Stratasys Releases Fourth Quarter and Full Year 2020 Financial Results

Use of non-GAAP financial measures

The non-GAAP data included herein, which excludes certain items as described below, are non-GAAP financial measures. Our management believes that these non-GAAP financial measures are useful information for investors and shareholders of our Company in gauging our results of operations (x) on an ongoing basis after excluding mergers, acquisitions and divestments related expense or gains and reorganization-related charges or gains, and (y) excluding non-cash items such as stock-based compensation expenses, acquired intangible assets amortization, including intangible assets amortization related to equity method investments, impairment of long-lived assets, and the corresponding tax effect of those items. These non-GAAP adjustments either do not reflect actual cash outlays that impact our liquidity and our financial condition or have a non-recurring impact on the statement of operations, as assessed by management. These non-GAAP financial measures are presented to permit investors to more fully understand how management assesses our performance for internal planning and forecasting purposes. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all items indicated above during a period, which may not provide a comparable view of our performance to other companies in our industry. Investors and other readers should consider non-GAAP measures only as supplements to, not as substitutes for or as superior measures to, the measures of financial performance prepared in accordance with GAAP. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table below.

Stratasys Ltd.
 
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share data)

December 31,

 

December 31,

 

2020

 

 

 

2019

 

 
 
ASSETS
 
Current assets
Cash and cash equivalents

$

272,092

 

$

293,484

 

Short-term deposits

 

27,000

 

 

28,300

 

Accounts receivable, net

 

106,068

 

 

132,558

 

Inventories

 

131,672

 

 

168,504

 

Prepaid expenses

 

6,717

 

 

6,567

 

Other current assets

 

16,943

 

 

29,659

 

 
Total current assets

 

560,492

 

 

659,072

 

 
Non-current assets
Property, plant and equipment, net

 

201,232

 

 

189,706

 

Goodwill

 

35,694

 

 

385,658

 

Other intangible assets, net

 

131,569

 

 

87,328

 

Operating lease right-of-use assets

 

21,298

 

 

20,936

 

Other non-current assets

 

39,717

 

 

38,819

 

 
Total non-current assets

 

429,510

 

 

722,447

 

 
Total assets

$

990,002

 

$

1,381,519

 

 
LIABILITIES AND EQUITY
 
Current liabilities
Accounts payable

$

16,987

 

$

35,818

 

Accrued expenses and other current liabilities

 

31,061

 

 

28,528

 

Accrued compensation and related benefits

 

25,659

 

 

34,013

 

Deferred revenues - short-term

 

49,165

 

 

52,268

 

Operating lease liabilities - short-term

 

9,282

 

 

9,292

 

 
Total current liabilities

 

132,154

 

 

159,919

 

 
Non-current liabilities
Deferred revenues - long-term

 

14,227

 

 

16,039

 

Operating lease liabilities - long term

 

12,567

 

 

12,445

 

Other non-current liabilities

 

71,459

 

 

35,343

 

 
Total non-current liabilities

 

98,253

 

 

63,827

 

 
Total liabilities

 

230,407

 

 

223,746

 

 
Redeemable non-controlling interests

 

227

 

 

622

 

 
Equity
Ordinary shares, NIS 0.01 nominal value, authorized 180,000 thousands
shares; 56,617 thousands shares and 54,441 thousands shares issued
and outstanding at December 31, 2020 and 2019, respectively

 

155

 

 

148

 

Additional paid-in capital

 

2,753,955

 

 

2,706,894

 

Accumulated other comprehensive loss

 

(8,846

)

 

(7,716

)

Accumulated deficit

 

(1,985,896

)

 

(1,542,175

)

Total equity

 

759,368

 

 

1,157,151

 

 
Total liabilities and equity

$

990,002

 

$

1,381,519

 

Stratasys Ltd.
 
Consolidated Statements of Operations
 
(in thousands, except per share data)
 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

Net sales
Products

$

99,185

 

$

108,968

 

$

339,782

 

$

430,746

 

Services

 

43,210

 

 

51,189

 

 

181,035

 

 

205,334

 

 

142,395

 

 

160,157

 

 

520,817

 

 

636,080

 

 
Cost of sales
Products

 

44,679

 

 

46,825

 

 

171,235

 

 

182,430

 

Services

 

31,697

 

 

34,673

 

 

130,188

 

 

139,958

 

 

76,376

 

 

81,498

 

 

301,423

 

 

322,388

 

 
Gross profit

 

66,019

 

 

78,659

 

 

219,394

 

 

313,692

 

 
Operating expenses
Research and development, net

 

18,953

 

 

24,019

 

 

84,012

 

 

94,253

 

Selling, general and administrative

 

49,595

 

 

57,921

 

 

205,224

 

 

231,138

 

Goodwill impairment

 

-

 

 

-

 

 

386,154

 

 

-

 

 

68,548

 

 

81,940

 

 

675,390

 

 

325,391

 

 
Operating loss

 

(2,529

)

 

(3,281

)

 

(455,996

)

 

(11,699

)

 
Financial income (expense), net

 

273

 

 

1,760

 

 

(575

)

 

4,555

 

 
Loss before income taxes

 

(2,256

)

 

(1,521

)

 

(456,571

)

 

(7,144

)

 
Income tax expenses (benefit)

 

(14,144

)

 

439

 

 

(16,394

)

 

3,523

 

 
Share in profits (losses) of associated companies

 

(1,200

)

 

(907

)

 

(3,939

)

 

(412

)

 
Net income (loss)

 

10,688

 

 

(2,867

)

 

(444,116

)

 

(11,079

)

 
Net loss attributable to non-controlling interests

 

(341

)

 

(78

)

 

(395

)

 

(230

)

 
Net income (loss) attributable to Stratasys Ltd.

