Stratasys Reports Record Financial Results for Q3 2013

Non-GAAP Discussion Disclosure

The information discussed within this release includes financial results and projections that are in accordance with accounting principles generally accepted in the United States (GAAP). In addition, certain non-GAAP financial measures have been provided that exclude certain charges, expenses and income. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. The non-GAAP financial measures are provided in an effort to provide information that investors may deem relevant to evaluate results from the company’s core business operations and to compare the company’s performance with prior periods. The non-GAAP financial measures primarily identify and exclude certain discrete items, such as merger-related expenses, amortization expenses and expenses associated with share-based compensation required under ASC 718. The company uses these non-GAAP financial measures for evaluating comparable financial performance against prior periods.

This release is available on the Stratasys web site at www.stratasys.com

Stratasys Ltd. (Nasdaq: SSYS) is the corporate entity formed in 2012 by the merger of 3D printing companies Stratasys Inc. and Objet Ltd., based in Minneapolis, Minn. and Rehovot, Israel. Stratasys manufactures 3D printers and materials for prototyping and production. The company’s patented FDM® and PolyJet® processes produce prototypes and manufactured goods directly from 3D CAD files or other 3D content. Systems include affordable desktop 3D printers for idea development, a range of systems for prototyping, and large production systems for direct digital manufacturing. Since June 2012, the company’s range of over 130 3D printing materials has been the widest in the industry and includes more than 120 proprietary inkjet-based photopolymer materials and 10 proprietary FDM-based thermoplastic materials. Stratasys also manufactures Solidscape 3D Printers and operates the RedEye On Demand digital-manufacturing service. The company has more than 1100 employees, holds more than 500 granted or pending additive manufacturing patents globally, and has received more than 20 awards for its technology and leadership. Online at: www.stratasys.com or http://blog.stratasys.com

 
 
Stratasys Ltd.
 
Consolidated Statements of Operations
 
(in thousands, except per share data)
               
Three Months Ended September 30, Nine Months Ended September 30,
2013 2012 2013 2012
(unaudited)     (unaudited) (unaudited)     (unaudited)
Net sales
Products $ 107,887 $ 41,318 $ 279,910 $ 120,308
Services   17,739     8,406   49,408     23,786
125,626 49,724 329,318 144,094
 
Cost of sales
Products 53,565 17,564 148,339 54,026
Services   11,469     4,203   32,608     12,997
65,034 21,767 180,947 67,023
       
Gross profit 60,592 27,957 148,371 77,071
 
Operating expenses
Research and development, net 13,514 4,067 34,640 12,576
Selling, general and administrative 51,587 14,781 137,577 42,366
Change in fair value of earn-out obligations   1,607     -   1,607     -
66,708 18,848 173,824 54,942
       
Operating income (loss) (6,116 ) 9,109 (25,453 ) 22,129
 
Other income (expense) (452 ) 163 200 518
       
Income (loss) before income taxes (6,568 ) 9,272 (25,253 ) 22,647
 
Income taxes (benefit)   80     4,089   (337 )   9,924
 
Net income (loss) $ (6,648 ) $ 5,183 $ (24,916 ) $ 12,723
 
Net income (loss) attributable to non-controlling interest $ (22 ) $ - $ 46   $ -
 
Net income (loss) attributable to Stratasys Ltd. $ (6,626 ) $ 5,183 $ (24,962 ) $ 12,723
 
Net income (loss) per ordinary share attributable to Stratasys Ltd.
Basic $ (0.16 ) $ 0.24 $ (0.63 ) $ 0.60
Diluted (0.16 ) 0.24 (0.63 ) 0.58
 
Weighted average ordinary shares outstanding
Basic 41,976 21,468 39,754 21,349
Diluted 41,976 22,008 39,754 21,857
 
 
Stratasys Ltd.
 
Consolidated Balance Sheets
 
(in thousands)            
    September 30,     December 31,
2013 2012
(unaudited)
ASSETS
 
Current assets
Cash and cash equivalents $ 414,890 $ 133,826
Short-term bank deposits 200,000 20,063
Restricted deposits 863 929
Accounts receivable:
Trade, net 86,588 64,678
Other 22,858 22,934
Inventories 79,784 67,995
Net investment in sales-type leases, net 6,008 5,134
Prepaid expenses 4,442 2,751
Deferred income taxes   17,045   4,968  
 
Total current assets   832,478   323,278  
 
Property, plant and equipment, net   80,707   62,070  
 
Other assets
Goodwill 1,195,021 822,475
Other intangible assets, net 638,170 510,372
Net investment in sales-type leases 8,990 7,872
Long-term investments - available for sale 1,634 -

Amounts funded in respect of employees rights upon retirement

2,984 2,628
Other non-current assets   2,309   2,818  
 
Total other assets   1,849,108   1,346,165  
 
Total assets $ 2,762,293 $ 1,731,513  
 
LIABILITIES AND EQUITY
 
Current liabilities
Accounts payable $ 31,919 $ 35,235
Other current liabilities 46,833 41,124
Earn-out obligation 13,709 -
Unearned revenues   30,555   18,068  
 
