EXHIBIT 99.1
ROCK HILL, S.C., Feb. 28, 2014 (GLOBE NEWSWIRE) -- 3D Systems Corporation (NYSE:DDD) announced today that its fourth quarter revenue grew 52% from the prior year to a record $154.8 million on 34% overall organic growth, resulting in GAAP earnings of $0.11 per share and non-GAAP earnings of $0.19 per share for the fourth quarter.
For the fourth quarter 2013, gross profit increased 53% and gross profit margin remained flat at 51.7% compared to the 2012 fourth quarter, and contributed to GAAP net income of $11.2 million, and non-GAAP net income of $19.7 million.
For the full year 2013, revenue increased 45% to a record $513.4 million on 80% printers and other products growth and 29% organic growth, resulting in GAAP earnings of $0.45 per share and non-GAAP earnings of $0.85 per share for the year. Gross profit increased 48% and gross profit margin expanded 90 basis points to 52.1%.
"We are pleased to report another record revenue quarter on robust professional and advanced manufacturing printers' demand, increased materials' growth rate and total unit sales that more than tripled last year's units," said Avi Reichental, 3D Systems' President and Chief Executive Officer.
Fourth Quarter 2013 Revenue Highlights (compared to 2012 quarter):
Full Year 2013 Revenue Highlights (compared to 2012):
"Compared to our late quarter expectations, we are disappointed that our stronger order book didn't convert to higher revenue, but instead, resulted in a near doubling of last quarter's backlog. Despite our higher growth, certain revenue categories fell short of our expectations and the concentration of new product announcements deferred sales and suppressed expected gross profit margin for the quarter," continued Reichental.
Consistent with its prior comments, the company more than doubled its fourth quarter R&D spending from $7.8 million the prior year to $16.6 million for the December quarter and continued to rapidly increase its sales, marketing, infrastructure and talent expenditures in support of its growth initiatives and recently announced joint developments and alliances. The impact of these expenditures was partially reflected in the unveiling of 24 new products between December 1st 2013 and January 9th 2014. The company also continued to expand its manufacturing capacity to accommodate increasing demand.
"Maintaining our historical performance doesn't require this level of increased expenditures, but planning to double our revenue over the next couple of years does," said Reichental. Although, in October, we guided for reduced earnings to reflect these actions, our late-quarter expenditures ramp surpassed our expectations."
Management continues to focus on accelerating the company's growth and expanding its market share. Consequently, management is prioritizing initiatives and investments that are central to its plans to double its revenue, over the next couple of years, ahead of short-term earnings, in order to deliver the full potential of its business model. Accordingly, management expects 2014 revenue to be in range of $680 million to $720 million and expects GAAP earnings per share in the range of $0.44 to $0.56 and non-GAAP earnings per share to be in the range of $0.73 to $0.85.
"We believe that 3D Printing is at the cusp of accelerated growth and that the ultimate measure of our success will be the sustainable value we create from our share and scale gains over time. While our stepped up actions and investments pressured our quarterly earnings, we believe that our actions set the stage to substantially compress the time it will take us to extend and solidify our leadership position and deliver greater value," concluded Reichental.
Q4 and Full Year 2013 Conference Call and Webcast
3D Systems plans to hold a conference call and simultaneous webcast to discuss its financial results for the fourth quarter and full year 2013 on Friday, February 28, 2014, at 9:00 a.m. Eastern Time. The company expects to release these financial results and to file its Form 10-K on February 28, 2014.
| Date: Friday, February 28, 2014 |
| Time: 9:00 a.m. Eastern Time |
| Listen via Internet: www.3dsystems.com/investor |
| Participate via telephone: |
| Within the U.S.: 1-866-953-6856 |
| Outside the U.S.: 1-617-399-3480 |
| Participant code: 77177985 |
The recorded webcast will be available beginning approximately two hours after the live presentation at www.3dsystems.com/investor.
Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking. Forward-looking statements may include comments as to the company's beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in the company's periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.
