by • May 10, 2016 • No Comments
Overall, when it comes to discussing projections for the 3D printing industry, we hear that the dollar signs should be plentiful indeed as we ring in most additional new years, new products, and new materials. The subject can become confusing yet when we see sizeable companies yet like 3D Systems and Stratasys revealing numbers that range of dreadful to less than stellar.
Questions abound as to why the sizeabler companies aren’t holding it together additional lucratively, but such is the way of big business and an at any time changing and incredibly competitive marketplace, with shakeups internally always causing upheaval, actually if temporarily. Materialise, with Q1 2016 outcomes just released, now demonstrates ractuallyues in line with the Street estimate, alyet with a greater net loss than expected.
The Belgium-headquartered company shows that for the firstly quarter ending March 31, 2016, there were indeed numerous increases, to include the next:
Total ractuallyue increase of 14.2% of the firstly quarter of 2015 to 26,667 kEUR. This is up of 23,348 kEUR for the firstly quarter of 2015, driven by acquires in all three of Materialise’s segments.Adjusted EBITDA (earnings preceding interest, taxes, depreciation, and amortization) rose to 1,135 kEUR of (288) kEUR for the firstly quarter of 2015. This is seen as a outcome of combined and continued ractuallyue growth, with operational expenses increasing just slightly. The Adjusted EBITDA margin in the firstly quarter was 4.3% compared to (1.2)% in the firstly quarter of last year.Total deferred ractuallyue of yearly software sales and maintenance contracts increased 1,731 kEUR of 12,231 kEUR for the firstly quarter of 2015 to 13,962 kEUR for the firstly quarter of 2016.Materialise Software ractuallyue was up 21.5% of the firstly quarter of 2015. This proprietary software enhances hardware around the globe, and has pretty been a boon for the company, all due to continued ractuallyues, increasing and produced by OEMS, as well as steadily expanding income of recurring licenses. Segment EBITDA increased to 2,765 kEUR of 2,215 kEUR while the segment EBITDA margin rose to 37.2% of 36.2% in the prior-year period.Materialise Manufacturing ractuallyue was up 13.0% of the firstly quarter of 2015. Featuring an integrated suite of both 3D printing and engineering services for customers in the industrial/commercial sector, this increase was up to 10,606 kEUR for the firstly quarter of 2016 of 9,384 kEUR for the firstly quarter of 2015. The company sees this as a outcome of higher end part making.Segment EBITDA rose to 257 kEUR of (40) kEUR while the segment EBITDA margin increased to 2.4% of (0.4)% for the 2015 quarter.Excluding the company’s growth businesses, i.materialise and RapidFit, the segment EBITDA margin for the firstly quarter was 9.7% as compared to 10.0% for the same quarter of the prior year.
“In the firstly quarter, we continued to execute on our strategy of strengthening Materialise’s position as a major enabler of 3D printing applications and performed in line with our expectations. Ractuallyue rose 14.2% and Adjusted EBITDA increased of (288) kEUR to 1,135 kEUR,” states Executive Chairman Peter Leys.
“In Materialise Software, we have been bringing the final steps to commence our Magics 3D Print Suite, supporting our positioning as the backbone of industrial 3D Printing. In Materialise Medical, we commenceed our Mimics Care Suite, turn it intod to accelerate the integration of certified medical 3D printing inside hospitals. In Materialise Manufacturing, we have been making progress in establishing partnerships with market leaders to additional our goal of participating in worthwhile end part making projects.”
Gross profit was 15,962 kEUR, or 59.9% of ractuallyue, for the firstly quarter of 2016 compared to 13,467 kEUR, or 57.7% of ractuallyue, for the firstly quarter of 2015, outcomeing of a continued shift of a ractuallyue mix towards both industrial and medical software licenses as well as an improvement of the gross margin of the Materialise Manufacturing segment.
According to Materialise, research and development, sales and marketing, and general and administrative expenses increased, in the aggregate, by 5.4% to 18,237 kEUR of 17,297 kEUR for the firstly quarter of 2015. Whilst R&D expenses remained relatively stable, moving of 4,507 kEUR to 4,372 kEUR, S&M expenses minimized modestly of 9,215 kEUR to 8,815 kEUR, and G&A expenses increased of 3,575 kEUR to 5,050 kEUR. Materialise sees these changes as a outcome of new managerial ‘structure and support’ that’s been implemented over the past 18 months in both R&D and S&M—and indeed, these have been put in place due to worthwhile growth requiring greater resources.
“A number of employees with mixed roles inside these groups have evolved into additional managerial/administrative roles, and their cost as well as sure other expenses are now categorized into G&A,” states the company.
