SG&A expense of $11.6 million was down $1.0 million, or 8%, compared with the first half of 2018, also benefiting from the 2018 global cost realignment program, partially offset by costs in the second quarter for equity-based compensation and trade show activities in the second quarter.

ExOne realized a $0.7 million tax benefit for the first half of 2019 resulting from the completion of a tax examination.

Net loss for the first half of 2019 was $8.3 million, or $0.51 per share, compared with a $14.4 million net loss, or $0.89 loss per share, in the same period in 2018. The $6.1 million improvement was driven primarily by the increase in revenue and the Company’s new operating model.

Adjusted EBITDA*, a non-GAAP measure, was a $5.3 million loss in the first half of 2019, compared with an $11.2 million loss in the first half of 2018.

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* 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 (the most directly comparable measure under accounting principles generally accepted in the United States (“GAAP”)) to Adjusted EBITDA for the three month, six month and trailing twelve month periods ended June 30, 2019 and 2018. ExOne management believes that, when used in conjunction with other measures prepared in accordance with GAAP, Adjusted EBITDA assists in the understanding of its financial results.

Capitalization – Operating Cash Flow Is Stabilizing

Cash, cash equivalents and restricted cash as of June 30, 2019 were $7.3 million, compared with $9.1 million at December 31, 2018. This includes a use of cash during the 2019 second quarter of less than $0.1 million. There were no borrowings outstanding on the Company’s $15 million credit facility as of June 30, 2019 or December 31, 2018.

Cash used for operating activities during the first half of 2019 was $1.5 million, compared with $7.9 million in the same 2018 period. The $6.4 million decrease was driven by a lower net loss and improved net working capital, reflecting the Company’s new operating model.

Cash capital expenditures were $0.4 million and $0.8 million in the first half of 2019 and 2018, respectively. In 2019, the Company continues to expect cash capital expenditures of $1 million to $2 million.

Maintaining 2019 Goals – Recent Macroeconomic Conditions Present Risk

Mr. Hartner concluded, “Our revenue for the first half of 2019 came in close to 35% of our full year expectations. We are beginning to see pressure on capital equipment spending driven by recent macroeconomic factors. If these conditions continue or worsen, they could affect our ability to reach our goals. However, our order momentum in the second quarter and backlog together with the activity in our pipeline support our 2019 goals for mid-teen revenue growth and positive Adjusted EBITDA*. As variability of our quarterly revenue levels is typical, we currently believe that our third quarter revenue will be modestly higher than our second quarter and we are targeting a strong fourth quarter to close out the year. Importantly, we believe we have sufficient capital to execute our operating plans.”

Webcast and Conference Call

ExOne will host a conference call and live webcast on Wednesday, August 7, 2019 at 4:45 p.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the 2019 second quarter, 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 7:45 p.m. Eastern Time on the day of the teleconference through Wednesday, August 14, 2019. To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 13692267, 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.

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, or expectations. Forward-looking statements typically are identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “goal,” “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.”

The Company cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to risk factors previously disclosed in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K, the following factors, among others, could cause results to differ materially from forward-looking statements or historical performance: the Company’s ability to consistently generate operating profits; fluctuations in the Company’s revenues and operating results; the Company’s competitive environment and its competitive position; ExOne’s ability to enhance its current three-dimensional (“3D”) printing machines and technology and develop new 3D printing machines; delays in customer capital equipment spending due to macroeconomic factors; the Company’s ability to qualify more industrial materials in which it can print; demand for ExOne’s products; the availability of skilled personnel; the impact of loss of key management; the impact of market conditions and other factors on the carrying value of long-lived assets; the Company’s ability to continue as a going concern; the impact of customer specific terms in machine sale agreements on the period in which the Company recognizes revenue; risks related to global operations including effects of foreign currency; the adequacy of sources of liquidity; the amount and sufficiency of funds for required capital expenditures, working capital, and debt service; dependency on certain critical suppliers; nature or impact of alliances and strategic investments; reliance on critical information technology systems; the effect of litigation, contingencies and warranty claims; liabilities under laws and regulations protecting the environment; the impact of governmental laws and regulations; operating hazards, war, terrorism and cancellation or unavailability of insurance coverage; the impact of disruption of the Company’s manufacturing facilities or EACs; the adequacy of ExOne’s protection of its intellectual property; and expectations regarding demand for the Company’s industrial products, operating revenues, operating and maintenance expenses, insurance expenses and deductibles, interest expenses, debt levels, and other matters with regard to outlook.

These and other important factors, including those discussed in the Company’s Annual Report on Form 10-K, may cause the Company’s actual results of operations to differ materially from any future results of operations expressed or implied by the forward-looking statements contained therein. Before making a decision to purchase ExOne common stock, you should carefully consider all of the factors identified in its Annual Report on Form 10-K and other SEC filings that could cause actual results to differ from these forward-looking statements.