$

11,029

 

$

(2,789

)

$

(443,721

)

$

(10,849

)

 
Net income (loss) per ordinary share attributable to Stratasys Ltd.
Basic

$

0.20

 

$

(0.05

)

$

(8.08

)

$

(0.20

)

Diluted

$

0.20

 

$

(0.05

)

$

(8.08

)

$

(0.20

)

 
 
Basic

 

55,118

 

 

54,435

 

 

54,918

 

 

54,260

 

Diluted

 

55,318

 

 

54,435

 

 

54,918

 

 

54,260

 

Three Months Ended December 31,

 

2020

 

 

Non-GAAP

 

 

2020

 

 

2019

 

 

Non-GAAP

 

 

2019

GAAP

 

Adjustments

 

Non-GAAP

 

GAAP

 

Adjustments

 

Non-GAAP

U.S. dollars and shares in thousands (except per share amounts)

 
Gross profit (1)

$

66,019

 

$

4,520

 

$

70,539

$

78,659

 

$

5,294

 

$

83,953

Operating income (loss) (1,2)

 

(2,529

)

 

10,861

 

 

8,332

 

(3,281

)

 

13,436

 

 

10,155

Net income (loss) attributable
to Stratasys Ltd. (1,2,3)

 

11,029

 

 

(4,001

)

 

7,028

 

(2,789

)

 

12,741

 

 

9,952

Net income (loss) per diluted share attributable
to Stratasys Ltd. (4)

$

0.20

 

$

(0.07

)

$

0.13

$

(0.05

)

$

0.23

 

$

0.18

 
 

(1)

Acquired intangible assets amortization expense

 

3,411

 

 

4,770

 

 

Non-cash stock-based compensation expense

 

347

 

 

478

 

 

Restructuring and other related costs

 

762

 

 

46

 

 

 

4,520

 

 

5,294

 

 

 

(2)

Acquired intangible assets amortization expense

 

2,290

 

 

2,985

 

 

Non-cash stock-based compensation expense

 

3,962

 

 

4,325

 

 

Restructuring and other related costs

 

449

 

 

556

 

 

Other expenses (income)

 

(360

)

 

276

 

 

 

6,341

 

 

8,142

 

 

 

10,861

 

 

13,436

 

 

 

(3)

Corresponding tax effect

 

(1,002

)

 

(721

)

 

Release of valuation allowance

 

(14,007

)

 

-

 

 

Equity method related amortization, divestments and impairments

 

483

 

 

26

 

 

Adjustments attributable to non-controlling interest

 

(336

)

 

-

 

 

$

(4,001

)

$

12,741

 

(4)

Weighted average number of ordinary
shares outstanding- Diluted

 

55,318

 

 

55,318

 

54,435

 

 

54,738

 

Twelve Months Ended December 31,

 

2020

 

 

Non-GAAP

 

 

2020

 

 

 

2019

 

 

Non-GAAP

 

 

2019

 

GAAP

 

 

 

Adjustments

 

 

 

Non-GAAP

 

 

 

GAAP

 

 

 

 

Adjustments

 

 

 

Non-GAAP

U.S. dollars and shares in thousands (except per share amounts)

         
Gross profit (1)

$

219,394

 

 

$

28,582

 

 

$

247,976

 

 

$

313,692

 

 

$

 

19,074

 

$

 

332,766

Operating income (loss) (1,2)

 

(455,996

)

 

 

446,848

 

 

 

(9,148

)

 

 

(11,699

)

 

 

 

45,812

 

 

 

34,113

Net income (loss) attributable to            
Stratasys Ltd. (1,2,3)

 

(443,721

)

 

 

429,820

 

 

 

(13,901

)

 

 

(10,849

)

 

 

 

41,315

 

 

 

30,466

Net income (loss) per diluted share attributable

           

to Stratasys Ltd. (4)

$

(8.08

)

 

$

7.83

 

 

$

(0.25

)

 

$

(0.20

)

 

$

 

0.76

 

$

 

0.56

         
         

(1)

Acquired intangible assets amortization expense  

 

15,607

 

     

 

 

16,484

 

 

Non-cash stock-based compensation expense  

 

1,771

 

     

 

 

1,848

 

 

Restructuring and other related costs  

 

5,948

 

     

 

 

742

 

 

Impairment charges of intangible assets  

 

5,256

 

     

 

 

-

 

 

 

 

28,582

 

     

 

 

19,074

 

 

       

(2)

Acquired intangible assets amortization expense  

 

8,720

 

     

 

 

8,673

 

 

Non-cash stock-based compensation expense  

 

18,433

 

     

 

 

18,716

 

 

Goodwill impairment  

 

386,154

 

     

 

 

-

 

 

Gain from divestiture, net of transaction costs  

 

-

 

     

 

 

(3,578

)

 

Restructuring and other related costs  

 

4,312

 

     

 

 

2,655

 

 

Other expenses  

 

647

 

     

 

 

272

 

 

 

 

418,266

 

     

 

 

26,738

 

 

 

 

446,848

 

     

 

 

45,812

 

 

       

(3)

Corresponding tax effect  

 

(3,398

)

     

 

 

(2,919

)

 

Release of valuation allowance  

 

(14,007

)

     

 

 

-

 

 

Equity method related amortization, divestments and impairments  

 

713

 

     

 

 

(1,578

)

 

Adjustments attributable to non-controlling interest  

 

(336

)

     

 

 

-

 

 

 

$

429,820

 

     

$

 

41,315

 

 

       

(4)

Weighted average number of ordinary

         

 

shares outstanding- Diluted

 

54,918

 

   

 

54,918

 

 

 

54,260

 

 

 

 

54,713





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