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 loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding non-cash stock-based compensation expenses and non-recurring IPO related expenses 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 press release 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 press release were made at a rate of EUR 1.00 to USD 1.120300, the 12:00 noon ET buying rate of the Federal Reserve Bank of New York for the euro on September 30, 2015.
Webcast and Conference Call
Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the third quarter of 2015 today, November 13, 2015, at 10:00 a.m. ET/16:00 CET. Company participants on the call will include Wilfried Vancraen, Founder and Chief Executive Officer, Peter Leys, Executive Chairman, and Johan Albrecht, Chief Financial Officer. A question-and-answer session will follow management's remarks.
To access the conference call, please dial 844-469-2530 (U.S.) or 765-507-2679 (international), passcode #45953049. 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 replay of the conference call will be available via telephone beginning approximately one hour after the call ends through Saturday, November 14, 2015. U.S. participants can access the replay by dialing 855-859-2056 and international participants can dial 404-537-3406. The access code for the replay is #45953049. A webcast of the conference call and slide presentation will be archived on the company's website for one year.
About Materialise
With its headquarters in Leuven, Belgium, and branches worldwide, Materialise is a provider of Additive Manufacturing (AM) software solutions and sophisticated 3D printing services in a wide variety of industries, including healthcare, automotive, aerospace, art and design and consumer products. Materialise has been playing an active role in the field of AM since 1990, through its involvement in AM for industrial and medical applications, by providing biomedical and clinical solutions such as medical image processing and surgical simulations and by developing unique solutions for its customers' prototyping, production, and medical needs.
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, current estimates of fiscal 2015 revenues and Adjusted EBITDA, investments in R&D and S&M initiatives, results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies, 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 annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2015. 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.
| Materialise NV | |||||
| Consolidated income statements (Unaudited) | |||||
|
For the three months ended September 30, |
For the nine months
ended September 30, |
||||
| 2015 | 2015 | 2014 | 2015 | 2014 | |
| (In thousands, except EPS) | U.S. $ | euros | euros | euros | euros |
| Revenue | 28,997 | 25,883 | 19,833 | 74,003 | 57,764 |
| Cost of Sales | (12,526) | (11,181) | (7,679) | (31,507) | (22,853) |
| Gross Profit | 16,471 | 14,702 | 12,154 | 42,496 | 34,911 |
| Research and development expenses | (5,115) | (4,566) | (3,672) | (13,444) | (10,414) |
| Sales and marketing expenses | (9,698) | (8,657) | (6,382) | (27,492) | (18,218) |
| General and administrative expenses | (4,432) | (3,956) | (2,758) | (11,278) | (8,470) |
| Net other operating income (expense) | 1,841 | 1,643 | 1,401 | 4,897 | 3,422 |
| Operating (Loss) Profit | (933) | (834) | 743 | (4,821) | 1,231 |
| Financial expenses | (418) | (373) | (412) | (2,108) | (821) |
| Financial income | 587 | 524 | 2,396 | 2,793 | 2,463 |
| Share in loss of a joint venture | (140) | (125) | (28) | (248) | (28) |
| Profit (Loss) before taxes | (904) | (808) | 2,699 | (4,384) | 2,845 |
| Income Taxes (benefit) | (332) | (296) | (140) | (621) | (427) |
| Net profit (loss) | (1,236) | (1,104) | 2559 | (5,005) | 2,418 |
| Net profit (loss) attributable to: | |||||
| The owners of the parent | (1,236) | (1,104) | 2,601 | (4,952) | 2,546 |
