- Delivers Record Quarterly and Annual Revenue and Gross Profit
- Completes Three-for-Two Stock Split and Commences Post Split NYSE Trading
- Expects 2013 Revenue of $440 million to $485 million and non-GAAP EPS of $1.00 to $1.15
ROCK HILL, S.C., Feb. 25, 2013 (GLOBE NEWSWIRE) -- 3D Systems Corporation (NYSE:DDD) announced today non-GAAP earnings of 39 cents per share for the fourth quarter of 2012 and GAAP earnings of 19 cents per share resulting in full year 2012 non-GAAP earnings of $1.25 and GAAP earnings of $0.71.
The company reported that its fourth quarter revenue grew 45.4% from the prior year to $101.6 million on a 93% surge in printers' and other products revenue and 18.8% organic growth. Stronger printer demand bolstered quarter-end backlog to $11.4 million at year-end, a 23% sequential increase, which included $3.2 million related to current printers' sales. Gross profit increased 60% and gross profit margin expanded 460 basis points to 51.7% contributing to non-GAAP net income improvement of 64% over the 2011 quarter.
For the full year 2012, revenue grew 53.5% to $353.6 million, on 90% printers' and other products revenue increase and 22.4% organic growth. Gross profit increased 66.2% and gross profit margin expanded 390 basis points to 51.2%.
The company generated $53.0 million of cash from operations in 2012, and ended the year with $155.9 million of available cash, after incurring a $46.5 million increase in its annual operating expenses primarily from increased sales, marketing and acquisitions costs. The increase included $8.9 million of higher R&D expenditures in support of its expanded portfolio.
"We are very pleased to report outstanding quarterly and annual results on accelerated printers' sales," said Avi Reichental, 3D Systems' President and Chief Executive Officer. "We believe that our results reflect the potency of our diversified portfolio, productivity of our channels and effectiveness of our strategic growth initiatives."
The table below summarizes the company's key 2012 non-GAAP financial results for the fourth quarter and full year.
|
Non-GAAP Operating Highlights |
Fourth Quarter |
Full Year |
||||||||||
|
($ in millions, except per share amounts) |
2012 |
2011 |
% Change Favorable (Unfavorable) |
2012 |
2011 |
% Change Favorable (Unfavorable) |
||||||
| Revenue (GAAP) | $ 101.6 | $ 69.9 | 45.4% | $ 353.6 | $ 230.4 | 53.5% | ||||||
| Gross profit | $ 52.6 | $ 32.9 | 59.7% | $ 181.4 | $ 109.3 | 66.0% | ||||||
| % of revenue | 51.7% | 47.1% | 51.3% | 47.4% | ||||||||
| Operating expenses | $ 28.2 | $ 16.8 | (67.5%) | $ 99.8 | $ 63.0 | (58.3%) | ||||||
| % of revenue | 27.7% | 24.1% | 28.2% | 27.4% | ||||||||
| Operating income | $ 24.4 | $ 16.1 | 51.5% | $ 81.6 | $ 46.3 | 76.5% | ||||||
| % of revenue | 24.0% | 23.0% | 23.1% | 20.1% | ||||||||
| Net income | $ 22.6 | $ 13.8 | 63.6% | $ 67.9 | $ 41.0 | 65.7% | ||||||
| % of revenue | 22.2% | 19.8% | 19.2% | 17.8% | ||||||||
| Diluted earnings per share | $0.39 | $ 0.27 | 44.4% | $1.25 | $0.81 | 54.3% | ||||||
| Available cash & cash equivalents | $ 155.9 | $ 179.1 | (13.0%) | $ 155.9 | $ 179.1 | (13.0%) | ||||||
| Depreciation & amortization | $ 2.4 | $ 1.5 | (63.3%) | $ 10.1 | $ 6.0 | (67.4%) | ||||||
| % of revenue | 2.3% | 2.7% | 2.9% | 2.6% | ||||||||
| - Gross profit, operating expenses, operating income, net income and earnings per share have been adjusted to reflect non-GAAP operating results. See the reconciliation of non-GAAP data to GAAP net income and earnings per share at the end of this press release. | ||||||||||||
3D printers and other products revenue nearly doubled to $126.8 million on stronger demand as a result of the company's effective portfolio convergence, price point re-alignment and channel expansion. Print materials revenue grew 46.1% to $103.2 million on 124.2% higher printer units and services revenue increased by $30.5 million over 2011 to $123.7 million and included $79.2 million of on-demand parts.
