ExOne Company
ExOne Co (Form: 8-K, Received: 08/09/2017 17:23:39)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 9, 2017

 

 

The ExOne Company

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35806   46-1684608

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

127 Industry Boulevard

North Huntingdon, Pennsylvania

  15642
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (724) 863-9663

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On August 9, 2017, The ExOne Company issued a press release relating to its financial results for the 2017 second quarter. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1.

The information in this Current Report and the exhibit hereto are being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report and exhibit hereto shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit
Number

  

Description

99.1    Press Release of The ExOne Company dated August 9, 2017 titled “The ExOne Company Reports 2017 Second Quarter Results”


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

     

The ExOne Company

      (Registrant)

August 9, 2017

     

/s/ BRIAN W. SMITH

(Date)       Brian W. Smith
      Chief Financial Officer


EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Press Release of The ExOne Company dated August 9, 2017 titled “The ExOne Company Reports 2017 Second Quarter Results”

Exhibit 99.1

 

LOGO

 

  

LOGO         

 

 

127 Industry Boulevard • North Huntingdon, PA 15642 • (724) 863-9663

FOR IMMEDIATE RELEASE

The ExOne Company Reports 2017 Second Quarter Results

 

    Revenue of $10.8 million, impacted by timing but on track

 

    2017 first half realized 22% growth in machine revenue over the same period in 2016

 

    Backlog grew to $26.3 million

 

    Revising 2017 revenue expectations to 20% - 25% growth; reiterating expectation for positive Adjusted EBITDA by year end

NORTH HUNTINGDON, PA, August 9, 2017 – The ExOne Company (NASDAQ: XONE) (“ExOne” or “the Company”), a global provider of three-dimensional (“3D”) printing machines and 3D printed and other products, materials and services to industrial customers, reported financial results today for the second quarter ended June 30, 2017.

“Timing impacted our $10.8 million reported revenue for the second quarter, as $2.8 million of revenue carried over into the third quarter by one day. However, our 2017 first half realized 22% growth in machine revenue over the same period in 2016. We believe we are on track to achieve full year consolidated revenue growth in the range of 20% to 25%, considering the exclusion of certain revenue associated with our exited facility,” stated Jim McCarley, ExOne’s Chief Executive Officer.

He continued, “Our operating results for the quarter include investments we are making in our technology, people, and processes to continue the advancement of binder jet technology in the marketplace. Based on our continuing progress, we expect these efforts will significantly improve our future financial performance. We remain confident in our strategic direction and in our pipeline of projects with both new and repeat customers.”

Second Quarter and First Half Revenue – Impacted by Timing

 

     Quarter Ended     Six Months Ended  
     June 30,     June 30,  
(in millions)    2017     2016     2017     2016  

Revenue by Product Line

                    

3D Printing Machines

   $ 4.3        39   $ 4.8        41   $ 8.5        39   $ 7.0        35

3D Printed and Other Products, Materials and Services

     6.5        61     7.0        59     13.2        61     13.2        65
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total Revenue

   $ 10.8        100   $ 11.8        100   $ 21.7        100   $ 20.2        100
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Consolidated revenue for the 2017 second quarter was down 8% compared with the prior-year period. Machine revenue was down 11%. Compared with the 2016 second quarter, there was one less machine sold in the 2017 second quarter. While non-machine revenue was down 6%, by excluding approximately $0.8 million of second quarter 2016 revenue attributable to product lines that the Company has exited, the comparable non-machine revenue grew by 5%. The growth was due to a net increase in sales from the Company’s production service center (PSC) and ExOne adoption center (EAC) operations, and evidences increased customer acceptance of binder jet technology.

For the first half of 2017, revenue was up 7% over the 2016 first half. Machine revenue was up 22%, driven by three more machine sales in the 2017 first half. Excluding approximately $0.8 million of first half 2016 revenue attributable to product lines that the Company has exited, the comparable non-machine revenue grew by 6%.

 

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The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 2 of 10

 

Given the long sales cycle and significance of a machine’s average selling price relative to total revenue, fluctuations in machine-sale revenue vary from quarter to quarter. ExOne does not believe that such quarter-to-quarter fluctuations are necessarily indicative of larger trends.

