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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