[March 03, 2014] |
|
Stratasys Reports Record Fourth Quarter and Fiscal Year 2013 Financial Results
MINNEAPOLIS & REHOVOT, Israel --(Business Wire)--
Stratasys Ltd. (NASDAQ:SSYS) today announced record financial results
for the fourth quarter and fiscal year 2013.
Driven by the realization of Stratasys-Objet merger synergies and the
rapidly expanding market for 3D printing and additive manufacturing
solutions, the company observed strong demand across all product lines
during the fourth quarter.
Hardware and consumable revenue in the fourth quarter, excluding the
revenue contribution made by MakerBot, grew by 38% and 33%,
respectively, over the pro forma results for the same quarter last year.
Total non-GAAP revenue (excluding MakerBot's contribution) increased by
36% for the fourth quarter over last year's pro forma revenue.
MakerBot made a significant contribution of $24.9 million to fourth
quarter revenue, as its highly affordable and functional desktop 3D
printers continued strong positive sales momentum within the rapidly
growing desktop category.
The company generated record non-GAAP profits in the fourth quarter, as
strong sales of higher margin products contributed to a non-GAAP gross
margin of 60.2% for the period compared to 57.8% for the pro forma
period last year; and non-GAAP operating margin grew to 20.2% compared
to 19.1% on a pro forma basis for the same period last year.
Q4-2013 Financial Results Summary:
-
GAAP revenue for the fourth quarter of 2013 was $155.1 million.
Non-GAAP revenue of $155.8 million for the fourth quarter of 2013
represents a 61.6% increase over the $96.4 million combined non-GAAP
pro forma revenue (giving effect to the Stratasys-Objet merger as
though it had closed on January 1, 2012) for the same period last year.
-
GAAP net loss for the fourth quarter was $2.0 million, or ($0.04) per
basic share, compared to a pro forma loss of $3.5 million, or ($0.09)
per basic share, for the same period last year.
-
Non-GAAP net income was $25.8 million for the fourth quarter, or $0.50
per diluted share, compared to pro forma non-GAAP net income of $16.3
million, or $0.40 per diluted share, reported for the same period last
year.
-
Fourth quarter per share calculations were impacted by the public
issuance of approximately 5.2 million new ordinary shares in September
which raised approximately $463 million; and the approximately 3.9
million new ordinary shares issued in consideration for the
acquisition of MakerBot.
-
The company invested a net amount of $15.5 million in R&D projects
(non-GAAP basis) during the fourth quarter, representing 9.9% of net
sales.
-
The company generated $15.6 million in cash from operations during the
fourth quarter, and finished the year with $616.1 million in cash,
investments and bank deposits, amounting to $12.50 per share.
-
EBITDA for the fourth quarter amounted to $36.0 million.
-
Backlog at the end of 2013 amounted to $28.0 million, versus $28.6
million at the end of 2012.
-
The company sold 10,963 3D printing and additive manufacturing systems
during the quarter, and on a combined pro forma basis, a cumulative
75,818 systems worldwide as of December 31, 2013.
"Our fourth quarter results reflect the ongoing realization of revenue
synergies from the Stratasys-Objet merger, as well as the rapidly
growing demand for additive manufacturing and 3D printing solutions we
are observing worldwide," said David Reis, chief executive officer of
Stratasys. "We experienced strong organic growth driven by demand across
multiple product lines, as well as an impressive contribution from
MakerBot. In addition, a favorable product mix benefited margins, and
helped contribute to our record profits. We are very pleased with our
fourth quarter and overall annual results."
Business Highlights:
-
Introduced the Objet500 Connex3 Color Multi-material 3D Printer, as
well as multiple new desktop 3D printers, including the MakerBot
Replicator, MakerBot Replicator Z18, and MakerBot Replicator Mini.
-
Expanded premium material offerings to address a wider range of
applications with the introduction of Digital ABS2, Nylon 12,
VeroCyan, VeroMagenta, and VeroYellow.
