The ExOne Company Reports Revenue Growth on Higher Machine Sales in Fourth Quarter 2012

The ExOne Company Reports Revenue Growth on Higher Machine Sales in Fourth
Quarter 2012

  *Achieved record quarterly sales of $12.7 million; Eight machines sold in
    the quarter
  *2012 revenue reached $28.7 million, up 87.6%
  *Expects revenue to expand approximately 65% to 80% in 2013

NORTH HUNTINGDON, Pa., March 27, 2013 (GLOBE NEWSWIRE) -- The ExOne Company
(Nasdaq:XONE) ("ExOne" or "the Company"), a global provider of
three-dimensional ("3D") printing machines and printed products to industrial
customers, reported financial results today for its fourth quarter and full
year 2012, which ended December 31, 2012.

Kent Rockwell, Chairman and Chief Executive Officer of ExOne commented, "We
made solid progress in 2012. The recent technological advances of our 3D
printing machines create persuasive economics for our industrial customers,
who have demonstrated a growing interest in applying 3D printing in their
manufacturing processes."

Revenue for the fourth quarter of 2012 was $12.7 million, up $10.0 million
over 2011 fourth quarter. Net income of $0.9 million was improved over a net
loss of $2.8 million for the same period in 2011. Included in the fourth
quarter was a $1.5 million reduction in license fees.

For the full year of 2012 revenue was $28.7 million, up 87.6% from revenue of
$15.3 million in 2011. Net loss in 2012 was $10.2 million, compared with a net
loss of $8.0 million in 2011.

Revenue Growth Driven by Stronger Sales of 3D Printing Machines

($ in millions)                                                     
                                             Three months ended Year ended
                                              December 31,       December 31,
                                             2012      2011     2012   2011
Revenue by Product Line                                              
3D Printing Machine Sales                     $8.9      $0.2     $15.7  $5.4
3D Printed Parts, Materials and Other ("PSC") $3.8      $2.5     $13.0  $9.9
Total revenue                                 $12.7     $2.7     $28.7  $15.3


During the fourth quarter of 2012, machine sales were $8.9 million. Eight
machines were sold in the 2012 fourth quarter and thirteen in the full year,
whereas one machine was sold in the prior-year's fourth quarter and five
machines were sold in 2011. Higher sales were the result of customer demand
for the Company's new machine models.Additionally, there has been an
increasing trend of acceptance of additive manufacturing among global
industrial manufacturers. Machine sales represented 70% of total sales in the
2012 fourth quarter.

PSC revenue for the 2012 fourth quarter was up 52%, or $1.3 million, over the
prior-year period.PSC revenue in 2012 improved by 31.3%, or $3.1 million, as
the Company has increased its customer base from growing demand for 3D printed
parts.

Higher Machine Sales Results in Margin Expansion for the Quarter

Gross profit was $6.2 million in the fourth quarter of 2012, improved $5.8
million from gross profit of $0.4 million in the fourth quarter of 2011 driven
by the significant increase in machine sales.Gross profit as a percent of
sales was 49.0% in the fourth quarter of 2012 compared with 14.6% in the same
period of 2011.Gross profit included a $1.5 million reduction in license
fees.

Operating income for the fourth quarter of 2012 was $2.0 million, or 16.0% of
sales, compared with an operating loss of $2.1 million in the fourth quarter
of 2011.Improved operating income was due to higher sales volume.

Full Year 2012 Operational Review

Gross profit was $12.1 million, or 42.4% of sales, in 2012.SG&A expenses were
$18.3 million, or 63.8% of sales, for the year compared with $7.3 million, or
47.7% of sales, in 2011. Increased SG&A reflected investments for growth which
included additional personnel to support higher future sales volume.Also
included in SG&A for the year was approximately $1.9 million of expenses
associated with the preparation for the initial public offering ("IPO") and a
$7.7 million stock compensation expense. R&D expenses were $1.9 million in
2012, compared with $1.5 million in 2011.

Excluding the aforementioned expenses of $9.6 million, operating income would
have been $1.5 million for 2012, up from an operating loss of $5.2 million
during 2011.As reported, consolidated operating loss for the year was $8.1
million. Backlog at December 31, 2012 was $5.1 million.

