3D Systems Corporation · NYSE:DDD
3D Systems — Q4 2009 Earnings Presentation
26 slides from 3D Systems's earnings presentation, Feb 25, 2010
Slide 1: Conference Call and Webcast: Fourth Quarter 2009 Results
Conference Call and Webcast NASDAQ: TDSC www.3dsystems.com Discussion of Fourth Quarter 2009 Results February 25, 2010
Slide 2: Participants
Participants Amanda Molbert Coordinator, Investor Relations Abe Reichental President & Chief Executive Officer Damon Gregoire Vice President & Chief Financial Officer Bob Grace Vice President & General Counsel 2
Slide 3: Welcome Webcast Viewers
Welcome Webcast Viewers To listen to the conference via phone and to ask questions during our Q&A session, please dial: 1-888-336-3485 in the United States 1-706-634-0653 from outside the United States Confirmation Code: 52985568 3
Slide 4: 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 may involve known and unknown risks, un
Slide 5: Operating Results
Operating Results Abe Reichental President & CEO 5
Slide 6: Fourth Quarter and Full Year 2009 Overview
Fourth Quarter and Full Year 2009 Overview We are pleased with our overall fourth quarter results, particularly given the continued challenging economic environment. Improved business conditions resulted in sequential revenue growth from all revenue buckets. Materials sales enjoyed continued sequent
Slide 7: Financial Review
Financial Review Damon Gregoire Vice President & CFO 7
Slide 8: Fourth Quarter 2009 Operating Results
Fourth Quarter 2009 Operating Results ($ Millions except per share amounts) Fourth Quarter % Change Favorable Operating Results 2009 2008 (Unfavorable) Revenue $36.4 $34.9 4% Gross Profit $16.1 $15.2 6% % of Revenue 44% 44% Operating Expenses $11.7 $13.9 16 % % of Revenue 32% 40% Net Income $3.6 $1.
Slide 9: Full Year 2009 Operating Results
Full Year 2009 Operating Results ($ Millions except per share amounts) Full Year % Change Favorable Operating Results 2009 2008 (Unfavorable) Revenue $112.8 $138.9 (19%) Gross Profit $49.7 $55.6 (11%) % of Revenue 44% 40% Operating Expenses $46.7 $61.1 24% % of Revenue 41% 44% Net Income (Loss) $1.1
Slide 10: Factors Shaping Fourth Quarter 2009 Results
Factors Shaping Fourth Quarter 2009 Results Sequential revenue growth from all revenue buckets. Systems revenue increased by $6.1 million. 3-D Printers revenue increased by $0.5 million. Materials sales grew by $1.7 million. Service revenue increased by $0.9 million Q4-09 vs. Q3-09 Revenue
Slide 11: Factors Shaping Fourth Quarter 2009 Results
Factors Shaping Fourth Quarter 2009 Results Gross profit margin and operating expenses both improved compared to the fourth quarter of 2008, which contributed to net earnings. Net income of $3.6 million included $2.0 million of non-cash expenses. Earnings per share of 16 cents included the 1 c
Slide 12: Q4 2009 Revenue Mix By Category and Region
Q4 2009 Revenue Mix By Category and Region 40 $36.4 $36.4 $34.9 $34.9 35 24% Asia Pacific 13% Services 20% 24% 30 25 Millions Materials Europe 47% 44% 20 41% 42% 15 10 Systems 36% 40% & Other 35% 34% North America 5 0 2009 2008 2009 2008 12
Slide 13: Fourth Quarter & Full Year 2009 Gross Profit and Margin
Fourth Quarter & Full Year 2009 Gross Profit and Margin ($ Millions) Fourth Quarter 2009 Fourth Quarter 2008 Yr-Yr% $ Millions % Revenue $ Millions % Revenue $ Margin Systems $ 4.7 36% $ 4.3 37% 8% (2%) Materials $ 8.5 57% $ 8.8 59% (3%) (3%) Services $ 2.9 34% $ 2.1 26% 37% 32% TOTAL $ 16.1 44% $ 1
Slide 14: Fourth Quarter 2009 Operating Expenses
Fourth Quarter 2009 Operating Expenses ($ Millions) Yr-Yr % F a v o ra ble 2009 2008 ( Unf a v o ra ble ) SG&A $ 9.2 $ 9.8 7% Key Reductions: Labor and Consultant Costs - $0.6 Professional Fees - $0.5 Bad Debt Expense - $0.1 Key Increase: Incentive Compensation - $1.1 R&D $ 2.5 $ 4.1 39% Total Opera
