3D Systems Reports Second Quarter 2024 Financial Results

To calculate the non-GAAP measures, 3D Systems excludes the impact of the following items:

  • amortization of intangible assets, a non-cash expense, as 3D Systems’ intangible assets were primarily acquired in connection with business combinations;
  • costs incurred in connection with acquisitions and divestitures, such as legal, consulting and advisory fees;
  • stock-based compensation expenses, a non-cash expense;
  • charges related to restructuring and cost optimization plans, impairment charges, including goodwill, and divestiture gains or losses;
  • certain compensation expense related to the 2021 Volumetric acquisition; and
  • costs, including legal fees, related to significant or unusual litigation matters.

Amortization of intangibles and acquisition and divestiture-related costs are excluded from non-GAAP measures as the timing and magnitude of business combination transactions are not predictable, can vary significantly from period to period and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition. Amortization of intangible assets will recur in future periods until such intangible assets have been fully amortized. While intangible assets contribute to the company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the company’s products or services. Additionally, intangible assets amortization expense typically fluctuates based on the size and timing of the company’s acquisition activity. Accordingly, the company believes excluding the amortization of intangible assets enhances the company’s and investors’ ability to compare the company’s past financial performance with its current performance and to analyze underlying business performance and trends. Although stock-based compensation is a key incentive offered to certain of our employees, the expense is non-cash in nature, and we continue to evaluate our business performance excluding stock-based compensation; therefore, it is excluded from non-GAAP measures. Stock-based compensation expenses will recur in future periods. Charges related to restructuring and cost optimization plans, impairment charges, including goodwill, divestiture gains or losses, and the costs, including legal fees, related to significant or unusual litigation matters are excluded from non-GAAP measures as the frequency and magnitude of these activities may vary widely from period to period. Additionally, impairment charges, including goodwill, are non-cash. Furthermore, the company believes the costs, including legal fees, related to significant or unusual litigation matters are not indicative of our core business' operations. Finally, 3D Systems excludes contingent consideration recorded as compensation expense related to the 2021 Volumetric acquisition from non-GAAP measures as management evaluates financial performance excluding this expense, which is viewed by management as similar to acquisition consideration.

The matters discussed above are tax effected, as applicable, in calculating non-GAAP diluted income (loss) per share.

Adjusted EBITDA, defined as net income, plus income tax (provision) benefit, interest and other income (expense), net, stock-based compensation expense, amortization of intangible assets, depreciation expense, and other non-GAAP adjustments, all as described above, is used by management to evaluate performance and helps measure financial performance period-over-period.

A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules.

3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP gross profit margin, Adjusted EBITDA, and non-GAAP operating expense to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including litigation costs, acquisition expenses, stock-based compensation expense, intangible assets amortization expense, restructuring expenses, and goodwill impairment charges are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.

About 3D Systems

More than 35 years ago, 3D Systems brought the innovation of 3D printing to the manufacturing industry. Today, as the leading additive manufacturing solutions partner, we bring innovation, performance, and reliability to every interaction - empowering our customers to create products and business models never before possible. Thanks to our unique offering of hardware, software, materials and services, each application-specific solution is powered by the expertise of our application engineers who collaborate with customers to transform how they deliver their products and services. 3D Systems’ solutions address a variety of advanced applications in Healthcare and Industrial Solutions markets such as medical and dental, aerospace & defense, automotive and durable goods. More information on the company is available at www.3dsystems.com

Tables Follow


3D Systems Corporation
Unaudited Condensed Consolidated Balance Sheets
June 30, 2024 and December 31, 2023

(in thousands, except par value) June 30, 2024  December 31, 2023
ASSETS   
Current assets:   
Cash and cash equivalents$192,732  $331,525 
Accounts receivable, net of reserves — $3,089 and $3,389 97,447   101,497 
Inventories 141,743   152,188 
Prepaid expenses and other current assets 41,769     42,612  
Total current assets   473,691       627,822  
Property and equipment, net   60,267       64,461  
Intangible assets, net   58,276       62,724  
Goodwill   114,070       116,082  
Operating lease right-of-use assets   53,547       58,406  
Finance lease right-of-use assets   11,733       12,174  
Long-term deferred income tax assets   3,474       4,230  
Other assets   46,429       44,761  
Total assets $ 821,487     $ 990,660  
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY      
Current liabilities:      
Current operating lease liabilities $ 9,481     $ 9,924  
Accounts payable   41,272       49,757  
Accrued and other liabilities   45,282       49,460  
Customer deposits   7,456       7,599  
Deferred revenue   33,580       30,448  
Total current liabilities   137,071       147,188  
Long-term debt, net of deferred financing costs   211,368       319,356  
Long-term operating lease liabilities   52,536       56,795  
Long-term deferred income tax liabilities   4,725       5,162  
Other liabilities   32,043       33,400  
Total liabilities   437,743       561,901  
Commitments and contingencies      
Redeemable non-controlling interest   2,015       2,006  
Stockholders’ equity:      
Common stock, $0.001 par value, authorized 220,000 shares; shares issued 133,587 and 133,619 as of June 30, 2024 and December 31, 2023, respectively   134       134  
Additional paid-in capital   1,584,145       1,577,519  
Accumulated deficit   (1,149,909 )     (1,106,650 )
Accumulated other comprehensive loss   (52,641 )     (44,250 )
Total stockholders’ equity   381,729       426,753  
Total liabilities, redeemable non-controlling interest and stockholders’ equity $ 821,487     $ 990,660  



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