Materialise Reports Third Quarter 2022 Results

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About Materialise

Materialise incorporates 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines one of the largest groups of software developers in the industry with one of the largest 3D printing facilities in the world. For additional information, please visit: www.materialise.com.

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, our results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies (including how our business, results of operations and financial condition could be impacted by the current armed conflict in Ukraine and the COVID-19 pandemic and related public health measures, as well as the related actions we are taking in response), and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the company believes there is a reasonable basis for them. However, the company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the company's most recent actual results to differ materially from our expectations, including risk factors described in the company's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. There are a number of risks and uncertainties that could cause the company's actual results to differ materially from the forward-looking statements contained in this press release.

The company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

Consolidated income statements (Unaudited)

 

for the three months ended

September 30,

 

for the nine months ended

September 30,

In '000

2022

 

2022

 

2021(*)

 

2022

 

2021(*)

U.S.$

 

 

 

 

Revenue

56,819

 

58,288

 

52,195

 

169,319

 

148,461

 

Cost of Sales

(25,584

)

(26,245

)

(21,119

)

(76,236

)

(64,378

)

Gross Profit

31,235

 

32,042

 

31,076

 

93,083

 

84,084

 

Gross profit as % of revenue

55.0

%

55.0

%

59.5

%

55.0

%

56.6

%

 
Research and development expenses

(9,078

)

(9,313

)

(6,602

)

(26,074

)

(19,982

)

Sales and marketing expenses

(14,815

)

(15,198

)

(12,413

)

(44,841

)

(35,730

)

General and administrative expenses

(8,754

)

(8,980

)

(7,885

)

(26,089

)

(23,449

)

Net other operating income (expenses)

1,137

 

1,166

 

355

 

2,603

 

2,318

 

Operating (loss) profit

(275

)

(282

)

4,529

 

(1,318

)

7,239

 

 
Financial expenses

(2,057

)

(2,110

)

2,334

 

(4,671

)

(3,182

)

Financial income

4,175

 

4,283

 

1,869

 

9,800

 

4,426

 

Share in loss of joint venture

-

 

-

 

-

 

-

 

-

 

(Loss) profit before taxes

1,843

 

1,891

 

8,732

 

3,812

 

8,483

 

 
Income Taxes (*)

(466

)

(478

)

(75

)

(1,377

)

(101

)

Net (loss) profit for the period (*)

1,377

 

1,413

 

8,657

 

2,435

 

8,382

 

Net (loss) profit attributable to:

-

 

The owners of the parent

1,385

 

1,421

 

8,660

 

2,457

 

8,386

 

Non-controlling interest

(8

)

(8

)

(3

)

(21

)

(4

)

 
Earning per share attributable to owners of the parent
Basic (*)

0.02

 

0.02

 

0.15

 

0.04

 

0.15

 

Diluted (*)

0.02

 

0.02

 

0.15

 

0.04

 

0.15

 

 
Weighted average basic shares outstanding

59,064

 

59,064

 

58,731

 

59,064

 

55,935

 

Weighted average diluted shares outstanding

59,089

 

59,089

 

58,944

 

59,099

 

56,206

 

(*) The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the nine months ended September 30 income taxes and net profit is (46)k€.
The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the three months ended September 30 income taxes and net profit is 5 k€.

Consolidated statements of comprehensive income (Unaudited)

for the three months ended

September 30,

 

for the nine months ended

September 30,

In 000€

2022

 

2022

 

2021(*)

 

2022

 

2021(*)

U.S.$

 

 

 

 

Net profit (loss) for the period (*)

1,377

 

1,413

 

8,657

 

2,435

 

8,382

 

Other comprehensive income
Recycling
Exchange difference on translation of foreign operations

219

 

225

 

(385

)

1,291

 

1,590

 

Non-recycling
Fair value adjustments through OCI - Equity instruments

-

 

-

 

-

 

(0

)

48

 

Other comprehensive income (loss), net of taxes

219

 

225

 

(385

)

1,291

 

1,638

 

Total comprehensive income (loss) for the year, net of taxes

1,596

 

1,638

 

8,272

 

3,726

 

10,020

 

Total comprehensive income (loss) attributable to:
The owners of the parent

1,604

 

1,646

 

8,275

 

3,748

 

10,023

 

Non-controlling interests

(8

)

(8

)

(3

)

(21

)

(3

)

(*) The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the nine months ended September 30 income taxes and net profit is (46)k€.
The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the three months ended September 30 income taxes and net profit is 5 k€.

