Use of Non-GAAP Financial Measures
The non-GAAP data included herein, which excludes certain items as described below, 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 (i) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, legal provisions and (ii) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets and goodwill, revaluation of our investments and the corresponding tax effect of those items. 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 statement of operations, 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 GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below.
| Stratasys Ltd. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| (in thousands, except share data) | ||||||||
September 30, |
|
December 31, |
||||||
2021 |
|
2020 |
||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ |
332,871 |
|
$ |
272,092 |
|
||
| Short-term deposits |
|
187,000 |
|
|
27,000 |
|
||
| Accounts receivable, net of allowance for credit losses of $0.7 and $0.9 million as of September 30, 2021 and December 31, 2020 |
|
121,848 |
|
|
106,068 |
|
||
| Inventories |
|
119,925 |
|
|
131,672 |
|
||
| Prepaid expenses |
|
8,634 |
|
|
6,717 |
|
||
| Other current assets |
|
27,317 |
|
|
16,943 |
|
||
| Total current assets |
|
797,595 |
|
|
560,492 |
|
||
| Non-current assets | ||||||||
| Property, plant and equipment, net |
|
199,668 |
|
|
201,232 |
|
||
| Goodwill |
|
39,750 |
|
|
35,694 |
|
||
| Other intangible assets, net |
|
117,010 |
|
|
131,569 |
|
||
| Operating lease right-of-use assets |
|
15,624 |
|
|
21,298 |
|
||
| Other non-current assets |
|
58,365 |
|
|
39,717 |
|
||
| Total non-current assets |
|
430,417 |
|
|
429,510 |
|
||
| Total assets | $ |
1,228,012 |
|
$ |
990,002 |
|
||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
48,292 |
|
$ |
16,987 |
|
||
| Accrued expenses and other current liabilities |
|
30,875 |
|
|
31,061 |
|
||
| Accrued compensation and related benefits |
|
36,983 |
|
|
25,659 |
|
||
| Deferred revenues - short term |
|
49,104 |
|
|
49,165 |
|
||
| Operating lease liabilities - short term |
|
7,514 |
|
|
9,282 |
|
||
| Total current liabilities |
|
172,768 |
|
|
132,154 |
|
||
| Non-current liabilities | ||||||||
| Deferred revenues - long term |
|
17,980 |
|
|
14,227 |
|
||
| Operating lease liabilities - long term |
|
8,353 |
|
|
12,567 |
|
||
| Contingent consideration |
|
40,589 |
|
|
37,400 |
|
||
| Other non-current liabilities |
|
37,869 |
|
|
34,059 |
|
||
| Total non-current liabilities |
|
104,791 |
|
|
98,253 |
|
||
| Total liabilities |
|
277,559 |
|
|
230,407 |
|
||
| Redeemable non-controlling interests |
|
- |
|
|
227 |
|
||
| Equity | ||||||||
| Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 65,467 thousands shares and 56,617 thousands shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively |
|
182 |
|
|
155 |
|
||
| Additional paid-in capital |
|
3,001,685 |
|
|
2,753,955 |
|
||
| Accumulated other comprehensive loss |
|
(8,372 |
) |
|
(8,846 |
) |
||
| Accumulated deficit |
|
(2,043,042 |
) |
|
(1,985,896 |
) |
||
| Total equity |
|
950,453 |
|
|
759,368 |
|
||
| Total liabilities and equity | $ |
1,228,012 |
|
$ |
990,002 |
|
||
| Stratasys Ltd. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||
| 2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
| (unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
||||||||||
| Net sales | ||||||||||||||||
| Products | $ |
108,888 |
|
$ |
83,548 |
|
$ |
299,517 |
|
$ |
240,597 |
|
||||
| Services |
|
50,121 |
|
|
44,344 |
|
|
