Protolabs Reports Financial Results for the Fourth Quarter and Full Year 2022

About Protolabs

Protolabs is the fastest and most comprehensive digital manufacturing service in the world. Our digital factories produce low-volume parts in days while our supply network powered by Hubs unlocks advanced capabilities and volume pricing at higher quantities. The result? One manufacturing source—from prototyping to production—for product developers, engineers, and supply chain teams across the globe. See what's next at protolabs.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on Protolabs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.

 

Proto Labs, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

56,558

 

 

$

65,929

 

Short-term marketable securities

 

 

23,568

 

 

 

11,580

 

Accounts receivable, net

 

 

76,225

 

 

 

80,051

 

Inventory

 

 

13,578

 

 

 

13,161

 

Income taxes receivable

 

 

4,042

 

 

 

1,321

 

Prepaid expenses and other current assets

 

 

12,597

 

 

 

11,450

 

Total current assets

 

 

186,568

 

 

 

183,492

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

257,785

 

 

 

280,346

 

Goodwill

 

 

273,991

 

 

 

400,610

 

Other intangible assets, net

 

 

31,250

 

 

 

37,998

 

Long-term marketable securities

 

 

26,419

 

 

 

14,340

 

Operating lease assets

 

 

3,844

 

 

 

5,578

 

Finance lease assets

 

 

17,532

 

 

 

1,898

 

Other long-term assets

 

 

4,779

 

 

 

4,320

 

Total assets

 

$

802,168

 

 

$

928,582

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

17,356

 

 

$

25,364

 

Accrued compensation

 

 

12,743

 

 

 

13,704

 

Accrued liabilities and other

 

 

22,384

 

 

 

11,980

 

Current operating lease liabilities

 

 

1,561

 

 

 

3,298

 

Current finance lease liabilities

 

 

17,537

 

 

 

550

 

Total current liabilities

 

 

71,581

 

 

 

54,896

 

 

 

 

 

 

 

 

 

 

Long-term operating lease liabilities

 

 

2,255

 

 

 

2,245

 

Long-term finance lease liabilities

 

 

-

 

 

 

1,351

 

Long-term deferred tax liabilities

 

 

26,322

 

 

 

35,892

 

Other long-term liabilities

 

 

4,362

 

 

 

5,705

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

697,648

 

 

 

828,493

 

Total liabilities and shareholders' equity

 

$

802,168

 

 

$

928,582

 

 

 

 

 

 

 

 

 

 

 

Proto Labs, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Injection Molding

 

$

44,885

 

 

$

53,905

 

 

$

200,578

 

 

$

226,117

 

CNC Machining

 

 

46,563

 

 

 

44,858

 

 

 

188,372

 

 

 

166,811

 

3D Printing

 

 

19,530

 

 

 

18,727

 

 

 

78,988

 

 

 

72,721

 

Sheet Metal

 

 

4,432

 

 

 

5,607

 

 

 

19,498

 

 

 

20,397

 

Other

 

 

197

 

 

 

485

 

 

 

962

 

 

 

2,052

 

Total revenue

 

 

115,607

 

 

 

123,582

 

 

 

488,398

 

 

 

488,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

67,000

 

 

 

68,170

 

 

 

272,933

 

 

 

265,407

 

Gross profit

 

 

48,607

 

 

 

55,412

 

 

 

215,465

 

 

 

222,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing and sales

 

 

20,517

 

 

 

20,229

 

 

 

82,752

 

 

 

82,175

 

Research and development

 

 

8,906

 

 

 

10,386

 

 

 

38,222

 

 

 

44,241

 

General and administrative

 

 

17,774

 

 

 

11,747

 

 

 

67,544

 

 

 

55,933

 

Goodwill impairment

 

 

118,008

 

 

 

-

 

 

 

118,008

 

 

 

-

 

Closure of Japan business

 

 

534

 

 

 

-

 

 

 

6,922

 

 

 

-

 

Total operating expenses

 

 

165,739

 

 

 

42,362

 

 

 

313,448

 

 

 

182,349

 

(Loss) income from operations

 

 

(117,132

)

 

 

13,050

 

 

 

(97,983

)

