The ExOne Company Reports First Quarter 2021 Results

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	)

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