The ExOne Company Reports 2018 Second Quarter Results
-
2018 Q2 revenue of $10.9 million; orders on track for full year 2018 revenue growth in excess of 20%
- Machine revenue of $3.2 million
- Non-machine revenue up 17% to $7.7 million
- Backlog expanded to $26.6 million at quarter end
- Reiterating goal of achieving net income and positive operating cash flow in
2019
The ExOne Company (NASDAQ:XONE) (“ExOne” or “the Company”), a global provider of three-dimensional (“3D”)
printing machines and 3D printed and other products, materials and services to industrial customers, reported financial results
today for the second quarter and first half year ended June 30, 2018.
S. Kent Rockwell, ExOne’s Chief Executive Officer, stated “Our financial performance in the second quarter and first half was
less than anticipated. While order flow and deliveries to customers were strong, our recognition of machine revenue was unfavorably
impacted by timing of installation and customer acceptance of our printers. We have seen good growth in machine and non-machine
order activity which we expect will substantially enhance second half performance in meeting our full year revenue growth rate in
excess of 20%. Historically we have experienced machine revenue cadence of approximately 30% of annual machine revenue in the first
half of a year and 70% in the second half. We believe that the momentum of our recent and expected orders will drive machine
revenue to approximately 80% of annual machine revenue in the second half of 2018.”
He continued, “During the quarter we sold the first unit of our newest direct 3D printing machine platform, the Innovent+. Based
on our Innovent platform, it is enhanced with our new ultrasonic recoater, which is designed for material flexibility and ease of
use. The new machine also features increased materials handling capabilities. In addition, the development of our new large format
fine powder direct printer is planned for customer delivery of units in the second half of 2019.”
Mr Rockwell added, “Expenses associated with our leadership changes, global cost realignment program and inventory charges
impacted our second quarter results. Our global cost realignment program has been designed to remove excess costs throughout our
organization, improving efficiency without impacting the pace or extent of our technological goals. To date, we have implemented or
targeted more than $6 million of annualized cost reductions. More savings will be effected during the balance of this year with an
overall goal of cost savings of approximately $10 million in 2019, as compared with 2018. Our research and development activities
remain vigorous, and we now estimate that our 2018 R&D expenses will exceed 2017 by approximately $4 million. With cost
reductions and improving revenues, we expect our operating cash flow to stabilize in the second half of this year.”
Second Quarter and First Half Revenue – Non-Machine Revenue Up 17% and 14%, Respectively
|
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|
|
Quarter Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
(in millions) |
|
|
|
2018 |
|
2017 |
|
% Change |
|
2018 |
|
2017 |
|
% Change |
Revenue by Product Line |
|
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|
3D Printing Machines |
|
|
|
$ |
3.2 |
|
30 |
% |
|
$ |
4.3 |
|
39 |
% |
|
(25%) |
|
$ |
7.7 |
|
34 |
% |
|
$ |
8.5 |
|
39 |
% |
|
(9%) |
3D Printed and Other Products, Materials and Services |
|
|
|
|
7.7 |
|
70 |
% |
|
|
6.5 |
|
61 |
% |
|
17% |
|
|
15.1 |
|
66 |
% |
|
|
13.2 |
|
61 |
% |
|
14% |
Total Revenue |
|
|
|
$ |
10.9 |
|
100 |
% |
|
$ |
10.8 |
|
100 |
% |
|
1% |
|
$ |
22.8 |
|
100 |
% |
|
$ |
21.7 |
|
100 |
% |
|
5% |
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Consolidated revenue for the 2018 second quarter grew 1% over the prior-year second quarter.
Machine revenue was down 25% to $3.2 million. Seven machines were sold in the 2018 second quarter as compared with eight in the
2017 second quarter, with mix of machine type impacting the revenue comparison.
Non-machine revenue (3D printed and other products, materials and services) was up 17% to $7.7 million in the second quarter of
2018, compared with the prior year. This increase was principally driven by higher revenue in the Company’s direct production
service center printing operations resulting from increased customer acceptance of its binder jetting technology, as well as an
increase in consumable material and service revenue. The increase was partially offset by lower revenue at indirect service
centers.