Balance Sheet Bolstered by Successful IPO

On February 12, 2013, ExOne completed its IPO of 6,095,000 shares of common
stock at $18 per share, resulting in net proceeds to the Company of $92.0
million. Approximately $10.3 million of the proceeds were used to repay
outstanding debt.In addition, we purchased the assets and repaid the
liabilities of our variable interest entities for approximately $7.0 million.
The Company plans to use the remainder of the proceeds to fund ExOne's growth
initiatives, including the build out of an additional ten PSCs over the next
three to five years and the expansion of our global manufacturing capacity, as
well as further research and development, process improvement initiatives and
other corporate purposes.

Strong Growth Anticipated in 2013

Mr. Rockwell commented, "Our technology and experience has enabled us to
develop 3D printing machines that provide an economic alternative to
traditional industrial applications. Our unique solution for the industrial
market puts us in a leading position as a 3D printer and manufacturer in the
global economy.We believe we are a driver of the rate of adoption of 3D
printing for industrial applications as well as a benefactor of the growing
relevance of this technology in manufacturing. As we move forward, our
priorities are to capture this opportunity by developing PSCs in high
potential market areas and advancing our capabilities with new metal-based
materials."

For 2013, the Company estimates that full year revenue will be in a range of
about $48 million to $52 million with approximately two-thirds of revenue
expected to fall in the latter half of the year. The Company plans to launch
two additional PSCs during the second half of 2013 which will expand its
operations to a total of seven. Gross margin for the year is expected to be
approximately 42% to 46%. Operating expenses are expected to be in the range
of $18 million to $21 million.

Approximately $40 million to $50 million in growth capital expenditures are
planned over the next two years which includes the expansion of the Company's
global manufacturing capacity and PSC development.

Webcast and Conference Call

The ExOne Company will host a conference call and live webcast tomorrow
morning at 8:30 a.m. Eastern Time.During the conference call and webcast,
management will review the financial and operating results for the fourth
quarter and full year and discuss ExOne's corporate strategies and outlook.A
question-and-answer session will follow. The teleconference can be accessed
by calling (201) 689-8471. The webcast can be monitored on the Company's
website at www.exone.com.

A telephonic replay will be available from 11:30 a.m. ET on the day of the
teleconference through Thursday, April 4, 2013.To listen to a replay of the
call, dial (858) 384-5517 and enter the conference ID number 409944.An
archive of the webcast will be available on the Company's website at
www.exone.com and will include a transcript, once available.

About ExOne

ExOne is a global provider of 3D printing machines and printed products to
industrial customers. ExOne's business primarily consists of manufacturing and
selling 3D printing machines and printing products to specification for its
customers using its in‐house 3D printing machines. ExOne offers pre-production
collaboration and prints products through Production Service Centers, which
are located in the United States, Germany and Japan. ExOne builds 3D printing
machines at its facilities in the United States and Germany. ExOne also
supplies the associated products, including consumables and replacement parts,
and services, including training and technical support, necessary for
purchasers of its machines to print products.

Explanatory Note:

The ExOne Company was reorganized as a corporation on January 1, 2013 from a
limited liability company.Financial statements presented herein are not
reflective of the reorganization and should be read in conjunction with the
Company's Annual Report on Form 10-K to be filed with the SEC on or before
April 1, 2013.The ExOne Company completed its initial public offering of 6.1
million shares of common stock on February 12, 2013.

Safe Harbor Regarding Forward Looking Statements

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.

Forward-looking statements are subject to risks, uncertainties and assumptions
and are identified by words such as "expects," "estimates," "projects,"
"typically," "anticipates," "believes," "appears," "could," "plan," and other
similar words.Such statements include, but are not limited to, statements
concerning future revenue and earnings, involve known and unknown risks,
uncertainties and other factors that could cause the actual results of the
Company to differ materially from the results expressed or implied by such
statements, which include our ability to qualify more materials in which we
can print; the availability of skilled personnel; our strategy, including the
expansion and growth of our operations; the impact of loss of key management;
our plans regarding increased international operations in additional
international locations; sufficiency of funds for required capital
expenditures, working capital, and debt service; the adequacy of sources of
liquidity; expectations regarding demand for our industrial products,
operating revenues, operating and maintenance expenses, insurance expenses and
deductibles, interest expenses, debt levels, and other matters with regard to
outlook; demand for aerospace, automotive, energy and other industrial
products; the impact of disruption of our manufacturing facilities or PSCs;
liabilities under laws and regulations protecting the environment; the impact
of governmental laws and regulations; operating hazards, war, terrorism and
cancellation or unavailability of insurance coverage; the effect of litigation
and contingencies; and the adequacy of our protection of our intellectual
proper, and other factors disclosed in the Company's Annual Report on Form
10-K and other periodic reports filed with the Securities and Exchange
Commission.Because they are forward-looking, these statements should be
evaluated in light of important risk factors and uncertainties.

Should one or more of these risks or uncertainties materialize, or should any
of ExOne's underlying assumptions prove incorrect, actual results may vary
materially from those currently anticipated.Except as required by law, the
Company disclaims any obligation to update or publicly announce any revisions
to any of the forward-looking statements contained in this news release.

FINANCIAL TABLES FOLLOW



The ExOne Company
Consolidated Statements of Operations
($ in thousands)
(unaudited)

                                   Three months ended  Year ended
                                    December 31,        December 31,
                                   2012     2011       2012        2011
                                                                
                                                                
Revenue                             $ 12,744 $2,718   $28,657    $ 15,290
Cost of sales                       6,496  2,320     16,514     11,647
Gross profit                        6,248   398       12,143     3,643
Gross margin                        49.0%    14.6%      42.4%       23.8%
                                                                
Operating expenses                                               
Research and development            751     385       1,930      1,531
Selling, general and administrative 3,458   2,090     18,285     7,286
                                   4,209   2,475     20,215     8,817
Income (loss) from operations       2,039   (2,077)  (8,072)    (5,174)
Operating margin                    16.0%    -76.4%     -28.2%      -33.8%
Other (income) expense                                           
Interest expense                    300     382       842        1,570
Other (income) expense – net        (147)  (191)    (221)      (158)
                                   153     191       621        1,412
Profit (loss) before income taxes   1,886   (2,268)   (8,693)    (6,586)
                                                                
Provision for income taxes          824     322       995        1,031
Net income (loss)                   1,062   (2,590)   (9,688)    (7,617)
                                                                
Less: Net income attributable to    160     176       480        420
noncontrolling interests
Net income (loss) attributable to   $902    $(2,766) $ (10,168) $(8,037)
ExOne



The ExOne Company
Condensed Consolidated Balance Sheets
($ in thousands)
(unaudited)

                                                          December 31,
                                                          2012      2011
Assets                                                              
Current assets:                                                     
Cash and cash equivalents                                  $2,802  $3,496
Accounts receivable – net                                  8,413    1,335
Inventories - net                                          7,485    4,431
Prepaid expenses and other current assets                  1,543    854
Total current assets                                       20,243   10,116
Property and equipment - net                               12,467   7,919
Other noncurrent assets                                    365      580
Total assets                                               $33,075 $18,615
                                                                   
Liabilities                                                         
Current liabilities:                                                
Line of credit                                             $528    $--
Demand note payable to member                              8,666    --
Current portion of long-term debt and financing leases     2,948    1,294
Accounts payable, accrued expenses and other current       7,065    4,863
liabilities
Preferred unit dividends payable                           1,437    --
Deferred revenue and customer prepayments                  4,281    4,938
Total current liabilities                                  24,925   11,095
Long-term debt and financing leases - net of current       7,618    4,135
portion
Redeemable preferred units                                 --      18,984
Other noncurrent liabilities                               491      -- 
Total liabilities                                          33,034   34,214
                                                                   
Commitments and contingencies                                       
                                                                   
Members' equity (deficit)                                           
Total ExOne members' deficit                               (2,545)  (17,705)
Noncontrolling interests                                   2,586    2,106
Total members' equity (deficit)                            41       (15,599)
Total liabilities and members' deficit                     $33,075 $18,615
                                                                   


The ExOne Company
Additional Information

Machine Sales by Type                   
                     Three months ended Year ended
                      December 31,       December 31,
Machines              2012      2011     2012   2011
S 15                  --        --       1      2
S Max                 5         --       9      1
S Print               3         --       3      1
Other                 --        1        --     1
Total                 8         1        13     5
                                            

CONTACT: Media:
         Nicole McEwen
         Marketing Director
         (724) 765-1328
         nicole.mcewen@exone.com
        
         Investors:
         John Irvin
         Chief Financial Officer
         (724) 765-1310
         john.irvin@exone.com
        
         Deborah K. Pawlowski
         Kei Advisors LLC
         (716) 843-3908
         dpawlowski@keiadvisors.com

The ExOne Company logo
 
Press spacebar to pause and continue. Press esc to stop.