Materialise Reports Third Quarter 2022 Results
Materialise NV (NASDAQ:MTLS) reported Q3 2022 revenue of 58,288 kEUR, up 11.7% from 52,195 kEUR in Q3 2021. However, adjusted EBITDA fell to 5,072 kEUR from 9,739 kEUR, marking a significant decrease in profitability due to inflation and rising labor costs. Net profit dropped to 1,413 kEUR (0.02 EUR/share), down from 8,657 kEUR (0.15 EUR/share) a year earlier. Despite these challenges, the company anticipates full-year revenue growth of at least 10% and expects consolidated EBITDA between 20 mEUR and 25 mEUR for 2022.
- Total revenue for Q3 2022 increased by 11.7% year-over-year.
- Deferred revenue from software sales grew by 3,214 kEUR to 38,359 kEUR.
- Materialise Medical segment revenue rose 13.1% to 21,391 kEUR.
- Materialise Manufacturing segment revenue increased by 14.1% to 26,033 kEUR.
- Adjusted EBITDA decreased significantly to 5,072 kEUR from 9,739 kEUR.
- Net profit dropped to 1,413 kEUR from 8,657 kEUR.
- Overall EBITDA margin fell to 8.7% from 18.7% year-over-year.
- Gross profit margin decreased to 55.0% from 59.5% in the previous year.
LEUVEN,
Highlights – Third Quarter 2022
-
Total revenue increased
11.7% to 58,288 kEUR compared to 52,195 kEUR for the third quarter of 2021. -
Total deferred revenue from annual software sales and maintenance fees increased by 3,214 kEUR to 38,359 kEUR compared to
December 31, 2021 . - Adjusted EBITDA was 5,072 kEUR, compared to 9,739 kEUR for the 2021 period.
-
Net profit for the third quarter of 2022 was 1,413 kEUR, or
0.02 EUR per diluted share, compared to 8,657 kEUR, or0.15 EUR per diluted share, for the 2021 period.
Executive Chairman
Third Quarter 2022 Results
Total revenue for the third quarter of 2022 increased
Revenue from our
Revenue from our Materialise Medical segment increased
Revenue from our Materialise Manufacturing segment increased
Gross profit was 32,042 kEUR compared to 31,076 kEUR for the same period last year, while gross profit as a percentage of revenue decreased to
Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate,
Net other operating income increased to 1,166 kEUR from 355 kEUR for the third quarter of 2021.
Operating result amounted to (282) kEUR compared to 4,529 kEUR for the third quarter of 2021.
Net financial result was 2,173 kEUR compared to 4,203 kEUR for the third quarter of 2021.
The third quarter of 2022 contained income tax expenses of (478) kEUR, compared to (75) kEUR in the third quarter of 2021.
As a result of the above, net profit for the third quarter of 2022 was 1,413 kEUR, compared to 8,657 kEUR for the same period in 2021. Total comprehensive income for the third quarter of 2022, which includes exchange differences on translation of foreign operations, was 1,638 kEUR compared to 8,272 kEUR for the 2021 period.
At
Cash flow from operating activities for the third quarter of the year 2022 was 3,840 kEUR compared to 4,388 kEUR for the same period in 2021. Total capital expenditures for the third quarter of 2022 amounted to 9,441 kEUR.
Net shareholders’ equity at
2022 Guidance
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
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the third quarter of 2022 on
- 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.
