MTLS
$67.11
Materialise NV Ads
($6.34)
(8.63%)
Earnings Details
3rd Quarter September 2020
Thursday, October 29, 2020 6:30:00 AM
Tweet Share Watch
Summary

Materialise NV Ads (MTLS) Recent Earnings

Materialise NV Ads (MTLS) reported a 3rd Quarter September 2020 loss of $0.01 per share on revenue of $47.8 million. The consensus estimate was for breakeven results on revenue of $48.3 million. Revenue fell 13.1% compared to the same quarter a year ago.

Materialise NV is a provider of additive manufacturing software and of sophisticated 3D printing service. The Company' segments are 3D Printing Software, Medical, and Industrial Production.

Results
Reported Earnings
($0.01)
Earnings Whisper
-
Consensus Estimate
$0.00
Reported Revenue
$47.8 Mil
Revenue Estimate
$48.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Materialise Reports Third Quarter 2020 Results

LEUVEN, Belgium--(BUSINESS WIRE)--Materialise NV (NASDAQ:MTLS), a leading provider of additive manufacturing and medical software and of sophisticated 3D printing services, today announced its financial results for the third quarter ended September 30, 2020.

Highlights – Third Quarter 2020

  • Total revenue was 40,785 kEUR for the third quarter of 2020 compared to 50,449 kEUR for the 2019 period.
  • Total deferred revenues from annual software sales and maintenance fees were 26,833 kEUR compared to 27,667 kEUR at December 31, 2019.
  • Adjusted EBITDA amounted to 6,023 kEUR for the third quarter of 2020, with an Adjusted EBITDA margin of 14.8%, driven mainly by the Materialise Medical segment’s strong 32% EBITDA margin. The EBITDA margins of the Materialise Software and Materialise Manufacturing segments were 33% and (2%), respectively.
  • Net result for the third quarter of 2020 was (366) kEUR, or (0.01) EUR per diluted share, compared to 1,001 kEUR, or 0.02 EUR per diluted share, for the 2019 period.
  • Total cash was 110,691 kEUR at the end of the quarter.

Third Quarter 2020 Results

Executive Chairman Peter Leys commented, “Given the challenging environment, Materialise performed well this quarter, thanks to the continued hard work and inspiring contributions of our entire workforce. While the revenues of our Materialise Manufacturing and, to a lesser extent, Materialise Software segments decreased in the midst of the COVID-19 pandemic, our Materialise Medical segment grew its revenues by an impressive 11% and posted a record EBITDA margin of 32%. Further building on the success we had with some of our medical applications, we made a strategic investment in our eyewear initiative, in connection with our previously announced collaboration with Ditto, and, on October 29, 2020, we announced an increased investment in our footwear platform through the acquisition of RS Print and RS Scan. In the third quarter, we also increased our overall ongoing R&D efforts by more than 4% and began implementing an internal digital transformation program, including a new e-commerce portal and new customer relationship management (CRM) and enterprise resource planning (ERP) systems.”

Total revenue for the third quarter of 2020 decreased 19.2% to 40,785 kEUR compared to 50,449 kEUR for the third quarter of 2019. Adjusted EBITDA decreased to 6,023 kEUR from 8,022 kEUR. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the third quarter of 2020 was 14.8% compared to 15.9% for the third quarter of 2019.

Revenue from our Materialise Software segment decreased 12.7% to 9,478 kEUR for the third quarter of 2020 from 10,860 kEUR for the same quarter last year. Recurring revenue of Materialise Software increased by 15.9%. Segment EBITDA decreased to 3,114 kEUR from 3,769 kEUR while the segment EBITDA margin was 32.9% compared to 34.7% for the prior-year period.

Revenue from our Materialise Medical segment increased 10.8% to 17,161 kEUR for the third quarter of 2020 compared to 15,488 kEUR for the same period in 2019. Compared to the third quarter of 2019, revenues from our medical software grew 3.1% and revenues from medical devices and services increased 14.5%. Segment EBITDA increased to 5,477 kEUR compared to 2,795 kEUR while the segment EBITDA margin was 31.9% compared to 18.0% for the third quarter of 2019.