Consolidated revenue for the first half of 2018 grew 5% over the prior-year first half. Machine revenue was down 9% to $7.7
million. While the Company recorded revenue for 13 machines in each period, the revenue was impacted by mix of machine type.
Non-machine revenue grew 14% in the first half of 2018 compared with the first half of 2017.
Given the long sales cycle and significance of a machine’s average selling price relative to total revenue, fluctuations in
machine-sale revenue vary from quarter to quarter. ExOne does not believe that such quarter-to-quarter fluctuations are necessarily
indicative of larger trends.
Second Quarter Operations – Impacted by Inefficiencies and Cost Realignment Initiative
($ in millions,
except per-share amounts)
|
|
|
|
Q2 2018 |
|
Q2 2017 |
|
Change |
|
% Change |
Gross profit |
|
|
|
$ |
1.6 |
|
|
$ |
2.0 |
|
|
($0.4 |
) |
|
(22 |
%) |
Gross margin |
|
|
|
|
14.6 |
% |
|
|
18.8 |
% |
|
|
|
|
Operating loss |
|
|
|
|
($8.0 |
) |
|
|
($6.3 |
) |
|
($1.7 |
) |
|
(26 |
%) |
Net loss |
|
|
|
|
($8.0 |
) |
|
|
($6.4 |
) |
|
($1.6 |
) |
|
(26 |
%) |
Diluted EPS |
|
|
|
|
($0.50 |
) |
|
|
($0.40 |
) |
|
($0.10 |
) |
|
(25 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Gross profit of $1.6 million was down 22% from the second quarter of 2017. The 2018 period was impacted by higher costs
including consulting and professional fees, a reduction in gains from property and equipment disposals, and the unfavorable impact
of exchange rate changes. Offsetting those cost increases was a decrease in net inventory charges.
R&D expense of $3.2 million for the quarter was up $0.9 million compared with the 2017 second quarter. The increase was
primarily due to employee-related costs and consulting and professional fees incurred to accelerate new product development
activities during 2018, as well as the unfavorable impact of exchange rate changes.
SG&A expense was $6.4 million compared with $6.0 million in the 2018 second quarter. The increase was primarily due to
employee-related costs including termination costs associated with the previously announced executive leadership changes and global
cost realignment, as well as the unfavorable impact of exchange rate changes.
The 2018 second quarter net loss was $8.0 million, or $0.50 per share, compared with a $6.4 million net loss, or $0.40 per
share, in the second quarter of 2017. The higher net loss was principally due to lower gross profit and higher operating expenses
described above.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was a $6.7
million loss in the 2018 second quarter, compared with a $4.8 million loss in last year’s second quarter. ExOne management believes
that, when used in conjunction with other measures prepared in accordance with accounting principles generally accepted in the
United States (“GAAP”), Adjusted EBITDA assists in the understanding of its financial results. See the attached tables for
important disclosures regarding the Company’s use of Adjusted EBITDA as well as a reconciliation of net loss (most directly
comparable GAAP measure) to Adjusted EBITDA for the quarters ended June 30, 2018 and 2017.
First Half 2018 Review – Advancing Technology and Product Capabilities
($ in millions,
except per-share amounts)
|
|
|
|
YTD 2018 |
|
YTD 2017 |
|
Change |
|
% Change |
Gross profit |
|
|
|
$ |
4.2 |
|
|
$ |
3.6 |
|
|
$ |
0.6 |
|
|
16 |
% |
Gross margin |
|
|
|
|
18.5 |
% |
|
|
16.7 |
% |
|
|
|
|
Operating loss |
|
|
|
|
($14.4 |
) |
|
|
($13.0 |
) |
|
|
($1.4 |
) |
|
(11 |
%) |
Net loss |
|
|
|
|
($14.4 |
) |
|
|
($13.2 |
) |
|
|
($1.2 |
) |
|
(9 |
%) |
Diluted EPS |
|
|
|
$ |
(0.89 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.07 |
) |
|
(9 |
%) |
|
|
|
|
|
|
|
|
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|
Gross profit was $4.2 million, resulting in an 18.5% gross margin in the first half of 2018, compared with 16.7% in the first
half of 2017. The 2018 first half benefited from higher revenue, partially offset by higher costs including consulting and
professional fees, a reduction in gains from property and equipment disposals, and the unfavorable impact of exchange rate changes.
