MTLS Materialise NV

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, 2023.

Highlights – Third Quarter 2023

• Total revenue increased 3.2% to 60,130 kEUR compared to 58,288 kEUR for the third quarter of 2022.
• Total deferred revenue from annual software sales and maintenance fees amounted to 40,079 kEUR compared to 42,780 kEUR at December 31, 2022.
• Adjusted EBITDA increased 55% to 7,857 kEUR compared to 5,072 kEUR for the corresponding 2022 period.
• Net profit for the third quarter of 2023 increased 184% to 4,013 kEUR, or 0.07 EUR per diluted share, compared to 1,413 kEUR, or 0.02 EUR per diluted share, for the corresponding 2022 period.

Executive Chairman Peter Leys commented, “Once again, demand for our products and solutions remained solid throughout the third quarter of this year. While uncertain global macro-economic conditions primarily impacted our Materialise Manufacturing segment, Materialise’s consolidated revenue continued to grow, by 3% compared to the same period last year. This strong performance was mainly driven by the continued double-digit revenue increase of our Materialise Medical segment. At the same time, we grew our consolidated Adjusted EBITDA by 55% to 7,857 kEUR through our focus on leveraging scaling effects and cost control, and without compromising on our continued investments in our growth businesses.”

Third Quarter 2023 Results

Total revenue for the third quarter of 2023 increased 3.2% to 60,130 kEUR from 58,288 kEUR for the third quarter of 2022. Adjusted EBITDA amounted to 7,857 kEUR for the third quarter of 2023, a 55% increase compared to 5,072 kEUR for the corresponding 2022 period. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the third quarter of 2023 was 13.1% compared to 8.7% for the third quarter of 2022.

Revenue from our Materialise Software segment was 10,811 kEUR for the third quarter of 2023 compared to 10,863 kEUR for the same quarter last year. Segment EBITDA increased significantly to 1,781 kEUR from 202 kEUR while the segment EBITDA margin was 16.5% compared to 1.9% for the corresponding prior-year period.

Revenue from our Materialise Medical segment increased by 13.4% to 24,263 kEUR for the third quarter of 2023 compared to 21,391 kEUR for the same period in 2022. Segment EBITDA increased by 50% to 7,143 kEUR for the third quarter of 2023 compared to 4,765 kEUR while the segment EBITDA margin was 29.4% compared to 22.3% for the third quarter of 2022.

Revenue from our Materialise Manufacturing segment decreased 3.8% to 25,056 kEUR for the third quarter of 2023 from 26,033 kEUR for the third quarter of 2022. Segment EBITDA amounted to 1,074 kEUR compared to 2,530 kEUR for the same period last year, while the segment EBITDA margin was 4.3% compared to 9.7% for the third quarter of 2022.

Gross profit was 33,696 kEUR compared to 32,042 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 56.0% compared to 55.0% for the third quarter of 2022.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses decreased, in the aggregate, 4.2% to 32,076 kEUR for the third quarter of 2023 from 33,491 kEUR for the third quarter of 2022.

Net other operating income decreased to 710 kEUR from 1,166 kEUR for the third quarter of 2022.

Operating result amounted to 2,330 kEUR compared to (282) kEUR for the third quarter of 2022.

Net financial result was 1,319 kEUR compared to 2,173 kEUR for the third quarter of 2022.

The third quarter of 2023 contained income tax results of 363 kEUR compared to (478) kEUR in the third quarter of 2022.

As a result of the above, net profit for the third quarter of 2023 was 4,013 kEUR, compared to 1,413 kEUR for the same period in 2022. Total comprehensive income for the third quarter of 2023, which includes exchange differences on translation of foreign operations, was 3,242 kEUR compared to 1,638 kEUR for the corresponding 2022 period.

At September 30, 2023, we had cash and cash equivalents of 133,953 kEUR, compared to 140,867 kEUR at December 31, 2022. Gross debt amounted to 66,222 kEUR compared to 80,980 kEUR at December 31, 2022. As a result, our net cash position (cash and cash equivalents less gross debt) was 67,731 kEUR compared to 59,887 kEUR at December 31, 2022.

Cash flow from operating activities for the third quarter of the year 2023 was 8,143 kEUR, compared to 3,840 kEUR for the same period in 2022. Total capital expenditures for the third quarter of 2023 amounted to 3,920 kEUR.

Net shareholders’ equity at September 30, 2023 was 236,631 kEUR compared to 228,928 kEUR at December 31, 2022.

2023 Guidance

Mr. Leys concluded, “The revenue growth posted by each of our business segments during the first nine months of this year strengthens our confidence that our full-year 2023 revenues will be, in spite of the challenging macro-economic circumstances, well within our previously communicated range of 255,000 kEUR to 260,000 kEUR. At the same time, we are maintaining our Adjusted EBITDA guidance of between 28,000 kEUR and 33,000 kEUR for fiscal year 2023.”

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 1.0594, the reference rate of the European Central Bank on September 30, 2023.

Conference Call and Webcast

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the third quarter of 2023 on Thursday, October 26, 2023, 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 Koen Berges, Chief Financial Officer. A question-and-answer session will follow management’s remarks.

