Proto Labs, Inc. Condensed Consolidated Balance Sheets (In thousands) |
|||||
|
|||||
|
|
|
|
||
|
March 31,
|
|
December 31,
|
||
|
(Unaudited) |
|
|
||
Assets |
|
|
|
||
Current assets |
|
|
|
||
Cash and cash equivalents |
$ |
92,804 |
|
$ |
83,790 |
Short-term marketable securities |
|
16,875 |
|
|
19,013 |
Accounts receivable, net |
|
77,849 |
|
|
72,848 |
Inventory |
|
12,823 |
|
|
13,657 |
Income taxes receivable |
|
644 |
|
|
2,228 |
Prepaid expenses and other current assets |
|
9,425 |
|
|
9,124 |
Total current assets |
|
210,420 |
|
|
200,660 |
|
|
|
|
||
Property and equipment, net |
|
247,798 |
|
|
253,655 |
Goodwill |
|
273,991 |
|
|
273,991 |
Other intangible assets, net |
|
24,407 |
|
|
25,584 |
Long-term marketable securities |
|
3,257 |
|
|
8,019 |
| Operating lease assets |
|
4,185 |
|
|
4,628 |
| Finance lease assets |
|
893 |
|
|
960 |
| Other long-term assets |
|
4,852 |
|
|
4,856 |
| Total assets |
$ |
769,803 |
|
$ |
772,353 |
|
|
|
|
|
||
| Liabilities and shareholders' equity |
|
|
|
||
| Current liabilities |
|
|
|
||
| Accounts payable |
$ |
15,256 |
|
$ |
15,636 |
| Accrued compensation |
|
16,239 |
|
|
15,292 |
| Accrued liabilities and other |
|
21,216 |
|
|
16,872 |
| Current operating lease liabilities |
|
1,549 |
|
|
1,585 |
| Current finance lease liabilities |
|
299 |
|
|
296 |
| Income taxes payable |
|
3,877 |
|
|
— |
| Total current liabilities |
|
58,436 |
|
|
49,681 |
|
|
|
|
|
||
| Long-term operating lease liabilities |
|
2,588 |
|
|
3,008 |
| Long-term finance lease liabilities |
|
519 |
|
|
595 |
| Long-term deferred tax liabilities |
|
16,482 |
|
|
18,742 |
| Other long-term liabilities |
|
4,468 |
|
|
5,032 |
|
|
|
|
|
||
| Shareholders' equity |
|
687,310 |
|
|
695,295 |
| Total liabilities and shareholders' equity |
$ |
769,803 |
|
$ |
772,353 |
|
|
|
|
|
||
|
|
|
|
|
||
| Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) |
|||||
|
|
|||||
|
|
|
|
|
||
|
|
Three Months Ended
|
||||
|
|
2024 |
|
2023 |
||
| Revenue |
|
|
|
||
| Injection Molding |
$ |
52,663 |
|
$ |
51,948 |
| CNC Machining |
|
49,932 |
|
|
48,104 |
| 3D Printing |
|
21,582 |
|
|
21,325 |
| Sheet Metal |
|
3,553 |
|
|
4,248 |
| Other Revenue |
|
160 |
|
|
234 |
| Total Revenue |
|
127,890 |
|
|
125,859 |
|
|
|
|
|
||
| Cost of revenue |
|
70,423 |
|
|
72,083 |
| Gross profit |
|
57,467 |
|
|
53,776 |
|
|
|
|
|
||
| Operating expenses |
|
|
|
||
| Marketing and sales |
|
23,160 |
|
|
22,451 |
| Research and development |
|
11,167 |
|
|
10,677 |
| General and administrative |
|
16,313 |
|
|
16,833 |
| Closure of Japan business |
|
— |
|
|
66 |
| Total operating expenses |
|
50,640 |
|
|
50,027 |
| Income from operations |
|
6,827 |
|
|
3,749 |
| Other income, net |
|
899 |
|
|
1,290 |
| Income before income taxes |
|
7,726 |
|
|
5,039 |
| Provision for income taxes |
|
2,458 |
|
|
2,380 |
| Net income |
$ |
5,268 |
|
$ |
2,659 |
|
|
|
|
|
||
| Net income per share: |
|
|
|
||
| Basic |
$ |
0.21 |
|
$ |
0.10 |
| Diluted |
$ |
0.20 |
|
$ |
0.10 |
|
|
|
|
|
||
| Shares used to compute net income per share: |
|
|
|
||
| Basic |
|
25,624,949 |
|
|
26,580,279 |
| Diluted |
|
25,784,987 |
|
|
26,605,787 |
|
|
|
|
|
||
| Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
|
|||||||
|
|
|
|
|
||||
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
| Operating activities |
|
|
|
||||
| Net income |
$ |
5,268 |
|
|
$ |
2,659 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
