This release is available on the Stratasys web site at www.stratasys.com
Stratasys Ltd. (Nasdaq: SSYS), headquartered in Minneapolis, Minnesota and Rehovot, Israel, is a leading global provider of 3D printing and additive manufacturing solutions. The company's patented FDM® and PolyJet™ 3D Printing technologies produce prototypes and manufactured goods directly from 3D CAD files or other 3D content. Systems include 3D printers for idea development, prototyping and direct digital manufacturing. Stratasys subsidiaries include MakerBot and Solidscape, and the company operates the digital parts manufacturing service Stratasys Direct Manufacturing. Stratasys has more than 2,900 employees, holds over 800 granted or pending additive manufacturing patents globally, and has received more than 30 awards for its technology and leadership. Online at: http://www.stratasys.com or http://blog.stratasys.com.
| Stratasys Ltd. | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in thousands) | ||||||||||
| June 30, | December 31, | |||||||||
| 2015 | 2014 | |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 352,268 | $ | 442,141 | ||||||
| Short-term bank deposits | 150,370 | 595 | ||||||||
| Accounts receivable, net | 136,970 | 150,806 | ||||||||
| Inventories | 137,394 | 123,385 | ||||||||
| Net investment in sales-type leases | 10,091 | 8,170 | ||||||||
| Prepaid expenses | 9,898 | 7,931 | ||||||||
| Deferred income taxes | 30,567 | 25,697 | ||||||||
| Other current assets | 31,420 | 37,903 | ||||||||
| Total current assets | 858,978 | 796,628 | ||||||||
| Non-current assets | ||||||||||
| Goodwill | 1,172,125 | 1,323,502 | ||||||||
| Other intangible assets, net | 517,085 | 597,903 | ||||||||
| Property, plant and equipment, net | 185,992 | 157,036 | ||||||||
| Net investment in sales-type leases - long term | 19,093 | 14,822 | ||||||||
| Other non-current assets | 10,960 | 9,216 | ||||||||
| Total non-current assets | 1,905,255 | 2,102,479 | ||||||||
| Total assets | $ | 2,764,233 | $ | 2,899,107 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 40,687 | $ | 37,359 | ||||||
| Short term debt | 175,000 | 50,000 | ||||||||
| Accrued expenses and other current liabilities | 50,990 | 47,760 | ||||||||
| Accrued compensation and related benefits | 45,230 | 42,332 | ||||||||
| Obligations in connection with acquisitions | 12,003 | 28,092 | ||||||||
| Deferred revenues | 48,821 | 45,023 | ||||||||
| Total current liabilities | 372,731 | 250,566 | ||||||||
| Non-current liabilities | ||||||||||
| Obligations in connection with acquisitions - long term | 12,761 | 26,461 | ||||||||
| Deferred tax liabilities | 36,293 | 55,835 | ||||||||
| Deferred revenues - long-term | 6,069 | 5,946 | ||||||||
| Other non-current liabilities | 26,677 | 25,091 | ||||||||
| Total non-current liabilities | 81,800 | 113,333 | ||||||||
| Total liabilities | 454,531 | 363,899 | ||||||||
| Redeemable non-controlling interests | 2,564 | 3,969 | ||||||||
| Equity | ||||||||||
| Ordinary shares, NIS 0.01 nominal value, authorized 180,000 | ||||||||||
| shares; 51,669 and 50,923 shares issued and outstanding | ||||||||||
| at June 30, 2015 and December 31, 2014, respectively | 140 | 139 | ||||||||
| Additional paid-in capital | 2,587,168 | 2,568,149 | ||||||||
| Accumulated deficit | (273,090 | ) | (33,871 | ) | ||||||
| Accumulated other comprehensive loss | (7,429 | ) | (3,647 | ) | ||||||
| Equity attributable to Stratasys Ltd. | 2,306,789 | 2,530,770 | ||||||||
| Non-controlling interest | 349 | 469 | ||||||||
| Total equity | 2,307,138 | 2,531,239 | ||||||||
| Total liabilities and equity | $ | 2,764,233 | $ | 2,899,107 | ||||||
| Stratasys Ltd. | ||||||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
| Net sales | ||||||||||||||||||||
| Products | $ | 134,490 | $ | 154,090 | $ | 261,157 | $ | 283,342 | ||||||||||||
| Services | 47,832 | 24,375 | 93,896 | 46,064 | ||||||||||||||||
