Materialise NV (NASDAQ:MTLS), a leading provider of additive
manufacturing and medical software and of sophisticated 3D printing
services, today announced its financial results for the second
quarter ended June 30, 2022.
Highlights – Second Quarter 2022
- Total revenue increased 14.5% to 58,070 kEUR compared to 50,713
kEUR for the second quarter of 2021.
- Total deferred revenue from annual software sales and
maintenance fees increased by 3,758 kEUR to 38,903 kEUR compared to
December 31, 2021.
- Adjusted EBITDA was 4,240 kEUR, compared to 6,925 kEUR for the
2021 period.
- Net profit for the second quarter of 2022 was 896 kEUR, or 0.02
EUR per diluted share, compared to 3,367 kEUR, or 0.06 EUR per
diluted share, for the 2021 period.
Executive Chairman Peter Leys commented, “Demand for the
products and solutions of each of our three segments remained
strong in these uncertain macro-economic times. Materialise’s
revenue increased by almost 15% compared to the same period last
year and our deferred revenue from annual software sales and
maintenance fees increased by more than 10% compared to December
31,2021. Encouraged by our solid top-line results, we are
continuing to execute on our plan of investing in our growth
businesses. As a result of inflation and, in particular, our
increased labor costs, our Adjusted EBITDA for the quarter was
4,240 kEUR compared to 6,925 kEUR for the second quarter of
2021.”
Second Quarter 2022 Results
Total revenue for the second quarter of 2022 increased 14.5% to
58,070 kEUR from 50,713 kEUR for the second quarter of 2021.
Adjusted EBITDA amounted to 4,240 kEUR for the second quarter of
2022 compared to 6,925 kEUR for the 2021 period. The Adjusted
EBITDA margin (Adjusted EBITDA divided by total revenue) for the
second quarter of 2022 was 7.3%, compared to 13.7% for the second
quarter of 2021.
Revenue from our Materialise Software segment increased 6.1% to
10,642 kEUR for the second quarter of 2022 from 10,032 kEUR for the
same quarter last year. Segment EBITDA decreased, including the
effect of ongoing investments in Link3D, to 821 kEUR from 3,129
kEUR while the segment EBITDA margin was 7.7% compared to 31.2% for
the prior-year period.
Revenue from our Materialise Medical segment increased 18.9% to
20,855 kEUR for the second quarter of 2022 compared to 17,544 kEUR
for the same period in 2021. Segment EBITDA amounted to 4,474 kEUR
for the second quarter of 2022 compared to 4,519 kEUR while the
segment EBITDA margin was 21.5% compared to 25.8% for the second
quarter of 2021.
Revenue from our Materialise Manufacturing segment increased
14.2% to 26,574 kEUR for the second quarter of 2022 from 23,268
kEUR for the second quarter of 2021. Segment EBITDA amounted to
1,581 kEUR compared to 1,850 kEUR for the same period last year,
while the segment EBITDA margin was 5.9% compared to 8.0% for the
second quarter of 2021.
Gross profit was 32,030 kEUR compared to 28,441 kEUR for the
same period last year, while gross profit as a percentage of
revenue decreased to 55.2% compared to 56.1% for the second quarter
of 2021.
Research and development (“R&D”), sales and marketing
(“S&M”) and general and administrative (“G&A”) expenses
increased, in the aggregate, 25.1% to 33,613 kEUR for the second
quarter of 2022 from 26,863 kEUR for the second quarter of
2021.
Net other operating income was 498 kEUR compared to 843 kEUR for
the second quarter of 2021.
Operating result amounted to (1,084) kEUR compared to 2,421 kEUR
for the second quarter of 2021.
Net financial result was 2,580 kEUR compared to 1,153 kEUR for
the second quarter of 2021.
The second quarter of 2022 contained income tax expenses of
(600) kEUR, compared to (207) kEUR in the second quarter of
2021.
As a result of the above, net profit for the second quarter of
2022 was 896 kEUR, compared to 3,367 kEUR for the same period in
2021. Total comprehensive income for the second quarter of 2022,
which includes exchange differences on translation of foreign
operations, was 771 kEUR compared to 4,344 kEUR for the 2021
period.
At June 30, 2022, we had cash and cash equivalents of 168,133
kEUR compared to 196,028 kEUR at December 31, 2021. Gross debt
amounted to 90,474 kEUR, compared to 99,107 kEUR at December 31,
2021. As a result, our net cash position (cash and cash equivalents
less gross debt) was 77,659 kEUR, a decrease of 19,262 kEUR, and
included the effect of our call option exercise to acquire 100% of
the shares of Link3D.
Cash flow from operating activities for the second quarter of
the year 2022 was 8,636 kEUR compared to 8,871 kEUR for the same
period in 2021. Total capital expenditures for the second quarter
of 2022 amounted to 6,548 kEUR.
