The ExOne Company Reports First Quarter 2021 Results
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The ExOne Company Reports First Quarter 2021 Results

NORTH HUNTINGDON, Pa. — (BUSINESS WIRE) — May 17, 2021The ExOne Company (Nasdaq: XONE) (“ExOne” or the “Company”), the global leader in industrial sand and metal 3D printers using binder jetting technology, today reported financial results for the first quarter ended March 31, 2021.

“The ExOne team is pleased to report record levels of both recurring revenue and machine order backlog, which shows the strength of our product offerings, adoption model, and momentum,” said John Hartner, ExOne’s CEO.

“While our first quarter results reflect the difficult operating environment that continues to persist as a result of COVID-19, we are seeing signs of an economic rebound, particularly in the U.S. market where we saw a higher concentration of sales and backlog growth during the first quarter. We look forward to entering the post-pandemic period with new tailwinds as manufacturers look to de-risk supply chains and improve the sustainability of their products with new designs that require our industrial 3D printing solutions to execute.”

Other highlights for the year to-date are also driving confidence at ExOne:

Q1 2021 Revenue Summary

 

 

Three Months Ended

 

 

 

 

 

(in thousands)

 

March 31,

 

 

 

 

 

Revenue by Product Line

 

2021

 

 

2020

 

 

% Change

 

3D Printing Machines

 

$

4,905

 

 

 

38

%

 

$

6,317

 

 

 

47

%

 

(22%)

 

3D Printed and Other

Products, Materials and Services

 

 

8,116

 

 

 

62

%

 

 

7,066

 

 

 

53

%

 

15%

 

Total Revenue

 

$

13,021

 

 

 

100

%

 

$

13,383

 

 

 

100

%

 

(3%)

 

Q1 2021 Financial Results Summary

The following summarizes ExOne’s financial results for the first quarter ended March 31, 2021:

Outlook

ExOne CEO John Hartner commented, “With signs of a broader economic recovery on the horizon, a record contractual backlog and expanded product portfolio and distribution network, we see the remainder of 2021 as the beginning of our next phase of growth. While there are still some remaining execution challenges as a result of COVID-19, particularly in Europe and Asia, we feel confident that our operating plan for 2021 is well supported. In addition, our improved liquidity position gives us the ability to strategically invest in additional growth opportunities.”

Webcast and Conference Call

ExOne will host a conference call and live webcast on Tuesday, May 18, 2021 at 8:30 a.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the first quarter of 2021, along with ExOne’s corporate strategies and outlook. A question-and-answer session will follow. The teleconference can be accessed by calling (877) 407-9039 or, for international callers, (201) 689-8470. The webcast can be accessed on the Company’s website at www.investor.exone.com.

A telephonic replay of the conference call will be available from 11:30 a.m. ET on the day of the teleconference through Tuesday, May 25, 2021. To listen to a replay of the call, dial (844) 512-2921 or, for international callers, (412) 317-6671, and enter the conference ID number 13719543, or access the webcast replay via the Company’s website.

Non-GAAP Financial Measure

This press release includes a non-GAAP financial measure that is not prepared in accordance with, nor as an alternative to, GAAP. In addition, this non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to a similarly titled measure presented by other companies.

The table captioned “Adjusted EBITDA Reconciliation” in this press release provides a reconciliation of net loss (the most directly comparable GAAP measure) to Adjusted EBITDA.

ExOne defines Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) as net income (loss) (as calculated under accounting principles generally accepted in the United States (“GAAP”)) plus interest expense, provision (benefit) for income taxes, depreciation, equity-based compensation, gain from sale-leaseback of property and equipment and other expense (income) – net. Use of Adjusted EBITDA, as defined under SEC rules, is intended as a supplemental measure of ExOne’s performance that is not required by, or presented in accordance with, GAAP. The presentation of Adjusted EBITDA is not intended to be a substitute for, and should not be considered in isolation from, net loss reported in accordance with GAAP. The Company’s presentation of Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.

The Company believes that Adjusted EBITDA is meaningful to its investors to enhance their understanding of ExOne’s financial results. Although Adjusted EBITDA is not necessarily a measure of the Company’s ability to fund its cash needs, the Company understands that it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare ExOne’s performance with the performance of other companies that report Adjusted EBITDA.

About ExOne

ExOne is the pioneer and global leader in binder jet 3D printing technology. Since 1995, we’ve been on a mission to deliver powerful 3D printers that solve our customers’ toughest problems and enable world-changing innovations. Our 3D printing systems quickly transform powder materials — including metals, ceramics, composites and sand — into precision parts, metalcasting molds and cores, and innovative tooling solutions. Industrial customers use our technology to save time and money, reduce waste, increase their manufacturing flexibility, and deliver designs and products that were once impossible. As home to the world’s leading team of binder jetting experts, ExOne also provides specialized 3D printing services, including on-demand production of mission-critical parts, as well as engineering and design consulting. Learn more about ExOne at www.exone.com or on Twitter at @ExOneCo.

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,” “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 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

)

 



Contact:

Doug Zemba
Chief Financial Officer
(724) 765-1331
douglas.zemba@exone.com

Monica Gould
Investor Relations
(212) 871-3927
investor.relations@exone.com