UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 27, 2013
The ExOne Company
(Exact name of registrant as specified in its charter)
| Delaware | 001-35806 | 46-1684608 |
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
| 127 Industry Boulevard North Huntingdon, Pennsylvania |
15642 |
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (724) 863-9663
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On March 27, 2013, The ExOne Company (the "Company" or "ExOne") issued a press release providing a fourth quarter and full year 2012 review of the Company's activities and financials, through December 31, 2012, as well as an update on its strategy and outlook. A copy of the earnings release is attached to this Form 8-K as Exhibit 99.1.
The information in this Current Report and the exhibit hereto are being furnished and shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report and exhibit hereto shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
99.1
Press Release dated March 27, 2013 titled "The ExOne Company Reports Revenue Growth on Higher Machine Sales in Fourth Quarter 2012"
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| The ExOne Company
(Registrant) |
||
| March 28, 2013
(Date) |
/s/ JOHN IRVIN
John Irvin Chief Financial Officer |
Exhibit Index
| Exhibit No. | Description | |
| 99.1 | Press Release dated March 27, 2013 titled "The ExOne Company Reports Revenue Growth on Higher Machine Sales in Fourth Quarter 2012" |
EXHIBIT 99.1
NORTH HUNTINGDON, Pa., March 27, 2013 (GLOBE NEWSWIRE) -- The ExOne Company (Nasdaq:XONE) ("ExOne" or "the Company"), a global provider of three-dimensional ("3D") printing machines and printed products to industrial customers, reported financial results today for its fourth quarter and full year 2012, which ended December 31, 2012.
Kent Rockwell, Chairman and Chief Executive Officer of ExOne commented, "We made solid progress in 2012. The recent technological advances of our 3D printing machines create persuasive economics for our industrial customers, who have demonstrated a growing interest in applying 3D printing in their manufacturing processes."
Revenue for the fourth quarter of 2012 was $12.7 million, up $10.0 million over 2011 fourth quarter. Net income of $0.9 million was improved over a net loss of $2.8 million for the same period in 2011. Included in the fourth quarter was a $1.5 million reduction in license fees.
For the full year of 2012 revenue was $28.7 million, up 87.6% from revenue of $15.3 million in 2011. Net loss in 2012 was $10.2 million, compared with a net loss of $8.0 million in 2011.
| Revenue Growth Driven by Stronger Sales of 3D Printing Machines | ||||
| ($ in millions) | ||||
|
Three months ended December 31, |
Year ended December 31, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Revenue by Product Line | ||||
| 3D Printing Machine Sales | $8.9 | $0.2 | $15.7 | $5.4 |
| 3D Printed Parts, Materials and Other ("PSC") | $3.8 | $2.5 | $13.0 | $9.9 |
| Total revenue | $12.7 | $2.7 | $28.7 | $15.3 |
During the fourth quarter of 2012, machine sales were $8.9 million. Eight machines were sold in the 2012 fourth quarter and thirteen in the full year, whereas one machine was sold in the prior-year's fourth quarter and five machines were sold in 2011. Higher sales were the result of customer demand for the Company's new machine models. Additionally, there has been an increasing trend of acceptance of additive manufacturing among global industrial manufacturers. Machine sales represented 70% of total sales in the 2012 fourth quarter.
PSC revenue for the 2012 fourth quarter was up 52%, or $1.3 million, over the prior-year period. PSC revenue in 2012 improved by 31.3%, or $3.1 million, as the Company has increased its customer base from growing demand for 3D printed parts.
Higher Machine Sales Results in Margin Expansion for the Quarter
Gross profit was $6.2 million in the fourth quarter of 2012, improved $5.8 million from gross profit of $0.4 million in the fourth quarter of 2011 driven by the significant increase in machine sales. Gross profit as a percent of sales was 49.0% in the fourth quarter of 2012 compared with 14.6% in the same period of 2011. Gross profit included a $1.5 million reduction in license fees.
Operating income for the fourth quarter of 2012 was $2.0 million, or 16.0% of sales, compared with an operating loss of $2.1 million in the fourth quarter of 2011. Improved operating income was due to higher sales volume.
Full Year 2012 Operational Review
Gross profit was $12.1 million, or 42.4% of sales, in 2012. SG&A expenses were $18.3 million, or 63.8% of sales, for the year compared with $7.3 million, or 47.7% of sales, in 2011. Increased SG&A reflected investments for growth which included additional personnel to support higher future sales volume. Also included in SG&A for the year was approximately $1.9 million of expenses associated with the preparation for the initial public offering ("IPO") and a $7.7 million stock compensation expense. R&D expenses were $1.9 million in 2012, compared with $1.5 million in 2011.
Excluding the aforementioned expenses of $9.6 million, operating income would have been $1.5 million for 2012, up from an operating loss of $5.2 million during 2011. As reported, consolidated operating loss for the year was $8.1 million. Backlog at December 31, 2012 was $5.1 million.
Balance Sheet Bolstered by Successful IPO
On February 12, 2013, ExOne completed its IPO of 6,095,000 shares of common stock at $18 per share, resulting in net proceeds to the Company of $92.0 million. Approximately $10.3 million of the proceeds were used to repay outstanding debt. In addition, we purchased the assets and repaid the liabilities of our variable interest entities for approximately $7.0 million. The Company plans to use the remainder of the proceeds to fund ExOne's growth initiatives, including the build out of an additional ten PSCs over the next three to five years and the expansion of our global manufacturing capacity, as well as further research and development, process improvement initiatives and other corporate purposes.
Strong Growth Anticipated in 2013
Mr. Rockwell commented, "Our technology and experience has enabled us to develop 3D printing machines that provide an economic alternative to traditional industrial applications. Our unique solution for the industrial market puts us in a leading position as a 3D printer and manufacturer in the global economy. We believe we are a driver of the rate of adoption of 3D printing for industrial applications as well as a benefactor of the growing relevance of this technology in manufacturing. As we move forward, our priorities are to capture this opportunity by developing PSCs in high potential market areas and advancing our capabilities with new metal-based materials."
For 2013, the Company estimates that full year revenue will be in a range of about $48 million to $52 million with approximately two-thirds of revenue expected to fall in the latter half of the year. The Company plans to launch two additional PSCs during the second half of 2013 which will expand its operations to a total of seven. Gross margin for the year is expected to be approximately 42% to 46%. Operating expenses are expected to be in the range of $18 million to $21 million.
Approximately $40 million to $50 million in growth capital expenditures are planned over the next two years which includes the expansion of the Company's global manufacturing capacity and PSC development.
Webcast and Conference Call
The ExOne Company will host a conference call and live webcast tomorrow morning at 8:30 a.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the fourth quarter and full year and discuss ExOne's corporate strategies and outlook. A question-and-answer session will follow. The teleconference can be accessed by calling (201) 689-8471. The webcast can be monitored on the Company's website at www.exone.com.
A telephonic replay will be available from 11:30 a.m. ET on the day of the teleconference through Thursday, April 4, 2013. To listen to a replay of the call, dial (858) 384-5517 and enter the conference ID number 409944. An archive of the webcast will be available on the Company's website at www.exone.com and will include a transcript, once available.
About ExOne
ExOne is a global provider of 3D printing machines and printed products to industrial customers. ExOne's business primarily consists of manufacturing and selling 3D printing machines and printing products to specification for its customers using its in‐house 3D printing machines. ExOne offers pre-production collaboration and prints products through Production Service Centers, which are located in the United States, Germany and Japan. ExOne builds 3D printing machines at its facilities in the United States and Germany. ExOne also supplies the associated products, including consumables and replacement parts, and services, including training and technical support, necessary for purchasers of its machines to print products.
Explanatory Note:
The ExOne Company was reorganized as a corporation on January 1, 2013 from a limited liability company. Financial statements presented herein are not reflective of the reorganization and should be read in conjunction with the Company's Annual Report on Form 10-K to be filed with the SEC on or before April 1, 2013. The ExOne Company completed its initial public offering of 6.1 million shares of common stock on February 12, 2013.
Safe Harbor Regarding Forward Looking Statements
This news 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.
Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "typically," "anticipates," "believes," "appears," "could," "plan," and other similar words. Such statements include, but are not limited to, statements concerning future revenue and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, which include our ability to qualify more materials in which we can print; the availability of skilled personnel; our strategy, including the expansion and growth of our operations; the impact of loss of key management; our plans regarding increased international operations in additional international locations; sufficiency of funds for required capital expenditures, working capital, and debt service; the adequacy of sources of liquidity; expectations regarding demand for our industrial products, operating revenues, operating and maintenance expenses, insurance expenses and deductibles, interest expenses, debt levels, and other matters with regard to outlook; demand for aerospace, automotive, energy and other industrial products; the impact of disruption of our manufacturing facilities or PSCs; liabilities under laws and regulations protecting the environment; the impact of governmental laws and regulations; operating hazards, war, terrorism and cancellation or unavailability of insurance coverage; the effect of litigation and contingencies; and the adequacy of our protection of our intellectual proper, and other factors disclosed in the Company's Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Because they are forward-looking, these statements should be evaluated in light of important risk factors and uncertainties.