"We are thrilled with the progress we are making on our consumer growth initiative and expect revenue from our consumer products to be meaningful to our revenue in the second half of 2013," continued Reichental.
The company announced that its three-for-two stock split was completed effective on the close of business Friday, February 22, 2013 by distributing a 50% stock dividend in the form of additional shares to its stockholders of record on February 15, 2013. Trading of the company's common stock on the New York Stock Exchange will begin this morning on a split-adjusted basis at approximately 66% of last Friday's closing price.
The company announced its annual guidance for the full year 2013, expecting its revenue to be in the range of $440 million to $485 million and its non-GAAP earnings per share to be in the range of $1.00 to $1.15, on a post-split basis, inclusive of the acquisition of Geomagic, which the company expects to close by the end of February 2013.
"We entered 2013 with positive sales momentum shaped by increased demand from advanced manufacturing activities. While we may face lingering economic uncertainties in parts of the world, we expect to continue to benefit from robust R&D and manufacturing spending by our customers worldwide," concluded Reichental.
Conference Call and Webcast Details
3D Systems will hold a conference call and webcast to discuss its operating results for the fourth quarter and full year 2012 on Monday, February 25, 2013 at 9:00 a.m., Eastern Time.
-
To access this webcast, log onto 3D Systems' web site at investor.3dsystems.com. To ensure timely participation and technical capability, we recommend logging on a few minutes prior to the conference call to activate your participation.
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To access this conference call, dial 1-800-295-3991 from in the U.S. or 1-617-614-3924 from outside the U.S. and enter participant code 68343877.
- The webcast will be also be available for replay beginning approximately two hours after completion of the call at: investor.3dsystems.com.
The company filed its Annual Report on Form 10-K today and copies are available free of charge upon request from Investor Relations.
Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking. Forward-looking statements may include comments as to the company's beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in the company's periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.
Presentation of Information in This Press release
The company reported non-GAAP measures that adjust net income and earnings per share by excluding the impact of amortization of intangibles, non-cash interest expense, non-recurring acquisition expenses, litigation settlements, loss on conversion of notes, stock-based compensation expense and releases of the valuation allowance on deferred tax assets. A reconciliation of GAAP to non-GAAP results is provided in the accompanying schedule.
About 3D Systems Corporation
3D Systems is a leading provider of 3D content-to-print solutions including 3D printers, print materials and on-demand custom parts services for professionals and consumers alike. The company also provides affordable CAD modeling, reverse engineering and inspection software tools and consumer 3D printers, apps and services. Its expertly integrated solutions replace and complement traditional methods and reduce the time and cost of designing and manufacturing new products. 3D Systems' products and services are used to rapidly design, communicate, prototype or produce real functional, parts, empowering customers to create and make with confidence.
More information on the company is available at www.3DSystems.com.
The 3D Systems Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4537
Tables Follow
| 3D Systems Corporation | ||||
| Audited Consolidated Statements of Operations and Comprehensive Income | ||||
| Quarter and Year Ended December 31, 2012 and 2011 | ||||
| Quarter Ended December 31, | Year Ended December 31, | |||
| (in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 |
| Revenue: | ||||
| Products | $ 68,757 | $ 41,944 | $ 229,980 | $ 137,306 |
| Services | 32,814 | 27,916 | 123,653 | 93,117 |
