The ExOne Company Reports Fourth Quarter 2020 Results

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,” “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 severity and duration of world health events, including the recent COVID-19 outbreak and the related economic repercussions and operational challenges; 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 3D printing machines and technology and to develop and introduce new 3D printing machines; 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 customer specific terms in machine sale agreements in determining the period in which the Company recognizes revenue; risks related to global operations including effects of foreign currency and COVID-19; 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 ExOne Adoption Centers; the adequacy of ExOne’s protection of its intellectual property; expectations regarding demand for the Company’s industrial products, and other matters with regard to outlook; and other factors beyond our control, including the impact of COVID-19.

These and other important factors, including those discussed under Item 1A, “Risk Factors” and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” 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 that could cause actual results to differ from these forward-looking statements.

FINANCIAL TABLES FOLLOW.

The ExOne Company

Condensed Statement of Consolidated Operations and Comprehensive Loss (Unaudited)

(in thousands, except per-share amounts)

 
Three Months Ended Year Ended

December 31,

 

December 31,

2020

 

2019

 

2020

 

2019

Revenue

$ 17,372

$ 17,534

$ 59,253

$ 53,276

Cost of sales

13,508

10,768

44,771

35,848

Gross profit

3,864

6,766

14,482

17,428

Operating expenses
Research and development

1,987

2,485

8,845

9,884

Selling, general and administrative

5,477

5,676

20,953

22,592

Gain from sale-leaseback of property and equipment

(1,462)

7,464

8,161

28,336

32,476

Loss from operations

(3,600)

(1,395)

(13,854)

(15,048)

Other expense
Interest expense

68

116

239

343

Other expense - net

312

176

631

111

380

292

870

454

Loss before income taxes

(3,980)

(1,687)

(14,724)

(15,502)

Provision (benefit) for income taxes

279

200

(407)

Net loss

$ (3,980)

$ (1,966)

$ (14,924)

$ (15,095)

Net loss per common share:
Basic

$ (0.21)

$ (0.12)

$ (0.86)

$ (0.93)

Diluted

$ (0.21)

$ (0.12)

$ (0.86)

$ (0.93)

Comprehensive loss:
Net loss

$ (3,980)

$ (1,966)

$ (14,924)

$ (15,095)

Other comprehensive income (loss):
Foreign currency translation adjustments

957

845

1,345

(735)

Comprehensive loss

$ (3,023)

$ (1,121)

$ (13,579)

$ (15,830)

The ExOne Company

Condensed Consolidated Balance Sheet (Unaudited)

(in thousands, except per-share and share amounts)

 

December 31,

2020

 

2019

Assets
Current assets:
Cash and cash equivalents

$ 49,668

$ 5,265

Restricted cash

508

978

Accounts receivable - net

5,225

6,522

Current portion of net investment in sales-type leases - net

229

213

Inventories - net

20,562

19,770

Prepaid expenses and other current assets

4,451

2,182

Total current assets

80,643

34,930

Property and equipment - net

21,300

38,895

Operating lease right-of-use assets

4,043

432

Net investment in sales-type leases - net of current portion - net

509

738

Other noncurrent assets

794

371

Total assets

$ 107,289

$ 75,366

Liabilities
Current liabilities:
Current portion of long-term debt

$ 1,622

$ 153

Current portion of operating lease liabilities

1,958

158

Accounts payable

4,501

5,818

Accrued expenses and other current liabilities

4,978

6,942

Current portion of contract liabilities

13,586

11,846

Total current liabilities

26,645

24,917

Long-term debt - net of current portion

1,783

1,211

Operating lease liabilities - net of current portion

2,085

274

Contract liabilities - net of current portion

159

286

Other noncurrent liabilities

314

96

Total liabilities

30,986

26,784

Contingencies and commitments
Stockholders' equity
Common stock, $0.01 par value, 200,000,000 shares authorized,
20,009,157 (2020) and 16,346,960 (2019) shares issued and outstanding

