3d Systems Corporation · NYSE:DDD
3d Systems — Q4 2018 Earnings Presentation
27 slides from 3d Systems's earnings presentation, Feb 28, 2019
Slide 1: Fourth Quarter and Full Year 2018
Fourth Quarter and Full Year 2018 February 28, 2019
Slide 2: Welcome and Participants
Welcome and Participants Vyomesh Joshi President & Chief Executive Officer John McMullen Executive Vice President & Chief Financial Officer Andy Johnson Chief Legal Officer Stacey Witten Vice President, IR and FP&A To participate via phone, please dial: In the US: 1 - 877 - 407 - 8291 Outside the US
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 stateme nts within the meaning of the Private Securities Litigation Reform Act of 1995. Forward - looking statements include statements concerning pla
Slide 4: Vyomesh Joshi (VJ) President & Chief Executive Officer
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 5: Transformation
Transformation 5 • Significant progress in our turnaround and transformation of the company • Enhanced our portfolio with innovative and disruptive new products while also improving infrastructure, operations, go - to - market and cost structure • Established strategic partnerships, including GF Mac
Slide 6: 2018 Revenue Drivers
2018 Revenue Drivers 6 During 2018, we continued to deliver on growth drivers, and total revenue increased 6% in 2018 compared to 2017 Printer revenue increased 25% on a 76% increase in printer unit sales Software revenue growth of 5% Healthcare solutions growth of 19% On demand services growth of 2
Slide 7: Fourth Quarter Results Overview
Fourth Quarter Results Overview 7 • Revenue increased 2% from the prior year to $180.7 driven by continued growth in printer units and printer revenue in both plastics and metals as well as continued growth in software and healthcare solutions • GAAP gross profit margin of 45.7% and non - GAAP gross
Slide 8: John McMullen Executive Vice President & Chief Financial Officer
John McMullen Executive Vice President & Chief Financial Officer
Slide 9: GAAP Operating Results
GAAP Operating Results 9 Fourth Quarter Full Year (in millions, except per share amounts) 2018 2017 Y/Y Change Better/(Worse) 2018 2017 Y/Y Change Better/(Worse) Revenue $ 180.7 $ 177.3 2% $ 687.7 $ 646.1 6% Gross Profit 82.6 85.5 (3)% 324.4 304.8 6% Gross Profit Margin 45.7 % 48.2 % (250) bps 47.2
Slide 10: Non-GAAP Financial Measures
Non - GAAP Financial Measures 10 We use non - GAAP measures to supplement our financial statements presented on a GAAP basis because management believes non - GAAP financial measures are useful to investors in evaluating our operating performance and to facilitate a better understan ding of the impa
Slide 11: Revenue Drivers
Revenue Drivers Printers revenue increased 17% to $40.7 million Healthcare solutions revenue increased 16% to $58.4 million On demand solutions revenue increased 5% to $27.7 million Software revenue increased 3% to $26.7 million Materials revenue decreased 2% to $42.0 million Q4 2018 compared to Q4
Slide 12: Gross Profit and Margin
Gross Profit and Margin • For the fourth quarter, GAAP GPM was 45.7% and non - GAAP GPM was 46.3% • For the full year, GAAP GPM was 47.2% and non - GAAP GPM was 47.4% • Supply chain efficiencies and cost improvements were offset by the impact of sales mix, costs to launch and ramp new products and l
Slide 13: Operating Expenses