Revenue from our Materialise Manufacturing segment decreased 41.3% to 14,154 kEUR for the third quarter of 2020 from 24,127 kEUR for the third quarter of 2019. Segment EBITDA decreased to (293) kEUR from 3,862 kEUR while the segment EBITDA margin was (2.1)% compared to 16.0% for the third quarter of 2019.

Gross profit was 23,220 kEUR, or 56.9% of total revenue, for the third quarter of 2020 compared to 29,023 kEUR, or 57.5% of total revenue, for the third quarter of 2019.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses decreased, in the aggregate, 11.9% to 24,176 kEUR for the third quarter of 2020 from 27,439 kEUR for the third quarter of 2019. In the third quarter of 2020, we increased our R&D expenses by 4.2%, while our cost reduction initiatives in S&M and G&A resulted in decreases of 18.7% and 11.7%, respectively, compared to the third quarter of 2019.

Net other operating income was 1,157 kEUR compared to 1,332 kEUR for the third quarter of 2019.

Operating result decreased to 201 kEUR from 2,916 kEUR for the third quarter of 2019.

Net financial result was (1,331) kEUR compared to (966) kEUR for the third quarter of 2019. The share in result of joint venture amounted to 0 kEUR compared to (41) kEUR for the same period in 2019. Subsequent to the end of the third quarter, we agreed to acquire substantially all assets of RS Scan, our joint venture partner in RS Print, and thereby acquire the remaining 50% interest in RS Print.

The third quarter of 2020 contained income tax income of 764 kEUR, compared to an income tax expense of (908) kEUR in the third quarter of 2019.

As a result of the above, net loss for the third quarter of 2020 was (366) kEUR, compared to 1,001 kEUR for the same period in 2019. Total comprehensive loss for the third quarter of 2020, which includes exchange differences on translation of foreign operations, was (1,744) kEUR compared to 1,067 kEUR for the 2019 period.

At September 30, 2020, we had cash and equivalents of 110,691 kEUR compared to 128,897 kEUR at December 31, 2019. Gross debt amounted to 117,884 kEUR at September 30, 2020, compared to 127,939 kEUR at December 31, 2019. As a result, our net cash position decreased 8,151 kEUR during the first three quarters of 2020.

Cash flow from operating activities during the first three quarters of 2020 was 14,752 kEUR compared to 22,737 kEUR for the same period in 2019. Total capital expenditures for the third quarter of 2020 were funded with cash flow from operations and available cash, and amounted to 7,536 kEUR. This amount included capital expenditures of 1,846 kEUR related to our internal digital transformation program.

Net shareholders’ equity at September 30, 2020 was 131,399 kEUR compared to 142,675 kEUR at December 31, 2019.

2020 Outlook

Mr. Leys concluded, “As we move through the fourth quarter, traditionally an important period for our business, the COVID-19 pandemic continues to disrupt everyday life, the markets in which we operate, and macroeconomic conditions in general. Accordingly, the outlook for the short term remains unclear. We are being disciplined in managing our business, but, just as importantly, are dedicated to pursuing our vital R&D programs and our strategic investment initiatives, which we believe will position Materialise very well for the coming years. Our balance sheet and liquidity are particular areas of strength.”

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 loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding share-based compensation expenses and acquisition-related expenses of 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 U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.1708, the reference rate of the European Central Bank on September 30, 2020.

Conference Call and Webcast

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the third quarter of 2020 on Thursday, October 29, 2020, at 8:30 a.m. ET/1:30 p.m. CET. Company participants on the call will include Wilfried Vancraen, Founder and Chief Executive Officer; Peter Leys, Executive Chairman; and Johan Albrecht, Chief Financial Officer. A question-and-answer session will follow management’s remarks.

  • To access the conference call, please dial 844-469-2530 (U.S.) or 765-507-2679 (international), passcode #6946774.

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 Belgium, with branches worldwide, Materialise combines the largest groups of software developers in the industry with one of the largest and most complete 3D printing facilities in the world.

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 COVID-19 pandemic and related public health measures, as well as the related actions we are taking in response), and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, the Company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the Company's actual results to differ materially from our expectations, including risk factors described in the Company's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. There are a number of risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements contained in this press release.