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
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
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 ended
|
|
for the nine months ended
|
|||||||||||||
| In '000 | 2022 |
|
2022 |
|
2021(*) |
|
2022 |
|
2021(*) |
||||||
U.S.$ |
|
€ |
|
€ |
|
€ |
|
€ |
|||||||
| Revenue | 56,819 |
|
58,288 |
|
52,195 |
|
169,319 |
|
148,461 |
|
|||||
| Cost of Sales | (25,584 |
) |
(26,245 |
) |
(21,119 |
) |
(76,236 |
) |
(64,378 |
) |
|||||
| Gross Profit | 31,235 |
|
32,042 |
|
31,076 |
|
93,083 |
|
84,084 |
|
|||||
| Gross profit as % of revenue | 55.0 |
% |
55.0 |
% |
59.5 |
% |
55.0 |
% |
56.6 |
% |
|||||
| Research and development expenses | (9,078 |
) |
(9,313 |
) |
(6,602 |
) |
(26,074 |
) |
(19,982 |
) |
|||||
| Sales and marketing expenses | (14,815 |
) |
(15,198 |
) |
(12,413 |
) |
(44,841 |
) |
(35,730 |
) |
|||||
| General and administrative expenses | (8,754 |
) |
(8,980 |
) |
(7,885 |
) |
(26,089 |
) |
(23,449 |
) |
|||||
| Net other operating income (expenses) | 1,137 |
|
1,166 |
|
355 |
|
2,603 |
|
2,318 |
|
|||||
| Operating (loss) profit | (275 |
) |
(282 |
) |
4,529 |
|
(1,318 |
) |
7,239 |
|
|||||
| Financial expenses | (2,057 |
) |
(2,110 |
) |
2,334 |
|
(4,671 |
) |
(3,182 |
) |
|||||
| Financial income | 4,175 |
|
4,283 |
|
1,869 |
|
9,800 |
|
4,426 |
|
|||||
| Share in loss of joint venture | - |
|
- |
|
- |
|
- |
|
- |
|
|||||
| (Loss) profit before taxes | 1,843 |
|
1,891 |
|
8,732 |
|
3,812 |
|
8,483 |
|
|||||
| Income Taxes (*) | (466 |
) |
(478 |
) |
(75 |
) |
(1,377 |
) |
(101 |
) |
|||||
| Net (loss) profit for the period (*) | 1,377 |
|
1,413 |
|
8,657 |
|
2,435 |
|
8,382 |
|
|||||
| Net (loss) profit attributable to: | - |
|
|||||||||||||
| The owners of the parent | 1,385 |
|
1,421 |
|
8,660 |
|
2,457 |
|
8,386 |
|
|||||
| Non-controlling interest | (8 |
) |
(8 |
) |
(3 |
) |
(21 |
) |
(4 |
) |
|||||
| Earning per share attributable to owners of the parent | |||||||||||||||
| Basic (*) | 0.02 |
|
0.02 |
|
0.15 |
|
0.04 |
|
0.15 |
|
|||||
| Diluted (*) | 0.02 |
|
0.02 |
|
0.15 |
|
0.04 |
|
0.15 |
|
|||||
| Weighted average basic shares outstanding | 59,064 |
|
59,064 |
|
58,731 |
|
59,064 |
|
55,935 |
|
|||||
| Weighted average diluted shares outstanding | 59,089 |
|
59,089 |
|
58,944 |
|
59,099 |
|
56,206 |
|
|||||
| (*) | The year 2021 has been restated to reflect the final accounting of the business combination with RS Print. | ||||||
| Impact on the nine months ended |
|||||||
| The year 2021 has been restated to reflect the final accounting of the business combination with RS Print. | |||||||
| Impact on the three months ended |
|||||||
Consolidated statements of comprehensive income (Unaudited) |
|||||||||||||||
for the three months ended
|
|
for the nine months ended
|
|||||||||||||
| In 000€ | 2022 |
|
2022 |
|
2021(*) |
|
2022 |
|
2021(*) |
||||||
U.S.$ |
|
€ |
|
€ |
|
€ |
|
€ |
|||||||
| Net profit (loss) for the period (*) | 1,377 |
|
1,413 |
|
8,657 |
|
2,435 |
|
8,382 |
|
|||||
| Other comprehensive income | |||||||||||||||
| Recycling | |||||||||||||||
| Exchange difference on translation of foreign operations | 219 |
|
225 |
|
(385 |
) |
1,291 |
|
1,590 |
|
|||||
| Non-recycling | |||||||||||||||
| Fair value adjustments through OCI - Equity instruments | - |
|
- |
|
- |
|
(0 |
) |
48 |
|
|||||
| Other comprehensive income (loss), net of taxes | 219 |