| Total revenue | 101,571 | 69,860 | 353,633 | 230,423 |
| Cost of sales: | ||||
| Products | 31,665 | 20,837 | 105,286 | 66,589 |
| Services | 17,410 | 16,158 | 67,151 | 54,806 |
| Total cost of sales | 49,075 | 36,995 | 172,437 | 121,395 |
| Gross profit | 52,496 | 32,865 | 181,196 | 109,028 |
| Operating expenses: | ||||
| Selling, general and administrative | 26,524 | 17,572 | 97,422 | 59,795 |
| Research and development | 7,806 | 4,594 | 23,203 | 14,331 |
| Total operating expenses | 34,330 | 22,166 | 120,625 | 74,126 |
| Income from operations | 18,166 | 10,699 | 60,571 | 34,902 |
| Interest and other expense (income), net | 8,703 | 1,991 | 17,292 | 2,456 |
| Income before income taxes | 9,463 | 8,708 | 43,279 | 32,446 |
| Provision for (benefit of) income taxes | (1,449) | 703 | 4,338 | (2,974) |
| Net income | $ 10,912 | $ 8,005 | $ 38,941 | $ 35,420 |
| Other comprehensive income | ||||
| Unrealized gain (loss) on pension obligation | (715) | (275) | (714) | (275) |
| Foreign currency translation gain (loss) | 1,499 | (1,493) | 1,640 | (1,743) |
| Comprehensive income | $ 11,696 | $ 6,237 | $ 39,867 | $ 33,402 |
| Net income per share - basic | $ 0.19 | $ 0.16 | $ 0.72 | $ 0.71 |
| Net income per share - diluted | $ 0.19 | $ 0.16 | $ 0.71 | $ 0.70 |
| 3D Systems Corporation | ||
| Audited Consolidated Balance Sheets | ||
| December 31, 2012 and 2011 | ||
| (in thousands, except par value) | 2012 | 2011 |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 155,859 | $ 179,120 |
| Accounts receivable, net of allowance for doubtful accounts of $4,317 (2012) and $3,019 (2011) | 79,869 | 51,195 |
| Inventories, net of reserves of $3,534 (2012) and $2,542 (2011) | 41,820 | 25,283 |
| Prepaid expenses and other current assets | 4,010 | 2,241 |
| Current deferred income tax asset | 5,867 | 3,528 |
| Restricted cash | 13 | 13 |
| Total current assets | 287,438 | 261,380 |
| Property and equipment, net | 34,353 | 29,594 |
| Intangible assets, net | 108,377 | 54,040 |
| Goodwill | 240,314 | 107,651 |
| Long term deferred income tax asset | 107 | 3,195 |
| Other assets, net | 6,853 | 7,114 |
| Total assets | $ 677,442 | $ 462,974 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Current portion of capitalized lease obligations | $ 174 | $ 163 |
| Accounts payable | 32,095 | 25,911 |
| Accrued and other liabilities | 24,789 | 16,816 |
| Customer deposits | 2,786 | 3,398 |
| Deferred revenue | 15,309 | 11,260 |
| Total current liabilities | 75,153 | 57,548 |
| Long term portion of capitalized lease obligations | 7,443 | 7,609 |
| Convertible senior notes, net | 80,531 | 131,107 |
| Deferred income tax liability | 23,142 | 3,656 |
| Other liabilities | 10,840 | 8,266 |
| Total liabilities | 197,109 | 208,186 |
| Commitments and Contingencies | ||
| Stockholders' equity: | ||
| Preferred stock, authorized 5,000 shares, none issued | — | — |
| Common stock, $0.001 par value, authorized 120,000 shares; 59,855 (2012) and 50,975 (2011) issued | 60 | 51 |
| Additional paid-in capital | 460,237 | 274,542 |
| Treasury stock, at cost: 355 (2012) and 324 shares (2011) | (240) | (214) |
| Accumulated earnings (deficit ) | 16,410 | (22,531) |
| Accumulated other comprehensive income | 3,866 | 2,940 |
| Total stockholders' equity | 480,333 | 254,788 |
| Total liabilities and stockholders' equity | $ 677,442 | $ 462,974 |
| 3D Systems Corporation | ||
| Audited Consolidated Statements of Cash Flows | ||
| Year Ended December 31, 2012 and 2011 | ||
| (in thousands) | 2012 | 2011 |
| Cash flows from operating activities: | ||
| Net income | $ 38,941 | $ 35,420 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Benefit of deferred income taxes | (661) | (5,140) |
| Depreciation and amortization | 21,229 | 11,093 |
| Non-cash interest on convertible notes | 3,876 | 409 |
| Provision for bad debts | 3,039 | 1,731 |
| Stock-based compensation | 5,118 | 2,637 |
| (Gain) loss on the disposition of property and equipment and investments | (674) | 256 |
| Loss on conversion of convertible debt | 7,021 | — |
| Changes in operating accounts: | ||
| Accounts receivable | (19,246) | (12,090) |
| Inventories | (12,225) | (2,608) |
| Prepaid expenses and other current assets | (794) | 45 |