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
September 30,

 

 

 

 

 

For the nine
months ended
September 30,

 

In 000

 

2020

 

 

2020

 

 

2019

 

 

 

 

 

2020

 

 

2019

 

 

 

U.S.$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

47,751

 

 

 

40,785

 

 

 

50,449

 

 

 

 

 

 

 

125,148

 

 

 

145,968

 

Cost of sales

 

 

(20,566)

 

 

 

(17,566)

 

 

 

(21,426)

 

 

 

 

 

 

 

(57,310)

 

 

 

(64,838)

 

Gross profit

 

 

27,186

 

 

 

23,220

 

 

 

29,023

 

 

 

 

 

 

 

67,838

 

 

 

81,129

 

Gross profit as % of revenue

 

 

56.9%

 

 

 

56.9%

 

 

 

57.5%

 

 

 

 

 

 

 

54.2%

 

 

 

55.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

 

(6,862)

 

 

 

(5,861)

 

 

 

(5,626)

 

 

 

 

 

 

 

(18,434)

 

 

 

(17,411)

 

Sales and marketing expenses

 

 

(12,896)

 

 

 

(11,015)

 

 

 

(13,545)

 

 

 

 

 

 

 

(33,700)

 

 

 

(38,797)

 

General and administrative expenses

 

 

(8,547)

 

 

 

(7,300)

 

 

 

(8,269)

 

 

 

 

 

 

 

(21,100)

 

 

 

(24,453)

 

Net other operating income (expenses)

 

 

1,355

 

 

 

1,157

 

 

 

1,332

 

 

 

 

 

 

 

2,733

 

 

 

3,959

 

Operating (loss) profit

 

 

235

 

 

 

201

 

 

 

2,916

 

 

 

 

 

 

 

(2,663)

 

 

 

4,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial expenses

 

 

(2,883)

 

 

 

(2,462)

 

 

 

(1,138)

 

 

 

 

 

 

 

(4,923)

 

 

 

(2,647)

 

Financial income

 

 

1.324

 

 

 

1,131

 

 

 

172

 

 

 

 

 

 

 

1,976

 

 

 

900

 

Share in loss of joint venture

 

 

-

 

 

 

-

 

 

 

(41)

 

 

 

 

 

 

 

(39)

 

 

 

(245)

 

(Loss) profit before taxes

 

 

(1,323)

 

 

 

(1,130)

 

 

 

1,909

 

 

 

 

 

 

 

(5,649)

 

 

 

2,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

894

 

 

 

764

 

 

 

(908)

 

 

 

 

 

 

 

497

 

 

 

(2,037)

 

Net (loss) profit for the period

 

 

(429)

 

 

 

(366)

 

 

 

1,001

 

 

 

 

 

 

 

(5,152)

 

 

 

397

 

Net (loss) profit attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The owners of the parent

 

 

(359)

 

 

 

(307)

 

 

 

929

 

 

 

 

 

 

 

(4,989)

 

 

 

325

 

Non-controlling interest

 

 

(69)

 

 

 

(59)

 

 

 

72

 

 

 

 

 

 

 

(163)

 

 

 

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to owners of the parent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

(0.01)

 

 

 

(0.01)

 

 

 

0.02

 

 

 

 

 

 

 

(0.01)

 

 

 

0.01

 

Diluted

 

 

(0.01)

 

 

 

(0.01)

 

 

 

0.02

 

 

 

 

 

 

 

(0.01)

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average basic shares outstanding

 

 

53,194

 

 

 

53,194

 

 

 

52,891

 

 

 

 

 

 

 

53,194

 

 

 

52,891

 

Weighted average diluted shares outstanding

 

 

53,194

 

 

 

53,194

 

 

 

52,970

 

 

 

 

 

 

 

53,194

 

 

 

52,930

 

Consolidated statements of comprehensive income (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended
September 30,

 

 

 

 

 

For the nine
months ended
September 30,

 

In 000

 

2020

 

 

2020

 

 

2019

 

 

 

 

 

2020

 

 

2019

 

 

 

U.S.$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit (loss) for the period

