Proto Labs, Inc. · NYSE:PRLB
Proto Labs — Q3 2019 Earnings Presentation
15 slides from Proto Labs's earnings presentation, Oct 24, 2019
Slide 1: Earnings Presentation Q3 2019
Earnings Presentation Q3 2019 October 24, 2019
Slide 2: Safe Harbor
SAFE HARBOR These slides and accompanying oral presentation contain forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, per
Slide 3: Financial Highlights | Q3
FINANCIAL HIGHLIGHTS | Q3 Revenue ($M) 2% • Revenue of $117.5 million, up 2% YoY • Constant currency growth of 3% $115.4 $117.5 • Record quarterly revenue in 3DP • Decline in Rapid services 2018 2019 Non-GAAP EPS* • Non-GAAP EPS of $0.76, down $(0.10) YoY (12)% • Gross Margin compression (legacy and
Slide 4: Regional Revenue | Q3
REGIONAL REVENUE | Q3 YoY Revenue % by Region ($M) Q3 19 Q3 18 CHANGE* Q3 2019 Americas $92.9 $90.7 2% 3% 18% Europe $20.7 $21.3 2% Japan $3.8 $3.4 7% 79% TOTAL $117.5 $115.4 3% Americas Europe Japan *YoY CHANGE reflected in constant currency See reconciliation in Appendix.
Slide 5: Revenue by Service | Q3
REVENUE BY SERVICE | Q3 Injection Molding - Revenue CNC Machining - Revenue ($M) 3% ($M) (2)% $53.7 $55.2 $40.8 $40.2 2018 2019 2018 2019 3D Printing - Revenue Sheet Metal - Revenue ($M) ($M) 15% (18)% $13.8 $15.9 $6.5 $5.3 2018 2019 2018 2019
Slide 6: Financial Results | Q3
FINANCIAL RESULTS | Q3 $M, EXCEPT SEQ. YoY PER SHARE AMOUNTS Q3 19 Q2 19 CHANGE Q3 18 CHANGE Revenue $117.5 $115.9 1% $115.4 2% Gross Margin 50.8% 52.0% (120) bps 54.1% (330) bps Non-GAAP 21.6% 20.6% 90 bps 24.9% (340) bps Operating Margin* Non-GAAP $0.76 $0.71 7% $0.86 (12)% Earnings Per Share* *No
Slide 7: QoQ GAAP to Non-GAAP P&L | Q3
QoQ GAAP to Non-GAAP P&L | Q3 Three Months Ended September, 2019 Three Months Ended June 30, 2019 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $117,455 - $117,455 $115,932 - $115,932 Cost of Revenue 57,839 (872) 56,967 55,696 (797) 54,899 Gross Profit $59,616 $872 $60
Slide 8: YoY GAAP to Non-GAAP P&L | Q3
YoY GAAP to Non-GAAP P&L | Q3 Three Months Ended September, 2019 Three Months Ended September 30, 2018 $ in thousands GAAP Adjustments Non-GAAP* GAAP Adjustments Non-GAAP* Revenue $117,455 - $117,455 $115,430 - $115,430 Cost of Revenue 57,839 (872) 56,967 53,027 (446) 52,581 Gross Profit $59,616 $87
Slide 9: Cash Flow and Balance Sheet | Q3
CASH FLOW and BALANCE SHEET | Q3 $M Q3 19 Q2 19 Q3 18 Operating Cash Flow $28.9 $36.9 $25.6 Capital Expenditures $12.0 $21.4 $18.7 Share Repurchases $12.1 $4.1 $0 Cash and Investments* $155.0 $150.7 $153.4 Debt* $0 $0 $0 *Balance Sheet items as of the end of the period.
Slide 10: Outlook | Q4 2019
OUTLOOK | Q4 2019 Q4 Revenue Details Q4 Revenue • Holiday season impact challenging to predict Revenue $109M - $115M • Foreign currency not expected to have a significant impact % Growth YoY (3)% - 2% Q4 Non-GAAP EPS Details Q4 Non-GAAP EPS* • Tax rate of 21% - 22% Non-GAAP EPS* $0.59 - $0.67 • Stoc
Slide 11: Thank You
THANK YOU Investor Relations: Dan Schumacher daniel.schumacher@protolabs.com
Slide 12: Appendix
Appendix
Slide 13: GAAP to Non-GAAP Reconciliation | EPS
GAAP to Non-GAAP Reconciliation | EPS ($ in thousands; Three Months Ended Three Months Ended/Ending except per share figures) Septem ber 30, Decem ber 30, Septem ber 30, Decem ber 30, 2018 2018 2019 2019 Revenue $ 115,430 $ 112,769 $ 117,455 $109,000 - $115,000 GAAP operating income as a % of revenu
Slide 14: GAAP to Non-GAAP Reconciliation | Revenue
GAAP to Non-GAAP Reconciliation | Revenue ($ in thousands) Three Months Ended Three Months Ended Septem ber 30, % Change Septem ber 30, 2019 2018 % Constant 2 3 GAAP Adjustm ents 1 Non-GAAP GAAP Change Currencies Revenues United States $ 92,916 $ 92,916 $ 90,732 2.4% 2.4% Europe 20,721 1,001 21,722
Slide 15: GAAP to Non-GAAP Reconciliation | EBITDA
GAAP to Non-GAAP Reconciliation | EBITDA ($ in thousands) Three Months Ended Three Months Ended Septem ber 30, June 30, 2019 2018 2019 2018 GAAP net income $ 16,792 $ 20,937 $ 16,166 $ 18,314 Amortization expense 859 808 863 799 Depreciation expense 6,820 5,963 6,678 5,691 Interest income, net (489)