 

 

40,342

 

Other income (expense), net

 

 

429

 

 

 

(118

)

 

 

106

 

 

 

(158

)

(Loss) income before income taxes

 

 

(116,703

)

 

 

12,932

 

 

 

(97,877

)

 

 

40,184

 

Provision for income taxes

 

 

(1,638

)

 

 

1,022

 

 

 

5,585

 

 

 

6,812

 

Net (loss) income

 

$

(115,065

)

 

$

11,910

 

 

$

(103,462

)

 

$

33,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(4.24

)

 

$

0.43

 

 

$

(3.77

)

 

$

1.21

 

Diluted

 

$

(4.24

)

 

$

0.43

 

 

$

(3.77

)

 

$

1.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,136,821

 

 

 

27,555,357

 

 

 

27,409,838

 

 

 

27,617,627

 

Diluted

 

 

27,136,821

 

 

 

27,562,694

 

 

 

27,409,838

 

 

 

27,653,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proto Labs, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

Year Ended

 

 

December 31,

 

 

2022

 

2021

Operating activities

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(103,462

)

 

$

33,372

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

39,425

 

 

 

40,488

 

Stock-based compensation expense

 

 

17,545

 

 

 

19,095

 

Deferred taxes

 

 

(9,499

)

 

 

339

 

Changes in fair value of contingent consideration

 

 

-

 

 

 

(13,253

)

Loss on impairment of goodwill

 

 

118,008

 

 

 

-

 

Impairments related to closure of Japan business

 

 

2,842

 

 

 

-

 

Gain on disposal of property and equipment

 

 

(1,211

)

 

 

-

 

Other

 

 

35

 

 

 

842

 

Changes in operating assets and liabilities

 

 

(1,604

)

 

 

(25,641

)

Net cash provided by operating activities

 

 

62,079

 

 

 

55,242

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Purchases of property, equipment and other capital assets

 

 

(21,686

)

 

 

(34,209

)

Proceeds from sales of property, equipment and other capital assets

 

 

4,108

 

 

 

-

 

Cash used for acquisitions, net of cash acquired

 

 

-

 

 

 

(127,413

)

Purchases of marketable securities

 

 

(46,872

)

 

 

(16,159

)

Proceeds from sales of marketable securities

 

 

1,998

 

 

 

64,913

 

Proceeds from call redemptions and maturities of marketable securities

 

 

19,360

 

 

 

18,204

 

Net cash used in investing activities

 

 

(43,092

)

 

 

(94,664

)

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

Proceeds from exercises of stock options and other

 

 

3,950

 

 

 

5,862

 

Purchases of shares withheld for tax obligations

 

 

(1,682

)

 

 

(4,225

)

Repurchases of common stock

 

 

(29,659

)

 

 

(23,279

)

Principal repayments of finance lease obligations

 

 

(531

)

 

 

(552

)

Other

 

 

-

 

 

 

(4

)

Net cash used in financing activities

 

 

(27,922

)

 

 

(22,198

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(436

)

 

 

(54

)

Net decrease in cash and cash equivalents

 

 

(9,371

)

 

 

(61,674

)

Cash and cash equivalents, beginning of period

 

 

65,929

 

 

 

127,603

 

Cash and cash equivalents, end of period

 

$

56,558

 

 

$

65,929

 

 

 

 

 

 

 

 

 

 

 

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

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Non-GAAP net (loss) income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, goodwill impairment, costs related to Japan closure activities and transaction costs

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net (loss) income

 

$

(115,065

)

 

$

11,910

 

 

$

(103,462

)

 

$

33,372

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

4,210

 

 

 

3,556

 

 

 

17,545

 

 

 

19,095

 

Amortization expense

 

 

1,514

 

 

 

1,552

 

 

 

6,096

 

 

 

6,153

 

Unrealized (gain) loss on foreign currency

 

 

(490

)

 

 

215

 

 

 

252

 

 

 

556

 

Goodwill impairment

 

 

118,008

 

 

 

-

 

 

 

118,008

 

 

 

-

 

Costs related to Japan closure activities

 

 

534

 

 

 

-

 

 

 

6,922

 