200

163

Additional paid-in capital

218,113

176,850

Accumulated deficit

(131,872)

(116,948)

Accumulated other comprehensive loss

(10,138)

(11,483)

Total stockholders' equity

76,303

48,582

Total liabilities and stockholders' equity

$ 107,289

$ 75,366

The ExOne Company

Condensed Statement of Consolidated Cash Flows (Unaudited)

(in thousands)

 
Year Ended
December 31,

2020

2019

Operating activities
Net loss

$ (14,924)

$ (15,095)

Adjustments to reconcile net loss to net cash used for operations:
Depreciation

3,775

4,581

Equity-based compensation

1,225

1,416

Amortization of debt issuance costs

49

93

Provision for bad debts - net

23

279

Provision for slow-moving, obsolete and lower of cost or
net realizable value inventories - net

423

292

Foreign exchange losses on intercompany transactions - net

566

63

Gain from sale-leaseback of property and equipment

(1,462)

Loss (gain) from disposal of property and equipment - net

7

(147)

Deferred income taxes

195

(199)

Changes in assets and liabilities, excluding effects of foreign currency
translation adjustments:
Decrease in accounts receivable

1,464

2

Decrease in net investment in sales-type leases

213

269

Increase in inventories

(2,236)

(5,713)

Increase in prepaid expenses and other assets

(2,247)

(632)

(Decrease) increase in accounts payable

(1,679)

1,514

Decrease in accrued expenses and other liabilities

(2)

(1,308)

Increase in contract liabilities

774

9,281

Net cash used for operating activities

(13,836)

(5,304)

Investing activities
Capital expenditures

(1,231)

(666)

Proceeds from sale of property and equipment

16,229

3,186

Net cash provided by investing activities

14,998

2,520

Financing activities
Proceeds from borrowings on long-term debt

2,194

Payments on long-term debt

(158)

(149)

Proceeds from related party revolving credit facility

4,000

Payments on related party revolving credit facility

(4,000)

Proceeds from at-the-market offerings of common stock, net of issuance costs

39,340

Taxes related to the net share settlement of equity-based awards

(28)

(68)

Proceeds from exercise of employee stock options

934

289

Other

(69)

(13)

Net cash provided by financing activities

42,213

59

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

558

(172)

Net change in cash, cash equivalents, and restricted cash

43,933

(2,897)

Cash, cash equivalents, and restricted cash at beginning of period

6,243

9,140

Cash, cash equivalents, and restricted cash at end of period

$ 50,176

$ 6,243

 
Supplemental disclosure of cash flow information
Cash paid for interest

$ 167

$ 222

Cash paid for income taxes

$ 516

$ 199

Supplemental disclosure of noncash investing and financing activities
Transfer of internally developed 3D printing machines from inventories to property and equipment for internal use or leasing activities

$ 3,524

$ 2,572

Transfer of internally developed 3D printing machines from property and equipment to inventories for sale

$ 1,650

$ 1,206

Property and equipment included in accounts payable

$ 65

$ 71

At-the-market offering issuance costs included in accounts payable

$ 171

$ —

The ExOne Company

Adjusted EBITDA Reconciliation (Unaudited)

(in millions)

 

Three Months Ended

 

Year Ended

December 31,

 

December 31,

2020

 

2019

 

2020

 

2019

Net loss

$ (4.0)

$ (2.0)

$ (14.9)

$ (15.1)

Interest expense

0.0

0.1

0.2

0.3

Provision (benefit) for income taxes

0.0

0.3

0.2

(0.4)

Depreciation

0.9

1.1

3.8

4.6

Equity-based compensation

0.4

0.3

1.2

1.4

Gain from sale-leaseback of property and equipment

0.0

0.0

(1.5)

0.0

Other expense - net

0.3

0.2

0.6

0.1

Adjusted EBITDA

$ (2.4)

$ 0.0

$ (10.4)

$ (9.1)


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