3D Systems Announces Final 2023 Financial Results and Dates for Q1 and Q2 2024 Earnings Releases
3D Systems (NYSE:DDD) announced its final 2023 financial results and plans to file its Annual Report on Form 10-K after market on August 13, 2024. Key points include:
1. No change in revenue ($488,069,000) but a slight improvement in net loss compared to preliminary results.
2. Significant filing delays and added costs due to extended close activities and audit procedures.
3. Higher G&A expenses for 2024, with external auditor fees and outside services expected to total over $9 million.
4. Plans to release Q1'24 results around August 19, 2024, and Q2'24 results the week of August 26, 2024.
5. Transition of independent audit firm began in Q1 2024, with substantial improvement in operating expenses expected from Q4.
3D Systems (NYSE:DDD) ha annunciato i risultati finanziari finali per il 2023 e i piani per presentare il proprio Rapporto Annuale sul modulo 10-K dopo il mercato il 13 agosto 2024. I punti chiave includono:
1. Nessuna variazione nei ricavi ($488.069.000) ma un lieve miglioramento della perdita netta rispetto ai risultati preliminari.
2. Ritardi significativi nella presentazione e costi aggiuntivi a causa delle attività di chiusura estese e delle procedure di audit.
3. Aumento delle spese generali e amministrative per il 2024, con i costi degli auditor esterni e dei servizi esterni che si prevede supereranno i $9 milioni.
4. Piani per rilasciare i risultati del Q1'24 intorno al 19 agosto 2024 e i risultati del Q2'24 nella settimana del 26 agosto 2024.
5. Transizione della società di audit indipendente iniziata nel Q1 2024, con un significativo miglioramento delle spese operative atteso a partire dal Q4.
3D Systems (NYSE:DDD) anunció sus resultados financieros finales para 2023 y planes para presentar su Informe Anual en el formulario 10-K después del mercado el 13 de agosto de 2024. Los puntos clave incluyen:
1. Sin cambios en los ingresos ($488,069,000) pero una leve mejora en la pérdida neta en comparación con los resultados preliminares.
2. Retrasos significativos en la presentación y costos adicionales debido a actividades de cierre extendidas y procedimientos de auditoría.
3. Aumento de gastos generales y administrativos para 2024, con honorarios de auditores externos y servicios externos que se espera superen los $9 millones.
4. Planes para divulgar los resultados del Q1'24 alrededor del 19 de agosto de 2024 y los resultados del Q2'24 la semana del 26 de agosto de 2024.
5. Transición de la firma de auditoría independiente iniciada en el Q1 2024, con una mejora sustancial en los gastos operativos esperada a partir del Q4.
3D Systems (NYSE:DDD)는 2023년 최종 재무 결과를 발표하고 2024년 8월 13일 시장 종료 후에 10-K 양식의 연례 보고서를 제출할 계획이라고 발표했습니다. 주요 사항은 다음과 같습니다:
1. 수익 변화 없음 ($488,069,000), 그러나 초기 결과에 비해 순손실이 약간 개선되었습니다.
2. 신청 지연 및 추가 비용은 연장된 마감 활동과 감사 절차로 인해 발생했습니다.
3. 2024년 일반 관리비 증가, 외부 감사인 수수료 및 외부 서비스 비용이 $900만 이상이 될 것으로 예상됩니다.
4. Q1'24 결과를 2024년 8월 19일경에 발표할 계획이며, Q2'24 결과는 2024년 8월 26일 주에 발표할 예정입니다.
5. 독립 감사 회사의 전환은 2024년 Q1에 시작되었으며, Q4부터 운영 비용의 상당한 개선이 예상됩니다.
3D Systems (NYSE:DDD) a annoncé ses résultats financiers finaux pour 2023 et prévoit de soumettre son Rapport Annuel sur le formulaire 10-K après la clôture du marché le 13 août 2024. Les points clés incluent :
1. Aucun changement dans les revenus (488 069 000 $), mais une légère amélioration de la perte nette par rapport aux résultats préliminaires.
2. Délai de dépôt significatif et coûts supplémentaires dus aux activités de clôture prolongées et aux procédures d’audit.