Net shareholders’ equity at June 30, 2022 was 234,921 kEUR
compared to 232,577 kEUR at December 31, 2021.
2022 Guidance
Mr. Leys concluded, “The consecutive revenue growth posted by
each of our segments in the first and second quarters of this year
strengthens our confidence that our full year 2022 revenues will be
at least 10% higher than in 2021. While inflation and effects of
the war for talent, which are higher and more persistent than
anticipated in the beginning of this year, weigh on our results, we
continue to invest in our growth businesses. As a result, we
currently expect that our consolidated EBITDA for the full year
2022 will be in the range of 20 mEUR to 25 mEUR.”
Non-IFRS Measures
Materialise uses EBITDA and Adjusted EBITDA as supplemental
financial measures of its financial performance. EBITDA is
calculated as net profit plus income taxes, financial expenses
(less financial income), shares of profit or loss in a joint
venture and depreciation and amortization. Adjusted EBITDA is
determined by adding share-based compensation expenses,
acquisition-related expenses of business combinations, impairments
and revaluation of fair value due to business combinations to
EBITDA. Management believes these non-IFRS measures to be important
measures as they exclude the effects of items which primarily
reflect the impact of long-term investment and financing decisions,
rather than the performance of the company’s day-to-day operations.
As compared to net profit, these measures are limited in that they
do not reflect the periodic costs of certain capitalized tangible
and intangible assets used in generating revenues in the company’s
business, or the charges associated with impairments. Management
evaluates such items through other financial measures such as
capital expenditures and cash flow provided by operating
activities. The company believes that these measurements are useful
to measure a company’s ability to grow or as a valuation
measurement. The company’s calculation of EBITDA and Adjusted
EBITDA may not be comparable to similarly titled measures reported
by other companies. EBITDA and Adjusted EBITDA should not be
considered as alternatives to net profit or any other performance
measure derived in accordance with IFRS. The company’s presentation
of EBITDA and Adjusted EBITDA should not be construed to imply that
its future results will be unaffected by unusual or non-recurring
items.
Exchange Rate
This document contains translations of certain euro amounts into
U.S. dollars at specified rates solely for the convenience of
readers. Unless otherwise noted, all translations from euros to
U.S. dollars in this document were made at a rate of EUR 1.00 to
USD 1.0387, the reference rate of the European Central Bank on June
30, 2022.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast
to discuss its financial results for the second quarter of 2022 on
Thursday, July 28, 2022, at 8:30 a.m. ET/2:30 p.m. CET. Company
participants on the call will include Wilfried Vancraen, Founder
and Chief Executive Officer; Peter Leys, Executive Chairman; and
Johan Albrecht, Chief Financial Officer. A question-and-answer
session will follow management’s remarks.
- To access the conference call by phone, please click the link
below at least 15 minutes prior to the scheduled start time and you
will be provided with dial-in details. Participants can choose to
dial in or to receive a call to connect to Materialise’s conference
call.
-
https://register.vevent.com/register/BI03ce199a940d4a37b9b57caf54c5d59f
The conference call will also be broadcast live over the
Internet with an accompanying slide presentation, which can be
accessed on the company’s website at
http://investors.materialise.com. A webcast of the conference call
will be archived on the company's website for one year.
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 endedJune 30, for the six
months endedJune 30, In '000
2022
2022
2021(*)
2022
2021(*)
U.S.$ € € € € Revenue
60,318
58,070
50,713
111,032
96,266
Cost of Sales
(27,048
)
(26,040
)
(22,272
)
(50,118
)
(43,258
)
Gross Profit
33,270
32,030
28,441
60,914
53,009
Gross profit as % of revenue
55.2
%
55.2
%
56.1
%
54.9
%
55.1
%
Research and development expenses
(9,302
)
(8,955
)
(6,844
)
(16,770
)
(13,380
)
Sales and marketing expenses
(15,533
)
(14,954
)
(12,007
)
(28,469
)
(23,317
)
General and administrative expenses
(10,079
)
(9,704
)
(8,012
)
(18,148
)
(15,565
)
Net other operating income (expenses)
518
498
843
1,436
1,963
Operating (loss) profit
(1,126
)
(1,084
)
2,421
(1,036
)
2,710
Financial expenses
(1,371
)
(1,320
)
(815
)
(2,561
)
(5,515
)
Financial income
4,051
3,901
1,968