Second Quarter Operations – Impacted By Inventory Write-off and Investments

 

($ in millions,

except per-share amounts)

   Q2 2017     Q2 2016     Change      % Change  

Gross profit

   $ 2.0     $ 3.5     ($ 1.5      (42 %) 

Gross margin

     18.8     29.8     

Operating loss

   ($ 6.3   ($ 3.1   ($ 3.2      (104 %) 

Net loss

   ($ 6.4   ($ 2.9   ($ 3.5      (118 %) 

Diluted EPS

   ($ 0.40   ($ 0.18   ($ 0.22      (122 %) 

Gross profit was $2.0 million, resulting in an 18.8% gross margin for the 2017 second quarter, compared with 29.8% in the 2016 second quarter. The 2017 quarter was impacted by a $1.5 million charge for obsolete inventories. This was partially offset by approximately $0.3 million of net gains on the disposal of property and equipment related to the Company’s consolidation and exit from its North Las Vegas PSC. The 2016 second quarter gross profit benefited by approximately $0.5 million from a sale associated with an exited product line, partially offset by approximately $0.2 million of losses on disposals of property and equipment.

Brian Smith, ExOne’s Chief Financial Officer, commented, “The obsolete inventory charges of $1.5 million are associated with the completion of a design evaluation of our Exerial™ platform, as well as other activities to enhance our machine platforms. These charges were for obsolete raw material and component inventories, principally Exerial™ machine frames and other fabricated components.”

R&D expenses of $2.3 million for the quarter were up $0.4 million compared with the 2016 second quarter, attributable to investments in internal talent and external resources for machine and organizational development activities.

SG&A expenses increased to $6.0 million compared with $4.7 million in the prior-year quarter, due to investments in internal talent and external resources for technology advancement, as well as the impact of a bad debt recovery in the prior-year second quarter.

The Company anticipates the higher investment levels in both R&D and SG&A to continue on an absolute dollar basis, but decline as a percent of sales, over the balance of 2017.

The 2017 second quarter net loss was $6.4 million, or $0.40 per share, compared with a $2.9 million net loss, or $0.18 per share, in the second quarter of 2016.

Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was a $4.8 million loss in the 2017 second quarter, compared with a $1.4 million loss in last year’s second 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 June 30, 2017 and 2016.

 

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The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 3 of 10

 

First Half 2017 Review – Focused On Advancing Technology and Customer Validation

 

($ in millions,

except per-share amounts)

   YTD 2017     YTD 2016     Change     % Change  

Gross profit

   $ 3.6     $ 5.4     ($ 1.8     (33 %) 

Gross margin

     16.7     26.7    

Operating loss

   ($ 13.0   ($ 8.4   ($ 4.6     (54 %) 

Net loss

   ($ 13.2   ($ 8.4   ($ 4.8     (57 %) 

Diluted EPS

   $ (0.82   $ (0.53   ($ 0.29     (55 %) 

Gross profit was $3.6 million, resulting in a 16.7% gross margin in the first half of 2017, compared with 26.7% in the first half of 2016. The 2017 first half was impacted by the $1.5 million charge for obsolete inventories previously described. Additionally, the 2017 first half was impacted by approximately $0.7 million of costs associated with the Company’s consolidation and exit from its North Las Vegas PSC and non-core specialty machining operations in Michigan, partially offset by approximately $0.3 million of net gains on the disposal of the impacted property and equipment. As previously noted, the 2016 first half benefited by approximately $0.5 million from a sale associated with an exited product line, partially offset by approximately $0.2 million of losses on disposals of property and equipment.

R&D expense was $4.3 million in the 2017 first half compared with $3.8 million in the 2016 first half, with the increase primarily occurring in the second quarter previously described.

SG&A for the 2017 first half was $12.3 million, up $2.3 million compared with the prior-year period. The increase was principally due to the factors previously described for the second quarter, as well as an impairment of intangible assets of $0.3 million associated with exited product lines and an increase in selling costs to support revenue growth.

The net loss was $13.2 million, or $0.82 per share, for the first half of 2017 compared with $8.4 million, or $0.53 per share, in the 2016 first half.

Adjusted EBITDA was an $8.6 million loss in the first half of 2017, compared with a $5.0 million loss in last year’s first half. ExOne management believes that when used in conjunction with other measures prepared in accordance with GAAP, that Adjusted EBITDA, a non-GAAP measure, 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 to Adjusted EBITDA for the six months ended June 30, 2017 and 2016.

