Company Raises Fiscal 2012 Revenue and Non-GAAP Earnings Guidance
The company reported record revenue of
System shipments totaled 911 units for the third quarter of 2012, a 52% increase when compared to 600 units shipped for the same period last year.
Non-GAAP net income was
The company reported net income of
The company reported revenue of
System shipments totaled 2,509 units for the nine-month period of 2012, compared to 1,902 units shipped for the same period last year.
Non-GAAP net income was
The company reported net income of
Appropriate reconciliations between GAAP and non-GAAP financial measures
are provided in a table at the end of this press release. The table
provides itemized detail of the non-GAAP financial measures, including
the expenses associated with the company's current efforts to combine
with
"The third quarter represents another solid performance for our company,
driven by the continued strong growth we are observing across all our
core businesses," said
"System unit sales, which grew by 52% during the third quarter over last
year, benefited from the launch our revolutionary new Mojo 3D printer,
the first 3D printer available for commercial use priced under
"Fortus 3D production system revenue grew by 37% over last year, driven
by the demand created by innovative new Direct Digital Manufacturing
(DDM) applications across multiple industries. Our proprietary Fused
Deposition Modeling (FDM®) technology continues to be
recognized as an innovative and cost-effective alternative manufacturing
solution. We are honored that
"Our RedEye parts service, which grew by 26% over last year, continues to experience strong demand, especially for large, complex and highly-durable production parts for the automotive and aerospace industries. We believe RedEye has a distinct advantage for those types of projects, given our ability to rapidly deliver high-quality parts produced on the Fortus 900mc. RedEye currently operates fourteen 900mc systems that are ideal for serving customers that need larger production parts.
"Solidscape, which we acquired in April of 2011, experienced strong
revenue growth of 21% during the third quarter over last year. The
division's products are widely recognized as the leader for DDM wax
casting applications that require high precision, ultra-fine feature
detail and a smooth surface finish. The division's new 3Z product line,
introduced in the second quarter, is a major contributor to its recent
success. The 3Z can produce parts at the highest possible resolution
within the industry and is generating significant interest with jewelry
and dental customers. We are optimistic about maintaining positive
momentum within
"We remain excited about our pending, game-changing combination with
"We are pleased with our third quarter performance, and are excited
about the many initiatives that we believe will continue to drive growth
for our company. In addition to the many opportunities provided by our
pending combination with
GAAP earnings guidance includes the estimated impact of
The investor conference call will be available via live webcast on the Stratasys Web site at www.stratasys.com under the "Investors" tab; or directly at the following web address: http://www.media-server.com/m/p/jg9sb7ze.
To participate by telephone, the domestic dial-in number is 866-203-3206, and the international dial-in is 617-213-8848. The access code is 41990330. Investors are advised to dial into the call at least ten minutes prior to the call to register.
The webcast will be available for 90 days on the "Investors" page of the Stratasys Web site or by accessing the provided web address.
