We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Materialise NV | NASDAQ:MTLS | NASDAQ | Depository Receipt |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 5.30 | 4.95 | 5.80 | 0 | 09:00:00 |
Materialise NV (NASDAQ:MTLS), a leading provider of additive manufacturing and medical software and of sophisticated 3D printing services, today announced its financial results for the second quarter ended June 30, 2023.
Highlights – Second Quarter 2023
Executive Chairman Peter Leys commented, “Materialise delivered another strong operational performance in the second quarter of 2023. Our consolidated revenues of 64,810 kEUR rose almost 12% compared to the same period last year, with increased revenues in all three of our segments. Materialise Medical had an especially robust performance with revenue increasing 20%. Our Q2 2023 consolidated Adjusted EBITDA of 4,755 kEUR represents an increase of more than 12% compared to last year's corresponding period despite the (5,189) kEUR negative impact resulting from an unexpected adverse resolution of an arbitration proceeding in May 2023. Given the strength of our fundamental operations, we are able to maintain the guidance previously provided for both our 2023 revenue and our Adjusted EBITDA.”
Second Quarter 2023 Results
Total revenue for the second quarter of 2023 increased 11.6% to 64,810 kEUR from 58,070 kEUR for the second quarter of 2022. Adjusted EBITDA amounted to 4,755 kEUR for the second quarter of 2023 compared to 4,240 kEUR for the corresponding 2022 period. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the second quarter of 2023 was 7.3%, equal to the second quarter of 2022. Excluding the (5,189) kEUR negative impact resulting from the unexpected adverse resolution of an arbitration proceeding, our Adjusted EBITDA margin for the quarter would have been 15.3%.
Revenue from our Materialise Software segment increased 3.6% to 11,030 kEUR for the second quarter of 2023 from 10,642 kEUR for the same quarter last year. Segment EBITDA increased to 1,973 kEUR from 821 kEUR while the segment EBITDA margin was 17.9% compared to 7.7% for the corresponding prior-year period.
Revenue from our Materialise Medical segment increased 19.6% to 24,945 kEUR for the second quarter of 2023 compared to 20,855 kEUR for the same period in 2022. Segment EBITDA amounted to 2,683 kEUR for the second quarter of 2023 compared to 4,474 kEUR while the segment EBITDA margin was 10.8% compared to 21.5% for the second quarter of 2022. The Medical segment EBITDA for the second quarter of 2023 includes the (5,189) kEUR negative effect from an arbitration award granted against us in our previously disclosed indemnification dispute with Zimmer Biomet related to certain joint replacement devices. Excluding the (5,189) kEUR negative impact, the Adjusted EBITDA margin of our Medical segment for the quarter would have been 31.6%.
Revenue from our Materialise Manufacturing segment increased 8.5% to 28,835 kEUR for the second quarter of 2023 from 26,574 kEUR for the second quarter of 2022. Segment EBITDA amounted to 2,708 kEUR compared to 1,581 kEUR for the same period last year, while the segment EBITDA margin was 9.4% compared to 5.9% for the second quarter of 2022.
Gross profit was 37,047 kEUR for the second quarter of 2023 compared to 32,030 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 57.2% compared to 55.2% for the second quarter of 2022.
Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses decreased in the aggregate by 1.3% to 33,176 kEUR for the second quarter of 2023 from 33,613 kEUR for the second quarter of 2022, with disciplined cost containment in S&M and G&A fully offsetting the increased costs of our continued R&D efforts.
Net other operating income, which includes the negative impact from the adverse arbitration award, was (4,468) kEUR compared to 498 kEUR for the second quarter of 2022.
Operating result amounted to (597) kEUR compared to (1,084) kEUR for the second quarter of 2022.
Net financial result was 635 kEUR compared to 2,580 kEUR for the second quarter of 2022.
The second quarter of 2023 contained income tax expenses of (532) kEUR, compared to (600) kEUR in the second quarter of 2022.
As a result of the above, net result for the second quarter of 2023 was (494) kEUR, compared to 896 kEUR for the same period in 2022. Total comprehensive income for the second quarter of 2023, which includes exchange differences on translation of foreign operations, was 140 kEUR compared to 771 kEUR for the corresponding 2022 period.
At June 30, 2023, after payment of the 5,189 kEUR arbitration award, we had cash and cash equivalents of 136,285 kEUR compared to 140,867 kEUR at December 31, 2022. Gross debt amounted to 72,412 kEUR, compared to 80,980 kEUR at December 31, 2022. As a result, our net cash position (cash and cash equivalents less gross debt) was 63,873 kEUR, an increase of 3,986 kEUR compared to December 31, 2022
Cash flow from operating activities for the second quarter of the year 2023 was 775 kEUR compared to 8,636 kEUR for the same period in 2022. Total capital expenditures for the second quarter of 2023 amounted to 2,119 kEUR.
Net shareholders’ equity at June 30, 2023 was 233,393 kEUR compared to 228,928 kEUR at December 31, 2022.
2023 Guidance
Mr. Leys concluded, “Seven months into 2023, Materialise continues to expect to report consolidated revenue towards the high end of the 255,000 kEUR to 260,000 kEUR range we previously provided. We are also maintaining, despite the unexpected arbitration award granted against us in May 2023 for a total amount of (5,189) kEUR, our Adjusted EBITDA guidance between 28,000 kEUR and 33,000 kEUR for fiscal year 2023”.
Non-IFRS Measures
Materialise uses EBITDA and Adjusted EBITDA as supplemental financial measures of its financial performance. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBITDA. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the company’s day-to-day operations. As compared to net profit, these measures are limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company’s business, or the charges associated with impairments. Management evaluates such items through other financial measures such as capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company’s ability to grow or as a valuation measurement. The company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The company’s presentation of EBITDA and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.
Exchange Rate
This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.0866, the reference rate of the European Central Bank on June 30, 2023.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the second quarter of 2023 on Wednesday, July 26, 2023, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Wilfried Vancraen, Founder and Chief Executive Officer; Peter Leys, Executive Chairman; and Koen Berges, Chief Financial Officer. A question-and-answer session will follow management’s remarks.
The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed on the company’s website at http://investors.materialise.com. A webcast of the conference call will be archived on the company's website for one year.
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 estimates for the current fiscal year’s 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 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 June 30,
for the six months ended June 30,
In '0002023
2023
2022
2023
2022
U.S.$ € € € € Revenue70,423
64,810
58,070
130,702
111,032
Cost of Sales(30,168)
(27,764)
(26,040)
(56,814)
(50,118)
Gross Profit40,255
37,047
32,030
73,888
60,914
Gross profit as % of revenue57.2%
57.2%
55.2%
56.5%
54.9%
Research and development expenses(10,311)
(9,489)
(8,955)
(18,506)
(16,770)
Sales and marketing expenses(15,385)
(14,159)
(14,954)
(28,459)
(28,469)
General and administrative expenses(10,353)
(9,528)
(9,704)
(18,573)
(18,148)
Net other operating income (expenses)(4,855)
