|
|
|
|
|
|
|
Proto Labs, Inc. |
||||||
Condensed Consolidated Balance Sheets |
||||||
(In thousands) |
||||||
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
||
|
|
2022 |
|
2021 |
||
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
59,361 |
|
$ |
65,929 |
Short-term marketable securities |
|
|
25,253 |
|
|
11,580 |
Accounts receivable, net |
|
|
80,611 |
|
|
80,051 |
Inventory |
|
|
14,617 |
|
|
13,161 |
Income taxes receivable |
|
|
763 |
|
|
1,321 |
Prepaid expenses and other current assets |
|
|
11,752 |
|
|
11,450 |
Total current assets |
|
|
192,357 |
|
|
183,492 |
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
259,856 |
|
|
280,346 |
| Goodwill |
|
|
383,558 |
|
|
400,610 |
| Other intangible assets, net |
|
|
31,907 |
|
|
37,998 |
| Long-term marketable securities |
|
|
29,257 |
|
|
14,340 |
| Operating lease assets |
|
|
4,293 |
|
|
5,578 |
| Finance lease assets |
|
|
1,524 |
|
|
1,898 |
| Other long-term assets |
|
|
4,186 |
|
|
4,320 |
| Total assets |
|
$ |
906,938 |
|
$ |
928,582 |
|
|
|
|
|
|
|
|
| Liabilities and shareholders' equity |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Accounts payable |
|
$ |
16,893 |
|
$ |
25,364 |
| Accrued compensation |
|
|
15,087 |
|
|
13,704 |
| Accrued liabilities and other |
|
|
25,478 |
|
|
11,980 |
| Current operating lease liabilities |
|
|
1,773 |
|
|
3,298 |
| Current finance lease liabilities |
|
|
1,484 |
|
|
550 |
| Income taxes payable |
|
|
5 |
|
|
- |
| Total current liabilities |
|
|
60,720 |
|
|
54,896 |
|
|
|
|
|
|
|
|
| Long-term operating lease liabilities |
|
|
2,477 |
|
|
2,245 |
| Long-term finance lease liabilities |
|
|
- |
|
|
1,351 |
| Long-term deferred tax liabilities |
|
|
26,864 |
|
|
35,892 |
| Other long-term liabilities |
|
|
6,031 |
|
|
5,705 |
|
|
|
|
|
|
|
|
| Shareholders' equity |
|
|
810,846 |
|
|
828,493 |
| Total liabilities and shareholders' equity |
|
$ |
906,938 |
|
$ |
928,582 |
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Condensed Consolidated Statements of Operations |
| (In thousands, except share and per share amounts) |
| (Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||
|
|
|
September 30, |
|
September 30, |
|||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Injection Molding |
|
$ |
48,940 |
|
$ |
57,685 |
|
$ |
155,693 |
|
|
$ |
172,212 |
| CNC Machining |
|
|
47,489 |
|
|
43,658 |
|
|
141,809 |
|
|
|
121,953 |
| 3D Printing |
|
|
19,823 |
|
|
18,589 |
|
|
59,458 |
|
|
|
53,994 |
| Sheet Metal |
|
|
5,219 |
|
|
4,854 |
|
|
15,066 |
|
|
|
14,790 |
| Other |
|
|
250 |
|
|
556 |
|
|
765 |
|
|
|
1,567 |
| Total revenue |
|
|
121,721 |
|
|
125,342 |
|
|
372,791 |
|
|
|
364,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
|
68,089 |
|
|
70,018 |
|
|
205,933 |
|
|
|
197,237 |
| Gross profit |
|
|
53,632 |
|
|
55,324 |
|
|
166,858 |
|
|
|
167,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing and sales |
|
|
20,594 |
|
|
21,422 |
|
|
62,235 |
|
|
|
61,946 |
| Research and development |
|
|
9,309 |
|
|
10,614 |
|
|
29,316 |
|
|
|
33,855 |
| General and administrative |
|
|
16,477 |
|
|
16,361 |
|
|
49,770 |
|
|
|
44,186 |
| Closure of Japan business |
|
|
1,194 |
|
|
- |
|
|
6,388 |
|
|
|
- |
| Total operating expenses |
|
|
47,574 |
|
|
48,397 |
|
|
147,709 |
|
|
|
139,987 |
| Income from operations |
|
|
6,058 |
|
|
6,927 |
|
|
19,149 |
|
|
