3d Systems Corporation · NYSE:DDD
3d Systems — Q3 2020 Earnings Presentation
26 slides from 3d Systems's earnings presentation, Nov 6, 2020
Slide 1: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results November 6, 2020 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President and Chief Executive Officer Jagtar Narula To participate via phone, Chief Financial Officer please dial: Andrew Johnson 1-201-689-8345 Executive Vice President and Chief Legal Officer Melanie Solomon Investor Relations 2
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, ob
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4
Slide 5: 3D Systems' Purpose Statement
3D Systems' Purpose Statement We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products. 5
Slide 6: Transformation Framework
Transformation Framework Strategic Divest/Invest Purpose We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products.
Slide 7: Reorganize
Reorganize Focus on Key Applications within Healthcare and Industrial Markets Management Team Complete 7
Slide 8: Restructure
Restructure On Track to Achieve $60M Run-Rate Cost Savings by End of 2020 Key Operating Principles Guide Our Company 8
Slide 9: Divest/Invest
Divest/Invest Divest Non-Core Assets and Invest for Growth Agreement Signed to Divest Cimatron and GibbsCAM Subtractive Manufacturing Software Businesses 9
Slide 10: Healthcare Case Study
Healthcare Case Study 3D Systems will assist the VA with establishing additive manufacturing production capabilities for medical devices to improve treatment for U.S. Veteran patients 10
Slide 11: Applications Approach
Applications Approach 3D Systems enables additive manufacturing applications through its unique capabilities and advancements in hardware, software and materials technology 11
Slide 12: Jagtar Narula
Jagtar Narula Chief Financial Officer 12
Slide 13: Third Quarter Summary
Third Quarter Summary Third Quarter (in millions, except per share amounts) 2020 2019 Revenue $ 135.1 $ 155.3 • Revenue decrease 13% YoY Operating Loss (67.6) (11.9) • Revenue increase 21% vs Q2 2020 Net Loss (72.9) (16.8) • $11.9M of restructuring related charges Loss Per Share $ (0.61) $ (0.15) •
Slide 14: Revenue by Market
Revenue by Market $ in millions 19.7% 21.3% 6.1% (23.8)% 14
Slide 15: Gross Profit Margin
Gross Profit Margin • Q3 GAAP gross profit margin was 43.4% • Q3 non-GAAP gross profit margin was 43.5% 15 See appendix for a reconciliation of non-GAAP gross profit.
Slide 16: Operating Expenses
Operating Expenses • GAAP operating expenses increased 59.4% due to one-time costs, including $11.9 million of restructuring costs • Non-GAAP operating expenses decreased 15.2% compared to the third quarter of the prior year as cost actions are implemented 16 See appendix for a reconciliation of non
Slide 17: Cash and Liquidity at September 30, 2020
Cash and Liquidity at September 30, 2020 • $75 million of cash and cash equivalents • Term Loan of $22 million • $100 million undrawn revolver with $31 million of availability • Continue to focus on reducing inventories • ATM Update ◦ Not planning to issue additional shares under ATM in Q4 ◦ Followi
Slide 18: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 18
Slide 19: Summary
Summary Our Transformation Journey: • Reorganization complete • Restructuring continues, on track to achieve $60M run-rate cost savings by end of 2020 • Strengthening balance sheet • Sales improving and expect continued strength of the business moving forward 19
Slide 20: Q&A Session
Q&A Session 1-201-689-8345 20
Slide 21: Thank You
Thank You Find out more at: www.3dsystems.com 2 21 1 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 22: Appendix
Appendix ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 23: Non-GAAP Reconciliation - Operating Loss
Non-GAAP Reconciliation - Operating Loss Third Quarter Non-GAAP Operating Loss Quarter Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Operating income (loss) $ (67.6) $ (11.9) $ (119.7) $ (52.4) Adjustments: Amortization, stock-ba
Slide 24: Non-GAAP Reconciliation - EPS
Non-GAAP Reconciliation - EPS Third Quarter Non-GAAP Earnings (Loss) per Share Quarter Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Net loss $ (72.9) $ (16.8) $ (129.8) $ (65.2) Adjustments: Amortization, stock-based compensatio
Slide 25: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM Quarterly 2019 and 2020 Non-GAAP Gross Profit & Margin 2019 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 September 30 December 31 March 31 June 30 September 30 GAAP Gross Profit $ 65.7 $ 73.3 $ 67.3 $ 71.8 $ 57.1 $ 35.2 $ 58.6 GAAP Gross Profit
Slide 26: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense Quarterly 2019 and 2020 Non-GAAP Operating Expenses 2019 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 September 30 December 31 March 31 June 30 September 30 GAAP SG&A Expenses $ 65.1 $ 71.7 $ 58.3 $ 59.3 $ 56.1 $ 52.0 $ 59.1 GAAP R&D Exp