The ExOne Company Reports Strong Revenue Growth in First Quarter 2013

The ExOne Company Reports Strong Revenue Growth in First Quarter 2013

  *Revenue increased by $5.2 million to $7.9 million
  *Gross margin improved from 30.0% to 35.8%
  *Strong balance sheet with $71.1 million in cash supports growth plans
  *Company reaffirms full year guidance

NORTH HUNTINGDON, Pa., May 14, 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 2013 first quarter, which
ended March 31, 2013.

Revenue for the first quarter of 2013 was $7.9 million compared with revenue
of $2.7 million for the first quarter of 2012, an increase of $5.2 million.
Net loss attributable to ExOne for the first quarter of 2013 was $1.9 million
compared with a net loss attributable to ExOne of $1.5 million for the first
quarter of 2012, an increase of $0.4 million. Increased net loss was primarily
the result of higher operating expenses which were partially offset by
improved gross profit.

Revenue Growth Driven by Stronger Sales of 3D Printing and Laser Machines
($ in millions)

                                             For the Quarter Ended
                                              March 31,
                                             2013          2012
Revenue by Product Line                                          
3D Printing and Laser Machines                $4.2 53.2%  $-- 0.0%
3D Printed Parts, Materials and Other ("PSC") $3.7 46.8%  $2.7 100.0%
Total Revenue                                 $7.9 100.0% $2.7 100.0%

During the first quarter of 2013, machine revenue was approximately $4.2
million. Five machines were sold in the 2013 first quarter consisting of four
3D printing machines and one laser machine, whereas no machines were sold in
the prior-year first quarter.Higher revenue was the result of increasing
customer demand for the Company's machine technology.Additionally, there has
been increasing interest of additive manufacturing among global industrial
manufacturers. Machine revenue represented 53% of total revenue in the 2013
first quarter.

PSC revenue for the 2013 first quarter was up 35%, or $1.0 million, over the
prior-year first quarter.The Company has continued to grow its customer base
for 3D printed parts, driving revenue growth.Additionally, the increased
number of installed machines in the field during the first quarter of 2013
compared with the first quarter of 2012 has led to a larger contribution of
revenue from machine service and consumables. 

Machine Sales and PSC Upgrades Drove Margin Expansion

Gross profit was $2.8 million in the first quarter of 2013, an improvement of
$2.0 million from gross profit of $0.8 million in the first quarter of
2012.Gross profit as a percent of sales was 35.8% in the first quarter of
2013 compared with 30.0% in the first quarter of 2012.Gross margin improved
on a favorable sales mix and enhanced productivity in our PSCs.

Operating loss for the first quarter of 2013 was $1.6 million compared with an
operating loss of $1.4 million in the first quarter of 2012 due to higher
operating expenses.Selling, general and administrative expenses were up $1.9
million to $3.6 million primarily as a result of increased professional
service fees and the addition of staff to support the Company's growth
strategy.Research and development expenses increased by $0.4 million to
support the Company's materials qualification activities, which included the
addition of personnel.

Adjusted earnings before interest, taxes, depreciation and amortization
("EBITDA") was a loss of $0.9 million in the first quarter of 2013, improved
from a loss of $1.0 million in the first quarter of 2012.ExOne management
believes that when used in conjunction with other measures prepared in
accordance with accounting principles generally accepted in the United States
("GAAP"), that Adjusted EBITDA, a non-GAAP measure, assists in the
understanding of operating performance. See the attached tables for important
disclosures regarding our use of Adjusted EBITDA as well as a reconciliation
of net loss attributable to ExOne to Adjusted EBITDA for the quarters ended
March 31, 2013 and 2012.

Strong Balance Sheet Provides Support for Growth Strategy

Cash and cash equivalents at March 31, 2013 was $71.1 million.During the
quarter, debt repayments totaled approximately $15.8 million, resulting in a
long-term debt balance of approximately $2.3 million at March 31, 2013.The
Company believes its cash and borrowing capacities are sufficient to support
its growth plans over the next two to three years.

Strategy and Outlook

Mr. S. Kent Rockwell, Chairman and CEO, noted, "We continue to be very
encouraged with the opportunities that present themselves for our 3D printing
capability.Nonetheless, as a global company we are subject to the vagaries of
the economies in which we operate.The weakness in Europe has slowed the
purchase decisions of our customers in that region while customer demand in
Japan is clearly strengthening with the economy.And in North America, we also
received our first order for an M-Flex machine in the quarter."

