| Stratasys Ltd. | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (Unaudited) | ||||||||||
| (in thousands, except share data) | ||||||||||
| March 31, | December 31, | |||||||||
| 2018 | 2017 | |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 346,531 | $ | 328,761 | ||||||
| Accounts receivable, net | 119,844 | 132,671 | ||||||||
| Inventories | 120,065 | 115,717 | ||||||||
| Net investment in sales-type leases | 5,980 | 7,208 | ||||||||
| Prepaid expenses | 8,261 | 7,696 | ||||||||
| Other current assets | 19,295 | 22,858 | ||||||||
| Total current assets | 619,976 | 614,911 | ||||||||
| Non-current assets | ||||||||||
| Net investment in sales-type leases - long term | 3,423 | 4,439 | ||||||||
| Property, plant and equipment, net | 197,554 | 199,951 | ||||||||
| Goodwill | 387,416 | 387,108 | ||||||||
| Other intangible assets, net | 132,811 | 142,122 | ||||||||
| Other non-current assets | 34,475 | 31,219 | ||||||||
| Total non-current assets | 755,679 | 764,839 | ||||||||
| Total assets | $ | 1,375,655 | $ | 1,379,750 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 40,608 | $ | 39,849 | ||||||
| Current portion of long term-debt | 5,143 | 5,143 | ||||||||
| Accrued expenses and other current liabilities | 33,390 | 30,041 | ||||||||
| Accrued compensation and related benefits | 35,541 | 35,356 | ||||||||
| Deferred revenues | 55,061 | 52,908 | ||||||||
| Total current liabilities | 169,743 | 163,297 | ||||||||
| Non-current liabilities | ||||||||||
| Long-term debt | 25,857 | 27,143 | ||||||||
| Deferred tax liabilities | 4,141 | 7,069 | ||||||||
| Deferred revenues - long-term | 15,139 | 15,200 | ||||||||
| Other non-current liabilities | 30,785 | 32,899 | ||||||||
| Total non-current liabilities | 75,922 | 82,311 | ||||||||
| Total liabilities | 245,665 | 245,608 | ||||||||
| Redeemable non-controlling interests | 1,579 | 1,635 | ||||||||
| Equity | ||||||||||
|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands shares; 53,710 thousands shares and 53,631 thousands shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively |
145 | 145 | ||||||||
| Additional paid-in capital | 2,667,023 | 2,663,274 | ||||||||
| Accumulated other comprehensive loss | (5,337 | ) | (7,023 | ) | ||||||
| Accumulated deficit | (1,533,403 | ) | (1,523,906 | ) | ||||||
| Equity attributable to Stratasys Ltd. | 1,128,428 | 1,132,490 | ||||||||
| Non-controlling interest | (17 | ) | 17 | |||||||
| Total equity | 1,128,411 | 1,132,507 | ||||||||
| Total liabilities and equity | $ | 1,375,655 | $ | 1,379,750 | ||||||
| Stratasys Ltd. | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| (in thousands, except per share data) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2018 | 2017 | |||||||||
| (unaudited) | (unaudited) | |||||||||
| Net sales | ||||||||||
| Products | $ | 103,917 | $ | 115,087 | ||||||
| Services | 49,916 | 48,075 | ||||||||
| 153,833 | 163,162 | |||||||||
| Cost of sales | ||||||||||
| Products | 45,218 | 54,480 | ||||||||
| Services | 32,965 | 31,802 | ||||||||
| 78,183 | 86,282 | |||||||||
| Gross profit | 75,650 | 76,880 | ||||||||
| Operating expenses | ||||||||||
| Research and development, net | 25,110 | 24,634 | ||||||||
| Selling, general and administrative | 57,005 | 64,875 | ||||||||
| 82,115 | 89,509 | |||||||||
| Operating loss | (6,465 | ) | (12,629 | ) | ||||||
| Financial income, net | 8 | 256 | ||||||||
| Loss before income taxes | (6,457 | ) | (12,373 | ) | ||||||
| Income tax expenses | 601 | 1,326 | ||||||||
