Materialise Reports Second Quarter 2022 Results

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 one of the largest groups of software developers in the industry with one of the largest 3D printing facilities in the world. For additional information, please visit: www.materialise.com.

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 current armed conflict in Ukraine and 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 most recent 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
June 30,
for the six months ended
June 30,
In '000

2022

2022

2021(*)

2022

2021(*)

U.S.$
Revenue

60,318

 

58,070

 

50,713

 

111,032

 

96,266

 

Cost of Sales

(27,048

)

(26,040

)

(22,272

)

(50,118

)

(43,258

)

Gross Profit

33,270

 

32,030

 

28,441

 

60,914

 

53,009

 

Gross profit as % of revenue

55.2

%

55.2

%

56.1

%

54.9

%

55.1

%

 
Research and development expenses

(9,302

)

(8,955

)

(6,844

)

(16,770

)

(13,380

)

Sales and marketing expenses

(15,533

)

(14,954

)

(12,007

)

(28,469

)

(23,317

)

General and administrative expenses

(10,079

)

(9,704

)

(8,012

)

(18,148

)

(15,565

)

Net other operating income (expenses)

518

 

498

 

843

 

1,436

 

1,963

 

Operating (loss) profit

(1,126

)

(1,084

)

2,421

 

(1,036

)

2,710

 

 
Financial expenses

(1,371

)

(1,320

)

(815

)

(2,561

)

(5,515

)

Financial income

4,051

 

3,901

 

1,968

 

5,517

 

2,556

 

Share in loss of joint venture

-

 

-

 

-

 

-

 

-

 

(Loss) profit before taxes

1,554

 

1,496

 

3,574

 

1,921

 

(249

)

 
Income Taxes (*)

(623

)

(600

)

(207

)

(898

)

(27

)

Net (loss) profit for the period (*)

931

 

896

 

3,367

 

1,023

 

(275

)

Net (loss) profit attributable to:

-

 

The owners of the parent

938

 

903

 

3,367

 

1,036

 

(275

)

Non-controlling interest

(7

)

(7

)

-

 

(13

)

-

 

 
Earning per share attributable to owners of the parent
Basic (*)

0.02

 

0.02

 

0.06

 

0.02

 

(0.01

)

Diluted (*)

0.02

 

0.02

 

0.06

 

0.02

 

(0.01

)

 
Weighted average basic shares outstanding

59,064

 

59,064

 

54,873

 

59,064

 

54,521

 

Weighted average diluted shares outstanding

59,095

 

59,095

 

55,115

 

59,100

 

54,521

 

(*) The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the six months ended June 30 income taxes and net profit is (51)k€.
Impact on the year to date earnings per share is (0.01) €/share

Consolidated statements of comprehensive income (Unaudited)

 
for the three months ended
June 30,
for the six months ended
June 30,
In 000€

2022

2022

2021(*)

2022

2021(*)

U.S.$
Net profit (loss) for the period (*)

931

 

896

 

3,367

1,023

 

(275

)

Other comprehensive income
Recycling
Exchange difference on translation of foreign operations

(130

)

(125

)

929

1,291

 

1,975

 

Non-recycling
Fair value adjustments through OCI - Equity instruments

-

 

-

 

48

-

 

48

 

Other comprehensive income (loss), net of taxes

(130

)

(125

)

977

1,291

 

2,023

 

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

801

 

771

 

4,344

2,314

 

1,748

 

Total comprehensive income (loss) attributable to:
The owners of the parent

808

 

778

 

4,344

2,327

 

1,748

 

Non-controlling interests

(7

)

(7

)

-

(13

)

-

 

(*) The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the six months ended June 30 net profit is (51)k€.