• To access the conference call by phone, please click the link below at least 15 minutes prior to the scheduled start time and you will be provided with dial-in details. Participants can choose to dial in or to receive a call to connect to Materialise’s conference call.
• https://register.vevent.com/register/BI67b272ddef5b405d8f5d004208bd450f

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 estimates for the current fiscal year’s revenue and Adjusted EBITDA, 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 conflicts in Israel and Ukraine and governmental responses thereto, inflation, increased labor, energy and materials costs), 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 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 ended

September 30,

 

for the nine months ended

September 30,

In '000

2023

 

2023

 

2022

 

2023

 

2022

U.S.$ € € € € Revenue

63,702

60,130

58,288

190,832

169,319

Cost of Sales

(28,005)

(26,435)

(26,245)

(83,249)

(76,236)

Gross Profit

35,697

33,696

32,042

107,583

93,083

Gross profit as % of revenue

56.0%

56.0%

55.0%

56.4%

55.0%

  Research and development expenses

(10,039)

(9,476)

(9,313)

(27,982)

(26,074)

Sales and marketing expenses

(14,789)

(13,960)

(15,198)

(42,418)

(44,841)

General and administrative expenses

(9,153)

(8,640)

(8,980)

(27,213)

(26,089)

Net other operating income (expenses)

753

710

1,166

(3,238)

2,603

Operating (loss) profit

2,469

2,330

(282)

6,732

(1,318)

  Financial expenses

(1,646)

(1,554)

(2,110)

(3,599)

(4,671)

Financial income

3,043

2,873

4,283

4,987

9,800

Share in loss of joint venture

-

-

-

-

-

(Loss) profit before taxes

3,866

3,649

1,891

8,120

3,812

  Income Taxes

385

363

(478)

(886)

(1,377)

Net (loss) profit for the period

4,251

4,013

1,413

7,234

2,435

Net (loss) profit attributable to:

-

The owners of the parent

4,256

4,017

1,421

7,251

2,457

Non-controlling interest

(5)

(5)

(8)

(17)

(21)

  Earning per share attributable to owners of the parent Basic

0.07

0.07

0.02

0.12

0.04

Diluted

0.07

0.07

0.02

0.12

0.04

  Weighted average basic shares outstanding

59,067

59,067

59,064

59,067

59,064

Weighted average diluted shares outstanding

59,068

59,068

59,089

59,070

59,099

Consolidated statements of comprehensive income (Unaudited)

 

for the three months ended

September 30,

 

for the nine months ended

September 30,

In 000€

2023

 

2023

 

2022

 

2023

 

2022

U.S.$

 

€

 

€

 

€

 

€

Net profit (loss) for the period

4,251

4,013

1,413

7,234

2,435

Other comprehensive income Recycling Exchange difference on translation of foreign operations

(816)

(770)

225

471

1,291

Non-recycling Fair value adjustments through OCI - Equity instruments

-

-

-

-

-

Other comprehensive income (loss), net of taxes

(816)

(770)

225

471

1,291

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

3,435

3,242

1,638

7,705

3,726

Total comprehensive income (loss) attributable to: The owners of the parent

3,441

3,248

1,646

7,721

3,748

Non-controlling interests

(6)

(5)

(8)

(15)

(21)

Consolidated statement of financial position (Unaudited)

 

As of

September 30,

 

As of

December 31,

In 000€

2023

 

2022

Assets Non-current assets Goodwill

44,280

44,155

Intangible assets

35,592

37,875

Property, plant & equipment

94,399

94,276

Right-of-Use assets

7,668

8,420

Investments in joint ventures

-

-

Deferred tax assets

2,031

1,186

Investments in convertible loans

3,681

3,494

Investments in non-listed equity instruments

307

307

Other non-current assets

5,213

5,136

Total non-current assets

193,170

194,847

Current assets Inventories

16,764

16,081

Trade receivables

41,998

51,043

Other current assets

8,107

8,424

Cash and cash equivalents

133,953

140,867

Total current assets

200,821

216,414

Total assets

393,991

411,262

As of

September 30,

 

As of

December 31,

In 000€

2023

 

2022

Equity and liabilities Equity Share capital

4,487

4,487

Share premium

233,895

233,895

Retained earnings and other reserves

(1,708)

(9,427)

Equity attributable to the owners of the parent

236,674

228,955

Non-controlling interest

(43)

(28)

Total equity

236,631

228,928

Non-current liabilities Loans & borrowings

45,204

55,873

Lease liabilities

5,053

5,147

Deferred tax liabilities

3,786

4,312

Deferred income

8,533

9,277

Other non-current liabilities

1,185

1,611

Total non-current liabilities

63,761

76,220

Current liabilities Loans & borrowings

13,491

17,058

Lease liabilities

2,474

2,902

Trade payables

20,799

23,230

Tax payables

2,273

1,246

Deferred income

37,940

41,721

Other current liabilities

16,622

19,957

Total current liabilities

93,599

106,114

Total equity and liabilities

393,991

411,262

Consolidated statement of cash flows (Unaudited)

