3D Systems Reports 2012 Results
3D Systems Reports 2012 Results
- Delivers Record Quarterly and Annual Revenue and Gross Profit
- Completes Three-for-Two Stock Split and Commences Post Split NYSE Trading
- Expects 2013 Revenue of $440 million to $485 million and non-GAAP EPS of
$1.00 to $1.15
ROCK HILL, S.C., Feb. 25, 2013 (GLOBE NEWSWIRE) -- 3D Systems Corporation
(NYSE:DDD) announced today non-GAAP earnings of 39 cents per share for the
fourth quarter of 2012 and GAAP earnings of 19 cents per share resulting in
full year 2012 non-GAAP earnings of $1.25 and GAAP earnings of $0.71.
The company reported that its fourth quarter revenue grew 45.4% from the prior
year to $101.6 million on a 93% surge in printers' and other products revenue
and 18.8% organic growth. Stronger printer demand bolstered quarter-end
backlog to $11.4 million at year-end, a 23% sequential increase, which
included $3.2 million related to current printers' sales. Gross profit
increased 60% and gross profit margin expanded 460 basis points to 51.7%
contributing to non-GAAP net income improvement of 64% over the 2011 quarter.
For the full year 2012, revenue grew 53.5% to $353.6 million, on 90% printers'
and other products revenue increase and 22.4% organic growth. Gross profit
increased 66.2% and gross profit margin expanded 390 basis points to 51.2%.
The company generated $53.0 million of cash from operations in 2012, and ended
the year with $155.9 million of available cash, after incurring a $46.5
million increase in its annual operating expenses primarily from increased
sales, marketing and acquisitions costs. The increase included $8.9 million of
higher R&D expenditures in support of its expanded portfolio.
"We are very pleased to report outstanding quarterly and annual results on
accelerated printers' sales," said Avi Reichental, 3D Systems' President and
Chief Executive Officer. "We believe that our results reflect the potency of
our diversified portfolio, productivity of our channels and effectiveness of
our strategic growth initiatives."
The table below summarizes the company's key 2012 non-GAAP financial results
for the fourth quarter and full year.
Non-GAAP
Operating Fourth Quarter Full Year
Highlights
($ in
millions, % Change % Change
except per 2012 2011 Favorable 2012 2011 Favorable
share (Unfavorable) (Unfavorable)
amounts)
Revenue $ $ 45.4% $ 353.6 $ 53.5%
(GAAP) 101.6 69.9 230.4
Gross profit $ $ 59.7% $ $ 66.0%
52.6 32.9 181.4 109.3
% of revenue 51.7% 47.1% 51.3% 47.4%
Operating $ $ (67.5%) $ 99.8 $ (58.3%)
expenses 28.2 16.8 63.0
% of revenue 27.7% 24.1% 28.2% 27.4%
Operating $ $ 51.5% $ $ 76.5%
income 24.4 16.1 81.6 46.3
% of revenue 24.0% 23.0% 23.1% 20.1%
Net income $ $ 63.6% $ 67.9 $ 65.7%
22.6 13.8 41.0
% of revenue 22.2% 19.8% 19.2% 17.8%
Diluted $
earnings per $0.39 0.27 44.4% $1.25 $0.81 54.3%
share
Available $ $ $
cash & cash 155.9 179.1 (13.0%) $ 155.9 179.1 (13.0%)
equivalents
Depreciation $ $
& 2.4 1.5 (63.3%) $ 10.1 $ 6.0 (67.4%)
amortization
% of revenue 2.3% 2.7% 2.9% 2.6%
- Gross profit, operating expenses, operating income, net income and
earnings per share have been adjusted to reflect non-GAAP operating
results. See the reconciliation of non-GAAP data to GAAP net income
and earnings per share at the end of this press release.
3D printers and other products revenue nearly doubled to $126.8 million on
stronger demand as a result of the company's effective portfolio convergence,
price point re-alignment and channel expansion. Print materials revenue grew
46.1% to $103.2 million on 124.2% higher printer units and services revenue
increased by $30.5 million over 2011 to $123.7 million and included $79.2
million of on-demand parts.
"We are thrilled with the progress we are making on our consumer growth
initiative and expect revenue from our consumer products to be meaningful to
our revenue in the second half of 2013," continued Reichental.
The company announced that its three-for-two stock split was completed
effective on the close of business Friday, February 22, 2013 by distributing a
50% stock dividend in the form of additional shares to its stockholders of
record on February 15, 2013. Trading of the company's common stock on the New
York Stock Exchange will begin this morning on a split-adjusted basis at
approximately 66% of last Friday's closing price.
The company announced its annual guidance for the full year 2013, expecting
its revenue to be in the range of $440 million to $485 million and its
non-GAAP earnings per share to be in the range of $1.00 to $1.15, on a
post-split basis, inclusive of the acquisition of Geomagic, which the company
expects to close by the end of February 2013.
"We entered 2013 with positive sales momentum shaped by increased demand from
advanced manufacturing activities. While we may face lingering economic
uncertainties in parts of the world, we expect to continue to benefit from
robust R&D and manufacturing spending by our customers worldwide," concluded
Reichental.
Conference Call and Webcast Details
3D Systems will hold a conference call and webcast to discuss its operating
results for the fourth quarter and full year 2012 on Monday, February 25, 2013
at 9:00 a.m., Eastern Time.
* To access this webcast, log onto 3D Systems' web site at
investor.3dsystems.com. To ensure timely participation and technical
capability, we recommend logging on a few minutes prior to the conference
call to activate your participation.
* To access this conference call, dial 1-800-295-3991 from in the U.S. or
1-617-614-3924 from outside the U.S. and enter participant code 68343877.
* The webcast will be also be available for replay beginning approximately
two hours after completion of the call at: investor.3dsystems.com.
The company filed its Annual Report on Form 10-K today and copies are
available free of charge upon request from Investor Relations.
Forward-Looking Statements
Certain statements made in this release 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
may involve known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of the company to be
materially different from historical results or from any future results or
projections expressed or implied by such forward-looking statements. In
addition to statements that explicitly describe such risks and uncertainties,
readers are urged to consider statements in the conditional or future tenses
or that include terms such as "believes," "belief," "expects," "estimates,"
"intends," "anticipates" or "plans" to be uncertain and forward-looking.
Forward-looking statements may include comments as to the company's beliefs
and expectations as to future events and trends affecting its business and are
necessarily subject to uncertainties, many of which are outside the control of
the company. The factors described under the headings "Forward-Looking
Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in
the company's periodic filings with the Securities and Exchange Commission, as
well as other factors, could cause actual results to differ materially from
those reflected or predicted in forward-looking statements.
Presentation of Information in This Press release
The company reported non-GAAP measures that adjust net income and earnings per
share by excluding the impact of amortization of intangibles, non-cash
interest expense, non-recurring acquisition expenses, litigation settlements,
loss on conversion of notes, stock-based compensation expense and releases of
the valuation allowance on deferred tax assets. A reconciliation of GAAP to
non-GAAP results is provided in the accompanying schedule.
About 3D Systems Corporation
3D Systems is a leading provider of 3D content-to-print solutions including 3D
printers, print materials and on-demand custom parts services for
professionals and consumers alike. The company also provides affordable CAD
modeling, reverse engineering and inspection software tools and consumer 3D
printers, apps and services. Its expertly integrated solutions replace and
complement traditional methods and reduce the time and cost of designing and
manufacturing new products. 3D Systems' products and services are used to
rapidly design, communicate, prototype or produce real functional, parts,
empowering customers to create and make with confidence.
More information on the company is available at www.3DSystems.com.
The 3D Systems Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4537
Tables Follow
3D Systems Corporation
Audited Consolidated Statements of Operations and Comprehensive Income
Quarter and Year Ended December 31, 2012 and 2011
Quarter Ended December 31, Year Ended December 31,
(in thousands, except per 2012 2011 2012 2011
share amounts)
Revenue:
Products $ 68,757 $ 41,944 $ 229,980 $ 137,306
Services 32,814 27,916 123,653 93,117
Total revenue 101,571 69,860 353,633 230,423
Cost of sales:
Products 31,665 20,837 105,286 66,589
Services 17,410 16,158 67,151 54,806
Total cost of sales 49,075 36,995 172,437 121,395
Gross profit 52,496 32,865 181,196 109,028
Operating expenses:
Selling, general and 26,524 17,572 97,422 59,795
administrative
Research and development 7,806 4,594 23,203 14,331
Total operating expenses 34,330 22,166 120,625 74,126
Income from operations 18,166 10,699 60,571 34,902
Interest and other expense 8,703 1,991 17,292 2,456
(income), net
Income before income taxes 9,463 8,708 43,279 32,446
Provision for (benefit (1,449) 703 4,338 (2,974)
of) income taxes
Net income $ 10,912 $ 8,005 $ 38,941 $ 35,420
Other comprehensive income
Unrealized gain (loss) on (715) (275) (714) (275)
pension obligation
Foreign currency 1,499 (1,493) 1,640 (1,743)
translation gain (loss)
Comprehensive income $ 11,696 $ 6,237 $ 39,867 $ 33,402
Net income per share - $ 0.19 $ 0.16 $ 0.72 $ 0.71
basic
Net income per share - $ 0.19 $ 0.16 $ 0.71 $ 0.70
diluted
3D Systems Corporation
Audited Consolidated Balance Sheets
December 31, 2012 and 2011
(in thousands, except par value) 2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 155,859 $ 179,120
Accounts receivable, net of allowance for doubtful 79,869 51,195
accounts of $4,317 (2012) and $3,019 (2011)
Inventories, net of reserves of $3,534 (2012) and $2,542 41,820 25,283
(2011)
Prepaid expenses and other current assets 4,010 2,241
Current deferred income tax asset 5,867 3,528
Restricted cash 13 13
Total current assets 287,438 261,380
Property and equipment, net 34,353 29,594
Intangible assets, net 108,377 54,040
Goodwill 240,314 107,651
Long term deferred income tax asset 107 3,195
Other assets, net 6,853 7,114
Total assets $ 677,442 $ 462,974
LIABILITIES AND EQUITY
Current liabilities:
Current portion of capitalized lease obligations $ 174 $ 163
Accounts payable 32,095 25,911
Accrued and other liabilities 24,789 16,816
Customer deposits 2,786 3,398
Deferred revenue 15,309 11,260
Total current liabilities 75,153 57,548
Long term portion of capitalized lease obligations 7,443 7,609
Convertible senior notes, net 80,531 131,107
Deferred income tax liability 23,142 3,656
Other liabilities 10,840 8,266
Total liabilities 197,109 208,186
Commitments and Contingencies
Stockholders' equity:
Preferred stock, authorized 5,000 shares, none issued — —
Common stock, $0.001 par value, authorized 120,000 shares; 60 51
59,855 (2012) and 50,975 (2011) issued
Additional paid-in capital 460,237 274,542
Treasury stock, at cost: 355 (2012) and 324 shares (2011) (240) (214)
Accumulated earnings (deficit ) 16,410 (22,531)
Accumulated other comprehensive income 3,866 2,940
Total stockholders' equity 480,333 254,788
Total liabilities and stockholders' equity $ 677,442 $ 462,974
3D Systems Corporation
Audited Consolidated Statements of Cash Flows
Year Ended December 31, 2012 and 2011
(in thousands) 2012 2011
Cash flows from operating activities:
Net income $ 38,941 $ 35,420
Adjustments to reconcile net income to net cash provided
by operating activities:
Benefit of deferred income taxes (661) (5,140)
Depreciation and amortization 21,229 11,093
Non-cash interest on convertible notes 3,876 409
Provision for bad debts 3,039 1,731
Stock-based compensation 5,118 2,637
(Gain) loss on the disposition of property and equipment (674) 256
and investments
Loss on conversion of convertible debt 7,021 —
Changes in operating accounts:
Accounts receivable (19,246) (12,090)
Inventories (12,225) (2,608)
Prepaid expenses and other current assets (794) 45
Accounts payable (238) (3,457)
Accrued liabilities 9,081 141
Customer deposits (1,336) 857
Deferred revenue 1,164 525
Other operating assets and liabilities (1,251) (2,159)
Net cash provided by operating activities 53,044 27,660
Cash flows from investing activities:
Purchases of property and equipment (3,224) (2,870)
Proceeds from disposition of property and equipment and — 174
other assets
Additions to license and patent costs (729) (336)
Cash paid for acquisitions, net of cash assumed (183,701) (92,677)
Net cash used in investing activities (187,654) (95,709)
Cash flows from financing activities:
Proceeds from 5.50% convertible notes — 148,960
Convertible notes capitalized costs — (3,594)
Proceeds from issuance of common stock 106,889 62,054
Proceeds from exercise of stock options and restricted 4,400 2,764
stock, net
Repayment of capital lease obligations (163) (221)
Proceeds from capital lease obligations — —
Restricted cash — 12
Net cash provided by financing activities 111,126 209,975
Effect of exchange rate changes on cash 223 (155)
Net increase (decrease) in cash and cash equivalents (23,261) 141,771
Cash and cash equivalents at the beginning of the period 179,120 37,349
Cash and cash equivalents at the end of the period $ 155,859 $ 179,120
3D Systems Corporation
Schedule 1
Earnings Per Share
Following is a reconciliation of the numerator and denominator of the basic
and diluted net earnings per share computations:
Quarter Ended December 31, Year Ended December 31,
(in thousands, except per 2012 2011 2012 2011
share amounts)
Basic and diluted
earnings per share:
Basic earnings per share:
Numerator:
Net income $ 10,912 $ 8,005 $ 38,941 $ 35,420
Denominator:
Weighted average common 57,417 50,615 53,878 49,748
shares outstanding
Basic earnings per share $ 0.19 $ 0.16 $ 0.72 $ 0.71
Diluted earnings per
share:
Numerator:
Net income $ 10,912 $ 8,005 $ 38,941 $ 35,420
Denominator:
Weighted average common 57,417 50,615 53,878 49,748
shares outstanding
Effect of dilutive
securities:
Stock options 36 838 604 975
Diluted weighted average 57,453 51,453 54,482 50,723
shares outstanding
Diluted earnings per $ 0.19 $ 0.16 $ 0.71 $ 0.70
share
3D Systems Corporation
Schedule 2
Unaudited Reconciliation of GAAP Net Income to Non-GAAP Net Income
Quarter and Year Ended December 31, 2012 and 2011
Quarter Ended December 31, Year Ended December 31,
(in thousands, except 2012 2011 2012 2011
per share amounts)
GAAP Net Income $ 10,912 $ 8,005 $ 38,941 $ 35,420
Adjustments:
Stock-based 1,317 810 4,613 2,637
compensation
Amortization of 2,894 2,075 11,452 5,050
intangibles ^(a) (b)
Acquisition and 2,015 2,513 4,982 3,664
severance expenses
Non-cash interest 857 400 3,489 400
expenses
Loss on convertible 5,199 -- 6,295 --
notes
Net gain on
acquisitions and -- -- (1,296) --
litigation settlements
Release of valuation
allowance on deferred (610) -- (610) (6,221)
tax assets
Non-GAAP adjusted net $ 22,584 $ 13,803 $ 67,866 $ 40,950
income
Non-GAAP adjusted
income per share - $ 0.39 $ 0.27 $ 1.26 $ 0.82
basic
Non-GAAP adjusted
income per share - $ 0.39 $ 0.27 $ 1.25 $ 0.81
diluted
(a) Represents amortization expense for the quarters ended December 31, 2012
and 2011, of which $54 and $44, respectively, is included in the cost of sales
and the remaining $2,840 and $2,031, respectively, is included in operating
expenses.
(b) Represents amortization expense for the years ended December 31, 2012 and
2011, of which $193 and $237, respectively, is included in the cost of sales
and the remaining $11,259 and $4,813, respectively, is included in operating
expenses.
CONTACT: Investor Contact:
Stacey Witten
803-326-4010
Email: Stacey.Witten@3dsystems.com
Media Contact:
Cathy Lewis
781-852-5007
Email: Cathy.Lewis@3dsystems.com
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