| Non-controlling interest | -- | -- | (42) | (53) | (128) |
| EPS attributable to the owners of the parent | |||||
| Basic | (0.03) | (0.02) | 0.06 | (0.10) | 0.06 |
| Diluted | (0.03) | (0.02) | 0.05 | (0.10) | 0.06 |
| Weighted average shares outstanding | |||||
| Basic | 47,227 | 47,227 | 47,072 | 47,208 | 41,088 |
| Diluted | 47,227 | 47,227 | 49,142 | 47,208 | 42,602 |
| Consolidated statements of comprehensive income (Unaudited) | |||||
|
For the three months ended September 30, |
For the nine months
ended September 30, |
||||
| (In thousands) | 2015 | 2015 | 2014 | 2015 | 2014 |
| U.S. $ | euros | euros | euros | euros | |
| Net profit (loss) for the year | (1,236) | (1,104) | 2,559 | (5,005) | 2,418 |
| Other comprehensive income | |||||
| Exchange differences on translation of foreign operations | (803) | (717) | 229 | 759 | 237 |
| Other comprehensive income (loss), net of taxes | (803) | (717) | 229 | 759 | 237 |
| Total comprehensive income (loss) for the year, net of taxes | (2,039) | (1,821) | 2,788 | (4,246) | 2,655 |
| Total comprehensive income (loss) attributable to: | |||||
| The owners of the parent | (2,039) | (1,821) | 2,830 | (4,193) | 2,783 |
| Non-controlling interest | -- | -- | (42) | (53) | (128) |
| Materialise NV | ||
| Consolidated statements of financial position (Unaudited) | ||
| (in thousands of euros) | ||
|
As of
September 30, |
As of
December 31, |
|
| 2015 | 2014 | |
| Assets | ||
| Current assets | ||
| Inventory | 4,689 | 3,660 |
| Trade receivables | 19,026 | 18,370 |
| Other current assets | 4,221 | 3,540 |
| Held to maturity investments | -- | 10,000 |
| Cash and cash equivalent | 48,734 | 51,019 |
| Total current assets | 76,670 | 86,589 |
| Non-current assets | ||
| Goodwill | 9,553 | 7,714 |
| Intangible assets | 7,890 | 7,727 |
| Property, plant & equipment | 35,911 | 30,212 |
| Investments in joint ventures | 670 | 419 |
| Deferred tax assets | 193 | 232 |
| Other financial assets | 318 | 328 |
| Total non-current assets | 54,535 | 46,632 |
| Total assets | 131,205 | 133,221 |
| Equity and liabilities | ||
| Current liabilities | ||
| Loans & borrowings | 3,351 | 5,499 |
| Trade Payables | 7,722 | 7,205 |
| Tax Payables | 155 | 128 |
| Deferred income | 15,004 | 11,652 |
| Other current liabilities | 9,319 | 8,657 |
| Total current liabilities | 35,551 | 33,141 |
| Non-current liabilities | ||
| Loans & borrowings | 12,513 | 11,848 |
| Deferred tax liabilities | 1,397 | 1,329 |
| Deferred income | 17 | 767 |
| Other non-current liabilities | 989 | 969 |
| Total non-current liabilities | 14,916 | 14,913 |
| Net equity | ||
| Share capital | 2,724 | 2,788 |
| Share premium | 77,901 | 76,650 |
| Consolidated reserves | (743) | 5,764 |
| Other comprehensive income (loss) | 856 | 97 |
| Equity attributable to the owners of the parent | 80,738 | 85,299 |
| Non-controlling interest | -- | (132) |
| Total equity | 80,738 | 85,167 |
| Total equity and liabilities | 131,205 | 133,221 |
| Materialise NV | ||
| Consolidated cash flow statements (Unaudited) | ||
| (in thousands of euros) | For the nine months ended | |
| 2015 | 2014 | |
| Operating activities | ||
| Net profit (loss) for the year | (5,005) | 2,418 |
| Non-cash and operating adjustments | ||
| Depreciation of property, plant & equipment | 3,816 | 2,534 |
| Amortization of intangible assets | 1,061 | 497 |
| Share-based payment expense | 652 | 464 |
| Loss (gain) on disposal of property, plant & equipment | 1 | 15 |
| Movement in provisions and allowance for bad debt | 162 | 89 |
| Financial income | (2,523) | (98) |
| Financial expense | 1,733 | 342 |
| Impact of foreign currencies | 55 | (1,886) |
| Share of loss in a joint venture | 248 | 28 |
| Deferred tax expense (income) | 46 | 161 |
| Income taxes | 575 | 266 |
| Other | -- | 33 |
| Working capital adjustments | ||
| Increase in trade receivables and other receivables | (1,644) | (2,523) |
| Decrease (increase) in inventories | (973) | (122) |
| Increase in trade payables and other payables | 3,955 | 3,127 |
| Income taxes paid | (530) | (91) |
| Net cash flow from operating activities | 1,629 | 5,254 |
| Investing activities | ||
| Purchase of property, plant & equipment | (5,918) | (5,828) |
| Proceeds from the sale of property, plant & equipment, net | (1,019) | (582) |
| Proceeds from the sale of intangibles | 13 | 137 |
| Acquisition of subsidiaries | (1,602) | (1,161) |
| Investments in joint-ventures | (500) | (500) |
| Proceeds from held to maturity investments | 10,000 | |
| Interest received | 8 | 4 |
| Net cash flow used in investing activities | 982 | (7,930) |
| Financing activities | ||
| Proceeds from loans & borrowings and convertible debt | 324 | 1,911 |
| Repayment of loans & borrowings | (3,889) | (2,273) |
| Repayment of finance leases | (1,108) | (608) |
| Purchase of non-controlling interest | (1,377) | -- |
| Contribution unpaid capital non-controlling interest | -- | 34 |
| Capital increase in parent company | 580 | 70,484 |
| Direct attributable expense capital increase | -- | (6,046) |
| Interest paid | (399) | (373) |
| Other financial income / (expense) | (34) | (221) |
| Net cash flow from financing activities | (5,903) | 62,908 |
| Net increase of cash and cash equivalents | (3,292) | 60,232 |
| Cash and cash equivalents at beginning of year | 51,019 | 12,598 |
| Exchange rate differences on cash & cash equivalents | 1,007 | 2,214 |
| Cash & cash equivalents at end of year | 48,734 | 75,044 |
| Materialise NV | ||||||
| Segment P&L (Unaudited) | ||||||
| 3D Printing | Industrial | Total | Adjustments & | |||
| (In thousands of euros, except percentages) | Software | Medical | Production | Segments | Eliminations | Consolidated |
| For the three month period ended September 30, 2015 | ||||||
| Revenues | 6,303 | 9,123 | 10,457 | 25,883 | -- | 25,883 |
| Segment EBITDA | 2,157 | 763 | 799 | 3,719 | (2,724) | 995 |
| Segment EBITDA % | 34.2% | 8.4% | 7.6% | 14.4% | 3.8% | |
| For the three month period ended September 30, 2014 | ||||||
| Revenues | 4,438 | 7,090 | 8,190 | 19,718 | 115 | 19,833 |
| Segment EBITDA | 1,518 | 677 | 753 | 2,948 | (1,175) | 1,773 |
| Segment EBITDA % | 34.2% | 9.5% | 9.2% | 15.0% | 8.9% | |
| (In thousands of euros, except percentages) | 3D Printing | Industrial | Total | Adjustments & | ||
| Software | Medical | Production | Segments | Eliminations | Consolidated | |
| For the nine months ended September 30, 2015 | ||||||
| Revenues | 18,497 | 25,286 | 30,220 | 74,003 | -- | 74,003 |
| Segment EBITDA | 6,387 | (325) | 612 | 6,674 | (6,618) | 56 |
| Segment EBITDA % | 34.5% | (1.3%) | 2.0% | 9.0% | 0.1% | |
| For the nine months ended September 30, 2014 | ||||||
| Revenues | 12,671 | 21,221 | 23,659 | 57,552 | 213 | 57,764 |
| Segment EBITDA | 4,921 | 2,416 | 1,182 | 8,520 | (4,284) | 4,236 |
| Segment EBITDA % | 38.8% | 11.4% | 5.0% | 14.8% | 7.3% | |
| 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 thousands of euros) | 2015 | 2014 | 2015 | 2014 |
| Net (loss)/profit | (1,104) | 2,559 | (5,005) | 2,418 |
| Income taxes | 296 | 140 | 621 | 427 |
| Financial expenses | 373 | 412 | 2,108 | 821 |
| Financial income | (524) | (2,395) | (2,793) | (2,462) |
| Share in loss of a joint venture | 125 | 0 | 248 | 0 |
| Depreciation & amortization | 1,829 | 1,057 | 4,877 | 3,032 |
| EBITDA | 995 | 1,773 | 56 | 4,236 |
| Non-recurring IPO Expenses (1) | 0 | 0 | 0 | 182 |
| Non-cash stock-based compensation expenses (2) | 180 | 282 | 652 | 407 |
| Adjusted EBITDA | 1,175 | 2,055 | 708 | 4,825 |
| (1) Non-recurring IPO expenses represent fees and costs incurred in connection with the company's initial public offering. | ||||
| (2) Non-cash stock-based compensation expenses represent the cost of equity-settled and cash-settled share-based payments to employees. | ||||
CONTACT: Investor Contacts:
Harriet Fried/Jody Burfening
LHA
212-838-3777
hfried@lhai.com
