3d Systems Corporation · NYSE:DDD
3d Systems — Q4 2016 Earnings Presentation
24 slides from 3d Systems's earnings presentation, Feb 28, 2017
Slide 1: Fourth Quarter and Full Year 2016 Conference Call & Webcast
Fourth Quarter and Full Year 2016 Conference Call & Webcast February 28, 2017
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: Overview and Highlights
Overview and Highlights • 3D printing is at an inflection point and is shifting from prototyping to production. • Use case by use case approach to key verticals, leveraging our core assets and domain expertise. • Executing an annuity based business model combining materials, services and software wi
Slide 6: Financial Highlights
Financial Highlights • Full year revenue decreased 5%, or 2% excluding the contribution of discontinued consumer products from 2015 • Improved GPM and reduced operating expenses • Non-GAAP earnings growth of 70% for the full year • Positive cash flow from operations each quarter for a total of $57 m
Slide 7: Outlook and 2017 Guidance
Outlook and 2017 Guidance • Revenue growth between 2% and 8% – In the range of $643 million to $684 million • GAAP EPS improvement of 106% to 117% – In the range of $0.02 to $0.06 per share • Non-GAAP EPS increase of 10% to 20% – In the range of $0.51 to $0.55 per share • Continued positive cash flo
Slide 8: John McMullen
John McMullen Executive Vice President & Chief Financial Officer
Slide 9: Operating Results (GAAP)
Operating Results GAAP Fourth Quarter Full Year Y/Y Favorable Y/Y Favorable ($ in millions, except per share) 2016 2015 (Unfavorable) 2016 2015 (Unfavorable) Revenue $ 165.9 $ 183.4 (10%) $ 633.0 $ 666.2 (5%) Gross Profit $ 82.9 $ 60.2 38% $ 309.8 $ 291.8 6% Gross Profit Margin 50.0% 32.8% 1720 bps
Slide 10: Operating Results (Non-GAAP)
Operating Results Non-GAAP Fourth Quarter Full Year Y/Y Favorable Y/Y Favorable ($ in millions, except per share) 2016 2015 (Unfavorable) 2016 2015 (Unfavorable) Revenue $ 165.9 $ 183.4 (10%) $ 633.0 $ 666.2 (5%) Gross Profit $ 83.0 $ 87.6 (5%) $ 320.8 $ 319.5 0% Gross Profit Margin 50.0% 47.7% 230
Slide 11: Revenue Drivers
Revenue Drivers Full Year 2016 Compared to 2015: $666.2 $633.0 • Healthcare solutions 5% • Materials 4% • Software 12% • Printers 21% $ in millions • On-demand parts 18% 11
Slide 12: Gross Profit & Margin
Gross Profit & Margin • GPM improved to 48.9% GAAP and 50.7% non-GAAP for the full year • Executing plans to reduce costs $ in millions - Charges related to portfolio prioritization negatively impacted Q4 2015 and Q3 2016 GAAP GPM 12
Slide 13: Operating Expenses
Operating Expenses • GAAP operating expenses decreased from lower amortization, stock based compensation and legal expenses, and from lower R&D expenses as investments were prioritized • Driving appropriate cost structure and reinvesting in infrastructure and innovation $ in millions 13
Slide 14: Cash and Balance Sheet
Cash and Balance Sheet • Generated $56.9 million of cash from operations in 2016 • Cash balance of $184.9 million at December 31, 2016, an increase of $29.3 million for the year • Inventory decreased sequentially to $103.3 million and days sales outstanding improved to 70 days 14
Slide 15: Outlook and 2017 Guidance
Outlook and 2017 Guidance • Revenue growth between 2% and 8% – In the range of $643 million to $684 million • GAAP EPS improvement of 106% to 117% – In the range of $0.02 to $0.06 per share • Non-GAAP EPS increase of 10% to 20% – In the range of $0.51 to $0.55 per share • Continued positive cash flo
Slide 16: Vyomesh Joshi (VJ)
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 17: Transforming Digital Dentistry
Transforming Digital Dentistry • Acquisition of NextDent establishes strategic foothold to transform digital dentistry workflow • Combination of Figure 4 and NextDent materials will allow us to deliver transformative production solutions from the dentist’s chair to the dental lab 17
Slide 18: Vertical Use-Case Approach
Vertical Use-Case Approach • Leverage our platform across all key verticals • Comprehensive solutions provide complete digital manufacturing workflow • Focused innovation for production solutions 18
Slide 19: Q&A Session
Q&A Session In the USA: 1-877-407-8291 Outside the USA: 1-201-689-8345
Slide 20: Thank You
ZN 3D SYSTEMS Thank You
Slide 21: Appendix
ZN 3D SYSTEMS Appendix
Slide 22: Reconciliation of GAAP to Non-GAAP – Q4
Reconciliation of GAAP to Non-GAAP – Q4 Quarter Ended December 31, 2016 Quarter Ended December 31, 2015 Amortization, Amortization, Stock-Based Legal and Stock-Based Legal and Compensation & Acquisition- Portfolio Compensation & Acquisition- Portfolio (in thousands, except per share amounts) GAAP Ot
Slide 23: Reconciliation of GAAP to Non-GAAP – Full Year
Reconciliation of GAAP to Non-GAAP – Full Year Full Year Ended December 31, 2016 Full Year Ended December 31, 2015 Amortization, Amortization, Stock-Based Legal and Stock-Based Legal and Compensation & Acquisition- Portfolio Compensation & Acquisition- Portfolio (in thousands, except per share amoun
Slide 24: Reconciliation of GAAP to Non-GAAP 2017 Guidance
Reconciliation of GAAP to Non-GAAP 2017 Guidance Full Year Ended December 31, 2017 (in millions, except per share amounts) Low High Revenue $ 643 $ 684 GAAP Earnings per Share $ 0.02 $ 0.06 Estimated adjustments to arrive at non-GAAP EPS: Amortization 0.30 0.30 Stock Based Compensation 0.14 0.14 Acq