| Stratasys Ltd. | ||||||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
| Net sales | ||||||||||||||||||||
| Products | $ | 154,090 | $ | 90,213 | $ | 283,342 | $ | 172,023 | ||||||||||||
| Services | 24,375 | 16,272 | 46,064 | 31,669 | ||||||||||||||||
| 178,465 | 106,485 | 329,406 | 203,692 | |||||||||||||||||
| Cost of sales | ||||||||||||||||||||
| Products | 73,394 | 45,731 | 134,416 | 94,774 | ||||||||||||||||
| Services | 13,437 | 10,349 | 25,628 | 21,139 | ||||||||||||||||
| 86,831 | 56,080 | 160,044 | 115,913 | |||||||||||||||||
| Gross profit | 91,634 | 50,405 | 169,362 | 87,779 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Research and development, net | 18,957 | 10,337 | 35,728 | 21,126 | ||||||||||||||||
| Selling, general and administrative | 77,929 | 42,665 | 145,546 | 85,990 | ||||||||||||||||
| Change in fair value of earn-out obligations | 628 | - | (6,867 | ) | - | |||||||||||||||
| 97,514 | 53,002 | 174,407 | 107,116 | |||||||||||||||||
| Operating loss | (5,880 | ) | (2,597 | ) | (5,045 | ) | (19,337 | ) | ||||||||||||
| Other income (loss) | 337 | 138 | (999 | ) | 652 | |||||||||||||||
| Loss before income taxes | (5,543 | ) | (2,459 | ) | (6,044 | ) | (18,685 | ) | ||||||||||||
| Income taxes (benefit) | (5,370 | ) | 326 | (9,958 | ) | (417 | ) | |||||||||||||
| Net income (loss) | $ | (173 | ) | $ | (2,785 | ) | $ | 3,914 | $ | (18,268 | ) | |||||||||
| Net income attributable to non-controlling interest | $ | - | $ | 15 | $ | - | $ | 68 | ||||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | (173 | ) | $ | (2,800 | ) | $ | 3,914 | $ | (18,336 | ) | |||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | ||||||||||||||||||||
| Basic | $ | (0.00 | ) | $ | (0.07 | ) | $ | 0.08 | $ | (0.47 | ) | |||||||||
| Diluted | (0.00 | ) | (0.07 | ) | 0.08 | (0.47 | ) | |||||||||||||
| Weighted average ordinary shares outstanding | ||||||||||||||||||||
| Basic | 49,373 | 38,781 | 49,323 | 38,637 | ||||||||||||||||
| Diluted | 49,373 | 38,781 | 51,238 | 38,637 | ||||||||||||||||
| Stratasys Ltd. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
|
June 30, |
December 31, | |||||||
| 2014 | 2013 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 502,314 | $ | 414,088 | ||||
| Short-term bank deposits | 75,622 | 200,370 | ||||||
| Accounts receivable, net | 113,583 | 99,200 | ||||||
| Inventories | 114,346 | 88,406 | ||||||
| Investment in sales-type leases, net | 6,651 | 6,696 | ||||||
| Prepaid expenses | 7,966 | 5,470 | ||||||
| Deferred income taxes | 22,448 | 16,501 | ||||||
| Other current assets | 25,325 | 21,398 | ||||||
| Total current assets | 868,255 | 852,129 | ||||||
| Non-current assets | ||||||||
| Goodwill | 1,203,296 | 1,195,891 | ||||||
| Other intangible assets, net | 587,566 | 622,330 | ||||||
| Investment in sales-type leases | 13,007 | 11,219 | ||||||
|
Amounts funded in respect of employee rights upon retirement |
3,369 | 3,166 | ||||||
| Property, plant and equipment, net | 110,848 | 91,005 | ||||||
| Other non-current assets | 4,827 | 6,481 | ||||||
| Total non-current assets | 1,922,913 | 1,930,092 | ||||||
| Total assets | $ | 2,791,168 | $ | 2,782,221 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 38,856 | $ | 35,375 | ||||
| Accrued expenses and other current liabilities | 32,919 | 32,849 | ||||||
| Accrued compensation and related benefits | 27,427 | 21,441 | ||||||
| Earn-out obligation | 11,458 | 12,027 | ||||||
| Unearned revenues | 41,895 | 36,033 | ||||||
| Total current liabilities | 152,555 | 137,725 | ||||||
| Non-current liabilities | ||||||||
| Employee rights upon retirement | 4,999 | 4,683 | ||||||
| Earn-out obligation - long-term | - | 16,998 | ||||||
| Deferred tax liabilities | 97,955 | 105,901 | ||||||
| Unearned revenues - long-term | 4,618 | 3,315 | ||||||
| Other non-current liabilities | 10,870 | 13,812 | ||||||
| Total liabilities | 270,997 | 282,434 | ||||||
| Equity | ||||||||
|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 shares; 49,436 and 49,211 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively |
134 | 133 | ||||||
