Non-GAAP Discussion Disclosure
The information discussed within this release includes financial results and projections that are in accordance with accounting principles generally accepted in the United States of America (GAAP). In addition, certain non-GAAP financial measures have been provided excluding certain charges, expenses and income. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. The non-GAAP financial measures are included in an effort to provide information that investors may deem relevant to evaluate results from the Company's core business operations and to compare the Company's performance with prior periods. The non-GAAP financial measures primarily identify and exclude certain discrete items, such as merger-related expenses, amortization expenses and expenses associated with share-based compensation required under ASC 718. The Company uses these non-GAAP financial measures for evaluating comparable financial performance against prior periods.
This release is available on the Stratasys web site at www.stratasys.com
Stratasys Ltd. (Nasdaq: SSYS), headquartered in Minneapolis, Minnesota and Rehovot, Israel, is a leading global provider of 3D printing and additive manufacturing solutions. The Company's patented FDM®, PolyJet™ and WDM ™ 3D Printing technologies produce prototypes and manufactured goods directly from 3D CAD files or other 3D content. Systems include 3D printers for idea development, prototyping and direct digital manufacturing. Stratasys subsidiaries include MakerBot and Solidscape, and the Company operates the Stratasys Direct Manufacturing digital-manufacturing service comprising the services previously provided by RedEye, Harvest Technologies and Solid Concepts. Stratasys has more than 2,900 employees, holds over 600 granted or pending additive manufacturing patents globally, and has received more than 25 awards for its technology and leadership. Online at: www.stratasys.com or http://blog.stratasys.com
| Stratasys Ltd. | ||||||||||
|
Consolidated Balance Sheets |
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| (in thousands) | ||||||||||
| December 31, | December 31, | |||||||||
| 2014 | 2013 | |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 442,141 | $ | 414,088 | ||||||
| Short-term bank deposits | 595 | 200,370 | ||||||||
| Accounts receivable, net | 150,806 | 99,200 | ||||||||
| Inventories | 123,385 | 88,406 | ||||||||
| Net investment in sales-type leases | 8,170 | 6,696 | ||||||||
| Prepaid expenses | 7,931 | 5,470 | ||||||||
| Deferred income taxes | 25,697 | 16,501 | ||||||||
| Other current assets | 37,903 | 21,398 | ||||||||
| Total current assets | 796,628 | 852,129 | ||||||||
| Non-current assets | ||||||||||
| Goodwill | 1,323,502 | 1,195,891 | ||||||||
| Other intangible assets, net | 597,903 | 622,330 | ||||||||
| Property, plant and equipment, net | 157,036 | 91,005 | ||||||||
| Net investment in sales-type leases - long term | 14,822 | 11,219 | ||||||||
| Other non-current assets | 9,216 | 9,647 | ||||||||
| Total non-current assets | 2,102,479 | 1,930,092 | ||||||||
| Total assets | $ | 2,899,107 | $ | 2,782,221 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 37,359 | $ | 35,375 | ||||||
| Short term debt | 50,000 | - | ||||||||
| Accrued expenses and other current liabilities | 47,760 | 32,849 | ||||||||
| Accrued compensation and related benefits | 42,332 | 21,441 | ||||||||
| Obligations in connection with acquisitions | 28,092 | 12,027 | ||||||||
| Deferred revenues | 45,023 | 36,033 | ||||||||
| Total current liabilities | 250,566 | 137,725 | ||||||||
| Non-current liabilities | ||||||||||
| Obligations in connection with acquisitions - long term | 26,461 | 16,998 | ||||||||
| Deferred tax liabilities | 55,835 | 105,901 | ||||||||
| Deferred revenues - long-term | 5,946 | 3,315 | ||||||||
| Other non-current liabilities | 25,091 | 18,495 | ||||||||
| Total non-current liabilities | 113,333 | 144,709 | ||||||||
| Total liabilities | 363,899 | 282,434 | ||||||||
| Redeemable non-controlling interests | 3,969 | - | ||||||||
| Equity | ||||||||||
|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 shares; 50,923 and 49,211 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively |
139 | 133 | ||||||||
| Additional paid-in capital | 2,568,149 | 2,412,197 | ||||||||
| Retained earnings (accumulated deficit) | (33,871 | ) | 85,549 | |||||||
| Accumulated other comprehensive income (loss) | (3,647 | ) | 1,908 | |||||||
| Equity attributable to Stratasys Ltd. | 2,530,770 | 2,499,787 | ||||||||
| Non-controlling interest | 469 | - | ||||||||
| Total equity | 2,531,239 | 2,499,787 | ||||||||
| Total liabilities and equity | $ | 2,899,107 | $ | 2,782,221 | ||||||
| Stratasys Ltd. | ||||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
|
2014 |
2013 |
2014 | 2013 | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||
| Net sales | ||||||||||||||||||
