Slide 1: Second Quarter 2021 Financial Results
August 10, 2021 Second Quarter 2021 Financial Results ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President and Chief Executive Officer Jagtar Narula Executive VP and Chief Financial Officer Andrew Johnson Executive VP and Chief Legal Officer John Nypaver, Jr. To participate via phone, VP, Treasurer and Investor Relations please dial: 1-201-689-8345 2
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this release 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 involve known and unknown risks, uncertainti
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 5: Transformation is Yielding Results
Transformation is Yielding Results Strategic Purpose We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products. Strategic Reorganize Restructure Divest/Invest Purpose • Returned to growth and profitability in Q4 • Q2 res
Slide 6: Transition to Growth Mode
Transition to Growth Mode Strategic Reorganize Restructure Divest/Invest Purpose GROWTH • Divesting On-Demand and Simbionix for expected proceeds of $387 million • Post-close, will have approximately $500 million in cash, no debt, and continued positive operating cash flow and profitability • Now fo
Slide 7: Invest to Drive Organic Growth
Invest to Drive Organic Growth People and Infrastructure Hired Dr. David Leigh to new Expanding Colorado facility to Expanding South Carolina facility executive leadership role, Chief address rising demand for new including Customer Innovation Technology Officer for Additive healthcare and industria
Slide 8: Invest to Drive Organic Growth
Invest to Drive Organic Growth Materials Accura® AMX™ Rigid Black is 3D Systems’ latest customer- centric innovation – inspired in part by the advanced production application requirements of TOYOTA Gazoo Racing (TGR) • TGR achieved 90% time savings and 60% cost savings in comparison to the previous
Slide 9: Expand Investment in Regenerative Medicine
Expand Investment in Regenerative Medicine Entered into co-development agreement with CollPlant to deliver bioprinted solutions for improved breast reconstruction treatments • 3D Systems and CollPlant – with combined expertise in 3D printing, healthcare, bioprinting and bioinks – will develop 3D bio
Slide 10: Jagtar Narula
Jagtar Narula Executive VP & Chief Financial Officer 10 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 11: Q2 Summary
Q2 Summary QUARTER-ENDED JUNE 30, (IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 2021 2020 2019 HIGHLIGHTS REVENUE $162.6 $112.8 $158.6 Q2 Revenue increased 11.4% excluding divested OPERATING LOSS ($10.1) ($33.9) ($19.2) business vs. Q2:19 NET INCOME (LOSS) ($9.6) ($38.0) ($23.9) INCOME (LOSS) PER SHARE -
Slide 12: Revenue by Market
Revenue by Market $ in millions Healthcare Revenue Q2 QoQ Industrial Revenue Q2 QoQ $82.8 $79.7 +14.2% +8.3% $72.5 $73.6 Q1 2021 Q2 2021 Q1 2021 Q2 2021 12 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 13: Gross Profit Margin
Gross Profit Margin • Quarter-over-Quarter margin declined slightly due to non-recurring write-offs of equipment and inventory • Expect full-year non-GAAP GPM in range of 40% to 44% 50% GAAP GPM 50% Non-GAAP GPM 45% 44% 45% 44% 43% 43% 43% 42% 42% 42% 41% 40% 40% 35% 35% 31% 30% 30% Q2:20 Q3:20 Q4:2
Slide 14: Operating Expenses
Operating Expenses Non-GAAP operating expenses decreased 3.3% compared to the prior year and increased 7.7% compared to first quarter 2021 as we invested in our operational infrastructure which will allow our people and systems to better absorb strategic growth opportunities GAAP Non-GAAP $126.2 $12
Slide 15: Adjusted EBITDA Margin
Adjusted EBITDA Margin Defined as non-GAAP Operating Income plus Depreciation 15.0% 13.6% 13.3% 12.4% 10.0% 5.3% 5.0% 0.0% -3.2% -5.0% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 See appendix for a reconciliation of Non-GAAP Operating Income and Adjusted EBITDA. 15 ©2021 3D Systems, Inc. | All Rights Re