Capitalization – Cash Impacted by Inventory Build and Technology Investments

Cash, cash equivalents and restricted cash as of June 30, 2017 were $25.2 million, compared with $28.2 million at December 31, 2016. Cash used for operating activities during the first half of 2017 and 2016 was $6.9 million and $0.2 million, respectively. The first half 2017 cash used for operating activities reflects the impact of a higher net loss and increased working capital usage, primarily to support anticipated sales volume in the second half of 2017. Cash capital expenditures were $0.4 million for the first half of 2017 compared with $0.3 million for the first half of 2016. The first half of 2017 included $3.7 million of cash proceeds from the sale of property and equipment associated facility exits.

Outlook – Updating Sales Outlook Modestly, Reiterating Adjusted EBITDA Expectations

Mr. McCarley concluded, “We are revising our 2017 revenue outlook modestly, to a range of 20% to 25% growth. Our guidance is based on our backlog and anticipated growth in the second half, particularly in the fourth quarter. In the third quarter, we expect the Exerial™ beta machine sales will unfavorably impact earnings and we will continue to make investments in organizational and R&D activities. However, we remain convinced that these costs will prove to be good investments and we remain on track to reach positive Adjusted EBITDA by the end of the year. Additionally, we expect a total cash balance in excess of $20 million at year end.”

 

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The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 4 of 10

 

Webcast and Conference Call

ExOne will host a conference call and live webcast on Thursday, August 10 at 8:30 a.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the 2017 second 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 11:30 a.m. ET on the day of the teleconference through Thursday, August 17, 2017. To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 13665986, 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

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 reports, the following factors, among others, could cause results to differ materially from forward-looking statements or historical performance: the Company’s ability to enhance its current three-dimensional (“3D”) printing machines and technology and develop new 3D printing machines; its ability to qualify more industrial materials in which it can print; timing and length of sales of 3D printing machines; demand for ExOne products; the Company’s ability to achieve cost savings through consolidation or exiting of certain North American operations; the impact of increases in operating expenses and expenses relating to proposed investments and alliances; the availability of skilled personnel; the impact of market conditions and other factors on the carrying value of long-lived assets; the Company’s competitive environment and its competitive position; the Company’s ability to continue as a going concern; individual customer contractual requirements; the impact of customer specific terms in machine sale agreements on the period in which the Company recognizes revenue; the impact of loss of key management; risks related to global operations including effects of foreign currency and risks related to the situation in the Ukraine and the United Kingdom’s referendum to withdraw from the European Union; demand for aerospace, automotive, heavy equipment, energy/oil/gas and other industrial products; the Company’s plans regarding increased international operations in additional international locations; the scope, nature or impact of alliances and strategic investments

 

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The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 5 of 10

 

and the Company’s ability to integrate strategic investments; sufficiency of funds for required capital expenditures, working capital, and debt service; the adequacy of sources of liquidity; 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 our manufacturing facilities, production service centers or ExOne adoption centers; the adequacy of the Company’s protection of its intellectual property; 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; and material weaknesses in the Company’s internal control over financial reporting.

These and other important factors, including those discussed in the Company’s Annual Report on Form 10-K, may cause its actual results of operations to differ materially from any future results of operations expressed or implied by the forward-looking statements contained herein. 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.

For more information, contact:

 

Brian Smith    Deborah K. Pawlowski / Karen L. Howard
Chief Financial Officer    Kei Advisors LLC
(724) 765-1350    (716) 843-3908 / (716) 843-3942
brian.smith@exone.com    dpawlowski@keiadvisors.com / khoward@keiadvisors.com

FINANCIAL TABLES FOLLOW.

 

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The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 6 of 10

 

The ExOne Company

Statement of Consolidated Operations

(in thousands, except per-share amounts)

(Unaudited)

 

     Quarter Ended
June 30,
    %
Change
    Six Months Ended
June 30,
    %
Change
 
     2017     2016           2017     2016        

Revenue

   $ 10,799     $ 11,755       (8 %)    $ 21,668     $ 20,169       7

Cost of sales

     8,773       8,249       6     18,039       14,787       22
  

 

 

   

 

 

     

 

 

   

 

 

   

Gross profit

     2,026       3,506       (42 %)      3,629       5,382       (33 %) 

