Slide 1: Second Quarter 2020 Financial Results
EXHIBIT 99.2 Second Quarter 2020 Financial Results August 5, 2020 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President and Chief Executive Officer Wayne Pensky To participate via phone, Interim Chief Financial Officer please dial: Andrew Johnson 1-201-689-8345 Executive Vice President and Chief Legal Officer Melanie Solomon Investor Relations 2
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation 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, ob
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4
Slide 5: 3D Systems' Purpose Statement
3D Systems' Purpose Statement We are the leaders in enabling additive manufacturing solutions for applications in growing markets that demand high reliability products. 5
Slide 6: Market Focus
Market Focus Healthcare Solutions Industrial Solutions Dental Aerospace Medical Devices Defense Simulations Automotive Surgical Planning Jewelry Durable Goods Focus on Key Applications within these Markets 6
Slide 7: Full Solution Provider
Full Solution Provider SERVICES & HARDWARE & GLOBAL SOFTWARE MATERIALS REACH PRODUCTION • Application experts • Full range of 3D • Service Experts • Deep and diverse printers to address AM across 5 continents experience in • Customer Innovation needs in production parts and Centers (CIC) for ◦ Wax •
Slide 8: Healthcare Case Study
Healthcare Case Study Customer Need An economically viable orthopedic implant with optimized surface characteristics and mechanical properties for superior performance. The Challenge with Traditional Manufacturing 'Machining-plus-coating' manufacturing processes lead to poor surface quality, high co
Slide 9: Industrial Case Study
Industrial Case Study Customer Need State-of-the-art cast metal parts with highly complex geometries to enable improved levels of performance at reduced cost The Challenge with Traditional Manufacturing Traditional investment casting production methodology limits geometric design options and involve
Slide 10: Restructuring
Restructuring • Reduce operating costs by $100 million per year by end of next year • Expect to be profitable at current sales level ◦ Then, well positioned to leverage sales growth as it returns • Nearly 20% workforce reduction – majority this year • Continue to aggressively reduce footprint – most
Slide 11: Wayne Pensky
Wayne Pensky Interim Chief Financial Officer 11
Slide 12: Second Quarter Summary
Second Quarter Summary Second Quarter (in millions, except per share amounts) 2020 2019 Revenue $ 112.1 $ 157.3 • Revenue decrease 29% YoY Operating Loss (33.9) (19.2) • Revenue decrease 17% vs Q1 2020 Net Loss (38.0) (23.9) • $10.9M charge for end-of-life inventory Loss Per Share $ (0.33) $ (0.21)
Slide 13: Revenue by Market
Revenue by Market $ in millions (11.4)% (38.5)% (9.2)% (25.9)% 13
Slide 14: Gross Profit Margin
Gross Profit Margin • Q2 non-GAAP gross profit margin was 41.3% • Excludes $10.9 million charge for certain product lines that reached their end-of-life • Expect restructuring actions to take us back to prior year levels as we try to offset the impact of lower volume • YTD cash from operations was a
Slide 15: Operating Expenses
Operating Expenses • GAAP operating expenses decreased 25.3% and non-GAAP operating expenses decreased 20.4% compared to the second quarter of the prior year • Decreases in both SG&A and R&D • SG&A is a focus of the Restructuring program 15 See appendix for a reconciliation of non-GAAP operating exp
Slide 16: Cash and Liquidity at June 30, 2020
Cash and Liquidity at June 30, 2020 • $64 million of cash and cash equivalents • Term Loan of $22 million • $100 million is undrawn ◦ $24 million of availability based on terms of agreement • Board authorized "At The Market" equity issuance up to $150 million ◦ Provides financial flexibility as we g
Slide 17: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 17
Slide 18: Summary
Summary Our Transformation Journey: • Strategic Focus – what is our purpose • Reorganize company around two market verticals – Healthcare and Industrial • Restructuring – take out $100 million of costs to return to profitability and position to leverage sales growth as it returns 18
Slide 19: Q&A Session
Q&A Session 1-201-689-8345 19
Slide 20: Thank You
Thank You Find out more at: www.3dsystems.com 2 20 0 ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 21: Appendix
Appendix ©2019 3D Systems, Inc. | All Rights Reserved.
Slide 22: Non-GAAP Reconciliation - Operating Loss
Non-GAAP Reconciliation - Operating Loss Second Quarter Non-GAAP Operating Loss Quarter Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Operating income (loss) $ (33.9) $ (19.2) $ (52.1) $ (40.5) Adjustments: Amortization, stock-based compens
Slide 23: Non-GAAP Reconciliation - EPS
Non-GAAP Reconciliation - EPS Second Quarter Non-GAAP Earnings (Loss) per Share Quarter Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2020 2019 2020 2019 GAAP Net loss $ (38.0) $ (23.9) $ (56.9) $ (48.3) Adjustments: Amortization, stock-based compensation & other 1
Slide 24: Non-GAAP Reconciliation - GP and GPM
Non-GAAP Reconciliation - GP and GPM Quarterly 2019 and 2020 Non-GAAP Gross Profit & Margin 2019 2020 Quarter Ended Quarter Ended (in millions) March 31 June 30 September 30 December 31 March 31 June 30 GAAP Gross Profit $ 65.7 $ 73.3 $ 67.3 $ 71.8 $ 57.1 $ 35.2 GAAP Gross Profit Margin 43.2 % 46.6
Slide 25: Non-GAAP Reconciliation - Operating Expense
Non-GAAP Reconciliation - Operating Expense Quarterly 2019 and 2020 Non-GAAP Operating Expenses 2019 2020 Quarter Ended Quarter Ended September December (in millions) March 31 June 30 30 31 March 31 June 30 GAAP SG&A Expenses $ 65.1 $ 71.7 $ 58.3 $ 59.3 $ 56.1 $ 52.0 GAAP R&D Expenses 21.9 20.8 20.9