Operating Expenses 13 • Both GAAP and non - GAAP operating expenses decreased 2% compared to the fourth quarter of the prior year • Although we expect some fluctuations quarter to quarter, we are beginning to see the results of actions we are taking to reduce cost structure • We are shifting from R&
Slide 14: Balance Sheet and Cash
Balance Sheet and Cash 14 • Generated $7.7 million of cash from operations during the fourth quarter, and generated $4.8 million of cash from operations during the full year • Ended 2018 with $110.0 million of cash on hand, including $25 million of proceeds from our revolving credit facility • Our e
Slide 15: Summary and Outlook
Summary and Outlook 15 • We have a strong operational foundation in place with improved processes across the company and, with the new products launched in 2018, an unmatched portfolio • We expect 2019 revenue growth to continue to be driven by growth in printers, materials, healthcare and software
Slide 16: Vyomesh Joshi (VJ) President & Chief Executive Officer
Vyomesh Joshi (VJ) President & Chief Executive Officer
Slide 17: Conclusion
Conclusion 17 • We have made significant progress in our turnaround and transformation work • We launched several products in 2018 and are very excited about the strength of our entire portfolio of workflow solutions focused on production applications • We believe we have significant opportunities a
Slide 18: Q&A Session
Q&A Session In the USA: 1 - 877 - 407 - 8291 Outside the USA: 1 - 201 - 689 - 8345
Slide 19: Thank You
ZR 3D SYSTEMS Thank You
Slide 20: Appendix
ZR 3D SYSTEMS Appendix
Slide 21: Revenue Summary by Category
Revenue Summary by Category 21 (in millions) Q4 2018 Q3 2018 Q4 2017 Sequential Change Better/(Worse) Y/Y Change Better/(Worse) Printers $ 40.7 $ 34.5 $ 34.9 18% 17% Software Products 15.2 12.0 14.6 27% 4% Other Products 15.3 13.2 13.1 16% 17% Total Products 71.1 59.6 62.6 19% 14% Total Materials 42
Slide 22: Non-GAAP Reconciliation: Earnings (Loss) per Share
Non - GAAP Reconciliation 22 Fourth Quarter and Full Year Non - GAAP Earnings (Loss) per Share Quarter Ended December 31, Full Year (in millions, except per share amounts) 2018 2017 2018 2017 GAAP Net loss attributable to 3D Systems Corporation $ (4.1 ) $ (10.1 ) $ (45.5 ) $ (66.2 ) Adjustments: Amo
Slide 23: Non-GAAP Reconciliation 2018 Gross Profit & Margin
Non - GAAP Reconciliation 23 2018 Non - GAAP Gross Profit & Margin 2018 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP Gross Profit $ 77.9 $ 86.2 $ 77.8 $ 82.6 $ 324.4 GAAP Gross Profit Margin 46.9 % 48.8 % 47.3 % 45.7 % 47.2 % Adjustments: Amortiza
Slide 24: Non-GAAP Reconciliation 2018 Operating Expenses
Non - GAAP Reconciliation 24 2018 Non - GAAP Operating Expenses 2018 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 25.9 $ 22.7 $ 23.2 $ 23.5 $ 95.3 GAAP SG&A Expenses 69.5 71.2 65.6 66.1 272.3 GAAP Operating Expenses $ 95.3 $ 93.9 $
Slide 25: Non-GAAP Reconciliation 2017 Gross Profit & Margin
Non - GAAP Reconciliation 25 2017 Non - GAAP Gross Profit & Margin 2017 Quarter Ended Year to Date (in millions) March 31 June 30 September 30 December 31 December 31 GAAP Gross Profit $ 80.2 $ 80.7 $ 58.5 $ 85.5 $ 304.8 GAAP Gross Profit Margin 51.3 % 50.6 % 38.3 % 48.2 % 47.2 % Adjustments: Amorti
Slide 26: Non-GAAP Reconciliation 2017 Operating Expenses
Non - GAAP Reconciliation 26 2017 Non - GAAP Operating Expenses 2017 Quarter Ended Year Ended (in millions) March 31 June 30 September 30 December 31 December 31 GAAP R&D Expenses $ 22.9 $ 24.4 $ 24.4 $ 23.0 $ 94.6 GAAP SG&A Expenses $ 66.4 $ 63.1 $ 66.5 $ 68.2 $ 264.2 GAAP Operating Expenses $ 89.3
Slide 27: Thank You
ZR 3D SYSTEMS Thank You