 

 

-

 

Transaction costs 1

 

 

-

 

 

 

(4,705

)

 

 

-

 

 

 

(10,575

)

Total adjustments 2

 

 

123,776

 

 

 

618

 

 

 

148,823

 

 

 

15,229

 

Income tax benefits on adjustments 3

 

 

(1,753

)

 

 

(1,150

)

 

 

(4,271

)

 

 

(5,789

)

Non-GAAP net income

 

$

6,958

 

 

$

11,378

 

 

$

41,090

 

 

$

42,812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.26

 

 

$

0.41

 

 

$

1.50

 

 

$

1.55

 

Diluted

 

$

0.26

 

 

$

0.41

 

 

$

1.50

 

 

$

1.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute non-GAAP net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,136,821

 

 

 

27,555,357

 

 

 

27,409,838

 

 

 

27,617,627

 

Diluted

 

 

27,151,991

 

 

 

27,562,694

 

 

 

27,433,257

 

 

 

27,653,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, goodwill impairment, costs related to Japan closure activities and transaction costs were included in the following GAAP consolidated statement of operations categories:

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

840

 

 

$

990

 

 

$

3,541

 

 

$

3,964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing and sales

 

 

816

 

 

 

895

 

 

 

3,295

 

 

 

3,736

 

Research and development

 

 

488

 

 

 

689

 

 

 

2,190

 

 

 

2,833

 

General and administrative

 

 

3,580

 

 

 

(2,171

)

 

 

14,615

 

 

 

4,140

 

Goodwill impairment

 

 

118,008

 

 

 

-

 

 

 

118,008

 

 

 

-

 

Closure of Japan business

 

 

534

 

 

 

-

 

 

 

6,922

 

 

 

-

 

Total operating expenses

 

 

123,426

 

 

 

(587

)

 

 

145,030

 

 

 

10,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

 

(490

)

 

 

215

 

 

 

252

 

 

 

556

 

Total adjustments

 

$

123,776

 

 

$

618

 

 

$

148,823

 

 

$

15,229

 

3

For the three-month and year-ended periods ended December 31, 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

 

Year Ended

 

Three Months Ended

 

 

December 31,

 

December 31,

 

September 30,

 

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

Revenue

 

$

115,607

 

 

$

123,582

 

 

$

488,398

 

 

$

488,098

 

 

$

121,721

 

 

$

125,342

 

Gross Profit

 

 

48,607

 

 

 

55,412

 

 

 

215,465

 

 

 

222,691

 

 

 

53,632

 

 

 

55,324

 

GAAP gross margin

 

 

42.0

%

 

 

44.8

%

 

 

44.1

%

 

 

45.6

%

 

 

44.1

%

 

 

44.1

%

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

498

 

 

 

648

 

 

 

2,172

 

 

 

2,595

 

 

 

560

 

 

 

644

 

Amortization expense

 

 

342

 

 

 

342

 

 

 

1,369

 

 

 

1,369

 

 

 

342

 

 

 

342

 

Total adjustments

 

 

840

 

 

 

990

 

 

 

3,541

 

 

 

3,964

 

 

 

902

 

 

 

986

 

Non-GAAP gross profit

 

$

49,447

 

 

$

56,402

 

 

$

219,006

 

 

$

226,655

 

 

$

54,534

 

 

$

56,310

 

Non-GAAP gross margin

 

 

42.8

%

 

 

45.6

%

 

 

44.8

%

 

 

46.4

%

 

 

44.8

%

 

 

44.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Gross Margin Excluding Japan

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Revenue

 

$

115,607

 

 

$

123,582

 

 

$

488,398

 

 

$

488,098

 

Revenue excluding Japan

 

$

115,607

 

 

$

120,074

 

 

$

480,169

 

 

$

474,857

 

Gross Profit

 

 

48,607

 

 

 

55,412

 

 

 

215,465

 

 

 

222,691

 

GAAP gross margin

 

 

42.0

%

 

 

44.8

%

 

 

44.1

%

 

 

45.6

%

Less: Japan gross (loss) profit

 

 

(93

)

 

 

1,568

 

 

 

3,057

 

 

 