3. Augmentation des frais de G&A pour 2024, avec des frais d’auditeurs externes et des services extérieurs qui devraient totaliser plus de 9 millions de dollars.
4. Plans pour publier les résultats du Q1'24 vers le 19 août 2024 et les résultats du Q2'24 la semaine du 26 août 2024.
5. Transition de la société d'audit indépendante débutée au Q1 2024, avec une amélioration substantielle des dépenses opérationnelles attendue à partir du Q4.
3D Systems (NYSE:DDD) gab die endgültigen Finanzdaten für 2023 bekannt und plant, seinen Jahresbericht in Form von 10-K nach Marktschluss am 13. August 2024 einzureichen. Wichtige Punkte sind:
1. Keine Veränderung der Einnahmen ($488.069.000), aber eine leichte Verbesserung des Nettoverlusts im Vergleich zu den vorläufigen Ergebnissen.
2. Signifikante Verzögerungen bei der Einreichung und zusätzliche Kosten aufgrund verlängerter Abschlussarbeiten und Prüfverfahren.
3. Höhere G&A-Kosten für 2024, wobei die Gebühren für externe Prüfer und externe Dienstleistungen voraussichtlich über 9 Millionen Dollar liegen werden.
4. Pläne zur Veröffentlichung der Q1'24 Ergebnisse um den 19. August 2024 und der Q2'24 Ergebnisse in der Woche vom 26. August 2024.
5. Übergang der unabhängigen Wirtschaftsprüfungsgesellschaft begann im Q1 2024, mit erheblichen Einsparungen bei den Betriebskosten, die ab dem Q4 erwartet werden.
- No change in reported revenue ($488,069,000) for 2023
- Slight improvement in net loss compared to preliminary results
- No restatement of prior years' results required
- Expects substantial improvement in operating expenses beginning in Q4 2024
- Significant filing delays and added costs due to extended close activities and audit procedures
- Higher G&A expenses for 2024, with external auditor fees and outside services expected to total over $9 million
- Operating loss of $406,004,000 for the year ended December 31, 2023
- Net loss attributable to 3D Systems of $362,688,000 for 2023
- Non-GAAP gross profit margin decreased from 41.1% to 40.6% for 2023
Insights
3D Systems' final 2023 financial results reveal some concerning trends. While revenue remained unchanged at
The projected increase in G&A expenses for 2024, with an additional
The delayed financial reporting and increased audit costs could negatively impact investor confidence in 3D Systems. The additive manufacturing industry faces challenges and this situation may put 3D Systems at a competitive disadvantage. The lack of revenue growth from 2023 preliminary to final results is concerning, suggesting stagnation in market demand or loss of market share.
However, the transition to a new audit firm and the company's commitment to transparency might help rebuild trust. Investors should watch for the upcoming Q1 and Q2 2024 results to assess whether 3D Systems can regain momentum in the rapidly evolving 3D printing market.
The extended audit procedures and significant filing delays raise serious questions about 3D Systems' internal controls and financial reporting processes. While no restatement of prior years' results was necessary, the reclassifications and adjustments to 2023 results indicate potential weaknesses in financial management.
The transition to a new independent audit firm is a positive step towards improving transparency and reliability. However, the substantial increase in audit-related costs for 2024 suggests underlying complexities that need addressing. Shareholders should scrutinize the company's efforts to enhance its financial reporting systems and governance practices in the coming quarters.
- Company plans to file its 2023 Annual Report on Form 10-K after market on August 13, 2024
- Significant filing delays and added costs were experienced due to extended close activities and related audit procedures in connection with the 2023 audit
- Final 2023 financial results yielded no change to revenue, and slight improvement in net loss, versus preliminary results filed on February 28, 2024
- No restatement of prior years’ results
- Consistent with prior disclosures, the planned transition of the company’s independent audit firm began in Q1 of 2024
- Company plans to release Q1’24 financial results on or about August 19, 2024 and Q2’24 financial results the week of August 26, 2024, followed by a call with investors to discuss results for the first half and outlook for the full year
ROCK HILL, S.C., Aug. 13, 2024 (GLOBE NEWSWIRE) -- 3D Systems (NYSE:DDD) (“the Company”) today announced that it plans to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “Form 10-K”) with the Securities and Exchange Commission (the “SEC”) after market.
