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, or expectations. Forward-looking statements typically are identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “goal,” “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 filings with the U.S. Securities and Exchange Commission (the “SEC”), 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 consistently generate operating profits; fluctuations in the Company’s revenues and operating results; 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 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)
				Quarter Ended										%
				March 31										Change
					2019					2018
Revenue				$	9,579				$	11,893				(19	%)
Cost of sales					6,937					9,277				(25	%)
Gross profit					2,642					2,616				1	%
Gross margin					27.6	%				22.0	%
Research and development					2,432					2,795				(13	%)
Selling, general and administrative					5,423					6,202				(13	%)
Operating expenses					7,855					8,997				(13	%)
Operating loss					(5,213	)				(6,381	)			18	%
Interest expense					71					33				115	%
Other expense (income) ̶ net					12					(46	)			NM
					83					(13	)			NM
Loss before income taxes					(5,296	)				(6,368	)			17	%
(Benefit) provision for income taxes					(800	)				17				NM
Net loss				$	(4,496	)			$	(6,385	)			30	%
Net loss per common share:
Basic				$	(0.28	)			$	(0.40	)			30	%
Diluted				$	(0.28	)			$	(0.40	)			30	%
Weighted average shares outstanding (basic and diluted)					16,253					16,139
NM: Not Meaningful

The ExOne Company Consolidated Balance Sheet (in thousands, except per-share and share amounts) (Unaudited)
				March 31,					December 31,
					2019					2018
Assets
Current assets:
Cash and cash equivalents				$	5,446				$	7,592
Restricted cash					1,896					1,548
Accounts receivable ̶ net					3,546					6,393
Current portion of net investment in sales-type leases					287					302
Inventories ̶ net					16,361					15,930
Prepaid expenses and other current assets					2,917					2,438
Total current assets					30,453					34,203
Property and equipment ̶ net					41,356					41,906
Net investment in sales-type leases ̶ net of current portion					1,272					1,351
Other noncurrent assets					537					222
Total assets				$	73,618				$	77,682
Liabilities
Current liabilities:
Current portion of long-term debt				$	147				$	144
Accounts payable					3,488					4,376
Accrued expenses and other current liabilities					4,397					6,049
Current portion of contract liabilities					5,573					2,343
Total current liabilities					13,605					12,912
Long-term debt ̶ net of current portion					1,326					1,364
Contract liabilities ̶ net of current portion					352					527
Other noncurrent liabilities					296					104
Total liabilities					15,579					14,907
Contingencies and commitments
Stockholders' equity
Common stock, $0.01 par value, 200,000,000 shares authorized,
16,284,948 (2019) and 16,234,201 (2018) shares issued and outstanding					163					162
Additional paid-in capital					175,749					175,214
Accumulated deficit					(106,349	)				(101,853	)
Accumulated other comprehensive loss					(11,524	)				(10,748	)
Total stockholders' equity					58,039					62,775
Total liabilities and stockholders' equity				$	73,618				$	77,682

The ExOne Company Statement of Consolidated Cash Flows (in thousands) (Unaudited)
				Quarter Ended
				March 31,
					2019					2018
Operating activities
Net loss				$	(4,496	)			$	(6,385	)
Adjustments to reconcile net loss to net cash used for operations:
Depreciation and amortization					1,165					1,488
Equity-based compensation					439					379
Amortization of debt issuance costs					23					5
(Recoveries) provision for bad debts ̶ net					(73	)				9
Provision for slow-moving, obsolete and lower of cost or net realizable value inventories ̶ net					107					16
Loss from disposal of property and equipment ̶ net					—					9
Changes in assets and liabilities, excluding effects of foreign currency translation adjustments:
Decrease in accounts receivable					2,877					3,467
Decrease in net investment in sales-type leases					87					51
Increase in inventories					(1,576	)				(3,486	)
Increase in prepaid expenses and other assets					(509	)				(1,351	)
(Decrease) increase in accounts payable					(793	)				1,244
Decrease in accrued expenses and other liabilities					(1,748	)				(511	)
Increase in contract liabilities					3,122					219
Net cash used for operating activities					(1,375	)				(4,846	)
Investing activities
Capital expenditures					(347	)				(483	)
Proceeds from sale of property and equipment					—					25
Net cash used for investing activities					(347	)				(458	)
Financing activities
Payments on long-term debt					(36	)				(35	)
Proceeds from exercise of employee stock options					165					—
Taxes related to the net share settlement of equity-based awards					(68	)				—
Debt issuance costs					—					(188	)
Other					(5	)				(4	)
Net cash provided by (used for) financing activities					56					(227	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash					(132	)				209
Net change in cash, cash equivalents, and restricted cash					(1,798	)				(5,322	)
Cash, cash equivalents, and restricted cash at beginning of period					9,140					22,178
Cash, cash equivalents, and restricted cash at end of period				$	7,342				$	16,856
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				$	819				$	814
Transfer of internally developed 3D printing machines from property and equipment to inventories for sale				$	—				$	113
Property and equipment included in accounts payable				$	23				$	49
Property and equipment included in accrued expenses and other current liabilities				$	7				$	50
Property and equipment acquired through financing arrangements				$	—				$	14
Debt issuance costs included in accrued expenses and other current liabilities				$	—				$	76

The ExOne Company Additional Information (Unaudited)
				Quarter Ended
				March 31,
				2019			2018
3D printing machine units sold:
Direct				6			3
Indirect				2			3
				8			6

The ExOne Company Adjusted EBITDA Reconciliation (in millions) (Unaudited)
				Quarter Ended
				March 31,
					2019					2018
Net loss				$	(4.5	)			$	(6.4	)
Interest expense					0.1					0.0
(Benefit) provision for income taxes					(0.8	)				0.0
Depreciation and amortization					1.2					1.5
Equity-based compensation					0.4					0.4
Other expense (income) ̶ net					0.0					(0.0	)
Adjusted EBITDA				$	(3.6	)			$	(4.5	)

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