5,517
2,556
Share in loss of joint venture
-
-
-
-
-
(Loss) profit before taxes
1,554
1,496
3,574
1,921
(249
)
Income Taxes (*)
(623
)
(600
)
(207
)
(898
)
(27
)
Net (loss) profit for the period (*)
931
896
3,367
1,023
(275
)
Net (loss) profit attributable to:
-
The owners of the parent
938
903
3,367
1,036
(275
)
Non-controlling interest
(7
)
(7
)
-
(13
)
-
Earning per share attributable to owners of the
parent Basic (*)
0.02
0.02
0.06
0.02
(0.01
)
Diluted (*)
0.02
0.02
0.06
0.02
(0.01
)
Weighted average basic shares outstanding
59,064
59,064
54,873
59,064
54,521
Weighted average diluted shares outstanding
59,095
59,095
55,115
59,100
54,521
(*) The year 2021 has been restated to reflect the final accounting
of the business combination with RS Print. Impact on the six months
ended June 30 income taxes and net profit is (51)k€. Impact on the
year to date earnings per share is (0.01) €/share
Consolidated statements of
comprehensive income (Unaudited)
for the three months endedJune 30, for the six
months endedJune 30, In 000€
2022
2022
2021(*)
2022
2021(*)
U.S.$ € € € € Net profit
(loss) for the period (*)
931
896
3,367
1,023
(275
)
Other comprehensive income Recycling Exchange
difference on translation of foreign operations
(130
)
(125
)
929
1,291
1,975
Non-recycling Fair value adjustments through OCI - Equity
instruments
-
-
48
-
48
Other comprehensive income (loss), net of taxes
(130
)
(125
)
977
1,291
2,023
Total comprehensive income (loss) for the year, net of taxes
801
771
4,344
2,314
1,748
Total comprehensive income (loss) attributable to: The owners of
the parent
808
778
4,344
2,327
1,748
Non-controlling interests
(7
)
(7
)
-
(13
)
-
(*) The year 2021 has been restated to reflect the final accounting
of the business combination with RS Print. Impact on the six months
ended June 30 net profit is (51)k€.
Consolidated statement of financial
position (Unaudited)
As of June 30,
As of December 31,
In 000€
2022
2021
Assets Non-current assets Goodwill
45,184
18,726
Intangible assets
38,168
31,668
Property, plant & equipment
86,770
84,451
Right-of-Use assets
9,089
9,054
Investments in joint ventures
-
-
Deferred tax assets
224
227
Investments in convertible loans
3,684
3,560
Investments in non-listed equity instruments
399
399
Other non-current assets
4,755
7,520
Total non-current assets
188,273
155,605
Current assets Inventories
14,093
11,295
Trade receivables
41,840
41,541
Other current assets
7,463
8,940
Cash and cash equivalents
168,133
196,028
Total current assets
231,529
257,803
Total assets
419,803
413,408
As of June 30,
As of December 31,
In 000€
2022
2021
Equity and liabilities Equity Share capital
4,509
4,489
Share premium
238,724
233,872
Retained earnings and other reserves
(8,312
)
(5,784
)
Equity attributable to the owners of the parent
234,921
232,577
Non-controlling interest
(12
)
1
Total equity
234,909
232,578
Non-current liabilities Loans & borrowings
63,804
72,637
Lease liabilities
5,345
5,268
Deferred tax liabilities
4,486
4,371
Deferred income
6,361
4,952
Other non-current liabilities
2,839
2,168
Total non-current liabilities
82,835
89,396
Current liabilities Loans & borrowings
17,866
17,849
Lease liabilities
3,459
3,353
Trade payables
26,380
20,171
Tax payables
840
783
Deferred income
36,482
33,306
Other current liabilities
17,032
15,972
Total current liabilities
102,059
91,434
Total equity and liabilities
419,803
413,408
Consolidated statement of cash flows
(Unaudited)
for the six months endedJune 30, In 000€
2022
2021*
Operating activities Net (loss) profit for the period (*)
1,023
(275
)
Non-cash and operational adjustments Depreciation of property plant
& equipment
7,630
7,591
Amortization of intangible assets
3,186
2,335
Impairment of goodwill and intangible assets
-
-
Share-based payment expense
(97
)
(774
)
Loss (gain) on disposal of property, plant & equipment
31
48
Movement in provisions
5
5
Movement reserve for bad debt and slow moving inventory
136
204
Financial income
(5,509
)
(2,556
)
Financial expense
2,564
5,515
Impact of foreign currencies
(61
)
87
Share in loss (gain) of a joint venture (equity method)
-
-
(Deferred) income taxes (*)
885
27
Other non-current liabilities
-
-
Working capital adjustments
10,154
723
Decrease (increase) in trade receivables and other receivables
1,450
(1,528
)
Decrease (increase) in inventories and contracts in progress
(2,839
)
(1,188
)
Increase (decrease) in deferred revenue
3,658
2,191
Increase (decrease) in trade payables and other payables
7,884
1,248
Income tax paid & Interest received
(201
)
173
Net cash flow from operating activities
19,747
13,102
(*) 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 (51) k€.