| Accounts payable | (238) | (3,457) |
| Accrued liabilities | 9,081 | 141 |
| Customer deposits | (1,336) | 857 |
| Deferred revenue | 1,164 | 525 |
| Other operating assets and liabilities | (1,251) | (2,159) |
| Net cash provided by operating activities | 53,044 | 27,660 |
| Cash flows from investing activities: | ||
| Purchases of property and equipment | (3,224) | (2,870) |
| Proceeds from disposition of property and equipment and other assets | — | 174 |
| Additions to license and patent costs | (729) | (336) |
| Cash paid for acquisitions, net of cash assumed | (183,701) | (92,677) |
| Net cash used in investing activities | (187,654) | (95,709) |
| Cash flows from financing activities: | ||
| Proceeds from 5.50% convertible notes | — | 148,960 |
| Convertible notes capitalized costs | — | (3,594) |
| Proceeds from issuance of common stock | 106,889 | 62,054 |
| Proceeds from exercise of stock options and restricted stock, net | 4,400 | 2,764 |
| Repayment of capital lease obligations | (163) | (221) |
| Proceeds from capital lease obligations | — | — |
| Restricted cash | — | 12 |
| Net cash provided by financing activities | 111,126 | 209,975 |
| Effect of exchange rate changes on cash | 223 | (155) |
| Net increase (decrease) in cash and cash equivalents | (23,261) | 141,771 |
| Cash and cash equivalents at the beginning of the period | 179,120 | 37,349 |
| Cash and cash equivalents at the end of the period | $ 155,859 | $ 179,120 |
| 3D Systems Corporation | ||||
| Schedule 1 | ||||
| Earnings Per Share | ||||
| Following is a reconciliation of the numerator and denominator of the basic and diluted net earnings per share computations: | ||||
| Quarter Ended December 31, | Year Ended December 31, | |||
| (in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 |
| Basic and diluted earnings per share: | ||||
| Basic earnings per share: | ||||
| Numerator: | ||||
| Net income | $ 10,912 | $ 8,005 | $ 38,941 | $ 35,420 |
| Denominator: | ||||
| Weighted average common shares outstanding | 57,417 | 50,615 | 53,878 | 49,748 |
| Basic earnings per share | $ 0.19 | $ 0.16 | $ 0.72 | $ 0.71 |
| Diluted earnings per share: | ||||
| Numerator: | ||||
| Net income | $ 10,912 | $ 8,005 | $ 38,941 | $ 35,420 |
| Denominator: | ||||
| Weighted average common shares outstanding | 57,417 | 50,615 | 53,878 | 49,748 |
| Effect of dilutive securities: | ||||
| Stock options | 36 | 838 | 604 | 975 |
| Diluted weighted average shares outstanding | 57,453 | 51,453 | 54,482 | 50,723 |
| Diluted earnings per share | $ 0.19 | $ 0.16 | $ 0.71 | $ 0.70 |
| 3D Systems Corporation | ||||
| Schedule 2 | ||||
| Unaudited Reconciliation of GAAP Net Income to Non-GAAP Net Income | ||||
| Quarter and Year Ended December 31, 2012 and 2011 | ||||
| Quarter Ended December 31, | Year Ended December 31, | |||
| (in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 |
| GAAP Net Income | $ 10,912 | $ 8,005 | $ 38,941 | $ 35,420 |
| Adjustments: | ||||
| Stock-based compensation | 1,317 | 810 | 4,613 | 2,637 |
| Amortization of intangibles (a) (b) | 2,894 | 2,075 | 11,452 | 5,050 |
| Acquisition and severance expenses | 2,015 | 2,513 | 4,982 | 3,664 |
| Non-cash interest expenses | 857 | 400 | 3,489 | 400 |
| Loss on convertible notes | 5,199 | -- | 6,295 | -- |
| Net gain on acquisitions and litigation settlements | -- | -- | (1,296) | -- |
| Release of valuation allowance on deferred tax assets | (610) | -- | (610) | (6,221) |
| Non-GAAP adjusted net income | $ 22,584 | $ 13,803 | $ 67,866 | $ 40,950 |
| Non-GAAP adjusted income per share - basic | $ 0.39 | $ 0.27 | $ 1.26 | $ 0.82 |
| Non-GAAP adjusted income per share - diluted | $ 0.39 | $ 0.27 | $ 1.25 | $ 0.81 |
| (a) Represents amortization expense for the quarters ended December 31, 2012 and 2011, of which $54 and $44, respectively, is included in the cost of sales and the remaining $2,840 and $2,031, respectively, is included in operating expenses. | ||||
| (b) Represents amortization expense for the years ended December 31, 2012 and 2011, of which $193 and $237, respectively, is included in the cost of sales and the remaining $11,259 and $4,813, respectively, is included in operating expenses. | ||||