| Products | $ | 168,595 | $ | 134,943 | $ | 612,138 | $ | 414,853 | ||||||||||
| Services | 48,517 | 20,142 | 137,991 | 69,550 | ||||||||||||||
| 217,112 | 155,085 | 750,129 | 484,403 | |||||||||||||||
| Cost of sales | ||||||||||||||||||
| Products | 82,985 | 65,088 | 302,838 | 213,427 | ||||||||||||||
| Services | 28,943 | 12,195 | 84,897 | 44,803 | ||||||||||||||
| 111,928 | 77,283 | 387,735 | 258,230 | |||||||||||||||
| Gross profit | 105,184 | 77,802 | 362,394 | 226,173 | ||||||||||||||
| Operating expenses | ||||||||||||||||||
| Research and development, net | 23,189 | 17,669 | 82,270 | 52,310 | ||||||||||||||
| Selling, general and administrative | 95,646 | 64,462 | 351,993 | 202,040 | ||||||||||||||
| Goodwill impairment | 102,470 | - | 102,470 | - | ||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | (24,862 | ) | (853 | ) | (26,150 | ) | 754 | |||||||||||
| 196,443 | 81,278 | 510,583 | 255,104 | |||||||||||||||
| Operating loss | (91,259 | ) | (3,476 | ) | (148,189 | ) | (28,931 | ) | ||||||||||
| Financial expense | (4,145 | ) | (650 | ) | (6,529 | ) | (450 | ) | ||||||||||
| Loss before income taxes | (95,404 | ) | (4,126 | ) | (154,718 | ) | (29,381 | ) | ||||||||||
| Income tax benefit | (3,370 | ) | (2,137 | ) | (35,248 | ) | (2,474 | ) | ||||||||||
| Net loss | (92,034 | ) | (1,989 | ) | (119,470 | ) | (26,907 | ) | ||||||||||
| Net income (loss) attributable to non-controlling interest | (25 | ) | - | (50 | ) | 47 | ||||||||||||
| Net loss attributable to Stratasys Ltd. | $ | (92,009 | ) | $ | (1,989 | ) | $ | (119,420 | ) | $ | (26,954 | ) | ||||||
| Net loss per ordinary share attributable to Stratasys Ltd. | ||||||||||||||||||
| Basic | $ | (1.81 | ) | $ | (0.04 | ) | $ | (2.39 | ) | $ | (0.64 | ) | ||||||
| Diluted | (1.81 | ) | (0.07 | ) | (2.39 | ) | (0.68 | ) | ||||||||||
| Weighted average ordinary shares outstanding | ||||||||||||||||||
| Basic | 50,912 | 48,955 | 50,019 | 42,079 | ||||||||||||||
| Diluted | 50,912 | 49,036 | 50,019 | 42,099 | ||||||||||||||
| Stratasys Ltd. | ||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results of Operations | ||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended December 31, 2014 | Three Months Ended December 31, 2013 | |||||||||||||||||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||||||||||||
| (unaudited) | Adjustments* | (unaudited) | (unaudited) | Adjustments* | (unaudited) | |||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Products | $ | 168,595 | $ | - | $ | 168,595 | $ | 134,943 | $ | 668 | $ | 135,611 | ||||||||||||||
| Services | 48,517 | - | 48,517 | 20,142 | - | 20,142 | ||||||||||||||||||||
| 217,112 | - | 217,112 | 155,085 | 668 | 155,753 | |||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||
| Products | 82,985 | (14,490 | ) | 68,495 | 65,088 | (14,765 | ) | 50,323 | ||||||||||||||||||
| Services | 28,943 | (1,915 | ) | 27,028 | 12,195 | (495 | ) | 11,700 | ||||||||||||||||||
| 111,928 | (16,405 | ) | 95,523 | 77,283 | (15,260 | ) | 62,023 | |||||||||||||||||||
| Gross profit | 105,184 | 16,405 | 121,589 | 77,802 | 15,928 | 93,730 | ||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Research and development, net | 23,189 | (1,822 | ) | 21,367 | 17,669 | (2,207 | ) | 15,462 | ||||||||||||||||||
| Selling, general and administrative | 95,646 | (20,368 | ) | 75,278 | 64,462 | (17,633 | ) | 46,829 | ||||||||||||||||||
| Goodwill impairment | 102,470 | (102,470 | ) | - | - | - | - | |||||||||||||||||||
| Change in the fair value of obligations in connection with acquisitions | (24,862 | ) | 24,862 | - | (853 | ) | 853 | - | ||||||||||||||||||
| 196,443 | (99,798 | ) | 96,645 | 81,278 | (18,987 | ) | 62,291 | |||||||||||||||||||
| Operating income (loss) | (91,259 | ) | 116,203 | 24,944 | (3,476 | ) | 34,915 | 31,439 | ||||||||||||||||||
| Financial expense | (4,145 | ) | - | (4,145 | ) | (650 | ) | - | (650 | ) | ||||||||||||||||
| Income (loss) before income taxes | (95,404 | ) | 116,203 | 20,799 | (4,126 | ) | 34,915 | 30,789 | ||||||||||||||||||
| Income taxes (benefit) | (3,370 | ) | (750 | ) | (4,120 | ) | (2,137 | ) | 7,133 | 4,996 | ||||||||||||||||
| Net income (loss) | (92,034 | ) | 116,953 | 24,919 | (1,989 | ) | 27,782 | 25,793 | ||||||||||||||||||
| Net loss attributable to non-controlling interest | (25 | ) | - | (25 | ) | - | - | - | ||||||||||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | (92,009 | ) | $ | 116,953 | $ | 24,944 | $ | (1,989 | ) | $ | 27,782 | $ | 25,793 | ||||||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | ||||||||||||||||||||||||||
| Basic | $ | (1.81 | ) | $ | 0.49 | $ | (0.04 | ) | $ | 0.53 | ||||||||||||||||
| Diluted | (1.81 | ) | 0.48 | (0.07 | ) | 0.50 | ||||||||||||||||||||
| Weighted average ordinary shares outstanding | ||||||||||||||||||||||||||
| Basic | 50,912 | 50,912 | 48,955 | 48,964 | ||||||||||||||||||||||
| Diluted | 50,912 | 52,491 | 49,036 | 51,429 | ||||||||||||||||||||||