|
27,292 |
| Other income (loss), net |
|
|
(24) |
|
|
136 |
|
|
(323 |
) |
|
|
(40) |
| Income before income taxes |
|
|
6,034 |
|
|
7,063 |
|
|
18,826 |
|
|
|
27,252 |
| Provision for income taxes |
|
|
2,083 |
|
|
2,228 |
|
|
7,223 |
|
|
|
5,790 |
| Net income |
|
$ |
3,951 |
|
$ |
4,835 |
|
$ |
11,603 |
|
|
$ |
21,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.14 |
|
$ |
0.17 |
|
$ |
0.42 |
|
|
$ |
0.78 |
| Diluted |
|
$ |
0.14 |
|
$ |
0.17 |
|
$ |
0.42 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used to compute net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
27,505,097 |
|
|
27,713,229 |
|
|
27,512,057 |
|
|
|
27,638,611 |
| Diluted |
|
|
27,508,217 |
|
|
27,730,105 |
|
|
27,522,734 |
|
|
|
27,707,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Condensed Consolidated Statements of Cash Flows |
| (In thousands) |
| (Unaudited) |
|
|
|
Nine Months Ended |
||||||
|
|
|
September 30, |
||||||
|
|
|
2022 |
|
2021 |
||||
| Operating activities |
|
|
|
|
|
|
||
| Net income |
|
$ |
11,603 |
|
|
$ |
21,462 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
| Depreciation and amortization |
|
|
29,981 |
|
|
|
30,231 |
|
| Stock-based compensation expense |
|
|
13,335 |
|
|
|
15,539 |
|
| Deferred taxes |
|
|
(8,920 |
) |
|
|
(139 |
) |
| Changes in fair value of contingent consideration |
|
|
- |
|
|
|
(8,513 |
) |
| Impairments related to closure of Japan business |
|
|
2,842 |
|
|
|
- |
|
| Gain on disposal of property and equipment |
|
|
(1,174 |
) |
|
|
- |
|
| Other |
|
|
11 |
|
|
|
442 |
|
| Changes in operating assets and liabilities |
|
|
3,886 |
|
|
|
(26,797 |
) |
| Net cash provided by operating activities |
|
|
51,564 |
|
|
|
32,225 |
|
|
|
|
|
|
|
|
|
||
| Investing activities |
|
|
|
|
|
|
||
| Purchases of property, equipment and other capital assets |
|
|
(16,414 |
) |
|
|
(27,956 |
) |
| Proceeds from sales of property, equipment and other capital assets |
|
|
3,227 |
|
|
|
- |
|
| Cash used for acquisitions, net of cash acquired |
|
|
- |
|
|
|
(127,413 |
) |
| Purchases of marketable securities |
|
|
(45,872 |
) |
|
|
(15,159 |
) |
| Proceeds from sales of marketable securities |
|
|
1,998 |
|
|
|
57,089 |
|
| Proceeds from call redemptions and maturities of marketable securities |
|
|
13,696 |
|
|
|
15,114 |
|
| Net cash used in investing activities |
|
|
(43,365 |
) |
|
|
(98,325 |
) |
|
|
|
|
|
|
|
|
||
| Financing activities |
|
|
|
|
|
|
||
| Proceeds from exercises of stock options and other |
|
|
2,311 |
|
|
|
3,838 |
|
| Purchases of shares withheld for tax obligations |
|
|
(1,615 |
) |
|
|
(4,209 |
) |
| Repurchases of common stock |
|
|
(13,074 |
) |
|
|
(13,036 |
) |
| Principal repayments of finance lease obligations |
|
|
(417 |
) |
|
|
(413 |
) |
| Net cash used in financing activities |
|
|
(12,795 |
) |
|
|
(13,820 |
) |
| Effect of exchange rate changes on cash and cash equivalents |
|
|
(1,972 |
) |
|
|
119 |
|
| Net decrease in cash and cash equivalents |
|
|
(6,568 |
) |
|
|
(79,801 |
) |
| Cash and cash equivalents, beginning of period |
|
|
65,929 |
|
|
|
127,603 |
|
| Cash and cash equivalents, end of period |
|
$ |
59,361 |
|
|
$ |
47,802 |
|
|
|
|
|
|
|
|
|
||
| Proto Labs, Inc. |
| Reconciliation of GAAP to Non-GAAP Net Income per Share |
| (In thousands, except share and per share amounts) |