| Depreciation and amortization |
|
9,103 |
|
|
|
9,388 |
|
| Stock-based compensation expense |
|
4,276 |
|
|
|
3,695 |
|
| Deferred taxes |
|
(2,247 |
) |
|
|
(3,096 |
) |
| Interest on finance lease obligations |
|
10 |
|
|
|
287 |
|
| Gain on disposal of property and equipment |
|
(22 |
) |
|
|
— |
|
| Other |
|
63 |
|
|
|
(46 |
) |
| Changes in operating assets and liabilities |
|
4,887 |
|
|
|
9,691 |
|
| Net cash provided by operating activities |
|
21,338 |
|
|
|
22,578 |
|
|
|
|
|
|
||||
| Investing activities |
|
|
|
||||
| Purchases of property, equipment and other capital assets |
|
(2,587 |
) |
|
|
(3,441 |
) |
| Proceeds from sales of property, equipment and other capital assets |
|
22 |
|
|
|
194 |
|
| Proceeds from call redemptions and maturities of marketable securities |
|
6,984 |
|
|
|
7,630 |
|
| Net cash provided by investing activities |
|
4,419 |
|
|
|
4,383 |
|
|
|
|
|
|
||||
| Financing activities |
|
|
|
||||
| Purchases of shares withheld for tax obligations |
|
(533 |
) |
|
|
(401 |
) |
| Repurchases of common stock |
|
(16,013 |
) |
|
|
(21,119 |
) |
| Principal repayments of finance lease obligations |
|
(73 |
) |
|
|
(82 |
) |
| Net cash used in financing activities |
|
(16,619 |
) |
|
|
(21,602 |
) |
| Effect of exchange rate changes on cash and cash equivalents |
|
(124 |
) |
|
|
134 |
|
| Net increase in cash and cash equivalents |
|
9,014 |
|
|
|
5,493 |
|
| Cash and cash equivalents, beginning of period |
|
83,790 |
|
|
|
56,558 |
|
| Cash and cash equivalents, end of period |
$ |
92,804 |
|
|
$ |
62,051 |
|
|
|
|
|
|
||||
| Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
| Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities |
|
|
|
||||
| GAAP net income |
$ |
5,268 |
|
|
$ |
2,659 |
|
| Add back: |
|
|
|
||||
| Stock-based compensation expense |
|
4,276 |
|
|
|
3,695 |
|
| Amortization expense |
|
987 |
|
|
|
1,526 |
|
| Unrealized (gain) loss on foreign currency |
|
237 |
|
|
|
(71 |
) |
| Costs related to Japan closure activities |
|
— |
|
|
|
66 |
|
| Total adjustments 1 |
|
5,500 |
|
|
|
5,216 |
|
| Income tax benefits on adjustments 2 |
|
(354 |
) |
|
|
(2 |
) |
| Non-GAAP net income |
$ |
10,414 |
|
|
$ |
7,873 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
| Non-GAAP net income per share: |
|
|
|
||||
| Basic |
$ |
0.41 |
|
|
$ |
0.30 |
|
| Diluted |
$ |
0.40 |
|
|
$ |
0.30 |
|
|
|
|
|
|
||||
| Shares used to compute non-GAAP net income per share: |
|
|
|
||||
| Basic |
|
25,624,949 |
|
|
|
26,580,279 |
|
| Diluted |
|
25,784,987 |
|
|
|
26,605,787 |
|
|
|
|
|
|
||||
| 1 |
Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and costs related to Japan closure activities were included in the following GAAP consolidated statement of operations categories: |
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
|||
|
|
|
|
|
|||
| Cost of revenue |
$ |
801 |
|
$ |
808 |
|
|
|
|
|
|
|||
| Marketing and sales |
|
833 |
|
|
692 |
|
| Research and development |
|
692 |
|
|
572 |
|
| General and administrative |
|
2,937 |
|
|
3,149 |
|
| Closure of Japan business |
|
— |
|
|
66 |
|
| Total operating expenses |
|
4,462 |
|
|
4,479 |
|
|
|
|
|
|
|||
| Other income (loss), net |
|
237 |
|
|
(71 |
) |
| Total adjustments |
$ |
5,500 |
|
$ |
5,216 |
|
| 2 |
For the three months ended March 31, 2024 and 2023, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. The Company's non-GAAP tax rates differ from its GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter. |