| Share in losses of associated companies | (6,073 | ) | (288 | ) | ||||||
| Net loss | (13,131 | ) | (13,987 | ) | ||||||
| Net loss attributable to non-controlling interests | (90 | ) | (130 | ) | ||||||
| Net loss attributable to Stratasys Ltd. | $ | (13,041 | ) | $ | (13,857 | ) | ||||
| Net loss per ordinary share attributable to Stratasys Ltd. | ||||||||||
| Basic | $ | (0.24 | ) | $ | (0.26 | ) | ||||
| Diluted | (0.24 | ) | (0.26 | ) | ||||||
| Basic | 53,657 | 52,690 | ||||||||
| Diluted | 53,657 | 52,690 | ||||||||
| Stratasys Ltd. | ||||||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results of Operations | ||||||||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||
| 2018 | Non-GAAP | 2018 | 2017 | Non-GAAP | 2017 | |||||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||||||||
| U.S. dollars and shares in thousands (except per share amounts) | ||||||||||||||||||||||||||||||
| Gross profit (1) | $ | 75,650 | $ | 5,599 | $ | 81,249 | $ | 76,880 | $ | 6,614 | $ | 83,494 | ||||||||||||||||||
| Operating income (loss) (1,2) |
$ |
(6,465 | ) | $ | 11,387 |
$ |
4,922 |
$ |
(12,629 | ) |
$ |
16,658 |
$ |
4,029 | ||||||||||||||||
|
Net income (loss) attributable to Stratasys Ltd. (1,2,3) |
$ |
(13,041 | ) | $ | 15,763 |
$ |
2,722 |
$ |
(13,857 | ) |
$ |
16,265 |
$ |
2,408 | ||||||||||||||||
|
Net income (loss) per diluted share attributable to Stratasys Ltd. (4) |
$ | (0.24 | ) |
$ |
0.29 | $ | 0.05 | $ | (0.26 | ) | $ | 0.31 | $ | 0.05 | ||||||||||||||||
| (1) | Acquired intangible assets amortization expense | 5,204 | 5,705 | |||||||||||||||||||||||||||
| Non-cash stock-based compensation expense | 387 | 643 | ||||||||||||||||||||||||||||
| Reorganization and other related costs | 18 | 94 | ||||||||||||||||||||||||||||
| Merger and acquisition related expense | (10 | ) | 172 | |||||||||||||||||||||||||||
| 5,599 | 6,614 | |||||||||||||||||||||||||||||
| (2) | Acquired intangible assets amortization expense | 2,558 | 2,544 | |||||||||||||||||||||||||||
| Non-cash stock-based compensation expense | 3,028 | 3,261 | ||||||||||||||||||||||||||||
| Change in fair value of obligations in connection with acquisitions | - | 696 | ||||||||||||||||||||||||||||
| Reorganization and other related costs | 1,671 | 1,686 | ||||||||||||||||||||||||||||
| Gain from sale of plant and property | (1,563 | ) | - | |||||||||||||||||||||||||||
| Merger and acquisition related expense | 94 | 1,857 | ||||||||||||||||||||||||||||
| 5,788 | 10,044 | |||||||||||||||||||||||||||||
| 11,387 | 16,658 | |||||||||||||||||||||||||||||
| (3) | Corresponding tax effect | (792 | ) | (585 | ) | |||||||||||||||||||||||||
| Amortization of acquired intangibles assets related to equity method investments | 5,168 | 192 | ||||||||||||||||||||||||||||
| $ | 15,763 | $ | 16,265 | |||||||||||||||||||||||||||
| (4) |
Weighted average number of ordinary shares outstanding- Diluted |
53,657 | 53,721 | 52,690 | 53,341 | |||||||||||||||||||||||||
| Stratasys Ltd. | |||
| Reconciliation of GAAP to Non-GAAP Forward Looking Guidance | |||
| Fiscal Year 2018 | |||
| (in millions, except per share data) | |||
| GAAP net loss | ($41) to ($25) | ||
|
Adjustments |
|||
| Stock-based compensation expense | $17 to $19 | ||
| Intangible assets amortization expense | $32 to $34 | ||
| Reorganization and other related costs | $7 to $9 | ||
| Tax expense related to Non-GAAP adjustments | ($4) to ($5) | ||
| Non-GAAP net income | $16 to $27 | ||
| GAAP loss per share | ($0.75) to ($0.46) | ||
| Non-GAAP diluted earnings per share | $0.30 to $0.50 | ||
