Use of non-GAAP financial measures
The non-GAAP data included herein, which exclude certain items as described herein, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our company in gauging our results of operations (x) on an ongoing basis after excluding merger and acquisition related expense and reorganization-related charges, and (y) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, impairment of goodwill and other long-lived assets, changes in fair value of obligations in connection with acquisitions and the corresponding tax effect of those items, as well as, non-recurring changes of non-cash valuation allowance on deferred tax assets. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the income statement, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with U.S. GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below.
Stratasys Ltd. | ||||||||
Consolidated Balance Sheets | ||||||||
(in thousands, except share data) | ||||||||
June 30, | December 31, | |||||||
2016 | 2015 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 253,882 | $ | 257,592 | ||||
Short-term bank deposits | - | 571 | ||||||
Accounts receivable, net | 113,327 | 123,215 | ||||||
Inventories | 125,686 | 123,658 | ||||||
Net investment in sales-type leases | 12,269 | 11,704 | ||||||
Prepaid expenses | 7,177 | 8,469 | ||||||
Other current assets | 21,465 | 21,864 | ||||||
Total current assets | 533,806 | 547,073 | ||||||
Non-current assets | ||||||||
Goodwill | 386,313 | 383,853 | ||||||
Other intangible assets, net | 222,324 | 252,468 | ||||||
Property, plant and equipment, net | 209,299 | 201,934 | ||||||
Net investment in sales-type leases - long term | 16,733 | 17,785 | ||||||
Deferred income taxes and other non-current assets | 31,102 | 11,243 | ||||||
Total non-current assets | 865,771 | 867,283 | ||||||
Total assets | $ | 1,399,577 | $ | 1,414,356 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 42,866 | $ | 39,021 | ||||
Accrued expenses and other current liabilities | 31,599 | 31,314 | ||||||
Accrued compensation and related benefits | 38,646 | 34,052 | ||||||
Income taxes payable | 4,616 | 11,395 | ||||||
Obligations in connection with acquisitions | 4,781 | 4,636 | ||||||
Deferred revenues | 51,974 | 52,309 | ||||||
Total current liabilities | 174,482 | 172,727 | ||||||
Non-current liabilities | ||||||||
Obligations in connection with acquisitions - long term | 4,349 | 4,354 | ||||||
Deferred tax liabilities | 11,910 | 16,040 | ||||||
Deferred revenues - long-term | 10,635 | 7,627 | ||||||
Other non-current liabilities | 36,747 | 22,428 | ||||||
Total non-current liabilities | 63,641 | 50,449 | ||||||
Total liabilities | 238,123 | 223,176 | ||||||
Redeemable non-controlling interests | 2,193 | 2,379 | ||||||
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Equity | ||||||||
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 52,218 thousands shares and 52,082 thousands shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively |
141 | 141 | ||||||
Additional paid-in capital | 2,617,284 | 2,605,957 | ||||||
Accumulated deficit | (1,448,337 | ) | (1,406,706 | ) | ||||
Accumulated other comprehensive loss | (10,003 | ) | (10,774 | ) | ||||
Equity attributable to Stratasys Ltd. | 1,159,085 | 1,188,618 | ||||||
Non-controlling interest | 176 | 183 | ||||||
Total equity | 1,159,261 | 1,188,801 | ||||||
Total liabilities and equity | $ | 1,399,577 | $ | 1,414,356 | ||||
Stratasys Ltd. | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
Net sales | ||||||||||||||||
Products | $ | 123,758 | $ | 134,490 | $ | 242,392 | $ | 261,157 | ||||||||
Services | 48,315 | 47,832 | 97,587 | 93,896 | ||||||||||||
172,073 | 182,322 | 339,979 | 355,053 | |||||||||||||
Cost of sales | ||||||||||||||||
Products | 61,413 | 67,666 | 118,351 | 166,037 | ||||||||||||
Services | 31,128 | 31,748 | 60,927 | 60,020 | ||||||||||||
92,541 | 99,414 | 179,278 | 226,057 | |||||||||||||
Gross profit | 79,532 | 82,908 | 160,701 | 128,996 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development, net | 24,366 | 25,506 | 49,481 | 52,744 | ||||||||||||
Selling, general and administrative | 72,884 | 97,581 | 149,271 | 200,189 | ||||||||||||
Goodwill impairment | - | - | - | 150,400 | ||||||||||||
Change in the fair value of obligations in connection with acquisitions | (587 | ) | (6,680 | ) | 140 | (19,936 | ) | |||||||||
96,663 | 116,407 | 198,892 | 383,397 | |||||||||||||
Operating loss | (17,131 | ) | (33,499 | ) | (38,191 | ) | (254,401 | ) | ||||||||
Financial income (expenses), net | 932 | (711 | ) | 1,112 | (5,835 | ) | ||||||||||
Loss before income taxes | (16,199 | ) | (34,210 | ) | (37,079 | ) | (260,236 | ) | ||||||||
Income taxes | 2,454 | (11,066 | ) | 4,745 | (20,688 | ) | ||||||||||
Net loss | (18,653 | ) | (23,144 | ) | (41,824 | ) | (239,548 | ) | ||||||||
Net loss attributable to non-controlling interest | (163 | ) | (213 | ) | (193 | ) | (329 | ) | ||||||||
Net loss attributable to Stratasys Ltd. | $ | (18,490 | ) | $ | (22,931 | ) | $ | (41,631 | ) | $ | (239,219 | ) | ||||
Net loss per ordinary share attributable to Stratasys Ltd. | ||||||||||||||||
Basic | $ | (0.35 | ) | $ | (0.48 | ) | $ | (0.80 | ) | $ | (4.71 | ) | ||||
Diluted | (0.36 | ) | (0.55 | ) | (0.80 | ) | (4.77 | ) | ||||||||
Weighted average ordinary shares outstanding | ||||||||||||||||
Basic | 52,169 | 51,405 | 52,133 | 51,181 | ||||||||||||
Diluted | 52,496 | 51,870 | 52,133 | 51,413 | ||||||||||||