-
Further developed the MakerBot 3D Ecosystem with the introduction of
the MakerBot Digital Store, MakerBot Desktop software, and the
MakerBot Mobile and MakerBot Printshop applications.
-
Continued to invest aggressively in global sales, marketing and
channel infrastructure, including the establishment of Stratasys Korea
and Stratasys Singapore to enhance the presence in the Asia Pacific
region.
-
Entered multiple strategic partnerships, including a distribution
agreement with Dell to provide MakerBot Replicator 3D Printers bundled
with Dell Precision Workstations for small and medium-sized businesses.
-
Continued to target unique verticals such as education, with the
launch of MakerBot Academy, a program aimed to provide MakerBot
Replicator 3D Printers to U.S. public schools.
-
Completed the sales, marketing and service team integration
initiatives that resulted from the Stratasys-Objet merger, and began
processes to better align the functions of R&D and operations.
"We believe Stratasys is well positioned within our rapidly growing
industry as we begin 2014," continued Reis. "We have positive momentum,
driven by the ongoing demand for our industry-leading products and
services. We are pleased with our many recent new product introductions
and channel initiatives, which we believe will greatly improve 3D
printing accessibility and drive expanded usage for our products. And
finally, we are excited about our many internal projects that we believe
will further our objective of market leadership and long-term growth, as
we continue to evaluate additional acquisition opportunities to
accelerate our growth."
Financial Guidance:
Stratasys reiterated the following information regarding the company's
projected revenue and net income for the fiscal year ending December 31,
2014:
-
Revenue guidance of $660 to $680 million.
-
Non-GAAP net income of $113 to $119 million, or $2.15 to $2.25 per
diluted share.
-
GAAP net income of $10.5 to $19.9 million, or a $0.20 to $0.38 per
diluted share.
-
The company expects organic sales, excluding MakerBot sales, to grow
at least 25% over 2013, with additional growth coming from MakerBot,
which is expected to grow at a higher rate.
Stratasys provided the following additional information regarding the
company's performance and strategic plans for 2014:
-
Operating expenses are projected to expand materially in 2014 driven
by investments in sales and marketing programs to drive future market
adoption, as well as by increased R&D investments to fund technology
innovation and new product development.
-
Incremental sales and marketing investments will focus on expanding
sales channels, enhancing regional infrastructure, as well as building
unique go-to-market programs targeting certain market verticals and
customer applications.
-
Non-GAAP operating margins in 2014 are projected to remain relatively
consistent with levels recognized in 2013, as margin expansion in the
company's core business is offset by a full-year contribution from
MakerBot, which maintains lower operating margins.
-
Projected Non-GAAP net income is expected to be derived
disproportionately from the second half of fiscal 2014, driven by the
projected timing of operating expenses, as well as the projected
timing and success of new product introductions and their
corresponding ramp in sales.
-
Capital expenditures are projected at $50 to $70 million, which
includes significant investments in manufacturing capacity in
anticipation and support of future growth.
Non-GAAP earnings guidance excludes $64.8 million of projected
amortization of intangible assets; $25.1 million to $28.2 million of
share-based compensation expense; and $8.8 million to $9.8 million in
non-recurring expenses related to acquisitions.
Appropriate reconciliations between GAAP and non-GAAP financial measures
are provided in a table at the end of this press release. The table
provides itemized detail of the non-GAAP financial measures.
Stratasys Ltd. Q4-2013 Conference Call Details
Stratasys will hold a conference call to discuss its fourth quarter and
2013 annual financial results on Monday, March 3, 2014 at 8:30 a.m. (ET).
The investor conference call will be available via live webcast on the
Stratasys Web site at www.stratasys.com
under the "Investors" tab; or directly at the following web address: http://www.media-server.com/m/p/p4rrw67g.
To participate by telephone, the domestic dial-in number is 866-318-8617
and the international dial-in is 617-399-5136. The access code is
37260413. Investors are advised to dial into the call at least ten
minutes prior to the call to register.
