Materialise NV (NASDAQ:MTLS), a leading provider of additive
manufacturing and medical software and of sophisticated 3D printing
services, today announced its financial results for the third
quarter ended September 30, 2022.
Highlights – Third Quarter 2022
- Total revenue increased 11.7% to 58,288 kEUR compared to 52,195
kEUR for the third quarter of 2021.
- Total deferred revenue from annual software sales and
maintenance fees increased by 3,214 kEUR to 38,359 kEUR compared to
December 31, 2021.
- Adjusted EBITDA was 5,072 kEUR, compared to 9,739 kEUR for the
2021 period.
- Net profit for the third quarter of 2022 was 1,413 kEUR, or
0.02 EUR per diluted share, compared to 8,657 kEUR, or 0.15 EUR per
diluted share, for the 2021 period.
Executive Chairman Peter Leys commented, “Demand for the
products and solutions of each of our three segments remained solid
even in these uncertain macro-economic times. Materialise’s revenue
increased by almost 12% compared to the same period last year and
our deferred revenue from annual software sales and maintenance
fees increased by almost 10% compared to December 31, 2021. As a
result of our continued investment in our growth businesses, but
also because of inflation and, in particular our increased labor
costs, our Adjusted EBITDA for the quarter was 5,072 kEUR compared
to 9,739 kEUR for the third quarter of 2021. Our results included
operational investments in Identify3D, a developer of AM cloud
security systems that we acquired on September 1, 2022.”
Third Quarter 2022 Results
Total revenue for the third quarter of 2022 increased 11.7% to
58,288 kEUR from 52,195 kEUR for the third quarter of 2021.
Adjusted EBITDA amounted to 5,072 kEUR for the third quarter of
2022 compared to 9,739 kEUR for the 2021 period. The Adjusted
EBITDA margin (Adjusted EBITDA divided by total revenue) for the
third quarter of 2022 was 8.7%, compared to 18.7% for the third
quarter of 2021.
Revenue from our Materialise Software segment increased 3.8% to
10,863 kEUR for the third quarter of 2022 from 10,468 kEUR for the
same quarter last year. Segment EBITDA decreased, including the
effect of ongoing investments in Link3D and Identify3D, to 202 kEUR
from 3,708 kEUR while the segment EBITDA margin was 1.9% compared
to 35.4% for the prior-year period.
Revenue from our Materialise Medical segment increased 13.1% to
21,391 kEUR for the third quarter of 2022 compared to 18,910 kEUR
for the same period in 2021. Segment EBITDA amounted to 4,765 kEUR
for the third quarter of 2022 compared to 5,251 kEUR while the
segment EBITDA margin was 22.3% compared to 27.8% for the third
quarter of 2021.
Revenue from our Materialise Manufacturing segment increased
14.1% to 26,033 kEUR for the third quarter of 2022 from 22,817 kEUR
for the third quarter of 2021. Segment EBITDA amounted to 2,530
kEUR compared to 3,546 kEUR for the same period last year, while
the segment EBITDA margin was 9.7% compared to 15.5% for the third
quarter of 2021.
Gross profit was 32,042 kEUR compared to 31,076 kEUR for the
same period last year, while gross profit as a percentage of
revenue decreased to 55.0% compared to 59.5% for the third quarter
of 2021.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
increased, in the aggregate, 24.5% to 33,491 kEUR for the third
quarter of 2022 from 26,900 kEUR for the third quarter of
2021.
Net other operating income increased to 1,166 kEUR from 355 kEUR
for the third quarter of 2021.
Operating result amounted to (282) kEUR compared to 4,529 kEUR
for the third quarter of 2021.
Net financial result was 2,173 kEUR compared to 4,203 kEUR for
the third quarter of 2021.
The third quarter of 2022 contained income tax expenses of (478)
kEUR, compared to (75) kEUR in the third quarter of 2021.