140,686 |
|
|
137,825 |
|
||||
|
|
159,009 |
|
|
127,892 |
|
|
440,203 |
|
|
378,422 |
|
|||||
| Cost of sales | ||||||||||||||||
| Products |
|
54,820 |
|
|
47,339 |
|
|
151,471 |
|
|
126,556 |
|
||||
| Services |
|
36,001 |
|
|
30,784 |
|
|
101,697 |
|
|
98,491 |
|
||||
|
|
90,821 |
|
|
78,123 |
|
|
253,168 |
|
|
225,047 |
|
|||||
| Gross profit |
|
68,188 |
|
|
49,769 |
|
|
187,035 |
|
|
153,375 |
|
||||
| Operating expenses | ||||||||||||||||
| Research and development, net |
|
22,645 |
|
|
19,562 |
|
|
65,683 |
|
|
65,059 |
|
||||
| Selling, general and administrative |
|
67,462 |
|
|
48,343 |
|
|
184,353 |
|
|
155,630 |
|
||||
| Goodwill impairment |
|
- |
|
|
386,154 |
|
|
- |
|
|
386,154 |
|
||||
|
|
90,107 |
|
|
454,059 |
|
|
250,036 |
|
|
606,843 |
|
|||||
| Operating loss |
|
(21,919 |
) |
|
(404,290 |
) |
|
(63,001 |
) |
|
(453,468 |
) |
||||
| Financial expenses, net |
|
(634 |
) |
|
(167 |
) |
|
(1,383 |
) |
|
(847 |
) |
||||
| Loss before income taxes |
|
(22,553 |
) |
|
(404,457 |
) |
|
(64,384 |
) |
|
(454,315 |
) |
||||
| Income tax benefit |
|
699 |
|
|
343 |
|
|
6,009 |
|
|
2,250 |
|
||||
| Share in profit (loss) of associated companies |
|
3,778 |
|
|
(952 |
) |
|
1,229 |
|
|
(2,740 |
) |
||||
| Net loss |
|
(18,076 |
) |
|
(405,066 |
) |
|
(57,146 |
) |
|
(454,805 |
) |
||||
| Net loss attributable to non-controlling interests |
|
- |
|
|
(4 |
) |
|
- |
|
|
(54 |
) |
||||
| Net loss attributable to Stratasys Ltd. | $ |
(18,076 |
) |
$ |
(405,062 |
) |
$ |
(57,146 |
) |
$ |
(454,751 |
) |
||||
| Net loss per ordinary share attributable to Stratasys Ltd. | ||||||||||||||||
| Basic | $ |
(0.28 |
) |
$ |
(7.35 |
) |
$ |
(0.91 |
) |
$ |
(8.29 |
) |
||||
| Diluted | $ |
(0.28 |
) |
$ |
(7.35 |
) |
$ |
(0.91 |
) |
$ |
(8.29 |
) |
||||
| Weighted average ordinary shares outstanding | ||||||||||||||||
| Basic |
|
65,018 |
|
|
55,086 |
|
|
62,888 |
|
|
54,851 |
|
||||
| Diluted |
|
65,018 |
|
|
55,086 |
|
|
62,888 |
|
|
54,851 |
|
||||
| Three Months Ended September 30, |
|||||||||||||||||||||||||
| 2021 |
|
Non-GAAP |
|
2021 |
|
2020 |
|
Non-GAAP |
|
2020 |
|||||||||||||||
| GAAP |
|
Adjustments |
|
Non-GAAP |
|
GAAP |
|
Adjustments |
|
Non-GAAP |
|||||||||||||||
| U.S. dollars and shares in thousands (except per share amounts) |
|||||||||||||||||||||||||
| Gross profit (1) | $ |
68,188 |
|
$ |
8,507 |
|
$ |
76,695 |
$ |
49,769 |
|
$ |
10,036 |
|
$ |
59,805 |
|
||||||||
| Operating income (loss) (1,2) |
|
(21,919 |
) |
|
23,739 |
|
|
1,820 |
|
(404,290 |
) |
|
403,268 |
|
|
(1,022 |
) |
||||||||
| Net income (loss) attributable to Stratasys Ltd. (1,2,3) |
|
(18,076 |
) |
|
18,592 |
|
|
516 |
|
(405,061 |
) |
|
402,050 |
|
|
(3,011 |
) |
||||||||
| Net income (loss) per diluted share attributable to Stratasys Ltd. (4) | $ |
(0.28 |
) |
$ |
0.28 |
|
$ |
0.01 |
$ |
(7.35 |
) |
$ |
7.30 |
|
$ |
(0.05 |
) |
||||||||
| (1) |
Acquired intangible assets amortization expense |
|
5,495 |
|
|
4,065 |
|
||||||||||||||||||
|
|
Non-cash stock-based compensation expense |
|
804 |
|
|
524 |
|
||||||||||||||||||
|
|
Restructuring and other related costs |
|
67 |
|
|
191 |
|
||||||||||||||||||
|
|
Impairment charges |
|
2,141 |
|
|
5,256 |
|
||||||||||||||||||
|
|
|
8,507 |
|
|
10,036 |
|
|||||||||||||||||||
|
|
|||||||||||||||||||||||||
| (2) |
Acquired intangible assets amortization expense |
|
2,205 |
|
|
2,162 |
|
||||||||||||||||||
|
|
Non-cash stock-based compensation expense |
|
7,154 |
|
|
4,352 |
|
||||||||||||||||||
|
|
Goodwill impairment |
|
- |
|
