Fourth Quarter Revenue of $160.2 million and
$636.1 million for full year 2019
Fourth Quarter GAAP net loss of $2.8 million,
or $0.05 per diluted share, and non-GAAP net income of $10.0
million, or $0.18 per diluted share
Company releases full year 2020 earnings
guidance
Stratasys Ltd. (NASDAQ: SSYS) announced financial results for
the fourth quarter and full year 2019.
Q4 2019 Financial Results Summary: Revenue for the fourth
quarter of 2019 was $160.2 million, compared to $177.1 million for
the same period last year.
- GAAP gross margin was 49.1% for the quarter, flat compared to
the same period last year.
- Non-GAAP gross margin was 52.4% for the quarter, compared to
52.2% for the same period last year.
- GAAP operating loss for the quarter was $3.3 million, compared
to an operating loss of $3.8 million for the same period last
year.
- Non-GAAP operating income for the quarter was $10.2 million,
compared to non-GAAP operating income of $12.8 million for the same
period last year.
- Non-GAAP EBITDA was $15.8 million for the quarter, compared to
$20.1 million for the same period last year.
- GAAP net loss for the quarter was $2.8 million, or ($0.05) per
diluted share, compared to a net income of $6.3 million, or $0.12
per diluted share, for the same period last year.
- Non-GAAP net income for the quarter was $10.0 million, or $0.18
per diluted share, compared to net income of $11.3 million, or
$0.21 per diluted share, for the same period last year.
- The Company used $3.4 million of cash from operations during
the fourth quarter and ended the period with $321.8 million in
cash, cash equivalents and short-term deposits.
“Since joining Stratasys I have taken the opportunity to begin
an in-depth review of the business and am already impressed by the
deep level of knowledge, professionalism, and dedication exhibited
at all levels of the organization. I strongly believe in the solid
foundation for growth that has been created at Stratasys, including
an innovative and expanding product portfolio, disciplined
financial management, and the industry’s leading distribution
partners,” said Yoav Zeif, Chief Executive Officer of Stratasys.
“Starting in the back half of this year we expect to introduce our
next phase of growth with a notable step-change in our portfolio as
we begin to launch a series of new products for both manufacturing
and design prototyping solutions. I am extremely optimistic
regarding the outlook of the business, and I believe that there is
tremendous potential to drive significant near-term and long-term
value for all of our stakeholders.”
Fiscal 2019 Financial Results Summary:
- Revenue for fiscal 2019 was $636.1 million compared to $663.2
million for fiscal 2018.
- GAAP operating loss for fiscal 2019 was $11.7 million, compared
to a loss of $8.8 million for fiscal 2018.
- Non-GAAP operating income for fiscal 2019 was $34.1 million,
compared to $36.5 million for fiscal 2018.
- GAAP net loss for fiscal 2019 was $10.8 million, or ($0.20) per
diluted share, compared to a loss of $11.0 million, or ($0.22) per
diluted share, for fiscal 2018.
- Non-GAAP net income for fiscal 2019 was $30.5 million, or $0.56
per diluted share, compared to non-GAAP net income of $27.8
million, or $0.52 per diluted share, for fiscal 2018.
- The Company used $11.2 million in cash from operations in
fiscal 2019.
Financial Guidance: Stratasys today issued the following
information regarding the Company’s guidance for the fiscal year
ending December 31, 2020:
- Revenue guidance of $620 million to $680 million.
- GAAP net loss of $30 million to $18 million, or ($0.54) to
($0.33) per diluted share.
- Non-GAAP net income of $25 million to $34 million, or $0.45 to
$0.60 per diluted share.
- Non-GAAP operating margins of 5% to 6.5%.
- Capital expenditures are projected at $40 million to $60
million.
Given the expected ongoing negative impact of not recording a
tax benefit on U.S. tax losses on the Company’s non-GAAP net
income, the Company believes that the rate of growth in its
non-GAAP operating income is the best measure of its
performance.
Non-GAAP earnings guidance excludes $25 million to $26 million
of projected amortization of intangible assets; $26 million to $28
million of share-based compensation expense; reorganization and
other expenses of ($3 million) to $4 million. Non-GAAP guidance
includes tax adjustments of $3 million to $4 million on the above
non-GAAP items.