Gross margin

     18.8     29.8       16.7     26.7  

Research and development

     2,349       1,946       21     4,348       3,839       13

Selling, general and administrative

     6,013       4,663       29     12,276       9,988       23
  

 

 

   

 

 

     

 

 

   

 

 

   
     8,362       6,609       27     16,624       13,827       20
  

 

 

   

 

 

     

 

 

   

 

 

   

Operating loss

     (6,336     (3,103     (104 %)      (12,995     (8,445     (54 %) 

Interest expense

     23       22       5     45       254       (82 %) 

Other expense (income) – net

     35       (205     NM       145       (298     NM  
  

 

 

   

 

 

     

 

 

   

 

 

   
     58       (183     NM       190       (44     NM  
  

 

 

   

 

 

     

 

 

   

 

 

   

Loss before income taxes

     (6,394     (2,920     (119 %)      (13,185     (8,401     (57 %) 

Provision for income taxes

     9       22       (59 %)      9       18       (50 %) 
  

 

 

   

 

 

     

 

 

   

 

 

   

Net loss

   $ (6,403   $ (2,942     (118 %)    $ (13,194   $ (8,419     (57 %) 
  

 

 

   

 

 

     

 

 

   

 

 

   

Net loss per common share:

            

Basic

   $ (0.40   $ (0.18     (122 %)    $ (0.82   $ (0.53     (55 %) 

Diluted

   $ (0.40   $ (0.18     (122 %)    $ (0.82   $ (0.53     (55 %) 

Weighted average shares outstanding (basic and diluted)

     16,046       15,994         16,037       15,870    

NM: Not Meaningful

 

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The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 7 of 10

 

The ExOne Company

Consolidated Balance Sheet

(in thousands, except per-share and share amounts)

(Unaudited)

 

     June 30,
2017
    December 31,
2016
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 24,051     $ 27,825  

Restricted cash

     1,112       330  

Accounts receivable - net of allowance of $1,687 (2017) and $1,566 (2016)

     6,566       6,447  

Inventories - net

     17,022       15,838  

Prepaid expenses and other current assets

     2,059       1,159  
  

 

 

   

 

 

 

Total current assets

     50,810       51,599  

Property and equipment - net

     49,011       51,134  

Intangible assets - net

     236       668  

Other noncurrent assets

     304       777  
  

 

 

   

 

 

 

Total assets

   $ 100,361     $ 104,178  
  

 

 

   

 

 

 

Liabilities

    

Current liabilities:

    

Current portion of long-term debt

   $ 133     $ 132  

Current portion of capital leases

     41       72  

Accounts payable

     4,365       2,036  

Accrued expenses and other current liabilities

     5,120       5,124  

Deferred revenue and customer prepayments

     10,539       7,371  
  

 

 

   

 

 

 

Total current liabilities

     20,198       14,735  

Long-term debt - net of current portion

     1,578       1,644  

Capital leases - net of current portion

     44       10  

Other noncurrent liabilities

     9       9  
  

 

 

   

 

 

 

Total liabilities

     21,829       16,398  

Contingencies and commitments

    

Stockholders’ equity

    

Common stock, $0.01 par value, 200,000,000 shares authorized, 16,045,949 (2017) and 16,017,115 (2016) shares issued and outstanding

     160       160  

Additional paid-in capital

     171,951       171,116  

Accumulated deficit

     (82,363     (68,761

Accumulated other comprehensive loss

     (11,216     (14,735
  

 

 

   

 

 

 

Total stockholders’ equity

     78,532       87,780  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 100,361     $ 104,178  
  

 

 

   

 

 

 

 

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The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 8 of 10

 

The ExOne Company

Statement of Consolidated Cash Flows

(in thousands)

(Unaudited)

 

     Six Months Ended
June 30,
 
     2017     2016  

Operating activities

    

Net loss

   $ (13,194   $ (8,419

Adjustments to reconcile net loss to net cash used for operations:

    

Depreciation and amortization

     3,589       2,862  

Equity-based compensation

     835       554  

Amortization of debt issuance costs

     3       207  

Deferred income taxes

     —         (29

Provision (recoveries) for bad debts - net

     132       (271

Provision (recoveries) for slow-moving, obsolete and lower of cost or market inventories - net

     1,835       (403

(Gain) loss from disposal of property and equipment - net

     (314     198  

Changes in assets and liabilities, excluding effects of foreign currency translation adjustments:

    

