3D SYSTEMS CORPORATION
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UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
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SEPTEMBER 30, 2010
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(in thousands of dollars)
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Historical
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Pro Forma
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Pro Forma
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ASSETS
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3D Systems
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Provel
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Adjustments
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Combined
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Current assets:
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Cash
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$ | 33,811 | $ | 1,780 | $ | (9,064 | ) | a | $ | 26,527 | |||||||
Receivables
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26,620 | 10,491 | (8,183 | ) | b | 28,928 | |||||||||||
Inventory
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20,750 | 109 | 300 | c | 21,159 | ||||||||||||
Prepaid expenses and other current assets
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2,143 | 573 | (502 | ) | d | 2,214 | |||||||||||
Total current assets
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83,324 | 12,953 | (17,449 | ) | 78,828 | ||||||||||||
Property, plant and equipment, net
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26,796 | 2,278 | (1,302 | ) | e | 27,772 | |||||||||||
Intangible assets, net
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7,852 | - | 7,583 | f | 15,435 | ||||||||||||
Goodwill
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49,961 | - | 6,588 | g | 56,549 | ||||||||||||
Other
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2,916 | - | 2,916 | ||||||||||||||
Total assets
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$ | 170,849 | $ | 15,231 | $ | (4,580 | ) | $ | 181,500 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Current portion of capitallzed lease obligations
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$ | 226 | $ | - | $ | $ | 226 | ||||||||||
Accounts payable
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13,998 | 732 | - | 14,730 | |||||||||||||
Other accrued liabilties
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24,008 | 408 | 4,737 | h | 29,153 | ||||||||||||
Total current liablities
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38,232 | 1,140 | 4,737 | 44,109 | |||||||||||||
Long-term portion of capitalized lease obligations
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8,084 | - | 8,084 | ||||||||||||||
Long-term debt
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- | 379 | (379 | ) | i | - | |||||||||||
Other long-term liabilities
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3,928 | 2,835 | 575 | j | 7,338 | ||||||||||||
Total liabilities
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50,244 | 4,354 | 4,933 | 59,531 | |||||||||||||
Commitments and Contingencies
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Stockholders' Equity
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Preferred stock
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- | - | - | ||||||||||||||
Common stock
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23 | - | 23 | ||||||||||||||
Additional paid in capital
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182,936 | 14 | 1,350 | k | 184,300 | ||||||||||||
Treasury stock
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(154 | ) | - | (154 | ) | ||||||||||||
Retained earnings (accumulated deficit)
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(67,368 | ) | 10,863 | (10,863 | ) | l | (67,368 | ) | |||||||||
Accumulated other comprehensive income
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5,168 | - | 5,168 | ||||||||||||||
Total stockholders' equity
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120,605 | 10,877 | (9,513 | ) | 121,969 | ||||||||||||
Total liabliities and stockholders' equity
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$ | 170,849 | $ | 15,231 | $ | (4,580 | ) | $ | 181,500 |
3D SYSTEMS CORPORATION
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UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
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For the nine months ended September 30, 2010
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(in thousands of dollars except per share data)
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Historical
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Pro Forma
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Pro Forma
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3D Systems
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Provel S.r.l.