(4,468)
498
(3,948)
1,436
Operating (loss) profit(649)
(597)
(1,084)
4,402
(1,036)
Financial expenses(728)
(670)
(1,320)
(2,045)
(2,561)
Financial income1,419
1,305
3,901
2,114
5,517
Share in loss of joint venture-
-
-
-
-
(Loss) profit before taxes42
38
1,496
4,471
1,921
Income Taxes(578)
(532)
(600)
(1,249)
(898)
Net (loss) profit for the period(536)
(494)
896
3,221
1,023
Net (loss) profit attributable to:-
The owners of the parent(530)
(488)
903
3,234
1,036
Non-controlling interest(7)
(6)
(7)
(13)
(13)
Earning per share attributable to owners of the parent Basic(0.01)
(0.01)
0.02
0.05
0.02
Diluted(0.01)
(0.01)
0.02
0.05
0.02
Weighted average basic shares outstanding59,067
59,067
59,064
59,067
59,064
Weighted average diluted shares outstanding59,067
59,067
59,095
59,070
59,100
Consolidated statements of comprehensive income (Unaudited)
for the three months ended June 30,
for the six months ended June 30,
In 000€2023
2023
2022
2023
2022
U.S.$ € € € € Net profit (loss) for the period(536)
(494)
896
3,221
1,023
Other comprehensive income Recycling Exchange difference on translation of foreign operations689
634
(125)
1,242
1,291
Non-recycling Fair value adjustments through OCI - Equity instruments-
-
-
-
-
Other comprehensive income (loss), net of taxes689
634
(125)
1,242
1,291
Total comprehensive income (loss) for the year, net of taxes152
140
771
4,463
2,314
Total comprehensive income (loss) attributable to: The owners of the parent157
144
778
4,473
2,327
Non-controlling interests(4)
(4)
(7)
(10)
(13)
Consolidated statement of financial position (Unaudited)
As of June 30,
As of December 31,
In 000€2023
2022
Assets Non-current assets Goodwill44,345
44,155
Intangible assets35,780
37,875
Property, plant & equipment94,599
94,276
Right-of-Use assets8,277
8,420
Investments in joint ventures-
-
Deferred tax assets1,251
1,186
Investments in convertible loans3,618
3,494
Investments in non-listed equity instruments307
307
Other non-current assets4,997
5,136
Total non-current assets193,173
194,847
Current assets Inventories16,007
16,081
Trade receivables45,859
51,043
Other current assets8,935
8,424
Cash and cash equivalents136,285
140,867
Total current assets207,085
216,414
Total assets400,259
411,262
As of June 30,
As of December 31,
In 000€2023
2022
Equity and liabilities Equity Share capital4,487
4,487
Share premium233,895
233,895
Retained earnings and other reserves(4,951)
(9,427)
Equity attributable to the owners of the parent233,431
228,955
Non-controlling interest(38)
(28)
Total equity233,393
228,928
Non-current liabilities Loans & borrowings49,823
55,873
Lease liabilities5,123
5,147
Deferred tax liabilities3,947
4,312
Deferred income8,633
9,277
Other non-current liabilities1,006
1,611
Total non-current liabilities68,532
76,220
Current liabilities Loans & borrowings14,631
17,058
Lease liabilities2,835
2,902
Trade payables22,790
23,230
Tax payables2,129
1,246
Deferred income40,579
41,721
Other current liabilities15,370
19,957
Total current liabilities98,334
106,114
Total equity and liabilities400,259
411,262
Consolidated statement of cash flows (Unaudited)
for the six months ended June 30,
In 000€2023
2022
Operating activities Net (loss) profit for the period3,221
1,023
Non-cash and operational adjustments Depreciation of property plant & equipment7,364
7,630
Amortization of intangible assets3,334
3,186
Impairment of goodwill and intangible assets-
-
Share-based payment expense-
(97)
Loss (gain) on disposal of intangible assets and property, plant & equipment(106)
31
Movement in provisions(591)
5
Movement reserve for bad debt and slow moving inventory272
136
Financial income(2,095)
(5,509)
Financial expense2,055
2,564
Impact of foreign currencies(84)
(61)
(Deferred) income taxes1,254
885