| (Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
| Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure activities and transaction costs |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| GAAP net income |
|
$ |
3,951 |
|
|
$ |
4,835 |
|
|
$ |
11,603 |
|
|
$ |
21,462 |
|
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Stock-based compensation expense |
|
|
4,907 |
|
|
|
4,978 |
|
|
|
13,335 |
|
|
|
15,539 |
|
| Amortization expense |
|
|
1,510 |
|
|
|
1,568 |
|
|
|
4,582 |
|
|
|
4,601 |
|
| Unrealized (gain) loss on foreign currency |
|
|
382 |
|
|
|
121 |
|
|
|
742 |
|
|
|
341 |
|
| Costs related to Japan closure activities |
|
|
1,194 |
|
|
|
- |
|
|
|
6,388 |
|
|
|
- |
|
| Transaction costs 1 |
|
|
- |
|
|
|
(730 |
) |
|
|
- |
|
|
|
(5,870 |
) |
| Total adjustments 2 |
|
|
7,993 |
|
|
|
5,937 |
|
|
|
25,047 |
|
|
|
14,611 |
|
| Income tax benefits on adjustments 3 |
|
|
(1,060 |
) |
|
|
(1,063 |
) |
|
|
(2,518 |
) |
|
|
(4,639 |
) |
| Non-GAAP net income |
|
$ |
10,884 |
|
|
$ |
9,709 |
|
|
$ |
34,132 |
|
|
$ |
31,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Non-GAAP net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Basic |
|
$ |
0.40 |
|
|
$ |
0.35 |
|
|
$ |
1.24 |
|
|
$ |
1.14 |
|
| Diluted |
|
$ |
0.40 |
|
|
$ |
0.35 |
|
|
$ |
1.24 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Shares used to compute non-GAAP net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Basic |
|
|
27,505,097 |
|
|
|
27,713,229 |
|
|
|
27,512,057 |
|
|
|
27,638,611 |
|
| Diluted |
|
|
27,508,217 |
|
|
|
27,730,105 |
|
|
|
27,522,734 |
|
|
|
27,707,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
| 1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. |
|
|
| 2 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, costs related to Japan closure activities and transaction costs were included in the following GAAP consolidated statement of operations categories: |
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
September 30, |
|
September 30, |
||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
$ |
902 |
|
$ |
986 |
|
$ |
2,701 |
|
$ |
2,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Marketing and sales |
|
|
929 |
|
|
1,059 |
|
|
2,479 |
|
|
2,841 |
| Research and development |
|
|
602 |
|
|
776 |
|
|
1,702 |
|
|
2,144 |
| General and administrative |
|
|
3,984 |
|
|
2,995 |
|
|
11,035 |
|
|
6,311 |
| Closure of Japan business |
|
|
1,194 |
|
|
- |
|
|
6,388 |
|
|
- |
| Total operating expenses |
|
|
6,709 |
|
|
4,830 |
|
|
21,604 |
|
|
11,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other (income) expense, net |
|
|
382 |
|
|
121 |
|
|
742 |
|
|
341 |
| Total adjustments |
|
$ |
7,993 |
|
$ |
5,937 |
|
$ |
25,047 |
|
$ |
14,611 |
| 3 For the three- and nine-month periods ended September 30, 2022 and 2021, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. The Company's non-GAAP tax rates differ from its GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter. |
||||||
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Reconciliation of GAAP to Non-GAAP Gross Margin |
| (In thousands) |
| (Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
Three Months Ended |
||||||||||||||||||
|
|
|
September 30, |
|
September 30, |
|
June 30, |
||||||||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||||
| Revenue |
|
$ |
121,721 |
|
|
$ |
125,342 |
|
|
$ |
372,791 |