 

for the nine months ended

September 30,

In 000€

2023

 

2022

Operating activities Net (loss) profit for the period

7,234

2,435

Non-cash and operational adjustments Depreciation of property plant & equipment

11,162

11,335

Amortization of intangible assets

5,046

4,859

Impairment of goodwill and intangible assets

-

-

Share-based payment expense

-

(121)

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

(401)

59

Movement in provisions

(434)

(506)

Movement reserve for bad debt and slow moving inventory

445

(42)

Financial income

(4,811)

(9,771)

Financial expense

3,389

5,009

Impact of foreign currencies

(152)

98

(Deferred) income taxes

892

1,384

Working capital adjustments

(3,601)

9,109

Decrease (increase) in trade receivables and other receivables

8,965

(184)

Decrease (increase) in inventories and contracts in progress

(751)

(4,356)

Increase (decrease) in deferred revenue

(4,532)

3,815

Increase (decrease) in trade payables and other payables

(7,283)

9,834

Income tax paid & Interest received

1,194

(262)

Net cash flow from operating activities

19,963

23,587

for the nine months ended

September 30,

In 000€

2023

 

2022

Investing activities Purchase of property, plant & equipment

(6,862)

(16,066)

Purchase of intangible assets

(2,448)

(3,422)

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

645

319

Acquisition of subsidiary (net of cash)

-

(29,355)

Net cash flow used in investing activities

(8,665)

(48,523)

Financing activities Repayment of loans & borrowings

(14,334)

(15,182)

Repayment of leases

(2,640)

(2,566)

Capital increase

-

-

Interest paid

(1,334)

(1,665)

Other financial income (expense)

(25)

1,378

Net cash flow from (used in) financing activities

(18,334)

(18,035)

Net increase/(decrease) of cash & cash equivalents

(7,037)

(42,972)

Cash & Cash equivalents at the beginning of the year

140,867

196,028

Exchange rate differences on cash & cash equivalents

123

(2,433)

Cash & cash equivalents at end of the period

133,953

150,621

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

 

for the three months ended

September 30,

 

for the nine months ended

September 30,

In 000€

2023

 

2022

 

2023

 

2022

Net profit (loss) for the period

4,013

1,413

7,234

2,435

Income taxes

(363)

478

886

1,377

Financial expenses

1,554

2,110

3,599

4,671

Financial income

(2,873)

(4,283)

(4,987)

(9,800)

Depreciation and amortization

5,527

5,378

16,191

16,194

EBITDA

7,857

5,096

22,923

14,876

Share-based compensation expense (1)

-

(24)

-

(121)

Adjusted EBITDA

7,857

5,072

22,923

14,755

  (1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.

Segment P&L (Unaudited)

 

In 000€

Materialise

Software

Materialise

Medical

Materialise

Manufacturing

Total

segments

Unallocated (1)

Consolidated

For the three months ended September 30, 2023 Revenues

10,811

24,263

25,056

60,130

0

60,130

Segment (adj) EBITDA

1,781

7,143

1,074

9,998

(2,141)

7,857

Segment (adj) EBITDA %

16.5%

29.4%

4.3%

16.6%

13.1%

For the three months ended September 30, 2022 Revenues

10,863

21,391

26,033

58,288

0

58,288

Segment (adj) EBITDA

202

4,765

2,530

7,497

(2,425)

5,072

Segment (adj) EBITDA %

1.9%

22.3%

9.7%

12.9%

8.7%

 

In 000€

Materialise

Software

Materialise

Medical

Materialise

Manufacturing

Total

segments

Unallocated (1)

Consolidated

For the nine months ended September 30, 2023 Revenues

33,192

73,528

84,112

190,832

0

190,832

Segment (adj) EBITDA

6,190

17,179

6,980

30,349

(7,426)

22,923

Segment (adj) EBITDA %

18.7%

23.4%

8.3%

15.9%

12.0%

For the nine months ended September 30, 2022 Revenues

31,989

60,592

76,739

169,319

0

169,319

Segment (adj) EBITDA

2,955

12,466

6,722

22,144

(7,388)

14,755

Segment (adj) EBITDA %

9.2%

20.6%

8.8%

13.1%

8.7%

  (1) Unallocated segment adjusted EBITDA consists of corporate research and development 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 ended

September 30,

 

for the nine months ended

September 30,

In 000€

2023

 

2022

 

2023

 

2022

Net profit (loss) for the period

4,013

1,413

7,234

2,435

Income taxes

(363)

478

886

1,377

Financial cost

1,554

2,110

3,599

4,671

Financial income

(2,873)

(4,283)

(4,987)

(9,800)

Operating (loss) profit

2,330

(282)

6,732

(1,318)

Depreciation and amortization

5,527

5,378

16,191

16,194

Corporate research and development

604

592

2,063

2,057

Corporate headquarter costs

2,399

2,491

7,636

7,103

Other operating income (expense)

(862)

(681)

(2,274)

(1,892)

Segment adjusted EBITDA

9,998

7,497

30,349

22,144

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231026140624/en/

Investor Relations Harriet Fried LHA 212.838.3777 hfried@lhai.com