In connection with the Company’s efforts as it concluded its audit, certain reclassifications and adjustments were made to its fourth quarter and full year 2023 financial results, originally furnished to the SEC on the Company’s Current Report on Form 8-K filed on February 28, 2024. Revisions relate primarily to a reduction in the impairment of goodwill, a decrease in interest income and changes in certain expenses. Supplemental financial statements and GAAP to non-GAAP reconciliations are included in the Appendix. Changes to originally reported information are shown below:
Unaudited | Three Months Ended December 31, 2023 | Year Ended December 31, 2023 | ||||||||||||||
(in thousands, expect per share data) | Preliminary - Previously Filed | Final - To Be Filed | Preliminary -Previously Filed | Final - To Be Filed | ||||||||||||
Revenue | $ | 114,848 | $ | 114,848 | $ | 488,069 | $ | 488,069 | ||||||||
Gross profit | $ | 46,348 | $ | 43,957 | $ | 198,812 | $ | 196,421 | ||||||||
Operating loss | $ | (335,594 | ) | $ | (327,295 | ) | $ | (414,303 | ) | $ | (406,004 | ) | ||||
Net loss attributable to 3D Systems Corporation | $ | (300,412 | ) | $ | (292,668 | ) | $ | (370,432 | ) | $ | (362,688 | ) | ||||
Diluted loss per share | $ | (2.30 | ) | $ | (2.25 | ) | $ | (2.85 | ) | $ | (2.79 | ) | ||||
Non-GAAP measures for year-over-year comparisons (1) | ||||||||||||||||
Non-GAAP gross profit margin | 41.9 | % | 39.8 | % | 41.1 | % | 40.6 | % | ||||||||
Adjusted EBITDA | $ | (12,260 | ) | $ | (13,993 | ) | $ | (24,525 | ) | $ | (26,258 | ) | ||||
Non-GAAP diluted loss per share | $ | (0.11 | ) | $ | (0.13 | ) | $ | (0.26 | ) | $ | (0.28 | ) |
(1) See “Presentation of Information in this Press Release” below for a description, and the Appendix for the reconciliation of non-GAAP measurements to the most closely comparable GAAP measure.
The Company also announced that it expects general and administrative (G&A) operating expenses for 2024 to be higher than original estimates, driven by external auditor fees and outside services related to the completion of the 2023 Form 10-K. These fees incurred by the Company, while transitory in nature, are expected to total over
The Company plans to release its financial results for the first quarter 2024 on or about August 19, 2024 in conjunction with the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 with the SEC. In addition, the Company expects to release financial results for the second quarter 2024 during the week of August 26, 2024. Following its second quarter earnings release, the Company will host a conference call and simultaneous webcast to discuss its results for first half 2024 and outlook for the remainder of year.
About 3D Systems
More than 35 years ago, 3D Systems brought the innovation of 3D printing to the manufacturing industry. Today, as the leading additive manufacturing solutions partner, we bring innovation, performance, and reliability to every interaction – empowering our customers to create products and business models never before possible. Thanks to our unique offering of hardware, software, materials, and services, each application-specific solution is powered by the expertise of our application engineers who collaborate with customers to transform how they deliver their products and services. 3D Systems’ solutions address a variety of advanced applications in healthcare and industrial markets such as medical and dental, aerospace & defense, automotive, and durable goods. More information on the Company is available at www.3DSystems.com.
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 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 many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and 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” and “Risk Factors” in the Company’s periodic filings with the SEC, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or revise any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise, except as required by law.
Presentation of Information in this Press Release
3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP diluted income (loss) per share, and Adjusted EBITDA. These non-GAAP measures exclude certain items that management does not view as part of 3D Systems’ core results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into underlying business trends and results and provide meaningful information regarding the comparison of period-over-period results. Additionally, management uses the non-GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. 3D Systems’ non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be calculated in the same manner as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.