He concluded, "We are steadily advancing our growth strategy.This includes
the expansion of our manufacturing capacity in Germany, upgrading our PSCs and
working to establish a more robust PSC network.Importantly, we are also
making solid progress with our materials development processes."

For 2013, the Company continues to expect full year revenue to be in a range
of $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 to three additional PSCs during the second half of 2013.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 investments are planned for
2013 and 2014.This 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 Wednesday, May
15^th at 8:30 a.m. Eastern Time.During the conference call and webcast,
management will review the financial and operating results for the first
quarter 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 Wednesday, May 22, 2013.To listen to a replay of the
call, dial (858) 384-5517 and enter the conference ID number 412303.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.

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.

                                      

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

                                            For the Quarter Ended
                                             March 31,
                                            2013             2012
                                                            
Revenue                                      $7,934         $2,722
Cost of sales                                5,096           1,906
Gross profit                                 2,838           816
Gross margin                                 35.8%            30.0%
                                                            
Operating expenses                                           
Research and development                     856             484
Selling, general and administrative          3,568           1,686
                                            4,424           2,170
Loss from operations                         (1,586)         (1,354)
Operating margin                             -20.0%           -49.7%
                                                            
Other (income) expense                                       
Interest expense                             230             198
Other (income) expense - net                 (59)            (45)
                                            171             153
Loss before income taxes                     (1,757)         (1,507)
                                                            
Provision (benefit) for income taxes         19              (12)
Net loss                                     (1,776)         (1,495)
                                                            
Less: Net income attributable to             138             34
noncontrolling interests
Net loss attributable to ExOne               $(1,914)       $(1,529)
Net loss attributable to ExOne per common                    
share (2013) or unit (2012):
Basic                                        $(0.20)        N/A^(1)
Diluted                                      $(0.20)        N/A^(1)

Weighted average shares outstanding (basic   10,094,821       N/A^(1)
and diluted)
                                                            
(1)Information is not comparable for the quarter ended March 31, 2012 as a
result of the reorganization of the company as a corporation on January 1,
2013.


                                      

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

                                                      March 31,  December 31,
                                                       2013       2012
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                              $71,112  $2,802
Accounts receivable - net of allowance of $117 (2013)  6,378     8,413
and $83 (2012)
Inventories - net                                      7,562     7,485
Prepaid expenses and other current assets              1,499     1,543
Total current assets                                   86,551    20,243
                                                                
Property and equipment - net (Including amounts
attributable to consolidated variable interest         13,189    12,467
entities of $5,567 at December 31, 2012)
Deferred income taxes                                  9         178
Other noncurrent assets                                501       187
Total assets                                           $100,250 $33,075
                                                                
Liabilities                                                      
Current liabilities:                                             
Line of credit                                         $--     $528
Demand note payable to member                          --       8,666
Current portion of long-term debt (Including amounts
attributable to consolidated variable interest         123       2,028
entities of $1,913 at December 31, 2012)
Current portion of capital and financing leases        777       920
Accounts payable                                       2,743     2,451
Accrued expenses and other current liabilities         3,442     4,436
Preferred unit dividends payable                       --       1,437
Deferred income taxes                                  9         178
Deferred revenue and customer prepayments              2,902     4,281
Total current liabilities                              9,996     24,925
                                                                
Long-term debt - net of current portion (Including
amounts attributable to consolidated variable interest 2,178     5,669
entities of $3,150 at December 31, 2012)
Capital and financing leases - net of current portion  1,954     1,949
Other noncurrent liabilities                           392       491
Total liabilities                                      14,520    33,034
                                                                
Commitments and contingencies                                    
                                                                
Stockholders' / Members' Equity (Deficit)                        
ExOne stockholders' / members' deficit:Common stock,
$0.01 par value, 200,000,000 shares authorized,        133       --
13,281,608 shares issued and outstanding
Additional paid-in capital                             87,826    --
Accumulated deficit                                    (1,914)   --
Preferred units, $1.00 par value, 18,983,602 units     --       18,984
issued and outstanding
Common units, $1.00 par value, 10,000,000 units issued --       10,000
and outstanding
Members' deficit                                       --       (31,355)
Accumulated other comprehensive loss                   (315)     (174)
Total ExOne stockholders' / members' equity (deficit)  85,730    (2,545)
Noncontrolling interests                               --       2,586
Total stockholders' / members' equity                  85,730    41
Total liabilities and stockholders' / members' equity  $100,250 $33,075



