Record Quarterly Revenue of $117.5 million,
an increase of 2% over Q3 2018
Proto Labs, Inc. (NYSE: PRLB), a leading online and
technology-enabled, quick-turn, on-demand manufacturer, today
announced financial results for the third quarter ended September
30, 2019.
Third Quarter 2019 Highlights include:
- Revenue for the third quarter of 2019 was $117.5 million,
representing a 1.8 percent increase over revenue of $115.4 million
for the third quarter of 2018.
- The number of unique product developers and engineers served
totaled 21,471 in the third quarter of 2019, an increase of 3.3
percent over the third quarter of 2018.
- Net income for the third quarter of 2019 was $16.8 million, or
$0.62 per diluted share.
- Non-GAAP net income was $20.4 million, or $0.76 per diluted
share. See “Non-GAAP Financial Measures” below.
“Our business grew year-over-year in the third quarter in an
industrial environment that has continued to soften throughout
2019,” said Vicki Holt, President and Chief Executive Officer.
“Despite a weaker macro climate, our customer retention rate
remains high as we continue to delight our customers by expanding
and improving our industry-leading digital manufacturing
offer.”
Additional Third Quarter 2019 highlights include:
- Gross margin was 50.8 percent of revenue for the third quarter
of 2019, compared with 52.0 percent for the second quarter of
2019.
- GAAP operating margin was 18.1 percent of revenue for the third
quarter of 2019, compared to 16.9 percent for the second quarter of
2019.
- Non-GAAP operating margin was 21.6 percent of revenue for the
third quarter of 2019, compared to 20.6 percent for the second
quarter of 2019. See “Non-GAAP Financial Measures” below.
- EBITDA was $28.7 million, or 24.4 percent of revenue, for the
third quarter of 2019.
- Adjusted EBITDA was $32.4 million, or 27.5 percent of revenue,
for the third quarter of 2019. See “Non-GAAP Financial Measures”
below.
- Cash flow from operations was $28.9 million in the third
quarter of 2019.
- Cash and investments balance was $155.0 million at September
30, 2019.
- The Company repurchased $12.1 million, or 128,077 shares, of
common stock during the quarter.
“Our customers are taking a more cautious approach in 2019 in
general, including R&D projects, and that is reflected in our
financial results year-to-date,” said John Way, Chief Financial
Officer. “Our business continues to generate strong cash flows in
order to invest for future growth, as well as return capital to
shareholders in the form of stock repurchases.”
Non-GAAP Financial Measures
The company has included non-GAAP revenue growth that excludes
the impact of changes in foreign currency exchange rates
(collectively, “non-GAAP revenue growth”). Management believes
these metrics are useful in evaluating the underlying business
trends and ongoing operating performance of the company.
The company has included earnings before interest, taxes,
depreciation and amortization (“EBITDA”) and EBITDA, adjusted for
stock-based compensation expense, unrealized (gain) loss on foreign
currency, and disposal of businesses (collectively, “Adjusted
EBITDA”), in this press release to provide investors with
additional information regarding the company’s financial
results.
The company has included non-GAAP operating margin, adjusted for
stock-based compensation expense and amortization expense
(collectively, “non-GAAP operating margin”), in this press release
to provide investors with additional information regarding the
company’s financial results.
The company has included non-GAAP net income, adjusted for
stock-based compensation expense, amortization expense, unrealized
(gain) loss on foreign currency, and disposal of businesses
(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 reconciliations of GAAP to
non-GAAP net income, non-GAAP operating margin, non-GAAP revenue
growth and Adjusted EBITDA, the most directly comparable measures
calculated and presented in accordance with GAAP. These non-GAAP
measures 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
these non-GAAP measures 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 third
quarter 2019 financial results and fourth quarter outlook today,
October 24, 2019 at 8:30 a.m. ET. To access the call in the U.S.
please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at
least five minutes prior to the 8:30 a.m. start time. No
participant code is required. A presentation containing information
on the company’s third quarter 2019 financial results and fourth
quarter outlook will be available prior to the call. A simultaneous
webcast of the call and slide presentation will be available via
the investor relations section of the Protolabs website and the
following link: https://edge.media-server.com/mmc/p/mofpzm2m. A
replay will be available for 14 days following the call on the
investor relations section of the Protolabs website.