Total current liabilities   123,016   94,427  
 
Non-current liabilities
Employee rights upon retirement 4,694 4,188
Earn-out obligation - long-term 16,169 -
Deferred tax liabilities 112,499 54,693
Unearned revenues - long-term 3,156 3,181
Other non-current liabilities   8,203   2,868  
 
Total liabilities   267,737   159,357  
 
Commitments and contingencies
 

Equity

Ordinary shares, NIS 0.01 nominal value, authorized 180,000 shares; 48,738 and 38,372 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively

131 101
Additional paid-in capital 2,404,852 1,459,294
Retained earnings 87,540 112,503
Accumulated other comprehensive income (loss)   1,447   (238 )
 
Equity attributable to Stratasys Ltd. 2,493,970 1,571,660
 
Non-controlling interest   586   496  
 
Total equity   2,494,556   1,572,156  
 
Total liabilities and equity $ 2,762,293 $ 1,731,513  
 
 
Stratasys Ltd.
 
Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of Operations
 
(in thousands, except per share data)
               
Three Months Ended September 30, 2013 Three Months Ended September 30, 2012
Pro Forma Pro Forma
Including Objet Including Objet
GAAP Non-GAAP GAAP Non-GAAP
(unaudited)   Adjustments*   (unaudited) (unaudited)   Adjustments*   (unaudited)
Net sales
Products $ 107,887 $ 434 $ 108,321 $ 77,074 $ - $ 77,074
Services   17,739     -     17,739     13,847     -     13,847  
125,626 434 126,060 90,921 - 90,921
 
Cost of sales
Products 53,565 (12,713 ) 40,852 38,782 (10,977 ) 27,805
Services   11,469     (395 )   11,074     9,054     (420 )   8,634  
65,034 (13,108 ) 51,926 47,836 (11,397 ) 36,439
           
Gross profit 60,592 13,542 74,134 43,085 11,397 54,482
 
Operating expenses
Research and development, net 13,514 (1,538 ) 11,976 8,809 (889 ) 7,920
Selling, general and administrative 51,587 (13,660 ) 37,927 33,291 (8,505 ) 24,786
Change in fair value of earn-out obligations   1,607     (1,607 )   -        
66,708 (16,805 ) 49,903 42,100 (9,394 ) 32,706

 

           
Operating income (loss) (6,116 ) 30,347 24,231 985 20,791 21,776
 
Other expenses (452 ) - (452 ) (192 ) - (192 )
           
Income (loss) before income taxes (6,568 ) 30,347 23,779 793 20,791 21,584
 
Income taxes   80     3,640     3,720     3,647     1,419     5,066  
 
Net income (loss) $ (6,648 ) $ 26,707 $ 20,059 $ (2,854 ) $ 19,372 $ 16,518
 
Net income (loss) attributable to non-controlling interest $ (22 ) $ 61   $ 39   $ (95 ) $ -   $ (95 )
 
Net income (loss) attributable to Stratasys Ltd. $ (6,626 ) $ 26,646   $ 20,020   $ (2,759 ) $ 19,372   $ 16,613  
 
Net income (loss) per ordinary share attributable to Stratasys Ltd.
Basic $ (0.16 ) $ 0.48 $ (0.07 ) $ 0.45
Diluted (0.16 ) 0.45 (0.07 ) 0.41
 
Weighted average ordinary shares outstanding
Basic 41,976 41,976 36,912 36,912
Diluted 41,976 44,289 36,912 40,408
 

The Company considers these non-GAAP measures to be indicative of its core operating results and facilitates a comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes, however these measures should not be viewed as a substitute for the Company’s GAAP results.

 

* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for further information regarding adjustments.

 
 
Stratasys Ltd.
 
Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of Operations
 
(in thousands, except per share data)
               
Nine Months Ended September 30, 2013 Nine Months Ended September 30, 2012
Pro Forma Pro Forma
Including Objet Including Objet
GAAP Non-GAAP GAAP Non-GAAP
(unaudited)   Adjustments*   (unaudited) (unaudited)   Adjustments*   (unaudited)
Net sales
Products $ 279,910 $ 1,647 $ 281,557 $ 224,392 $ - $ 224,392
Services   49,408     -     49,408 $ 38,301     -     38,301  
329,318 1,647 330,965 262,693 - 262,693
 
Cost of sales
Products 148,339 (44,062 ) 104,277 117,188 (32,029 ) 85,159
Services   32,608     (1,080 )   31,528   25,975     (1,078 )   24,897  
180,947 (45,142 ) 135,805 143,163 (33,107 ) 110,056
           
Gross profit 148,371 46,789 195,160 119,530 33,107 152,637
 
Operating expenses
Research and development, net 34,640 (3,282 ) 31,358 26,714 (2,610 ) 24,104
Selling, general and administrative 137,577 (40,017 ) 97,560 103,039 (30,296 ) 72,743
Change in fair value of earn-out obligations   1,607     (1,607 )   -      
173,824 (44,906 ) 128,918 129,753 (32,906 ) 96,847
           