In terms of minimizes and losses, Materialise reported the next:
Net other operating income minimized by 494 kEUR to 1,286 kEUR, compared to 1,780 kEUR for the firstly quarter of 2015. This income consists primarily of withholding tax exemptions for qualifying researchers, development grants, partial funding of R&D projects and currency exchange outcomes on purchase and sales transactions. Materialise explains the minimize versus last year as primarily due to the variance in the currency exchange effect, outcomeing in a loss of (48) kEUR of a acquire of 493 kEUR in the same period last year.Net financial outcome was (734) kEUR, compared to 1,472 kEUR for the prior-year period, reflecting the variance in the currency exchange rate, primarily on the portion of the company’s IPO proceeds held in U.S. dollars versus the euro, a reported but mostly unrealized exchange loss.Net loss for the firstly quarter of 2016 was (3,151) kEUR, compared to a net loss of (888) kEUR for the same period in the prior year, as a outcome of an increase of income tax by (1,010) kEUR (primarily due to the usage of a deferred tax asset) and a minimize of their net financial outcome by (2,206) kEUR, that were partially offset by an improvement of operating profit by 1,061 kEUR.Total comprehensive loss for the firstly quarter of 2015, that reflects exchange differences on translation of foreign operations, was (4,115) kEUR compared to a acquire of 425 kEUR for the same period in the prior year.
As of March 31, 2016, the company had cash and equivalents of 49,435 kEUR compared to 50,726 kEUR at December 31, 2015. Cash flow of operating activities in the firstly quarter of 2016 was 1,376 kEUR. Net shareholders’ equity at March 31, 2016 was 79,028 kEUR, a minimize of 3,927 kEUR since December 31, 2015.
The stock increased 1.85% or $0.12 on May 10, hitting $6.87.
2016 Guidance of Materialise is as follows:
“As detailed in the company’s year-end fiscal 2015 earnings announcement, in fiscal 2016 management expects to report consolidated ractuallyue between 115,000 – 120,000 kEUR and Adjusted EBITDA between 7,000 – 9,000 kEUR. Management in addition expects the amount of deferred ractuallyue the company generates of yearly licenses and maintenance to increase by an amount between 3,000 – 4,000 kEUR of 13,136 kEUR as of December 31, 2015.”
A conference call regarding financial outcomes for Q1 was held this morning at 8:30 a.m., with the next participating: Wilfried Vancraen, Founder and Chief Executive Officer; Peter Leys, Executive Chairman; and Johan Albrecht, Chief Financial Officer. If you are interested in hearing a replay of this, you may acquire access by dialing 855-859-2056 (international members should dial 404-537-3406). The access code for the replay is #88439870. Materialise states that a webcast of the conference call and slide presentation can be archived on the company’s website for one year.
Materialise, alyet headquartered in Belgium, is a company that has been in business for over 25 years, and is respected of the world. Known for their software development, as well as one of the sizeablest printing facilities, we follow their activities continually, with an emphasis on their contributions to the medical sector, of helping to turn it into the world’s firstly 3D printed wheelchair to their ongoing work in offering unsurpassed software, that has been responsible for assisting in cases such as that of an new and successful jaw replacement surgery.
Unless otherwise stated, all translations of euros to US dollars were created at a rate of EUR 1.00 to USD 1.1385, the 12:00 noon ET buying rate of the Federal Reserve Bank of New York for the euro on March 31, 2016.