|
|
$ |
364,516 |
|
|
$ |
126,902 |
|
|
$ |
123,048 |
|
| Gross Profit |
|
|
53,632 |
|
|
|
55,324 |
|
|
|
166,858 |
|
|
|
167,279 |
|
|
|
57,422 |
|
|
|
56,625 |
|
| GAAP gross margin |
|
|
44.1 |
% |
|
|
44.1 |
% |
|
|
44.8 |
% |
|
|
45.9 |
% |
|
|
45.2 |
% |
|
|
46.0 |
% |
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
| Stock-based compensation expense |
|
|
560 |
|
|
|
644 |
|
|
|
1,674 |
|
|
|
1,947 |
|
|
|
528 |
|
|
|
668 |
|
| Amortization expense |
|
|
342 |
|
|
|
342 |
|
|
|
1,027 |
|
|
|
1,027 |
|
|
|
342 |
|
|
|
343 |
|
| Total adjustments |
|
|
902 |
|
|
|
986 |
|
|
|
2,701 |
|
|
|
2,974 |
|
|
|
870 |
|
|
|
1,011 |
|
| Non-GAAP gross profit |
|
$ |
54,534 |
|
|
$ |
56,310 |
|
|
$ |
169,559 |
|
|
$ |
170,253 |
|
|
$ |
58,292 |
|
|
$ |
57,636 |
|
| Non-GAAP gross margin |
|
|
44.8 |
% |
|
|
44.9 |
% |
|
|
45.5 |
% |
|
|
46.7 |
% |
|
|
45.9 |
% |
|
|
46.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
| Proto Labs, Inc. |
| Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan |
| (In thousands) |
| (Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
| Revenue |
|
$ |
121,721 |
|
|
$ |
125,342 |
|
|
$ |
372,791 |
|
|
$ |
364,516 |
|
| Revenue excluding Japan |
|
$ |
120,434 |
|
|
$ |
122,282 |
|
|
$ |
364,562 |
|
|
$ |
354,783 |
|
| Gross Profit |
|
|
53,632 |
|
|
|
55,324 |
|
|
|
166,858 |
|
|
|
167,279 |
|
| GAAP gross margin |
|
|
44.1 |
% |
|
|
44.1 |
% |
|
|
44.8 |
% |
|
|
45.9 |
% |
| Less: Japan gross profit |
|
|
47 |
|
|
|
1,151 |
|
|
|
3,150 |
|
|
|
3,845 |
|
| Gross Profit excluding Japan |
|
|
53,585 |
|
|
|
54,173 |
|
|
|
163,708 |
|
|
|
163,434 |
|
| GAAP gross margin excluding Japan |
|
|
44.5 |
% |
|
|
44.3 |
% |
|
|
44.9 |
% |
|
|
46.1 |
% |
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Stock-based compensation expense |
|
|
560 |
|
|
|
644 |
|
|
|
1,674 |
|
|
|
1,947 |
|
| Amortization expense |
|
|
342 |
|
|
|
342 |
|
|
|
1,027 |
|
|
|
1,027 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Japan stock-based compensation expense |
|
|
13 |
|
|
|
26 |
|
|
|
61 |
|
|
|
70 |
|
| Japan amortization expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Total adjustments |
|
|
889 |
|
|
|
960 |
|
|
|
2,640 |
|
|
|
2,904 |
|
| Non-GAAP gross profit excluding Japan |
|
$ |
54,474 |
|
|
$ |
55,133 |
|
|
$ |
166,348 |
|
|
$ |
166,338 |
|
| Non-GAAP gross margin excluding Japan |
|
|
45.2 |
% |
|
|
45.1 |
% |
|
|
45.6 |
% |
|
|
46.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Proto Labs, Inc. |
| Reconciliation of GAAP to Non-GAAP Operating Margin |
| (In thousands) |
| (Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
| Revenue |
|
$ |
121,721 |
|
|
$ |
125,342 |
|
|
$ |
372,791 |
|
|
$ |
364,516 |
|
| Income from operations |
|
|
6,058 |
|
|
|
6,927 |
|
|
|
19,149 |
|
|
|
27,292 |
|
| GAAP operating margin |
|
|
5.0 |
% |
|
|
5.5 |
% |
|
|
5.1 |
% |
|
|
7.5 |
% |
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Stock-based compensation expense |
|
|
4,907 |
|
|
|
4,978 |
|
|
|
13,335 |
|
|
|
15,539 |
|
| Amortization expense |
|
|
1,510 |
|
|
|
1,568 |
|
|
|
4,582 |
|
|
|
4,601 |
|
| Transaction costs 1 |
|
|
- |
|
|
|
(730 |
) |
|
|
- |
|
|
|
(5,870 |
) |
| Costs related to Japan closure activities |
|
|
1,194 |
|
|
|
- |
|
|
|
6,388 |
|
|
|
- |
|
| Total adjustments |
|
|
7,611 |
|
|
|
5,816 |
|
|
|
24,305 |
|
|
|
14,270 |
|
