R&D expense of $2.8 million for the quarter was up $0.8 million compared with the 2017 first quarter. The increase is in alignment with the Company’s strategy to accelerate new product development activities during 2018.
SG&A expense was $6.2 million compared with $6.3 million in the 2017 first quarter. The decrease was due to the absence of intangible asset impairment and bad debt charges incurred in the prior-year quarter, partially offset by higher personnel and consulting and professional costs.
The 2018 first quarter net loss was $6.4 million, or $0.40 per share, compared with a $6.8 million net loss, or $0.42 per share, in the first quarter of 2017. The improved net loss was principally due to higher gross profit on higher revenue, partially offset by an increase in research and development spending to support the Company’s growth strategy.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was a $4.5 million loss in the 2018 first quarter, compared with a $3.8 million loss in last year’s first quarter. ExOne management believes that, when used in conjunction with other measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), Adjusted EBITDA assists in the understanding of its financial results. See the attached tables for important disclosures regarding the Company’s use of Adjusted EBITDA as well as a reconciliation of net loss (most directly comparable GAAP measure) to Adjusted EBITDA for the quarters ended March 31, 2018 and 2017.
Capitalization – Cash Invested in Inventory Production to Support Growth
Cash, cash equivalents and restricted cash as of March 31, 2018 were $16.9 million, compared with $22.2 million at December 31, 2017. Cash used for operating activities in the 2018 first quarter was $4.8 million, compared with cash provided by operating activities of $0.2 million in the first quarter of 2017. The use of cash included an increase of $3.5 million in inventories to support the Company’s higher backlog and anticipated growth in 2018. Cash capital expenditures were $0.5 million and $0.2 million in the 2018 and 2017 first quarters, respectively. In 2018, the Company expects cash capital expenditures of $1 to $1.5 million.
Outlook – Reaffirming 2018 Revenue Growth and Additional R&D Expectations
Mr. McCarley concluded, “Our outlook for the remainder of 2018 and beyond remains positive. It is driven by the expanding level of adoption we are seeing in both binder jetting printing activity and ExOne’s binder jetting printing technology. There is a strong pull emerging in the market place for binder jetting technology and this gives us confidence that accelerating our investments and improving our responsiveness to our customers’ demands, creates a clear path for ExOne to achieve sustainable and profitable growth in 2019.”
Webcast and Conference Call
ExOne will host a conference call and live webcast on Thursday, May 10 at 4:45 p.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the 2018 first quarter, along with ExOne’s corporate strategies and outlook. A question-and-answer session will follow. The teleconference can be accessed by calling (201) 689-8470. The webcast can be monitored on the Company’s website at www.investor.exone.com/.
A telephonic replay of the conference call will be available from 7:45 p.m. ET on the day of the teleconference through Thursday, May 17, 2018. To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 13678636, or access the webcast replay via the Company’s website, where a transcript will also be posted once available.
About ExOne
ExOne is a global provider of 3D printing machines and 3D printed and other products, materials and services 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 installed base of 3D printing machines. ExOne’s machines serve direct and indirect applications. Direct printing produces a component; indirect printing makes a tool to produce a component. ExOne offers pre-production collaboration and print products for customers through its network of ExOne Adoption Centers (EACs) and Production Service Centers (PSCs). ExOne also supplies the associated materials, including consumables and replacement parts, and other services, including training and technical support that is necessary for purchasers of its 3D printing machines to print products. The Company believes that its ability to print in a variety of industrial materials, as well as its industry-leading volumetric output (as measured by build box size and printing speed) uniquely position ExOne to serve the needs of industrial customers.
Safe Harbor Regarding Forward Looking Statements