The webcast will be available for 90 days on the "Investors" page of the
Stratasys web site or by accessing the provided web address.
(Financial tables follow)
Cautionary Statement Regarding Forward-Looking Statements
Certain information included or incorporated by reference in this press
may be deemed to be "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements are often characterized by the use
of forward-looking terminology such as "may," "will," "expect,"
"anticipate," "estimate," "continue," "believe," "should," "intend,"
"project" or other similar words, but are not the only way these
statements are identified. These forward-looking statements may include,
but are not limited to, statements relating to the company's objectives,
plans and strategies, statements that contain projections of results of
operations or of financial condition (including, with respect to the
MakerBot acquisition) and all statements (other than statements of
historical facts) that address activities, events or developments that
the company intends, expects, projects, believes or anticipates will or
may occur in the future. Forward-looking statements are not guarantees
of future performance and are subject to risks and uncertainties. The
company has based these forward-looking statements on assumptions and
assessments made by its management in light of their experience and
their perception of historical trends, current conditions, expected
future developments and other factors they believe to be appropriate.
Important factors that could cause actual results, developments and
business decisions to differ materially from those anticipated in these
forward-looking statements include, among other things: the company's
ability to efficiently and successfully integrate the operations of
Stratasys, Inc. and Objet Ltd. after their merger as well as MakerBot
after its acquisition and to successfully put in place and execute an
effective post-merger integration plans; the overall global economic
environment; the impact of competition and new technologies; general
market, political and economic conditions in the countries in which the
company operates; projected capital expenditures and liquidity; changes
in the company's strategy; government regulations and approvals; changes
in customers' budgeting priorities; litigation and regulatory
proceedings; and those factors referred to under "Risk Factors",
"Information on the Company", "Operating and Financial Review and
Prospects", and generally in the company's annual report on Form 20-F
for the year ended December 31, 2013 filed with the U.S. Securities and
Exchange Commission and in other reports that the company has filed with
the SEC. Readers are urged to carefully review and consider the various
disclosures made in the company's SEC reports, which are designed to
advise interested parties of the risks and factors that may affect its
business, financial condition, results of operations and prospects. Any
forward-looking statements in this press release are made as of the date
hereof, and the company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
The information discussed within this release includes financial results
and projections that are in accordance with accounting principles
generally accepted in the United States (GAAP). In addition, certain
non-GAAP financial measures have been provided excluding certain
charges, expenses and income. The non-GAAP measures should be read in
conjunction with the corresponding GAAP measures and should be
considered in addition to, and not as an alternative or substitute for,
the measures prepared in accordance with GAAP. The non-GAAP financial
measures are provided in an effort to provide information that investors
may deem relevant to evaluate results from the company's core business
operations and to compare the company's performance with prior periods.
The non-GAAP financial measures primarily identify and exclude certain
discrete items, such as merger-related expenses, amortization expenses
and expenses associated with share-based compensation required under ASC
718. The company uses these non-GAAP financial measures for evaluating
comparable financial performance against prior periods.
This release is available on the Stratasys web site at www.stratasys.com.
Stratasys Ltd. (Nasdaq:SSYS), headquartered in Minneapolis, Minn.
and Rehovot, Israel, manufactures 3D printers and materials for
prototyping and production. The company's patented FDM® and PolyJetTM 3D
Printing technologies produce prototypes and manufactured goods directly
from 3D CAD files or other 3D content. Systems include 3D printers for
idea development, prototyping and direct digital manufacturing.