| Non-GAAP income from operations |
|
$ |
13,669 |
|
|
$ |
12,743 |
|
|
$ |
43,454 |
|
|
$ |
41,562 |
|
| Non-GAAP operating margin |
|
|
11.2 |
% |
|
|
10.2 |
% |
|
|
11.7 |
% |
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
| 1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. |
|||||||
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Reconciliation of GAAP to Non-GAAP Operating Margin Excluding Japan |
| (In thousands) |
| (Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
| Revenue |
|
$ |
121,721 |
|
|
$ |
125,342 |
|
|
$ |
372,791 |
|
|
$ |
364,516 |
|
| Revenue excluding Japan |
|
$ |
120,434 |
|
|
$ |
122,282 |
|
|
$ |
364,562 |
|
|
$ |
354,783 |
|
| Income from operations |
|
|
6,058 |
|
|
|
6,927 |
|
|
|
19,149 |
|
|
|
27,292 |
|
| GAAP operating margin |
|
|
5.0 |
% |
|
|
5.5 |
% |
|
|
5.1 |
% |
|
|
7.5 |
% |
| Less: Japan income from operations |
|
|
(724 |
) |
|
|
(521 |
) |
|
|
(720 |
) |
|
|
(1,174 |
) |
| Income from operations excluding Japan |
|
|
6,782 |
|
|
|
7,448 |
|
|
|
19,869 |
|
|
|
28,466 |
|
| GAAP operating margin excluding Japan |
|
|
5.6 |
% |
|
|
6.1 |
% |
|
|
5.5 |
% |
|
|
8.0 |
% |
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Stock-based compensation expense |
|
|
4,907 |
|
|
|
4,978 |
|
|
|
13,335 |
|
|
|
15,539 |
|
| Amortization expense |
|
|
1,510 |
|
|
|
1,568 |
|
|
|
4,582 |
|
|
|
4,601 |
|
| Transaction costs 1 |
|
|
- |
|
|
|
(730 |
) |
|
|
- |
|
|
|
(5,870 |
) |
| Costs related to Japan closure activities |
|
|
1,194 |
|
|
|
- |
|
|
|
6,388 |
|
|
|
- |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Japan stock-based compensation expense |
|
|
89 |
|
|
|
160 |
|
|
|
386 |
|
|
|
464 |
|
| Japan amortization expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Total adjustments |
|
|
7,522 |
|
|
|
5,656 |
|
|
|
23,919 |
|
|
|
13,806 |
|
| Non-GAAP income from operations excluding Japan |
|
$ |
14,304 |
|
|
$ |
13,104 |
|
|
$ |
43,788 |
|
|
$ |
42,272 |
|
| Non-GAAP operating margin excluding Japan |
|
|
11.9 |
% |
|
|
10.7 |
% |
|
|
12.0 |
% |
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
| 1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA |
| (In thousands) |
| (Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
| Revenue |
|
$ |
121,721 |
|
|
$ |
125,342 |
|
|
$ |
372,791 |
|
|
$ |
364,516 |
|
| GAAP net income |
|
|
3,951 |
|
|
|
4,835 |
|
|
|
11,603 |
|
|
|
21,462 |
|
| GAAP net income margin |
|
|
3.2 |
% |
|
|
3.9 |
% |
|
|
3.1 |
% |
|
|
5.9 |
% |
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Amortization expense |
|
$ |
1,510 |
|
|
$ |
1,568 |
|
|
$ |
4,582 |
|
|
$ |
4,601 |
|
| Depreciation expense |
|
|
8,197 |
|
|
|
8,536 |
|
|
|
25,399 |
|
|
|
25,630 |
|
| Interest income, net |
|
|
(265 |
) |
|
|
(55 |
) |
|
|
(459 |
) |
|
|
(207 |
) |
| Tax expense |
|
|
2,083 |
|
|
|
2,228 |
|
|
|
7,223 |
|
|
|
5,790 |
|
| EBITDA |
|
|
15,476 |
|
|
|
17,112 |
|
|
|
48,348 |
|
|
|
57,276 |
|
| EBITDA Margin |
|
|
12.7 |
% |
|
|
13.7 |
% |
|
|
13.0 |
% |
|
|
15.7 |
% |
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Stock-based compensation expense |
|
|
4,907 |
|
|
|
4,978 |
|
|
|
13,335 |
|
|
|
15,539 |
|
| Unrealized (gain) loss on foreign currency |
|
|
382 |
|
|
|
121 |
|
|
|
742 |
|
|
|
341 |
|
| Costs related to Japan closure activities |
|
|
1,194 |
|
|
|
- |
|
|
|
6,388 |
|
|
|
- |
|
