R&D expense of $2.4 million for the quarter was down $0.4 million, or 13%, compared with the 2018 first quarter, primarily from efficiencies gained from the 2018 global cost realignment initiative and improved resource allocation to maintain strong progress in advancing the Company’s technology.
SG&A expense of $5.4 million was down $0.8 million, or 13%, compared with the 2018 first quarter, also benefiting from the 2018 global cost realignment initiative.
ExOne realized a $0.8 million tax benefit for the quarter resulting from the completion of a tax examination.
Net loss for the quarter was $4.5 million, or $0.28 per share, compared with a $6.4 million net loss, or $0.40 loss per share, in the first quarter of 2018. The $1.9 million improvement was driven primarily by the Company’s new cost model.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was a $3.6 million loss in the 2019 first quarter, compared with a $4.5 million loss in last year’s first 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 table captioned “Adjusted EBITDA Reconciliation” 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 March 31, 2019 and 2018.
Capitalization – Operating Cash Flow Improves
Cash, cash equivalents and restricted cash as of March 31, 2019 were $7.3 million, compared with $9.1 million at December 31, 2018. There were no borrowings outstanding on the Company’s $15 million credit facility as of March 31, 2019 or December 31, 2018.
Cash used for operating activities during the first quarter of 2019 was $1.4 million, compared with $4.8 million in the first quarter of 2018. The $3.4 million decrease was driven by a lower net loss and improved working capital.
Cash capital expenditures were $0.4 million and $0.5 million in 2019 and 2018 first quarters, respectively. In 2019, the Company expects cash capital expenditures of $1 million to $2 million.
Reconfirming 2019 Goals – Revenue Growth Rate in Mid-Teens, Positive Adjusted EBITDA
Mr. Rockwell concluded, “Our visibility into order activity and our improved operating model give us confidence in reconfirming our previously stated 2019 goals for mid-teen revenue growth and positive Adjusted EBITDA. In addition, as we have previously discussed, we are targeting revenue growth at increasing rates over each of the next several years. Importantly, we believe we have sufficient capital to execute our plans. We will continue to invest in innovative new opportunities in a cost efficient manner, advancing our market-leading position in binder jetting technology.”
The Company expects 2019 revenue to be distributed approximately 35% in the first half of the year and 65% in the second half.
Webcast and Conference Call
ExOne will host a conference call and live webcast on Thursday, May 9, 2019 at 8:30 a.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the 2019 first quarter, along with ExOne’s corporate strategies and outlook. A question-and-answer session will follow. The teleconference can be accessed by calling (631) 891-4304. 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. Eastern Time on the day of the teleconference through Thursday, May 16, 2019. To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 10006586, 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”). 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.