Stratasys subsidiaries include MakerBot and Solidscape, and the company
operates the RedEye digital-manufacturing service. Stratasys has more
than 1800 employees, holds over 550 granted or pending additive
manufacturing patents globally, and has received more than 20 awards for
its technology and leadership. Online at: www.stratasys.com
or http://blog.stratasys.com.
|
Stratasys Ltd.
|
|
Consolidated Statements of Operations
|
|
(in thousands, except per share data)
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
134,943
|
|
|
$
|
59,461
|
|
|
$
|
414,853
|
|
|
$
|
179,762
|
Services
|
|
|
20,142
|
|
|
|
11,690
|
|
|
|
69,550
|
|
|
|
35,482
|
|
|
|
155,085
|
|
|
|
71,151
|
|
|
|
484,403
|
|
|
|
215,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
65,088
|
|
|
|
32,138
|
|
|
|
213,427
|
|
|
|
86,742
|
Services
|
|
|
12,195
|
|
|
|
6,175
|
|
|
|
44,803
|
|
|
|
18,591
|
|
|
|
77,283
|
|
|
|
38,313
|
|
|
|
258,230
|
|
|
|
105,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
77,802
|
|
|
|
32,838
|
|
|
|
226,173
|
|
|
|
109,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
17,669
|
|
|
|
7,083
|
|
|
|
52,310
|
|
|
|
19,659
|
Selling, general and administrative
|
|
|
64,462
|
|
|
|
30,764
|
|
|
|
202,040
|
|
|
|
73,130
|
Change in fair value of earn-out obligations
|
|
|
(853
|
)
|
|
|
-
|
|
|
|
754
|
|
|
|
-
|
|
|
|
81,278
|
|
|
|
37,847
|
|
|
|
255,104
|
|
|
|
92,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(3,476
|
)
|
|
|
(5,009
|
)
|
|
|
(28,931
|
)
|
|
|
17,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
(650
|
)
|
|
|
871
|
|
|
|
(450
|
)
|
|
|
1,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(4,126
|
)
|
|
|
(4,138
|
)
|
|
|
(29,381
|
)
|
|
|
18,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
(2,137
|
)
|
|
|
(239
|
)
|
|
|
(2,474
|
)
|
|
|
9,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(1,989
|
)
|
|
$
|
(3,899
|
)
|
|
$
|
(26,907
|
)
|
|
$
|
8,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to non-controlling interest
|
|
$
|
-
|
|
|
$
|
332
|
|
|
$
|
47
|
|
|
$
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
$
|
(1,989
|
)
|
|
$
|
(4,231
|
)
|
|
$
|
(26,954
|
)
|
|
$
|
8,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.04
|
)
|
|
$
|
(0.16
|
)
|
|
$
|
(0.64
|
)
|
|
$
|
0.37
|
Diluted
|
|
|
(0.07
|
)
|
|
|
(0.16
|
)
|
|
|
(0.68
|
)
|
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
48,955
|
|
|
|
27,261
|
|
|
|
42,079
|
|
|
|
22,812
|
Diluted
|
|
|
49,036
|
|
|
|
27,261
|
|
|
|
42,099
|
|
|
|
23,776
|
|
|
Stratasys Ltd.