Offsetting those cost increases was a decrease in net inventory charges.
R&D expense was $6.0 million in the 2018 first half compared with $4.3 million in the 2016 first half, with the increase, as
described above, associated with the accelerated advancement of the Company’s technology.
SG&A for the 2018 first half was $12.6 million, up 2% compared with the prior-year period. The increase primarily occurred
in the second quarter noted above.
The net loss was $14.4 million, or $0.89 per share, for the first half of 2018 compared with $13.2 million, or $0.82 per share,
in the 2017 first half.
Adjusted EBITDA, a non-GAAP measure, was an $11.2 million loss in the 2018 first half, compared with an $8.6 million loss in
last year’s first half. ExOne management believes that, when used in conjunction with other measures prepared in accordance with
accounting principles generally accepted in the United States (“GAAP”), Adjusted EBITDA assists in the understanding of its
financial results. See the attached tables for important disclosures regarding the Company’s use of Adjusted EBITDA as well as a
reconciliation of net loss (most directly comparable GAAP measure) to Adjusted EBITDA for the six months ended June 30, 2018 and
2017.
Capitalization – Cash Invested in Inventory Production for Second Half Revenue
Cash, cash equivalents and restricted cash as of June 30, 2018 were $13.0 million, compared with $22.2 million at December 31,
2017. Cash used for operating activities in the 2018 first half was $7.9 million, compared with $6.9 million in the first half of
2017. The 2018 use of cash included an increase of $7.1 million in inventories to support the Company’s higher backlog and
anticipated growth in the second half of 2018. Cash capital expenditures were $0.8 million and $0.4 million in the 2018 and 2017
first six months, respectively. In 2018, the Company expects total cash capital expenditures of $1.5 million to $2 million.
Outlook – Reaffirming 2018 Revenue Growth; Net Income, Positive Operating Cash Flow in 2019
Mr. Rockwell concluded, “Our current backlog, order activity thus far into the third quarter and our increasing sales pipeline
give us confidence in our expectations for 2018 revenue growth of 20% over 2017. We further believe that our existing capital
resources will be sufficient to support our operating plan. We are intently focused on furthering the advancement of our binder
jetting technology and achieving net income and positive operating cash flow in 2019.”
Webcast and Conference Call
ExOne will host a conference call and live webcast on Friday, August 10 at 8:30 a.m. Eastern Time. During the conference call
and webcast, management will review the financial and operating results for the 2018 second quarter and first half, along with
ExOne’s corporate strategies and outlook. A question-and-answer session will follow. The teleconference can be accessed by calling
(201) 689-8470. The webcast can be monitored on the Company’s website at www.investor.exone.com/.
A telephonic replay of the conference call will be available from 11:30 a.m. ET on the day of the teleconference through Friday,
August 17, 2018. To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 13681119, or access the
webcast replay via the Company’s website, where a transcript will also be posted once available.
About ExOne
ExOne is a global provider of 3D printing machines and 3D printed and other products, materials and services to industrial
customers. ExOne's business primarily consists of manufacturing and selling 3D printing machines and printing products to
specification for its customers using its installed base of 3D printing machines. ExOne’s machines serve direct and indirect
applications. Direct printing produces a component; indirect printing makes a tool to produce a component. ExOne offers
pre-production collaboration and print products for customers through its network of ExOne Adoption Centers (EACs) and Production
Service Centers (PSCs). ExOne also supplies the associated materials, including consumables and replacement parts, and other
services, including training and technical support that is necessary for purchasers of its 3D printing machines to print products.