 

 

(429)

 

 

 

(366)

 

 

 

1,001

 

 

 

 

 

 

 

(5,152)

 

 

 

397

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange difference on translation of foreign operations

 

 

(1,612)

 

 

 

(1,377)

 

 

 

67

 

 

 

 

 

 

 

(8,165)

 

 

 

225

 

Other comprehensive income (loss), net of taxes

 

 

(1,612)

 

 

 

(1,377)

 

 

 

67

 

 

 

 

 

 

 

(8,165)

 

 

 

225

 

Total comprehensive income (loss) for the year, net of taxes

 

 

(2,042)

 

 

 

(1,744)

 

 

 

1,067

 

 

 

 

 

 

 

(13,318)

 

 

 

623

 

Total comprehensive income (loss) attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The owners of the parent

 

 

(1,754)

 

 

 

(1,498)

 

 

 

1,077

 

 

 

 

 

 

 

(11,969)

 

 

 

623

 

Non-controlling interest

 

 

(288)

 

 

 

(246)

 

 

 

(10)

 

 

 

 

 

 

 

(1,349)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated statement of financial position (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

As of
September
30,

 

 

As of
December
31,

 

In 000

 

2020

 

 

2019

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

Goodwill

 

 

18,653

 

 

 

20,174

 

Intangible assets

 

 

28,790

 

 

 

27,395

 

Property, plant & equipment

 

 

88,228

 

 

 

90,331

 

Right-of-Use assets

 

 

9,473

 

 

 

10,586

 

Investments in joint ventures

 

 

-

 

 

 

39

 

Deferred tax assets

 

 

875

 

 

 

192

 

Other non-current assets

 

 

12,418

 

 

 

9,391

 

Total non-current assets

 

 

158,437

 

 

 

158,108

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Inventories

 

 

10,046

 

 

 

12,696

 

Trade receivables

 

 

30,526

 

 

 

40,322

 

Other current assets

 

 

11,087

 

 

 

9,271

 

Cash and cash equivalents

 

 

110,691

 

 

 

128,897

 

Total current assets

 

 

162,350

 

 

 

191,186

 

Total assets

320,787

 

 

349,294

 

 

 

 

 

 

 

 

 

 

 

 

As of
September
30,

 

 

As of
December
31,

 

In 000

 

2020

 

 

2019

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital

 

 

3,068

 

 

 

3,066

 

Share premium

 

 

138,391

 

 

 

138,090

 

Consolidated reserves

 

 

(5,185)

 

 

 

(195)

 

Other comprehensive income

 

 

(6,979)

 

 

 

(1.394)

 

Equity attributable to the owners of the parent

 

 

129,295

 

 

 

139,567

 

Non-controlling interest

 

 

2,104

 

 

 

3,107

 

Total equity

 

 

131,399

 

 

 

142,675

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Loans & borrowings

 

 

93,630

 

 

 

104,673

 

Lease liabilities

 

 

5,767

 

 

 

6,427

 

Deferred tax liabilities

 

 

5,548

 

 

 

5,747

 

Deferred income

 

 

5,236

 

 

 

5,031

 

Other non-current liabilities

 

 

672

 

 

 

696

 

Total non-current liabilities

 

 

110,853

 

 

 

122,575

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Loans & borrowings

 

 

15,106

 

 

 

13,389

 

Lease liabilities

 

 

3,381

 

 

 

3,449

 

Trade payables

 

 

15,637

 

 

 

18,516

 

Tax payables

 

 

1,392

 

 

 

3,363

 

Deferred income

 

 

25,379

 

 

 

27,641

 

Other current liabilities

 

 

17,640

 

 

 

17,686

 

Total current liabilities

 

 

78,535

 

 

 

84,044

 

 

 

 

Total equity and liabilities

 

 

320,787

 

 

 

349,294

 

Consolidated statement of cash flows (Unaudited)

 

 

 

 

 

 

 

For the nine months ended
September 30,

in 000

 

2020

 

2019

 

 

 

Operating activities

 

 

 

 

Net (loss) profit for the period

 

(5,153)

 

398

Non-cash and operational adjustments

 

 

 

 