To calculate the non-GAAP measures, 3D Systems excludes the impact of the following items:
- amortization of intangible assets, a non-cash expense, as 3D Systems’ intangible assets were primarily acquired in connection with business combinations;
- costs incurred in connection with acquisitions and divestitures, such as legal, consulting and advisory fees;
- stock-based compensation expenses, a non-cash expense;
- charges related to restructuring and cost optimization plans, impairment charges, including goodwill, and divestiture gains or losses;
- certain compensation expense related to the 2021 Volumetric acquisition; and
- costs, including legal fees, related to significant or unusual litigation matters.
Amortization of intangibles and acquisition and divestiture-related costs are excluded from non-GAAP measures as the timing and magnitude of business combination transactions are not predictable, can vary significantly from period to period and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition. Amortization of intangible assets will recur in future periods until such intangible assets have been fully amortized. While intangible assets contribute to the company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the company’s products or services. Additionally, intangible assets amortization expense typically fluctuates based on the size and timing of the company’s acquisition activity. Accordingly, the company believes excluding the amortization of intangible assets enhances the company’s and investors’ ability to compare the company’s past financial performance with its current performance and to analyze underlying business performance and trends. Although stock-based compensation is a key incentive offered to certain of our employees, the expense is non-cash in nature, and we continue to evaluate our business performance excluding stock-based compensation; therefore, it is excluded from non-GAAP measures. Stock-based compensation expenses will recur in future periods. Charges related to restructuring and cost optimization plans, impairment charges, including goodwill, divestiture gains or losses, and the costs, including legal fees, related to significant or unusual litigation matters are excluded from non-GAAP measures as the frequency and magnitude of these activities may vary widely from period to period. Additionally, impairment charges, including goodwill, are non-cash. Furthermore, the company believes the costs, including legal fees, related to significant or unusual litigation matters are not indicative of our core business' operations. Finally, 3D Systems excludes contingent consideration recorded as compensation expense related to the 2021 Volumetric acquisition from non-GAAP measures as management evaluates financial performance excluding this expense, which is viewed by management as similar to acquisition consideration.
The matters discussed above are tax effected, as applicable, in calculating non-GAAP diluted income (loss) per share.
Adjusted EBITDA, defined as net income, plus income tax (provision) benefit, interest and other income (expense), net, stock-based compensation expense, amortization of intangible assets, depreciation expense, and other non-GAAP adjustments, all as described above, is used by management to evaluate performance and helps measure financial performance period-over-period.
A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules.
3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP gross profit margin, Adjusted EBITDA, and non-GAAP operating expense to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including litigation costs, acquisition expenses, stock-based compensation expense, intangible assets amortization expense, restructuring expenses, and goodwill impairment charges are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.
3D Systems Corporation Unaudited Consolidated Balance Sheets December 31, 2023 and December 31, 2022 | |||||||
(in thousands, except par value) | December 31, 2023 | December 31, 2022 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 331,525 | $ | 388,134 | |||
