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 severity and duration of world health events, including the COVID-19 outbreak and the related economic repercussions and operational challenges; 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 3D printing machines and technology and to develop and introduce 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 customer specific terms in machine sale agreements in determining the period in which the Company recognizes revenue; risks related to global operations including effects of foreign currency and COVID-19; 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, cyberattacks, war, terrorism and cancellation or unavailability of insurance coverage; the impact of disruption of the Company’s manufacturing facilities or ExOne Adoption Centers; the adequacy of ExOne’s protection of its intellectual property; expectations regarding demand for the Company’s industrial products, and other matters with regard to outlook; and other factors beyond our control, including the impact of COVID-19.
These and other important factors, including those discussed under Item 1A, “Risk Factors” and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, and under Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, 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 Quarterly Report on Form 10-Q that could cause actual results to differ from these forward-looking statements.
FINANCIAL TABLES FOLLOW.
The ExOne Company Condensed Statement of Consolidated Operations and Comprehensive Loss (Unaudited) (in thousands, except per-share amounts) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Revenue |
|
$ |
13,021 |
|
|
$ |
13,383 |
|
Cost of sales |
|
|
11,021 |
|
|
|
9,754 |
|
Gross profit |
|
|
2,000 |
|
|
|
3,629 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
|
2,624 |
|
|
|
2,476 |
|
Selling, general and administrative |
|
|
5,893 |
|
|
|
6,163 |
|
| Gain from sale-leaseback of property and equipment |
|
|
— |
|
|
|
(1,462 |
) |
|
|
|
|
8,517 |
|
|
|
7,177 |
|
| Loss from operations |
|
|
(6,517 |
) |
|
|
(3,548 |
) |
| Other expense (income) |
|
|
|
|
|
|
|
|
| Interest expense |
|
|
160 |
|
|
|
64 |
|
| Other (income) expense – net |
|
|
(125 |
) |
|
|
(190 |
) |
|
|
|
|
35 |
|
|
|
(126 |
) |
| Loss before income taxes |
|
|
(6,552 |
) |
|
|
(3,422 |
) |
| (Benefit) provision for income taxes |
|
|
(412 |
) |
|
|
226 |
|
| Net loss |
|
$ |
(6,140 |
) |
|
$ |
(3,648 |
) |
| Net loss per common share: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.29 |
) |
|
$ |
(0.22 |
) |
| Diluted |
|
$ |
(0.29 |
) |
|
$ |
(0.22 |
) |
| Comprehensive loss: |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(6,140 |
) |
|
$ |
(3,648 |
) |
| Other comprehensive loss: |
|
|
|
|
|
|
|
|
| Foreign currency translation adjustments |
|
|
(1,120 |
) |
|
|
(838 |
) |
| Comprehensive loss |
|
$ |
(7,260 |
) |
|
$ |
(4,486 |
) |
| The ExOne Company Condensed Consolidated Balance Sheet (Unaudited) (in thousands, except per-share and share amounts) |
||||||||
|
|
|
March 31, |
|
|
December 31, |
|
||
|
|
|
2021 |
|
|
2020 |
|
||
| Assets |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
137,321 |
|
|
$ |
49,668 |
|
| Restricted cash |
|
|
955 |
|
|
|
508 |
|
| Accounts receivable – net |
|
|
4,825 |
|
|
|
5,225 |
|
| Current portion of net investment in sales-type leases – net |
|
|
233 |
|
|
|
229 |
|
| Inventories – net |
|
|
23,015 |
|
|
|
20,562 |
|
| Prepaid expenses and other current assets |
|
|
6,724 |
|
|
|
4,451 |
|
| Total current assets |
|
|
173,073 |
|
|
|
80,643 |
|
| Property and equipment – net |
|
|
21,429 |
|
|
|
21,300 |
|
| Operating lease right-of-use assets |
|
|
3,429 |
|
|
|
4,043 |
|
| Net investment in sales-type leases – net of current portion – net |
|
|
449 |
|
|
|
509 |
|
| Other noncurrent assets |
|
|
460 |
|
|
|
794 |
|
| Total assets |
|
$ |
198,840 |
|
|
$ |
107,289 |
|
| Liabilities |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Current portion of long-term debt |
|
$ |
1,949 |
|
|
$ |
1,622 |
|
| Current portion of operating lease liabilities |
|
|
1,897 |
|
|
|
1,958 |
|
| Accounts payable |
|
|
6,158 |
|
|
|
4,501 |
|
| Accrued expenses and other current liabilities |
|
|
5,452 |
|
|
|
4,978 |
|
| Current portion of contract liabilities |
|
|
14,877 |
|
|
|
13,586 |
|
| Total current liabilities |
|
|
30,333 |
|
|
|
26,645 |
|
| Long-term debt – net of current portion |
|
|
245 |
|
|
|
1,783 |
|
| Operating lease liabilities – net of current portion |
|
|
1,532 |
|
|
|
2,085 |
|
| Contract liabilities – net of current portion |
|
|
248 |
|
|
|
159 |
|
| Other noncurrent liabilities |
|
|
258 |
|
|
|
314 |
|
| Total liabilities |
|
|
32,616 |
|
|
|
30,986 |
|
| Contingencies and commitments |
|
|
|
|
|
|
|
|
| Stockholders' equity |
|
|
|
|
|
|
|
|
| Common stock, $0.01 par value, 200,000,000 shares authorized, 22,030,401 (2021) and 20,009,157 (2020) shares issued and outstanding |
|
|
220 |
|
|
|
200 |
|
| Additional paid-in capital |
|
|
315,274 |
|
|
|
218,113 |
|
| Accumulated deficit |
|
|
(138,012 |
) |
|
|
(131,872 |
) |
| Accumulated other comprehensive loss |
|
|
(11,258 |
) |
|
|
(10,138 |
) |
| Total stockholders' equity |
|
|
166,224 |
|
|
|
76,303 |
|
| Total liabilities and stockholders' equity |
|
$ |
198,840 |
|
|
$ |
107,289 |
|
| The ExOne Company Condensed Statement of Consolidated Cash Flows (Unaudited) (in thousands) |
||||||||
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
| Operating activities |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(6,140 |
) |
|
$ |
(3,648 |
) |
| Adjustments to reconcile net loss to net cash used for operations: |
|
|
|
|
|
|
|
|
| Depreciation |
|
|
993 |
|
|
|
923 |
|
| Equity-based compensation |
|
|
282 |
|
|
|
292 |
|
| Amortization of debt issuance costs |
|
|
7 |
|
|
|
19 |
|
| (Recoveries) provision for bad debts – net |
|
|
(47 |
) |
|
|
51 |
|
| Provision for slow-moving, obsolete and lower of cost or net realizable value inventories – net |
|
|
129 |
|
|
|
22 |
|
| Foreign exchange gains on intercompany transactions – net |
|
|
(136 |
) |
|
|
(165 |
) |
| Gain from sale-leaseback of property and equipment |
|
|
— |
|
|
|
(1,462 |
) |
| Deferred income taxes |
|
|
— |
|
|
|
195 |
|
| Loss on extinguishment of debt |
|
|
119 |
|
|
|
— |
|
| Changes in assets and liabilities, excluding effects of foreign currency translation adjustments: |
|
|
|
|
|
|
|
|
| Decrease in accounts receivable |
|
|
311 |
|
|
|
1,487 |
|
| Decrease (increase) in net investment in sales-type leases |
|
|
56 |
|
|
|
(50 |
) |
| Increase in inventories |
|
|
(3,500 |
) |
|
|
(2,146 |
) |
| Increase in prepaid expenses and other assets |
|
|
(1,389 |
) |
|
|
(674 |
) |
| Increase (decrease) in accounts payable |
|
|
1,549 |
|
|
|
(1,408 |
) |
| Increase (decrease) in accrued expenses and other liabilities |
|
|
395 |
|
|
|
(24 |
) |
| Increase in contract liabilities |
|
|
1,468 |
|
|
|
1,849 |
|
| Net cash used for operating activities |
|
|
(5,903 |
) |
|
|
(4,739 |
) |
| Investing activities |
|
|
|
|
|
|
|
|
| Capital expenditures |
|
|
(1,067 |
) |
|
|
(338 |
) |
| Proceeds from sale of property and equipment |
|
|
— |
|
|
|
16,228 |
|
| Net cash (used for) provided by investing activities |
|
|
(1,067 |
) |
|
|
15,890 |
|
| Financing activities |
|
|
|
|
|
|
|
|
| Payments on long-term debt |
|
|
(1,226 |
) |
|
|
(39 |
) |
| Proceeds from exercise of employee stock options |
|
|
1,100 |
|
|
|
— |
|
| Proceeds from common stock offerings, net of issuance costs |
|
|
95,446 |
|
|
|
— |
|
| Other |
|
|
(6 |
) |
|
|
(3 |
) |
| Net cash provided by (used for) financing activities |
|
|
95,314 |
|
|
|
(42 |
) |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
|
(244 |
) |
|
|
(31 |
) |
| Net change in cash, cash equivalents, and restricted cash |
|
|
88,100 |
|
|
|
11,078 |
|
| Cash, cash equivalents, and restricted cash at beginning of period |
|
|
50,176 |
|
|
|
6,243 |
|
| Cash, cash equivalents, and restricted cash at end of period |
|
$ |
138,276 |
|
|
$ |
17,321 |
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
975 |
|
|
$ |
852 |
|
| Transfer of internally developed 3D printing machines from property and equipment to inventories for sale |
|
$ |
629 |
|
|
$ |
823 |
|
| Property and equipment included in accounts payable |
|
$ |
310 |
|
|
$ |
56 |
|
| Common stock offering issuance costs included in accounts payable |
|
$ |
158 |
|
|
$ |
— |
|
| Unsettled proceeds from exercise of employee stock options included in prepaid expenses and other current assets |
|
$ |
340 |
|
|
$ |
— |
|
| Debt issuance costs included in accounts payable |
|
$ |
— |
|
|
$ |
41 |
|
| The ExOne Company Adjusted EBITDA Reconciliation (Unaudited) (in millions) |
||||||||
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
| Net loss |
|
$ |
(6.1 |
) |
|
$ |
(3.6 |
) |
| Interest expense |
|
|
0.1 |
|
|
|
0.1 |
|
| (Benefit) provision for income taxes |
|
|
(0.4 |
) |
|
|
0.2 |
|
| Depreciation |
|
|
1.0 |
|
|
|
0.9 |
|
| Equity-based compensation |
|
|
0.3 |
|
|
|
0.3 |
|
| Gain from sale-leaseback of property and equipment |
|
|
— |
|
|
|
(1.5 |
) |
| Other (income) expense – net |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
| Adjusted EBITDA |
|
$ |
(5.2 |
) |
|
$ |
(3.8 |
) |