Depreciation of property, plant & equipment

 

11,266

 

10,722

Amortization of intangible assets

 

3,349

 

3,360

Share-based payment expense

 

-

 

258

Loss (gain) on disposal of property, plant & equipment

 

(16)

 

141

Movement in provisions

 

-

 

66

Movement reserve for bad debt

 

36

 

(135)

Financial income

 

(1.977)

 

(900)

Financial expense

 

4.922

 

2,647

Impact of foreign currencies

 

18

 

(432)

Share in loss of a joint venture (equity method)

 

39

 

245

(Deferred) income taxes

 

(836)

 

2,012

Other

 

-

 

4

Working capital adjustment & income tax paid

 

 

 

 

Decrease (increase) in trade receivables and other receivables

 

6,765

 

3,593

Decrease (increase) in inventories

 

2,757

 

8

Increase (decrease) in trade payables and other payables

 

(4,301)

 

2,263

Income tax paid & interest received

 

(2,457)

 

(1,514)

Net cash flow from operating activities

 

14,752

 

22,737

 

 

 

 

 

 

 

For the nine months ended
September 30,

in 000

 

2020

 

2019

 

 

 

Investing activities

 

 

 

 

Purchase of property, plant & equipment

 

(8,196)

 

(10,325)

Purchase of intangible assets

 

(5,783)

 

(1,588)

Proceeds from the sale of property, plant & equipment & intangible assets (net)

 

150

 

(3)

Available for sale investments

 

 

 

 

Advances on capital increases

 

-

 

(875)

Convertible loan to third party

 

(2,428)

 

(2,500)

Investments in subsidiary, net of cash acquired

 

-

 

(7,765)

Interest received

 

-

 

-

Net cash flow used in investing activities

 

(16,258)

 

(23,066)

 

 

 

 

 

Financing activities

 

 

 

 

Proceeds from loans & borrowings

 

-

 

29,000

Repayment of loans & borrowings

 

(8,909)

 

(8,608)

Repayment of finance leases

 

(2,997)

 

(2,288)

Capital increase

 

140

 

Direct attributable expense of capital increase

 

 

Interest paid

 

(1,626)

 

(1,713)

Other financial income (expense)

 

(1,034)

 

(451)

Net cash flow from (used in) financing activities

 

(14,425)

 

15,941

 

 

 

 

 

Net increase of cash & cash equivalents

 

(15,931)

 

15,611

Cash & cash equivalents at beginning of the year

 

128,897

 

115,506

Exchange rate differences on cash & cash equivalents

 

(2,275)

 

162

Cash & cash equivalents at end of the period

 

110,691

 

131,279

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months 
ended September 30,

 

 

 

 

 

For the nine months
ended September 30,

 

In 000

 

2020

 

 

2019

 

 

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit (loss) for the period

 

 

(366)

 

 

 

1,001

 

 

 

 

 

 

 

(5,152)

 

 

 

397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

(764)

 

 

 

908

 

 

 

 

 

 

 

(497)

 

 

 

2,037

 

Financial expenses

 

 

2,462

 

 

 

1,138

 

 

 

 

 

 

 

4,923

 

 

 

2,647

 

Financial income

 

 

(1,131

)

 

 

(172

)

 

 

 

 

 

 

(1,976)

 

 

 

(900)

 

Share in loss of joint venture

 

 

-

 

 

 

41

 

 

 

 

 

 

 

39

 

 

 

245

 

Depreciation and amortization

 

 

4,922

 

 

 

4,904

 

 

 

 

 

 

 

14,616

 

 

 

14,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

5,123

 

 

 

7,820

 

 

 

 

 

 

 

11,952

 

 

 

18,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense (1)

 

 

900

 

 

 

60

 

 

 

 

 

 

 

1,057

 

 

 

256

 

Acquisition-related expenses of business combinations (2)

 

 

-

 

 

 

140

 

 

 

 

 

 

 

-

 

 

 

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA

 

 

6,023

 

 

 

8,022

 

 

 

 

 

 

 

13,009

 

 

 

18,908

 

 

(1)

Share-based compensation expenses represent the cost of equity-settled and cash-settled share-based payments to employees.

