EX-99.4 6 exhibit99-4.htm SUPPLEMENTAL UNAUDITED PRO FORMA CONDENSED COMBINED NON-GAAP FINANCIAL DATA

Exhibit 99.4

SUPPLEMENTAL UNAUDITED PRO FORMA CONDENSED COMBINED NON-GAAP FINANCIAL DATA

Results of Operations Data on a Pro Forma Combined Non-GAAP Basis

     Exhibit 99.3 to this Form 6-K provides unaudited pro forma condensed combined statements of operations for the year ended December 31, 2012 and the six months ended June 30, 2013, which combined the consolidated statements of operations of Stratasys and Cooperation Technology Corporation as if the merger had been completed on January 1, 2012. These pro forma financial statements also assume that the December 1, 2012 merger of Stratasys, Inc. and Objet Ltd. had been completed on January 1, 2012.

     The following table sets forth certain of this unaudited pro forma combined information on an unaudited non-GAAP basis for the twelve months ended December 31, 2012 and six months ended June 30, 2013 (in thousands).

Year Ended Six Months Ended
  December 31, 2012 June 30, 2013
Gross profit $                         214,662       $                         134,619
Operating income 70,082 46,900
Net income attributable to Stratasys Ltd. 57,156 39,078

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     The foregoing pro forma non-GAAP data, which exclude the categories of expenses described below, are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful information for investors and shareholders of the company in gauging results of operations (x) on an ongoing basis after the mergers, when the exceptional expenses related to the mergers, and to Objet’s proposed initial public offering in 2012 will not recur, and (y) excluding non-cash charges for share-based compensation and amortization of intangible assets, which do not reflect actual cash outlays that impact our liquidity or our financial condition, as assessed by management. These non-GAAP financial measures are presented solely to permit investors to more fully understand how management assesses our performance. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all events during a period, such as the effects of merger-related, non-cash compensation and other charges, and may not provide a comparable view of the Company’s performance to other companies in the industry. The presentation of these non-GAAP measures is not meant to be considered in isolation or as an alternative to any measure of financial performance calculated in accordance with GAAP. A reconciliation of pro forma GAAP and pro forma non-GAAP results of operations is set forth below.

Reconciliation of Pro Forma GAAP and Pro Forma Non-GAAP Results of Operations

For the Twelve months ended December 31, 2012 (in thousands):

Non-GAAP Pro Forma
Pro Forma Adjustments Non-GAAP
Gross profit (1) $       163,963         $       50,699         $       214,662
Operating income (loss) (1,2) (48,899 ) 118,981 70,082
Net income (loss) attributable to
Stratasys Ltd. (1,2,3) (42,363 ) 99,519 57,156
 
(1)    Acquired Objet intangible assets
amortization expense 39,294
Acquired Solidscape intangible assets
amortization expense 1,744
Acquired MakerBot intangible assets
amortization expense 6,260
Non-cash stock-based compensation
expense 2,665
Merger related expense 265
Expense related to the revaluation of
Solidscape, Inc. and Fasotech Co., Ltd
inventory at acquistion 471
50,699
 
(2) Acquired Objet intangible assets
amortization expense 8,967
Acquired Solidscape intangible assets
amortization expense 533
Acquired MakerBot intangible assets
amortization expense 9,370
Bonus plan compensation expense 14,763
Non-cash stock-based compensation
expense 25,387
Merger related expense 9,262
68,282
118,981
 
(3) Tax expense related to adjustments (19,462 )
$ 99,519

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For the Six months ended June 30, 2013 (in thousands):

Non-GAAP Pro Forma
Pro Forma Adjustments Non-GAAP
Gross profit (1) $       98,242   $ 36,377         $       134,619
Operating income (loss) (1,2) (23,855 ) 70,755 46,900
Net income (loss) attributable to        
Stratasys Ltd. (1,2,3) (19,517 ) 58,595 39,078
 
(1)    Acquired Objet intangible assets
amortization expense 29,670
Acquired Solidscape intangible assets
amortization expense 872
Acquired MakerBot intangible assets
amortization expense 3,130
Non-cash stock-based compensation
expense 1,266
Fair value of Objet deferred revenue
pre-merger 1,214
Merger related expense 225
36,377
 
(2) Acquired Objet intangible assets
amortization expense 7,620
Acquired Solidscape intangible assets
amortization expense 266
Acquired MakerBot intangible assets
amortization expense 4,685
Bonus plan compensation expense 5,162
Non-cash stock-based compensation
expense 9,838
Acqusition related expense 6,807
34,378
70,755
 
(3) Tax expense related to adjustments          (12,096 )
Depreciation and amortization
expense attributable to
non-controlling interest (64 )
$ 58,595

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