Slide 16: Strong Balance Sheet and Cash Generation
Strong Balance Sheet and Cash Generation • Generated $13.5 million of cash from operations • $131.8 million of cash and cash equivalents • Full availability on $100 million credit facility • Upon completion of our announced divestitures, we expect to have approximately $500 million dollars of cash 1
Slide 17: Positioned for Growth
Positioned for Growth • Divestitures expected to close in Q3 • Divested business generated ~$25 million of revenue per quarter, and had non-GAAP contribution margin of $5 to $6 million per quarter • Post-divestiture, we will be the leading vendor with a singular focus on additive manufacturing • Sig
Slide 18: Investor Day Update
INVESTOR DAY UPDATE ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 19: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 19 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 20: Summary
Summary • Completed our plan to exit non-core businesses, leaving us in a strong position, with a cash balance of approximately $500 million dollars and no debt • Focusing on growth, supported by our strong balance sheet, profitably, and cash generation • Growth will come organically and via continu
Slide 21: Q&A Session
Q&A Session 1-201-689-8345 21 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 22: Thank You
Thank You Find out more at: www.3dsystems.com 22 ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 23: Appendix
Appendix ©2021 3D Systems, Inc. | All Rights Reserved.
Slide 24: Presentation of Information
Presentation of Information 3D Systems reports is financial results in accordance with GAAP. To facilitate a better understanding of the impact that strategic acquisitions, non-recurring charges and certain non-cash expenses had on its financial results, management reviews certain non-GAAP measures,
Slide 25: Non-GAAP Reconciliation - Operating Income (Loss)
Non-GAAP Reconciliation - Operating Income (Loss) (Unaudited) Second Quarter and Six-Month Non-GAAP Operating Income (Loss) Quarter Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2021 2020 2021 2020 GAAP Operating income (loss) $ (10.1) $ (33.9) $ (12.0) $ (52.1) Ad
Slide 26: Non-GAAP Reconciliation - Net Income (Loss)
Non-GAAP Reconciliation - Net Income (Loss) (Unaudited) Second Quarter and Six-Month Non-GAAP Net Income (Loss) Quarter Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 GAAP Net income (loss) $ (9.6) $ (38.0) $ 35.6 $ (56.9) Adjustments: Amortization, stock-based compensation & other 22.
Slide 27: Non-GAAP Reconciliation – EPS
Non-GAAP Reconciliation – EPS (Unaudited) Second Quarter and Six-Month Net Income (Loss) per Share Quarter Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 GAAP Net income (loss) per share - basic $ (0.08) $ (0.33) $ 0.29 $ (0.49) GAAP Net income (loss) per share - diluted (0.08) (0.33)
Slide 28: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM (Unaudited) Quarterly 2020 and 2021 Non-GAAP Gross Profit & Margin 2021 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 March 31 June 30 GAAP Gross Profit $ 64.2 $ 69.0 $ 57.1 $ 35.2 GAAP Gross Profit Margin 44.0 % 42.4 % 42.1 % 31.2 % Adjustments
Slide 29: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense (Unaudited) Quarterly 2020 and 2021 Non-GAAP Operating Expenses 2021 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 March 31 June 30 GAAP SG&A Expenses $ 49.6 $ 61.5 $ 56.1 $ 52.0 GAAP R&D Expenses 16.6 17.6 19.2 17.0 GAAP Operating Expens
Slide 30: Revenue Adjusted for Divestitures
Revenue Adjusted for Divestitures (Unaudited) Quarterly 2019 and 2020 2019 2020 Quarter Ended Quarter Ended March 31 June 30 September 30 December 31 March 31 June 30 September 30 December 31 Revenue: Healthcare $ 56.7 $ 63.2 $ 61.4 $ 63.3 $ 52.3 $ 49.1 $ 59.5 $ 85.5 Industrial 96.6 95.4 94.9 104.9