| Additional paid-in capital | 2,428,978 | 2,412,197 | ||||||
| Retained earnings | 89,463 | 85,549 | ||||||
| Accumulated other comprehensive income | 1,596 | 1,908 | ||||||
| Total equity | 2,520,171 | 2,499,787 | ||||||
| Total liabilities and equity | $ | 2,791,168 | $ | 2,782,221 | ||||
| Stratasys Ltd. | ||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results of Operations | ||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||
| Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | |||||||||||||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | |||||||||||||||||||
| (unaudited) | Adjustments* | (unaudited) | (unaudited) | Adjustments* | (unaudited) | |||||||||||||||||
| Net sales | ||||||||||||||||||||||
| Products | $ | 154,090 | $ | - | $ | 154,090 | $ | 90,213 | $ | 199 | $ | 90,412 | ||||||||||
| Services | 24,375 | - | 24,375 | 16,272 | - | 16,272 | ||||||||||||||||
| 178,465 | - | 178,465 | 106,485 | 199 | 106,684 | |||||||||||||||||
| Cost of sales | ||||||||||||||||||||||
| Products | 73,394 | (14,739 | ) | 58,655 | 45,731 | (12,171 | ) | 33,560 | ||||||||||||||
| Services | 13,437 | (340 | ) | 13,097 | 10,349 | (343 | ) | 10,006 | ||||||||||||||
| 86,831 | (15,079 | ) | 71,752 | 56,080 | (12,514 | ) | 43,566 | |||||||||||||||
| Gross profit | 91,634 | 15,079 | 106,713 | 50,405 | 12,713 | 63,118 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||||
| Research and development, net | 18,957 | (1,318 | ) | 17,639 | 10,337 | (846 | ) | 9,491 | ||||||||||||||
| Selling, general and administrative | 77,929 | (17,617 | ) | 60,312 | 42,665 | (10,748 | ) | 31,917 | ||||||||||||||
| Change in fair value of earn-out obligations | 628 | (628 | ) | - | - | - | ||||||||||||||||
| 97,514 | (19,563 | ) | 77,951 | 53,002 | (11,594 | ) | 41,408 | |||||||||||||||
| Operating income (loss) | (5,880 | ) | 34,642 | 28,762 | (2,597 | ) | 24,307 | 21,710 | ||||||||||||||
| Other income | 337 | - | 337 | 138 | - | 138 | ||||||||||||||||
| Income (loss) before income taxes | (5,543 | ) | 34,642 | 29,099 | (2,459 | ) | 24,307 | 21,848 | ||||||||||||||
| Income taxes (benefit) | (5,370 | ) | 6,475 | 1,105 | 326 | 2,916 | 3,242 | |||||||||||||||
| Net income (loss) | $ | (173 | ) | $ | 28,167 | $ | 27,994 | $ | (2,785 | ) | $ | 21,391 | $ | 18,606 | ||||||||
| Net income attributable to non-controlling interest | $ | - | $ | - | $ | - | $ | 15 | $ | 25 | $ | 40 | ||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | (173 | ) | $ | 28,167 | $ | 27,994 | $ | (2,800 | ) | $ | 21,366 | $ | 18,566 | ||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | ||||||||||||||||||||||
| Basic | $ | (0.00 | ) | $ | 0.57 | $ | (0.07 | ) | $ | 0.48 | ||||||||||||
| Diluted | (0.00 | ) | 0.55 | (0.07 | ) | 0.45 | ||||||||||||||||
| Weighted average ordinary shares outstanding | ||||||||||||||||||||||
| Basic | 49,373 | 49,373 | 38,781 | 38,781 | ||||||||||||||||||
| Diluted | 49,373 | 51,196 | 38,781 | 41,146 | ||||||||||||||||||
|
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 GAAP to Non-GAAP Results of Operations | |||||||||||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||||||||
| Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
| GAAP | Non-GAAP | GAAP | Non-GAAP | ||||||||||||||||||||||||||
| (unaudited) | Adjustments* | (unaudited) | (unaudited) | Adjustments* | (unaudited) | ||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Products | $ | 283,342 | $ | 235 | $ | 283,577 | $ | 172,023 | $ | 1,214 | $ | 173,237 | |||||||||||||||||
| Services | 46,064 | - | 46,064 | 31,669 | - | 31,669 | |||||||||||||||||||||||
| 329,406 | 235 | 329,641 | 203,692 | 1,214 | 204,906 | ||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||
| Products | 134,416 | (28,468 | ) | 105,948 | 94,774 | (31,348 | ) | 63,426 | |||||||||||||||||||||
| Services | 25,628 | (774 | ) | 24,854 | 21,139 | (685 | ) | 20,454 | |||||||||||||||||||||
| 160,044 | (29,242 | ) | 130,802 | 115,913 | (32,033 | ) | 83,880 | ||||||||||||||||||||||