(Financial tables follow)
Cautionary Statement Regarding Forward-Looking Statements
All statements herein that are not historical facts or that include such
words as "expects," "anticipates," "projects," "estimates," "vision,"
"could," "potential," "plan", "intends", "desires", "assume" or
"believes" or similar words expressing our view of, confidence in or
optimism with respect to future events constitute forward-looking
statements covered by the safe harbor protection of the Private
Securities Litigation Reform Act of 1995. Except for the historical
information herein, the matters discussed in this news release are
forward-looking statements that involve risks and uncertainties. These
include statements regarding the expected timing and ultimate closing of
the merger with
Non-GAAP Discussion
The information discussed within this release includes financial results
and projections that are in accordance with accounting principles
generally accepted in
This release is available on the
Additional information on the Emma Lavelle story can be accessed at http://www.stratasys.com/Resources/Case-Studies/Medical-FDM-Technology-Case-Studies/Nemours.aspx
Important Information for Investors and Shareholders
In connection with the proposed combination of
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About
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| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended September 30, |
||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Products | $ | 41,317,863 | $ | 32,512,544 | $ | 120,301,057 | $ | 91,273,133 | |||||||||||||
| Services | 8,405,612 | 7,440,470 | 23,791,947 | 21,048,816 | |||||||||||||||||
| 49,723,475 | 39,953,014 | 144,093,004 | 112,321,949 | ||||||||||||||||||
| Cost of sales | |||||||||||||||||||||
| Products | 17,563,569 | 15,284,820 | 54,692,340 | 43,752,872 | |||||||||||||||||
| Services | 4,203,443 | 3,114,248 | 12,328,692 | 9,029,273 | |||||||||||||||||
| 21,767,012 | 18,399,068 | 67,021,032 | 52,782,145 | ||||||||||||||||||
| Gross profit | 27,956,463 | 21,553,946 | 77,071,972 | 59,539,804 | |||||||||||||||||
| Operating expenses | |||||||||||||||||||||
| Research and development | 4,066,846 | 3,613,668 | 12,576,094 | 10,687,578 | |||||||||||||||||
| Selling, general and administrative | 14,780,526 | 10,083,451 | 42,365,253 | 28,738,325 | |||||||||||||||||
| 18,847,372 | 13,697,119 | 54,941,347 | 39,425,903 | ||||||||||||||||||
| Operating income | 9,109,091 | 7,856,827 | 22,130,625 | 20,113,901 | |||||||||||||||||
| Other income (expense) | |||||||||||||||||||||
| Interest income, net | 229,003 | 276,089 | 672,052 | 698,469 | |||||||||||||||||
| Foreign currency transaction losses, net | (72,586 | ) | (217,857 | ) | (265,141 | ) | (429,840 | ) | |||||||||||||
| Other, net | 7,021 | 755,030 | 109,922 | 2,264,307 | |||||||||||||||||
| 163,438 | 813,262 | 516,833 | 2,532,936 | ||||||||||||||||||
| Income before income taxes | 9,272,529 | 8,670,089 | 22,647,458 | 22,646,837 | |||||||||||||||||
| Income tax expense | 4,089,393 | 2,812,920 | 9,924,615 | 7,806,524 | |||||||||||||||||
| Net income | $ | 5,183,136 | $ | 5,857,169 | $ | 12,722,843 | $ | 14,840,313 | |||||||||||||
| Earnings per common share | |||||||||||||||||||||
| Basic | $ | 0.24 | $ | 0.28 | $ | 0.60 | $ | 0.70 | |||||||||||||
| Diluted | $ | 0.24 | $ | 0.27 | $ | 0.58 | $ | 0.68 | |||||||||||||
|
Weighted average number of common shares outstanding |
|||||||||||||||||||||
| Basic | 21,467,606 | 21,165,401 | 21,348,967 | 21,107,474 | |||||||||||||||||
| Diluted | 22,008,471 | 21,542,674 | 21,856,719 | 21,669,848 | |||||||||||||||||
| Note: Certain reclassifications have been made to prior period balances to conform to current period presentation. | |||||||||||||||||||||