|
|
|||||||
| Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Gross Margin (In thousands) (Unaudited) |
|||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
Three Months Ended
|
|||||||
|
|
2024 |
|
2023 |
||||
| Revenue |
$ |
127,890 |
|
|
$ |
125,859 |
|
| Gross profit |
|
57,467 |
|
|
|
53,776 |
|
| GAAP gross margin |
|
44.9 |
% |
|
|
42.7 |
% |
| Add back: |
|
|
|
||||
| Stock-based compensation expense |
|
459 |
|
|
|
466 |
|
| Amortization expense |
|
342 |
|
|
|
342 |
|
| Total adjustments |
|
801 |
|
|
|
808 |
|
| Non-GAAP gross profit |
$ |
58,268 |
|
|
$ |
54,584 |
|
| Non-GAAP gross margin |
|
45.6 |
% |
|
|
43.4 |
% |
|
|
|||||||
| Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) |
|||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
| Revenue |
$ |
127,890 |
|
|
$ |
125,859 |
|
| Income from operations |
|
6,827 |
|
|
|
3,749 |
|
| GAAP operating margin |
|
5.3 |
% |
|
|
3.0 |
% |
| Add back: |
|
|
|
||||
| Stock-based compensation expense |
|
4,276 |
|
|
|
3,695 |
|
| Amortization expense |
|
987 |
|
|
|
1,526 |
|
| Costs related to Japan closure activities |
|
— |
|
|
|
66 |
|
| Total adjustments |
|
5,263 |
|
|
|
5,287 |
|
| Non-GAAP income from operations |
$ |
12,090 |
|
|
$ |
9,036 |
|
| Non-GAAP operating margin |
|
9.5 |
% |
|
|
7.2 |
% |
|
|
|
|
|
||||
| Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
| Revenue |
$ |
127,890 |
|
|
$ |
125,859 |
|
| GAAP net income |
|
5,268 |
|
|
|
2,659 |
|
| GAAP net income margin |
|
4.1 |
% |
|
|
2.1 |
% |
| Add back: |
|
|
|
||||
| Amortization expense |
$ |
987 |
|
|
$ |
1,526 |
|
| Depreciation expense |
|
8,116 |
|
|
|
7,862 |
|
| Interest income, net |
|
(1,112 |
) |
|
|
(350 |
) |
| Provision for income taxes |
|
2,458 |
|
|
|
2,380 |
|
| EBITDA |
|
15,717 |
|
|
|
14,077 |
|
| EBITDA Margin |
|
12.3 |
% |
|
|
11.2 |
% |
| Add back: |
|
|
|
||||
| Stock-based compensation expense |
|
4,276 |
|
|
|
3,695 |
|
| Unrealized (gain) loss on foreign currency |
|
237 |
|
|
|
(71 |
) |
| Costs related to Japan closure activities |
|
— |
|
|
|
66 |
|
| Total adjustments |
|
4,513 |
|
|
|
3,690 |
|
| Adjusted EBITDA |
$ |
20,230 |
|
|
$ |
17,767 |
|
| Adjusted EBITDA Margin |
|
15.8 |
% |
|
|
14.1 |
% |
|
|
|
|
|||||
| Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth by Region (In thousands) (Unaudited) |
||||||||||||||||||
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
%
|
|
% Change
|
|||||||||||
|
|
GAAP |
|
Foreign
|
|
Non-GAAP |
|
GAAP |
|
|
|||||||||
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||
| United States |
$ |
101,481 |
|
$ |
— |
|
|
$ |
101,481 |
|
$ |
97,746 |
|
3.8 |
% |
|
3.8 |
% |
| Europe |
|
26,409 |
|
|
(907 |
) |
|
|
25,502 |
|
|
28,113 |
|
(6.1 |
%) |
|
(9.3 |
%) |
| Total revenue |
$ |
127,890 |
|
$ |
(907 |
) |
|
$ |
126,983 |
|
$ |
125,859 |
|
1.6 |
% |
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
| 1 |
Revenue for the three months ended March 31, 2024 has been recalculated using 2023 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. |
| 2 |
This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to GAAP revenue for the three months ended March 31, 2024. |
| 3 |
This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to non-GAAP revenue for the three months ended March 31, 2024 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2023) in order to provide a constant-currency comparison. |
|
|
||||||||||||||||||
| Proto Labs, Inc.