Short-term investments | — | 180,603 | |||||
Accounts receivable, net of reserves — | 101,497 | 93,886 | |||||
Inventories | 152,188 | 137,832 | |||||
Prepaid expenses and other current assets | 42,612 | 33,790 | |||||
Total current assets | 627,822 | 834,245 | |||||
Property and equipment, net | 64,461 | 58,072 | |||||
Intangible assets, net | 62,724 | 90,230 | |||||
Goodwill | 116,082 | 385,312 | |||||
Operating lease right-of-use assets | 58,406 | 39,502 | |||||
Finance lease right-of-use assets | 12,174 | 3,244 | |||||
Long-term deferred income tax assets | 4,230 | 7,038 | |||||
Other assets | 44,761 | 28,970 | |||||
Total assets | $ | 990,660 | $ | 1,446,613 | |||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY | |||||||
Current liabilities: | |||||||
Current operating lease liabilities | $ | 9,924 | $ | 8,343 | |||
Accounts payable | 49,757 | 53,826 | |||||
Accrued and other liabilities | 49,460 | 56,264 | |||||
Customer deposits | 7,599 | 6,911 | |||||
Deferred revenue | 30,448 | 26,464 | |||||
Total current liabilities | 147,188 | 151,808 | |||||
Long-term debt, net of deferred financing costs | 319,356 | 449,510 | |||||
Long-term operating lease liabilities | 56,795 | 38,499 | |||||
Long-term deferred income tax liabilities | 5,162 | 7,631 | |||||
Other liabilities | 33,400 | 47,461 | |||||
Total liabilities | 561,901 | 694,909 | |||||
Commitments and contingencies (Note 23) | |||||||
Redeemable non-controlling interest | 2,006 | 1,760 | |||||
Stockholders’ equity: | |||||||
Common stock, | 134 | 131 | |||||
Additional paid-in capital | 1,577,519 | 1,547,597 | |||||
Accumulated deficit | (1,106,650 | ) | (743,962 | ) | |||
Accumulated other comprehensive loss | (44,250 | ) | (53,822 | ) | |||
Total stockholders’ equity | 426,753 | 749,944 | |||||
Total liabilities, redeemable non-controlling interest and stockholders’ equity | $ | 990,660 | $ | 1,446,613 |
3D Systems Corporation Unaudited Consolidated Statements of Operations Year Ended December 31, 2023, 2022 and 2021 | |||||||||||
Year Ended December 31, | |||||||||||
(in thousands, except per share amounts) | 2023 | 2022 | 2021 | ||||||||
Revenue: | |||||||||||
Products | $ | 328,731 | $ | 395,396 | $ | 428,742 | |||||
Services | 159,338 | 142,635 | 186,897 | ||||||||
Total revenue | 488,069 | 538,031 | 615,639 | ||||||||
Cost of sales: | |||||||||||
Products | 203,258 | 237,386 | 245,169 | ||||||||
Services | 88,390 | 86,412 | 106,692 | ||||||||
Total cost of sales | 291,648 | 323,798 | 351,861 | ||||||||
Gross profit | 196,421 | 214,233 | 263,778 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 210,172 | 244,181 | 227,697 | ||||||||
Research and development | 89,466 | 87,071 | 69,150 | ||||||||
Impairments of goodwill and intangible assets | 302,787 | — | — | ||||||||
Total operating expenses | 602,425 | 331,252 | 296,847 | ||||||||
Loss from operations | (406,004 | ) | (117,019 | ) | (33,069 | ) | |||||
Interest and other income (expense), net | 43,692 | (3,790 | ) | 352,609 | |||||||
(Loss) income before income taxes | (362,312 | ) | (120,809 | ) | 319,540 | ||||||
Benefit (provision) for income taxes | 641 | (2,140 | ) | 2,512 | |||||||
Loss on equity method investment, net of income taxes | (1,282 | ) | — | — | |||||||
Net (loss) income before redeemable non-controlling interest | (362,953 | ) | (122,949 | ) | 322,052 | ||||||
Less: net loss attributable to redeemable non-controlling interest | (265 | ) | (238 | ) | — | ||||||
Net (loss) income attributable to 3D Systems Corporation | $ | (362,688 | ) | $ | (122,711 | ) | $ | 322,052 | |||
Net (loss) income per common share | |||||||||||
Basic | $ | (2.79 | ) | $ | (0.96 | ) | $ | 2.62 | |||
Diluted | $ | (2.79 | ) | $ | (0.96 | ) | $ | 2.55 | |||
Weighted average shares outstanding: | |||||||||||
Basic | 129,944 | 127,818 | 122,867 | ||||||||
Diluted | 129,944 | 127,818 | 126,334 |
3D Systems Corporation Unaudited Consolidated Statements of Operations Three Months Ended December 31, 2023, 2022 and 2021 | |||||||||||
Three Months Ended December 31, | |||||||||||