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| CONSOLIDATED BALANCE SHEETS | |||||||||||
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December 31, | ||||||||||
| 2012 | 2011 | ||||||||||
| (unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 27,899,789 | $ | 20,092,200 | |||||||
| Short-term investments - held to maturity | 23,900,469 | 14,602,408 | |||||||||
|
Accounts receivable, less allowance for doubtful accounts of
|
35,865,540 | 26,230,289 | |||||||||
| Inventories | 32,079,430 | 22,771,460 | |||||||||
|
Net investment in sales-type leases, less allowance for doubtful
accounts of |
4,249,410 | 3,295,039 | |||||||||
| Prepaid expenses and other current assets | 2,193,015 | 3,259,012 | |||||||||
| Deferred income taxes | 2,973,000 | 2,973,000 | |||||||||
| Total current assets | 129,160,653 | 93,223,408 | |||||||||
| Property and equipment, net | 44,887,880 | 39,669,433 | |||||||||
| Other assets | |||||||||||
| Goodwill | 25,388,731 | 25,393,967 | |||||||||
| Other Intangible assets, net | 24,150,718 | 25,295,032 | |||||||||
| Net investment in sales-type leases | 7,249,832 | 5,494,753 | |||||||||
| Long-term investments - held to maturity | 13,915,821 | 32,581,472 | |||||||||
| Other non-current assets | 145,652 | 112,300 | |||||||||
| Total other assets | 70,850,754 | 88,877,524 | |||||||||
| Total assets | $ | 244,899,287 | $ | 221,770,365 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable and other current liabilities | $ | 21,628,011 | $ | 19,368,197 | |||||||
| Unearned revenues | 9,968,263 | 9,768,610 | |||||||||
| Total current liabilities | 31,596,274 | 29,136,807 | |||||||||
| Non-current liabilities | |||||||||||
| Deferred tax liabilities | 6,760,000 | 6,760,000 | |||||||||
| Unearned revenues - long-term | 2,662,953 | 2,562,195 | |||||||||
| Total liabilities | 41,019,227 | 38,459,002 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity | |||||||||||
|
Common stock, |
275,012 | 269,333 | |||||||||
| Additional paid-in capital | 125,951,072 | 118,134,006 | |||||||||
| Retained earnings | 116,734,701 | 104,011,848 | |||||||||
| Accumulated other comprehensive loss | (76,300 | ) | (99,399 | ) | |||||||
|
Treasury stock at cost, 5,687,631 shares at |
(39,004,425 | ) | (39,004,425 | ) | |||||||
| Total stockholders' equity | 203,880,060 | 183,311,363 | |||||||||
| Total liabilities and stockholders' equity | $ | 244,899,287 | $ | 221,770,365 | |||||||
| Note: Certain reclassifications have been made to prior period balances to conform to current period presentation. | |||||||||||
|
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| RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS | |||||||||||||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
||||||||||||||||||||||||||||
| As Reported | Non-GAAP | As Reported | Non-GAAP | ||||||||||||||||||||||||||
| (unaudited) | Adjustments | (unaudited) | (unaudited) | Adjustments | (unaudited) | ||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Products | $ | 41,317,863 | $ | - | $ | 41,317,863 | $ | 32,512,544 | $ | - | $ | 32,512,544 | |||||||||||||||||
| Services | 8,405,612 | - | 8,405,612 | 7,440,470 | - | 7,440,470 | |||||||||||||||||||||||
| 49,723,475 | - | 49,723,475 | 39,953,014 | - | 39,953,014 | ||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||
| Products | 17,563,569 | (507,012 | ) | (a) | 17,056,557 | 15,284,820 | (436,012 | ) | (d) | 14,848,808 | |||||||||||||||||||
| Services | 4,203,443 | - | 4,203,443 | 3,114,248 | - | 3,114,248 | |||||||||||||||||||||||
| 21,767,012 | (507,012 | ) | 21,260,000 | 18,399,068 | (436,012 | ) | 17,963,056 | ||||||||||||||||||||||