| 182,322 | 178,465 | 355,053 | 329,406 | |||||||||||||||||
| Cost of sales | ||||||||||||||||||||
| Products | 67,666 | 73,394 | 166,037 | 134,416 | ||||||||||||||||
| Services | 31,748 | 13,437 | 60,020 | 25,628 | ||||||||||||||||
| 99,414 | 86,831 | 226,057 | 160,044 | |||||||||||||||||
| Gross profit | 82,908 | 91,634 | 128,996 | 169,362 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Research and development, net | 25,506 | 18,957 | 52,744 | 35,728 | ||||||||||||||||
| Selling, general and administrative | 97,581 | 77,929 | 200,189 | 145,546 | ||||||||||||||||
| Goodwill impairment | - | - | 150,400 | - | ||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | (6,680 | ) | 628 | (19,936 | ) | (6,867 | ) | |||||||||||||
| 116,407 | 97,514 | 383,397 | 174,407 | |||||||||||||||||
| Operating loss | (33,499 | ) | (5,880 | ) | (254,401 | ) | (5,045 | ) | ||||||||||||
| Financial income (expense) | (711 | ) | 337 | (5,835 | ) | (999 | ) | |||||||||||||
| Loss before income taxes | (34,210 | ) | (5,543 | ) | (260,236 | ) | (6,044 | ) | ||||||||||||
| Income tax benefit | (11,066 | ) | (5,370 | ) | (20,688 | ) | (9,958 | ) | ||||||||||||
| Net income (loss) | (23,144 | ) | (173 | ) | (239,548 | ) | 3,914 | |||||||||||||
| Net loss attributable to non-controlling interest | (213 | ) | - | (329 | ) | - | ||||||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | (22,931 | ) | $ | (173 | ) | $ | (239,219 | ) | $ | 3,914 | |||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | ||||||||||||||||||||
| Basic | $ | (0.48 | ) | $ | (0.00 | ) | $ | (4.71 | ) | $ | 0.08 | |||||||||
| Diluted | (0.55 | ) | (0.00 | ) | (4.77 | ) | 0.08 | |||||||||||||
| Weighted average ordinary shares outstanding | ||||||||||||||||||||
| Basic | 51,405 | 49,373 | 51,181 | 49,323 | ||||||||||||||||
| Diluted | 51,870 | 49,373 | 51,413 | 51,238 | ||||||||||||||||
| Stratasys Ltd. | |||||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results of Operations | |||||||||||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||||||||
| Three Months Ended June 30, 2015 | Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||||||||||||||
| (unaudited) | Adjustments* | (unaudited) | (unaudited) | Adjustments* | (unaudited) | ||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Products | $ | 134,490 | $ | - | $ | 134,490 | $ | 154,090 | $ | - | $ | 154,090 | |||||||||||||||||
| Services | 47,832 | - | 47,832 | 24,375 | - | 24,375 | |||||||||||||||||||||||
| 182,322 | - | 182,322 | 178,465 | - | 178,465 | ||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||
| Products | 67,666 | (15,975 | ) | 51,691 | 73,394 | (14,739 | ) | 58,655 | |||||||||||||||||||||
| Services | 31,748 | (841 | ) | 30,907 | 13,437 | (340 | ) | 13,097 | |||||||||||||||||||||
| 99,414 | (16,816 | ) | 82,598 | 86,831 | (15,079 | ) | 71,752 | ||||||||||||||||||||||
| Gross profit | 82,908 | 16,816 | 99,724 | 91,634 | 15,079 | 106,713 | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Research and development, net | 25,506 | (3,016 | ) | 22,490 | 18,957 | (1,318 | ) | 17,639 | |||||||||||||||||||||
| Selling, general and administrative | 97,581 | (24,020 | ) | 73,561 | 77,929 | (17,617 | ) | 60,312 | |||||||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | (6,680 | ) | 6,680 | - | 628 | (628 | ) | - | |||||||||||||||||||||
| 116,407 | (20,356 | ) | 96,051 | 97,514 | (19,563 | ) | 77,951 | ||||||||||||||||||||||
| Operating income (loss) | (33,499 | ) | 37,172 | 3,673 | (5,880 | ) | 34,642 | 28,762 | |||||||||||||||||||||
| Financial income (expense) | (711 | ) | - | (711 | ) | 337 | - | 337 | |||||||||||||||||||||
| Income (loss) before income taxes | (34,210 | ) | 37,172 | 2,962 | (5,543 | ) | 34,642 | 29,099 | |||||||||||||||||||||
| Income taxes (benefit) | (11,066 | ) | 6,279 | (4,787 | ) | (5,370 | ) | 6,475 | 1,105 | ||||||||||||||||||||
| Net income (loss) | (23,144 | ) | 30,893 | 7,749 | (173 | ) | 28,167 | 27,994 | |||||||||||||||||||||