|
225 |
|
(385 |
) |
1,291 |
|
1,638 |
|
|||||
| Total comprehensive income (loss) for the year, net of taxes | 1,596 |
|
1,638 |
|
8,272 |
|
3,726 |
|
10,020 |
|
|||||
| Total comprehensive income (loss) attributable to: | |||||||||||||||
| The owners of the parent | 1,604 |
|
1,646 |
|
8,275 |
|
3,748 |
|
10,023 |
|
|||||
| Non-controlling interests | (8 |
) |
(8 |
) |
(3 |
) |
(21 |
) |
(3 |
) |
|||||
| (*) | The year 2021 has been restated to reflect the final accounting of the business combination with RS Print. | |
| Impact on the nine months ended |
||
| The year 2021 has been restated to reflect the final accounting of the business combination with RS Print. | ||
| Impact on the three months ended |
Consolidated statement of financial position (Unaudited) |
||||||
As of
|
|
As of
|
||||
| In 000€ | 2022 |
|
2021 |
|||
| Assets | ||||||
| Non-current assets | ||||||
50,190 |
18,726 |
|||||
| Intangible assets | 38,710 |
31,668 |
||||
| Property, plant & equipment | 92,335 |
84,451 |
||||
| Right-of-Use assets | 8,520 |
9,054 |
||||
| Investments in joint ventures | - |
- |
||||
| Deferred tax assets | 217 |
227 |
||||
| Investments in convertible loans | 3,431 |
3,560 |
||||
| Investments in non-listed equity instruments | 399 |
399 |
||||
| Other non-current assets | 4,948 |
7,520 |
||||
| Total non-current assets | 198,750 |
155,605 |
||||
| Current assets | ||||||
| Inventories | 15,532 |
11,295 |
||||
| Trade receivables | 42,329 |
41,541 |
||||
| Other current assets | 8,374 |
8,940 |
||||
| Cash and cash equivalents | 150,621 |
196,028 |
||||
| Total current assets | 216,856 |
257,803 |
||||
| Total assets | 415,606 |
413,408 |
||||
As of
|
|
As of
|
||||
| In 000€ | 2022 |
|
2021 |
|||
| Equity and liabilities | ||||||
| Equity | ||||||
| Share capital | 4,487 |
|
4,489 |
|
||
| Share premium | 233,869 |
|
233,872 |
|
||
| Retained earnings and other reserves | (1,797 |
) |
(5,784 |
) |
||
| Equity attributable to the owners of the parent | 236,559 |
|
232,577 |
|
||
| Non-controlling interest | (21 |
) |
1 |
|
||
| Total equity | 236,538 |
|
232,578 |
|
||
| Non-current liabilities | ||||||
| Loans & borrowings | 58,126 |
|
72,637 |
|
||
| Lease liabilities | 5,004 |
|
5,268 |
|
||
| Deferred tax liabilities | 4,239 |
|
4,371 |
|
||
| Deferred income | 6,932 |
|
4,952 |
|
||
| Other non-current liabilities | 1,027 |
|
2,168 |
|
||
| Total non-current liabilities | 75,328 |
|
89,396 |
|
||
| Current liabilities | ||||||
| Loans & borrowings | 17,593 |
|
17,849 |
|
||
| Lease liabilities | 3,202 |
|
3,353 |
|
||
| Trade payables | 25,038 |
|
20,171 |
|
||
| Tax payables | 1,128 |
|
783 |
|
||
| Deferred income | 36,112 |
|
33,306 |
|
||
| Other current liabilities | 20,667 |
|
15,972 |
|
||
| Total current liabilities | 103,740 |
|
91,434 |
|
||
| Total equity and liabilities | 415,606 |
|
413,408 |
|
||
Consolidated statement of cash flows (Unaudited) |
||||||
for the nine months ended
|
||||||
| In 000€ | 2022 |
|
2021* |
|||
| Operating activities | ||||||
| Net (loss) profit for the period (*) | 2,435 |
|
8,382 |
|
||
| Non-cash and operational adjustments | ||||||
| Depreciation of property plant & equipment | 11,335 |
|
11,460 |
|
||
| Amortization of intangible assets | 4,859 |
|
3,780 |
|
||
| Impairment of goodwill and intangible assets | - |
|
- |
|
||