Stratasys Ltd. Q4 2019 Conference Call Details
The Company plans to hold the conference call to discuss its
fourth quarter and full year 2019 financial results on Wednesday,
February 26, 2020 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast
on the Stratasys Web site at investors.stratasys.com; or directly
at the following web address:
https://edge.media-server.com/mmc/p/fkuz2uod.
To participate by telephone, the domestic dial-in number is
(866) 394-5776 and the international dial-in is (409) 350-3596. The
access code is 3394546.
Investors are advised to dial into the call at least ten minutes
prior to the call to register. The webcast will be available for 90
days at investors.stratasys.com, or by accessing the provided web
address.
Stratasys is a global leader in additive manufacturing or
3D printing technology, and is the manufacturer of FDM®, PolyJet™
and stereolithography 3D Printers. The Company’s technologies are
used to create prototypes, manufacturing tools, and production
parts for industries, including aerospace, automotive, healthcare,
consumer products and education. For 30 years, Stratasys products
have helped manufacturers reduce product-development time, cost,
and time-to-market, as well as reduce or eliminate tooling costs
and improve product quality. The Stratasys 3D printing ecosystem of
solutions and expertise includes: 3D printers, materials, software,
strategic consulting and professional services, and paid parts
production. Online at: http://www.stratasys.com,
http://blog.stratasys.com and LinkedIn.
Stratasys is a registered trademark and the Stratasys signet is
a trademark of Stratasys Ltd. and/or its subsidiaries or
affiliates. All other trademarks are the property of their
respective owners.
Cautionary Statement Regarding Forward-Looking
Statements
The statements in this press release regarding Stratasys'
strategy, and the statements regarding its projected future
financial performance, including the financial guidance concerning
its expected results for 2020, are forward-looking statements
reflecting management's current expectations and beliefs. These
forward-looking statements are based on current information that
is, by its nature, subject to rapid and even abrupt change. Due to
risks and uncertainties associated with Stratasys' business, actual
results could differ materially from those projected or implied by
these forward-looking statements. These risks and uncertainties
include, but are not limited to: the degree of our success at
introducing new or improved products and solutions that gain market
share; the degree of growth of the 3D printing market generally;
the impact of potential shifts in the prices or margins of the
products that we sell or services that we provide, including due to
a shift towards lower-margin products or services; the impact of
competition and new technologies; potential further charges against
earnings that we could be required to take due to impairment of
additional goodwill or other intangible assets; to the extent of
our success at successfully consummating acquisitions or
investments in new businesses, technologies, products or services;
potential changes in our management and board of directors; global
market, political and economic conditions, and in the countries in
which we operate in particular (including risks related to the
impact of coronavirus on our supply chain and business); costs and
potential liability relating to litigation and regulatory
proceedings; risks related to infringement of our intellectual
property rights by others or infringement of others' intellectual
property rights by us; the extent of our success at maintaining our
liquidity and financing our operations and capital needs; the
impact of tax regulations on our results of operations and
financial condition; and those additional factors referred to in
Item 3.D “Key Information - Risk Factors”, Item 4, “Information on
the Company”, Item 5, “Operating and Financial Review and
Prospects,” and all other parts of our Annual Report on Form 20-F
for the year ended December 31, 2019 (the “2019 Annual
Report”), which we expect to file with the Securities and
Exchange Commission (the “SEC”) on February 26, 2020.
Readers are urged to carefully review and consider the various
disclosures made throughout our 2019 Annual Report and the Reports
of Foreign Private Issuer on Form 6-K that attach Stratasys’
unaudited, condensed consolidated financial statements and its
review of its results of operations and financial condition, for
the quarterly periods throughout 2020, which will be furnished to
the SEC throughout 2020, and our other reports filed with or
furnished to the SEC, which are designed to advise interested
parties of the risks and factors that may affect our business,
financial condition, results of operations and prospects. Any
guidance provided, and other forward-looking statements made, in
this press release are made as of the date hereof, and Stratasys
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Use of non-GAAP financial
measures
The non-GAAP data included herein, which excludes certain items
as described below, are non-GAAP financial measures. Our management
believes that these non-GAAP financial measures are useful
information for investors and shareholders of our Company in
gauging our results of operations (x) on an ongoing basis after
excluding mergers, acquisitions and divestments related expense or
gains and reorganization-related charges or gains, and (y)
excluding non-cash items such as stock-based compensation expenses,
acquired intangible assets amortization, including intangible
assets amortization related to equity method investments,
impairment of long-lived assets, and the corresponding tax effect
of those items. These non-GAAP adjustments either do not reflect
actual cash outlays that impact our liquidity and our financial
condition or have a non-recurring impact on the statement of
operations, as assessed by management. These non-GAAP financial
measures are presented to permit investors to more fully understand
how management assesses our performance for internal planning and
forecasting purposes. The limitations of using these non-GAAP
financial measures as performance measures are that they provide a
view of our results of operations without including all items
indicated above during a period, which may not provide a comparable
view of our performance to other companies in our industry.