|
386,154 |
|
||||||||||||||||||
|
|
Impairment of long-lived assets |
|
1,242 |
|
|
- |
|
||||||||||||||||||
|
|
Restructuring and other related costs |
|
210 |
|
|
34 |
|
||||||||||||||||||
|
|
Revaluation of investments |
|
2,025 |
|
|
- |
|
||||||||||||||||||
|
|
Contingent consideration |
|
197 |
|
|
- |
|
||||||||||||||||||
|
|
Legal and other expenses |
|
2,199 |
|
|
530 |
|
||||||||||||||||||
|
|
|
15,232 |
|
|
393,232 |
|
|||||||||||||||||||
|
|
|
23,739 |
|
|
403,268 |
|
|||||||||||||||||||
|
|
|||||||||||||||||||||||||
| (3) |
Corresponding tax effect |
|
(376 |
) |
|
(1,296 |
) |
||||||||||||||||||
|
|
Equity method related amortization, divestments and impairments |
|
(4,771 |
) |
|
78 |
|
||||||||||||||||||
|
|
$ |
18,592 |
|
$ |
402,050 |
|
|||||||||||||||||||
| (4) |
Weighted average number of ordinary shares outstanding- Diluted |
|
65,018 |
|
|
65,950 |
|
55,086 |
|
|
55,086 |
|
|||||||||||||
| Nine Months Ended September 30, |
||||||||||||||||||||||||||
| 2021 |
|
Non-GAAP |
|
2021 |
|
2020 |
|
Non-GAAP |
|
2020 |
||||||||||||||||
| GAAP |
|
Adjustments |
|
Non-GAAP |
|
GAAP |
|
Adjustments |
|
Non-GAAP |
||||||||||||||||
| U.S. dollars and shares in thousands (except per share amounts) |
||||||||||||||||||||||||||
| Gross profit (1) | $ |
187,035 |
|
$ |
22,192 |
|
$ |
209,227 |
|
$ |
153,375 |
|
$ |
24,062 |
|
$ |
177,437 |
|
||||||||
| Operating income (loss) (1,2) | $ |
(63,001 |
) |
$ |
59,657 |
|
$ |
(3,344 |
) |
$ |
(453,468 |
) |
$ |
435,987 |
|
$ |
(17,481 |
) |
||||||||
| Net income (loss) attributable to Stratasys Ltd. (1,2,3) | $ |
(57,146 |
) |
$ |
52,284 |
|
$ |
(4,862 |
) |
$ |
(454,751 |
) |
$ |
433,821 |
|
$ |
(20,930 |
) |
||||||||
| Net income (loss) per diluted share attributable to Stratasys Ltd. (4) | $ |
(0.91 |
) |
$ |
0.83 |
|
$ |
(0.08 |
) |
$ |
(8.29 |
) |
$ |
7.91 |
|
$ |
(0.38 |
) |
||||||||
| (1) |
Acquired intangible assets amortization expense |
|
16,368 |
|
|
12,196 |
|
|||||||||||||||||||
|
|
Non-cash stock-based compensation expense |
|
2,226 |
|
|
1,424 |
|
|||||||||||||||||||
|
|
Impairment charges |
|
2,141 |
|
|
5,256 |
|
|||||||||||||||||||
|
|
Restructuring and other related costs |
|
1,457 |
|
|
5,187 |
|
|||||||||||||||||||
|
|
|
22,192 |
|
|
24,062 |
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||||
| (2) |
Acquired intangible assets amortization expense |
|
6,598 |
|
|
6,430 |
|
|||||||||||||||||||
|
|
Non-cash stock-based compensation expense |
|
20,914 |
|
|
14,470 |
|
|||||||||||||||||||
|
|
Goodwill impairment |
|
- |
|
|
386,154 |
|
|||||||||||||||||||
|
|
Impairment of long-lived assets |
|
2,664 |
|
|
- |
|
|||||||||||||||||||
|
|
Restructuring and other related costs |
|
2,370 |
|
|
3,863 |
|
|||||||||||||||||||
|
|
Revaluation of investments |
|
556 |
|
|
- |
|
|||||||||||||||||||
|
|
Contingent consideration |
|
590 |
|
|
- |
|
|||||||||||||||||||
|
|
Legal and other expenses |
|
3,773 |
|
|
1,007 |
|
|||||||||||||||||||
|
|
|
37,465 |
|
|
411,925 |
|
||||||||||||||||||||
|
|
|
59,657 |
|
|
435,987 |
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||||
| (3) |
Corresponding tax effect |
|
(2,770 |
) |
|
(2,396 |
) |
|||||||||||||||||||
|
|
Equity method related amortization, divestments and impairments |
|
(4,603 |
) |
|
230 |
|
|||||||||||||||||||
|
|
$ |
52,284 |
|
$ |
433,821 |
|
||||||||||||||||||||
|
|
||||||||||||||||||||||||||
| (4) |
Weighted average number of ordinary shares outstanding- Diluted |
|
62,888 |
|
|
62,888 |
|
|
54,851 |
|
|
54,851 |
|
|||||||||||||