As a result of the above, net profit for the third quarter of
2022 was 1,413 kEUR, compared to 8,657 kEUR for the same period in
2021. Total comprehensive income for the third quarter of 2022,
which includes exchange differences on translation of foreign
operations, was 1,638 kEUR compared to 8,272 kEUR for the 2021
period.
At September 30, 2022, we had cash and cash equivalents of
150,621 kEUR compared to 196,028 kEUR at December 31, 2021. Gross
debt amounted to 83,925 kEUR, compared to 99,107 kEUR at December
31, 2021. As a result, our net cash position (cash and cash
equivalents less gross debt) was 66,696 kEUR, a decrease of 30,225
kEUR, and included the effect of our call option exercise to
acquire 100% of the shares of Link3D, and of our acquisition of
Identify3D.
Cash flow from operating activities for the third quarter of the
year 2022 was 3,840 kEUR compared to 4,388 kEUR for the same period
in 2021. Total capital expenditures for the third quarter of 2022
amounted to 9,441 kEUR.
Net shareholders’ equity at September 30, 2022 was 236,559 kEUR
compared to 232,577 kEUR at December 31, 2021.
2022 Guidance
Mr. Leys concluded, “The revenue growth posted by each of our
segments during the first nine months of this year strengthens our
confidence that our full year 2022 revenues will be at least 10%
higher than in 2021. While inflation and pressure on the labor
market, which are higher and more persistent than we expected at
the beginning of 2022, weigh on our results, we continue to make
prudent investments in select growth businesses. As a result, we
continue to expect that our consolidated EBITDA for the full year
2022 will be in the range of 20 mEUR to 25 mEUR.”
Non-IFRS Measures
Materialise uses EBITDA and Adjusted EBITDA as supplemental
financial measures of its financial performance. EBITDA is
calculated as net profit plus income taxes, financial expenses
(less financial income), shares of profit or loss in a joint
venture and depreciation and amortization. Adjusted EBITDA is
determined by adding share-based compensation expenses,
acquisition-related expenses of business combinations, impairments
and revaluation of fair value due to business combinations to
EBITDA. Management believes these non-IFRS measures to be important
measures as they exclude the effects of items which primarily
reflect the impact of long-term investment and financing decisions,
rather than the performance of the company’s day-to-day operations.
As compared to net profit, these measures are limited in that they
do not reflect the periodic costs of certain capitalized tangible
and intangible assets used in generating revenues in the company’s
business, or the charges associated with impairments. Management
evaluates such items through other financial measures such as
capital expenditures and cash flow provided by operating
activities. The company believes that these measurements are useful
to measure a company’s ability to grow or as a valuation
measurement. The company’s calculation of EBITDA and Adjusted
EBITDA may not be comparable to similarly titled measures reported
by other companies. EBITDA and Adjusted EBITDA should not be
considered as alternatives to net profit or any other performance
measure derived in accordance with IFRS. The company’s presentation
of EBITDA and Adjusted EBITDA should not be construed to imply that
its future results will be unaffected by unusual or non-recurring
items.
Exchange Rate
This document contains translations of certain euro amounts into
U.S. dollars at specified rates solely for the convenience of
readers. Unless otherwise noted, all translations from euros to
U.S. dollars in this document were made at a rate of EUR 1.00 to
USD 0.9748, the reference rate of the European Central Bank on
September 30, 2022.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the third quarter of 2022 on
Thursday, October 27, 2022, at 8:30 a.m. ET/2:30 p.m. CET. Company
participants on the call will include Wilfried Vancraen, Founder
and Chief Executive Officer; Peter Leys, Executive Chairman; and
Johan Albrecht, Chief Financial Officer. A question-and-answer
session will follow management’s remarks.
- To access the conference call by phone, please click the link
below at least 15 minutes prior to the scheduled start time and you
will be provided with dial-in details. Participants can choose to
dial in or to receive a call to connect to Materialise’s conference
call.