Investors and other readers should consider non-GAAP measures only
as supplements to, not as substitutes for or as superior measures
to, the measures of financial performance prepared in accordance
with GAAP. Reconciliation between results on a GAAP and non-GAAP
basis is provided in a table below.
Stratasys Ltd. Consolidated Balance
Sheets (Unaudited) (in thousands, except share data)
December 31,
December 31,
2019
2018
ASSETS Current
assets Cash and cash equivalents
$
293,484
$
393,167
Short-term deposits
$
28,300
-
Accounts receivable, net
132,558
138,146
Inventories
168,504
123,524
Prepaid expenses
6,567
6,398
Other current assets
29,659
22,936
Total current assets
659,072
684,171
Non-current assets Property, plant and
equipment, net
189,706
188,150
Goodwill
385,658
385,849
Other intangible assets, net
87,328
107,274
Operating lease right-of-use assets
20,936
-
Other non-current assets
38,819
22,810
Total non-current assets
722,447
704,083
Total assets
$
1,381,519
$
1,388,254
LIABILITIES AND EQUITY
Current liabilities Accounts payable
$
35,818
$
45,855
Current portion of long term-debt
-
5,143
Accrued expenses and other current liabilities
28,528
39,115
Accrued compensation and related benefits
34,013
31,703
Deferred revenues
52,268
53,965
Operating lease liabilities - short term
9,292
-
Total current liabilities
159,919
175,781
Non-current liabilities Long-term debt
-
22,000
Deferred revenues - long-term
16,039
18,422
Operating lease liabilities - long term
12,445
-
Other non-current liabilities
35,343
29,084
Total non-current liabilities
63,827
69,506
Total liabilities
223,746
245,287
Redeemable non-controlling interests
622
852
Equity Ordinary shares, NIS 0.01
nominal value, authorized 180,000 thousands shares; 54,428
thousands shares and 53,881 thousands shares issued and outstanding
at September 30, 2019 and December 31, 2018, respectively
150
146
Additional paid-in capital
2,706,892
2,681,048
Accumulated other comprehensive loss
(7,716
)
(7,753
)
Accumulated deficit
(1,542,175
)
(1,531,326
)
Total equity
1,157,151
1,142,115
Total liabilities and equity
$
1,381,519
$
1,388,254
Stratasys Ltd. Consolidated
Statements of Operations (in thousands, except per share
data)
Three Months Ended December
31,
Twelve Months Ended December
31,
2019
2018
2019
2018
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Net sales Products
$
108,968
$
124,537
$
430,746
$
456,504
Services
51,189
52,582
205,334
206,733
160,157
177,119
636,080
663,237
Cost of sales Products
46,825
56,502
182,430
203,622
Services
34,673
33,618
139,958
134,391
81,498
90,120
322,388
338,013
Gross profit
78,659
86,999
313,692
325,224
Operating expenses Research and development, net
24,019
24,379
94,253
98,964
Selling, general and administrative
57,921
66,423
231,138
235,107
81,940
90,802
325,391
334,071
Operating profit (loss)
(3,281
)
(3,803
)
(11,699
)
(8,847
)
Financial income (expense), net
1,760
747
4,555
633
Income (loss) before income taxes
(1,521
)
(3,056
)
(7,144
)
(8,214
)
Income tax expenses
439
3,626
3,523
4,736
Share in profits (losses) of associated companies
(907
)
12,910
(412
)
1,725
Net income (loss)
(2,867
)
6,228
(11,079
)
(11,225
)
Net loss attributable to non-controlling interests
(78
)
(79
)
(230
)
(261
)
Net income (loss) attributable to Stratasys Ltd.