| Net loss attributable to non-controlling interest | (213 | ) | - | (213 | ) | - | - | - | |||||||||||||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | (22,931 | ) | $ | 30,893 | $ | 7,962 | $ | (173 | ) | $ | 28,167 | $ | 27,994 | |||||||||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | |||||||||||||||||||||||||||||
| Basic | $ | (0.48 | ) | $ | 0.15 | $ | (0.00 | ) | $ | 0.57 | |||||||||||||||||||
| Diluted | (0.55 | ) | 0.15 | (0.00 | ) | 0.55 | |||||||||||||||||||||||
| Weighted average ordinary shares outstanding | |||||||||||||||||||||||||||||
| Basic | 51,405 | 51,405 | 49,373 | 49,373 | |||||||||||||||||||||||||
| Diluted | 51,870 | 52,705 | 49,373 | 51,196 | |||||||||||||||||||||||||
|
The Company considers these non-GAAP measures to be indicative of its core operating results and facilitates a comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes, however these measures should not be viewed as a substitute for the Company’s GAAP results. |
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|
* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for further information regarding adjustments. |
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| Stratasys Ltd. | ||||||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results of Operations | ||||||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2015 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||
| GAAP | Adjustments* | Non-GAAP | GAAP | Adjustments* | Non-GAAP | |||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||
| Products | $ | 261,157 | $ | - | $ | 261,157 | $ | 283,342 | $ | 235 | $ | 283,577 | ||||||||||||||||||
| Services | 93,896 | - | 93,896 | 46,064 | - | 46,064 | ||||||||||||||||||||||||
| 355,053 | - | 355,053 | 329,406 | 235 | 329,641 | |||||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||||
| Products | 166,037 | (61,887 | ) | 104,150 | 134,416 | (28,468 | ) | 105,948 | ||||||||||||||||||||||
| Services | 60,020 | (2,250 | ) | 57,770 | 25,628 | (774 | ) | 24,854 | ||||||||||||||||||||||
| 226,057 | (64,137 | ) | 161,920 | 160,044 | (29,242 | ) | 130,802 | |||||||||||||||||||||||
| Gross profit | 128,996 | 64,137 | 193,133 | 169,362 | 29,477 | 198,839 | ||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||
| Research and development, net | 52,744 | (5,833 | ) | 46,911 | 35,728 | (2,813 | ) | 32,915 | ||||||||||||||||||||||
| Selling, general and administrative | 200,189 | (56,864 | ) | 143,325 | 145,546 | (31,140 | ) | 114,406 | ||||||||||||||||||||||
| Goodwill impairment | 150,400 | (150,400 | ) | - | - | - | - | |||||||||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | (19,936 | ) | 19,936 | - | (6,867 | ) | 6,867 | - | ||||||||||||||||||||||
| 383,397 | (193,161 | ) | 190,236 | 174,407 | (27,086 | ) | 147,321 | |||||||||||||||||||||||
| Operating income (loss) | (254,401 | ) | 257,298 | 2,897 | (5,045 | ) | 56,563 | 51,518 | ||||||||||||||||||||||
| Financial expense | (5,835 | ) | - | (5,835 | ) | (999 | ) | - | (999 | ) | ||||||||||||||||||||
| Income (loss) before income taxes | (260,236 | ) | 257,298 | (2,938 | ) | (6,044 | ) | 56,563 | 50,519 | |||||||||||||||||||||
| Income taxes (benefit) | (20,688 | ) | 8,093 | (12,595 | ) | (9,958 | ) | 11,884 | 1,926 | |||||||||||||||||||||
| Net income (loss) | (239,548 | ) | 249,205 | 9,657 | 3,914 | 44,679 | 48,593 | |||||||||||||||||||||||
| Net loss attributable to non-controlling interest | (329 | ) | - | (329 | ) | - | - | - | ||||||||||||||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | (239,219 | ) | $ | 249,205 | $ | 9,986 | $ | 3,914 | $ | 44,679 | $ | 48,593 | |||||||||||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | ||||||||||||||||||||||||||||||
| Basic | $ | (4.71 | ) | $ | 0.20 | $ | 0.08 | $ | 0.99 | |||||||||||||||||||||
| Diluted | (4.77 | ) | 0.19 | 0.08 | 0.95 | |||||||||||||||||||||||||