| Gross profit | 27,956,463 | 507,012 | 28,463,475 | 21,553,946 | 436,012 | 21,989,958 | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Research and development | 4,066,846 | - | 4,066,846 | 3,613,668 | - | 3,613,668 | |||||||||||||||||||||||
| Selling, general and administrative | 14,780,526 | (3,410,994 | ) | (b) | 11,369,532 | 10,083,451 | (574,162 | ) | (e) | 9,509,289 | |||||||||||||||||||
| 18,847,372 | (3,410,994 | ) | 15,436,378 | 13,697,119 | (574,162 | ) | 13,122,957 | ||||||||||||||||||||||
| Operating income | 9,109,091 | 3,918,006 | 13,027,097 | 7,856,827 | 1,010,174 | 8,867,001 | |||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||
| Interest income, net | 229,003 | - | 229,003 | 276,089 | - | 276,089 | |||||||||||||||||||||||
| Foreign currency transaction losses, net | (72,586 | ) | - | (72,586 | ) | (217,857 | ) | - | (217,857 | ) | |||||||||||||||||||
| Other, net | 7,021 | - | 7,021 | 755,030 | (626,188 | ) | (f) | 128,842 | |||||||||||||||||||||
| 163,438 | - | 163,438 | 813,262 | (626,188 | ) | 187,074 | |||||||||||||||||||||||
| Income before income taxes | 9,272,529 | 3,918,006 | 13,190,535 | 8,670,089 | 383,986 | 9,054,075 | |||||||||||||||||||||||
| Income tax expense | 4,089,393 | 376,723 | (c) | 4,466,116 | 2,812,920 | 89,362 | (c) | 2,902,282 | |||||||||||||||||||||
| Net income | $ | 5,183,136 | $ | 3,541,283 | $ | 8,724,419 | $ | 5,857,169 | $ | 294,624 | $ | 6,151,793 | |||||||||||||||||
| Earnings per common share | |||||||||||||||||||||||||||||
| Basic | $ | 0.24 | $ | 0.16 | $ | 0.41 | $ | 0.28 | $ | 0.01 | $ | 0.29 | |||||||||||||||||
| Diluted | $ | 0.24 | $ | 0.16 | $ | 0.40 | $ | 0.27 | $ | 0.01 | $ | 0.29 | |||||||||||||||||
|
Weighted average number of common shares outstanding |
|||||||||||||||||||||||||||||
| Basic | 21,467,606 | 21,467,606 | 21,165,401 | 21,165,401 | |||||||||||||||||||||||||
| Diluted | 22,008,471 | 22,008,471 | 21,542,674 | 21,542,674 | |||||||||||||||||||||||||
These adjustments reconcile the Company's GAAP results of operations to its non-GAAP results of operations. The Company believes that presentation of results adjusted for the non-GAAP items described below provides meaningful supplemental information to both management and investors.
(a) Represents amortization expense of
(b) Represents non-cash stock-based compensation expense of
(c) Represents the tax benefit related to non-GAAP adjustments.
(d) Represents amortization expense related to acquired
(e) Represents non-cash stock-based compensation expense of
(f) Represents gain on sale of an auction rate security during the third quarter of 2011.
The Company considers these non-GAAP measures to be indicative of its core operating results and facilitates a comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes, however these measures should not be viewed as a substitute for the Company's GAAP results.
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| RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS | ||||||||||||||||||||||||||||
|
Nine Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||
| As Reported | Non-GAAP | As Reported | Non-GAAP | |||||||||||||||||||||||||
| (unaudited) | Adjustments | (unaudited) | (unaudited) | Adjustments | (unaudited) | |||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Products | $ | 120,301,057 | $ | - | $ | 120,301,057 | $ | 91,273,133 | $ | - | $ | 91,273,133 | ||||||||||||||||
| Services | 23,791,947 | - | 23,791,947 | 21,048,816 | - | 21,048,816 | ||||||||||||||||||||||
| 144,093,004 | - | 144,093,004 | 112,321,949 | - | 112,321,949 | |||||||||||||||||||||||
| Cost of sales | ||||||||||||||||||||||||||||
| Products | 54,692,340 | (1,379,036 | ) | (a) | 53,313,304 | 43,752,872 | (1,287,781 | ) | (d) | 42,465,092 | ||||||||||||||||||
| Services | 12,328,692 | - | 12,328,692 | 9,029,273 | - | 9,029,273 | ||||||||||||||||||||||