Presentation of Information in This Press release
To facilitate a better understanding of the impact that several strategic acquisitions had on its financial results, the company reported non-GAAP measures that adjust net income and earnings per share by excluding the impact of amortization of intangibles, non-cash interest expense, acquisition and severance expenses, litigation settlements, loss on conversion of notes and stock-based compensation expense. A reconciliation of GAAP to non-GAAP results is provided in the accompanying schedule.
About 3D Systems Corporation
3D Systems is a leading provider of 3D printing centric design-to-manufacturing solutions including 3D printers, print materials and cloud sourced on-demand custom parts for professionals and consumers alike in materials including plastics, metals, ceramics and edibles. The company also provides integrated 3D scan-based design, freeform modeling and inspection tools. Its products and services replace and complement traditional methods and reduce the time and cost of designing new products by printing real parts directly from digital input. These solutions are used to rapidly design, create, communicate, prototype or produce real parts, empowering customers to manufacture the future.
Leadership Through Innovation and Technology
Today its comprehensive range of 3D printers is the industry's benchmark for production-grade manufacturing in aerospace, automotive, patient specific medical device and a variety of consumer, electronic and fashion accessories.
More information on the company is available at www.3DSystems.com.
Tables Follow
| 3D Systems Corporation | ||||
| Consolidated Statements of Operations and Comprehensive Income | ||||
| Quarter and Year Ended December 31, 2013 and 2012 | ||||
| Quarter Ended December 31, | Full Year Ended December 31, | |||
| (in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 |
| Revenue: | ||||
| Products | $ 111,095 | $ 68,757 | $ 356,032 | $ 229,980 |
| Services | 43,722 | 32,814 | 157,368 | 123,653 |
| Total revenue | 154,817 | 101,571 | 513,400 | 353,633 |
| Cost of sales: | ||||
| Products | 51,059 | 31,665 | 159,628 | 105,286 |
| Services | 23,661 | 17,410 | 86,178 | 67,151 |
| Total cost of sales | 74,720 | 49,075 | 245,806 | 172,437 |
| Gross profit | 80,097 | 52,496 | 267,594 | 181,196 |
| Operating expenses: | ||||
| Selling, general and administrative | 45,547 | 26,524 | 143,244 | 97,422 |
| Research and development | 16,574 | 7,806 | 43,489 | 23,203 |
| Total operating expenses | 62,121 | 34,330 | 186,733 | 120,625 |
| Income from operations | 17,976 | 18,166 | 80,861 | 60,571 |
| Interest and other expense, net | 1,475 | 8,703 | 16,855 | 17,292 |
| Income before income taxes | 16,501 | 9,463 | 64,006 | 43,279 |
| Provision for (benefit of) income taxes | 5,248 | (1,449) | 19,887 | 4,338 |
| Net income | 11,253 | 10,912 | 44,119 | 38,941 |
| Net (income) attributable to noncontrolling interest | (29) | — | (12) | — |
| Net income attributable to 3D Systems Corporation | $ 11,224 | $ 10,912 | $ 44,107 | $ 38,941 |
| Other comprehensive income: | ||||
| Pension adjustments, net of taxes | $ (190) | $ (715) | $ (168) | $ (714) |
| Foreign currency translation gain attributable to 3D Systems Corporation | 1,868 | 1,450 | 1,968 | 1,640 |
| Liquidation of non-US entity | 173 | — | 173 | — |
| Total other comprehensive income | 1,851 | 735 | 1,973 | 926 |
| Comprehensive income | 13,075 | 11,647 | 46,080 | 39,867 |
| Foreign currency translation gain attributable to noncontrolling interest | (50) | — | (50) | — |
| Comprehensive income attributable to 3D Systems Corporation | $ 13,025 | $ 11,647 | $ 46,030 | $ 39,867 |