Consolidated income statements (Unaudited)
For the three months ended March 31
(In thousands, except EPS)
Ractuallyue30,36026,66723,348Cost of Sales(12,188)(10,705)(9,881)Gross Profit18,17215,96213,467Research and development expenses(4,978)(4,372)(4,507)Sales and marketing expenses(10,036)(8,815)(9,215)General and administrative expenses(5,749)(5,050)(3,575)Net other operating income (expenses)1,4641,2861,780Operating (Loss) Profit(1,127)(989)(2,050)Financial expenses(1,021)(897)(449)Financial income1861631,921Share in loss of a joint venture(191)(168)(60)Profit preceding taxes(2,153)(1,891)(638)Income Taxes (benefit)(1,435)(1,260)(250)Net profit (loss)(3,588)(3,151)(888)Net profit (loss) attributable to:The owners of the parent(3,588)(3,151)(835)Non-controlling interest––(53)EPS attributable to the owners of the parentBasic(0.08)(0.07)(0.02)Diluted(0.08)(0.07)(0.02)Weighted average basic shares impressive
Weighted average fully diluted shares impressive
Consolidated statements of comprehensive income (Unaudited)
For the three months ended March 31
Net profit (loss) for the year(3,588)(3,151)(888)Other comprehensive incomeExchange differences on translation of foreign operations(1,098)(964)1,313Other comprehensive income (loss), net of taxes(1,098)(964)1,313Total comprehensive income (loss) for the year, net of taxes(4,686)(4,115)425Total comprehensive income (loss) attributable to:
The owners of the parent
Consolidated statements of financial position (Unaudited)
(in thousands of euros)
20162015AssetsCurrent assetsInventory5,1725,387Trade receivables23,15222,843Other current assets4,9814,993Held to maturity investments––Cash and cash equivalent49,43550,726Total current assets82,74083,949Non-current assetsGoodcan9,2699,664Intangible assets9,0599,657Property, plant & equipment38,10238,400Investments in joint ventures8501,018Deferred tax assets1091,092Other financial assets323356Total non-current assets57,71260,187Total assets140,452144,136Equity and liabilitiesCurrent liabilitiesLoans & borrowings4,1374,482Trade Payables8,4709,712Tax Payables495255Deferred income18,11616,509Other current liabilities9,2529,212Total current liabilities40,47040,170Non-current liabilitiesLoans & borrowings16,60516,607Deferred tax liabilities1,9532,068Deferred income6592Other non-current liabilities2,3312,244Total non-current liabilities20,95421,011Net equityShare capital2,7292,729Share premium78,28478,098Consolidated reserves(1,742)1,407Other comprehensive income (loss)(243)721Equity attributable to the owners of the parent79,02882,955Non-controlling interest––Total equity79,02882,955Total equity and liabilities140,452144,136
Consolidated cash flow statements (Unaudited)
(in thousands of euros)For the three months ended
Operating activitiesNet profit (loss) for the period(3,151)(888)Non-cash and operating adjustmentsDepreciation of property, plant & equipment1,4481,219Amortization of intangible assets462323Share-based payment expense214220Loss (acquire) on disposal of property, plant & equipment–(111)Fair value adjustment contingent liabilities––Movement in provisions and allowance for bad debt42(2)Financial income(48)(137)Financial expense254240Impact of foreign currencies528(2,024)Share of loss in a joint venture16860Deferred tax expense (income)868171Income taxes35879Other–(5)Working capital adjustmentsIncrease in trade receivables and other receivables(285)(1,364)Decrease (increase) in inventories215(775)Increase in trade payables and other payables4213,988Income taxes paid(118)(176)Net cash flow of operating activities1,376818Investing activitiesPurchase of property, plant & equipment(1,325)(2,809)Purchase of intangible assets(265)(234)Proceeds of the sale ofproperty, plant & equipment, net852,535Acquisition of subsidiaries–(1,797)Investments in joint-ventures–(500)Investments in held to maturity investments–3,000Interest received349Net cash flow utilized in investing activities(1,502)244Financing activitiesProceeds of loans & borrowings and convertible debt604269Repayment of loans & borrowings(656)(2,320)Repayment of finance leases(419)(342)Purchase of non-controlling interest–(1,377)Capital increase in parent company–580Interest paid(141)(137)Other financial income (expense)(33)(32)Net cash flow of financing activities(645)(3,359)Net increase of cash and cash equivalents(771)(2,297)Cash and cash equivalents at beginning of period50,72651,019Exchange rate differences on cash & cash equivalents(520)1,849Cash & cash equivalents at end of period49,43550,571
Segment P&L (Unaudited)
(In thousands of euros, except percentages)
For the three month period ended March 31, 2016
Ractuallyues7,4318,60610,60626,6432426,667Segment EBITDA2,765(530)2572,492(1,571)921Segment EBITDA %37.2%(6.2)%2.4%9.4%3.5%
For the three month period ended March 31, 2015
Ractuallyues6,1167,8489,38423,348–23,348Segment EBITDA2,215(746)(40)1,429(1,937)(508)Segment EBITDA %36.2%(9.5)%(0.4)%6.1%(2.2)%
Reconciliation of Net Profit/(Loss) to EBITDA and Adjusted EBITDA (Unaudited)
For the three months
ended March 31
(in thousands of euros)20162015Net profit/(loss)(3,151)(888)Income taxes1,260250Financial expenses897449Financial income(163)(1,921)Share in loss of a joint venture16860Depreciation & amortization1,9101,542EBITDA921(508)Non-recurring IPO expenses(1)00
Non-cash stock-based compensation
(1) Non-recurring IPO expenses represent fees and costs incurred in connection with the company’s first public offering.
(2) Non-cash stock-based compensation expenses represent the cost of equity-settled and cash-settled share-based payments to employees.
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