|
|
Consolidated Balance Sheets
|
|
(in thousands)
|
|
|
December 31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
414,088
|
|
$
|
133,826
|
|
Short-term bank deposits
|
|
|
200,370
|
|
|
20,063
|
|
Accounts receivable less allowance for doubtful accounts of $1,804
at December 31, 2013 and $654 at December 31, 2012
|
|
|
99,200
|
|
|
64,678
|
|
Inventories
|
|
|
88,406
|
|
|
67,995
|
|
Net investment in sales-type leases, net for doubtful accounts of
$183 at December 31, 2013 and $301 at December 31, 2012
|
|
|
6,696
|
|
|
5,134
|
|
Prepaid expenses
|
|
|
5,470
|
|
|
2,751
|
|
Deferred income taxes
|
|
|
16,501
|
|
|
4,968
|
|
Other current assets
|
|
|
21,398
|
|
|
23,863
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
852,129
|
|
|
323,278
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
Goodwill
|
|
|
1,195,891
|
|
|
822,475
|
|
Other intangible assets, net
|
|
|
622,330
|
|
|
510,372
|
|
Net investment in sales-type leases
|
|
|
11,219
|
|
|
7,872
|
|
Amounts funded in respect of employees rights upon retirement
|
|
|
3,166
|
|
|
2,628
|
|
Property, plant and equipment, net
|
|
|
91,005
|
|
|
62,070
|
|
Other non-current assets
|
|
|
6,481
|
|
|
2,818
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
1,930,092
|
|
|
1,408,235
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
2,782,221
|
|
$
|
1,731,513
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
35,375
|
|
$
|
35,235
|
|
Accrued expenses and other current liabilities
|
|
|
32,849
|
|
|
22,197
|
|
Accrued compensation and related benefits
|
|
|
21,441
|
|
|
16,849
|
|
Earn-out obligation
|
|
|
12,027
|
|
|
-
|
|
Unearned revenues
|
|
|
36,033
|
|
|
18,068
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
137,725
|
|
|
92,349
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
Employee rights upon retirement
|
|
|
4,683
|
|
|
4,188
|
|
Earn-out obligation - long-term
|
|
|
16,998
|
|
|
-
|
|
Deferred tax liabilities
|
|
|
105,901
|
|
|
54,693
|
|
Unearned revenues - long-term
|
|
|
3,315
|
|
|
3,181
|
|
Other non-current liabilities
|
|
|
13,812
|
|
|
4,946
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
282,434
|
|
|
159,357
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Ordinary shares, NIS 0.01 nominal value, authorized 180,000
shares; 49,211 and 38,372 shares issued and outstanding at
December 31, 2013 and 2012, respectively
|
|
|
133
|
|
|
101
|
|
Additional paid-in capital
|
|
|
2,412,197
|
|
|
1,459,294
|
|
Retained earnings
|
|
|
85,549
|
|
|
112,503
|
|
Accumulated other comprehensive income (loss)
|
|
|
1,908
|
|
|
(238
|
)
|
|
|
|
|
|
|
|
|
|
Equity attributable to Stratasys Ltd.
|
|
|
2,499,787
|
|
|
1,571,660
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
|
-
|
|
|
496
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
2,499,787
|
|
|
1,572,156
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
2,782,221
|
|
$
|
1,731,513
|
|
|
|
Stratasys Ltd.
|
|
Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of
Operations
|
|
(in thousands, except per share data)
|
|
|
|
|
Three Months Ended December 31, 2013
|
|
Three Months Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
|
|
|
|
|
|
Pro Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Including Objet
|
|
|
|
|
|