Consolidated statement of financial position (Unaudited)

 

As of

September 30,

 

As of

December 31,

In 000€

2022

 

2021

Assets
Non-current assets
Goodwill

50,190

18,726

Intangible assets

38,710

31,668

Property, plant & equipment

92,335

84,451

Right-of-Use assets

8,520

9,054

Investments in joint ventures

-

-

Deferred tax assets

217

227

Investments in convertible loans

3,431

3,560

Investments in non-listed equity instruments

399

399

Other non-current assets

4,948

7,520

Total non-current assets

198,750

155,605

Current assets
Inventories

15,532

11,295

Trade receivables

42,329

41,541

Other current assets

8,374

8,940

Cash and cash equivalents

150,621

196,028

Total current assets

216,856

257,803

Total assets

415,606

413,408

As of

September 30,

 

As of

December 31,

In 000€

2022

 

2021

Equity and liabilities
Equity
Share capital

4,487

 

4,489

 

Share premium

233,869

 

233,872

 

Retained earnings and other reserves

(1,797

)

(5,784

)

Equity attributable to the owners of the parent

236,559

 

232,577

 

Non-controlling interest

(21

)

1

 

Total equity

236,538

 

232,578

 

Non-current liabilities
Loans & borrowings

58,126

 

72,637

 

Lease liabilities

5,004

 

5,268

 

Deferred tax liabilities

4,239

 

4,371

 

Deferred income

6,932

 

4,952

 

Other non-current liabilities

1,027

 

2,168

 

Total non-current liabilities

75,328

 

89,396

 

Current liabilities
Loans & borrowings

17,593

 

17,849

 

Lease liabilities

3,202

 

3,353

 

Trade payables

25,038

 

20,171

 

Tax payables

1,128

 

783

 

Deferred income

36,112

 

33,306

 

Other current liabilities

20,667

 

15,972

 

Total current liabilities

103,740

 

91,434

 

Total equity and liabilities

415,606

 

413,408

 

Consolidated statement of cash flows (Unaudited)

 

for the nine months ended

September 30,

In 000€

2022

 

2021*

Operating activities
Net (loss) profit for the period (*)

2,435

 

8,382

 

Non-cash and operational adjustments
Depreciation of property plant & equipment

11,335

 

11,460

 

Amortization of intangible assets

4,859

 

3,780

 

Impairment of goodwill and intangible assets

-

 

-

 

Share-based payment expense

(121

)

(878

)

Loss (gain) on disposal of property, plant & equipment

59

 

43

 

Movement in provisions

(506

)

7

 

Movement reserve for bad debt and slow moving inventory

(42

)

154

 

Financial income

(9,771

)

(4,426

)

Financial expense

5,009

 

3,182

 

Impact of foreign currencies

98

 

107

 

Share in loss (gain) of a joint venture (equity method)

-

 

-

 

(Deferred) income taxes (*)

1,384

 

101

 

Other non-current liabilities

-

 

-

 

Working capital adjustments

9,109

 

(4,531

)

Decrease (increase) in trade receivables and other receivables

(184

)

(7,553

)

Decrease (increase) in inventories and contracts in progress

(4,356

)

(1,770

)

Increase (decrease) in deferred revenue

3,815

 

(56

)

Increase (decrease) in trade payables and other payables

9,834

 

4,848

 

Income tax paid & Interest received

(262

)

108

 

Net cash flow from operating activities

23,587

 

17,490

 

(*) The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on Net profit for the period and on (Deferred) income taxes is (46) k€.

for the nine months ended

September 30,

In 000€

2022

 

2021

Investing activities
Purchase of property, plant & equipment

(16,066

)

(4,827

)

Purchase of intangible assets

(3,422

)

(2,439

)

Proceeds from the sale of property, plant & equipment & intangible assets (net)

319

 

295

 

Acquisition of subsidiary (net of cash)

(29,355

)

-

 

(Convertible) Loans granted

-

 

1,239

 

Investment in subsidiary, net of cash acquired

-

 

(1,680

)

Net cash flow used in investing activities

(48,523

)

(7,412

)

Financing activities
Repayment of loans & borrowings

(15,182

)

(11,169

)

Repayment of leases

(2,566

)

(2,841

)

Capital increase

-

 

85,787

 

Interest paid

(1,665

)

(1,652

)

Other financial income (expense)

1,378

 

2,740

 

Net cash flow from (used in) financing activities

(18,035

)

72,865

 

Net increase/(decrease) of cash & cash equivalents

(42,972

)

82,943

 

Cash & Cash equivalents at the beginning of the year

196,028

 

111,538

 

Exchange rate differences on cash & cash equivalents

(2,433

)

465

 

Cash & cash equivalents at end of the period

150,621

 

194,946

 