| 67,021,032 | (1,379,036 | ) | 65,641,996 | 52,782,145 | (1,287,781 | ) | 51,494,365 | |||||||||||||||||||||
| Gross profit | 77,071,972 | 1,379,036 | 78,451,008 | 59,539,804 | 1,287,781 | 60,827,585 | ||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||
| Research and development | 12,576,094 | - | 12,576,094 | 10,687,578 | - | 10,687,578 | ||||||||||||||||||||||
| Selling, general and administrative | 42,365,253 | (9,274,541 | ) | (b) | 33,090,712 | 28,738,325 | (1,925,579 | ) | (e) | 26,812,746 | ||||||||||||||||||
| 54,941,347 | (9,274,541 | ) | 45,666,806 | 39,425,903 | (1,925,579 | ) | 37,500,324 | |||||||||||||||||||||
| Operating income | 22,130,625 | 10,653,577 | 32,784,202 | 20,113,901 | 3,213,360 | 23,327,261 | ||||||||||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||||||
| Interest income, net | 672,052 | - | 672,052 | 698,469 | - | 698,469 | ||||||||||||||||||||||
| Foreign currency transaction losses, net | (265,141 | ) | - | (265,141 | ) | (429,840 | ) | - | (429,840 | ) | ||||||||||||||||||
| Other, net | 109,922 | - | 109,922 | 2,264,307 | (1,830,596 | ) | (f) | 433,711 | ||||||||||||||||||||
| 516,833 | - | 516,833 | 2,532,936 | (1,830,596 | ) | 702,340 | ||||||||||||||||||||||
| Income before income taxes | 22,647,458 | 10,653,577 | 33,301,035 | 22,646,837 | 1,382,764 | 24,029,601 | ||||||||||||||||||||||
| Income tax expense | 9,924,615 | 1,513,033 | (c) | 11,437,648 | 7,806,524 | 358,211 | (c) | 8,164,735 | ||||||||||||||||||||
| Net income | $ | 12,722,843 | $ | 9,140,544 | $ | 21,863,387 | $ | 14,840,313 | $ | 1,024,552 | $ | 15,864,865 | ||||||||||||||||
| Earnings per common share | ||||||||||||||||||||||||||||
| Basic | $ | 0.60 | $ | 0.43 | $ | 1.02 | $ | 0.70 | $ | 0.05 | $ | 0.75 | ||||||||||||||||
| Diluted | $ | 0.58 | $ | 0.42 | $ | 1.00 | $ | 0.68 | $ | 0.05 | $ | 0.73 | ||||||||||||||||
|
Weighted average number of common shares outstanding |
||||||||||||||||||||||||||||
| Basic | 21,348,967 | 21,348,967 | 21,107,474 | 21,107,474 | ||||||||||||||||||||||||
| Diluted | 21,856,719 | 21,856,719 | 21,669,848 | 21,669,848 | ||||||||||||||||||||||||
These adjustments reconcile the Company's GAAP results of operations to its non-GAAP results of operations. The Company believes that presentation of results adjusted for the non-GAAP items described below provides meaningful supplemental information to both management and investors.
(a) Represents amortization expense of
(b) Represents non-cash stock-based compensation expense of
(c) Represents the tax benefit (expense) related to non-GAAP adjustments.
(d) Represents expense of
(e) Represents non-cash stock-based compensation expense of
(f) Represents gain on sale of an equity investment during the first quarter of 2011 and gain on sale of an auction rate security during the third quarter of 2011.
The Company considers these non-GAAP measures to be indicative of its core operating results and facilitates a comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes, however these measures should not be viewed as a substitute for the Company's GAAP results.
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| FISCAL YEAR 2012 | ||||
| RECONCILIATION OF NON-GAAP TO GAAP FORWARD LOOKING GUIDANCE | ||||
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Earnings |
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Adjustments |
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| Stock-based compensation expense |
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| Non-GAAP estimate |
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Forward looking guidance does not reflect the potential combined
performance of
Director of Investor
Relations
shane.glenn@stratasys.com
Source:
News Provided by Acquire Media