Board of Directors Authorizes Stock
Repurchase Program
Proto Labs, Inc. (NYSE:PRLB), a leading online and
technology-enabled, quick-turn, on-demand manufacturer, today
announced financial results for the fourth quarter and full year
ended December 31, 2016.
Fourth Quarter 2016 Highlights include:
- Revenue for the fourth quarter of 2016
was $72.4 million compared with $73.8 million in revenue in the
fourth quarter of 2015. The Alphaform acquisition was completed on
October 9, 2015, resulting in comparable year-over-year comparisons
for the fourth quarters of 2016 and 2015.
- Revenue from 3D printing for the fourth
quarter of 2016 totaled $9.8 million, an increase of eight percent
over the prior year’s fourth quarter. Reflected in the 2015 fourth
quarter results was revenue from unprofitable 3D printing contracts
at Alphaform that have been terminated. Excluding these
unprofitable contracts, revenue from 3D printing increased 16.6
percent. See “Non-GAAP Financial Measures” below.
- The number of unique product developers
and engineers served totaled 14,046 in the fourth quarter of 2016,
an increase of 13.1 percent over the fourth quarter of 2015.
- Net income for the fourth quarter of
2016 was $9.4 million, or $0.35 per diluted share. Non-GAAP net
income, excluding the after-tax expense of stock compensation,
amortization of intangibles, charges related to the exit of
facilities and unrealized foreign currency gains, was $10.8
million, or $0.41 per diluted share. See “Non-GAAP Financial
Measures” below.
“Our fourth quarter financial results continued to reflect the
challenges that we faced throughout 2016 with general economic
conditions affecting the R&D spending in certain industries, a
trend that was felt with greater impact as we closed out the year,”
said Vicki Holt, President and Chief Executive Officer. “3D
printing revenue growth remained healthy and we look for continued
strong growth in this segment.
“From an operational standpoint, we achieved several important
milestones during 2016 that have strengthened our competitive
position and enhanced our ability to generate improved top and
bottom line growth across all our businesses going forward. They
include strengthening the management team, integrating our
acquisition in Germany to enhance our 3D printing operations in
Europe, the successful launch of overmolding and the expansion of
our Liquid Silicone Rubber and lathe offerings, and the expansion
to new manufacturing facilities in North Carolina and Japan. During
2017, we will be building on these initiatives to drive additional
revenue growth.”
Additional Fourth Quarter 2016 Highlights include:
- Gross margin was 55.7 percent of
revenue for the fourth quarter of 2016 compared with 56.0 percent
for the fourth quarter of 2015 and 57.2 percent in the third
quarter of 2016.
- GAAP operating margin was 20.5 percent
of revenue during the fourth quarter of 2016 compared to 22.4
percent for the fourth quarter of 2015. On a non-GAAP basis,
operating margin was 23.1 percent for the fourth quarter of 2016.
See “Non-GAAP Financial Measures” below.
- The Company generated $18.8 million in
cash from operations during the fourth quarter of 2016.
Full Year 2016 Highlights include:
- Revenue for 2016 increased 12.9 percent
to $298.1 million compared with $264.1 million in 2015.
- Net income for 2016 was $42.7 million,
or $1.61 per diluted share, compared with $46.5 million, or $1.77
per diluted share in 2015. Non-GAAP net income, excluding the
after-tax expense of stock compensation, amortization of
intangibles, asset impairment expense, and facilities-related
charges, was $47.6 million, or $1.79 per diluted share. See
“Non-GAAP Financial Measures” below.
- Cash generated from operations during
the year totaled $75.0 million. Cash, cash equivalents and
investments increased $47.2 million during the year and were $192.8
million at December 31, 2016 compared with $145.6 million at
December 31, 2015.
“For 2017 we will be focused on three strategic priorities. Our
first initiative will be to improve our sales and marketing
productivity to bring in new product developers and generate
increased revenue. We will continue to expand our envelope of
services to capture more of our customers’ needs. As part of this
effort, we launched Insert Molding as an expansion of our Injection
Molding service this quarter. Finally, we will work to improve our
gross margin to achieve our 58 to 60 percent of revenue target. We
remain very optimistic about the prospects for Proto Labs and the
stock repurchase plan is a testament to our financial strength and
positive long-term outlook,” Ms. Holt concluded.
