R&D expense of $2.4 million for the quarter was down $0.4 million, or 15%, compared with the 2017 third quarter, with the reduction resulting primarily from the global cost realignment initiative, while continuing to invest in the Company’s technology.
SG&A expense of $5.2 million was down $0.9 million, or 14%, compared with the prior-year third quarter, also benefiting from the global cost realignment as well as lower equity-based compensation.
Other (income) expense-net in the 2018 third quarter included a $0.8 million realized gain associated with an insurance recovery for a 3D printing machine damaged while in-transit.
The 2018 third quarter net loss was $0.3 million, or $0.02 per share, compared with a $4.9 million net loss, or $0.30 per share, in the third quarter of 2017. The significantly reduced loss was primarily driven by higher sales and the improved cost base described above.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was $0.4 million in the 2018 third quarter, compared with a $2.2 million loss in last year’s third quarter. ExOne management believes that, when used in conjunction with other measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), Adjusted EBITDA assists in the understanding of its financial results.
* See the attached tables for important disclosures regarding the Company’s use of Adjusted EBITDA as well as a reconciliation of net loss (most directly comparable GAAP measure) to Adjusted EBITDA for the quarters ended September 30, 2018 and 2017.
Year-to-date 2018 Review – Inflection Point in Cost Structure
| ($ in millions, except per-share amounts) | YTD 2018 | YTD 2017 | Change | % Change | ||||||||||||||
| Gross profit | $ | 10.8 | $ | 7.7 | $ | 3.1 | 40 | % | ||||||||||
| Gross margin | 27.4 | % | 20.6 | % | ||||||||||||||
| Operating loss | $ | (15.5 | ) | $ | (17.8 | ) | $ | 2.3 | 13 | % | ||||||||
| Net loss | $ | (14.7 | ) | $ | (18.1 | ) | $ | 3.3 | 18 | % | ||||||||
| Diluted EPS | $ | (0.91 | ) | $ | (1.13 | ) | $ | 0.22 | 19 | % | ||||||||
