Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - 3D SYSTEMS CORP | f8k_022410.htm |
| EX-99 - EXHIBIT 99.1 - 3D SYSTEMS CORP | exh_991.htm |
Conference Call
and Webcast
NASDAQ: TDSC www.3dsystems.com
and Webcast
NASDAQ: TDSC www.3dsystems.com
February 25, 2010
2
Participants
q Amanda Molbert
Coordinator, Investor Relations
Coordinator, Investor Relations
q Abe Reichental
President & Chief Executive Officer
President & Chief Executive Officer
q Damon Gregoire
Vice President & Chief Financial Officer
Vice President & Chief Financial Officer
q Bob Grace
Vice President & General Counsel
Vice President & General Counsel
3
Welcome Webcast Viewers
q To listen to the conference via phone and to ask questions
during our Q&A session, please dial:
during our Q&A session, please dial:
n 1-888-336-3485 in the United States
n 1-706-634-0653 from outside the United
States
n Confirmation Code: 52985568
4
Forward-Looking Statements
Certain statements made in this presentation that are not statements of historical or current facts are
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of the company to be materially
different from historical results or from any future results expressed or implied by such forward-looking
statements. In addition to statements which explicitly describe such risks and uncertainties, readers
are urged to consider statements in the future or conditional tenses or that include the terms
“believes,” “belief,” “estimates,” “expects,” “intends,” “anticipates” or “plans” to be uncertain and
forward-looking. Forward-looking statements may include comments as to the company’s beliefs and
expectations as to future events and trends affecting its business. Forward-looking statements are
based upon management’s current expectations concerning future events and trends and are
necessarily subject to uncertainties, many of which are outside the control of the company. The factors
stated under the headings “Forward-Looking Statements,” “Cautionary Statements and Risk Factors,”
and “Risk Factors” that appear in the company’s periodic filings with the Securities and Exchange
Commission, as well as other factors, could cause actual results to differ materially from those
reflected or predicted in forward-looking statements.
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of the company to be materially
different from historical results or from any future results expressed or implied by such forward-looking
statements. In addition to statements which explicitly describe such risks and uncertainties, readers
are urged to consider statements in the future or conditional tenses or that include the terms
“believes,” “belief,” “estimates,” “expects,” “intends,” “anticipates” or “plans” to be uncertain and
forward-looking. Forward-looking statements may include comments as to the company’s beliefs and
expectations as to future events and trends affecting its business. Forward-looking statements are
based upon management’s current expectations concerning future events and trends and are
necessarily subject to uncertainties, many of which are outside the control of the company. The factors
stated under the headings “Forward-Looking Statements,” “Cautionary Statements and Risk Factors,”
and “Risk Factors” that appear in the company’s periodic filings with the Securities and Exchange
Commission, as well as other factors, could cause actual results to differ materially from those
reflected or predicted in forward-looking statements.
Operating Results
Abe Reichental
President & CEO
President & CEO
6
We are pleased with our overall fourth quarter results, particularly given the
continued challenging economic environment.
continued challenging economic environment.
Improved business conditions resulted in sequential revenue growth from all
revenue buckets.
revenue buckets.
Materials sales enjoyed continued sequential growth, a trend that resumed
during the second quarter of 2009.
during the second quarter of 2009.
We expanded gross profit margin and lowered operating expenses in 2009
compared to 2008, driven in part by our ongoing operational and quality
performance improvements.
compared to 2008, driven in part by our ongoing operational and quality
performance improvements.
We successfully launched and significantly expanded through acquisitions our
3Dproparts™ services.
3Dproparts™ services.
We believe that we are benefiting competitively from our expanding products
and services portfolio and our stronger financial position.
and services portfolio and our stronger financial position.
Fourth Quarter and Full Year 2009 Overview
Our improved performance resulted in net income for the second half and
full year of 2009.
full year of 2009.
