SG&A expense of $22.6 million was down $600,000, or 3%, compared with 2018, also benefiting from the 2018 global cost realignment program, partially offset by increases in equity-based compensation, bad debts and trade show activities.

ExOne realized a $0.4 million tax benefit in 2019 primarily resulting from the completion of a tax examination.

Net loss for 2019 was $15.1 million, or $0.93 per share, compared with a $12.7 million net loss, or $0.78 per share, in 2018.

Adjusted EBITDA*, a non-GAAP measure, was a $9.1 million loss in 2019, compared with a $6.5 million loss in 2018.

Capitalization – Expanding Liquidity to Support Growth Plans

Cash, cash equivalents and restricted cash as of December 31, 2019 were $6.2 million, compared with $6.1 million at September 30, 2019 and $9.1 million at December 31, 2018. The Company generated cash in the 2019 fourth quarter and repaid the $2 million borrowed against its related party revolving credit facility during the 2019 third quarter; there were no borrowings outstanding on the $15 million related party revolving credit facility at December 31, 2019.

In the first quarter of 2020, the Company closed on a sale-leaseback transaction associated with its European headquarters and operating facility in Gersthofen, Germany. Total proceeds to the Company from the sale were approximately $18.5 million, with an initial three-year lease commitment for approximately $1.7 million per year. In a separate transaction, the Company’s related party revolving credit facility was reduced to $10 million and extended through March 2024, among other changes. These transactions expand the Company’s overall liquidity position in support of its growth plans for 2020 and beyond.

Cash used for operating activities during 2019 improved to $5.3 million, compared with $11.8 million in 2018. The $6.5 million improvement was driven by improved net working capital.

Cash capital expenditures were $0.7 million and $1.3 million in 2019 and 2018, respectively. In 2020, the Company expects cash capital expenditures between $2 million and $3 million.

Outlook – Backlog, New Products and Pipeline Point to Growth in 2020

Mr. Hartner concluded, “Macroeconomic concerns and the effect of the coronavirus are impacting the timing of customer decision-making. Nonetheless, we are encouraged by the strength of our backlog and customer acceptance of our new products. Our active pipeline of opportunities gives us optimism for growth in 2020. We remain focused on advancing our binder jetting technology and driving profitable growth.”

Webcast and Conference Call

ExOne will host a conference call and live webcast on Friday, March 13, 2020 at 8:30 a.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the 2019 fourth quarter and full year, 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 11:30 a.m. Eastern Time on the day of the teleconference through Friday, March 20, 2020. To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 13697527, or access the webcast replay via the Company’s website, where a transcript will also be posted once available.

About ExOne

ExOne is the pioneer and global leader in binder jet 3D printing technology. Since 1995, we’ve been on a mission to deliver powerful 3D printers that solve our customers’ toughest problems and enable world-changing innovations. Our 3D printing systems quickly transform powder materials — including metals, ceramics, composites and sand — into precision parts, metalcasting molds and cores, and innovative tooling solutions. Industrial customers use our technology to save time and money, reduce waste, increase their manufacturing flexibility, and deliver designs and products that were once impossible. As home to the world’s leading team of binder jetting experts, ExOne also provides specialized 3D printing services, including on-demand production of mission-critical parts, as well as engineering and design consulting. Learn more about ExOne at www.exone.com or on Twitter at @ExOneCo.

Safe Harbor Regarding Forward Looking Statements

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the Company’s future financial or business performance, strategies, or expectations. Forward-looking statements typically are identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” as well as similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could” and “may.”

The Company cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to risk factors previously disclosed in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K, the following factors, among others, could cause results to differ materially from forward-looking statements or historical performance: the Company’s ability to consistently generate operating profits; fluctuations in the Company’s revenues and operating results; the Company’s competitive environment and its competitive position; ExOne’s ability to enhance its current three-dimensional (“3D”) printing machines and technology and develop and introduce new 3D printing machines; the Company’s ability to qualify more industrial materials in which it can print; demand for ExOne’s products; the availability of skilled personnel; the impact of loss of key management; the impact of market conditions and other factors on the carrying value of long-lived assets; the Company’s ability to continue as a going concern; the impact of customer specific terms in machine sale agreements on the period in which the Company recognizes revenue; risks related to global operations including effects of the coronavirus disease COVID-19; foreign currency; the adequacy of sources of liquidity; the amount and sufficiency of funds for required capital expenditures, working capital, and debt service; dependency on certain critical suppliers; nature or impact of alliances and strategic investments; reliance on critical information technology systems; the effect of litigation, contingencies and warranty claims; 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 impact of disruption of the Company’s manufacturing facilities or ExOne Adoption Centers (“EACs”); the adequacy of ExOne’s protection of its intellectual property; and expectations regarding demand for the Company’s industrial products, operating revenues, operating and maintenance expenses, insurance expenses and deductibles, interest expenses, debt levels, and other matters with regard to outlook.

These and other important factors, including those discussed under Item 1A, “Risk Factors” and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, may cause the Company’s actual results of operations to differ materially from any future results of operations expressed or implied by the forward-looking statements contained the Company’s Annual Report on Form 10-K. Before making a decision to purchase ExOne common stock, you should carefully consider all of the factors identified in its Annual Report on Form 10-K that could cause actual results to differ from these forward-looking statements.

FINANCIAL TABLES FOLLOW.