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Adjustment
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Combined
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Revenue
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Products
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$ | 75,783 | $ | - | $ | - | $ | 75,783 | |||||||||
Services
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32,490 | 3,928 | (12 | ) | m | 36,406 | |||||||||||
Total
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108,273 | 3,928 | (12 | ) | 112,189 | ||||||||||||
Cost of goods sold
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Products
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38,381 | - | - | 38,381 | |||||||||||||
Services
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20,787 | 2,530 | (58 | ) | n | 23,259 | |||||||||||
Total
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59,168 | 2,530 | (58 | ) | 61,640 | ||||||||||||
Gross profit
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49,105 | 1,398 | 46 | 50,549 | |||||||||||||
Operating expenses
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Selling, general and administrative
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29,894 | 526 | 423 | o | 30,843 | ||||||||||||
Research and development
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7,979 | - | - | 7,979 | |||||||||||||
Total
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37,873 | 526 | 423 | 38,822 | |||||||||||||
Operating income
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11,232 | 872 | (377 | ) | 11,727 | ||||||||||||
Interest expense
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442 | 30 | (30 | ) | p | 442 | |||||||||||
Other (income) expense
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(100 | ) | (5 | ) | (105 | ) | |||||||||||
Profit before taxes
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10,890 | 847 | (347 | ) | 11,390 | ||||||||||||
Provision for taxes
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767 | 335 | (95 | ) | q | 1,007 | |||||||||||
Net income (loss)
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$ | 10,123 | $ | 512 | $ | (252 | ) | $ | 10,383 | ||||||||
Earnings per share:
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Basic
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$ | 0.44 | $ | 0.45 | |||||||||||||
Diluted
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$ | 0.43 | $ | 0.44 | |||||||||||||
Weighted average common shares outstanding
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Basic
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23,010 | 23,096 | |||||||||||||||
Diluted
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23,302 | 23,388 |
·
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Statement of Operations for the nine months ended September 30, 2010 – 1.3136
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·
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Balance Sheet at September 30, 2010 – 1.3639
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Cash
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$ | 8,744 | ||
Fair value of 3D Systems common stock
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1,391 | |||
Fair value of additional installment of purchase price
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4,737 | |||
Fair value of earnout
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1,077 | |||
Total
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15,949 | |||
Change in exchange rates
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(27 | ) | ||
Total estimated purchase price
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$ | 15,922 | ||
Shares issued
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85,612 | |||
Average 5-day 3D Systems' stock price
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$ | 16.25 | ||
Fair value of common stock
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1,391 |
Cash and cash equivalents
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$ | 8,635 | ||
Other current assets
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2,788 | |||
Property and equipment
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975 | |||
Goodwill
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6,588 | |||
Identified intangibles
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7,583 | |||
Total liabilities
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(10,647 | ) | ||
Total purchase price
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$ | 15,922 |
1.
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Pro Forma Adjustments
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(a)
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Cash – To record (1) the cash payment of $15,922 by 3D Systems Corporation for the common stock of Provel S.r.l.; (2) the collection of an accounts receivable on Provel S.r.l of $8,183 paid in conjunction with the closing date of the acquisition; and (3) settlement of certain obligations, $1,325.
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(b)
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Receivables – (1) To record the collection of an accounts receivable on Provel S.r.l. of $8,183 paid in conjunction with the closing date of the acquisition.
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(c)
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Inventory – To adjust inventory to fair value.
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(d)
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Prepaid and other current assets – To eliminate insurance policies excluded from the transaction.
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(e)
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Property, plant and equipment – (1) Eliminate the amount of assets excluded from the acquisition and (2) to record the difference between the historical amounts of Provel S.r.l.’s property, plant and equipment, net and fair values of these assets.
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(f)
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Intangible assets, net – To record the fair value of the intangible assets acquired as follows:
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Trade names
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$ | 177 | ||
Customer relationships
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6,233 | |||
Non-compete agreement
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1,105 | |||
Backlog
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68 | |||
$ | 7,583 |
(g)
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Goodwill – To record goodwill.
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(h)
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Other accrued liabilities – To accrue: (1) the fair value of the additional installment of the purchase price, $3,655; and (2) the additional payment for the excess working capital transferred, $1,082.
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(i)
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Long-term debt – To eliminate indebtedness excluded from the acquisition.
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(k)
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Additional paid in capital – Eliminate Provel S.r.l. paid in capital, $(14); record issuance of common stock in connection with the acquisition, $1,391 ($1,364 after translation impact).
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(l)
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Retained earnings (accumulated deficit) – To eliminate the retained earnings of Provel S.r.l.
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(m)
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Services revenue – Eliminate the sales amount between 3D Systems Corporation and Provel S.r.l.
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(n)
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Cost of goods sold – (1) to eliminate the cost of sales associated with service revenue between 3D Systems Corporation and Provel S.r.l. and (2) to record the difference in depreciation expense based upon the fair values of property, plant and equipment.
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(o)
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Selling, general and administrative – To record the amortization expense of intangible assets.
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(p)
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Interest expense – To eliminate the interest on the associated debt of Provel S.r.l. that was excluded from the acquisition.
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(q)
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Provision for taxes – To reflect the tax impact on the pro forma adjustments.
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