About Protolabs
Protolabs is the world's fastest digital manufacturing source
for rapid prototyping and on-demand production. The
technology-enabled company produces custom parts and assemblies in
as fast as one day with automated 3D printing, CNC machining, sheet
metal fabrication, and injection molding processes. Its digital
approach to manufacturing enables accelerated time to market,
reduces development and production costs, and minimizes risk
throughout the product life cycle. 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 Protolabs 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 Protolabs’ future results.
The forward-looking statements included in this press release are
made only as of the date hereof. Protolabs cannot guarantee future
results, levels of activity, performance or achievements.
Accordingly, you should not place undue reliance on these
forward-looking statements. Finally, Protolabs 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)
September 30,
December 31,
2019
2018
(Unaudited) Assets Current assets
Cash and cash equivalents
$
121,568
$
85,046
Short-term marketable securities
23,642
46,750
Accounts receivable, net
64,069
59,155
Inventory
9,448
10,087
Income taxes receivable
2,852
5,757
Prepaid expenses and other current assets
8,038
8,567
Total current assets
229,617
215,362
Property and equipment, net
252,579
228,001
Goodwill
128,752
128,752
Other intangible assets, net
18,258
19,850
Long-term marketable securities
9,783
23,579
Operating lease assets
12,008
-
Other long-term assets
3,902
3,441
Total assets
$
654,899
$
618,985
Liabilities and shareholders' equity
Current liabilities Accounts payable
$
18,668
$
17,411
Accrued compensation
12,926
18,130
Accrued liabilities and other
13,133
16,702
Current operating lease liabilities
3,364
-
Income taxes payable
6,717
491
Total current liabilities
54,808
52,734
Long-term operating lease liabilities
9,006
-
Long-term deferred tax liabilities
21,750
20,162
Other long-term liabilities
5,238
4,592
Shareholders' equity
564,097
541,497
Total liabilities and shareholders' equity
$
654,899
$
618,985
Proto Labs, Inc. Condensed Consolidated Statements of
Operations (In thousands, except share and per share
amounts) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2019
2018
2019
2018
Revenue Injection Molding
$
55,167
$
53,681
$
165,935
$
156,610
CNC Machining
40,219
40,845
116,979
115,364
3D Printing
15,898
13,845
45,644
39,418
Sheet Metal
5,280
6,452
15,777
19,002
Other
891
607
2,504
2,433
Total revenue
117,455
115,430
346,839
332,827
Cost of revenue
57,839
53,027
168,127
153,303
Gross profit
59,616
62,403
178,712
179,524
Operating expenses
Marketing and sales
17,604
16,818
55,466
50,947
Research and development
8,359
7,458
24,541
21,155
General and administrative
12,380
13,096
38,411
38,679
Total operating expenses
38,343
37,372
118,418
110,781
Income from operations
21,273
25,031
60,294
68,743
Other income, net
228
390
1,566
1,376
Income before income taxes
21,501
25,421
61,860
70,119
Provision for income taxes
4,709
4,484
13,391
12,817
Net income
$
16,792
$
20,937
$
48,469
$
57,302
Net income per share:
Basic
$
0.63
$
0.77
$
1.80
$
2.13
Diluted
$
0.62
$
0.77
$
1.79
$
2.10
Shares used to compute net income per
share: Basic
26,846,030
27,038,585
26,894,420
26,963,205
Diluted
27,005,341
27,337,886
27,072,873
27,268,311
Proto Labs, Inc. Condensed Consolidated Statements of
Cash Flows (In thousands) (Unaudited)