5,413

 

Gross Profit excluding Japan

 

 

48,700

 

 

 

53,844

 

 

 

212,408

 

 

 

217,278

 

GAAP gross margin excluding Japan

 

 

42.1

%

 

 

44.8

%

 

 

44.2

%

 

 

45.8

%

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

498

 

 

 

648

 

 

 

2,172

 

 

 

2,595

 

Amortization expense

 

 

342

 

 

 

342

 

 

 

1,369

 

 

 

1,369

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan stock-based compensation expense

 

 

-

 

 

 

26

 

 

 

61

 

 

 

96

 

Japan amortization expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total adjustments

 

 

840

 

 

 

964

 

 

 

3,480

 

 

 

3,868

 

Non-GAAP gross profit excluding Japan

 

$

49,540

 

 

$

54,808

 

 

$

215,888

 

 

$

221,146

 

Non-GAAP gross margin excluding Japan

 

 

42.9

%

 

 

45.6

%

 

 

45.0

%

 

 

46.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proto Labs, Inc.

Reconciliation of GAAP to Non-GAAP Operating Margin

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Revenue

 

$

115,607

 

 

$

123,582

 

 

$

488,398

 

 

$

488,098

 

(Loss) income from operations

 

 

(117,132

)

 

 

13,050

 

 

 

(97,983

)

 

 

40,342

 

GAAP operating margin

 

 

(101.3

)%

 

 

10.6

%

 

 

(20.1

)%

 

 

8.3

%

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

4,210

 

 

 

3,556

 

 

 

17,545

 

 

 

19,095

 

Amortization expense

 

 

1,514

 

 

 

1,552

 

 

 

6,096

 

 

 

6,153

 

Transaction costs 1

 

 

-

 

 

 

(4,705

)

 

 

-

 

 

 

(10,575

)

Goodwill impairment

 

 

118,008

 

 

 

-

 

 

 

118,008

 

 

 

-

 

Costs related to Japan closure activities

 

 

534

 

 

 

-

 

 

 

6,922

 

 

 

-

 

Total adjustments

 

 

124,266

 

 

 

403

 

 

 

148,571

 

 

 

14,673

 

Non-GAAP income from operations

 

$

7,134

 

 

$

13,453

 

 

$

50,588

 

 

$

55,015

 

Non-GAAP operating margin

 

 

6.2

%

 

 

10.9

%

 

 

10.4

%

 

 

11.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Revenue

 

$

115,607

 

 

$

123,582

 

 

$

488,398

 

 

$

488,098

 

Revenue excluding Japan

 

$

115,607

 

 

$

120,074

 

 

$

480,169

 

 

$

474,857

 

(Loss) income from operations

 

 

(117,132

)

 

 

13,050

 

 

 

(97,983

)

 

 

40,342

 

GAAP operating margin

 

 

(101.3

)%

 

 

10.6

%

 

 

(20.1

)%

 

 

8.3

%

Less: Japan (loss) income from operations

 

 

(594

)

 

 

154

 

 

 

(1,424

)

 

 

(1,020

)

(Loss) income from operations excluding Japan

 

 

(116,538

)

 

 

12,896

 

 

 

(96,559

)

 

 

41,362

 

GAAP operating margin excluding Japan

 

 

(100.8

)%

 

 

10.7

%

 

 

(20.1

)%

 

 

8.7

%

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

4,210

 

 

 

3,556

 

 

 

17,545

 

 

 

19,095

 

Amortization expense

 

 

1,514

 

 

 

1,552

 

 

 

6,096

 

 

 

6,153

 

Transaction costs 1

 

 

-

 

 

 

(4,705

)

 

 

-

 

 

 

(10,575

)

Goodwill impairment

 

 

118,008

 

 

 

-

 

 

 

118,008

 

 

 

-

 

Costs related to Japan closure activities

 

 

534

 

 

 

-

 

 

 

6,922

 

 

 

-

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan stock-based compensation expense

 

 

20

 

 

 

163

 

 

 

406

 

 

 

626

 

Japan amortization expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total adjustments

 

 

124,246

 

 

 

240

 

 

 

148,165

 

 

 