| Net income per share available to 3D System's common stockholders' — basic and diluted | $ 0.11 | $ 0.13 | $ 0.45 | $ 0.48 |
| 3D Systems Corporation | ||
| Consolidated Balance Sheets | ||
| December 31, 2013 and 2012 | ||
| December 31, | December 31, | |
| (in thousands, except par value) | 2013 | 2012 |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 306,316 | $ 155,859 |
| Accounts receivable, net of allowance for doubtful accounts of $8,133 (2013) and $4,317 (2012) | 132,121 | 79,869 |
| Inventories, net | 75,148 | 41,820 |
| Prepaid expenses and other current assets | 7,203 | 4,010 |
| Current deferred income taxes | 6,067 | 5,867 |
| Restricted cash | — | 13 |
| Total current assets | 526,855 | 287,438 |
| Property and equipment, net | 45,208 | 34,353 |
| Intangible assets, net | 141,709 | 108,377 |
| Goodwill | 370,066 | 240,314 |
| Long term deferred income taxes | 548 | 107 |
| Other assets, net | 13,470 | 6,853 |
| Total assets | $ 1,097,856 | $ 677,442 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Current portion of capitalized lease obligations | $ 187 | $ 174 |
| Accounts payable | 51,729 | 32,095 |
| Accrued and other liabilities | 28,430 | 24,789 |
| Customer deposits | 5,466 | 2,786 |
| Deferred revenue | 24,644 | 15,309 |
| Total current liabilities | 110,456 | 75,153 |
| Long term portion of capitalized lease obligations | 7,277 | 7,443 |
| Convertible senior notes, net | 11,416 | 80,531 |
| Deferred income tax liability | 19,714 | 23,142 |
| Other liabilities | 15,201 | 10,840 |
| Total liabilities | 164,064 | 197,109 |
| Commitments and Contingencies | ||
| Stockholders' equity: | ||
| Common stock, $0.001 par value, authorized 220,000 shares (2013) and 120,000 (2012); issued 103,818 (2013) and 89,783 (2012) | 104 | 60 |
| Additional paid-in capital | 866,552 | 460,237 |
| Treasury stock, at cost: 600 shares (2013) and 355 shares (2012) | (286) | (240) |
| Accumulated earnings | 60,487 | 16,410 |
| Accumulated other comprehensive income | 5,789 | 3,866 |
| Total 3D Systems Corporation stockholders' equity | 932,646 | 480,333 |
| Noncontrolling interest | 1,146 | — |
| Total stockholders' equity | 933,792 | 480,333 |
| Total liabilities and stockholders' equity | $ 1,097,856 | $ 677,442 |
| 3D Systems Corporation | ||
| Consolidated Statements of Cash Flows | ||
| Year Ended December 31, 2013 and 2012 | ||
| (in thousands) | 2013 | 2012 |
| Cash flows from operating activities: | ||
| Net income | $ 44,119 | $ 38,941 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Benefit of deferred income taxes | (9,892) | (661) |
| Depreciation and amortization | 30,444 | 21,229 |
| Non-cash interest on convertible notes | 974 | 3,876 |
| Provision for bad debts | 4,961 | 3,039 |
| Stock-based compensation | 13,558 | 5,118 |
| (Gain) loss on the disposition of property and equipment | 1,128 | (674) |
| Deferred interest income | (1,018) | — |
| Loss on conversion of convertible debt | 11,275 | 7,021 |
| Changes in operating accounts: | ||
| Accounts receivable | (43,684) | (19,246) |
| Inventories | (30,893) | (12,225) |
| Prepaid expenses and other current assets | (1,780) | (794) |
| Accounts payable | 7,620 | (238) |
| Accrued liabilities | (6,495) | 7,567 |
| Customer deposits | 1,904 | (1,336) |
| Deferred revenue | 7,526 | 1,164 |
| Other operating assets and liabilities | (4,563) | (1,251) |
| Net cash provided by operating activities | 25,184 | 51,530 |
| Cash flows from investing activities: | ||
| Purchases of property and equipment | (6,972) | (3,224) |
| Additions to license and patent costs | (1,648) | (729) |
| Proceeds from disposition of property and equipment | 1,882 | — |