The Company believes that its ability to print in a variety of industrial materials, as well as its industry-leading volumetric
output (as measured by build box size and printing speed) uniquely position ExOne to serve the needs of industrial customers.
Safe Harbor Regarding Forward Looking Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act
with respect to the Company’s future financial or business performance, strategies, expectations, or planned results of its global
cost realignment initiative. Forward-looking statements typically are identified by words or phrases such as “trend,” “potential,”
“opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,”
“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” as well as similar expressions, or future or
conditional verbs such as “will,” “would,” “should,” “could” and “may.”
The Company cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which
change over time. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to and does
not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in
forward-looking statements and future results could differ materially from historical performance.
In addition to risk factors previously disclosed in the Company’s reports and those identified elsewhere in its Annual Report
on Form 10-K, the following factors, among others, could cause results to differ materially from forward-looking statements or
historical performance: the Company’s ability to generate operating profits; fluctuations in the Company’s revenues and operating
results; the results of its global cost realignment initiative; the Company’s competitive environment and its competitive position;
ExOne’s ability to enhance its current three-dimensional (“3D”) printing machines and technology and develop new 3D printing
machines; the Company’s ability to qualify more industrial materials in which it can print; demand for ExOne’s products; the
availability of skilled personnel; the impact of loss of key management; the impact of market conditions and other factors on the
carrying value of long-lived assets; the Company’s ability to continue as a going concern; the impact of customer specific terms in
machine sale agreements on the period in which the Company recognizes revenue; risks related to global operations including effects
of foreign currency; the adequacy of sources of liquidity; the amount and sufficiency of funds for required capital expenditures,
working capital, and debt service; dependency on certain critical suppliers; nature or impact of alliances and strategic
investments; reliance on critical information technology systems; the effect of litigation, contingencies and warranty claims;
liabilities under laws and regulations protecting the environment; the impact of governmental laws and regulations; operating
hazards, war, terrorism and cancellation or unavailability of insurance coverage; the impact of disruption of the Company’s
manufacturing facilities, production service centers (“PSCs”) or ExOne Adoption Centers (“EACs”); the adequacy of ExOne’s
protection of its intellectual property; and expectations regarding demand for the Company’s industrial products, operating
revenues, operating and maintenance expenses, insurance expenses and deductibles, interest expenses, debt levels, and other matters
with regard to outlook.
These and other important factors, including those discussed in the Company’s Annual Report on Form 10-K, may cause the
Company’s actual results of operations to differ materially from any future results of operations expressed or implied by the
forward-looking statements contained therein. Before making a decision to purchase ExOne common stock, you should carefully
consider all of the factors identified in its Annual Report on Form 10-K that could cause actual results to differ from these
forward-looking statements.