Stock Repurchase Program
The Board of Directors has authorized the repurchase of up to
$50 million of the company’s common stock from time to time on the
open market or in privately negotiated transactions, in compliance
with applicable securities laws and other legal requirements. The
term of the program runs through December 31, 2021.
The timing and amount of any shares of the company’s common
stock that are repurchased under the program will be determined by
the company’s management based on its evaluation of market
conditions and other factors. The share repurchase program may be
suspended or discontinued at any time.
The company expects to fund the share repurchase program through
cash generated from operations and cash on hand. At December 31,
2016, the company had 26,504,868 common shares outstanding.
Non-GAAP Financial Measures
The company has included non-GAAP revenue growth that excludes
the impact of changes in foreign currency exchange rates, revenue
excluding the acquired revenue contribution from Alphaform, and
revenue excluding unprofitable Alphaform 3D Printing contracts and
discontinued non-core resin resale businesses from total revenues
in this press release to provide investors with additional
information regarding the company’s financial results. Management
believes these metrics are useful in evaluating the underlying
business trends and ongoing operating performance of the
company.
The company has also included non-GAAP operating margin,
adjusted for stock-based compensation expense, amortization
expense, impairment on assets and charges related to the exit of
facilities (collectively, “non-GAAP operating margin”), in this
press release to provide investors with additional information
regarding the company’s financial results.
The company has also included non-GAAP net income, adjusted for
stock-based compensation expense, amortization expense, unrealized
foreign currency activity, impairment on assets and charges related
to the exit of facilities (collectively, “non-GAAP net income”), in
this press release to provide investors with additional information
regarding the company’s financial results.
The company has provided below a reconciliation of non-GAAP
revenue growth to revenue growth, non-GAAP operating margin to
operating margin and non-GAAP net income to net income, the most
directly comparable measures calculated and presented in accordance
with GAAP. Non-GAAP revenue growth, non-GAAP operating margins and
non-GAAP net income are used by the company’s management and board
of directors to understand and evaluate operating performance and
trends and provide useful measures for period-to-period comparisons
of the company’s business. Accordingly, the company believes that
non-GAAP revenue growth, non-GAAP operating margin and non-GAAP net
income provide useful information to investors and others in
understanding and evaluating operating results in the same manner
as our management and board of directors.
Conference Call
The company has scheduled a conference call to discuss its
fourth quarter and full year 2016 financial results today, February
9, 2017 at 8:30 a.m. ET. To access the call in the U.S. please dial
877-709-8150. Outside the U.S. please dial 201-689-8354. No
participant code is required. A simultaneous webcast of the call
will be available via the investor relations section of the Proto
Labs website and the following link:
http://edge.media-server.com/m/p/9qumpomn. A replay will be
available for 14 days following the call on the investor relations
section of Proto Labs’ website.
About Proto Labs, Inc.
Proto Labs is the world’s fastest digital manufacturing source
for custom prototypes and low-volume production parts. The
technology-enabled company uses advanced 3D printing, CNC machining
and injection molding technologies to produce parts within days.
The result is an unprecedented speed-to-market value for product
designers and engineers worldwide. Visit protolabs.com for more
information.
Forward-Looking Statements
Statements contained in this press release regarding matters
that are not historical or current facts are “forward-looking
statements” within the meaning of The Private Securities Litigation
Reform Act of 1995. These statements involve known and unknown
risks, uncertainties and other factors which may cause the results
of Proto Labs to be materially different than those expressed or
implied in such statements. Certain of these risk factors and
others are described in the “Risk Factors” section within reports
filed with the SEC. Other unknown or unpredictable factors also
could have material adverse effects on Proto Labs’ future results.
The forward-looking statements included in this press release are
made only as of the date hereof. Proto Labs cannot guarantee future
results, levels of activity, performance or achievements.