Consolidated statement of financial position (Unaudited)

As of
June 30,

As of
December 31,

In 000€

2022

2021

Assets
Non-current assets
Goodwill

45,184

18,726

Intangible assets

38,168

31,668

Property, plant & equipment

86,770

84,451

Right-of-Use assets

9,089

9,054

Investments in joint ventures

-

-

Deferred tax assets

224

227

Investments in convertible loans

3,684

3,560

Investments in non-listed equity instruments

399

399

Other non-current assets

4,755

7,520

Total non-current assets

188,273

155,605

Current assets
Inventories

14,093

11,295

Trade receivables

41,840

41,541

Other current assets

7,463

8,940

Cash and cash equivalents

168,133

196,028

Total current assets

231,529

257,803

Total assets

419,803

413,408

As of
June 30,

As of
December 31,

In 000€

2022

2021

Equity and liabilities
Equity
Share capital

4,509

 

4,489

 

Share premium

238,724

 

233,872

 

Retained earnings and other reserves

(8,312

)

(5,784

)

Equity attributable to the owners of the parent

234,921

 

232,577

 

Non-controlling interest

(12

)

1

 

Total equity

234,909

 

232,578

 

Non-current liabilities
Loans & borrowings

63,804

 

72,637

 

Lease liabilities

5,345

 

5,268

 

Deferred tax liabilities

4,486

 

4,371

 

Deferred income

6,361

 

4,952

 

Other non-current liabilities

2,839

 

2,168

 

Total non-current liabilities

82,835

 

89,396

 

Current liabilities
Loans & borrowings

17,866

 

17,849

 

Lease liabilities

3,459

 

3,353

 

Trade payables

26,380

 

20,171

 

Tax payables

840

 

783

 

Deferred income

36,482

 

33,306

 

Other current liabilities

17,032

 

15,972

 

Total current liabilities

102,059

 

91,434

 

Total equity and liabilities

419,803

 

413,408

 

Consolidated statement of cash flows (Unaudited)

for the six months ended
June 30,
In 000€

2022

2021*

Operating activities
Net (loss) profit for the period (*)

1,023

 

(275

)

Non-cash and operational adjustments
Depreciation of property plant & equipment

7,630

 

7,591

 

Amortization of intangible assets

3,186

 

2,335

 

Impairment of goodwill and intangible assets

-

 

-

 

Share-based payment expense

(97

)

(774

)

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

31

 

48

 

Movement in provisions

5

 

5

 

Movement reserve for bad debt and slow moving inventory

136

 

204

 

Financial income

(5,509

)

(2,556

)

Financial expense

2,564

 

5,515

 

Impact of foreign currencies

(61

)

87

 

Share in loss (gain) of a joint venture (equity method)

-

 

-

 

(Deferred) income taxes (*)

885

 

27

 

Other non-current liabilities

-

 

-

 

Working capital adjustments

10,154

 

723

 

Decrease (increase) in trade receivables and other receivables

1,450

 

(1,528

)

Decrease (increase) in inventories and contracts in progress

(2,839

)

(1,188

)

Increase (decrease) in deferred revenue

3,658

 

2,191

 

Increase (decrease) in trade payables and other payables

7,884

 

1,248

 

Income tax paid & Interest received

(201

)

173

 

Net cash flow from operating activities

19,747

 

13,102

 

(*) The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on Net profit for the period and on (Deferred) income taxes is (51) k€.
for the six months ended
June 30,
In 000€

2022

2021

Investing activities
Purchase of property, plant & equipment

(7,494

)

(2,453

)

Purchase of intangible assets

(2,553

)

(1,562

)

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

184

 

222

 

Acquisition of subsidiary (net of cash)

(25,610

)

-

 

(Convertible) Loans granted

-

 

(4,370

)

Other equity investments in non-listed entities

-

 

-

 

Net cash flow used in investing activities

(35,474

)

(8,163

)

Financing activities
Repayment of loans & borrowings

(9,018

)

(7,219

)

Repayment of leases

(1,668

)

(1,909

)

Capital increase

-

 

74,346

 

Interest paid

(1,155

)