Slide 15: Full Year 2009 Operating Expenses
Full Year 2009 Operating Expenses ($ Millions) Yr-Yr % F a v o ra ble 2009 2008 ( Unf a v o ra ble ) SG&A $ 35.5 $ 45.9 23% Key Reductions: Labor and Consultant Costs - $4.1 Professional Fees - $2.1 Occupancy Costs - $1.2 Travel Expenses - $0.6 Marketing Expenses - $0.7 Key Increases: Litigation Cos
Slide 16: Working Capital Management Days
Working Capital Management 160 140 132 125 122 121 120 102 101 Days 100 100 93 83 80 73 70 67 68 66 63 63 60 63 60 60 64 40 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Days Sales Outstanding Days Inventory On Hand 16
Slide 17: Working Capital Management
Working Capital Management ($000’s) Inventory as of 12/31/08 $ 21,018 Q1 2009 Decrease (1,123) Q2 2009 Decrease (787) Q3 2009 Increase 1,176 Q4 2009 Decrease (1,906) Inventory at 12/31/09 $ 18,378 Cash as of 12/31/08 $ 22,164 Q1 2009 Increase 1,253 Q2 2009 Increase 612 Q3 2009 Decrease (48) Q4 2009
Slide 18: Progress Report
Progress Report Abe Reichental President & CEO 18
Slide 19: Recent Developments
Recent Developments We continued our new product development activities and launched the ProJet™ 5000. We further expanded our 3Dproparts™ services by: Acquiring Acu-Cast Technologies Acquiring AdvaTech Launching 3Dproparts™ in Europe and Acquiring Moeller Design 19
Slide 20: Growth Drivers
Growth Drivers We entered the first quarter of 2010 with a strong sales funnel. We remain pleased with the progress we are making on V-Flash® sales. We expect sales of our expanding lineup of 3-D printers to continue to grow, helped by our new ProJet™ 5000. We are pleased with the progress w
Slide 21: Revenue Outlook
Revenue Outlook While economic conditions remain uncertain, we are optimistic about our ability to continue to make progress. Given our strengthened portfolio of products and services, we expect continued revenue growth during 2010. We intend to grow our 3Dproparts™ service both internally and
Slide 22: Gross Profit and Operating Expenses Outlook
Gross Profit and Operating Expenses Outlook We expect our gross profit margin to remain stable despite Potential adverse systems mix in favor of lower margin printers Continued negative 2-4 percentage point drag from V-Flash® through the first half of 2010. We expect SG&A to be in the range
Slide 23: Universal Shelf Filing
Universal Shelf Filing Yesterday we filed with the SEC a universal shelf registration statement providing for the offer and sale from time to time of up to $75 million of securities, including equity, debt and other securities as described in the registration statement. We believe that filing a
Slide 24: Bottom Line
Bottom Line Our first half 2010 sales funnel is robust. Our three pillars of business: Parts, Printers and Production Systems are expected to drive demand for our products by OEMs. Our business model is built around significant, recurring revenue components that generate improved contribution
Slide 25: Question and Answer Session
Question and Answer Session Out of respect for other conference call participants, please ask one question and then return to the queue to ask additional questions. Please direct all questions through the teleconference portion of this call. To ask questions: • Phone: 1-888-336-3485 • International:
Slide 26: Thank You For Participating
Thank You For Participating A replay of this webcast will be available approximately three hours after the call on the 3D Systems Investor Relations Web site, www.3dsystems.com/ir. Check out our new 3Dproparts™ website at www.3Dproparts.com 26