Accordingly, you should not place undue reliance on these
forward-looking statements. Finally, Proto Labs expressly disclaims
any intent or obligation to update any forward-looking statements
to reflect subsequent events or circumstances.
Proto Labs, Inc. Condensed Consolidated Balance
Sheets
(In thousands)
December 31, December 31,
2016 2015
(Unaudited) Assets Current assets Cash
and cash equivalents $ 68,795 $ 47,653 Short-term marketable
securities 39,477 33,201 Accounts receivable, net 34,060 36,125
Inventory 9,310 9,771 Income taxes receivable 445 6,028 Other
current assets 5,697 5,224 Total current assets
157,784 138,002 Property and equipment, net 139,474 125,475
Long-term marketable securities 84,479 64,789 Goodwill 28,916
28,916 Other intangible assets, net 2,655 3,337 Other long-term
assets 933 517 Total assets $ 414,241 $ 361,036
Liabilities and shareholders' equity Current
liabilities Accounts payable $ 11,322 $ 13,643 Accrued compensation
7,670 9,993 Accrued liabilities and other 4,435 2,626
Total current liabilities 23,427 26,262 Long-term deferred
tax liabilities 7,003 4,240 Other long-term liabilities 3,978 2,889
Shareholders' equity 379,833 327,645 Total
liabilities and shareholders' equity $ 414,241 $ 361,036
Proto Labs, Inc. Condensed Consolidated Statements
of Operations (In thousands, except share and per share
amounts) (Unaudited) Three Months
Ended Year Ended December 31,
December 31,
2016
2015
2016
2015
Revenue Injection Molding $ 41,598 $ 43,865 $ 175,974 $ 163,387 CNC
Machining 20,897 19,581 81,407 74,368 3D Printing 9,788 9,094
37,847 25,132 Other
70
1,219 2,827
1,219 Total revenue 72,353 73,759 298,055 264,106
Cost of revenue
32,041
32,485 131,118
109,703 Gross profit 40,312 41,274 166,937 154,403
Operating expenses Marketing and sales 11,949 10,805 46,131
39,188 Research and development 5,278 4,879 22,388 18,350 General
and administrative
8,254
9,033 36,651
29,716 Total operating expenses
25,481 24,717
105,170 87,254 Income from
operations 14,831 16,557 61,767 67,149 Other income, net
112 612 2,454
712 Income before income taxes 14,943 17,169
64,221 67,861 Provision for income taxes
5,571
5,176 21,514
21,347 Net income
$ 9,372
$ 11,993 $
42,707 $ 46,514 Net
income per share: Basic
$ 0.35
$ 0.46 $ 1.62
$ 1.79 Diluted
$
0.35 $ 0.45 $
1.61 $ 1.77 Shares
used to compute net income per share: Basic 26,457,302 26,164,340
26,365,173 26,005,858 Diluted 26,609,929 26,465,043 26,564,639
26,320,284
Proto Labs, Inc. Condensed
Consolidated Statements of Cash Flows (In thousands)
(Unaudited) Year Ended December
31, 2016 2015 Operating activities Net
income $ 42,707 $ 46,514 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation and
amortization 17,485 14,126 Stock-based compensation expense 6,775
6,082 Deferred taxes 2,780 2,837 Excess tax benefit from
stock-based compensation (2,532 ) (5,539 ) Amortization of
held-to-maturity securities 1,173 1,234 Gain on acquisition - (344
) Loss on impairment of assets 455 - Other (1,541 ) - Changes in
operating assets and liabilities
7,665
(6,353 ) Net cash provided by
operating activities
74,967
58,557 Investing activities
Purchases of property and equipment (33,616 ) (44,362 )
Acquisitions, net of cash acquired - (5,032 ) Purchases of
marketable securities (89,315 ) (66,393 ) Proceeds from sales and
maturities of marketable securities
62,176
52,193 Net cash used in investing
activities
(60,755 )
(63,594 ) Financing
activities Payments on debt - (152 ) Acquisition-related
contingent consideration (400 ) (1,400 ) Proceeds from exercises of
stock options and other 5,715 6,251 Excess tax benefit from
stock-based compensation
2,532
5,539 Net cash provided by financing activities
7,847 10,238
Effect of exchange rate changes on cash and cash equivalents
(917 ) (877
) Net increase in cash and cash equivalents
21,142 4,324