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The ExOne Company |
Statement of Consolidated Operations |
(in thousands, except per-share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
June 30,
|
|
% Change |
|
Six Months Ended
June 30,
|
|
% Change |
|
|
|
|
2018 |
|
2017 |
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
$ |
10,857 |
|
|
$ |
10,799 |
|
|
1 |
% |
|
$ |
22,750 |
|
|
$ |
21,668 |
|
|
5 |
% |
Cost of sales |
|
|
|
|
9,267 |
|
|
|
8,773 |
|
|
6 |
% |
|
|
18,544 |
|
|
|
18,039 |
|
|
3 |
% |
Gross profit |
|
|
|
|
1,590 |
|
|
|
2,026 |
|
|
(22 |
%) |
|
|
4,206 |
|
|
|
3,629 |
|
|
16 |
% |
Gross margin |
|
|
|
|
14.6 |
% |
|
|
18.8 |
% |
|
|
|
|
18.5 |
% |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
|
|
3,235 |
|
|
|
2,349 |
|
|
38 |
% |
|
|
6,030 |
|
|
|
4,348 |
|
|
39 |
% |
Selling, general and administrative |
|
|
|
|
6,353 |
|
|
|
6,013 |
|
|
6 |
% |
|
|
12,555 |
|
|
|
12,276 |
|
|
2 |
% |
|
|
|
|
|
9,588 |
|
|
|
8,362 |
|
|
15 |
% |
|
|
18,585 |
|
|
|
16,624 |
|
|
12 |
%
|
Operating loss |
|
|
|
|
(7,998 |
) |
|
|
(6,336 |
) |
|
(26 |
%) |
|
|
(14,379 |
) |
|
|
(12,995 |
) |
|
(11 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
73 |
|
|
|
23 |
|
|
217 |
% |
|
|
106 |
|
|
|
45 |
|
|
136 |
% |
Other (income) expense – net |
|
|
|
|
(52 |
) |
|
|
35 |
|
|
NM |
|
|
|
(98 |
) |
|
|
145 |
|
|
NM |
|
|
|
|
|
|
21 |
|
|
|
58 |
|
|
(64 |
%) |
|
|
8 |
|
|
|
190 |
|
|
(96 |
%) |
Loss before income taxes |
|
|
|
|
(8,019 |
) |
|
|
(6,394 |
) |
|
(25 |
%) |
|
|
(14,387 |
) |
|
|
(13,185 |
) |
|
(9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
|
|
18 |
|
|
|
9 |
|
|
100 |
% |
|
|
35 |
|
|
|
9 |
|
|
289 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
|
$ |
(8,037 |
) |
|
$ |
(6,403 |
) |
|
(26 |
%) |
|
$ |
(14,422 |
) |
|
$ |
(13,194 |
) |
|
(9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
(0.50 |
) |
|
$ |
(0.40 |
) |
|
(25 |
%) |
|
$ |
(0.89 |
) |
|
$ |
(0.82 |
) |
|
(9 |
%) |
Diluted |
|
|
|
$ |
(0.50 |
) |
|
$ |
(0.40 |
) |
|
(25 |
%) |
|
$ |
(0.89 |
) |
|
$ |
(0.82 |
) |
|
(9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (basic and diluted) |
|
|
|
|
16,150 |
|
|
|
16,046 |
|
|
|
|
|
16,144 |
|
|
|
16,037 |
|
|
|
|
|
|
|
|
|
|
The ExOne Company |
Consolidated Balance Sheet |
(in thousands, except per-share and share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
$ |
11,584 |
|
|
$ |
21,848 |
|
Restricted cash |
|
|
|
|
1,463 |
|
|
|
330 |
|
Accounts receivable - net of allowance of $1,122 (2018) and $1,193 (2017) |
|
|
|
|
5,003 |
|
|
|
8,647 |
|
Inventories - net |
|
|
|
|
20,551 |
|
|
|
15,430 |
|
Prepaid expenses and other current assets |
|
|
|
|
2,677 |
|
|
|
1,710 |
|
Total current assets |
|
|
|
|
41,278 |
|
|
|
47,965 |
|
Property and equipment - net |
|
|
|
|
44,791 |
|
|
|
46,797 |
|
Intangible assets - net |
|
|
|
|
- |
|
|
|
62 |
|
Other noncurrent assets |
|
|
|
|
770 |
|
|
|
736 |
|
Total assets |
|
|
|
$ |
86,839 |
|
|
$ |
95,560 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current portion of long-term debt |
|
|
|
$ |
140 |
|
|
$ |
137 |
|
Current portion of capital leases |
|
|
|
|
16 |
|
|
|
15 |
|
Accounts payable |
|
|
|
|
4,756 |
|
|
|
4,291 |
|
Accrued expenses and other current liabilities |
|
|
|
|
6,665 |
|
|
|
6,081 |
|
Deferred revenue and customer prepayments |
|
|
|
|
13,460 |
|
|
|
8,282 |
|
Total current liabilities |
|
|
|
|
25,037 |
|
|
|
18,806 |
|
Long-term debt - net of current portion |
|
|
|
|
1,437 |
|
|
|
1,508 |
|