Decrease in accounts receivable

     69       4,652  

Increase in inventories

     (3,358     (545

(Increase) decrease in prepaid expenses and other assets

     (770     820  

Increase in accounts payable

     2,111       208  

Decrease in accrued expenses and other liabilities

     (252     (1,551

Increase in deferred revenue and customer prepayments

     2,390       1,550  
  

 

 

   

 

 

 

Net cash used for operating activities

     (6,924     (167

Investing activities

    

Capital expenditures

     (392     (331

Proceeds from sale of property and equipment

     3,677       44  
  

 

 

   

 

 

 

Net cash provided by (used) for investing activities

     3,285       (287

Financing activities

    

Net proceeds from issuance of common stock - registered direct offering to a related party

     —         12,447  

Net proceeds from issuance of common stock - at the market offerings

     —         595  

Payments on long-term debt

     (68     (68

Payments on capital leases

     (45     (41
  

 

 

   

 

 

 

Net cash (used for) provided by financing activities

     (113     12,933  

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

     760       63  
  

 

 

   

 

 

 

Net change in cash, cash equivalents, and restricted cash

     (2,992     12,542  

Cash, cash equivalents, and restricted cash at beginning of period

     28,155       19,672  
  

 

 

   

 

 

 

Cash, cash equivalents, and restricted cash at end of period

   $ 25,163     $ 32,214  
  

 

 

   

 

 

 

Supplemental disclosure of noncash investing and financing activities

    

Transfer of internally developed 3D printing machines from inventories to property and equipment for internal use or leasing activities

   $ 1,917     $ 1,997  
  

 

 

   

 

 

 

Transfer of internally developed 3D printing machines from property and equipment to inventories for sale

   $ 395     $ 682  
  

 

 

   

 

 

 

Property and equipment included in accounts payable

   $ 100     $ 20  
  

 

 

   

 

 

 

Property and equipment acquired through financing arrangements

   $ 48     $ —    
  

 

 

   

 

 

 

 

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The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 9 of 10

 

The ExOne Company

Additional Information

(Unaudited)

Machine Sales by Type

 

     Quarter Ended
June 30,
     Six Months Ended
June 30,
 
     2017      2016      2017      2016  

S-Max+™

     —          —          —          1  

S-Max ®

     2        1        6        1  

S-Print ®

     —          2        —          2  

S-15™

     —          1        —          1  

M-Flex ®

     3        2        4        2  

Innovent ®

     3        3        3        3  
  

 

 

    

 

 

    

 

 

    

 

 

 
     8        9        13        10  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

- MORE -


The ExOne Company Reports 2017 Second Quarter Results

August 9, 2017

Page 10 of 10

 

The ExOne Company

Adjusted EBITDA Reconciliation

(in millions)

(Unaudited)

 

     Quarter Ended
June 30,
    Six Months Ended
June 30,
 
     2017     2016     2017     2016  

Net loss

   $ (6.4   $ (2.9   $ (13.2   $ (8.4

Interest expense

     0.0       0.0       0.1       0.2  

Provision for income taxes

     0.0       0.0       0.0       0.0  

Depreciation and amortization

     1.3       1.5       3.6       2.9  

Equity-based compensation

     0.3       0.2       0.8       0.6  

Other expense (income) - net

     0.0       (0.2     0.1       (0.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (4.8   $ (1.4   $ (8.6   $ (5.0
  

 

 

   

 

 

   

 

 

   

 

 

 

ExOne defines Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) as net loss (as calculated under accounting principles generally accepted in the United States (“GAAP”)) plus interest expense, provision for income taxes, depreciation and amortization, equity-based compensation, and other expense (income) - net. Use of Adjusted EBITDA, which is a non-GAAP financial measure, as defined under the rules of the U.S. Securities and Exchange Commission, is intended as a supplemental measure of ExOne’s performance that is not required by, or presented in accordance with, GAAP. Adjusted EBITDA should not be considered as an alternative to net loss or any other performance measure derived in accordance with GAAP. The Company’s presentation of Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.

The Company believes Adjusted EBITDA is meaningful to its investors to enhance their understanding of ExOne’s financial results. Although Adjusted EBITDA is not necessarily a measure of the Company’s ability to fund its cash needs, the Company understands that it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare ExOne’s performance with the performance of other companies that report Adjusted EBITDA. ExOne’s calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

 

- END -