Cash and cash equivalents, beginning of period
47,653 43,329
Cash and cash equivalents, end of period $
68,795 $ 47,653
Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Net Income per Share
(In thousands, except share and per share amounts)
(Unaudited) Three Months Ended
Year Ended December 31,
December 31,
2016
2015
2016
2015
Non-GAAP net income, adjusted for
stock-based compensation expense, amortization expense, unrealized
(gain) loss on foreign currency, gain on acquisition and
acquisition costs, impairment on assets and charges related to the
exit of facilities
GAAP net income $ 9,372 $ 11,993 $ 42,707 $ 46,514 Add back:
Stock-based compensation expense 1,515 1,567 6,775 6,082
Amortization expense 163 186 683 746 Impairment on assets - - 455 -
Facilities-related charges 222 - 1,373 - Acquisition costs - 343 -
915 Unrealized (gain) loss on foreign currency 217 43 (1,243 ) 254
Gain on acquisition
-
(344 ) -
(344 ) Total adjustments 2
2,117 1,795
8,043 7,653 Income
tax benefits on adjustments1
(646
) (417 )
(3,139 ) (2,240
) Non-GAAP net income
$
10,843 $ 13,371
$ 47,611 $
51,927 Non-GAAP net income per
share: Basic
$ 0.41 $
0.51 $ 1.81
$ 2.00 Diluted
$
0.41 $ 0.50
$ 1.79 $
1.97 Shares used to compute non-GAAP net
income per share: Basic 26,457,302 26,164,340 26,365,173 26,005,858
Diluted 26,609,929 26,465,043 26,564,639 26,320,284
1 For the three
months ended December 31, 2016 and 2015, income tax effects were
calculated reflecting an effective GAAP tax rate of 37.3% and
30.1%, respectively, and an effective non-GAAP tax rate of 36.4%
and 29.5%, respectively. For the year ended December 31, 2016 and
2015, income tax effects were calculated reflecting an effective
GAAP tax rate of 33.4% and 31.5%, respectively, and an effective
non-GAAP tax rate of 34.1% and 31.2%, respectively. The difference
between our GAAP and non-GAAP tax rate for the three months and
year ended December 31, 2016 was primarily due to the tax effect of
stock-based compensation expense, amortization expense, unrealized
gain on foreign currency, impairment on assets and charges related
to the exit of facilities. The difference between our GAAP and
non-GAAP tax rate for the three months and year ended December 31,
2015 was primarily due to stock-based compensation expense,
amortization expense, unrealized loss on foreign currency, gain on
acquisition and acquisition costs. 2 Stock-based
compensation expense, amortization expense, unrealized (gain) loss
on foreign currency, gain on acquisition and acquisition costs,
impairment on assets and charges related to the exit of facilities
were included in the following GAAP consolidated statement of
operations categories:
Three Months Ended Year
Ended December 31, December
31,
2016
2015
2016
2015
Cost of revenue $ 318 $ 135 $ 1,318 $ 513 Marketing and sales 234
279 974 1,074 Research and development 312 318 1,396 1,285 General
and administrative 1,036 1,364 5,598 4,871 Other income (expense),
net
217 (301
) (1,243 )
(90 ) Total adjustments
$
2,117 $ 1,795
$ 8,043 $
7,653 Proto Labs, Inc.
Reconciliation of GAAP to Non-GAAP Operating Margin (In
thousands) (Unaudited) Three Months
Ended Year Ended December 31,
December 31,
2016
2015
2016
2015
Revenue $ 72,353 $ 73,759 $ 298,055 $ 264,106 Income from
operations
14,831 16,557
61,767 67,149 GAAP
operating margin 20.5% 22.4% 20.7% 25.4% Add back: Stock-based
compensation expense 1,515 1,567 6,775 6,082 Amortization expense
163 186 683 746 Impairment on assets - - 455 - Facilities-related
charges 222 - 1,373 - Acquisition costs
-
343 -
915 Total adjustments
1,900
2,096 9,286
7,743
Non-GAAP income from operations adjusted
for stock-based compensation expense, amortization expense,
impairment on assets, facilities-related charges and acquisition
costs
$ 16,731 $
18,653 $ 71,053
$ 74,892 Non-GAAP operating margin 23.1%
25.3% 23.8% 28.4%
Proto Labs, Inc.