Comparison of GAAP to Non-GAAP Revenue Growth by Service Line (In thousands) (Unaudited) |
||||||||||||||||||
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
%
|
|
% Change
|
|||||||||||
|
|
GAAP |
|
Foreign
|
|
Non-GAAP |
|
GAAP |
|
|
|||||||||
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||
| Injection Molding |
$ |
52,663 |
|
$ |
(408 |
) |
|
$ |
52,255 |
|
$ |
51,948 |
|
1.4 |
% |
|
0.6 |
% |
| CNC Machining |
|
49,932 |
|
|
(308 |
) |
|
|
49,624 |
|
|
48,104 |
|
3.8 |
|
|
3.2 |
|
| 3D Printing |
|
21,582 |
|
|
(187 |
) |
|
|
21,395 |
|
|
21,325 |
|
1.2 |
|
|
0.3 |
|
| Sheet Metal |
|
3,553 |
|
|
(4 |
) |
|
|
3,549 |
|
|
4,248 |
|
(16.4 |
) |
|
(16.5 |
) |
| Other Revenue |
|
160 |
|
|
— |
|
|
|
160 |
|
|
234 |
|
(31.6 |
) |
|
(31.6 |
) |
| Total Revenue |
$ |
127,890 |
|
$ |
(907 |
) |
|
$ |
126,983 |
|
$ |
125,859 |
|
1.6 |
% |
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
| 1 |
Revenue for the three months ended March 31, 2024 has been recalculated using 2023 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. |
| 2 |
This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to GAAP revenue for the three months ended March 31, 2024. |
| 3 |
This column presents the percentage change from GAAP revenue for the three months ended March 31, 2023 to non-GAAP revenue for the three months ended March 31, 2024 (as recalculated using the foreign currency exchange rates in effect during the three months ended March 31, 2023) in order to provide a constant-currency comparison. |
|
|
|
|
|
|
|
| Proto Labs, Inc.
Customer Contact Information (Unaudited) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Three Months Ended
|
||||
|
|
2024 |
|
2023 |
||
| Customer contacts |
|
22,466 |
|
|
23,287 |
| Revenue per customer contact |
$ |
5,693 |
|
$ |
5,405 |
|
|
|
|
|
||
| Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Guidance (In thousands, except per share and per share amounts) (Unaudited) |
|||||
|
|
|||||
|
|
|
|
|
||
|
|
Q2 2024 Outlook |
||||
|
|
Low |
|
High |
||
| GAAP diluted net income per share |
$ |
0.11 |
|
|
0.19 |
| Add back: |
|
|
|
||
| Stock-based compensation expense |
|
0.15 |
|
|
0.15 |
| Amortization expense |
|
0.03 |
|
|
0.03 |
| Unrealized (gain) loss on foreign currency |
|
0.00 |
|
|
0.00 |
| Total adjustments |
|
0.18 |
|
|
0.18 |
| Non-GAAP diluted net income per share |
$ |
0.30 |
|
$ |
0.38 |
|
|
|
|
|
||
