Materialise Reports First Quarter 2023 Results

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 current estimates for fiscal 2023 revenue and Adjusted EBITDA, 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 ongoing military conflict between Ukraine and Russia and economic sanctions related thereto as well as by inflation and increased labor, energy and materials costs), 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
March 31,
In '000

2023

2023

2022

U.S.$
Revenue

71,651

65,886

52,961

Cost of Sales

(31,591)

(29,049)

(24,078)

Gross Profit

40,060

36,837

28,884

Gross profit as % of revenue

55.9%

55.9%

54.5%

 
Research and development expenses

(9,802)

(9,014)

(7,814)

Sales and marketing expenses

(15,539)

(14,288)

(13,515)

General and administrative expenses

(9,848)

(9,056)

(8,444)

Net other operating income (expenses)

565

519

938

Operating (loss) profit

5,436

4,998

49

 
Financial expenses

(1,495)

(1,375)

(1,289)

Financial income

880

809

1,665

Share in loss of joint venture

-

-

-

(Loss) profit before taxes

4,821

4,432

425

 
Income Taxes

(780)

(718)

(298)

Net (loss) profit for the period

4,041

3,715

127

Net (loss) profit attributable to:

-

The owners of the parent

4,047

3,721

134

Non-controlling interest

(7)

(7)

(7)

 
Earning per share attributable to owners of the parent
Basic

0.07

0.06

0.00

Diluted

0.07

0.06

0.00

 
Weighted average basic shares outstanding

59,067

59,067

59,064

Weighted average diluted shares outstanding

59,070

59,070

59,102

Consolidated statements of comprehensive income (Unaudited)

 
for the three months ended
March 31,
In 000€

2023

2023

2022

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

4,041

3,715

127

Other comprehensive income
Recycling
Exchange difference on translation of foreign operations

843

776

1,416

Non-recycling
Fair value adjustments through OCI - Equity instruments

-

-

-

Other comprehensive income (loss), net of taxes

843

776

1,416

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

4,883

4,490

1,543

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

4,890

4,496

1,549

Non-controlling interests

(6)

(6)

(7)

Consolidated statement of financial position (Unaudited)

 
As of
March 31,
As of
December 31,
In 000€

2023

2022

Assets
Non-current assets
Goodwill

44,196

44,155

Intangible assets

36,944

37,875

Property, plant & equipment

94,462

94,276

Right-of-Use assets

8,323

8,420

Investments in joint ventures

-

-

Deferred tax assets

1,208

1,186

Investments in convertible loans

3,555

3,494

Investments in non-listed equity instruments

307

307

Other non-current assets

5,414

5,136

Total non-current assets

194,409

194,847

Current assets
Inventories

15,810

16,081

Trade receivables

47,780

51,043

Other current assets

8,114

8,424

Cash and cash equivalents

141,720

140,867

Total current assets

213,423

216,414

Total assets

407,833

411,262

As of
March 31,
As of
December 31,
In 000€

2023

2022

Equity and liabilities
Equity
Share capital

4,487

4,487

Share premium

233,895

233,895

Retained earnings and other reserves

(5,097)

(9,427)

Equity attributable to the owners of the parent

233,285

228,955

Non-controlling interest

(34)

(28)

Total equity

233,251

228,928

Non-current liabilities
Loans & borrowings

51,035

55,873

Lease liabilities

4,964

5,147

Deferred tax liabilities

4,167

4,312

Deferred income

8,858

9,277

Other non-current liabilities

504

1,611

Total non-current liabilities

69,528

76,220

Current liabilities
Loans & borrowings

16,328

17,058

Lease liabilities

2,924

2,902

Trade payables

23,776

23,230

Tax payables

1,922

1,246

Deferred income

43,474

41,721

Other current liabilities

16,630

19,957

Total current liabilities

105,054

106,114

Total equity and liabilities

407,833

411,262

Consolidated statement of cash flows (Unaudited)

 
for the three months ended
March 31,
In 000€

2023

2022

Operating activities
Net (loss) profit for the period

3,715

127

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

3,637

3,840

Amortization of intangible assets

1,674

1,602

Impairment of goodwill and intangible assets

-

-

Share-based payment expense

-

(48)

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

(22)

(18)

Movement in provisions

(618)

2

Movement reserve for bad debt and slow moving inventory

109

130

Financial income

(767)

(1,618)

Financial expense

1,375

1,237

Impact of foreign currencies

6

(28)

(Deferred) income taxes

717

302

Working capital adjustments

850

5,923

Decrease (increase) in trade receivables and other receivables

3,363

4,506

Decrease (increase) in inventories and contracts in progress

262

(1,357)

Increase (decrease) in deferred revenue

1,368

3,665

Increase (decrease) in trade payables and other payables

(4,142)

(891)

Income tax paid & Interest received

367

(341)

Net cash flow from operating activities

11,044

11,111

for the three months ended
March 31,
In 000€

2023

2022

Investing activities
Purchase of property, plant & equipment

(2,532)

(2,376)

Purchase of intangible assets

(738)

(1,123)

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

100

93

Acquisition of subsidiary (net of cash)

-

(27,414)

Net cash flow used in investing activities

(3,171)

(30,820)

Financing activities
Repayment of loans & borrowings

(5,635)

(5,969)

Repayment of leases

(859)

(881)

Interest paid

(417)

(515)

Other financial income (expense)

(108)

(89)

Net cash flow from (used in) financing activities

(7,019)

(7,452)

Net increase/(decrease) of cash & cash equivalents

854

(27,161)

Cash & Cash equivalents at the beginning of the year

140,867

196,028

Exchange rate differences on cash & cash equivalents

(1)

743

Cash & cash equivalents at end of the period

141,720

169,610

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

 
for the three months ended
March 31,
In 000€

2023

2022

Net profit (loss) for the period

3,715

127

Income taxes

718

298

Financial expenses

1,375

1,289

Financial income

(809)

(1,665)

Depreciation and amortization

5,311

5,442

EBITDA

10,310

5,491

Share-based compensation expense (1)

-

(48)

Adjusted EBITDA

10,310

5,443

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

Segment P&L (Unaudited)

 
In 000€ Materialise
Software
Materialise
Medical
Materialise
Manufacturing
Total
segments
Unallocated (1) Consolidated
For the three months ended March 31, 2023
Revenues

11,350

24,317

30,219

65,886

0

65,886

Segment (adj) EBITDA

2,427

7,348

3,189

12,964

(2,655)

10,310

Segment (adj) EBITDA %

21.4%

30.2%

10.6%

19.7%

15.6%

For the three months ended March 31, 2022
Revenues

10,483

18,347

24,131

52,961

0

52,961

Segment (adj) EBITDA

1,932

3,227

2,613

7,772

(2,329)

5,443

Segment (adj) EBITDA %

18.4%

17.6%

10.8%

14.7%

10.3%

(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
March 31,
In 000€

2023

2022

Net profit (loss) for the period  

3,715

 

127

Income taxes

718

298

Financial cost  

1,375

 

1,289

Financial income

(809)

(1,665)

Operating (loss) profit  

4,998

 

49

Depreciation and amortization

5,311

5,442

Corporate research and development  

722

 

816

Corporate headquarter costs

2,640

2,106

Other operating income (expense)   

(707)

 

(640)

Segment adjusted EBITDA

12,964

7,772





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