Consolidated Balance Sheets |
||||||||
| Period Ended | ||||||||
| September 30, 2023
(Unaudited) |
December 31, 2022
|
|||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ |
7,821 |
|
$ |
10,713 |
|
||
| Accounts receivable, net (1) |
|
22,040 |
|
|
28,641 |
|
||
| Inventory |
|
16,779 |
|
|
15,718 |
|
||
| Prepaid expenses and other current assets |
|
2,403 |
|
|
3,588 |
|
||
| Total current assets |
|
49,043 |
|
|
58,660 |
|
||
| Property and equipment, net |
|
47,164 |
|
|
47,703 |
|
||
| Right-of-use lease assets, net |
|
11,469 |
|
|
12,565 |
|
||
| Intangible assets, net |
|
237,807 |
|
|
251,412 |
|
||
| Other non-current assets |
|
142 |
|
|
175 |
|
||
| Total assets | $ |
345,625 |
|
$ |
370,515 |
|
||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
9,401 |
|
$ |
7,982 |
|
||
| Accrued expenses |
|
7,691 |
|
|
8,176 |
|
||
| Current lease liability |
|
2,143 |
|
|
2,374 |
|
||
| Other current liabilities |
|
2,671 |
|
|
4,828 |
|
||
| Current portion of debt, net |
|
157,321 |
|
|
42,744 |
|
||
| Total current liabilities |
|
179,227 |
|
|
66,104 |
|
||
| Long-term debt, net |
|
- |
|
|
114,327 |
|
||
| Fathom earnout shares liability |
|
283 |
|
|
5,960 |
|
||
| Sponsor earnout shares liability |
|
49 |
|
|
930 |
|
||
| Warrant liability |
|
191 |
|
|
2,780 |
|
||
| Payable to related parties pursuant to the tax receivable agreement (includes $4,416 and $4,000 at fair value, respectively) |
|
25,800 |
|
|
25,360 |
|
||
| Noncurrent lease liability |
|
9,709 |
|
|
11,083 |
|
||
| Total liabilities |
|
215,259 |
|
|
226,544 |
|
||
| Commitments and Contingencies: | ||||||||
| Contingently Redeemable Preferred Equity: | ||||||||
| Redeemable non-controlling interest in Fathom OpCo |
|
76,144 |
|
|
92,207 |
|
||
| Shareholders' Equity: | ||||||||
| Class A common stock, $0.0001 par value; 15,000,000 shares authorized; issued and outstanding 3,507,084 and 3,290,438 shares as of September 30, 2023 and December 31, 2022, respectively (2) |
|
- |
|
|
7 |
|
||
| Class B common stock, $0.0001 par value; 9,000,000 shares authorized; issued and outstanding 3,327,379 and 3,507,653 shares as of September 30, 2023 and December 31, 2022, respectively (2) |
|
- |
|
|
7 |
|
||
| Class C common stock, $0.0001 par value; 500,000 shares authorized; 0 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively |
|
- |
|
|
- |
|
||
| Preferred stock, $0.0001 par value; 500,000 shares authorized; 0 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively |
|
- |
|
|
- |
|
||
| Additional paid-in-capital |
|
595,785 |
|
|
587,941 |
|
||
| Accumulated other comprehensive loss |
|
(107 |
) |
|
(107 |
) |
||
| Accumulated deficit |
|
(541,456 |
) |
|
(536,084 |
) |
||
| Shareholders’ equity attributable to Fathom Digital Manufacturing Corporation |
|
54,222 |
|
|
51,764 |
|
||
| Total Liabilities, Shareholders’ Equity, and Redeemable Non-Controlling Interest | $ |
345,625 |
|
$ |
370,515 |
|
||
| Consolidated Statements of Comprehensive Income (Loss) |
||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||||