Comparison of GAAP to Non-GAAP Revenue Growth (In
thousands) (Unaudited) Three Months
Ended % Change Year Ended
% Change December 31,
%
Constant December 31,
%
Constant
2016
2015
Change
Currencies1
2016
2015
Change
Currencies1 Revenues United
States $ 54,566 $ 53,911 1.2 % 1.2 % $ 223,930 $ 208,017 7.6 % 7.6
% Europe 14,847 17,271 -14.0 % -8.2 % 63,365 47,433 33.6 % 38.8 %
Japan
2,940 2,577
14.1 % 2.4 %
10,760 8,656
24.3 % 11.1 %
Total Revenue
$ 72,353 $
73,759 -1.9 %
-1.0 % $
298,055 $ 264,106
12.9 % 13.4 %
1 Revenue
growth for the three-month and year-ended periods ended December
31, 2016 has been recalculated using 2015 foreign currency exchange
rates in effect during comparable periods to provide information
useful in evaluating the underlying business trends excluding the
impact of changes in foreign currency exchange rates.
Year
Ended
% Change
December 31,
%
Constant
2016
2015
Change 2
Currencies2
Revenues United States $ 223,930 $ 208,017 7.6 % 7.6 % Europe
49,719 47,433 4.8 % 10.0 % Japan
10,760
8,656 24.3 %
11.1 % Total Revenue
$
284,409 $ 264,106
7.7 % 8.2 %
2
Revenue growth for the year ended December 31, 2016 has been
recalculated to exclude revenue earned from our acquisition of
Alphaform for the nine months ended September 30, 2016, and using
2015 foreign currency exchange rates in effect during comparable
periods to provide information useful in evaluating the underlying
business trends excluding the impact of acquired revenue and
changes in foreign currency exchange rates.
Three Months
Ended December 31,
%
2016
2015
Change 3
Revenues Injection Molding $ 41,598 $ 43,865 -5.2 % CNC Machining
20,897 19,581 6.7 % 3D Printing 9,788 8,398 16.6 % Other
70 454 -84.6
% Total Revenue
$ 72,353
$ 72,298 0.1 %
3
Revenue growth for the three months ended December 31, 2016 has
been recalculated to exclude revenue earned from unprofitable
Alphaform 3D Printing contracts and discontinued non-core resin
resale business included in Other above.
Proto Labs, Inc. Revenue by Geography - Based on
Shipping Location (In thousands) (Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2016
2015
2016
2015
Revenues Domestic United States $ 49,907 $ 49,709 $ 208,002 $
194,065 International Europe 14,847 17,271 63,365 47,433 Japan
2,940 2,577 10,760 8,656 United States
4,659
4,202 15,928
13,952 Total international
22,446
24,050 90,053
70,041 Total revenue
$
72,353 $ 73,759
$ 298,055 $
264,106 Proto Labs, Inc.
Product Developer Information (Unaudited)
Three Months Ended Year Ended
December 31, December 31, 2016
2015 2016 2015 Unique product
developers and engineers served
14,046
12,414 31,457 27,235
Note: the information above includes
unique product developers and engineers who purchased our 3D
Printed products in the United States and Europe through our
web-based customer interface. The information does not include 3D
Printing and Injection Molding customers resulting from the
Alphaform acquisition who do not utilize our web-based customer
interface.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170209005516/en/
Proto Labs, Inc.Investor Relations:John Way,
763-479-7726john.way@protolabs.comorJenifer Kirtland,
408-656-9496jkirtland@evcgroup.comorMedia Relations:Bill Dietrick,
763-479-7664bill.dietrick@protolabs.com
Proto Labs (NYSE:PRLB)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Proto Labs (NYSE:PRLB)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024