cash & cash equivalents
743
132
Cash & cash equivalents at end of the period
169,610
107,568
Reconciliation of Net Profit (Loss) to
EBITDA and Adjusted EBITDA (Unaudited)
for the three months endedMarch 31, In 000€
2022
2021 (*)
Net profit (loss) for the period (*)
127
(3,642
)
Income taxes (*)
298
(181
)
Financial expenses
1,289
4,701
Financial income
(1,665
)
(589
)
Depreciation and amortization
5,442
5,081
Share in loss of joint venture
-
-
EBITDA
5,491
5,371
Share-based compensation expense (1)
(48
)
(415
)
Acquisition-related expenses of business combinations (2)
-
385
Adjusted EBITDA
5,443
5,341
(1)
Share-based compensation expense represents the cost of
equity-settled and share-based payments to employees.
(2)
Acquisition-related expenses of business combinations represents
expenses incurred in connection with the acquisition of our option
to buy Link3D
(*)
The year 2021 has been restated to reflect the final accounting of
the business combination with RS Print.
Impact on Net profit for the period and Income taxes is 26 k€.
Segment P&L (Unaudited)
In 000€
MaterialiseSoftware MaterialiseMedical
MaterialiseManufacturing Totalsegments Unallocated
(1) Consolidated For the three months ended March 31,
2022 Revenues
10,483
18,347
24,131
52,961
0
52,961
Segment (adj) EBITDA
1,932
3,227
2,613
7,772
(2,329
)
5,443
Segment (adj) EBITDA %
18.4
%
17.6
%
10.8
%
14.7
%
10.3
%
For the three months ended March 31, 2021 Revenues
10,219
16,231
19,114
45,564
(11
)
45,553
Segment (adj) EBITDA
3,429
4,541
(144
)
7,826
(2,486
)
5,341
Segment (adj) EBITDA %
33.6
%
28.0
%
-0.8
%
17.2
%
11.7
%
(1) 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 adjusted EBITDA (Unaudited)
for the three months endedMarch 31, In 000€
2022
2021 (*)
Net profit (loss) for the period (*)
127
(3,642
)
Income taxes (*)
298
(181
)
Financial cost
1,289
4,701
Financial income
(1,665
)
(589
)
Share in loss of joint venture
-
-
Operating (loss) profit
49
289
Depreciation and amortization
5,442
5,081
Corporate research and development
816
692
Corporate headquarter costs
2,106
2,648
Other operating income (expense)
(640
)
(855
)
Segment adjusted EBITDA
7,772
7,855
(*)
The year 2021 has been restated
to reflect the final accounting of the business combination with RS
Print.
Impact on Net profit for the period and Income taxes is 26 k€.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220428005079/en/
Investor Relations Harriet Fried LHA 212.838.3777
hfried@lhai.com
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