Should one or more of these risks or uncertainties materialize, or should any of ExOne's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
FINANCIAL TABLES FOLLOW
| The ExOne Company | ||||
| Consolidated Statements of Operations | ||||
| ($ in thousands) | ||||
| (unaudited) | ||||
|
Three months ended December 31, |
Year ended December 31, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Revenue | $ 12,744 | $ 2,718 | $ 28,657 | $ 15,290 |
| Cost of sales | 6,496 | 2,320 | 16,514 | 11,647 |
| Gross profit | 6,248 | 398 | 12,143 | 3,643 |
| Gross margin | 49.0% | 14.6% | 42.4% | 23.8% |
| Operating expenses | ||||
| Research and development | 751 | 385 | 1,930 | 1,531 |
| Selling, general and administrative | 3,458 | 2,090 | 18,285 | 7,286 |
| 4,209 | 2,475 | 20,215 | 8,817 | |
| Income (loss) from operations | 2,039 | (2,077) | (8,072) | (5,174) |
| Operating margin | 16.0% | -76.4% | -28.2% | -33.8% |
| Other (income) expense | ||||
| Interest expense | 300 | 382 | 842 | 1,570 |
| Other (income) expense – net | (147) | (191) | (221) | (158) |
| 153 | 191 | 621 | 1,412 | |
| Profit (loss) before income taxes | 1,886 | (2,268) | (8,693) | (6,586) |
| Provision for income taxes | 824 | 322 | 995 | 1,031 |
| Net income (loss) | 1,062 | (2,590) | (9,688) | (7,617) |
| Less: Net income attributable to noncontrolling interests | 160 | 176 | 480 | 420 |
| Net income (loss) attributable to ExOne | $ 902 | $ (2,766) | $ (10,168) | $ (8,037) |
| The ExOne Company | ||
| Condensed Consolidated Balance Sheets | ||
| ($ in thousands) | ||
| (unaudited) | ||
| December 31, | ||
| 2012 | 2011 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 2,802 | $ 3,496 |
| Accounts receivable – net | 8,413 | 1,335 |
| Inventories - net | 7,485 | 4,431 |
| Prepaid expenses and other current assets | 1,543 | 854 |
| Total current assets | 20,243 | 10,116 |
| Property and equipment - net | 12,467 | 7,919 |
| Other noncurrent assets | 365 | 580 |
| Total assets | $ 33,075 | $ 18,615 |
| Liabilities | ||
| Current liabilities: | ||
| Line of credit | $ 528 | $ -- |
| Demand note payable to member | 8,666 | -- |
| Current portion of long-term debt and financing leases | 2,948 | 1,294 |
| Accounts payable, accrued expenses and other current liabilities | 7,065 | 4,863 |
| Preferred unit dividends payable | 1,437 | -- |
| Deferred revenue and customer prepayments | 4,281 | 4,938 |
| Total current liabilities | 24,925 | 11,095 |
| Long-term debt and financing leases - net of current portion | 7,618 | 4,135 |
| Redeemable preferred units | -- | 18,984 |
| Other noncurrent liabilities | 491 | -- |
| Total liabilities | 33,034 | 34,214 |
| Commitments and contingencies | ||
| Members' equity (deficit) | ||
| Total ExOne members' deficit | (2,545) | (17,705) |
| Noncontrolling interests | 2,586 | 2,106 |
| Total members' equity (deficit) | 41 | (15,599) |
| Total liabilities and members' deficit | $ 33,075 | $ 18,615 |
| The ExOne Company | ||||
| Additional Information | ||||
| Machine Sales by Type | ||||
|
Three months ended December 31, |
Year ended December 31, |
|||
| Machines | 2012 | 2011 | 2012 | 2011 |
| S 15 | -- | -- | 1 | 2 |
| S Max | 5 | -- | 9 | 1 |
| S Print | 3 | -- | 3 | 1 |
| Other | -- | 1 | -- | 1 |
| Total | 8 | 1 | 13 | 5 |
CONTACT: Media:
Nicole McEwen
Marketing Director
(724) 765-1328
nicole.mcewen@exone.com
Investors:
John Irvin
Chief Financial Officer
(724) 765-1310
john.irvin@exone.com
Deborah K. Pawlowski
Kei Advisors LLC
(716) 843-3908
dpawlowski@keiadvisors.com