| Cash paid for acquisitions, net of cash assumed | (162,318) | (183,701) |
| Other investing activities | (4,701) | — |
| Net cash used in investing activities | (173,757) | (187,654) |
| Cash flows from financing activities: | ||
| Proceeds from issuance of common stock | 272,076 | 106,889 |
| Proceeds from 5.50% convertible notes | — | — |
| Tax benefits from share-based payment arrangements | 26,038 | 1,514 |
| Convertible notes capitalized costs | — | — |
| Proceeds from exercise of stock options and restricted stock, net | 902 | 4,400 |
| Cash disbursed in lieu of fractional shares related to stock split | (176) | — |
| Repayment of capital lease obligations | (157) | (163) |
| Restricted cash | 13 | — |
| Net cash provided by financing activities | 298,696 | 112,640 |
| Effect of exchange rate changes on cash | 334 | 223 |
| Net increase (decrease) in cash and cash equivalents | 150,457 | (23,261) |
| Cash and cash equivalents at the beginning of the period | 155,859 | 179,120 |
| Cash and cash equivalents at the end of the period | $ 306,316 | $ 155,859 |
| 3D Systems Corporation | ||||
| Schedule 1 | ||||
| Earnings Per Share | ||||
| Quarter Ended December 31, | Year Ended December 31, | |||
| (in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 |
| Numerator: | ||||
| Net income attributable to 3D Systems – numerator for basic net earnings per share | $ 11,224 | $ 10,912 | $ 44,107 | $ 38,941 |
| Add: Effect of dilutive securities | ||||
| Interest expense on 5.50% convertible notes (after-tax) | — | — | — | — |
| Numerator for diluted earnings per share | $ 11,224 | $ 10,912 | $ 44,107 | $ 38,941 |
| Denominator: | ||||
| Weighted average shares – denominator for basic net earnings per share | 102,900 | 86,126 | 98,393 | 80,817 |
| Add: Effect of dilutive securities | ||||
| Stock options and other equity compensation | — | 54 | — | 906 |
| 5.50% convertible notes (after-tax) | — | — | — | — |
| Denominator for diluted earnings per share | 102,900 | 86,180 | 98,393 | 81,723 |
| Earnings per share | ||||
| Basic & diluted | $ 0.11 | $ 0.13 | $ 0.45 | $ 0.48 |
| Interest expense excluded from diluted earnings per share calculation | $ 85 | $ 3,707 | $ 1,835 | $ 9,002 |
| 5.50% Convertible notes shares excluded from diluted earnings per share calculation | 877 | 4,239 | 1,764 | 5,957 |
| 3D Systems Corporation | ||||
| Schedule 2 | ||||
| Unaudited Reconciliation of GAAP Net Income to Non-GAAP Net Income | ||||
| Quarter and Year Ended December 31, 2013 and 2012 | ||||
| Quarter Ended December 31, 2013 | Full Year Ended December 31, 2013 | |||
| ($ in millions, except per share amounts) | 2013 | 2012 | 2013 | 2012 |
| GAAP net income | $ 11,224 | $ 10,912 | $ 44,107 | $ 38,941 |
| Cost of sales adjustments: | ||||
| Amortization of intangibles | 60 | 60 | 250 | 193 |
| Operating expense adjustments: | ||||
| Amortization of intangibles | 5,536 | 3,156 | 20,448 | 11,259 |
| Acquisition and severance expenses | 1,700 | 2,239 | 7,057 | 4,982 |
| Non-cash stock-based compensation expense | 5,031 | 1,463 | 13,495 | 4,613 |
| Other expense adjustments: | ||||
| Non-cash interest expense | 93 | 952 | 973 | 3,489 |
| Loss on convertible notes | — | 5,776 | 11,275 | 6,295 |
| (Gain) loss on litigation and tax settlements | — | — | 2,457 | (1,296) |
| Tax effect | (3,925) | (1,974) | (16,327) | (610) |
| Non-GAAP net income | $ 19,719 | $ 22,584 | $ 83,735 | $ 67,866 |
| Non-GAAP diluted earnings per share | $ 0.19 | $ 0.26 | $ 0.85 | $ 0.83 |
CONTACT: Investor Contact:
Stacey Witten
Email: Stacey.Witten@3dsystems.com
Media Contact:
Alyssa Reichental
Email: Press@3dsystems.com