| Revenue | $ |
31,458 |
|
$ |
40,210 |
|
$ |
100,939 |
|
$ |
122,737 |
|
||||||
| Cost of revenue (1) (2) |
|
23,194 |
|
|
25,144 |
|
|
70,196 |
|
|
80,126 |
|
||||||
| Gross profit |
|
8,264 |
|
|
15,066 |
|
|
30,743 |
|
|
42,611 |
|
||||||
| Operating expenses | ||||||||||||||||||
| Selling, general, and administrative |
|
8,117 |
|
|
11,960 |
|
|
28,335 |
|
|
38,341 |
|
||||||
| Depreciation and amortization |
|
4,627 |
|
|
4,627 |
|
|
13,845 |
|
|
13,595 |
|
||||||
| Restructuring |
|
718 |
|
|
996 |
|
|
2,774 |
|
|
996 |
|
||||||
| Goodwill impairment |
|
- |
|
|
1,066,564 |
|
|
- |
|
|
1,066,564 |
|
||||||
| Total operating expenses |
|
13,462 |
|
|
1,084,147 |
|
|
44,954 |
|
|
1,119,496 |
|
||||||
| Operating loss |
|
(5,198 |
) |
|
(1,069,081 |
) |
|
(14,211 |
) |
|
(1,076,885 |
) |
||||||
| Interest expense and other expense (income) | ||||||||||||||||||
| Interest expense |
|
3,993 |
|
|
2,406 |
|
|
11,422 |
|
|
5,738 |
|
||||||
| Other expense |
|
435 |
|
|
81 |
|
|
573 |
|
|
276 |
|
||||||
| Other income |
|
(1,049 |
) |
|
(25,548 |
) |
|
(9,152 |
) |
|
(88,771 |
) |
||||||
| Total interest expense and other expense (income), net |
|
3,379 |
|
|
(23,061 |
) |
|
2,843 |
|
|
(82,757 |
) |
||||||
| Net loss before income tax |
|
(8,577 |
) |
|
(1,046,020 |
) |
|
(17,054 |
) |
|
(994,128 |
) |
||||||
| Income tax expense (benefit) |
|
(9 |
) |
|
(7,050 |
) |
|
110 |
|
|
(8,435 |
) |
||||||
| Net loss |
|
(8,568 |
) |
|
(1,038,970 |
) |
|
(17,164 |
) |
|
(985,693 |
) |
||||||
| Net loss attributable to Fathom OpCo non-controlling interest (Note 14) |
|
(4,206 |
) |
|
(556,027 |
) |
|
(11,792 |
) |
|
(561,728 |
) |
||||||
| Net loss attributable to controlling interest |
|
(4,362 |
) |
|
(482,943 |
) |
|
(5,372 |
) |
|
(423,965 |
) |
||||||
| Comprehensive loss: | ||||||||||||||||||
| Loss from foreign currency translation adjustments |
|
- |
|
|
- |
|
|
- |
|
|
(107 |
) |
||||||
| Comprehensive loss, net of tax | $ |
(4,362 |
) |
$ |
(482,943 |
) |
$ |
(5,372 |
) |
$ |
(424,072 |
) |
||||||
| Earnings per Share: | ||||||||||||||||||
| Net loss per share attributable to shares of Class A common stock | ||||||||||||||||||
| Basic (4) | $ |
(1.24 |
) |
$ |
(0.05 |
) |
$ |
(1.56 |
) |
$ |
(153.20 |
) |
||||||
| Diluted (4) | $ |
(1.24 |
) |
$ |
(0.05 |
) |
$ |
(1.56 |
) |
$ |
(153.20 |
) |
||||||
| Weighted average Class A common shares outstanding | ||||||||||||||||||
| Basic (4) |
|
3,504,859 |
|
|
3,140,809 |
|
|
3,448,030 |
|
|
2,767,401 |
|
||||||
| Diluted (4) |
|
3,504,859 |
|
|
3,140,809 |
|
|
3,448,030 |
|
|
2,767,401 |
|
||||||
| Three Months 2023 Revenue by Product Line |
|||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||
| ($ in thousands) |
9/30/2023 |
% Revenue |
9/30/2022 |
% Revenue |
% Change |
| Revenue By Product Line |
|
|
|
|
|
| Additive manufacturing |
$2,692 |
8.6% |
$3,154 |
7.8% |
-14.6% |
| Injection molding |
$5,372 |
17.1% |
$5,984 |
14.9% |
-10.2% |
| CNC machining |
$12,486 |
39.7% |
$15,530 |
38.6% |
-19.6% |
| Precision sheet metal |
$9,542 |
30.3% |
$13,719 |
34.1% |