| Share-based payment expense | (121 |
) |
(878 |
) |
||
| Loss (gain) on disposal of property, plant & equipment | 59 |
|
43 |
|
||
| Movement in provisions | (506 |
) |
7 |
|
||
| Movement reserve for bad debt and slow moving inventory | (42 |
) |
154 |
|
||
| Financial income | (9,771 |
) |
(4,426 |
) |
||
| Financial expense | 5,009 |
|
3,182 |
|
||
| Impact of foreign currencies | 98 |
|
107 |
|
||
| Share in loss (gain) of a joint venture (equity method) | - |
|
- |
|
||
| (Deferred) income taxes (*) | 1,384 |
|
101 |
|
||
| Other non-current liabilities | - |
|
- |
|
||
| Working capital adjustments | 9,109 |
|
(4,531 |
) |
||
| Decrease (increase) in trade receivables and other receivables | (184 |
) |
(7,553 |
) |
||
| Decrease (increase) in inventories and contracts in progress | (4,356 |
) |
(1,770 |
) |
||
| Increase (decrease) in deferred revenue | 3,815 |
|
(56 |
) |
||
| Increase (decrease) in trade payables and other payables | 9,834 |
|
4,848 |
|
||
| Income tax paid & Interest received | (262 |
) |
108 |
|
||
| Net cash flow from operating activities | 23,587 |
|
17,490 |
|
||
| (*) | 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 (46) k€. |
for the nine months ended
|
||||||
| In 000€ | 2022 |
|
2021 |
|||
| Investing activities | ||||||
| Purchase of property, plant & equipment | (16,066 |
) |
(4,827 |
) |
||
| Purchase of intangible assets | (3,422 |
) |
(2,439 |
) |
||
| Proceeds from the sale of property, plant & equipment & intangible assets (net) | 319 |
|
295 |
|
||
| Acquisition of subsidiary (net of cash) | (29,355 |
) |
- |
|
||
| (Convertible) Loans granted | - |
|
1,239 |
|
||
| Investment in subsidiary, net of cash acquired | - |
|
(1,680 |
) |
||
| Net cash flow used in investing activities | (48,523 |
) |
(7,412 |
) |
||
| Financing activities | ||||||
| Repayment of loans & borrowings | (15,182 |
) |
(11,169 |
) |
||
| Repayment of leases | (2,566 |
) |
(2,841 |
) |
||
| Capital increase | - |
|
85,787 |
|
||
| Interest paid | (1,665 |
) |
(1,652 |
) |
||
| Other financial income (expense) | 1,378 |
|
2,740 |
|
||
| Net cash flow from (used in) financing activities | (18,035 |
) |
72,865 |
|
||
| Net increase/(decrease) of cash & cash equivalents | (42,972 |
) |
82,943 |
|
||
| Cash & Cash equivalents at the beginning of the year | 196,028 |
|
111,538 |
|
||
| Exchange rate differences on cash & cash equivalents | (2,433 |
) |
465 |
|
||
| Cash & cash equivalents at end of the period | 150,621 |
|
194,946 |
|
||
Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited) |
||||||||||||
for the three months ended
|
|
for the nine months ended
|
||||||||||
| In 000€ | 2022 |
|
2021 (*) |
|
2022 |
|
2021 (*) |
|||||
| Net profit (loss) for the period (*) | 1,413 |
|
8,657 |
|
2,435 |
|
8,382 |
|
||||
| Income taxes (*) | 478 |
|
75 |
|
1,377 |
|
101 |
|
||||
| Financial expenses | 2,110 |
|
(2,334 |
) |
4,671 |
|
3,182 |
|
||||
| Financial income | (4,283 |
) |
(1,869 |
) |
(9,800 |
) |
(4,426 |
) |
||||
| Depreciation and amortization | 5,378 |
|
5,314 |
|
16,194 |
|
15,240 |
|
||||
| Share in loss of joint venture | - |
|
- |
|
- |
|
- |
|
||||
| EBITDA | 5,096 |
|
9,843 |
|
14,876 |
|
22,480 |
|
||||
| Share-based compensation expense (1) | (24 |
) |
(104 |
) |
(121 |
) |
(878 |
) |
||||
| Acquisition-related expenses of business combinations (2) | - |
|
- |
|
- |
|
405 |
|
||||