Including Objet
|
|
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
(unaudited)
|
|
Adjustments*
|
|
(unaudited)
|
|
(unaudited)
|
|
Adjustments*
|
|
(unaudited)
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
134,943
|
|
|
$
|
668
|
|
|
$
|
135,611
|
|
|
$
|
81,651
|
|
|
$
|
-
|
|
|
$
|
81,651
|
Services
|
|
|
20,142
|
|
|
|
-
|
|
|
|
20,142
|
|
|
|
14,711
|
|
|
|
-
|
|
|
|
14,711
|
|
|
|
|
155,085
|
|
|
|
668
|
|
|
|
155,753
|
|
|
|
96,362
|
|
|
|
-
|
|
|
|
96,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
65,088
|
|
|
|
(14,765
|
)
|
|
|
50,323
|
|
|
|
41,641
|
|
|
|
(10,936
|
)
|
|
|
30,705
|
Services
|
|
|
12,195
|
|
|
|
(495
|
)
|
|
|
11,700
|
|
|
|
10,329
|
|
|
|
(397
|
)
|
|
|
9,932
|
|
|
|
|
77,283
|
|
|
|
(15,260
|
)
|
|
|
62,023
|
|
|
|
51,970
|
|
|
|
(11,333
|
)
|
|
|
40,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
77,802
|
|
|
|
15,928
|
|
|
|
93,730
|
|
|
|
44,392
|
|
|
|
11,333
|
|
|
|
55,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
17,669
|
|
|
|
(2,207
|
)
|
|
|
15,462
|
|
|
|
10,210
|
|
|
|
(988
|
)
|
|
|
9,222
|
Selling, general and administrative
|
|
|
64,462
|
|
|
|
(17,633
|
)
|
|
|
46,829
|
|
|
|
38,200
|
|
|
|
(10,059
|
)
|
|
|
28,141
|
Change in fair value of earn-out obligations
|
|
|
(853
|
)
|
|
|
853
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
81,278
|
|
|
|
(18,987
|
)
|
|
|
62,291
|
|
|
|
48,410
|
|
|
|
(11,047
|
)
|
|
|
37,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(3,476
|
)
|
|
|
34,915
|
|
|
|
31,439
|
|
|
|
(4,018
|
)
|
|
|
22,380
|
|
|
|
18,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
(650
|
)
|
|
|
-
|
|
|
|
(650
|
)
|
|
|
1,408
|
|
|
|
-
|
|
|
|
1,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(4,126
|
)
|
|
|
34,915
|
|
|
|
30,789
|
|
|
|
(2,610
|
)
|
|
|
22,380
|
|
|
|
19,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
(2,137
|
)
|
|
|
7,133
|
|
|
|
4,996
|
|
|
|
747
|
|
|
|
2,606
|
|
|
|
3,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(1,989
|
)
|
|
$
|
27,782
|
|
|
$
|
25,793
|
|
|
$
|
(3,357
|
)
|
|
$
|
19,774
|
|
|
$
|
16,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
158
|
|
|
$
|
-
|
|
|
$
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
$
|
(1,989
|
)
|
|
$
|
27,782
|
|
|
$
|
25,793
|
|
|
$
|
(3,515
|
)
|
|
$
|
19,774
|
|
|
$
|
16,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
$
|
0.53
|
|
|
$
|
(0.09
|
)
|
|
|
|
|
|
$
|
0.43
|
Diluted
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
0.50
|
|
|
|
(0.09
|
)
|
|
|
|
|
|
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
48,955
|
|
|
|
|
|
|
|
48,964
|
|
|
|
37,557
|
|
|
|
|
|
|
|
37,557
|
Diluted
|
|
|
49,036
|
|
|
|
|
|
|
|
51,429
|
|
|
|
37,557
|
|
|
|
|
|
|
|
40,327
|
|
|
|
The Company considers these non-GAAP measures to be indicative of
its core operating results and facilitates a comparison of
operating results across reporting periods. The Company uses these
non-GAAP measures when evaluating its financial results as well as
for internal planning and forecasting purposes, however these
measures should not be viewed as a substitute for the Company's
GAAP results.
|
|
* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for
further information regarding adjustments.
|
|
|
Stratasys Ltd.