 

(2)

Acquisition-related expenses of business combinations represent expenses incurred in connection with the Engimplan acquisition.

Segment P&L (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

In 000

 

Materialise
Software

 

Materialise
Medical

 

Materialise
Manu-
facturing

 

Total
segments

 

Unallocated
(1)(2)

 

Consoli-
dated

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

9,478

 

17,161

 

14,154

 

40,793

 

22

 

40,785

Segment (adj) EBITDA

 

3,114

 

5,477

 

(293)

 

8,298

 

(2,275)

 

6,023

 

 

 

 

 

 

 

Segment (adj) EBITDA %

 

32.9%

 

31.9%

 

(2.1%)

 

20.3%

 

 

 

14.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

10,860

 

15,488

 

24,127

 

50,474

 

(26)

 

50,449

Segment EBITDA

 

3,769

 

2,795

 

3,862

 

10,426

 

(2,404)

 

8,022

 

 

 

 

 

 

 

Segment EBITDA %

 

34.7%

 

18.0%

 

16.0%

 

20.7%

 

 

 

15.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

In 000

 

Materialise
Software

 

Materialise
Medical

 

Materialise
Manu-
facturing

 

Total
segments

 

Unallocated
(1)(2)

 

Consoli-
dated

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

28,839

 

44,541

 

51,746

 

125,126

 

22

 

125,148

Segment (adj) EBITDA

 

9,516

 

9,072

 

1,474

 

20,063

 

(7,053)

 

13,009

 

 

 

 

 

 

 

Segment (adj) EBITDA %

 

33.0%

 

20.4%

 

2.8%

 

16.0%

 

 

 

10.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

29,529

 

43,600

 

72,861

 

145,990

 

(22)

 

145,968

Segment (adj) EBITDA

 

8,785

 

7,306

 

10,393

 

26,484

 

(7,576)

 

18,908

 

 

 

 

 

 

 

Segment (adj) EBITDA %

 

29.8%

 

16.8%

 

14.3%

 

18.1%

 

 

 

13.0%

(1)

Unallocated Revenues consist of occasional one-off sales in our core competencies not allocated to any of our segments.

(2)

Unallocated segment EBITDA consists of corporate research and development, corporate headquarter costs and other operating income (expense), and the added share-based compensation expenses and acquisition-related expenses of business combinations that are included in Adjusted EBITDA.

Reconciliation of Net Profit (Loss) to Segment EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months
ended September 30,

 

 

 

 

 

For the nine months
ended September 30,

 

In 000

 

2020

 

 

2019

 

 

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net profit (loss) for the period

 

 

(366)

 

 

 

1,001

 

 

 

 

 

 

 

(5,152)

 

 

 

397

 

Income taxes

 

 

(764)

 

 

 

908

 

 

 

 

 

 

 

(497)

 

 

 

2,037

 

Financial cost

 

 

2,462

 

 

 

1,138

 

 

 

 

 

 

 

4,923

 

 

 

2,647

 

Financial income

 

 

(1,131

)

 

 

(172)

 

 

 

 

 

 

 

(1,976)

 

 

 

(900)

 

Share in loss of joint venture

 

 

 

 

 

 

41

 

 

 

 

 

 

 

39

 

 

 

245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

 

201

 

 

 

2,916

 

 

 

 

 

 

 

(2,663)

 

 

 

4,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

4,922

 

 

 

4,904

 

 

 

 

 

 

 

14,616

 

 

 

14,082

 

Corporate research and development

 

 

668

 

 

 

497

 

 

 

 

 

 

 

2,052

 

 

 

1,510

 

Corporate headquarter costs

 

 

3,271

 

 

 

2,978

 

 

 

 

 

 

 

8,360

 

 

 

8,753

 

Other operating income (expense)

 

 

(764)

 

 

 

(726)

 

 

 

 

 

 

 

(2,303)

 

 

 

(1,833)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

8,298

 

 

 

10,426

 

 

 

 

 

 

 

20,063

 

 

 

26,484

 

 

 

Investor Relations
Harriet Fried
LHA
212.838.3777
hfried@lhai.com

Source: Materialise NV