Nine Months Ended September 30,
2019
2018
Operating activities Net income
$
48,469
$
57,302
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
22,658
19,520
Stock-based compensation expense
9,738
7,986
Deferred taxes
1,599
1,770
Gain on sale of businesses
-
(671
)
Amortization of held-to-maturity securities
(5
)
336
Other
(133
)
160
Changes in operating assets and liabilities
1,453
(1,441
)
Net cash provided by operating activities
83,779
84,962
Investing activities Purchases of
property, equipment and other capital assets
(46,151
)
(61,898
)
Cash used for acquisitions, net of cash acquired
-
(90
)
Proceeds from sale of businesses
-
284
Purchases of other assets and investments
(4,000
)
(126
)
Purchases of marketable securities
(17,443
)
(41,384
)
Proceeds from maturities of marketable securities
54,352
44,721
Net cash used in investing activities
(13,242
)
(58,493
)
Financing activities Payments on debt
-
(5,000
)
Proceeds from exercises of stock options and other
2,486
7,269
Purchases of shares withheld for tax obligations
(2,420
)
(2,021
)
Repurchases of common stock
(33,521
)
-
Net cash (used in) provided by financing activities
(33,455
)
248
Effect of exchange rate changes on cash and cash equivalents
(560
)
(831
)
Net increase in cash and cash equivalents
36,522
25,886
Cash and cash equivalents, beginning of period
85,046
36,707
Cash and cash equivalents, end of period
$
121,568
$
62,593
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 Nine Months Ended
September 30, September 30,
2019
2018
2019
2018
Non-GAAP net income, adjusted for stock-based compensation expense,
amortization expense, unrealized (gain) loss
on foreign currency and disposal of businesses
GAAP net income
$
16,792
$
20,937
$
48,469
$
57,302
Add back: Stock-based compensation expense
3,212
2,952
9,738
7,986
Amortization expense
859
808
2,593
2,371
Unrealized (gain) loss on foreign currency
449
(101
)
391
147
Disposal of businesses
-
-
-
(671
)
Total adjustments 1
4,520
3,659
12,722
9,833
Income tax benefits on adjustments 2
(882
)
(1,213
)
(2,875
)
(4,574
)
Non-GAAP net income
$
20,430
$
23,383
$
58,316
$
62,561
Non-GAAP
net income per share: Basic
$
0.76
$
0.86
$
2.17
$
2.32
Diluted
$
0.76
$
0.86
$
2.15
$
2.29
Shares used to compute non-GAAP net
income per share: Basic
26,846,030
27,038,585
26,894,420
26,963,205
Diluted
27,005,341
27,337,886
27,072,873
27,268,311
1
Stock-based compensation expense, amortization expense, unrealized
(gain) loss on foreign currency and disposal of businesses were
included in the following GAAP consolidated statement of operations
categories:
Three Months Ended Nine Months
Ended September 30, September 30,
2019
2018
2019
2018
Cost of revenue
$
872
$
446
$
2,402
$
1,096
Marketing and sales
760
560
1,923
1,380
Research and development
560
419
1,486
1,109
General and administrative
1,879
2,335
6,520
6,772
Total operating expenses
3,199
3,314
9,929
9,261
Other income, net
449
(101
)
391
(524
)
Total adjustments
$
4,520
$
3,659
$
12,722
$
9,833
2 For the three- and nine-month periods
ended September 30, 2019 and 2018, income tax effects were
calculated using the effective tax rate for the relevant
jurisdictions. Our non-GAAP tax rates differ from our GAAP tax
rates due primarily to the mix of activity incurred in domestic and
foreign tax jurisdictions and removing effective tax rate benefits
from stock-based compensation activity in the quarter.