|
|
Reconciliation of Pro Forma GAAP to Pro Forma Non-GAAP Results of
Operations
|
|
(in thousands, except per share data)
|
|
|
|
|
Twelve Months Ended December 31, 2013
|
|
Twelve Months Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
|
|
|
|
|
|
Pro Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Including Objet
|
|
|
|
|
|
Including Objet
|
|
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
GAAP
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
Adjustments*
|
|
(unaudited)
|
|
(unaudited)
|
|
Adjustments*
|
|
(unaudited)
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
414,853
|
|
|
$
|
2,316
|
|
|
$
|
417,169
|
|
|
$
|
306,043
|
|
|
$
|
-
|
|
|
$
|
306,043
|
Services
|
|
|
69,550
|
|
|
|
-
|
|
|
|
69,550
|
|
|
|
53,011
|
|
|
|
-
|
|
|
|
53,011
|
|
|
|
|
484,403
|
|
|
|
2,316
|
|
|
|
486,719
|
|
|
|
359,054
|
|
|
|
-
|
|
|
|
359,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
213,427
|
|
|
|
(58,826
|
)
|
|
|
154,601
|
|
|
|
158,828
|
|
|
|
(42,964
|
)
|
|
|
115,864
|
Services
|
|
|
44,803
|
|
|
|
(1,575
|
)
|
|
|
43,228
|
|
|
|
36,303
|
|
|
|
(1,475
|
)
|
|
|
34,828
|
|
|
|
|
258,230
|
|
|
|
(60,401
|
)
|
|
|
197,829
|
|
|
|
195,131
|
|
|
|
(44,439
|
)
|
|
|
150,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
226,173
|
|
|
|
62,717
|
|
|
|
288,890
|
|
|
|
163,923
|
|
|
|
44,439
|
|
|
|
208,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
52,310
|
|
|
|
(5,490
|
)
|
|
|
46,820
|
|
|
|
36,923
|
|
|
|
(3,597
|
)
|
|
|
33,326
|
Selling, general and administrative
|
|
|
202,040
|
|
|
|
(57,652
|
)
|
|
|
144,388
|
|
|
|
141,232
|
|
|
|
(40,354
|
)
|
|
|
100,878
|
Change in fair value of earn-out obligations
|
|
|
754
|
|
|
|
(754
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
255,104
|
|
|
|
(63,896
|
)
|
|
|
191,208
|
|
|
|
178,155
|
|
|
|
(43,951
|
)
|
|
|
134,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(28,931
|
)
|
|
|
126,613
|
|
|
|
97,682
|
|
|
|
(14,232
|
)
|
|
|
88,390
|
|
|
|
74,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
(450
|
)
|
|
|
-
|
|
|
|
(450
|
)
|
|
|
2,124
|
|
|
|
-
|
|
|
|
2,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(29,381
|
)
|
|
|
126,613
|
|
|
|
97,232
|
|
|
|
(12,108
|
)
|
|
|
88,390
|
|
|
|
76,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
|
|
|
(2,474
|
)
|
|
|
17,575
|
|
|
|
15,101
|
|
|
|
9,407
|
|
|
|
7,225
|
|
|
|
16,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(26,907
|
)
|
|
$
|
109,038
|
|
|
$
|
82,131
|
|
|
$
|
(21,515
|
)
|
|
$
|
81,165
|
|
|
$
|
59,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
$
|
47
|
|
|
$
|
125
|
|
|
$
|
172
|
|
|
$
|
62
|
|
|
$
|
-
|
|
|
$
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Stratasys Ltd.
|
|
$
|
(26,954
|
)
|
|
$
|
108,913
|
|
|
$
|
81,959
|
|
|
$
|
(21,577
|
)
|
|
$
|
81,165
|
|
|
$
|
59,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ordinary share attributable to Stratasys
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.64
|
)
|
|
|
|
|
|
$
|
1.95
|
|
|
$
|
(0.58
|
)
|
|
|
|
|
|
$
|
1.61
|
Diluted
|
|
|
(0.68
|
)
|
|
|
|
|
|
|
1.84
|
|
|
|
(0.58
|
)
|
|
|
|
|
|
|
1.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
42,079
|
|
|
|
|
|
|
|
42,079
|
|
|
|
36,987
|
|
|
|
|
|
|
|
36,987
|
Diluted
|
|
|
42,099
|
|
|
|
|
|
|
|
44,511
|
|
|
|
36,987
|
|
|
|
|
|
|
|
39,970
|
|
|
TheCompany considers these non-GAAP measures to be indicative of its
core operating results and facilitates a comparison of operating
results across reporting periods. The Company uses these non-GAAP
measures when evaluating its financial results as well as for
internal planning and forecasting purposes, however these measures
should not be viewed as a substitute for the Company's GAAP results.
|
|
* Refer to the "Reconciliation of Non-GAAP Adjustments" herein for
further information regarding adjustments.
|
|
|
Stratasys Ltd.