Operating income (loss) (25,453 ) 91,695 66,242 (10,223 ) 66,013 55,790
 
Other income 200 - 200 715 - 715
           
Income (loss) before income taxes (25,253 ) 91,695 66,442 (9,508 ) 66,013 56,505
 
Income taxes (benefit)   (337 )   10,442     10,105   8,644     4,633     13,277  
 
Net income (loss) $ (24,916 ) $ 81,253 $ 56,337 $ (18,152 ) $ 61,380 $ 43,228
 
Net income (loss) attributable to non-controlling interest $ 46   $ 126   $ 172 $ (95 ) $ -   $ (95 )
 
Net income (loss) attributable to Stratasys Ltd. $ (24,962 ) $ 81,127   $ 56,165 $ (18,057 ) $ 61,380   $ 43,323  
 
Net income (loss) per ordinary share attributable to Stratasys Ltd.
Basic $ (0.63 ) $ 1.41 $ (0.49 ) $ 1.18
Diluted (0.63 ) 1.33 (0.49 ) 1.08
 
Weighted average ordinary shares outstanding
Basic 39,754 39,754 36,794 36,794
Diluted 39,754 42,185 36,794 40,086
 

The Company considers these non-GAAP measures to be indicative of its core operating results and facilitates a comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes, however these measures should not be viewed as a substitute for the Company’s GAAP results.

 

* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for further information regarding adjustments.

 
 
Stratasys Ltd.
 
Reconciliation of Non-GAAP Adjustments
 
(in thousands)
             
Three Months Ended September 30, Nine Months Ended September 30,
2013 2012 2013 2012
Net sales, products
Deferred revenue step-up 434 - 1,647 -
 
Cost of sales, products
Intangible assets amortization expense (12,252 ) (10,260 ) (42,795 ) (30,779 )
Non-cash stock-based compensation expense (406 ) (297 ) (1,039 ) (740 )
Merger related expense   (55 )   (420 )   (228 )   (510 )
(12,713 ) (10,977 ) (44,062 ) (32,029 )
Cost of sales, services
Non-cash stock-based compensation expense (387 ) (330 ) (1,020 ) (1,078 )
Merger related expense   (8 )   (90 )   (60 )   -  
(395 ) (420 ) (1,080 ) (1,078 )
Research and development, net
Non-cash stock-based compensation expense (822 ) (889 ) (2,566 ) (2,610 )
Performance bonus expense   (716 )   -     (716 )   -  
(1,538 ) (889 ) (3,282 ) (2,610 )
Selling, general and administrative
Intangible assets amortization expense (3,838 ) (2,375 ) (14,758 ) (7,125 )
Non-cash stock-based compensation expense (4,997 ) (5,800 ) (12,837 ) (16,404 )
Merger related expense (2,347 ) (330 ) (9,944 ) (6,767 )
Performance bonus expense   (2,478 )   -     (2,478 )   -  
(13,660 ) (8,505 ) (40,017 ) (30,296 )
Change in fair value of earn-out obligation
Earn-out obligation expense (1,607 ) - (1,607 ) -
 
Income taxes
Tax expense related to non-GAAP adjustments 3,640 1,419 10,442 4,633
 
Net income attributable to non-controlling interest
Depreciation and amortization expense attributable to non-controlling interest   61     -     126     -  
       
Net income $ 26,646   $ 19,372   $ 81,127   $ 61,380  
 
 
Stratasys Ltd.
 
Reconciliation of GAAP to Non-GAAP Forward Looking Guidance
 
Fiscal Year 2013
 
(in millions, except per share data)
           
GAAP net loss ($35.0) to ($23.1)
 

Adjustments

Stock-based compensation expense $22.2 to $24.9
Intangible assets amortization expense $67.2
Merger related expense $18.1 to $20.7
 
Non-GAAP net income $77.7 to $84.4
 
GAAP loss per share ($0.83) to ($0.55)
 
Non-GAAP diluted earnings per share $1.75 to $1.90
 

« Previous Page 1 | 2 | 3 | 4  Next Page »
Featured Video
Editorial
Jobs
Manufacturing Test Engineer for Google at Prague, Czechia, Czech Republic
Mechanical Test Engineer, Platforms Infrastructure for Google at Mountain View, California
Mechanical Engineer 2 for Lam Research at Fremont, California
Mechanical Engineer 3 for Lam Research at Fremont, California
Mechanical Manufacturing Engineering Manager for Google at Sunnyvale, California
Equipment Engineer, Raxium for Google at Fremont, California
Upcoming Events
Celebrate Manufacturing Excellence at Anaheim Convention Center Anaheim CA - Feb 4 - 6, 2025
3DEXPERIENCE World 2025 at George R. Brown Convention Center Houston TX - Feb 23 - 26, 2025
TIMTOS 2025 at Nangang Exhibition Center Hall 1 & 2 (TaiNEX 1 & 2) TWTC Hall Taipei Taiwan - Mar 3 - 8, 2025
Additive Manufacturing Forum 2025 at Estrel Convention Cente Berlin Germany - Mar 17 - 18, 2025



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise