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 SEC filings, including 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 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, PSCs or 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 and other SEC filings that could cause actual results to differ from these forward-looking statements.
FINANCIAL TABLES FOLLOW.
The ExOne Company Statement of Consolidated Operations (in thousands, except per-share amounts) (Unaudited) |
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Quarter Ended | % | Nine Months Ended | % | ||||||||||||||||||||||||
September 30, | Change | September 30, | Change | |||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Revenue | $ | 16,589 | $ | 15,887 | 4 | % | $ | 39,339 | $ | 37,555 | 5 | % | ||||||||||||||||
Cost of sales | 10,016 | 11,790 | (15 | %) | 28,560 | 29,829 | (4 | %) | ||||||||||||||||||||
Gross profit | 6,573 | 4,097 | 60 | % | 10,779 | 7,726 | 40 | % | ||||||||||||||||||||
Gross margin | 39.6 | % | 25.8 | % | 27.4 | % | 20.6 | % | ||||||||||||||||||||
Research and development | 2,444 | 2,871 | (15 | %) | 8,474 | 7,219 | 17 | % | ||||||||||||||||||||
Selling, general and administrative | 5,200 | 6,062 | (14 | %) | 17,755 | 18,338 | (3 | %) | ||||||||||||||||||||
7,644 | 8,933 | (14 | %) | 26,229 | 25,557 | 3 | % | |||||||||||||||||||||
Operating loss | (1,071 | ) | (4,836 | ) | 78 | % | (15,450 | ) | (17,831 | ) | 13 | % | ||||||||||||||||
Interest expense | 73 | 24 | 204 | % | 179 | 69 | 159 | % | ||||||||||||||||||||
Other (income) expense – net | (838 | ) | (11 | ) | NM | (936 | ) | 134 | NM | |||||||||||||||||||
(765 | ) | 13 | NM | (757 | ) | 203 | NM | |||||||||||||||||||||
Loss before income taxes | (306 | ) | (4,849 | ) | 94 | % | (14,693 | ) | (18,034 | ) | 19 | % | ||||||||||||||||
Provision for income taxes | 17 | 14 | 21 | % | 52 | 23 | 126 | % | ||||||||||||||||||||
Net loss | $ | (323 | ) | $ | (4,863 | ) | 93 | % | $ | (14,745 | ) | $ | (18,057 | ) | 18 | % | ||||||||||||
Net loss per common share: | ||||||||||||||||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.30 | ) | 93 | % | $ | (0.91 | ) | $ | (1.13 | ) | 19 | % | ||||||||||||
Diluted | $ | (0.02 | ) | $ | (0.30 | ) | 93 | % | $ | (0.91 | ) | $ | (1.13 | ) | 19 | % | ||||||||||||
Weighted average shares outstanding (basic and diluted) | 16,183 | 16,069 | 16,157 | 16,048 |