Working capital adjustments(3,336)
10,154
Decrease (increase) in trade receivables and other receivables4,269
1,450
Decrease (increase) in inventories and contracts in progress81
(2,839)
Increase (decrease) in deferred revenue(1,772)
3,658
Increase (decrease) in trade payables and other payables(5,914)
7,884
Income tax paid & Interest received531
(201)
Net cash flow from operating activities11,819
19,747
for the six months ended June 30,
In 000€2023
2022
Investing activities Purchase of property, plant & equipment(4,333)
(7,494)
Purchase of intangible assets(1,056)
(2,553)
Proceeds from the sale of property, plant & equipment & intangible assets (net)218
184
Acquisition of subsidiary (net of cash)-
(25,610)
Net cash flow used in investing activities(5,172)
(35,473)
Financing activities Repayment of loans & borrowings(8,617)
(9,018)
Repayment of leases(1,744)
(1,668)
Capital increase-
-
Interest paid(891)
(1,155)
Other financial income (expense)(33)
604
Net cash flow from (used in) financing activities(11,285)
(11,236)
Net increase/(decrease) of cash & cash equivalents(4,638)
(26,964)
Cash & Cash equivalents at the beginning of the year140,867
196,028
Exchange rate differences on cash & cash equivalents57
(930)
Cash & cash equivalents at end of the period136,285
168,133
Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)
for the three months ended June 30,
for the six months ended June 30,
In 000€2023
2022
2023
2022
Net profit (loss) for the period(494)
896
3,221
1,023
Income taxes532
600
1,249
898
Financial expenses670
1,320
2,045
2,561
Financial income(1,305)
(3,901)
(2,114)
(5,517)
Depreciation and amortization5,353
5,374
10,664
10,816
EBITDA4,755
4,289
15,066
9,780
Share-based compensation expense (1)-
(49)
-
(97)
Adjusted EBITDA4,755
4,240
15,066
9,683
(1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.Segment P&L (Unaudited)
In 000€ MaterialiseSoftware MaterialiseMedical MaterialiseManufacturing Totalsegments Unallocated (1) Consolidated For the three months ended June 30, 2023 Revenues11,030
24,945
28,835
64,810
0
64,810
Segment (adj) EBITDA1,973
2,683
2,708
7,364
(2,608)
4,755
Segment (adj) EBITDA %17.9%
10.8%
9.4%
11.4%
7.3%
For the three months ended June 30, 2022 Revenues10,642
20,855
26,574
58,070
0
58,070
Segment (adj) EBITDA821
4,474
1,581
6,876
(2,636)
4,240
Segment (adj) EBITDA %7.7%
21.5%
5.9%
11.8%
7.3%
In 000€ MaterialiseSoftware MaterialiseMedical MaterialiseManufacturing Totalsegments Unallocated(1) Consolidated For the six months ended June 30, 2023 Revenues22,381
49,265
59,056
130,702
0
130,702
Segment (adj) EBITDA4,409
10,035
5,906
20,350
(5,285)
15,066
Segment (adj) EBITDA %19.7%
20.4%
10.0%
15.6%
11.5%
For the six months ended June 30, 2022 Revenues21,125
39,201
50,705
111,032
0
111,032
Segment (adj) EBITDA2,753
7,701
4,192
14,647
(4,963)
9,683
Segment (adj) EBITDA %13.0%
19.6%
8.3%
13.2%
8.7%
(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 June 30,
for the six months ended June 30,
In 000€2023
2022
2023
2022
Net profit (loss) for the period(494)
896
3,221
1,023
Income taxes532
600
1,249
898
Financial cost670
1,320
2,045
2,561
Financial income(1,305)
(3,901)
(2,114)
(5,517)
Operating (loss) profit(597)
(1,084)
4,402
(1,036)
Depreciation and amortization5,353
5,374
10,664
10,816
Corporate research and development737
816
1,459
1,465
Corporate headquarter costs2,576
2,104
5,238
4,612
Other operating income (expense)(705)
(640)
(1,412)
(1,211)
Segment adjusted EBITDA7,364
6,568
20,350
14,647
View source version on businesswire.com: https://www.businesswire.com/news/home/20230724765653/en/
Investor Relations Harriet Fried LHA 212.838.3777 hfried@lhai.com
1 Year Materialise NV Chart |
1 Month Materialise NV Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions