Stratasys Releases Third Quarter 2021 Financial Results

Use of Non-GAAP Financial Measures

The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our Company in gauging our results of operations (i) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, legal provisions and (ii) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below.

 
 
 
 
Stratasys Ltd.     
       
Consolidated Balance Sheets     
 (Unaudited)     
(in thousands, except share data)     
           
     

September 30,

 

December 31,

 

2021

 

2020

       
       
ASSETS      
     
Current assets      
Cash and cash equivalents

 $

        332,871

 

 

 $

        272,092

 

Short-term deposits

 

           187,000

 

 

 

             27,000

 

Accounts receivable, net of allowance for credit losses of $0.7 and $0.9 million as of September 30, 2021 and December 31, 2020

 

           121,848

 

 

 

           106,068

 

Inventories

 

           119,925

 

 

 

           131,672

 

Prepaid expenses

 

              8,634

 

 

 

              6,717

 

Other current assets

 

             27,317

 

 

 

             16,943

 

     
Total current assets

 

           797,595

 

 

 

           560,492

 

       
Non-current assets      
Property, plant and equipment, net  

 

           199,668

 

 

 

           201,232

 

Goodwill

 

             39,750

 

 

 

             35,694

 

Other intangible assets, net

 

           117,010

 

 

 

           131,569

 

Operating lease right-of-use assets  

 

             15,624

 

 

 

             21,298

 

Other non-current assets

 

             58,365

 

 

 

             39,717

 

     
Total non-current assets

 

           430,417

 

 

 

           429,510

 

     
Total assets

 $

     1,228,012

 

 

 $

        990,002

 

     
LIABILITIES AND EQUITY      
     
Current liabilities  
Accounts payable

 $

          48,292

 

 

 $

          16,987

 

Accrued expenses and other current liabilities

 

             30,875

 

 

 

             31,061

 

Accrued compensation and related benefits

 

             36,983

 

 

 

             25,659

 

Deferred revenues - short term

 

             49,104

 

 

 

             49,165

 

Operating lease liabilities - short term

 

              7,514

 

 

 

              9,282

 

     
Total current liabilities

 

172,768

 

 

 

132,154

 

     
Non-current liabilities      
Deferred revenues - long term

 

             17,980

 

 

 

             14,227

 

Operating lease liabilities - long term

 

              8,353

 

 

 

             12,567

 

Contingent consideration

 

             40,589

 

 

 

             37,400

 

Other non-current liabilities

 

             37,869

 

 

 

             34,059

 

     
Total non-current liabilities

 

104,791

 

 

 

98,253

 

     
Total liabilities

 

277,559

 

 

 

230,407

 

       
Redeemable non-controlling interests  

 

                    -

 

 

 

                 227

 

     
Equity      
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 65,467 thousands shares and 56,617 thousands shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively

 

182

 

 

155

 

Additional paid-in capital

 

        3,001,685

 

 

 

        2,753,955

 

Accumulated other comprehensive loss  

 

             (8,372

)

 

 

             (8,846

)

Accumulated deficit

 

       (2,043,042

)

 

 

       (1,985,896

)

Total equity

 

           950,453

 

 

 

           759,368

 

     
Total liabilities and equity

 $

     1,228,012

 

 

 $

        990,002

 

 
 
 
 
 
Stratasys Ltd.    
      
Consolidated Statements of Operations    
      
(in thousands, except per share data)         
                   
    

Three Months Ended September 30,

 

Nine Months Ended September 30,

    

2021

 

2020

 

2021

 

2020

     

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

Net sales                
Products  

 $

                         108,888

 

 

 $

     83,548

 

 

 $

       299,517

 

 

 $

               240,597

 

Services  

 

                              50,121

 

 

 

        44,344

 

 

 

          140,686

 

 

 

                  137,825

 

 

 

                            159,009

 

 

 

      127,892

 

 

 

          440,203

 

 

 

                  378,422

 

               
Cost of sales                
Products  

 

                              54,820

 

 

 

        47,339

 

 

 

          151,471

 

 

 

                  126,556

 

Services  

 

                              36,001

 

 

 

        30,784

 

 

 

          101,697

 

 

 

                   98,491

 

   

 

                              90,821

 

 

 

        78,123

 