| Transaction costs 1 |
|
|
- |
|
|
|
(730 |
) |
|
|
- |
|
|
|
(5,870 |
) |
| Total adjustments |
|
|
6,483 |
|
|
|
4,369 |
|
|
|
20,465 |
|
|
|
10,010 |
|
| Adjusted EBITDA |
|
$ |
21,959 |
|
|
$ |
21,481 |
|
|
$ |
68,813 |
|
|
$ |
67,286 |
|
| Adjusted EBITDA Margin |
|
|
18.0 |
% |
|
|
17.1 |
% |
|
|
18.5 |
% |
|
|
18.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Transaction costs include direct costs incurred in the Company's acquisition of Hubs, Inc. and the impact of changes in the fair value of acquisition-related contingent consideration obligations. |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Comparison of GAAP to Non-GAAP Revenue Growth by Region |
| (In thousands) |
| (Unaudited) |
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
% |
|
% |
|||||||||||||||
|
|
|
GAAP |
|
Foreign Currency1 |
|
Hubs Acquisition |
|
Non-GAAP |
|
GAAP |
|
Change3 |
|
Change Organic4 |
|||||||||
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| United States |
|
$ |
98,970 |
|
$ |
- |
|
$ |
- |
|
$ |
98,970 |
|
$ |
100,127 |
|
|
(1.2 |
)% |
|
|
(1.2 |
)% |
| Europe |
|
|
21,464 |
|
|
3,789 |
|
|
- |
|
|
25,253 |
|
|
22,155 |
|
|
(3.1 |
) |
|
|
14.0 |
|
| Japan |
|
|
1,287 |
|
|
310 |
|
|
- |
|
|
1,597 |
|
|
3,060 |
|
|
(57.9 |
) |
|
|
(47.8 |
) |
| Total Revenue |
|
$ |
121,721 |
|
$ |
4,099 |
|
$ |
- |
|
$ |
125,820 |
|
$ |
125,342 |
|
|
(2.9 |
)% |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
% |
|
% |
||||||||||||||||
|
|
|
GAAP |
|
Foreign Currency1 |
|
Hubs Acquisition2 |
|
Non-GAAP |
|
GAAP |
|
Change3 |
|
Change Organic4 |
||||||||||
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| United States |
|
$ |
295,121 |
|
$ |
- |
|
$ |
(1,049 |
) |
|
$ |
294,072 |
|
$ |
286,524 |
|
|
3.0 |
% |
|
|
2.6 |
% |
| Europe |
|
|
69,441 |
|
|
7,165 |
|
|
(1,279 |
) |
|
|
75,327 |
|
|
68,259 |
|
|
1.7 |
|
|
|
10.4 |
|
| Japan |
|
|
8,229 |
|
|
1,226 |
|
|
- |
|
|
|
9,455 |
|
|
9,733 |
|
|
(15.5 |
) |
|
|
(2.9 |
) |
| Total Revenue |
|
$ |
372,791 |
|
$ |
8,391 |
|
$ |
(2,328 |
) |
|
$ |
378,854 |
|
$ |
364,516 |
|
|
2.3 |
% |
|
|
3.9 |
% |
| 1 Revenue for the three- and nine-month periods ended September 30, 2022 has been recalculated using 2021 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. |
|||||||||||
|
|
|||||||||||
| 2 Revenue for the nine-month period ended September 30, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date. |
|||||||||||
|
|
|||||||||||
| 3 This column presents the percentage change from GAAP revenue for the three- and nine-month periods ended September 30, 2021 to GAAP revenue for the three- and nine-month periods ended September 30, 2022. |
|||||||||||
|
|
|||||||||||
| 4 This column presents the percentage change from GAAP revenue for the three- and nine-month periods ended September 30, 2021 to non-GAAP revenue for the three- and nine-month periods ended September 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three- and nine-month periods ended September 30, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison. |
|||||||||||
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Comparison of GAAP to Non-GAAP Revenue Growth by Service Line |
| (In thousands) |
| (Unaudited) |
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
% |
|
% |
|||||||||||||||
|
|
|
GAAP |
|
Foreign Currency1 |
|
Hubs Acquisition |
|
Non-GAAP |
|
GAAP |
|