-
https://register.vevent.com/register/BI66dc4a1f45c744f2ad3d85501fc27140
The conference call will also be broadcast live over the
Internet with an accompanying slide presentation, which can be
accessed on the company’s website at
http://investors.materialise.com. A webcast of the conference call
will be archived on the company's website for one year.
About Materialise
Materialise incorporates 30 years of 3D printing experience into
a range of software solutions and 3D printing services, which form
the backbone of the 3D printing industry. Materialise’s open and
flexible solutions enable players in a wide variety of industries,
including healthcare, automotive, aerospace, art and design, and
consumer goods, to build innovative 3D printing applications that
aim to make the world a better and healthier place. Headquartered
in Belgium, with branches worldwide, Materialise combines one of
the largest groups of software developers in the industry with one
of the largest 3D printing facilities in the world. For additional
information, please visit: www.materialise.com.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, regarding, among other things, our intentions, beliefs,
assumptions, projections, outlook, analyses or current
expectations, plans, objectives, strategies and prospects, both
financial and business, including statements concerning, among
other things, our results of operations, cash needs, capital
expenditures, expenses, financial condition, liquidity, prospects,
growth and strategies (including how our business, results of
operations and financial condition could be impacted by the current
armed conflict in Ukraine and the COVID-19 pandemic and related
public health measures, as well as the related actions we are
taking in response), and the trends and competition that may affect
the markets, industry or us. Such statements are subject to known
and unknown uncertainties and risks. When used in this press
release, the words “estimate,” “expect,” “anticipate,” “project,”
“plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,”
“might,” “aim,” “should,” and variations of such words or similar
expressions are intended to identify forward-looking statements.
These forward-looking statements are based upon the expectations of
management under current assumptions at the time of this press
release. These expectations, beliefs and projections are expressed
in good faith and the company believes there is a reasonable basis
for them. However, the company cannot offer any assurance that our
expectations, beliefs and projections will actually be achieved. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events, competitive dynamics
and industry change, and depend on economic circumstances that may
or may not occur in the future or may occur on longer or shorter
timelines than anticipated. We caution you that forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties and other factors that are
in some cases beyond our control. All of the forward-looking
statements are subject to risks and uncertainties that may cause
the company's most recent actual results to differ materially from
our expectations, including risk factors described in the company's
most recent annual report on Form 20-F filed with the U.S.
Securities and Exchange Commission. There are a number of risks and
uncertainties that could cause the company's actual results to
differ materially from the forward-looking statements contained in
this press release.
The company is providing this information as of the date of this
press release and does not undertake any obligation to update any
forward-looking statements contained in this press release as a
result of new information, future events or otherwise, unless it
has obligations under the federal securities laws to update and
disclose material developments related to previously disclosed
information.