| Weighted average ordinary shares outstanding | ||||||||||||||||||||||||||||||
| Basic | 51,181 | 51,181 | 49,323 | 49,323 | ||||||||||||||||||||||||||
| Diluted | 51,413 | 52,524 | 51,238 | 51,221 | ||||||||||||||||||||||||||
|
The Company considers these non-GAAP measures to be indicative of its core operating results and facilitates a comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes, however these measures should not be viewed as a substitute for the Company’s GAAP results. |
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|
* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for further information regarding adjustments. |
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| Stratasys Ltd. | ||||||||||||||||||||
| Reconciliation of Non-GAAP Adjustments | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| Net sales, products | ||||||||||||||||||||
| Deferred revenue step-up | $ | - | $ | - | $ | - | $ | 235 | ||||||||||||
| Cost of sales, products | ||||||||||||||||||||
| Acquired intangible assets amortization | (12,301 | ) | (14,029 | ) | (27,206 | ) | (27,254 | ) | ||||||||||||
| Other intangible assets impairment | - | - | (29,782 | ) | - | |||||||||||||||
| Non-cash stock-based compensation expense | (1,237 | ) | (710 | ) | (2,462 | ) | (1,214 | ) | ||||||||||||
| Reorganization and other related costs | (2,437 | ) | - | (2,437 | ) | - | ||||||||||||||
| (15,975 | ) | (14,739 | ) | (61,887 | ) | (28,468 | ) | |||||||||||||
| Cost of sales, services | ||||||||||||||||||||
| Non-cash stock-based compensation expense | (560 | ) | (324 | ) | (1,168 | ) | (732 | ) | ||||||||||||
| Reorganization and other related costs | (75 | ) | - | (75 | ) | - | ||||||||||||||
| Merger and acquisition related expense | (206 | ) | (16 | ) | (1,007 | ) | (42 | ) | ||||||||||||
| (841 | ) | (340 | ) | (2,250 | ) | (774 | ) | |||||||||||||
| Research and development, net | ||||||||||||||||||||
| Non-cash stock-based compensation expense | (1,506 | ) | (885 | ) | (3,374 | ) | (1,823 | ) | ||||||||||||
| Reorganization and other related costs | (617 | ) | - | (617 | ) | - | ||||||||||||||
| Merger and acquisition related expense | (893 | ) | (433 | ) | (1,842 | ) | (990 | ) | ||||||||||||
| (3,016 | ) | (1,318 | ) | (5,833 | ) | (2,813 | ) | |||||||||||||
| Selling, general and administrative | ||||||||||||||||||||
| Acquired intangible assets amortization | (5,684 | ) | (5,507 | ) | (12,140 | ) | (10,871 | ) | ||||||||||||
| Non-cash stock-based compensation expense | (6,261 | ) | (5,159 | ) | (12,320 | ) | (10,045 | ) | ||||||||||||
| Merger and acquisition related expense | (5,937 | ) | (6,951 | ) | (12,842 | ) | (10,224 | ) | ||||||||||||
| Reorganization and other related costs | (6,138 | ) | - | (6,139 | ) | - | ||||||||||||||
| Impairment charges | - | - | (13,423 | ) | - | |||||||||||||||
| (24,020 | ) | (17,617 | ) | (56,864 | ) | (31,140 | ) | |||||||||||||
| Goodwill impairment | - | - | (150,400 | ) | - | |||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | ||||||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | 6,680 | (628 | ) | 19,936 | 6,867 | |||||||||||||||
| Income taxes | ||||||||||||||||||||
| Tax expense related to non-GAAP adjustments | 6,279 | 6,475 | 8,093 | 11,884 | ||||||||||||||||
| Net income | $ | 30,893 | $ | 28,167 | $ | 249,205 | $ | 44,679 | ||||||||||||
| Stratasys Ltd. | |||
| Reconciliation of GAAP to Non-GAAP Forward Looking Guidance | |||
| Three Months Ended September 30, 2015 | |||
| (in millions, except per share data) | |||
| GAAP net loss | ($27) to ($22.5) | ||
|
Adjustments |
|||
| Stock-based compensation expense | $9.5 to $10 | ||
| Intangible assets amortization expense | $18 | ||
| Merger related expense | $7 to $8 | ||
| Tax expense related to Non-GAAP adjustments | ($6) to ($6.5) | ||
| Non-GAAP net income | $1.5 to $7 | ||
| GAAP loss per share | ($0.52) to ($0.43) | ||
| Non-GAAP diluted earnings per share | $0.03 to $0.13 | ||