Financial Review
7
8
Fourth Quarter 2009 Operating Results
($ Millions except per share amounts)
|
Operating Results |
Fourth Quarter |
% Change | |
|
2009 |
2008 |
Favorable
(Unfavorable) | |
|
Revenue |
$36.4 |
$34.9 |
4% |
|
Gross Profit |
$16.1 |
$15.2 |
6%
|
|
% of Revenue |
44% |
44% | |
|
Operating Expenses |
$11.7 |
$13.9 |
16 %
|
|
% of Revenue |
32% |
40% | |
|
Net Income |
$3.6 |
$1.8 |
93% |
|
Depreciation & Amortization |
$1.5 |
$1.7 |
10%
|
|
% of Revenue |
4% |
5% | |
|
Fully Diluted Earnings Per Share |
$0.16 |
$0.08 |
100% |
9
Full Year 2009 Operating Results
($ Millions except per share amounts)
|
Operating Results |
Full Year |
% Change | |
|
2009 |
2008 |
Favorable
(Unfavorable) | |
|
Revenue |
$112.8 |
$138.9 |
(19%) |
|
Gross Profit |
$49.7 |
$55.6 |
(11%)
|
|
% of Revenue |
44% |
40% | |
|
Operating Expenses |
$46.7 |
$61.1 |
24%
|
|
% of Revenue |
41% |
44% | |
|
Net Income (Loss) |
$1.1 |
($6.2) |
NM |
|
Depreciation & Amortization |
$5.9 |
$6.7 |
12%
|
|
% of Revenue |
5% |
5% | |
|
Fully Diluted Earnings (Loss) Per Share |
$0.05 |
($0.28) |
NM |
NM: Not meaningful
10
q Sequential revenue growth from all revenue buckets.
q Systems revenue increased by $6.1 million.
q 3-D Printers revenue increased by $0.5
million.
q Materials sales grew by $1.7 million.
q Service revenue increased by $0.9 million
Factors Shaping Fourth Quarter 2009 Results
|
Q4-09 vs. Q3-09 Revenue Growth | |||||
|
|
|
U.S. |
Europe |
AP |
Total |
|
Systems |
|
52.7% |
208.0% |
8.9% |
89.5% |
|
Materials |
|
5.0% |
23.6% |
3.5% |
13.1% |
|
Service |
|
12.8% |
10.2% |
16.0% |
12.1% |
|
Total |
18.7% |
56.2% |
7.6% |
31.7% | |
11
q Gross profit margin and operating expenses both improved compared to the
fourth quarter of 2008, which contributed to net earnings.
fourth quarter of 2008, which contributed to net earnings.
q Net income of $3.6 million included $2.0 million of non-cash expenses.
q Earnings per share of 16 cents included the 1 cent per share negative impact of V-
Flash® and a 4 cents per share negative impact from litigation costs of $1.0
million.
Flash® and a 4 cents per share negative impact from litigation costs of $1.0
million.
q Cash position improved from the previous quarter to $24.9 million.
o Inventory decreased, reflecting increased system sales.
Factors Shaping Fourth Quarter 2009 Results
|
|
|
Q4-08 |
Q1-09 |
Q2-09 |
Q3-09 |
Q4-09 |
|
Total Operating Expenses |
|
$13.9 |
$12.1 |
$11.7 |
$11.2 |
$11.7 |
|
Gross Profit Margin |
|
44% |
44% |
44% |
45% |
44% |
|
Cash |
|
$22.2 |
$23.4 |
$24.0 |
$24.0 |
$24.9 |
|
Inventory |
|
$21.0 |
$19.9 |
$19.1 |
$20.3 |
$18.4 |
12
Q4 2009 Revenue Mix By Category and Region
5
10
15
20
25
30
35
0
40
2009
2008
2009
2008
Europe
$36.4
36%
20%
$34.9
40%
13%
$36.4
$34.9
24%
42%
41%
47%
44%
35%
34%
24%
13
Fourth Quarter & Full Year 2009 Gross Profit and Margin
($ Millions)
14
Fourth Quarter 2009 Operating Expenses
Expect 2010 SG&A to be in the range of $36-40 million and R&D in the range of
$10-12 million.
$10-12 million.
($ Millions)
15
Full Year 2009 Operating Expenses
Expect 2010 SG&A to be in the range of $36-40 million and R&D in the range of
$10-12 million.
$10-12 million.
($ Millions)
16
Working Capital Management
40
60
80
100
120
140
160
Days Inventory On Hand
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
63
63
70
66
68
93
121
102
100
125
60
122
63
Q3 2009
Q4 2009
83
60
17
Working Capital Management
($000’s)
Progress Report
Abe Reichental
President & CEO
President & CEO
19
Recent Developments
q We continued our new product
development activities and
launched the ProJet™ 5000.
development activities and
launched the ProJet™ 5000.
q We further expanded our
3Dproparts™ services by:
3Dproparts™ services by:
n Acquiring Acu-Cast
Technologies
Technologies
n Acquiring AdvaTech
n Launching 3Dproparts™ in
Europe and
Europe and
n Acquiring Moeller Design
20
Growth Drivers
q We entered the first quarter of 2010 with
a strong sales funnel.
a strong sales funnel.
q We remain pleased with the progress we
are making on V-Flash® sales.
are making on V-Flash® sales.
q We expect sales of our expanding lineup
of 3-D printers to continue to grow,
helped by our new ProJet™ 5000.
of 3-D printers to continue to grow,
helped by our new ProJet™ 5000.
q We are pleased with the progress we are
making on 3Dproparts™ and expect to
continue to grow this activity globally.
making on 3Dproparts™ and expect to
continue to grow this activity globally.
q We expect sales of our dental and medical
device solutions to grow, benefiting from
our expanding portfolio of dental
production systems and technology
leadership.
device solutions to grow, benefiting from
our expanding portfolio of dental
production systems and technology
leadership.