|
|
Reconciliation of Non-GAAP Adjustments
|
|
(in thousands)
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Net sales, products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue step-up
|
|
|
668
|
|
|
|
-
|
|
|
|
2,316
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales, products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets amortization expense
|
|
|
(14,233
|
)
|
|
|
(10,260
|
)
|
|
|
(57,027
|
)
|
|
|
(41,038
|
)
|
Non-cash stock-based compensation expense
|
|
|
(496
|
)
|
|
|
(361
|
)
|
|
|
(1,535
|
)
|
|
|
(1,190
|
)
|
Merger related expense
|
|
|
(36
|
)
|
|
|
(315
|
)
|
|
|
(264
|
)
|
|
|
(736
|
)
|
|
|
|
|
(14,765
|
)
|
|
|
(10,936
|
)
|
|
|
(58,826
|
)
|
|
|
(42,964
|
)
|
Cost of sales, services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense
|
|
|
(424
|
)
|
|
|
(397
|
)
|
|
|
(1,445
|
)
|
|
|
(1,475
|
)
|
Merger related expense
|
|
|
(71
|
)
|
|
|
-
|
|
|
|
(130
|
)
|
|
|
-
|
|
|
|
|
|
(495
|
)
|
|
|
(397
|
)
|
|
|
(1,575
|
)
|
|
|
(1,475
|
)
|
Research and development, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based compensation expense
|
|
|
(925
|
)
|
|
|
(988
|
)
|
|
|
(3,491
|
)
|
|
|
(3,597
|
)
|
Performance bonus expense
|
|
|
(1,282
|
)
|
|
|
-
|
|
|
|
(1,999
|
)
|
|
|
-
|
|
|
|
|
|
(2,207
|
)
|
|
|
(988
|
)
|
|
|
(5,490
|
)
|
|
|
(3,597
|
)
|
Selling, general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets amortization expense
|
|
|
(5,319
|
)
|
|
|
(2,375
|
)
|
|
|
(17,066
|
)
|
|
|
(9,500
|
)
|
Non-cash stock-based compensation expense
|
|
|
(4,954
|
)
|
|
|
(5,187
|
)
|
|
|
(17,791
|
)
|
|
|
(21,592
|
)
|
Merger related expense
|
|
|
(2,724
|
)
|
|
|
(2,497
|
)
|
|
|
(15,681
|
)
|
|
|
(9,262
|
)
|
Performance bonus expense
|
|
|
(4,636
|
)
|
|
|
-
|
|
|
|
(7,114
|
)
|
|
|
-
|
|
|
|
|
|
(17,633
|
)
|
|
|
(10,059
|
)
|
|
|
(57,652
|
)
|
|
|
(40,354
|
)
|
Change in fair value of earn-out obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Earn-out obligation
|
|
|
853
|
|
|
|
-
|
|
|
|
(754
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expense related to non-GAAP adjustments
|
|
|
7,133
|
|
|
|
2,606
|
|
|
|
17,575
|
|
|
|
7,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense attributable to
non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
125
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
27,782
|
|
|
$
|
19,774
|
|
|
$
|
108,913
|
|
|
$
|
81,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stratasys Ltd.
|
|
Reconciliation of GAAP to Non-GAAP Forward Looking Guidance
|
|
Fiscal Year 2014
|
|
(in millions, except per share data)
|
|
GAAP net income
|
|
$10.5 to $19.9
|
|
|
|
Adjustments
|
|
|
Stock-based compensation expense
|
|
$25.1 to $28.2
|
Intangible assets amortization expense
|
|
$64.8
|
Merger related expense
|
|
$8.8 to $9.8
|
|
|
|
Non-GAAP net income
|
|
$113.3 to $118.6
|
|
|
|
GAAP diluted earnings per share
|
|
$0.20 to $0.38
|
|
|
|
Non-GAAP diluted earnings per share
|
|
$2.15 to $2.25
|
|
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