14,047

 

Non-GAAP income from operations excluding Japan

 

$

7,708

 

 

$

13,136

 

 

$

51,606

 

 

$

55,409

 

Non-GAAP operating margin excluding Japan

 

 

6.7

%

 

 

10.9

%

 

 

10.7

%

 

 

11.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Revenue

 

$

115,607

 

 

$

123,582

 

 

$

488,398

 

 

$

488,098

 

GAAP net (loss) income

 

 

(115,065

)

 

 

11,910

 

 

 

(103,462

)

 

 

33,372

 

GAAP net (loss) income margin

 

 

(99.5

)%

 

 

9.6

%

 

 

(21.2

)%

 

 

6.8

%

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization expense

 

$

1,514

 

 

$

1,552

 

 

$

6,096

 

 

$

6,153

 

Depreciation expense

 

 

7,930

 

 

 

8,705

 

 

 

33,329

 

 

 

34,335

 

Interest income, net

 

 

(509

)

 

 

(23

)

 

 

(968

)

 

 

(230

)

Tax expense

 

 

(1,638

)

 

 

1,022

 

 

 

5,585

 

 

 

6,812

 

EBITDA

 

 

(107,768

)

 

 

23,166

 

 

 

(59,420

)

 

 

80,442

 

EBITDA Margin

 

 

(93.2

)%

 

 

18.7

%

 

 

(12.2

)%

 

 

16.5

%

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

4,210

 

 

 

3,556

 

 

 

17,545

 

 

 

19,095

 

Unrealized (gain) loss on foreign currency

 

 

(490

)

 

 

215

 

 

 

252

 

 

 

556

 

Costs related to Japan closure activities

 

 

534

 

 

 

-

 

 

 

6,922

 

 

 

-

 

Goodwill impairment

 

 

118,008

 

 

 

-

 

 

 

118,008

 

 

 

-

 

Transaction costs 1

 

 

-

 

 

 

(4,705

)

 

 

-

 

 

 

(10,575

)

Total adjustments

 

 

122,262

 

 

 

(934

)

 

 

142,727

 

 

 

9,076

 

Adjusted EBITDA

 

$

14,494

 

 

$

22,232

 

 

$

83,307

 

 

$

89,518

 

Adjusted EBITDA Margin

 

 

12.5

%

 

 

18.0

%

 

 

17.1

%

 

 

18.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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
December 31, 2022

 

Three Months Ended
December 31, 2021

 

 

 

 

 

 

 

GAAP

 

Foreign
Currency1

 

Hubs
Acquisition

 

Non-GAAP

 

GAAP

 

%
Change3

 

%
Change
Organic4

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

92,278

 

 

$

-

 

 

$

-

 

 

$

92,278

 

 

$

97,934

 

 

 

(5.8)

%

 

 

(5.8

)%

Europe

 

 

23,329

 

 

 

3,216

 

 

 

-

 

 

 

26,545

 

 

 

22,140

 

 

 

5.4

 

 

 

19.9

 

Japan

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,508

 

 

 

(100.0

)

 

 

(100.0

)

Total Revenue

 

$

115,607

 

 

$

3,216

 

 

$

-

 

 

$

118,823

 

 

$

123,582

 

 

 

(6.5

)%

 

 

(3.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended
December 31, 2022

 

Year Ended
December 31, 2021

 

 

 

 

 

 

 

GAAP

 

Foreign
Currency1

 

Hubs
Acquisition2

 

Non-GAAP

 

GAAP

 

%
Change3

 

%
Change
Organic4

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

387,399

 

 

$

-

 

 

$

(1,049

)

 

$

386,350

 

 

$

384,458

 

 

 

0.8

%

 

 

0.5

%

Europe

 

 

92,770

 

 

 

10,381

 

 

 

(1,279

)

 

 

101,872

 

 

 

90,399

 

 

 

2.6

 

 

 

12.7

 

Japan

 

 

8,229

 

 

 

1,226

 

 

 

-

 

 

 

9,455

 

 

 

13,241

 

 

 

(37.9

)

 

 

(28.6

)

Total Revenue

 

$

488,398

 

 

$

11,607

 

 

$

(2,328

)

 

$

497,677

 

 

$

488,098

 

 

 

0.1

%

 

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Revenue for the three-month and year-ended periods ended December 31, 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 year-ended period ended December 31, 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-month and year-ended periods ended December 31, 2021 to GAAP revenue for the three-month and year-ended periods ended December 31, 2022.