(in thousands, except per share amounts) | 2023 | 2022 | 2021 | ||||||||
Revenue: | |||||||||||
Products | $ | 74,763 | $ | 94,734 | $ | 117,572 | |||||
Services | 40,085 | 37,998 | 33,298 | ||||||||
Total revenue | 114,848 | 132,732 | 150,870 | ||||||||
Cost of sales: | |||||||||||
Products | 49,816 | 55,541 | 64,918 | ||||||||
Services | 21,075 | 22,561 | 19,734 | ||||||||
Total cost of sales | 70,891 | 78,102 | 84,652 | ||||||||
Gross profit | 43,957 | 54,630 | 66,218 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 59,549 | 58,783 | 50,897 | ||||||||
Research and development | 22,513 | 23,891 | 19,163 | ||||||||
Impairments of goodwill and intangible assets | 289,190 | — | — | ||||||||
Total operating expenses | 371,252 | 82,674 | 70,060 | ||||||||
Loss from operations | (327,295 | ) | (28,044 | ) | (3,842 | ) | |||||
Interest and other income (expense), net | 34,001 | 1,666 | (1,787 | ) | |||||||
Loss before income taxes | (293,294 | ) | (26,378 | ) | (5,629 | ) | |||||
Benefit (provision) for income taxes | 1,045 | 771 | (571 | ) | |||||||
Loss on equity method investment, net of income taxes | (535 | ) | — | — | |||||||
Net loss before redeemable non-controlling interest | (292,784 | ) | (25,607 | ) | (6,200 | ) | |||||
Less: net loss attributable to redeemable non-controlling interest | (116 | ) | (54 | ) | — | ||||||
Net loss attributable to 3D Systems Corporation | $ | (292,668 | ) | $ | (25,553 | ) | $ | (6,200 | ) | ||
Net loss per share available to 3D Systems Corporation common stockholders | |||||||||||
Basic | $ | (2.25 | ) | $ | (0.20 | ) | $ | (0.05 | ) | ||
Diluted | $ | (2.25 | ) | $ | (0.20 | ) | $ | (0.05 | ) |
3D Systems Corporation Unaudited Consolidated Statements of Cash Flows | |||||||||||
Year Ended December 31, | |||||||||||
(in thousands) | 2023 | 2022 | 2021 | ||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income before redeemable non-controlling interest | $ | (362,953 | ) | $ | (122,949 | ) | $ | 322,052 | |||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation, amortization and accretion of debt discount | 36,053 | 38,686 | 34,623 | ||||||||
Stock-based compensation | 23,504 | 42,415 | 55,153 | ||||||||
Loss on short-term investments | 6 | 3,146 | — | ||||||||
Non-cash operating lease expense | 9,267 | 6,366 | 5,681 | ||||||||
Provision for inventory obsolescence and revaluation | 6,350 | 2,586 | (2,909 | ) | |||||||
Loss on hedge accounting de-designation and termination | — | — | 721 | ||||||||
Provision for bad debts | 595 | 562 | 232 | ||||||||
Loss (gain) on the disposition of businesses, property, equipment and other assets | 6 | 104 | (350,846 | ) | |||||||
Gain on debt extinguishment | (32,181 | ) | — | — | |||||||
Benefit for deferred income taxes and reserve adjustments | (2,412 | ) | (2,518 | ) | (11,679 | ) | |||||
Loss on equity method investment | 1,282 | — | — | ||||||||
Impairments of assets | 304,698 | 4,095 | 1,676 | ||||||||
Changes in operating accounts: | |||||||||||
Accounts receivable | (6,186 | ) | 8,144 | (11,912 | ) | ||||||
Inventories | (20,555 | ) | (51,082 | ) | 7,866 | ||||||
Prepaid expenses and other current assets | (7,961 | ) | 8,229 | (8,106 | ) | ||||||
Accounts payable | (5,526 | ) | (3,787 | ) | 27,159 | ||||||
Deferred revenue and customer deposits | 1,245 | (6,947 | ) | (3,325 | ) | ||||||
Accrued and other liabilities | (12,933 | ) | 10,702 | (12,389 | ) | ||||||
All other operating activities | (12,994 | ) | (7,773 | ) | (5,850 | ) | |||||
Net cash (used in) provided by operating activities | (80,695 | ) | (70,021 | ) | 48,147 | ||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (27,183 | ) | (20,907 | ) | (18,791 | ) | |||||
Purchases of short-term investments | — | (384,388 | ) | — | |||||||
Sales and maturities of short-term investments | 180,925 | 200,314 | — | ||||||||
Proceeds from sale of assets and businesses, net of cash sold | 194 | 325 | 421,485 | ||||||||
Acquisitions and other investments, net of cash acquired | (29,152 | ) | (103,699 | ) | (139,685 | ) | |||||
Other investing activities | — | — | (2,454 | ) | |||||||