Proto
Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating
Margin (In thousands) (Unaudited)
Three Months Ended Nine Months
Ended September 30, September 30,
2019
2018
2019
2018
Revenue
$
117,455
$
115,430
$
346,839
$
332,827
Income from operations
21,273
25,031
60,294
68,743
GAAP operating margin
18.1
%
21.7
%
17.4
%
20.7
%
Add back: Stock-based compensation expense
3,212
2,952
9,738
7,986
Amortization expense
859
808
2,593
2,371
Total adjustments
4,071
3,760
12,331
10,357
Non-GAAP income from operations
$
25,344
$
28,791
$
72,625
$
79,100
Non-GAAP operating margin
21.6
%
24.9
%
20.9
%
23.8
%
Proto Labs, Inc. Reconciliation of GAAP Net Income to
EBITDA and Adjusted EBITDA (In thousands)
(Unaudited) Three
Months Ended Nine Months Ended September
30, September 30,
2019
2018
2019
2018
GAAP net income
$
16,792
$
20,937
$
48,469
$
57,302
Amortization expense
859
808
2,593
2,371
Depreciation expense
6,820
5,963
20,066
17,149
Interest income, net
(489
)
(475
)
(1,535
)
(1,063
)
Tax expense
4,709
4,484
13,391
12,817
EBITDA
28,691
31,717
82,984
88,576
Add back: Stock-based compensation expense
3,212
2,952
9,738
7,986
Unrealized (gain) loss on foreign currency
449
(101
)
391
147
Disposal of businesses
-
-
-
(671
)
Total adjustments
3,661
2,851
10,129
7,462
Adjusted EBITDA
$
32,352
$
34,568
$
93,113
$
96,038
Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue
Growth (In thousands) (Unaudited)
Three Months EndedSeptember 30, 2019 Three
MonthsEndedSeptember 30,2018 % %
ChangeConstant GAAP Adjustments1
Non-GAAP GAAP Change2
Currencies3 Revenues United
States
$
92,916
$
-
$
92,916
$
90,732
2.4
%
2.4
%
Europe
20,721
1,001
21,722
21,273
(2.6
%)
2.1
%
Japan
3,818
(140
)
3,678
3,425
11.5
%
7.4
%
Total Revenue
$
117,455
$
861
$
118,316
$
115,430
1.8
%
2.5
%
Nine
Months EndedSeptember 30, 2019 Nine MonthsEndedSeptember
30,2018 % % ChangeConstant
GAAP Adjustments1 Non-GAAP
GAAP Change2 Currencies3
Revenues United States
$
271,877
$
-
$
271,877
$
261,253
4.1
%
4.1
%
Europe
62,915
3,968
66,883
61,431
2.4
%
8.9
%
Japan
12,047
(19
)
12,028
10,143
18.8
%
18.6
%
Total Revenue
$
346,839
$
3,949
$
350,788
$
332,827
4.2
%
5.4
%
1 Revenue for the three- and nine-month
periods ended September 30, 2019 has been recalculated using 2018
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. 2 This column presents the percentage change from GAAP
revenue for the three- and nine-month periods ended September 30,
2018 to GAAP revenue for the three- and nine-month periods ended
September 30, 2019. 3 This column presents the percentage change
from GAAP revenue for the three- and nine-month periods ended
September 30, 2018 to non-GAAP revenue for the three- and
nine-month periods ended September 30, 2019 (as recalculated using
the foreign currency exchange rates in effect during the three- and
nine-month periods ended September 30, 2018) in order to provide a
constant-currency comparison.
Proto Labs, Inc. Product
Developer Information (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2019
2018
2019
2018
Unique product developers and engineers served
21,471
20,792
40,791
38,823
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191024005242/en/
Investor Relations Contact: Protolabs Dan Schumacher,
763-479-7240 Director of Investor Relations
daniel.schumacher@protolabs.com or Media Contact: Protolabs Sarah
Ekenberg, 763-479-7560 Marketing Manager, PR & Media
sarah.ekenberg@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