The ExOne Company Reports 2020 Second Quarter Results

  • Revenue of $11.1 million for Q2 2020; includes recurring revenue growth of 3% year-on-year
  • Record backlog of $38.2 million increased 13% sequentially and 65% year-on-year, indicating continued market strength of binder jetting technology
  • Total liquidity increased to $29.7 million

NORTH HUNTINGDON, Pa. — (BUSINESS WIRE) — August 6, 2020The ExOne Company (Nasdaq: XONE) (“ExOne” or the “Company”), the global leader in industrial sand and metal 3D printers using binder jetting technology, today reported financial results for the second quarter ended June 30, 2020.

“ExOne’s global team continued to perform admirably despite challenging market conditions as a result of COVID-19,” said John Hartner, ExOne’s CEO. “During the quarter, we continued to install machines around the world, increase adoption of our technology and expand our backlog. At the same time, our recurring revenue streams showed resiliency and growth, and our offering of products and services has grown, showcasing the diversity of our business model.”

Recently, ExOne won the first commitments for its X1 160Pro™ printer, the industry’s largest metal 3D printer, and a significant contract with the U.S. Department of Defense for a field deployable binder jet 3D printer. The Company also expanded its Quick Ship metal 3D printing services, and launched Scout, an app that provides real-time machine monitoring and analysis.

Q2 2020 Revenue Summary

Three Months Ended

(in millions)

June 30,

Revenue by Product Line

2020

2019

3D Printing Machines

$

4.9

44

%

$

9.3

60

%

3D Printed and Other Products, Materials and Services

 

6.2

56

%

 

6.0

40

%

Total Revenue

$

11.1

100

%

$

15.3

100

%

Q2 2020 Financial Results Summary

The following summarizes ExOne’s financial results for the second quarter ended June 30, 2020:

  • Revenue was $11.1 million, compared to $15.3 million in last year’s second quarter. The revenue decline resulted from a 47% decrease in revenue attributable to 3D printing machines driven by lower volumes (eight units sold in the current quarter versus 13 in the prior year period) and an unfavorable mix of machines sold. This decrease was partially offset by a 3% increase in revenue attributable to 3D printed and other products, materials and services driven by funded research and development contracts. Revenue for both product groups were impacted by COVID-19, including disruptions to domestic and international shipping and travel in addition to the negative macroeconomic effects.
  • Gross margin was 27.8%, compared to 33.7% in the second quarter of 2019. The decrease was primarily due to lower revenue volumes, partially offset by lower fixed overhead costs, which were driven by cost actions taken and other reductions realized as a result of COVID-19.
  • Research and development expenses were $2.4 million, compared to $2.5 million in the second quarter of 2019. The decrease was primarily due to lower employee-related costs resulting from actions taken in response to COVID-19. Investments remain focused on the further development of binder jetting technology, including the X1 160Pro production metal 3D printing system.
  • Selling, general and administrative expenses were $4.5 million, compared to $6.2 million for the second quarter of 2019. This decrease was driven by a combination of factors including lower trade show expenses and cost reductions associated with COVID-19, as well as lower equity-based compensation.
  • Net loss was $4.0 million, or $0.24 per fully diluted share, compared with a net loss of $3.8 million, or $0.23 per fully diluted share, in the second quarter of 2019.
  • Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was a loss of $2.4 million, compared with a loss of $1.7 million in the second quarter of 2019. Refer to the attached table captioned “Adjusted EBITDA Reconciliation” for important disclosures regarding the Company’s definition and use of Adjusted EBITDA as well as a reconciliation of net loss (the most directly comparable measure under accounting principles generally accepted in the United States (“GAAP”)) to Adjusted EBITDA. ExOne management believes that, when used in conjunction with other measures prepared in accordance with GAAP, Adjusted EBITDA assists in the understanding of its financial results.
  • Cash, cash equivalents and restricted cash as of June 30, 2020 increased to $20.2 million, from $17.3 million at March 31, 2020. The increase was driven by cash inflows from financing activities of $5.6 million, including $2.9 million in sales of common stock in at-the-market offerings and $2.2 million in proceeds from a federal COVID-19 loan program. Offsetting this were cash outflows from operations of $2.6 million mostly due to the widening of net loss, net of noncash items for the period. Working capital remained generally balanced as inflows from customers approximated the Company’s investment in inventories for future deliveries against its backlog.
  • Total liquidity, which includes unrestricted cash and cash equivalents and availability under the Company’s related party revolving credit facility, increased to $29.7 million at June 30, 2020 compared to $26.8 million at March 31, 2020. There were no borrowings outstanding under the Company’s $10.0 million related party revolving credit facility at June 30, 2020.

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