-30.4% |
| Other revenue |
$1,366 |
4.3% |
$1,823 |
4.5% |
25.1% |
| Total |
$31,458 |
100.0% |
$40,210 |
100.0% |
-21.8% |
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||||
| ($ in thousands) |
9/30/2023 |
% Revenue |
9/30/2022 |
% Revenue |
% Change |
| Revenue By Product Line |
|
|
|
|
|
| Additive manufacturing |
$9,567 |
9.5% |
$11,713 |
9.5% |
-18.3% |
| Injection molding |
$16,114 |
16.0% |
$19,892 |
16.2% |
-19.0% |
| CNC machining |
$39,956 |
39.6% |
$43,441 |
35.4% |
-8.0% |
| Precision sheet metal |
$30,089 |
29.8% |
$43,153 |
35.2% |
-30.3% |
| Other revenue |
$5,213 |
5.2% |
$4,538 |
3.7% |
14.9% |
| Total |
$100,939 |
100.0% |
$122,737 |
100.0% |
-17.8% |
|
|
|
|
|
|
|
| Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss) |
||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||
| Net loss | $ |
(8,568 |
) |
$ |
(1,038,970 |
) |
$ |
(17,164 |
) |
$ |
(985,694 |
) |
||||
| Stock compensation |
|
1,139 |
|
|
1,762 |
|
|
3,471 |
|
|
5,687 |
|
||||
| Inventory step-up amortization (1) |
|
- |
|
|
- |
|
|
- |
|
|
3,241 |
|
||||
| Goodwill impairment |
|
- |
|
|
1,066,564 |
|
|
- |
|
|
1,066,564 |
|
||||
| Restructuring expense |
|
718 |
|
|
996 |
|
|
2,774 |
|
|
996 |
|
||||
| Change in fair value of warrant liability (2) |
|
(409 |
) |
|
(7,400 |
) |
|
(2,589 |
) |
|
(28,000 |
) |
||||
| Change in fair value of earnout share liabilities (2) |
|
(613 |
) |
|
(18,080 |
) |
|
(6,558 |
) |
|
(59,980 |
) |
||||
| Change in fair value of TRA liability (2) |
|
392 |
|
|
- |
|
|
442 |
|
|
(200 |
) |
||||
| Integration, non-recurring, non-operating, cash, and non-cash costs (3) |
|
203 |
|
|
492 |
|
|
1,315 |
|
|
3,443 |
|
||||
| Adjusted net loss | $ |
(7,138 |
) |
$ |
5,364 |
|
$ |
(18,309 |
) |
$ |
6,057 |
|
||||
| Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA |
||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||
| Net loss | $ |
(8,568 |
) |
$ |
(1,038,970 |
) |
$ |
(17,164 |
) |
$ |
(985,694 |
) |
||||
| Depreciation and amortization |
|
6,248 |
|
|
6,335 |
|
|
18,792 |
|
|
18,539 |
|
||||
| Interest expense, net |
|
3,993 |
|
|
2,406 |
|
|
11,422 |
|
|
5,738 |
|
||||
| Income tax expense (benefit) |
|
(9 |
) |
|
(7,050 |
) |
|
110 |
|
|
(8,434 |
) |
||||
| Stock compensation |
|
1,139 |
|
|
1,762 |
|
|
3,471 |
|
|
5,687 |
|
||||
| Goodwill impairment |
|
- |
|
|
1,066,564 |
|
|
- |
|
|
1,066,564 |
|
||||
| Inventory step-up amortization (1) |
|
- |
|
|
- |
|
|
- |
|
|
3,241 |
|
||||
| Restructuring expense |
|
718 |
|
|
996 |
|
|
2,774 |
|
|
996 |
|
||||
| Change in fair value of warrant liability (2) |
|
(409 |
) |
|
(7,400 |
) |
|
(2,589 |
) |
|
(28,000 |
) |
||||
| Change in fair value of earnout share liabilities (2) |
|
(613 |
) |
|
(18,080 |
) |
|
(6,558 |
) |
|
(59,980 |
) |
||||
| Change in fair value of TRA (2) |
|
392 |
|
|
- |
|
|
442 |
|
|
(200 |
) |
||||
| Integration, non-recurring, non-operating, cash, and non-cash costs (3) |
|
203 |
|
|
492 |
|
|
1,315 |
|
|
3,443 |
|
||||
| Adjusted EBITDA | $ |
3,094 |
|
$ |
7,055 |
|
$ |
12,015 |
|
$ |
21,900 |
|
||||