Capital leases - net of current portion |
|
|
|
|
41 |
|
|
|
36 |
|
Other noncurrent liabilities |
|
|
|
|
1 |
|
|
|
1 |
|
Total liabilities |
|
|
|
|
26,516 |
|
|
|
20,351 |
|
Contingencies and commitments |
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
Common stock, $0.01 par value, 200,000,000 shares authorized, 16,149,617 (2018) |
|
|
|
|
|
|
and 16,124,617 (2017) shares issued and outstanding |
|
|
|
|
161 |
|
|
|
161 |
|
Additional paid-in capital |
|
|
|
|
174,092 |
|
|
|
173,718 |
|
Accumulated deficit |
|
|
|
|
(103,608 |
) |
|
|
(89,186 |
) |
Accumulated other comprehensive loss |
|
|
|
|
(10,322 |
) |
|
|
(9,484 |
) |
Total stockholders' equity |
|
|
|
|
60,323 |
|
|
|
75,209 |
|
Total liabilities and stockholders' equity |
|
|
|
$ |
86,839 |
|
|
$ |
95,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The ExOne Company |
Statement of Consolidated Cash Flows |
(in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
June 30, |
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
Net loss |
|
|
|
$ |
(14,422 |
) |
|
$ |
(13,194 |
) |
Adjustments to reconcile net loss to net cash used for operations: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
2,829 |
|
|
|
3,589 |
|
Equity-based compensation |
|
|
|
|
374 |
|
|
|
835 |
|
Amortization of debt issuance costs |
|
|
|
|
27 |
|
|
|
3 |
|
(Recoveries) provision for bad debts - net |
|
|
|
|
(37 |
) |
|
|
132 |
|
Provision for slow-moving, obsolete and lower of cost or net realizable value |
|
|
|
|
|
|
inventories - net |
|
|
|
|
771 |
|
|
|
1,835 |
|
Gain from disposal of property and equipment - net |
|
|
|
|
(41 |
) |
|
|
(314 |
) |
Changes in assets and liabilities, excluding effects of foreign currency translation
adjustments: |
|
|
|
|
|
|
Decrease in accounts receivable |
|
|
|
|
3,763 |
|
|
|
69 |
|
Increase in inventories |
|
|
|
|
(7,060 |
) |
|
|
(3,358 |
) |
Increase in prepaid expenses and other assets |
|
|
|
|
(658 |
) |
|
|
(770 |
) |
Increase in accounts payable |
|
|
|
|
445 |
|
|
|
2,111 |
|
Increase (decrease) in accrued expenses and other liabilities |
|
|
|
|
730 |
|
|
|
(252 |
) |
Increase in deferred revenue and customer prepayments |
|
|
|
|
5,406 |
|
|
|
2,390 |
|
Net cash used for operating activities |
|
|
|
|
(7,873 |
) |
|
|
(6,924 |
) |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Capital expenditures |
|
|
|
|
(819 |
) |
|
|
(392 |
) |
Proceeds from sale of property and equipment |
|
|
|
|
25 |
|
|
|
3,677 |
|
Net cash (used for) provided by investing activities |
|
|
|
|
(794 |
) |
|
|
3,285 |
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Payments on long-term debt |
|
|
|
|
(70 |
) |
|
|
(68 |
) |
Payments on capital leases |
|
|
|
|
(9 |
) |
|
|
(45 |
) |
Debt issuance costs |
|
|
|
|
(188 |
) |
|
|
- |
|
Net cash used for financing activities |
|
|
|
|
(267 |
) |
|
|
(113 |
) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents, and restricted
cash |
|
|
|
|
(197 |
) |
|
|
760 |
|
Net change in cash, cash equivalents, and restricted cash |
|
|
|
|
(9,131 |
) |
|
|
(2,992 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
|
|
22,178 |
|
|
|
28,155 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
|
|
$ |
13,047 |
|
|
$ |
25,163 |
|
|
|
|
|
|
|
|
Supplemental disclosure of noncash investing and financing activities |
|
|
|
|
|
|
Transfer of internally developed 3D printing machines from inventories to property
and |
|
|
|
|
|
|
equipment for internal use or leasing activities |
|
|
|
$ |
895 |
|
|
$ |
1,917 |
|