Net cash provided by (used in) investing activities | 124,784 | (308,355 | ) | 260,555 | |||||||
Cash flows from financing activities: | |||||||||||
Proceeds from borrowings | — | — | 460,000 | ||||||||
Debt issuance costs | — | — | (13,466 | ) | |||||||
Repayment of borrowings/long-term debt | (100,614 | ) | — | (21,392 | ) | ||||||
Purchase of non-controlling interests | — | (2,300 | ) | (6,300 | ) | ||||||
Taxes paid related to net-share settlement of equity awards | (5,211 | ) | (10,864 | ) | (12,619 | ) | |||||
Other financing activities | (644 | ) | (651 | ) | (423 | ) | |||||
Net cash (used in) provided by financing activities | (106,469 | ) | (13,815 | ) | 405,800 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3,516 | (5,804 | ) | (9,243 | ) | ||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (58,864 | ) | (397,995 | ) | 705,259 | ||||||
Cash, cash equivalents and restricted cash at the beginning of the year a | 391,975 | 789,970 | 84,711 | ||||||||
Cash, cash equivalents and restricted cash at the end of the year a | $ | 333,111 | $ | 391,975 | $ | 789,970 |
(a) The amounts for cash and cash equivalents shown above include restricted cash of
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three Months Ended December 31, 2023 and 2022. | ||||||||||||||||||
Constant Currency Revenue (4) | ||||||||||||||||||
Three Months Ended December 31, | Constant Currency (1) | |||||||||||||||||
(in thousands) | 2023 | 2022 | $ Change | % Change | FX Effect (2) | % Change (3) | ||||||||||||
Healthcare Solutions | $ | 51,188 | $ | 60,694 | $ | (9,506 | ) | (15.7 | )% | $ | 454 | (16.4 | )% | |||||
Industrial Solutions | 63,660 | 72,038 | (8,378 | ) | (11.6 | )% | 1,196 | (13.3 | )% | |||||||||
Total revenue | $ | 114,848 | $ | 132,732 | $ | (17,884 | ) | (13.5 | )% | $ | 1,650 | (14.7 | )% |
(1) To assist in the analysis of the Company’s revenue trends, the Company estimated the impact of foreign exchange on year-over-year revenue growth by recasting revenue for the three months ended December 31, 2023 by applying the foreign exchange rates used to translate 2022 non-US functional currency revenue to 2023 non-US functional currency revenue.
(2) Represents the estimated impact on "as reported" revenue due to changes in foreign currency exchange rates
(3) Represents the % increase or decrease in revenue excluding the estimated "FX effect"
(4)Amounts in table may not foot due to rounding
Year Ended December 31, | Constant Currency (1) | |||||||||||||||||
(in thousands) | 2023 | 2022 | $ Change | % Change | FX Effect (2) | % Change (3) | ||||||||||||
Healthcare Solutions | $ | 213,216 | $ | 260,988 | $ | (47,772 | ) | (18.3 | )% | $ | 817 | (18.6 | )% | |||||
Industrial Solutions | 274,853 | 277,043 | (2,190 | ) | (0.8 | )% | 971 | (1.1 | )% | |||||||||
Total revenue | $ | 488,069 | $ | 538,031 | $ | (49,962 | ) | (9.3 | )% | $ | 1,788 | (9.6 | )% |
(1) To assist in the analysis of the Company’s revenue trends, the Company estimated the impact of foreign exchange on year-over-year revenue growth by recasting revenue for the year ended December 31, 2023 by applying the foreign exchange rates used to translate 2022 non-US functional currency revenue to 2023 non-US functional currency revenue.
(2) Represents the estimated impact on "as reported" revenue due to changes in foreign currency exchange rates
(3) Represents the % increase or decrease in revenue excluding the estimated "FX effect"
(4)Amounts in table may not foot due to rounding
Gross Profit and Gross Profit Margin (1) | ||||||||||||
Three Months Ended December 31, | ||||||||||||
(in thousands) | 2023 | 2022 | ||||||||||
Gross Profit | Gross Profit Margin (2) | Gross Profit | Gross Profit Margin (2) | |||||||||
GAAP | $ | 43,957 | 38.3 | % | $ | 54,630 | 41.2 | % | ||||
Amortization expense included in Cost of sales | 382 | (398 | ) | |||||||||
Restructuring expense included in Cost of sales | 1,427 | — | ||||||||||
Non-GAAP | $ | 45,766 | 39.8 | % | $ | 54,232 | 40.9 | % |
(1) Amounts in table may not foot due to rounding
(2) Calculated as non-GAAP gross profit as a percentage of total revenue.