Consolidated income statements
(Unaudited)
for the three months
ended
September 30,
for the nine months
ended
September 30,
In '000
2022
2022
2021(*)
2022
2021(*)
U.S.$
€
€
€
€
Revenue
56,819
58,288
52,195
169,319
148,461
Cost of Sales
(25,584
)
(26,245
)
(21,119
)
(76,236
)
(64,378
)
Gross Profit
31,235
32,042
31,076
93,083
84,084
Gross profit as % of revenue
55.0
%
55.0
%
59.5
%
55.0
%
56.6
%
Research and development expenses
(9,078
)
(9,313
)
(6,602
)
(26,074
)
(19,982
)
Sales and marketing expenses
(14,815
)
(15,198
)
(12,413
)
(44,841
)
(35,730
)
General and administrative expenses
(8,754
)
(8,980
)
(7,885
)
(26,089
)
(23,449
)
Net other operating income (expenses)
1,137
1,166
355
2,603
2,318
Operating (loss) profit
(275
)
(282
)
4,529
(1,318
)
7,239
Financial expenses
(2,057
)
(2,110
)
2,334
(4,671
)
(3,182
)
Financial income
4,175
4,283
1,869
9,800
4,426
Share in loss of joint venture
-
-
-
-
-
(Loss) profit before taxes
1,843
1,891
8,732
3,812
8,483
Income Taxes (*)
(466
)
(478
)
(75
)
(1,377
)
(101
)
Net (loss) profit for the period (*)
1,377
1,413
8,657
2,435
8,382
Net (loss) profit attributable to:
-
The owners of the parent
1,385
1,421
8,660
2,457
8,386
Non-controlling interest
(8
)
(8
)
(3
)
(21
)
(4
)
Earning per share attributable to owners of the
parent Basic (*)
0.02
0.02
0.15
0.04
0.15
Diluted (*)
0.02
0.02
0.15
0.04
0.15
Weighted average basic shares outstanding
59,064
59,064
58,731
59,064
55,935
Weighted average diluted shares outstanding
59,089
59,089
58,944
59,099
56,206
(*) The year 2021 has been restated to reflect the final accounting
of the business combination with RS Print. Impact on the nine
months ended September 30 income taxes and net profit is (46)k€.
The year 2021 has been restated to reflect the final accounting of
the business combination with RS Print. Impact on the three months
ended September 30 income taxes and net profit is 5 k€.
Consolidated statements of
comprehensive income (Unaudited)
for the three months
ended
September 30,
for the nine months
ended
September 30,
In 000€
2022
2022
2021(*)
2022
2021(*)
U.S.$
€
€
€
€
Net profit (loss) for the period (*)
1,377
1,413
8,657
2,435
8,382
Other comprehensive income Recycling Exchange
difference on translation of foreign operations
219
225
(385
)
1,291
1,590
Non-recycling Fair value adjustments through OCI - Equity
instruments
-
-
-
(0
)
48
Other comprehensive income (loss), net of taxes
219
225
(385
)
1,291
1,638
Total comprehensive income (loss) for the year, net of taxes
1,596
1,638
8,272
3,726
10,020
Total comprehensive income (loss) attributable to: The owners of
the parent
1,604
1,646
8,275
3,748
10,023
Non-controlling interests
(8
)
(8
)
(3
)
(21
)
(3
)
(*) The year 2021 has been restated to reflect the final accounting
of the business combination with RS Print. Impact on the nine
months ended September 30 income taxes and net profit is (46)k€.
The year 2021 has been restated to reflect the final accounting of
the business combination with RS Print. Impact on the three months
ended September 30 income taxes and net profit is 5 k€.
Consolidated statement of financial
position (Unaudited)
As of
September 30,
As of
December 31,
In 000€
2022
2021
Assets Non-current assets Goodwill
50,190
18,726
Intangible assets
38,710
31,668
Property, plant & equipment
92,335
84,451
Right-of-Use assets
8,520
9,054
Investments in joint ventures
-
-
Deferred tax assets
217
227
Investments in convertible loans
3,431
3,560
Investments in non-listed equity instruments
399
399
Other non-current assets
4,948
7,520
Total non-current assets
198,750
155,605
Current assets Inventories
15,532
11,295
Trade receivables
42,329
41,541
Other current assets
8,374
8,940
Cash and cash equivalents
150,621
196,028
Total current assets
216,856
257,803
Total assets
415,606
413,408
As of
September 30,
As of
December 31,
In 000€
2022
2021
Equity and liabilities Equity Share capital
4,487
4,489
Share premium
233,869
233,872
Retained earnings and other reserves
(1,797
)
(5,784
)
Equity attributable to the owners of the parent
236,559
232,577
Non-controlling interest
(21
)
1
Total equity
236,538
232,578
Non-current liabilities Loans & borrowings
58,126
72,637
Lease liabilities
5,004
5,268
Deferred tax liabilities
4,239
4,371
Deferred income
6,932
4,952
Other non-current liabilities
1,027
2,168
Total non-current liabilities
75,328
89,396
Current liabilities Loans & borrowings
17,593
17,849
Lease liabilities
3,202
3,353
Trade payables
25,038
20,171
Tax payables
1,128
783
Deferred income
36,112
33,306
Other current liabilities
20,667
15,972
Total current liabilities
103,740
91,434
Total equity and liabilities
415,606
413,408
Consolidated statement of cash flows
(Unaudited)
for the nine months
ended
September 30,
In 000€
2022
2021*
Operating activities Net (loss) profit for the period (*)
2,435
8,382
Non-cash and operational adjustments Depreciation of property plant
& equipment
11,335
11,460
Amortization of intangible assets
4,859
3,780
Impairment of goodwill and intangible assets
-
-
Share-based payment expense
(121
)
(878
)
Loss (gain) on disposal of property, plant & equipment
59
43
Movement in provisions
(506
)
7
Movement reserve for bad debt and slow moving inventory
(42
)
154
Financial income
(9,771
)
(4,426
)
Financial expense
5,009
3,182
Impact of foreign currencies
98
107
Share in loss (gain) of a joint venture (equity method)
-
-
(Deferred) income taxes (*)
1,384
101
Other non-current liabilities
-
-
Working capital adjustments
9,109
(4,531
)
Decrease (increase) in trade receivables and other receivables
(184
)
(7,553
)
Decrease (increase) in inventories and contracts in progress
(4,356
)
(1,770
)
Increase (decrease) in deferred revenue
3,815
(56
)
Increase (decrease) in trade payables and other payables
9,834
4,848
Income tax paid & Interest received
(262
)
108
Net cash flow from operating activities
23,587
17,490
(*) The year 2021 has been restated to reflect the final accounting
of the business combination with RS Print. Impact on Net profit for
the period and on (Deferred) income taxes is (46) k€.
for the nine months
ended
September 30,
In 000€
2022
2021
Investing activities Purchase of property, plant &
equipment
(16,066
)
(4,827
)
Purchase of intangible assets
(3,422
)
(2,439
)
Proceeds from the sale of property, plant & equipment &
intangible assets (net)
319
295
Acquisition of subsidiary (net of cash)
(29,355
)
-
(Convertible) Loans granted
-
1,239
Investment in subsidiary, net of cash acquired
-
(1,680
)
Net cash flow used in investing activities
(48,523
)
(7,412
)
Financing activities Repayment of loans & borrowings
(15,182
)
(11,169
)
Repayment of leases
(2,566
)
(2,841
)
Capital increase
-
85,787
Interest paid
(1,665
)
(1,652
)
Other financial income (expense)
1,378
2,740
Net cash flow from (used in) financing activities
(18,035
)
72,865
Net increase/(decrease) of cash & cash equivalents
(42,972
)
82,943
Cash & Cash equivalents at the beginning of the year
196,028
111,538
Exchange rate differences on cash & cash equivalents
(2,433
)
465
Cash & cash equivalents at end of the period
150,621
194,946
Reconciliation of Net Profit (Loss) to
EBITDA and Adjusted EBITDA (Unaudited)
for the three months
ended
September 30,
for the nine months
ended
September 30,
In 000€
2022
2021 (*)
2022
2021 (*)
Net profit (loss) for the period (*)
1,413
8,657
2,435
8,382
Income taxes (*)
478
75
1,377
101
Financial expenses
2,110
(2,334
)
4,671
3,182
Financial income
(4,283
)
(1,869
)
(9,800
)
(4,426
)
Depreciation and amortization
5,378
5,314
16,194
15,240
Share in loss of joint venture
-
-
-
-
EBITDA
5,096
9,843
14,876
22,480
Share-based compensation expense (1)
(24
)
(104
)
(121
)
(878
)
Acquisition-related expenses of business combinations (2)
-
-
-
405
Adjusted EBITDA
5,072
9,739
14,755
22,007
(1)
Share-based compensation expense represents the cost of
equity-settled and share-based payments to employees.
(2)
Acquisition-related expenses of business combinations represents
expenses incurred in connection with the acquisition of our option
to buy Link3D.
(*)
The year 2021 has been restated to reflect the final accounting of
the business combination with RS Print. Impact on the nine months
ended September 30 income taxes and net profit is (46)k€. The year
2021 has been restated to reflect the final accounting of the
business combination with RS Print. Impact on the three months
ended September 30 income taxes and net profit is 5 k€.
Segment P&L (Unaudited)
In 000€
Materialise
Software
Materialise
Medical
Materialise
Manufacturing
Total
segments
Unallocated (1) Consolidated For the three months
ended September 30, 2022 Revenues
10,863
21,391
26,033
58,288
0
58,288
Segment (adj) EBITDA
202
4,765
2,530
7,497
(2,425
)
5,072
Segment (adj) EBITDA %
1.9
%
22.3
%
9.7
%
12.9
%
8.7
%
For the three months ended September 30, 2021 Revenues
10,468
18,910
22,817
52,196
(0
)
52,195
Segment (adj) EBITDA
3,708
5,251
3,546
12,506
(2,767
)
9,739
Segment (adj) EBITDA %
35.4
%
27.8
%
15.5
%
24.0
%
18.7
%
In 000€
Materialise
Software
Materialise
Medical
Materialise
Manufacturing
Total
segments
Unallocated (1) Consolidated For the nine months
ended September 30, 2022 Revenues
31,989
60,592
76,739
169,319
0
169,319
Segment (adj) EBITDA
2,955
12,466
6,722
22,144
(7,388
)
14,755
Segment (adj) EBITDA %
9.2
%
20.6
%
8.8
%
13.1
%
8.7
%
For the nine months ended September 30, 2021 Revenues
30,719
52,686
65,199
148,604
(142
)
148,461
Segment (adj) EBITDA
10,266
14,313
5,252
29,831
(7,826
)
22,004
Segment (adj) EBITDA %
33.4
%
27.2
%
8.1
%
20.1
%
14.8
%
(1) Unallocated segment adjusted EBITDA consists of
corporate research and development and corporate other operating
income (expense), and the added share-based compensation expenses,
acquisition related expenses of business combinations, impairments
and fair value of business combinations that are included in
Adjusted EBITDA.
Reconciliation of Net Profit (Loss) to
Segment adjusted EBITDA (Unaudited)
for the three months
ended
September 30,
for the nine months
ended
September 30,
In 000€
2022
2021 (*)
2022
2021 (*)
Net profit (loss) for the period (*)
1,413
8,657
2,435
8,382
Income taxes (*)
478
75
1,377
101
Financial cost
2,110
(2,334
)
4,671
3,182
Financial income
(4,283
)
(1,869
)
(9,800
)
(4,426
)
Share in loss of joint venture
-
-
-
-
Operating (loss) profit
(282
)
4,529
(1,318
)
7,239
Depreciation and amortization
5,378
5,314
16,194
15,240
Corporate research and development
592
710
2,057
2,191
Corporate headquarter costs
2,491
2,463
7,103
6,907
Other operating income (expense)
(681
)
(511
)
(1,892
)
(1,745
)
Segment adjusted EBITDA
7,497
12,506
22,144
29,831
(*) The year 2021 has been restated to reflect the final accounting
of the business combination with RS Print. Impact on the nine
months ended September 30 income taxes and net profit is (46)k€.
The year 2021 has been restated to reflect the final accounting of
the business combination with RS Print. Impact on the three months
ended September 30 income taxes and net profit is 5 k€.
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version on businesswire.com: https://www.businesswire.com/news/home/20221027005075/en/
Investor Relations Harriet Fried LHA 212.838.3777
hfried@lhai.com
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