3d Systems Corporation · NYSE:DDD
3d Systems — Q3 2015 Earnings Presentation
22 slides from 3d Systems's earnings presentation, 2015
Slide 1: Third Quarter & Nine Months 2015 Conference Call and Webcast
THIRD QUARTER & NINE MONTHS 2015 CONFERENCE CALL AND WEBCAST WWW.3DSYSTEMS.COM|NYSE:DDD
Slide 2: Participants
PARTICIPANTS Wally Loewenbaum • Chairman of the Board of Directors Chuck Hull • Executive Vice President; Chief Technology Officer Andy Johnson • Interim President & CEO; Chief Legal Officer Dave Styka • Executive Vice President; Chief Financial Officer Mark Wright • Executive Vice President; Chief
Slide 3: Welcome Webcast Viewers
WELCOME WEBCAST VIEWERS To listen to the conference via phone • 1-877-407-8291 in the United States and to ask questions during our Q&A session, please dial: • 1-201-689-8345 from outside the United States 3
Slide 4: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developm
Slide 5: Company Update
COMPANY UPDATE Andy Johnson Interim President & CEO and Chief Legal Officer
Slide 6: Executive Management Committee
EXECUTIVE MANAGEMENT COMMITTEE Chuck Hull Andy Johnson Dave Styka Mark Wright We established an Executive Management Committee to provide ongoing leadership and to support companywide operations and strategic initiatives. 6
Slide 7: Third Quarter 2015 Overview
THIRD QUARTER 2015 OVERVIEW Revenue decreased 9% to $151.6 million, or 3% on a constant currency basis Gross profit margin decreased 90 basis points to 46.9% Sequentially, operating expenses remained flat at $105.7 million and cash operating expenses decreased 8% GAAP loss of $0.29 per share and non
Slide 8: Operations Update
OPERATIONS UPDATE Mark Wright Executive Vice President and Chief Operating Officer
Slide 9: 3D Printers
3D PRINTERS We believe that residual reputational damage as a result of our earlier printer performance issues impeded our sales efforts in the quarter, but we are intensely focused and fully committed to achieving category leading printer performance and quality. During the third quarter, we contin
Slide 10: Partners
PARTNERS We continued to build out our Partner Xcel program and expanded and refined lead generation, forecasting, training and service tools to improve productivity and profitability for us and our partners. We expanded our partnerships with Phillips Corporation, U.S. Army Research Lab and Pennsylv
Slide 11: Productivity
PRODUCTIVITY Charlie Grace joined as Chief Revenue Officer, Professional Products, leading all of our professional and production 3D printer related revenue generation activities worldwide. Proven industry sales leader, Michele Marchesan, is spearheading our efforts to build an effective partner cha
Slide 12: Financial Review
FINANCIAL REVIEW Dave Styka Executive Vice President and Chief Financial Officer
Slide 13: GAAP Operating Results
GAAP OPERATING RESULTS $ in millions, except earnings per share Third Quarter Nine Months 2015 2014 2015 2014 Revenue $ 151.6 $ 166.9 $ 482.8 $ 466.2 Gross Profit $ 71.0 $ 79.8 $ 231.6 $ 227.7 Gross Profit Margin 46.9% 47.8% 48.0% 48.8% Operating Expenses $ 105.7 $ 71.6 $ 307.7 $ 205.6 % of Revenue
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Third Quarter Nine Months ($ in millions, except per share amounts) 2015 2014 2015 2014 GAAP net income (loss) attributable to 3D Systems ($ 32.2) $ 3.1 ($ 59.1) $ 10.1 Cost of sales adjustments: Amortization of intangibles $ 0.1 $ 0.1 $ 0.2 $ 0.2 Operating expense adjustment
Slide 15: Revenue Highlights
REVENUE HIGHLIGHTS $ in millions Quarter Nine Months $187.4 $166.9 $170.5 $160.7 $466.2 $482.8 $151.6 $358.6 Third Quarter Nine Months Design & Manufacturing revenue down 9% YOY Design & Manufacturing revenue up 2% YOY Consumer revenue down 14% YOY Consumer revenue up 23% YOY 15
Slide 16: Revenue by Category & Geography
REVENUE BY CATEGORY & GEOGRAPHY $ in millions Category Geography • Products revenue decreased 27% to $52.9 million • Americas revenue decreased 11% to $80.7 million • Materials revenue decreased 11% to $34.8 million • EMEA revenue decreased 5% to $45.0 million • Service revenue increased 16% to $63.
Slide 17: Gross Profit Margin
GROSS PROFIT MARGIN $ in millions Third Quarter 2015 2014 Yr-Yr % Change Gross Gross Profit Gross Profit Gross Profit Category Gross Profit Margin Gross Profit Margin Profit Margin Products $ 12.8 24.2% $ 25.8 35.3% (50.2%) (31.4%) Materials $ 26.5 75.9% $ 28.5 73.1% (7.3%) 3.8% Services $ 31.8 49.8
Slide 18: Operating Expenses
$ in millions OPERATING EXPENSES Third Quarter GAAP Operating Expenses Non-GAAP Operating Expenses YOY Change YOY Change Favorable/ Favorable/ Category 2015 2014 (Unfavorable) Q3 2015 Q3 2014 (Unfavorable) R&D $ 22.5 $ 17.9 (25.3%) $ 22.5 $ 17.9 (25.3%) % of Revenue 15% 11% 15% 11% SG&A $ 83.2 $ 53.
Slide 19: Working Capital
WORKING CAPITAL $ in millions % Change Favorable/ September 2015 December 2014 (Unfavorable) Cash $ 157.5 $ 284.9 (44.7%) Accounts Receivable $ 134.5 $ 168.4 20.1% Inventory $ 138.2 $ 96.6 (43.0%) Accounts Payable $ 48.5 $ 64.4 24.7% Working Capital $ 339.3 $ 432.2 (21.5%) - Tables may not foot due
Slide 20: Reorganization and Cost Reduction
REORGANIZATION AND COST REDUCTION While we are continuing investments in new products, quality and partner centric initiatives, we are taking decisive steps to reduce our cost structure and better prioritize our resources. These measures include additional consolidation of facilities, headcount redu
Slide 21: Q&A Session
Q&A 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 • U.S.: 1-877-407-8291 To ask questions: • International: 1-201-689-8345 21
Slide 22: Thank You
THANK YOU WWW.3DSYSTEMS.COM|NYSE:DDD