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) May 7, 2020 

 

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))

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock

XONE

The Nasdaq Stock Market

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 (the “Exchange Act”) (§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 May 7, 2020, The ExOne Company (the “Company”) issued a press release relating to its 2020 first quarter financial results. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1.

The information in Item 2.02 of this Current Report and Exhibit 99.1 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 Item 2.02 of this Current Report and Exhibit 99.1 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 May 7, 2020 titled “The ExOne Company Reports 2020 First Quarter Results”.

 

 


SIGNATURE

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

 

 

 

 

 

 

 

 

 

 

The ExOne Company

 

 

 

 

(Registrant)

 

 

 

May 7, 2020

 

 

 

/s/ Douglas D. Zemba

(Date)

 

 

 

Douglas D. Zemba

Chief Financial Officer

 

 

 

 

 

 

 

 

 

xone-ex991_6.htm

Exhibit 99.1

 

NEWS

RELEASE

 

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

 

FOR IMMEDIATE RELEASE          

The ExOne Company Reports 2020 First Quarter Results

Revenue of $13.4 million, up 40% over Q1 2019

Record backlog of $33.8 million

Cost reductions taken in anticipation of economic downturn from COVID-19

 

NORTH HUNTINGDON, PA, May 7, 2020 – The ExOne Company (Nasdaq: XONE), the global leader in industrial sand and metal 3D printers using binder jetting technology, today reported financial results for the first quarter ended March 31, 2020.  

Revenue for the 2020 first quarter was $13.4 million, up 40% over last year’s first quarter.  Increases in both machine sales and recurring revenue contributed to the growth.  The Company reported a net loss of $0.22 per share in the 2020 first quarter, improved from a loss of $0.28 per share in the 2019 first quarter.

“Our strong backlog coming into the year and our new product introductions positioned us well for growth in the first quarter,” said John Hartner, ExOne CEO.  “Despite initial effects of COVID-19 on our business, our execution performance was solid.  Globally, our facilities continued to operate in support of our customers in critical industries and essential businesses, subject to social distancing and other procedures to keep our employees safe.”

He continued, “However, conditions clearly changed in March.  We previously anticipated that growth would continue during 2020, but the COVID-19 pandemic has impacted shipping, travel and installation schedules, as well as the timing of customer capital investments.  The uncertainty of our outlook caused by this situation prompted us to reduce our cost structure as we manage through these historic times.”

First Quarter 2020 Revenue – Driven by Growth in Machine Sales and Recurring Revenue

(compared with the prior-year period unless stated otherwise)

 

 

Three Months Ended

 

 

 

 

 

(in millions)

 

March 31,

 

 

 

 

 

Revenue by Product Line

 

2020

 

 

2019

 

 

% Change

 

3D Printing Machines

 

$

6.3

 

 

 

47

%

 

$

3.3

 

 

 

35

%

 

90%

 

3D Printed and Other Products, Materials and Services

 

 

7.1

 

 

 

53

%

 

 

6.3

 

 

 

65

%

 

13%

 

Total Revenue

 

$

13.4

 

 

 

100

%

 

$

9.6

 

 

 

100

%

 

40%

 

Machine revenue nearly doubled to $6.3 million in the first quarter of 2020, up from $3.3 million in the prior-year period, benefiting from increased volumes and a favorable mix of machines sold.  In the 2020 first quarter, 14 machines were sold, of which five were indirect (sand) and nine were direct (metal) printing machines.  This compares with eight machines sold in the 2019 first quarter, consisting of two indirect and six direct printing machines.  

Recurring revenue from 3D printed and other products, materials and services was $7.1 million in the first quarter of 2020, up 13% from $6.3 million in the prior-year period.  The 2020 first quarter included an increase in sales of consumables to our growing global installed base of machines as well as an increase in revenue associated with research and development (R&D) contracts.  

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.

 


The ExOne Company Reports 2020 First Quarter Results

May 7, 2020

Page 2 of 8

First Quarter Operations – Benefiting from Revenue Growth
(compared with the prior-year period unless stated otherwise)

($ in millions, except per-share amounts)

 

Q1 2020

 

 

Q1 2019

 

 

Change

 

 

% Change

 

Gross profit

 

$

3.6

 

 

$

2.6

 

 

$

1.0

 

 

 

37

%

Gross margin

 

 

27.1

%

 

 

27.6

%

 

 

 

 

 

 

 

 

Operating expenses (R&D, SG&A)

 

$

8.6

 

 

$

7.9

 

 

$

0.7

 

 

 

32

%

Net loss

 

$

(3.6

)

 

$

(4.5

)

 

$

0.9

 

 

 

19

%

Diluted EPS

 

$

(0.22

)

 

$

(0.28

)

 

$

0.06

 

 

 

21

%

Gross profit was $3.6 million in the 2020 first quarter.  Gross margin of 27.1% demonstrated solid execution on higher revenue volume, partially offset by approximately 160 basis points for the impact of the sale-leaseback of the Company’s European headquarters and operating facility in Gersthofen, Germany, which closed during the first quarter of 2020.  

R&D expense was $2.5 million in the first quarter of 2020, up 2% from $2.4 million in the same period of 2019.  The increase was primarily due to employee-related costs from higher headcount, partially offset by a decrease in consulting and professional fees associated with lower machine development costs.

SG&A expense of $6.2 million in the 2020 first quarter was up 14% from $5.4 million in the 2019 first quarter.  The increase was primarily related to ExOne’s investment in its global sales and marketing infrastructure.  

As a result of the completion of the sale-leaseback transaction, the Company recognized a gain of $1.5 million during the 2020 first quarter.

The Company recorded a tax provision of $0.2 million in the 2020 first quarter compared with a tax benefit of $0.8 million during the prior-year quarter.  The 2020 provision resulted from jurisdictional mix and the 2019 benefit resulted from the reversal of previously recorded liabilities for uncertain tax positions following completion of a tax examination.

Net loss for the 2020 first quarter was $3.6 million, or $0.22 loss per share, compared with a $4.5 million net loss, or $0.28 loss per share, in the first quarter of 2019.  Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)*, a non-GAAP measure, was a $3.8 million loss in the 2020 first quarter compared with a $3.6 million loss in last year’s first quarter.

* See the attached table captioned “Adjusted EBITDA Reconciliation” for important disclosures regarding the Company’s definition and use of Adjusted EBITDA as well as a reconciliation of net loss (the most directly comparable measure under accounting principles generally accepted in the United States (“GAAP”)) to Adjusted EBITDA for the three months and years ended December 31, 2019 and 2018.  ExOne management believes that, when used in conjunction with other measures prepared in accordance with GAAP, Adjusted EBITDA assists in the understanding of its financial results.

Capitalization – Liquidity to Manage Through Uncertain Times and Support Growth Plans

Cash, cash equivalents and restricted cash as of March 31, 2020 were $17.3 million, compared with $6.2 million at December 31, 2019.  The increase was driven by the sale-leaseback transaction that closed during the first quarter of 2020, as previously announced.  There were no borrowings outstanding on the $10.0 million related party revolving credit facility at March 31, 2020.  

Cash used for operating activities during the 2020 first quarter was $4.7 million, compared with $1.4 million in the first quarter of 2019.  The increased use of cash was primarily due to timing of working capital utilization, particularly customer deposits.

Cash capital expenditures were approximately $0.3 million in the first quarters of both 2020 and 2019.  For the rest of 2020, the Company expects additional cash capital expenditures between $1 million and $2 million.  

Outlook – Interest in ExOne Technology Continues, but COVID-19 Pandemic Impacts Timing

Mr. Hartner noted, “We remain optimistic about our long-term growth prospects, driven by the continued adoption of additive manufacturing, the breadth of our updated machine portfolio, the diversity of our offerings and broad industry reach, as well as our active pipeline.  Further, the less cyclical recurring revenue that is inherent in our business model provides a solid base during an economic downturn.  Additionally, we believe that the COVID-19 crisis is causing businesses to accelerate evaluation of 3D printing to resolve their supply chain challenges.”

He concluded, “Despite our optimism and the strength of our current backlog, the magnitude and duration of the economic impact of the COVID-19 pandemic will likely affect the timing of our installations and customer order patterns in the near


The ExOne Company Reports 2020 First Quarter Results

May 7, 2020

Page 3 of 8

term.  Nonetheless, we remain focused on advancing our binder jetting technology and driving profitable growth as the economy recovers.”

Webcast and Conference Call

ExOne will host a conference call and live webcast on Friday, May 8, 2020 at 8:30 a.m. Eastern Time.  During the conference call and webcast, management will review the financial and operating results for the 2020 first 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. Eastern Time on the day of the teleconference through Friday, May 15, 2020.  To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 13700725, 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 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, the following factors, among others, could cause results to differ materially from forward-looking statements or historical performance: the severity and duration of world health events, including the recent COVID-19 outbreak and the related economic repercussions and operational challenges; 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 to 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 foreign currency and the COVID-19 global pandemic; 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; the adequacy of ExOne’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 other factors beyond our control, including the impact of the COVID-19 global pandemic.


The ExOne Company Reports 2020 First Quarter Results

May 7, 2020

Page 4 of 8

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, and under Part II, Item 1A, “Risk Factors” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, 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 therein. 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 and Quarterly Report on Form 10-Q that could cause actual results to differ from these forward-looking statements.

For more information, contact:

 

Douglas Zemba

Deborah K. Pawlowski / Karen L. Howard

Chief Financial Officer & Treasurer

Kei Advisors LLC

(724) 765-1331

(716) 843-3908 / (716) 843-3942

douglas.zemba@exone.com

 

dpawlowski@keiadvisors.com / khoward@keiadvisors.com

FINANCIAL TABLES FOLLOW.



The ExOne Company Reports 2020 First Quarter Results

May 7, 2020

Page 5 of 8

The ExOne Company

Statement of Consolidated Operations

(in thousands, except per-share amounts)

(Unaudited)

 

 

 

Three Months Ended

 

 

%

 

 

 

March 31,

 

 

Change

 

 

 

2020

 

 

2019

 

 

 

 

 

Revenue

 

$

13,383

 

 

$

9,579

 

 

 

40

%

Cost of sales

 

 

9,754

 

 

 

6,937

 

 

 

41

%

Gross profit

 

 

3,629

 

 

 

2,642

 

 

 

37

%

Gross margin

 

 

27.1

%

 

 

27.6

%

 

 

 

 

Research and development

 

 

2,476

 

 

 

2,432

 

 

 

2

%

Selling, general and administrative

 

 

6,163

 

 

 

5,423

 

 

 

14

%

Gain from sale-leaseback of property and equipment

 

 

(1,462

)

 

 

 

 

 

100

%

 

 

 

7,177

 

 

 

7,855

 

 

 

(9

%)

Operating loss

 

 

(3,548

)

 

 

(5,213

)

 

 

32

%

Interest expense

 

 

64

 

 

 

71

 

 

 

(10

%)

Other (income) expense  ̶  net

 

 

(190

)

 

 

12

 

 

NM

 

 

 

 

(126

)

 

 

83

 

 

NM

 

Loss before income taxes

 

 

(3,422

)

 

 

(5,296

)

 

 

35

%

Provision (benefit) for income taxes

 

 

226

 

 

 

(800

)

 

NM

 

Net loss

 

$

(3,648

)

 

$

(4,496

)

 

 

19

%

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.22

)

 

$

(0.28

)

 

 

21

%

Diluted

 

$

(0.22

)

 

$

(0.28

)

 

 

21

%

Weighted average shared outstanding (basic and diluted)

 

 

16,369

 

 

 

16,253

 

 

 

 

 

 

NM:  Not Meaningful

 

 

 

 


The ExOne Company Reports 2020 First Quarter Results

May 7, 2020

Page 6 of 8

The ExOne Company
Consolidated Balance Sheet

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

(Unaudited)

  

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

16,813

 

 

$

5,265

 

Restricted cash

 

 

508

 

 

 

978

 

Accounts receivable  ̶  net

 

 

4,954

 

 

 

6,522

 

Current portion of net investment in sales-type leases

 

 

289

 

 

 

213

 

Inventories  ̶  net

 

 

21,653

 

 

 

19,770

 

Prepaid expenses and other current assets

 

 

2,787

 

 

 

2,182

 

Total current assets

 

 

47,004

 

 

 

34,930

 

Property and equipment  ̶  net

 

 

20,720

 

 

 

38,895

 

Operating lease right-of-use assets

 

 

4,789

 

 

 

432

 

Net investment in sales-type leases  ̶  net of current portion

 

 

712

 

 

 

738

 

Other noncurrent assets

 

 

244

 

 

 

371

 

Total assets

 

$

73,469

 

 

$

75,366

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

155

 

 

$

153

 

Accounts payable

 

 

4,385

 

 

 

5,818

 

Accrued expenses and other current liabilities

 

 

4,590

 

 

 

6,942

 

Current portion of operating lease liabilities

 

 

1,684

 

 

 

158

 

Current portion of contract liabilities

 

 

13,646

 

 

 

11,846

 

Total current liabilities

 

 

24,460

 

 

 

24,917

 

Long-term debt  ̶  net of current portion

 

 

1,171

 

 

 

1,211

 

Operating lease liabilities  ̶  net of current portion

 

 

3,105

 

 

 

274

 

Contract liabilities  ̶  net of current portion

 

 

230

 

 

 

286

 

Other noncurrent liabilities

 

 

115

 

 

 

96

 

Total liabilities

 

 

29,081

 

 

 

26,784

 

Contingencies and commitments

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 200,000,000 shares authorized,

   16,386,487 (2020) and 16,346,960 (2019) shares issued and outstanding

 

 

164

 

 

 

163

 

Additional paid-in capital

 

 

177,141

 

 

 

176,850

 

Accumulated deficit

 

 

(120,596

)

 

 

(116,948

)

Accumulated other comprehensive loss

 

 

(12,321

)

 

 

(11,483

)

Total stockholders' equity

 

 

44,388

 

 

 

48,582

 

Total liabilities and stockholders' equity

 

$

73,469

 

 

$

75,366

 


