R&D expense was $6.0 million in the 2018 first half compared with $4.3 million in the 2016 first half, with the increase, as described above, associated with the accelerated advancement of the Company’s technology.
SG&A for the 2018 first half was $12.6 million, up 2% compared with the prior-year period. The increase primarily occurred in the second quarter noted above.
The net loss was $14.4 million, or $0.89 per share, for the first half of 2018 compared with $13.2 million, or $0.82 per share, in the 2017 first half.
Adjusted EBITDA, a non-GAAP measure, was an $11.2 million loss in the 2018 first half, compared with an $8.6 million loss in last year’s first half. 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 six months ended June 30, 2018 and 2017.
Capitalization – Cash Invested in Inventory Production for Second Half Revenue
Cash, cash equivalents and restricted cash as of June 30, 2018 were $13.0 million, compared with $22.2 million at December 31, 2017. Cash used for operating activities in the 2018 first half was $7.9 million, compared with $6.9 million in the first half of 2017. The 2018 use of cash included an increase of $7.1 million in inventories to support the Company’s higher backlog and anticipated growth in the second half of 2018. Cash capital expenditures were $0.8 million and $0.4 million in the 2018 and 2017 first six months, respectively. In 2018, the Company expects total cash capital expenditures of $1.5 million to $2 million.
Outlook – Reaffirming 2018 Revenue Growth; Net Income, Positive Operating Cash Flow in 2019
Mr. Rockwell concluded, “Our current backlog, order activity thus far into the third quarter and our increasing sales pipeline give us confidence in our expectations for 2018 revenue growth of 20% over 2017. We further believe that our existing capital resources will be sufficient to support our operating plan. We are intently focused on furthering the advancement of our binder jetting technology and achieving net income and positive operating cash flow in 2019.”
Webcast and Conference Call
ExOne will host a conference call and live webcast on Friday, 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 2018 second quarter and first half, 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 Friday, August 17, 2018. To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 13681119, 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,
expectations, or planned results of its global cost realignment
initiative. 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.”