Year Ended December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Gross Profit | Gross Profit Margin (2) | Gross Profit | Gross Profit Margin(2) | ||||||||
GAAP | $ | 196,421 | 40.2 | % | $ | 214,233 | 39.8 | % | |||
Amortization expense included in Cost of sales | 506 | 14 | |||||||||
Restructuring expense included in Cost of sales | 1,427 | — | |||||||||
Non-GAAP | $ | 198,354 | 40.6 | % | $ | 214,247 | 39.8 | % |
(1) Amounts in table may not foot due to rounding
(2) Calculated as non-GAAP gross profit as a percentage of total revenue.
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three and Twelve Months Ended December 31, 2023 and 2022 | |||||||||||||||
Net Loss to Adjusted EBITDA (1) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Net loss attributable to 3D Systems Corporation | $ | (292,668 | ) | $ | (25,553 | ) | $ | (362,688 | ) | $ | (122,711 | ) | |||
Interest income, net | (3,092 | ) | (2,522 | ) | (16,210 | ) | (6,541 | ) | |||||||
(Benefit) provision for income taxes | (1,045 | ) | (771 | ) | (641 | ) | 2,140 | ||||||||
Depreciation expense | 5,656 | 5,104 | 21,346 | 21,096 | |||||||||||
Amortization expense | 2,391 | 5,207 | 12,067 | 15,480 | |||||||||||
Stock-based compensation expense | 8,361 | 10,980 | 23,504 | 42,489 | |||||||||||
Acquisition and divestiture-related expense | (1,202 | ) | 2,978 | (1,070 | ) | 12,360 | |||||||||
Legal expense | 3,174 | (1,418 | ) | 8,053 | 19,062 | ||||||||||
Restructuring expense | 4,774 | 381 | 11,487 | 733 | |||||||||||
Net loss attributable to redeemable non-controlling interest | (116 | ) | (54 | ) | (265 | ) | (238 | ) | |||||||
Loss (income) on equity method investment, net of income taxes | 535 | — | 1,282 | — | |||||||||||
Goodwill and other assets impairment charges | 290,148 | 3 | 304,359 | 18 | |||||||||||
Gain on repurchase of debt | (32,181 | ) | — | (32,181 | ) | — | |||||||||
Other non-operating expense | 1,272 | 857 | 4,699 | 10,331 | |||||||||||
Adjusted EBITDA | $ | (13,993 | ) | $ | (4,808 | ) | $ | (26,258 | ) | $ | (5,781 | ) |
(1) Amounts in table may not foot due to rounding
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three and Twelve Months Ended December 31, 2023 and 2022 | |||||||||||||||
Non-GAAP Diluted Loss per Share (1)(2) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
(in dollars) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Diluted loss per share | $ | (2.25 | ) | $ | (0.20 | ) | $ | (2.79 | ) | $ | (0.96 | ) | |||
Amortization expense | 0.02 | 0.04 | 0.09 | 0.12 | |||||||||||
Stock-based compensation expense | 0.06 | 0.09 | 0.18 | 0.33 | |||||||||||
Acquisition and divestiture-related expense | (0.01 | ) | 0.02 | (0.01 | ) | 0.10 | |||||||||
Legal expense | 0.03 | (0.01 | ) | 0.06 | 0.17 | ||||||||||
Restructuring expense | 0.04 | — | 0.09 | 0.01 | |||||||||||
Goodwill and other assets impairment charges | 2.23 | — | 2.35 | — | |||||||||||
Gain on repurchase of debt | (0.25 | ) | — | (0.25 | ) | — | |||||||||
Non-GAAP diluted loss per share | $ | (0.13 | ) | $ | (0.06 | ) | $ | (0.28 | ) | $ | (0.23 | ) |
(1) Amounts in table may not foot due to rounding
(2) Amounts in table are stated per share
FAQ
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