 


The ExOne Company Reports 2020 First Quarter Results

May 7, 2020

Page 7 of 8

The ExOne Company
Statement of Consolidated Cash Flows

(in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(3,648

)

 

$

(4,496

)

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

 

 

 

 

 

 

 

 

Depreciation

 

 

923

 

 

 

1,165

 

Equity-based compensation

 

 

292

 

 

 

439

 

Amortization of debt issuance costs

 

 

19

 

 

 

23

 

Provision (recoveries) for bad debts  ̶  net

 

 

51

 

 

 

(73

)

Provision for slow-moving, obsolete and lower of cost or

   net realizable value inventories  ̶  net

 

 

22

 

 

 

107

 

Foreign exchange (gains) losses on intercompany transactions  ̶  net

 

 

(165

)

 

 

(11

)

Gain from sale-leaseback of property and equipment

 

 

(1,462

)

 

 

 

Gain from disposal of property and equipment  ̶  net

 

 

(2

)

 

 

 

Deferred income taxes

 

 

195

 

 

 

 

Changes in assets and liabilities, excluding effects of foreign currency

   translation adjustments:

 

 

 

 

 

 

 

 

Decrease in accounts receivable

 

 

1,487

 

 

 

2,877

 

(Increase) decrease in net investment in sales-type leases

 

 

(50

)

 

 

87

 

Increase in inventories

 

 

(2,146

)

 

 

(1,576

)

Increase in prepaid expenses and other assets

 

 

(672

)

 

 

(509

)

Decrease in accounts payable

 

 

(1,408

)

 

 

(793

)

Decrease in accrued expenses and other liabilities

 

 

(24

)

 

 

(1,748

)

Increase in contract liabilities

 

 

1,849

 

 

 

3,122

 

Net cash used for operating activities

 

 

(4,739

)

 

 

(1,386

)

Investing activities

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(338

)

 

 

(347

)

Proceeds from sale of property and equipment

 

 

16,228

 

 

 

 

Net cash provided by (used for) investing activities

 

 

15,890

 

 

 

(347

)

Financing activities

 

 

 

 

 

 

 

 

Payments on long-term debt

 

 

(39

)

 

 

(36

)

Proceeds from exercise of employee stock options

 

 

 

 

 

165

 

Taxes related to the net share settlement of equity-based awards

 

 

 

 

 

(68

)

Other

 

 

(3

)

 

 

(5

)

Net cash (used for) provided by financing activities

 

 

(42

)

 

 

56

 

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

 

 

(31

)

 

 

(121

)

Net change in cash, cash equivalents, and restricted cash

 

 

11,078

 

 

 

(1,798

)

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

 

 

6,243

 

 

 

9,140

 

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

 

$

17,321

 

 

$

7,342

 

 

 

 

 

 

 

 

 

 

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

 

$

852

 

 

$

819

 

Transfer of internally developed 3D printing machines from property

   and equipment to inventories for sale

 

$

823

 

 

$

 

Property and equipment included in accounts payable

 

$

56

 

 

$

23

 

Property and equipment included in accrued expenses and other current liabilities

 

$

 

 

$

7

 

Debt issuance costs included in accounts payable

 

$

41

 

 

$

 

 


 


The ExOne Company Reports 2020 First Quarter Results

May 7, 2020

Page 8 of 8

The ExOne Company

Additional Information

(Unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

3D printing machine units sold:

 

 

 

 

 

 

 

 

Direct (Metal)

 

 

9

 

 

 

6

 

Indirect (Sand)

 

 

5

 

 

 

2

 

 

 

 

14

 

 

 

8

 

 

 

The ExOne Company

Adjusted EBITDA Reconciliation

(in millions)

(Unaudited)

 

  

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Net loss

 

$

(3.6

)

 

$

(4.5

)

Interest expense

 

 

0.1

 

 

 

0.1

 

Provision (benefit) for income taxes

 

 

0.2

 

 

 

(0.8

)

Depreciation

 

 

0.9

 

 

 

1.2

 

Equity-based compensation

 

 

0.3

 

 

 

0.4

 

Gain from sale-leaseback of property and equipment

 

 

(1.5

)

 

 

 

Other (income) expense  ̶  net

 

 

(0.2

)

 

 

0.0

 

Adjusted EBITDA

 

$

(3.8

)

 

$

(3.6

)

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 (benefit) for income taxes, depreciation, equity-based compensation, gain from sale-leaseback of property and equipment and other (income) expense – net. Use of Adjusted EBITDA, which is a non-GAAP financial measure, as defined under SEC rules, is intended as a supplemental measure of ExOne’s performance that is not required by, or presented in accordance with, GAAP. The presentation of Adjusted EBITDA is not intended to be a substitute for, and should not be considered in isolation from, net income (loss) reported 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.