 

 

 

4 This column presents the percentage change from GAAP revenue for the three-month and year-ended periods ended December 31, 2021 to non-GAAP revenue for the three-month and year-ended periods ended December 31, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month and year-ended periods ended December 31, 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
December 31, 2022

 

Three Months Ended
December 31, 2021

 

 

 

 

 

 

 

GAAP

 

Foreign
Currency1

 

Hubs
Acquisition

 

Non-GAAP

 

GAAP

 

%
Change3

 

%
Change
Organic4

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Injection Molding

 

$

44,885

 

 

$

1,383

 

 

$

-

 

 

$

46,268

 

 

$

53,905

 

 

 

(16.7

)%

 

 

(14.2

)%

CNC Machining

 

 

46,563

 

 

 

1,083

 

 

 

-

 

 

 

47,646

 

 

 

44,858

 

 

 

3.8

 

 

 

6.2

 

3D Printing

 

 

19,530

 

 

 

726

 

 

 

-

 

 

 

20,256

 

 

 

18,727

 

 

 

4.3

 

 

 

8.2

 

Sheet Metal

 

 

4,432

 

 

 

24

 

 

 

-

 

 

 

4,456

 

 

 

5,607

 

 

 

(21.0

)

 

 

(20.5

)

Other

 

 

197

 

 

 

-

 

 

 

-

 

 

 

197

 

 

 

485

 

 

 

(59.4

)

 

 

(59.4

)

Total Revenue

 

$

115,607

 

 

$

3,216

 

 

$

-

 

 

$

118,823

 

 

$

123,582

 

 

 

(6.5

)%

 

 

(3.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended
December 31, 2022

 

Year Ended
December 31, 2021

 

 

 

 

 

 

 

GAAP

 

Foreign
Currency1

 

Hubs
Acquisition2

 

Non-GAAP

 

GAAP

 

%
Change3

 

%
Change
Organic4

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Injection Molding

 

$

200,578

 

 

$

5,485

 

 

$

(189

)

 

$

205,874

 

 

$

226,117

 

 

 

(11.3

)%

 

 

(9.0

)%

CNC Machining

 

 

188,372

 

 

 

3,776

 

 

 

(1,637

)

 

 

190,511

 

 

 

166,811

 

 

 

12.9

 

 

 

14.2

 

3D Printing

 

 

78,988

 

 

 

2,279

 

 

 

(408

)

 

 

80,859

 

 

 

72,721

 

 

 

8.6

 

 

 

11.2

 

Sheet Metal

 

 

19,498

 

 

 

63

 

 

 

(84

)

 

 

19,477

 

 

 

20,397

 

 

 

(4.4

)

 

 

(4.5

)

Other

 

 

962

 

 

 

4

 

 

 

(10

)

 

 

956

 

 

 

2,052

 

 

 

(53.1

)

 

 

(53.4

)

Total Revenue

 

$

488,398

 

 

$

11,607

 

 

$

(2,328

)

 

$

497,677

 

 

$

488,098

 

 

 

0.1

%

 

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Revenue for the three-month and year-ended periods ended December 31, 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 year-ended period ended December 31, 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-month and year-ended periods ended December 31, 2021 to GAAP revenue for the three-month and year-ended periods ended December 31, 2022.

 

 

 

4 This column presents the percentage change from GAAP revenue for the three-month and year-ended periods ended December 31, 2021 to non-GAAP revenue for the three-month and year-ended periods ended December 31, 2022 (as recalculated using the foreign currency exchange rates in effect during the three-month and year-ended periods ended December 31, 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

 

Year Ended

 

 

December 31,

 

December 31,

 

 

2022

 

2021

 

2022

 

2021

Unique product developers and engineers served

 

 

22,205

 

 

 

23,376

 

 

 

56,333

 

 

 

55,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





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