$
(2,789
)
$
6,307
$
(10,849
)
$
(10,964
)
Net income (loss) per ordinary share attributable to
Stratasys Ltd. Basic
$
(0.05
)
$
0.12
$
(0.20
)
$
(0.22
)
Diluted
$
(0.05
)
0.12
$
(0.20
)
(0.22
)
Basic
54,435
53,854
54,260
53,751
Diluted
54,435
54,132
54,260
53,751
Three Months Ended December
31,
2019
Non-GAAP
2019
2018
Non-GAAP
2018
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
U.S. dollars and shares in
thousands (except per share amounts)
Gross profit (1)
$
78,659
$
5,294
$
83,953
$
86,999
$
5,499
$
92,498
Operating income (loss) (1,2)
$
(3,281
)
$
13,436
$
10,155
$
(3,803
)
$
16,574
$
12,771
Net income (loss) attributable to Stratasys Ltd. (1,2,3)
$
(2,789
)
$
12,741
$
9,952
$
6,307
$
4,993
$
11,300
Net income (loss) per diluted share attributable to Stratasys Ltd.
(4)
$
(0.05
)
$
0.23
$
0.18
$
0.12
$
0.09
$
0.21
(1)
Acquired intangible assets amortization expense
4,770
5,221
Non-cash stock-based compensation expense
478
294
Reorganization and other related costs
46
(16
)
5,294
5,499
(2)
Acquired intangible assets amortization expense
2,985
2,532
Non-cash stock-based compensation expense
4,325
3,686
Impairment charges of intangible assets and other long-lived assets
-
4,797
Reorganization and other related costs
556
60
Merger and acquisition and other expense
276
-
8,142
11,075
13,436
16,574
(3)
Corresponding tax effect
(721
)
1,853
Gain from equity method divestment and related amortization and
impairments
26
(13,434
)
12,741
$
4,993
(4)
Weighted average number of ordinary shares outstanding- Diluted
54,435
54,738
54,132
54,132
Twelve Months Ended December
31,
2019
Non-GAAP
2019
2018
Non-GAAP
2018
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
U.S. dollars and shares in thousands (except per share
amounts) Gross profit (1)
$
313,692
$
19,074
$
332,766
$
325,224
$
22,351
$
347,575
Operating income (loss) (1,2)
$
(11,699
)
$
45,812
$
34,113
$
(8,847
)
$
45,324
$
36,477
Net income (loss) attributable to Stratasys Ltd. (1,2,3)
$
(10,849
)
$
41,315
$
30,466
$
(10,964
)
$
38,782
$
27,818
Net income (loss) per diluted share attributable to Stratasys Ltd.
(4)
$
(0.20
)
$
0.76
$
0.56
$
(0.22
)
$
0.74
$
0.52
(1)
Acquired intangible assets amortization expense
16,484
20,866
Non-cash stock-based compensation expense
1,848
1,474
Reorganization and other related costs
742
11
19,074
22,351
(2)
Acquired intangible assets amortization expense
8,673
10,161
Impairment charges of intangible assets and other long-lived assets
-
4,797
Non-cash stock-based compensation expense
18,712
14,212
Gain from divestiture, net of transaction costs
(3,578
)
(7,016
)
Reorganization and other related costs
2,655
691
Merger and acquisition and other expense
276
128
26,738
22,973
45,812
45,324
(3)
Corresponding tax effect
(2,919
)
(808
)
Gain from equity method divestment, related write-offs and
amortization
(1,578
)
(5,734
)
$
41,315
$
38,782
(4)
Weighted average number of ordinary shares outstanding- Diluted
54,260
54,713
53,751
53,898
Stratasys Ltd. Reconciliation of GAAP to Non-GAAP
Forward Looking Guidance Fiscal Year 2019
(in millions, except per share data)
GAAP net
loss
($30) to ($18)
Adjustments
Stock-based compensation expense
$26 to $28
Intangible assets amortization expense
$25 to $26
Reorganization and other related costs
$3 to $4
Tax expense related to Non-GAAP adjustments
($3) to ($4)
Non-GAAP net income
$25 to $34
GAAP loss per share
($0.54) to ($0.33)
Non-GAAP diluted earnings per share
$0.45 to $0.60
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200226005323/en/
Stratasys Investor Relations Yonah Lloyd Vice President -
Investor Relations Yonah.Lloyd@stratasys.com
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