for the
six months endedJune 30, In 000€
2022
2021
Investing activities Purchase of property, plant &
equipment
(7,494
)
(2,453
)
Purchase of intangible assets
(2,553
)
(1,562
)
Proceeds from the sale of property, plant & equipment &
intangible assets (net)
184
222
Acquisition of subsidiary (net of cash)
(25,610
)
-
(Convertible) Loans granted
-
(4,370
)
Other equity investments in non-listed entities
-
-
Net cash flow used in investing activities
(35,474
)
(8,163
)
Financing activities Repayment of loans & borrowings
(9,018
)
(7,219
)
Repayment of leases
(1,668
)
(1,909
)
Capital increase
-
74,346
Interest paid
(1,155
)
(1,064
)
Other financial income (expense)
604
1,580
Net cash flow from (used in) financing activities
(11,236
)
65,734
Net increase/(decrease) of cash & cash equivalents
(26,964
)
70,673
Cash & Cash equivalents at the beginning of the year
196,028
111,538
Exchange rate differences on cash & cash equivalents
(930
)
605
Cash & cash equivalents at end of the period
168,133
182,816
Reconciliation of Net Profit (Loss) to
EBITDA and Adjusted EBITDA (Unaudited)
for the three months endedJune 30, for the six
months endedJune 30, In 000€
2022
2021 (*)
2022
2021 (*) Net profit (loss) for the period (*)
896
3,367
1,023
(275)
Income taxes (*)
600
207
898
27
Financial expenses
1,320
814
2,561
5,515
Financial income
(3,901)
(1,968)
(5,517)
(2,556)
Depreciation and amortization
5,374
4,845
10,816
9,926
Share in loss of joint venture
-
-
-
-
EBITDA
4,289
7,266
9,780
12,637
Share-based compensation expense (1)
(49)
(358)
(97)
(774)
Acquisition-related expenses of business combinations (2)
-
17
-
405
Adjusted EBITDA
4,240
6,925
9,683
12,268
(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 six months
ended June 30 net profit and income taxes is (51)k€.
Segment P&L (Unaudited)
In 000€
MaterialiseSoftware MaterialiseMedical
MaterialiseManufacturing Totalsegments
Unallocated(1) Consolidated For the three months
ended June 30, 2022 Revenues
10,642
20,855
26,574
58,070
0
58,070
Segment (adj) EBITDA
821
4,474
1,581
6,876
(2,636)
4,240
Segment (adj) EBITDA %
7.7%
21.5%
5.9%
11.8%
7.3%
For the three months ended June 30, 2021 Revenues
10,032
17,544
23,268
50,844
(131)
50,713
Segment (adj) EBITDA
3,129
4,519
1,850
9,498
(2,572)
6,925
Segment (adj) EBITDA %
31.2%
25.8%
8.0%
18.7%
13.7%
In 000€
MaterialiseSoftware MaterialiseMedical
MaterialiseManufacturing Totalsegments
Unallocated(1) Consolidated For the six months
ended June 30, 2022 Revenues
21,125
39,201
50,705
111,032
0
111,032
Segment (adj) EBITDA
2,753
7,701
4,192
14,647
(4,963)
9,683
Segment (adj) EBITDA %
13.0%
19.6%
8.3%
13.2%
8.7%
For the six months ended June 30, 2021 Revenues
20,251
33,776
42,381
96,408
(141)
96,266
Segment (adj) EBITDA
6,558
9,060
1,706
17,324
(5,059)
12,265
Segment (adj) EBITDA %
32.4%
26.8%
4.0%
18.0%
12.7%
(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 endedJune 30, for the six
months endedJune 30, In 000€
2022
2021 (*)
2022
2021 (*)
Net profit (loss) for the period (*)
896
3,367
1,023
(275)
Income taxes (*)
600
207
898
27
Financial cost
1,320
814
2,561
5,515
Financial income
(3,901)
(1,968)
(5,517)
(2,556)
Share in loss of joint venture
-
-
-
-
Operating (loss) profit
(1,084)
2,420
(1,036)
2,710
Depreciation and amortization
5,374
4,845
10,816
9,926
Corporate research and development
816
774
1,465
1,466
Corporate headquarter costs
2,104
2,316
4,612
4,964
Other operating income (expense)
(640)
(857)
(1,211)
(1,742)
Segment adjusted EBITDA
6,568
9,498
14,647
17,324
(*) The year 2021 has been restated to reflect the final accounting
of the business combination with RS Print. Impact on the six month
ended June 30 net profit and income taxes is (51)k€.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220728005079/en/
Investor Relations Harriet Fried LHA 212.838.3777
hfried@lhai.com
Materialise NV (NASDAQ:MTLS)
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