 

 

          253,168

 

 

 

                  225,047

 

               
Gross profit  

 

                              68,188

 

 

 

        49,769

 

 

 

          187,035

 

 

 

                  153,375

 

               
Operating expenses                
Research and development, net  

 

                              22,645

 

 

 

        19,562

 

 

 

            65,683

 

 

 

                   65,059

 

Selling, general and administrative  

 

                              67,462

 

 

 

        48,343

 

 

 

          184,353

 

 

 

                  155,630

 

Goodwill impairment  

 

                                     -

 

 

 

      386,154

 

 

 

                   -

 

 

 

                  386,154

 

 

 

                              90,107

 

 

 

      454,059

 

 

 

          250,036

 

 

 

                  606,843

 

               
Operating loss  

 

                            (21,919

)

 

 

     (404,290

)

 

 

          (63,001

)

 

 

                (453,468

)

               
Financial expenses, net  

 

                                 (634

)

 

 

           (167

)

 

 

            (1,383

)

 

 

                       (847

)

               
Loss before income taxes  

 

                            (22,553

)

 

 

     (404,457

)

 

 

          (64,384

)

 

 

                (454,315

)

                 
Income tax benefit  

 

                                  699

 

 

 

            343

 

 

 

             6,009

 

 

 

                     2,250

 

               
Share in profit (loss) of associated companies  

 

                                3,778

 

 

 

           (952

)

 

 

             1,229

 

 

 

                    (2,740

)

                 
Net loss  

 

                            (18,076

)

 

 

     (405,066

)

 

 

          (57,146

)

 

 

                (454,805

)

               
Net loss attributable to non-controlling interests  

 

                                     -

 

 

 

               (4

)

 

 

                   -

 

 

 

                         (54

)

               
Net loss attributable to Stratasys Ltd.  

 $

                          (18,076

)

 

 $

  (405,062

)

 

 $

       (57,146

)

 

 $

             (454,751

)

               
Net loss per ordinary share attributable to Stratasys Ltd.                
Basic  

 $

                             (0.28

)

 

 $

       (7.35

)

 

 $

           (0.91

)

 

 $

                   (8.29

)

Diluted  

 $

                             (0.28

)

 

 $

       (7.35

)

 

 $

           (0.91

)

 

 $

                   (8.29

)

               
Weighted average ordinary shares outstanding                
Basic  

 

                              65,018

 

 

 

        55,086

 

 

 

            62,888

 

 

 

                   54,851

 

Diluted  

 

                              65,018

 

 

 

        55,086

 

 

 

            62,888

 

 

 

                   54,851

 

 
 
 
 
       

Three Months Ended September 30,

       

2021

 

Non-GAAP

 

2021

 

2020

 

Non-GAAP

 

2020

       

GAAP

 

Adjustments

 

Non-GAAP

 

GAAP

 

Adjustments

 

Non-GAAP

       

U.S. dollars and shares in thousands (except per share amounts)

                             
    Gross profit (1)  

 $

       68,188

 

 $

         8,507

 

 $

       76,695

 $

              49,769

 

 $

       10,036

 

 $

           59,805

 

    Operating income (loss) (1,2)  

 

        (21,919

)

 

          23,739

 

 

            1,820

 

             (404,290

)

 

        403,268

 

 

              (1,022

)

    Net income (loss) attributable to Stratasys Ltd. (1,2,3)  

 

        (18,076

)

 

          18,592

 

 

               516

 

             (405,061

)

 

        402,050

 

 

              (3,011

)

    Net income (loss) per diluted share attributable to Stratasys Ltd. (4)  

 $

         (0.28

)

 $

           0.28

 

 $

           0.01

 $

                (7.35

)

 $

           7.30

 

 $

             (0.05

)

                       
                       

(1)

  Acquired intangible assets amortization expense         

 

            5,495

 

         

 

            4,065

 

   

 

  Non-cash stock-based compensation expense         

 

               804

 

         

 

               524

 

   

 

  Restructuring and other related costs         

 

                 67

 

         

 

               191

 

   

 

  Impairment charges      

 

            2,141

 

         

 

            5,256

 

   

 

         

 

            8,507

 

         

 

          10,036

 

   

 

                       

(2)

  Acquired intangible assets amortization expense         

 

            2,205

 

         

 

            2,162

 

   

 

  Non-cash stock-based compensation expense         

 

            7,154

 

         

 

            4,352

 

   

 

  Goodwill impairment      

 

                 -

 

         

 

        386,154

 

   

 

  Impairment of long-lived assets      

 

            1,242

 

         

 

                 -

 

   

 

  Restructuring and other related costs         

 

               210

 

         

 

                 34

 

   

 

  Revaluation of investments      

 

            2,025

 

         

 

                 -

 

   

 

  Contingent consideration      

 

               197

 

         

 

                 -

 

   

 

  Legal and other expenses         

 

            2,199

 

         

 

               530

 

   

 

         

 

          15,232

 

         

 

        393,232

 

   

 

         

 

          23,739

 

         

 

        403,268

 

   

 

                       

(3)

  Corresponding tax effect      

 

             (376

)

         

 

          (1,296

)

   

 

  Equity method related amortization, divestments and impairments      

 

          (4,771

)

         

 

                 78

 

   

 

         

 $

       18,592

 

         

 $

     402,050

 

   

(4)

   Weighted average number of ordinary shares outstanding- Diluted  

 

          65,018

 

     

 

          65,950

 

 

                 55,086

 

     

 

              55,086

 

 
 
 
 
 
       

Nine Months Ended September 30,

       

2021

 

Non-GAAP

 

2021

 

2020

 

Non-GAAP

 

2020

       

GAAP

 

Adjustments

 

Non-GAAP

 

GAAP

 

Adjustments

 

Non-GAAP

       

U.S. dollars and shares in thousands (except per share amounts)

                             
    Gross profit (1)  

 $

187,035

 

 $

    22,192

 

 $

     209,227

 

 

 $

    153,375

 

 $

    24,062

 

 $

     177,437

 

    Operating income (loss) (1,2)  

 $

(63,001

)

 $

    59,657

 

 $

       (3,344

)

 

 $

  (453,468

)

 $

  435,987

 

 $

      (17,481

)

    Net income (loss) attributable to Stratasys Ltd. (1,2,3)  

 $

(57,146

)

 $

    52,284

 

 $

       (4,862

)

 

 $

  (454,751

)

 $

  433,821

 

 $

      (20,930

)

    Net income (loss) per diluted share attributable to Stratasys Ltd. (4)  

 $

     (0.91

)

 $

        0.83

 

 $

         (0.08

)

 

 $

        (8.29

)

 $

        7.91

 

 $

          (0.38

)

             
               

(1)

  Acquired intangible assets amortization expense         

 

       16,368

 

 

 

       12,196

 

 

  Non-cash stock-based compensation expense         

 

         2,226

 

 

 

         1,424

 

 

  Impairment charges      

 

         2,141

 

 

 

         5,256

 

 

  Restructuring and other related costs         

 

         1,457

 

 

 

         5,187

 

 

         

 

       22,192

 

 

 

       24,062

 

 

           

(2)

  Acquired intangible assets amortization expense         

 

         6,598

 

 

 

         6,430

 

 

  Non-cash stock-based compensation expense         

 

       20,914

 

 

 

       14,470

 

 

  Goodwill impairment      

 

              -

 

 

 

     386,154

 

 

  Impairment of long-lived assets      

 

         2,664

 

 

 

               -

 

 

  Restructuring and other related costs         

 

         2,370

 

 

 

         3,863

 

 

  Revaluation of investments      

 

            556

 

 

 

               -

 

 

  Contingent consideration      

 

            590

 

 

 

               -

 

 

  Legal and other expenses         

 

         3,773

 

 

 

         1,007

 

 

         

 

       37,465

 

 

 

     411,925

 

 

         

 

       59,657

 

 

 

     435,987

 

 

           

(3)

  Corresponding tax effect      

 

       (2,770

)

 

 

        (2,396

)

 

  Equity method related amortization, divestments and impairments      

 

       (4,603

)

 

 

            230

 

 

         

 $

    52,284

 

 

 $

  433,821

 

 

                       

(4)

  Weighted average number of ordinary shares outstanding- Diluted  

 

62,888

 

 

62,888

 

 

54,851

 

 

54,851

 

 
 

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