Change3 |
|
Change Organic4 |
|||||||||
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Injection Molding |
|
$ |
48,940 |
|
$ |
1,677 |
|
$ |
- |
|
$ |
50,617 |
|
$ |
57,685 |
|
|
(15.2 |
)% |
|
|
(12.3 |
)% |
| CNC Machining |
|
|
47,489 |
|
|
1,580 |
|
|
- |
|
|
49,069 |
|
|
43,658 |
|
|
8.8 |
|
|
|
12.4 |
|
| 3D Printing |
|
|
19,823 |
|
|
803 |
|
|
- |
|
|
20,626 |
|
|
18,589 |
|
|
6.6 |
|
|
|
11.0 |
|
| Sheet Metal |
|
|
5,219 |
|
|
39 |
|
|
- |
|
|
5,258 |
|
|
4,854 |
|
|
7.5 |
|
|
|
8.3 |
|
| Other |
|
|
250 |
|
|
- |
|
|
- |
|
|
250 |
|
|
556 |
|
|
(55.0 |
) |
|
|
(55.0 |
) |
| Total Revenue |
|
$ |
121,721 |
|
$ |
4,099 |
|
$ |
- |
|
$ |
125,820 |
|
$ |
125,342 |
|
|
(2.9 |
)% |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
% |
|
% |
||||||||||||||||
|
|
|
GAAP |
|
Foreign Currency1 |
|
Hubs Acquisition2 |
|
Non-GAAP |
|
GAAP |
|
Change3 |
|
Change Organic4 |
||||||||||
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Injection Molding |
|
$ |
155,693 |
|
$ |
4,102 |
|
$ |
(189 |
) |
|
$ |
159,606 |
|
$ |
172,212 |
|
|
(9.6 |
)% |
|
|
(7.3 |
)% |
| CNC Machining |
|
|
141,809 |
|
|
2,693 |
|
|
(1,637 |
) |
|
|
142,865 |
|
|
121,953 |
|
|
16.3 |
|
|
|
17.1 |
|
| 3D Printing |
|
|
59,458 |
|
|
1,553 |
|
|
(408 |
) |
|
|
60,603 |
|
|
53,994 |
|
|
10.1 |
|
|
|
12.2 |
|
| Sheet Metal |
|
|
15,066 |
|
|
39 |
|
|
(84 |
) |
|
|
15,021 |
|
|
14,790 |
|
|
1.9 |
|
|
|
1.6 |
|
| Other |
|
|
765 |
|
|
4 |
|
|
(10 |
) |
|
|
759 |
|
|
1,567 |
|
|
(51.2 |
) |
|
|
(51.6 |
) |
| Total Revenue |
|
$ |
372,791 |
|
$ |
8,391 |
|
$ |
(2,328 |
) |
|
$ |
378,854 |
|
$ |
364,516 |
|
|
2.3 |
% |
|
|
3.9 |
% |
| 1 Revenue for the three- and nine-month periods ended September 30, 2022 has been recalculated using 2021 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. |
|||||||||||
|
|
|||||||||||
| 2 Revenue for the nine-month period ended September 30, 2022 has been recalculated to exclude revenue earned from the Company's acquisition of Hubs, Inc. for the period from January 1, 2022 to January 21, 2022 to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. The Hubs, Inc. acquisition occurred on January 22, 2021 and was included in 2021 revenue after that date. |
|||||||||||
|
|
|||||||||||
| 3 This column presents the percentage change from GAAP revenue for the three- and nine-month periods ended September 30, 2021 to GAAP revenue for the three- and nine-month periods ended September 30, 2022. |
|||||||||||
|
|
|||||||||||
| 4 This column presents the percentage change from GAAP revenue for the three- and nine-month periods ended September 30, 2021 to non-GAAP revenue for the three- and nine-month periods ended September 30, 2022 (as recalculated using the foreign currency exchange rates in effect during the three- and nine-month periods ended September 30, 2021, excluding the impact of Hubs, Inc. acquisition) in order to provide a constant-currency comparison. |
|||||||||||
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proto Labs, Inc. |
| Product Developer Information |
| (Unaudited) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
September 30, |
|
September 30, |
||||||||
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
| Unique product developers and engineers served |
|
|
23,816 |
|
|
23,457 |
|
|
47,793 |
|
|
46,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
