3D Systems Corporation · NYSE:DDD
3D Systems — Q3 2016 Earnings Presentation
21 slides from 3D Systems's earnings presentation, Nov 3, 2016
Slide 1: Third Quarter and Nine Months 2016 Conference Call & Webcast
Third Quarter and Nine Months 2016 Conference Call & Webcast November 3, 2016
Slide 2: Welcome and Participants
Welcome and Participants • Vyomesh Joshi – President & Chief Executive Officer • John McMullen To participate via phone, – Executive Vice President & Chief Financial Officer please dial: • Andy Johnson US: 1-800-407-8291 – Executive Vice President & Chief Legal Officer Outside the US: 1-201-689-8345
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements 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, o
Slide 4: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 5: Differentiation
Differentiation Ecosystem Enables Workflow 5
Slide 6: Key Verticals
Key Verticals ~T ~~ AUTOMOTIVE . DURABLE , = F GOODS
Slide 7: Prioritizing Portfolio and Resources
Prioritizing Portfolio and Resources • Exiting: – CubePro – CubeJet – ProX 400 – Project Atlas (continuous high speed jetting) • Redirecting resources to advance and accelerate next- generation capabilities 7
Slide 8: John McMullen
John McMullen Executive Vice President & Chief Financial Officer
Slide 9: Operating Results (GAAP)
Operating Results GAAP Third Quarter Nine Months Y/Y Favorable Y/Y Favorable ($ in millions, except per share) 2016 2015 (Unfavorable) 2016 2015 (Unfavorable) Revenue $ 156.4 $ 151.6 3% $ 467.0 $ 482.8 (3%) Gross Profit $ 68.9 $ 71.0 (3%) $ 226.9 $ 231.6 (2%) Gross Profit Margin 44.1% 46.9% (280 bps
Slide 10: Operating Results (Non-GAAP)
Operating Results Non-GAAP Third Quarter Nine Months Y/Y Favorable Y/Y Favorable ($ in millions, except per share) 2016 2015 (Unfavorable) 2016 2015 (Unfavorable) Revenue $ 156.4 $ 151.6 3% $ 467.0 $ 482.8 (3%) Gross Profit $ 79.7 $ 71.1 12% $ 237.8 $ 231.9 3% Gross Profit Margin 51.0% 46.9% 410 bps
Slide 11: Reconciliation of GAAP to Non-GAAP – Q3
Reconciliation of GAAP to Non-GAAP – Q3 Q uarter Ended September 30, 2016 Q uarter Ended September 30, 2015 Adjustments Adjustments Amortization Amortization and Stock- Legal and and Stock- Legal and Based Acquisition- Portfolio Based Acquisition- Portfolio (in millions, except per share amounts) GA
Slide 12: Reconciliation of GAAP to Non-GAAP – 9 Months
Reconciliation of GAAP to Non-GAAP – 9 Months Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Adjustments Adjustments Amortization Amortization and Stock- Legal and and Stock- Legal and Based Acquisition- Portfolio Based Acquisition- Portfolio (in millions, except per share
Slide 13: Revenue Drivers
Revenue Drivers Compared to Q3 2015: $ in millions • Healthcare solutions 23% • Materials 9% • Software 11% • Printers 6% • On demand parts 16% 13
Slide 14: Gross Profit & Margin
Gross Profit & Margin • Charges related to portfolio prioritization negatively impacted Q4 2015 and Q3 2016 gross profit and margin • Excluding these non-recurring charges, Q3 2016 non-GAAP GPM was 51.0% $ in millions 14
Slide 15: Operating Expenses
Operating Expenses $ in millions 15
Slide 16: Cash and Balance Sheet
Cash and Balance Sheet • Generated $7.2 million of cash from operations in Q3 2016 and $38.2 million in the first nine months of 2016 • Cash of $179.4 million at September 30, 2016, an increase of $23.7 million year to date • Inventory decreased sequentially to $113.7 with plans for additional reduc
Slide 17: Operating Framework
Operating Framework GROWTH PROCESS OPERATIONAL EXCELLENCE CAPITAL
Slide 18: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 19: Making 3D Production Real
Making 3D Production Real Use-case by use-case, we are focused on helping customers overcome traditional barriers to 3D production: • Productivity • Durability • Repeatability • Total Cost of Operations (TCO) 19
Slide 20: Q&A Session
Q&A Session In the USA: 1-877-407-8291 Outside the USA: 1-201-689-8345
Slide 21: Thank You
ZN 3D SYSTEMS Thank You