Transfer of internally developed 3D printing machines from property and equipment
to |
|
|
|
|
|
|
inventories for sale |
|
|
|
$ |
424 |
|
|
$ |
395 |
|
Property and equipment acquired through financing arrangements |
|
|
|
$ |
14 |
|
|
$ |
48 |
|
Unsettled proceeds from sale of property and equipment |
|
|
|
$ |
51 |
|
|
$ |
- |
|
Property and equipment included in accounts payable |
|
|
|
$ |
95 |
|
|
$ |
100 |
|
Property and equipment included in accrued expenses and other current
liabilities |
|
|
|
$ |
23 |
|
|
$ |
- |
|
Debt issuance costs included in accounts payable |
|
|
|
$ |
76 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The ExOne Company |
Additional Information |
(Unaudited)
|
|
Machine Sales by Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
S-Max® |
|
|
|
1 |
|
2 |
|
4 |
|
6 |
S-Print™ |
|
|
|
1 |
|
- |
|
1 |
|
- |
M-Flex® |
|
|
|
1 |
|
3 |
|
1 |
|
4 |
Innovent®+ |
|
|
|
1 |
|
- |
|
1 |
|
- |
Innovent® |
|
|
|
3 |
|
3 |
|
6 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
8 |
|
13 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The ExOne Company |
Adjusted EBITDA Reconciliation |
(in millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
|
$ |
(8.0 |
) |
|
$ |
(6.4 |
) |
|
$ |
(14.4 |
) |
|
$ |
(13.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
0.1 |
|
|
|
0.0 |
|
|
|
0.1 |
|
|
|
0.1 |
|
Provision for income taxes |
|
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.0 |
|
Depreciation and amortization |
|
|
|
|
1.3 |
|
|
|
1.3 |
|
|
|
2.8 |
|
|
|
3.6 |
|
Equity-based compensation |
|
|
|
|
(0.0 |
) |
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.8 |
|
Other (income) expense - net |
|
|
|
|
(0.1 |
) |
|
|
0.0 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
Adjusted EBITDA |
|
|
|
$ |
(6.7 |
) |
|
$ |
(4.8 |
) |
|
$ |
(11.2 |
) |
|
$ |
(8.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ExOne defines Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) as net loss (as calculated under
accounting principles generally accepted in the United States (“GAAP”)) plus interest expense, provision for income taxes,
depreciation and amortization, equity-based compensation, and other (income) expense - net. Use of Adjusted EBITDA, which is a
non-GAAP financial measure, as defined under the rules of the U.S. Securities and Exchange Commission, is intended as a
supplemental measure of ExOne’s performance that is not required by, or presented in accordance with, GAAP. Adjusted EBITDA should
not be considered as an alternative to net loss or any other performance measure derived in accordance with GAAP. The Company’s
presentation of Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or
non-recurring items.
The Company believes Adjusted EBITDA is meaningful to its investors to enhance their understanding of ExOne’s financial results.
Although Adjusted EBITDA is not necessarily a measure of the Company’s ability to fund its cash needs, the Company understands that
it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to
compare ExOne’s performance with the performance of other companies that report Adjusted EBITDA. ExOne’s calculation of Adjusted
EBITDA may not be comparable to similarly titled measures reported by other companies.
The ExOne Company
Brian Smith, (724) 765-1350
Senior Vice President
brian.smith@exone.com
or
Kei Advisors LLC
Deborah K. Pawlowski, (716) 843-3908
dpawlowski@keiadvisors.com
or
Karen L. Howard, (716) 843-3942
khoward@keiadvisors.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180809005726/en/