21
Revenue Outlook
q While economic conditions remain uncertain, we are
optimistic about our ability to continue to make
progress.
optimistic about our ability to continue to make
progress.
q Given our strengthened portfolio of products and
services, we expect continued revenue growth during
2010.
services, we expect continued revenue growth during
2010.
q We intend to grow our 3Dproparts™ service both
internally and through additional strategic acquisitions
globally.
internally and through additional strategic acquisitions
globally.
n Our recently announced acquisition of
Moeller Design
demonstrates our strong commitment to grow our
3Dproparts™ services.
demonstrates our strong commitment to grow our
3Dproparts™ services.
n We expect sales of 3Dproparts™ to reach a minimum
level of 10% of total revenue by the end of 2010.
level of 10% of total revenue by the end of 2010.
We expect to benefit competitively from our new and expanded
products and services portfolio and stronger financial position.
products and services portfolio and stronger financial position.
22
Gross Profit and Operating Expenses Outlook
q We expect our gross profit margin to remain stable despite
q Potential adverse systems mix in favor
of lower margin printers
q Continued negative 2-4 percentage point
drag from V-Flash® through the first half of
2010.
2010.
q We expect SG&A to be in the range of $36-40
million for 2010.
n Inclusive of our anticipated higher litigation
expenses and,
n Increased operating costs associated with
3Dproparts ™ acquisitions we made thus
far.
far.
q We expect R&D spending for 2010 to be in the range of $10-12
million while
keeping pace with our planned new product introductions.
keeping pace with our planned new product introductions.
We believe that we can further enhance our operational effectiveness
and optimize our operating costs.
and optimize our operating costs.
23
Universal Shelf Filing
q Yesterday we filed with the SEC a universal shelf registration statement providing
for the offer
and sale from time to time of up to $75 million of securities, including equity, debt and
other securities as described in the registration statement.
and sale from time to time of up to $75 million of securities, including equity, debt and
other securities as described in the registration statement.
q We believe that filing a shelf registration statement is good
corporate stewardship and
provides for an efficient means to enable access to capital markets and maximize our
financial flexibility.
provides for an efficient means to enable access to capital markets and maximize our
financial flexibility.
q We do not have any
commitments or intentions to sell securities at this time.
q We expect to use the net proceeds from any offering that we may make under the registration
statement to finance future acquisitions and for working capital and other general
corporate purposes.
statement to finance future acquisitions and for working capital and other general
corporate purposes.
q The registration statement has been filed with the SEC but has
not yet become effective.
q These securities may not be sold nor may offers to buy these securities be accepted prior to
the time the shelf registration statement becomes effective.
the time the shelf registration statement becomes effective.
We recognize that the current market conditions present unique
opportunities to enhance our business model and expect to make additional
strategic investments in the coming periods.
opportunities to enhance our business model and expect to make additional
strategic investments in the coming periods.
24
Bottom Line
q Our first half 2010 sales funnel is robust.
q Our three pillars of business: Parts,
Printers and Production Systems are
expected to drive demand for our
products by OEMs.
Printers and Production Systems are
expected to drive demand for our
products by OEMs.
q Our business model is built around
significant, recurring revenue
components that generate improved
contribution margins.
significant, recurring revenue
components that generate improved
contribution margins.
We remain committed to our long-term growth objectives and are
confident in our ability to provide value to our customers and
stockholders.
confident in our ability to provide value to our customers and
stockholders.
25
• Phone: 1-888-336-3485
• International: 1-706-634-0653
• Confirmation Code: 52985568
Question and Answer Session
26
A replay of this webcast will be
available approximately three hours
after the call on the 3D Systems
Investor Relations Web site,
www.3dsystems.com/ir.
available approximately three hours
after the call on the 3D Systems
Investor Relations Web site,
www.3dsystems.com/ir.
Check out our new 3Dproparts™
website at www.3Dproparts.com
website at www.3Dproparts.com
Thank You For Participating