Stratasys is a registered trademark of Stratasys Ltd. and/or its subsidiaries or affiliates.
Cautionary Statement Regarding Forward-Looking Statements
The statements in this press release regarding Stratasys' belief that its comprehensive new strategy will help grow its markets, and the statements regarding its projected future financial performance, including under the heading “Financial Guidance,” 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 overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which Stratasys operates; changes in projected capital expenditures and liquidity; changes in Stratasys' strategy; changes in government regulations and approvals; changes in customers’ budgeting priorities; and other factors referred to under “Risk Factors,” “Information on the Company,” “Operating and Financial Review and Prospects,” and generally in Stratasys' annual report on Form 20-F for the year ended December 31, 2014, filed with the U.S. Securities and Exchange Commission (the “SEC”), and in other reports that Stratasys has filed with or furnished to the SEC from time to time. Readers are urged to carefully review and consider the various disclosures made in Stratasys' SEC reports, which are designed to advise investors as to the risks and other factors that may affect Stratasys' business, financial condition, results of operations and prospects. Any guidance and other forward-looking statements 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.
| Stratasys Ltd. | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| (in thousands, except share data) | |||||||||||
| December 31, | December 31, | ||||||||||
| 2015 | 2014 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 257,592 | $ | 442,141 | |||||||
| Short-term bank deposits | 571 | 595 | |||||||||
| Accounts receivable, net | 123,215 | 150,806 | |||||||||
| Inventories | 123,658 | 123,385 | |||||||||
| Net investment in sales-type leases | 11,704 | 8,170 | |||||||||
| Prepaid expenses | 8,469 | 7,931 | |||||||||
| Deferred income taxes | - | 25,697 | |||||||||
| Other current assets | 21,864 | 37,903 | |||||||||
| Total current assets | 547,073 | 796,628 | |||||||||
| Non-current assets | |||||||||||
| Goodwill | 383,853 | 1,323,502 | |||||||||
| Other intangible assets, net | 252,468 | 597,903 | |||||||||
| Property, plant and equipment, net | 201,934 | 157,036 | |||||||||
| Net investment in sales-type leases - long term | 17,785 | 14,822 | |||||||||
| Deferred income taxes and other non-current assets | 11,243 | 9,216 | |||||||||
| Total non-current assets | 867,283 | 2,102,479 | |||||||||
| Total assets | $ | 1,414,356 | $ | 2,899,107 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 39,021 | $ | 37,359 | |||||||
| Short term debt | - | 50,000 | |||||||||
| Accrued expenses and other current liabilities | 31,314 | 34,514 | |||||||||
| Accrued compensation and related benefits | 34,052 | 42,332 | |||||||||
| Income taxes payable | 11,395 | 13,246 | |||||||||
| Obligations in connection with acquisitions | 4,636 | 28,092 | |||||||||
| Deferred revenues | 52,309 | 45,023 | |||||||||
| Total current liabilities | 172,727 | 250,566 | |||||||||
| Non-current liabilities | |||||||||||
| Obligations in connection with acquisitions - long term | 4,354 | 26,461 | |||||||||
| Deferred tax liabilities | 16,040 | 55,835 | |||||||||
| Deferred revenues - long-term | 7,627 | 5,946 | |||||||||
