3D Systems Corporation · NYSE:DDD
3D Systems — Q1 2015 Earnings Presentation
24 slides from 3D Systems's earnings presentation, Sep 6, 2015
Slide 1: First Quarter 2015 Conference Call and Webcast
FIRST QUARTER 2015 CONFERENCE CALL AND WEBCAST WWW.3DSYSTEMS.COM|NYSE:DDD
Slide 2: Presenters
PRESENTERS Stacey Witten • Vice President, Investor Relations Avi Reichental • President & Chief Executive Officer Ted Hull • Executive Vice President & Chief Financial Officer Andy Johnson • Executive Vice President & Chief Legal Officer 2
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: Operating Results
OPERATING RESULTS Avi Reichental President & CEO 5
Slide 6: Q1 2015 Overview
Q1 2015 OVERVIEW Revenue of $160.7 million, GAAP loss of $0.12 per share and non-GAAP earnings of $0.05 per share Revenue growth of 9% over the comparable quarter, representing a 17% increase on a constant currency basis Severe currency headwinds, macroeconomic weakness and certain application and p
Slide 7: Revenue Highlights
REVENUE HIGHLIGHTS First Quarter $ in millions $144.8 Design & Manufacturing 5% $138.1 $15.9 Consumer 65% $9.7 2015 2014 Design & Manufacturing revenue Consumer revenue increased on shouldered the bulk of an industry level greater demand for the company’s pause in customer purchases of 3D new Cube a
Slide 8: Strength in Certain Verticals
STRENGTH IN CERTAIN VERTICALS Direct Metal Healthcare Software Metals revenue Expanded products and Software revenue increased 39% on a 46% services portfolio from increased 53% on increase in printer units. acquired businesses greater contributions Certain performance drove a revenue from products
Slide 9: Revenue by Geography
REVENUE BY GEOGRAPHY $ in millions Q1 Revenue Growth $100 27% Americas revenue expanded primarily from rising $80 demand for expanding products and services. $60 Macroeconomic factors, including adverse currency 2% rates, restricted EMEA revenue growth for the quarter. $40 (20%) APAC shouldered the
Slide 10: Financial Review
FINANCIAL REVIEW Ted Hull Executive Vice President & CFO
Slide 11: First Quarter GAAP Operating Results
FIRST QUARTER GAAP OPERATING RESULTS $ in millions, except earnings per share % Change Drivers Q1 2015 Q1 2014 Favorable/ (Unfavorable) Revenue $ 160.7 $ 147.8 8.8% Gross Profit $ 79.0 $ 75.5 4.7% Gross Profit Margin 49.1% 51.1% (3.8%) Operating Expenses $ 96.5 $ 66.0 (46.3%) % of Revenue 60.0% 44.6
Slide 12: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ($ in millions, except per share amounts) 2015 2014 GAAP net income ($ 13.2) $ 4.9 Cost of sales adjustments: Amortization of intangibles $ 0.1 $ 0.1 Operating expense adjustments: Amortization of intangibles $ 14.4 $ 9.1 Acquisition and severance expenses $ 3.2 $ 1.0 Non-cas
Slide 13: Revenue by Category
REVENUE BY CATEGORY FIRST QUARTER $ in millions $70 Curtailed spending by OEMs during 3% 31% the quarter constrained revenue $60 growth from product sales. $50 (8%) Decreased printer sales and curbed $40 utilization resulted in a reduction in materials revenue. $30 $20 Increased services revenue was
Slide 14: Gross Profit Margin
GROSS PROFIT MARGIN $ in millions First Quarter 2015 2014 Yr-Yr% Gross Profit Gross Profit Gross Profit Category Gross Profit Margin Gross Profit Margin Gross Profit Margin Products $ 21.8 34.7% $ 24.2 39.8% (9.9%) (12.8%) Materials $ 27.6 74.3% $ 30.2 74.7% (8.7%) (0.5%) Services $ 29.6 48.7% $ 21.
Slide 15: Operating Expenses
OPERATING EXPENSES $ in millions First Quarter GAAP Operating Expenses Non-GAAP Operating Expenses YOY Change YOY Change Favorable/ Favorable/ Category Q1 2015 Q1 2014 (Unfavorable) Q1 2015 Q1 2014 (Unfavorable) R&D $ 22.2 $ 17.2 (28.9%) $ 22.2 $ 17.2 (28.9%) % of Revenue 13.8% 11.7% 13.8% 11.7% SG&
Slide 16: Working Capital
WORKING CAPITAL $ in millions Uses of Cash March 2015 December 2014 Operations CapEx Cash $ 199.9 $ 284.9 Accounts Receivable $ 153.1 $ 168.4 Acquisitions & Ventures Inventory $ 114.6 $ 96.6 Accounts Payable $ 58.7 $ 64.4 Working Capital $ 348.2 $ 432.2 • Used $0.9 million of cash in operations duri
Slide 17: Withdrawing 2015 Guidance
WITHDRAWING 2015 GUIDANCE Given marketplace uncertainties, we believe it is prudent at this time to withdraw the company’s previously issued annual guidance We continue to rigorously assess the macroeconomic environment, and plan to provide an update regarding guidance when we have more clarity that
Slide 18: Business Update & Outlook
BUSINESS UPDATE & OUTLOOK Avi Reichental President & CEO
Slide 19: Business Highlights
BUSINESS HIGHLIGHTS Cimatron Easyway China High-Speed Printer Strengthens our 3D Provides a strong Installed continuous digital fabrication platform to scale our high-speed printer in software products and coverage in China and Wilsonville. Working services portfolio and expand our cloud with leadin
Slide 20: Strengthening Sales Coverage & Productivity
STRENGTHENING SALES COVERAGE & PRODUCTIVITY Introducing a tiered performance-based structure to Implementing a better incentivize and reward valuable channel partners series of initiatives to strengthen our Deepening CRM integration to improve customer channel partners intimacy and efficiency across
Slide 21: Integration, Productivity & Efficiency
INTEGRATION, PRODUCTIVITY & EFFICIENCY Infrastructure with Operational ample capacity to synergies across all Integrated global support future our products and supply chain growth regions Robust quality Vertical alignment Sustainable and processes and of business scalable company world-class service
Slide 22: Outlook
OUTLOOK While current conditions may indicate an industry-level pause, we believe that it is not unusual in emerging tech to encounter periodic episodes of equilibrium followed by continued upward growth. We continue to closely monitor conditions and are encouraged to see certain OEM’s resuming purc
Slide 23: 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 23
Slide 24: Thank You
THANK YOU WWW.3DSYSTEMS.COM|NYSE:DDD