(1,064

)

Other financial income (expense)

604

 

1,580

 

Net cash flow from (used in) financing activities

(11,236

)

65,734

 

Net increase/(decrease) of cash & cash equivalents

(26,964

)

70,673

 

Cash & Cash equivalents at the beginning of the year

196,028

 

111,538

 

Exchange rate differences on cash & cash equivalents

(930

)

605

 

Cash & cash equivalents at end of the period

168,133

 

182,816

 

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

 
for the three months ended
June 30,
for the six months ended
June 30,
In 000€

2022

2021 (*)

2022

2021 (*)
Net profit (loss) for the period (*)

896

3,367

1,023

(275)

Income taxes (*)

600

207

898

27

Financial expenses

1,320

814

2,561

5,515

Financial income

(3,901)

(1,968)

(5,517)

(2,556)

Depreciation and amortization

5,374

4,845

10,816

9,926

Share in loss of joint venture

-

-

-

-

EBITDA

4,289

7,266

9,780

12,637

Share-based compensation expense (1)

(49)

(358)

(97)

(774)

Acquisition-related expenses of business combinations (2)

-

17

-

405

Adjusted EBITDA

4,240

6,925

9,683

12,268

(1)

Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.

(2)

Acquisition-related expenses of business combinations represents expenses incurred in connection with the acquisition of our option to buy Link3D.

(*)

The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the six months ended June 30 net profit and income taxes is (51)k€.

Segment P&L (Unaudited)

 
In 000€ Materialise
Software
Materialise
Medical
Materialise
Manufacturing
Total
segments
Unallocated
(1)
Consolidated
For the three months ended June 30, 2022
Revenues

10,642

20,855

26,574

58,070

0

58,070

Segment (adj) EBITDA

821

4,474

1,581

6,876

(2,636)

4,240

Segment (adj) EBITDA %

7.7%

21.5%

5.9%

11.8%

7.3%

For the three months ended June 30, 2021
Revenues

10,032

17,544

23,268

50,844

(131)

50,713

Segment (adj) EBITDA

3,129

4,519

1,850

9,498

(2,572)

6,925

Segment (adj) EBITDA %

31.2%

25.8%

8.0%

18.7%

13.7%

 
In 000€ Materialise
Software
Materialise
Medical
Materialise
Manufacturing
Total
segments
Unallocated
(1)
Consolidated
For the six months ended June 30, 2022
Revenues

21,125

39,201

50,705

111,032

0

111,032

Segment (adj) EBITDA

2,753

7,701

4,192

14,647

(4,963)

9,683

Segment (adj) EBITDA %

13.0%

19.6%

8.3%

13.2%

8.7%

For the six months ended June 30, 2021
Revenues

20,251

33,776

42,381

96,408

(141)

96,266

Segment (adj) EBITDA

6,558

9,060

1,706

17,324

(5,059)

12,265

Segment (adj) EBITDA %

32.4%

26.8%

4.0%

18.0%

12.7%

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

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

 
for the three months ended
June 30,
for the six months ended
June 30,
In 000€

2022

2021 (*)

2022

2021 (*)

Net profit (loss) for the period (*)

896

3,367

1,023

(275)

Income taxes (*)

600

207

898

27

Financial cost

1,320

814

2,561

5,515

Financial income

(3,901)

(1,968)

(5,517)

(2,556)

Share in loss of joint venture

-

-

-

-

 
Operating (loss) profit

(1,084)

2,420

(1,036)

2,710

 
Depreciation and amortization

5,374

4,845

10,816

9,926

Corporate research and development

816

774

1,465

1,466

Corporate headquarter costs

2,104

2,316

4,612

4,964

Other operating income (expense)

(640)

(857)

(1,211)

(1,742)

 
Segment adjusted EBITDA

6,568

9,498

14,647

17,324

(*) The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.
Impact on the six month ended June 30 net profit and income taxes is (51)k€.




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