| Gross profit | 169,362 | 29,477 | 198,839 | 87,779 | 33,247 | 121,026 | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Research and development, net | 35,728 | (2,813 | ) | 32,915 | 21,126 | (1,745 | ) | 19,381 | |||||||||||||||||||||
| Selling, general and administrative | 145,546 | (31,140 | ) | 114,406 | 85,990 | (26,356 | ) | 59,634 | |||||||||||||||||||||
| Change in fair value of earn-out obligations | (6,867 | ) | 6,867 | - | - | - | - | ||||||||||||||||||||||
| 174,407 | (27,086 | ) | 147,321 | 107,116 | (28,101 | ) | 79,015 | ||||||||||||||||||||||
| Operating income (loss) | (5,045 | ) | 56,563 | 51,518 | (19,337 | ) | 61,348 | 42,011 | |||||||||||||||||||||
| Other income (loss) | (999 | ) | - | (999 | ) | 652 | - | 652 | |||||||||||||||||||||
| Income (loss) before income taxes | (6,044 | ) | 56,563 | 50,519 | (18,685 | ) | 61,348 | 42,663 | |||||||||||||||||||||
| Income taxes (benefit) | (9,958 | ) | 11,884 | 1,926 | (417 | ) | 6,802 | 6,385 | |||||||||||||||||||||
| Net income (loss) | $ | 3,914 | $ | 44,679 | $ | 48,593 | $ | (18,268 | ) | $ | 54,546 | $ | 36,278 | ||||||||||||||||
| Net income attributable to non-controlling interest | $ | - | $ | - | $ | - | $ | 68 | $ | 65 | $ | 133 | |||||||||||||||||
| Net income (loss) attributable to Stratasys Ltd. | $ | 3,914 | $ | 44,679 | $ | 48,593 | $ | (18,336 | ) | $ | 54,481 | $ | 36,145 | ||||||||||||||||
| Net income (loss) per ordinary share attributable to Stratasys Ltd. | |||||||||||||||||||||||||||||
| Basic | $ | 0.08 | $ | 0.99 | $ | (0.47 | ) | $ | 0.94 | ||||||||||||||||||||
| Diluted | 0.08 | 0.95 | (0.47 | ) | 0.88 | ||||||||||||||||||||||||
| Weighted average ordinary shares outstanding | |||||||||||||||||||||||||||||
| Basic | 49,323 | 49,323 | 38,637 | 38,637 | |||||||||||||||||||||||||
| Diluted | 51,238 | 51,221 | 38,637 | 41,111 | |||||||||||||||||||||||||
|
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
| Net sales, products | ||||||||||||||||||||
| Deferred revenue step-up | $ | - | $ | 199 | $ | 235 | $ | 1,214 | ||||||||||||
| Cost of sales, products | ||||||||||||||||||||
| Acquired intangible assets amortization | (14,029 | ) | (11,780 | ) | (27,254 | ) | (30,542 | ) | ||||||||||||
| Non-cash stock-based compensation expense | (710 | ) | (314 | ) | (1,214 | ) | (633 | ) | ||||||||||||
| Merger related expense | - | (77 | ) | - | (173 | ) | ||||||||||||||
| (14,739 | ) | (12,171 | ) | (28,468 | ) | (31,348 | ) | |||||||||||||
| Cost of sales, services | ||||||||||||||||||||
| Non-cash stock-based compensation expense | (324 | ) | (318 | ) | (732 | ) | (633 | ) | ||||||||||||
| Merger related expense | (16 | ) | (25 | ) | (42 | ) | (52 | ) | ||||||||||||
| (340 | ) | (343 | ) | (774 | ) | (685 | ) | |||||||||||||
| Research and development, net | ||||||||||||||||||||
| Non-cash stock-based compensation expense | (885 | ) | (846 | ) | (1,823 | ) | (1,745 | ) | ||||||||||||
| Performance bonus expense | (347 | ) | - | (904 | ) | - | ||||||||||||||
| Merger related expense | (86 | ) | (86 | ) | ||||||||||||||||
| (1,318 | ) | (846 | ) | (2,813 | ) | (1,745 | ) | |||||||||||||
| Selling, general and administrative | ||||||||||||||||||||
| Acquired intangible assets amortization | (5,507 | ) | (2,425 | ) | (10,871 | ) | (7,886 | ) | ||||||||||||
| Non-cash stock-based compensation expense | (5,159 | ) | (3,881 | ) | (10,045 | ) | (7,839 | ) | ||||||||||||
| Merger and acquisition related expense | (4,352 | ) | (4,442 | ) | (5,836 | ) | (10,631 | ) | ||||||||||||
| Performance bonus expense | (2,599 | ) | - | (4,388 | ) | - | ||||||||||||||
| (17,617 | ) | (10,748 | ) | (31,140 | ) | (26,356 | ) | |||||||||||||
| Change in fair value of earn-out obligation | ||||||||||||||||||||
| Change in Earn-out obligation | (628 | ) | - | 6,867 | - | |||||||||||||||
| Income taxes | ||||||||||||||||||||
| Tax expense related to non-GAAP adjustments | 6,475 | 2,916 | 11,884 | 6,802 | ||||||||||||||||
| Net income attributable to non-controlling interest | ||||||||||||||||||||
| Depreciation and amortization expense attributable to non-controlling interest | - | 25 | - | 65 | ||||||||||||||||
| Net income | $ | 28,167 | $ | 21,366 | $ | 44,679 | $ | 54,481 | ||||||||||||