| Other non-current liabilities | 22,428 | 25,091 | |||||||||
| Total non-current liabilities | 50,449 | 113,333 | |||||||||
| Total liabilities | 223,176 | 363,899 | |||||||||
| Redeemable non-controlling interests | 2,379 | 3,969 | |||||||||
| Equity | |||||||||||
|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 52,082 thousands shares and 50,923 thousands shares issued and outstanding at December 31, 2015 and 2014, respectively |
141 | 139 | |||||||||
| Additional paid-in capital | 2,605,957 | 2,568,149 | |||||||||
| Accumulated deficit | (1,406,706 | ) | (33,871 | ) | |||||||
| Accumulated other comprehensive loss | (10,774 | ) | (3,647 | ) | |||||||
| Equity attributable to Stratasys Ltd. | 1,188,618 | 2,530,770 | |||||||||
| Non-controlling interest | 183 | 469 | |||||||||
|
Total equity |
1,188,801 | 2,531,239 | |||||||||
| Total liabilities and equity | $ | 1,414,356 | $ | 2,899,107 | |||||||
| Stratasys Ltd. | |||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Products | $ | 124,316 | $ | 168,595 | $ | 503,946 | $ | 612,138 | |||||||||||||
| Services | 49,046 | 48,517 | 192,049 | 137,991 | |||||||||||||||||
| 173,362 | 217,112 | 695,995 | 750,129 | ||||||||||||||||||
| Cost of sales | |||||||||||||||||||||
| Products | 86,753 | 82,985 | 466,221 | 302,838 | |||||||||||||||||
| Services | 33,537 | 28,943 | 127,602 | 84,897 | |||||||||||||||||
| 120,290 | 111,928 | 593,823 | 387,735 | ||||||||||||||||||
| Gross profit | 53,072 | 105,184 | 102,172 | 362,394 | |||||||||||||||||
| Operating expenses | |||||||||||||||||||||
| Research and development, net | 31,919 | 23,189 | 122,360 | 82,270 | |||||||||||||||||
| Selling, general and administrative | 113,126 | 95,646 | 434,619 | 351,993 | |||||||||||||||||
| Goodwill impairment | 96,550 | 102,470 | 942,408 | 102,470 | |||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | (714 | ) | (24,862 | ) | (23,671 | ) | (26,150 | ) | |||||||||||||
| 240,881 | 196,443 | 1,475,716 | 510,583 | ||||||||||||||||||
| Operating loss | (187,809 | ) | (91,259 | ) | (1,373,544 | ) | (148,189 | ) | |||||||||||||
| Financial expense | (947 | ) | (4,145 | ) | (10,287 | ) | (6,529 | ) | |||||||||||||
| Loss before income taxes | (188,756 | ) | (95,404 | ) | (1,383,831 | ) | (154,718 | ) | |||||||||||||
| Income taxes | 43,770 | (3,370 | ) | (10,320 | ) | (35,248 | ) | ||||||||||||||
| Net loss | (232,526 | ) | (92,034 | ) | (1,373,511 | ) | (119,470 | ) | |||||||||||||
| Net loss attributable to non-controlling interest | (183 | ) | (25 | ) | (676 | ) | (50 | ) | |||||||||||||
| Net loss attributable to Stratasys Ltd. | $ | (232,343 | ) | $ | (92,009 | ) | $ | (1,372,835 | ) | $ | (119,420 | ) | |||||||||
| Net loss per ordinary share attributable to Stratasys Ltd. | |||||||||||||||||||||
| Basic | $ | (4.46 | ) | $ | (1.81 | ) | $ | (26.64 | ) | $ | (2.39 | ) | |||||||||
| Diluted | (4.46 | ) | (1.81 | ) | (26.64 | ) | (2.39 | ) | |||||||||||||
| Weighted average ordinary shares outstanding | |||||||||||||||||||||
| Basic | 52,046 | 50,912 | 51,592 | 50,019 | |||||||||||||||||
| Diluted | 52,046 | 50,912 | 51,592 | 50,019 | |||||||||||||||||
| Stratasys Ltd. | |||||||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results of Operations | |||||||||||||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||||||||||
| Three Months Ended December 31, 2015 | Three Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||||||||||||||||
| (unaudited) | Adjustments* | (unaudited) | (unaudited) | Adjustments* | (unaudited) | ||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||||
| Products | $ | 124,316 | $ | - | $ | 124,316 | $ | 168,595 | $ | - | $ | 168,595 | |||||||||||||||||||
| Services | 49,046 | - | 49,046 | 48,517 | - | 48,517 | |||||||||||||||||||||||||
| 173,362 | - | 173,362 | 217,112 | - | 217,112 | ||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||||
| Products | 86,753 | (28,080 | ) | 58,673 | 82,985 | (14,490 | ) | 68,495 | |||||||||||||||||||||||
| Services | 33,537 | (2,229 | ) | 31,308 | 28,943 | (1,915 | ) | 27,028 | |||||||||||||||||||||||
| 120,290 | (30,309 | ) | 89,981 | 111,928 | (16,405 | ) | 95,523 | ||||||||||||||||||||||||
| Gross profit | 53,072 | 30,309 | 83,381 | 105,184 | 16,405 | 121,589 | |||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||||
| Research and development, net | 31,919 | (9,741 | ) | 22,178 | 23,189 | (1,822 | ) | 21,367 | |||||||||||||||||||||||
| Selling, general and administrative | 113,126 | (43,041 | ) | 70,085 | 95,646 | (20,368 | ) | 75,278 | |||||||||||||||||||||||
| Goodwill impairment | 96,550 | (96,550 | ) | - | 102,470 | (102,470 | ) | - | |||||||||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | (714 | ) | 714 | - | (24,862 | ) | 24,862 | - | |||||||||||||||||||||||
| 240,881 | (148,618 | ) | 92,263 | 196,443 | (99,798 | ) | 96,645 | ||||||||||||||||||||||||
| Operating income (loss) | (187,809 | ) | 178,927 | (8,882 | ) | (91,259 | ) | 116,203 | 24,944 | ||||||||||||||||||||||
| Financial expense | (947 | ) | - | (947 | ) | (4,145 | ) | - | (4,145 | ) | |||||||||||||||||||||
| Income (loss) before income taxes | (188,756 | ) | 178,927 | (9,829 | ) | (95,404 | ) | 116,203 | 20,799 | ||||||||||||||||||||||
| Income taxes | 43,770 | (52,720 | ) | (8,950 | ) | (3,370 | ) | (750 | ) | (4,120 | ) | ||||||||||||||||||||
| Net income (loss) | (232,526 | ) | 231,647 | (879 | ) | (92,034 | ) | 116,953 | 24,919 | ||||||||||||||||||||||
| Net loss attributable to non-controlling interest | (183 | ) | - | (183 | ) | (25 | ) | - | (25 | ) | |||||||||||||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | (232,343 | ) | $ | 231,647 | $ | (696 | ) | $ | (92,009 | ) | $ | 116,953 | $ | 24,944 | ||||||||||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | |||||||||||||||||||||||||||||||
| Basic | $ | (4.46 | ) | $ | (0.01 | ) | $ | (1.81 | ) | $ | 0.49 | ||||||||||||||||||||
| Diluted | (4.46 | ) | (0.01 | ) | (1.81 | ) | 0.48 | ||||||||||||||||||||||||
| Weighted average ordinary shares outstanding | |||||||||||||||||||||||||||||||
| Basic | 52,046 | 52,046 | 50,912 | 50,912 | |||||||||||||||||||||||||||
| Diluted | 52,046 | 52,046 | 50,912 | 52,491 | |||||||||||||||||||||||||||
|
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. |
|
* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for further information regarding adjustments. |
| Stratasys Ltd. | |||||||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results of Operations | |||||||||||||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||||||||||
| Twelve Months Ended December 31, 2015 | Twelve Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||
| GAAP | Adjustments* | Non-GAAP | GAAP | Adjustments* | Non-GAAP | ||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||||
| Products | $ | 503,946 | $ | - | $ | 503,946 | $ | 612,138 | $ | 235 | $ | 612,373 | |||||||||||||||||||
| Services | 192,049 | - | 192,049 | 137,991 | - | 137,991 | |||||||||||||||||||||||||
| 695,995 | - | 695,995 | 750,129 | 235 | 750,364 | ||||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||||
| Products | 466,221 | (254,494 | ) | 211,727 | 302,838 | (69,717 | ) | 233,121 | |||||||||||||||||||||||
| Services | 127,602 | (5,051 | ) | 122,551 | 84,897 | (6,925 | ) | 77,972 | |||||||||||||||||||||||
| 593,823 | (259,545 | ) | 334,278 | 387,735 | (76,642 | ) | 311,093 | ||||||||||||||||||||||||
| Gross profit | 102,172 | 259,545 | 361,717 | 362,394 | 76,877 | 439,271 | |||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||||
| Research and development, net | 122,360 | (28,198 | ) | 94,162 | 82,270 | (8,813 | ) | 73,457 | |||||||||||||||||||||||
| Selling, general and administrative | 434,619 | (151,097 | ) | 283,522 | 351,993 | (94,442 | ) | 257,551 | |||||||||||||||||||||||
| Goodwill impairment | 942,408 | (942,408 | ) | - | 102,470 | (102,470 | ) | - | |||||||||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | (23,671 | ) | 23,671 | - | (26,150 | ) | 26,150 | - | |||||||||||||||||||||||
| 1,475,716 | (1,098,032 | ) | 377,684 | 510,583 | (179,575 | ) | 331,008 | ||||||||||||||||||||||||
| Operating income (loss) | (1,373,544 | ) | 1,357,577 | (15,967 | ) | (148,189 | ) | 256,452 | 108,263 | ||||||||||||||||||||||
| Financial income (expense) | (10,287 | ) | 2,705 | (7,582 | ) | (6,529 | ) | - | (6,529 | ) | |||||||||||||||||||||
| Income (loss) before income taxes | (1,383,831 | ) | 1,360,282 | (23,549 | ) | (154,718 | ) | 256,452 | 101,734 | ||||||||||||||||||||||
| Income taxes | (10,320 | ) | (22,507 | ) | (32,827 | ) | (35,248 | ) | 33,403 | (1,845 | ) | ||||||||||||||||||||
| Net income (loss) | (1,373,511 | ) | 1,382,789 | 9,278 | (119,470 | ) | 223,049 | 103,579 | |||||||||||||||||||||||
| Net loss attributable to non-controlling interest | (676 | ) | - | (676 | ) | (50 | ) | - | (50 | ) | |||||||||||||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | (1,372,835 | ) | $ | 1,382,789 | $ | 9,954 | $ | (119,420 | ) | $ | 223,049 | $ | 103,629 | |||||||||||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | |||||||||||||||||||||||||||||||
| Basic | $ | (26.64 | ) | $ | 0.19 | $ | (2.39 | ) | $ | 2.07 | |||||||||||||||||||||
| Diluted | (26.64 | ) | 0.19 | (2.39 | ) | 2.00 | |||||||||||||||||||||||||
|
Weighted average ordinary shares outstanding |
|||||||||||||||||||||||||||||||
| Basic | 51,592 | 51,592 | 50,019 | 50,019 | |||||||||||||||||||||||||||
| Diluted | 51,592 | 52,824 | 50,019 | 51,805 | |||||||||||||||||||||||||||
|
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. |
| * Refer to the "Reconciliation of Non-GAAP Adjustments" herein for further information regarding adjustments. |
| Stratasys Ltd. | |||||||||||||||||||||
| Reconciliation of Non-GAAP Adjustments | |||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
|
Three Months Ended December
|
Twelve Months Ended December
|
||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| Net sales, products | |||||||||||||||||||||
| Deferred revenue step-up | $ | - | $ | - | $ | - | $ | 235 | |||||||||||||
| Cost of sales, products | |||||||||||||||||||||
| Acquired intangible assets amortization | (10,830 | ) | (14,654 | ) | (50,353 | ) | (56,235 | ) | |||||||||||||
| Acquired intangible assets impairment | (10,779 | ) | - | (191,534 | ) | (11,636 | ) | ||||||||||||||
| Non-cash stock-based compensation expense | (675 | ) | 164 | (3,508 | ) | (1,846 | ) | ||||||||||||||
| Reorganization and other related costs | (5,796 | ) | - | (9,099 | ) | - | |||||||||||||||
| (28,080 | ) | (14,490 | ) | (254,494 | ) | (69,717 | ) | ||||||||||||||
| Cost of sales, services | |||||||||||||||||||||
| Acquired intangible assets amortization | - | 537 | - | - | |||||||||||||||||
| Non-cash stock-based compensation expense | (338 | ) | (1,430 | ) | (1,873 | ) | (2,647 | ) | |||||||||||||
| Reorganization and other related costs | (1,726 | ) | - | (1,850 | ) | - | |||||||||||||||
| Merger and acquisition related expense | (165 | ) | (1,022 | ) | (1,328 | ) | (4,278 | ) | |||||||||||||
| (2,229 | ) | (1,915 | ) | (5,051 | ) | (6,925 | ) | ||||||||||||||
| Research and development, net | |||||||||||||||||||||
| Non-cash stock-based compensation expense | (1,400 | ) | (1,942 | ) | (5,758 | ) | (4,862 | ) | |||||||||||||
| Acquired intangible assets impairment | (7,900 | ) | - | (17,746 | ) | (3,000 | ) | ||||||||||||||
| Reorganization and other related costs | (249 | ) | - | (1,593 | ) | - | |||||||||||||||
| Merger and acquisition related expense | (192 | ) | 120 | (3,101 | ) | (951 | ) | ||||||||||||||
| (9,741 | ) | (1,822 | ) | (28,198 | ) | (8,813 | ) | ||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||
| Acquired intangible assets amortization | (4,464 | ) | (7,607 | ) | (22,436 | ) | (24,952 | ) | |||||||||||||
| Non-cash stock-based compensation expense | (3,437 | ) | (5,589 | ) | (18,871 | ) | (20,852 | ) | |||||||||||||
| Merger and acquisition related expense | (2,624 | ) | (7,172 | ) | (25,238 | ) | (48,638 | ) | |||||||||||||
| Reorganization and other related costs | (9,117 | ) | - | (15,361 | ) | - | |||||||||||||||
| Acquired intangible assets impairment | (23,399 | ) | - | (69,191 | ) | - | |||||||||||||||
| (43,041 | ) | (20,368 | ) | (151,097 | ) | (94,442 | ) | ||||||||||||||
| Goodwill impairment | (96,550 | ) | (102,470 | ) | (942,408 | ) | (102,470 | ) | |||||||||||||
| Change in the fair value of obligations in connection with acquisitions | |||||||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | 714 | 24,862 | 23,671 | 26,150 | |||||||||||||||||
| Financial expense | |||||||||||||||||||||
| Credit facility extinguishment related costs | - | - | (2,705 | ) | - | ||||||||||||||||
| Income taxes | |||||||||||||||||||||
| Corresponding tax effect and other tax adjustments | (52,720 | ) | (750 | ) | (22,507 | ) | 33,403 | ||||||||||||||
| Net income | $ | 231,647 | $ | 116,953 | $ | 1,382,789 | $ | 223,049 | |||||||||||||
| Stratasys Ltd. | |||||
| Reconciliation of GAAP to Non-GAAP Forward Looking Guidance | |||||
| Fiscal Year 2016 | |||||
| (in millions, except per share data) | |||||
| GAAP net loss | ($84) to ($67) | ||||
|
Adjustments |
|||||
| Stock-based compensation expense | $25 to $27 | ||||
| Intangible assets amortization expense | $59 | ||||
| Merger and acquisition related expense | $7 | ||||
| Reorganization and other related costs | $4 to $5 | ||||
| Tax expense related to Non-GAAP adjustments | ($5) | ||||
| Non-GAAP net income | $9 to $23 | ||||
| GAAP loss per share | ($1.60) to ($1.28) | ||||
| Non-GAAP diluted earnings per share | $0.17 to $0.43 | ||||