| Adjusted EBITDA | 5,072 |
|
9,739 |
|
14,755 |
|
22,007 |
|
||||
(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 nine months ended |
||
| The year 2021 has been restated to reflect the final accounting of the business combination with RS Print. | ||
| Impact on the three months ended |
Segment P&L (Unaudited) |
||||||||||||||||||
| In 000€ | Materialise Software |
Materialise Medical |
Materialise Manufacturing |
Total segments |
Unallocated (1) | Consolidated | ||||||||||||
| For the three months ended |
||||||||||||||||||
| Revenues | 10,863 |
|
21,391 |
|
26,033 |
|
58,288 |
|
0 |
|
58,288 |
|
||||||
| Segment (adj) EBITDA | 202 |
|
4,765 |
|
2,530 |
|
7,497 |
|
(2,425 |
) |
5,072 |
|
||||||
| Segment (adj) EBITDA % | 1.9 |
% |
22.3 |
% |
9.7 |
% |
12.9 |
% |
8.7 |
% |
||||||||
| For the three months ended |
||||||||||||||||||
| Revenues | 10,468 |
|
18,910 |
|
22,817 |
|
52,196 |
|
(0 |
) |
52,195 |
|
||||||
| Segment (adj) EBITDA | 3,708 |
|
5,251 |
|
3,546 |
|
12,506 |
|
(2,767 |
) |
9,739 |
|
||||||
| Segment (adj) EBITDA % | 35.4 |
% |
27.8 |
% |
15.5 |
% |
24.0 |
% |
18.7 |
% |
||||||||
| In 000€ | Materialise Software |
Materialise Medical |
Materialise Manufacturing |
Total segments |
Unallocated (1) | Consolidated | ||||||||||||
| For the nine months ended |
||||||||||||||||||
| Revenues | 31,989 |
|
60,592 |
|
76,739 |
|
169,319 |
|
0 |
|
169,319 |
|
||||||
| Segment (adj) EBITDA | 2,955 |
|
12,466 |
|
6,722 |
|
22,144 |
|
(7,388 |
) |
14,755 |
|
||||||
| Segment (adj) EBITDA % | 9.2 |
% |
20.6 |
% |
8.8 |
% |
13.1 |
% |
8.7 |
% |
||||||||
| For the nine months ended |
||||||||||||||||||
| Revenues | 30,719 |
|
52,686 |
|
65,199 |
|
148,604 |
|
(142 |
) |
148,461 |
|
||||||
| Segment (adj) EBITDA | 10,266 |
|
14,313 |
|
5,252 |
|
29,831 |
|
(7,826 |
) |
22,004 |
|
||||||
| Segment (adj) EBITDA % | 33.4 |
% |
27.2 |
% |
8.1 |
% |
20.1 |
% |
14.8 |
% |
||||||||
| (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 ended
|
|
for the nine months ended
|
||||||||||
| In 000€ | 2022 |
|
2021 (*) |
|
2022 |
|
2021 (*) |
|||||
| Net profit (loss) for the period (*) | 1,413 |
|
8,657 |
|
2,435 |
|
8,382 |
|
||||
| Income taxes (*) | 478 |
|
75 |
|
1,377 |
|
101 |
|
||||
| Financial cost | 2,110 |
|
(2,334 |
) |
4,671 |
|
3,182 |
|
||||
| Financial income | (4,283 |
) |
(1,869 |
) |
(9,800 |
) |
(4,426 |
) |
||||
| Share in loss of joint venture | - |
|
- |
|
- |
|
- |
|
||||
| Operating (loss) profit | (282 |
) |
4,529 |
|
(1,318 |
) |
7,239 |
|
||||
| Depreciation and amortization | 5,378 |
|
5,314 |
|
16,194 |
|
15,240 |
|
||||
| Corporate research and development | 592 |
|
710 |
|
2,057 |
|
2,191 |
|
||||
| Corporate headquarter costs | 2,491 |
|
2,463 |
|
7,103 |
|
6,907 |
|
||||
| Other operating income (expense) | (681 |
) |
(511 |
) |
(1,892 |
) |
(1,745 |
) |
||||
| Segment adjusted EBITDA | 7,497 |
|
12,506 |
|
22,144 |
|
29,831 |
|
||||
| (*) | The year 2021 has been restated to reflect the final accounting of the business combination with RS Print. | |
| Impact on the nine months ended |
||
| The year 2021 has been restated to reflect the final accounting of the business combination with RS Print. | ||
| Impact on the three months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005075/en/
Investor Relations
LHA
212.838.3777
hfried@lhai.com
Source:
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