The ExOne Company
Condensed Statement of Consolidated Cash Flows
($ in thousands)
(unaudited)

                                                       For the Quarter Ended
                                                        March 31,
                                                       2013        2012
Operating activities                                               
Net loss                                                $(1,776)  $(1,495)
Adjustments to reconcile net loss to cash used for                 
operations:
Depreciation                                            572        384
Equity-based compensation                               111        --
Changes in assets and liabilities, excluding effects of            
foreign currencytranslation adjustments:
(Increase) decrease in accounts receivable              2,008      (900)
(Increase) decrease in inventories                      (463)      (2,449)
(Increase) decrease in prepaid expenses and other       (982)      123
assets
Increase (decrease) in accounts payable                 (105)      643
Increase (decrease) in accrued expenses and other       (1,007)    262
liabilities
Increase (decrease) in deferred revenue and customer    (1,379)    (40)
prepayments
Cash used for operating activities                      (3,021)    (3,472)
                                                                  
Investing activities                                               
Capital expenditures                                    (731)      (457)
Deconsolidation of noncontrolling interests in variable (2,327)    --
interest entities
Cash used for investing activities                      (3,058)    (457)
                                                                  
Financing activities                                               
Net proceeds from issuance of common stock              91,083     --
Net change in line of credit borrowings                 (528)      728
Net change in demand note payable to member             (9,885)    600
Proceeds from financing leases                          --        985
Payments on long-term debt                              (5,396)    (320)
Payments on capital and financing leases                (386)      (185)
Payment of preferred stock dividends                    (456)      --
Cash provided by financing activities                   74,432     1,808
                                                                  
Effect of exchange rate changes on cash and cash        (43)       (33)
equivalents
                                                                  
Net change in cash and cash equivalents                 68,310     (2,154)
Cash and cash equivalents at beginning of period        2,802      3,496
                                                                  
Cash and cash equivalents at end of period              $71,112   $1,342



The ExOne Company
Additional Information
(unaudited)

Machine Sales by Type

        For the Quarter Ended
         March 31,
        2013       2012
                  
S Max    2          --
S Print  1          --
M Lab   1          --
Orion^TM 1          --
        5          --

                                      

The ExOne Company
Adjusted EBITDA Reconciliation
($ in thousands)
(unaudited)

                                       For the Quarter Ended
                                        March 31,
                                       2013                2012
                                                          
Net loss attributable to ExOne          $(1,914)          $(1,529)
                                                          
Net income attributable to              138                34
noncontrolling interests
Interest expense                        230                198
Provision (benefit) for income taxes    19                 (12)
Depreciation                            572                384
Equity-based compensation               111                --
Other (income) expense - net            (59)               (45)
                                                          
Adjusted EBITDA                         $(903)            $(970)



We define Adjusted EBITDA (earnings before interest, taxes, depreciation and
amortization) as net income (loss) attributable to ExOne (as calculated under
accounting principles generally accepted in the United States ("GAAP")) plus
net income (loss) of noncontrolling interests, provision (benefit) for income
taxes, interest expense, depreciation, equity-based compensation associated
with our 2013 Equity Incentive Plan and other (income) expense - net. Use of
Adjusted EBITDA, which is a non-GAAP financial measure, as defined under the
rules of the U.S. Securities and Exchange Commission (SEC), is intended as a
supplemental measure of our performance that is not required by, or presented
in accordance with, GAAP. Adjusted EBITDA should not be considered as an
alternative to net income (loss) attributable to ExOne or any other
performance measure derived in accordance with GAAP. Our presentation of
Adjusted EBITDA should not be construed to imply that our future results will
be unaffected by unusual or non-recurring items.

We believe Adjusted EBITDA is meaningful to our investors to enhance their
understanding of our financial performance. Although Adjusted EBITDA is not
necessarily a measure of our ability to fund our cash needs, we understand
that it is frequently used by securities analysts, investors and other
interested parties as a measure of financial performance and to compare our
performance with the performance of other companies that report Adjusted
EBITDA. Our calculation of Adjusted EBITDA may not be comparable to similarly
titled measures reported by other companies.

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

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