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

for the three months ended

September 30,

 

for the nine months ended

September 30,

In 000€

2022

 

2021 (*)

 

2022

 

2021 (*)

Net profit (loss) for the period (*)

1,413

 

8,657

 

2,435

 

8,382

 

Income taxes (*)

478

 

75

 

1,377

 

101

 

Financial expenses

2,110

 

(2,334

)

4,671

 

3,182

 

Financial income

(4,283

)

(1,869

)

(9,800

)

(4,426

)

Depreciation and amortization

5,378

 

5,314

 

16,194

 

15,240

 

Share in loss of joint venture

-

 

-

 

-

 

-

 

EBITDA

5,096

 

9,843

 

14,876

 

22,480

 

Share-based compensation expense (1)

(24

)

(104

)

(121

)

(878

)

Acquisition-related expenses of business combinations (2)

-

 

-

 

-

 

405

 

Adjusted EBITDA

5,072

 

9,739

 

14,755

 

22,007

 

(1)

Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.

(2)

Acquisition-related expenses of business combinations represents expenses incurred in connection with the acquisition of our option to buy Link3D.

(*)

The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the nine months ended September 30 income taxes and net profit is (46)k€.
The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the three months ended September 30 income taxes and net profit is 5 k€.

Segment P&L (Unaudited)

 
In 000€

Materialise

Software

Materialise

Medical

Materialise

Manufacturing

Total

segments

Unallocated (1) Consolidated
For the three months ended September 30, 2022
Revenues

10,863

 

21,391

 

26,033

 

58,288

 

0

 

58,288

 

Segment (adj) EBITDA

202

 

4,765

 

2,530

 

7,497

 

(2,425

)

5,072

 

Segment (adj) EBITDA %

1.9

%

22.3

%

9.7

%

12.9

%

8.7

%

For the three months ended September 30, 2021
Revenues

10,468

 

18,910

 

22,817

 

52,196

 

(0

)

52,195

 

Segment (adj) EBITDA

3,708

 

5,251

 

3,546

 

12,506

 

(2,767

)

9,739

 

Segment (adj) EBITDA %

35.4

%

27.8

%

15.5

%

24.0

%

18.7

%

 
In 000€

Materialise

Software

Materialise

Medical

Materialise

Manufacturing

Total

segments

Unallocated (1) Consolidated
For the nine months ended September 30, 2022
Revenues

31,989

 

60,592

 

76,739

 

169,319

 

0

 

169,319

 

Segment (adj) EBITDA

2,955

 

12,466

 

6,722

 

22,144

 

(7,388

)

14,755

 

Segment (adj) EBITDA %

9.2

%

20.6

%

8.8

%

13.1

%

8.7

%

For the nine months ended September 30, 2021
Revenues

30,719

 

52,686

 

65,199

 

148,604

 

(142

)

148,461

 

Segment (adj) EBITDA

10,266

 

14,313

 

5,252

 

29,831

 

(7,826

)

22,004

 

Segment (adj) EBITDA %

33.4

%

27.2

%

8.1

%

20.1

%

14.8

%

 
(1) Unallocated segment adjusted EBITDA consists of corporate research and development and corporate other operating income (expense), and the added share-based compensation expenses, acquisition related expenses of business combinations, impairments and fair value of business combinations that are included in Adjusted EBITDA.

Reconciliation of Net Profit (Loss) to Segment adjusted EBITDA (Unaudited)

 

for the three months ended

September 30,

 

for the nine months ended

September 30,

In 000€

2022

 

2021 (*)

 

2022

 

2021 (*)

Net profit (loss) for the period (*)

1,413

 

8,657

 

2,435

 

8,382

 

Income taxes (*)

478

 

75

 

1,377

 

101

 

Financial cost

2,110

 

(2,334

)

4,671

 

3,182

 

Financial income

(4,283

)

(1,869

)

(9,800

)

(4,426

)

Share in loss of joint venture

-

 

-

 

-

 

-

 

 
Operating (loss) profit

(282

)

4,529

 

(1,318

)

7,239

 

 
Depreciation and amortization

5,378

 

5,314

 

16,194

 

15,240

 

Corporate research and development

592

 

710

 

2,057

 

2,191

 

Corporate headquarter costs

2,491

 

2,463

 

7,103

 

6,907

 

Other operating income (expense)

(681

)

(511

)

(1,892

)

(1,745

)

 
Segment adjusted EBITDA

7,497

 

12,506

 

22,144

 

29,831

 

(*) The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the nine months ended September 30 income taxes and net profit is (46)k€.
The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the three months ended September 30 income taxes and net profit is 5 k€.

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