Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Protolabs Reports Financial Results for the First Quarter of 2021 By: Proto Labs, Inc. via Business Wire May 06, 2021 at 06:00 AM EDT First Quarter 2021 Revenue of $116.1 million Proto Labs, Inc. (NYSE: PRLB), the world’s largest ecommerce manufacturer and supplier of on-demand prototype and production parts, today announced financial results for the first quarter ended March 31, 2021. First Quarter 2021 Highlights include: Revenue for the first quarter of 2021 was $116.1 million, representing a 10.4 percent increase compared to revenue of $105.2 million in the fourth quarter of 2020. 3D Hubs generated $5.8 million of revenue in the period between acquisition close (January 22, 2021) and the end of the first quarter. Net income for the first quarter of 2021 was $3.7 million, or $0.13 per diluted share. Non-GAAP net income was $11.0 million, or $0.40 per diluted share. See “Non-GAAP Financial Measures” below. “During the first quarter of 2021, we achieved two very important milestones, the successful launch of Protolabs 2.0 and the transformative acquisition of 3D Hubs, which will enable us to accelerate growth,” said Rob Bodor, President and Chief Executive Officer. “I am very pleased that we also delivered strong first quarter financial performance within our expectations. As the COVID-19 vaccine rollout progresses and global demand continues to recover, our best-in-class digital manufacturing model positions us to expand our leadership position.” Additional First Quarter 2021 Highlights include: Protolabs served 22,605 unique product developers during the year, representing a 24.5 percent increase over the fourth quarter of 2020. Gross margin in the first quarter of 2021 was 47.6 percent of revenue; Non-GAAP gross margin was 48.5 percent of revenue. See “Non-GAAP Financial Measures” below. EBITDA margin was 12.0 percent of revenue in the first quarter of 2021; adjusted EBITDA margin was 19.5 percent of revenue in the first quarter of 2021. See “Non-GAAP Financial Measures” below. Cash and investments balance was $93.1 million as of March 31, 2021. “We managed our financial performance very well in the first quarter through the Protolabs 2.0 systems launch and acquisition of 3D Hubs,” added John Way, Chief Financial Officer. “Our balance sheet remains very healthy with $93 million in cash and investments and no debt, providing flexibility and allowing us to continue to invest to serve our customers and drive future growth.” Non-GAAP Financial Measures The company has included non-GAAP revenue growth that excludes the impact of changes in foreign currency exchange rates and revenue earned from our acquisition of 3D Hubs (collectively, “non-GAAP revenue growth”). Management believes these metrics are useful in evaluating the underlying business trends and ongoing operating performance of the company. The company has included earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, and transaction costs (collectively, “Adjusted EBITDA”), in this press release to provide investors with additional information regarding the company’s financial results. The company has included non-GAAP operating margin, adjusted for stock-based compensation expense, amortization expense, and transaction costs (collectively, “non-GAAP operating margin”), in this press release to provide investors with additional information regarding the company’s financial results. The company has included non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, and transaction costs (collectively, “non-GAAP net income”), in this press release to provide investors with additional information regarding the company’s financial results. The company has provided below reconciliations of GAAP to non-GAAP net income, non-GAAP operating margin, non-GAAP revenue growth and Adjusted EBITDA, the most directly comparable measures calculated and presented in accordance with GAAP. These non-GAAP measures are used by the company’s management and board of directors to understand and evaluate operating performance and trends and provide useful measures for period-to-period comparisons of the company’s business. Accordingly, the company believes that these non-GAAP measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors. Conference Call The company has scheduled a conference call to discuss its first quarter 2021 financial results and second quarter 2021 outlook today, May 6, 2021 at 8:30 a.m. EST. To access the call in the U.S. please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. EST start time. No participant code is required. A simultaneous webcast of the call and accompanying presentation will be available via the investor relations section of the Protolabs website and the following link: https://edge.media-server.com/mmc/p/p2q42oaz. A replay will be available for 14 days following the call on the investor relations section of the Protolabs website. About Protolabs Protolabs is the world’s leading digital manufacturing source for rapid prototyping and on-demand production. The technology-enabled company produces custom components in as fast as 1 day with automated 3D printing, CNC machining, sheet metal fabrication, and injection molding processes. Its digital approach to manufacturing enables accelerated time to market, reduces manufacturing costs, and enables supply chain agility throughout the product life cycle. Visit protolabs.com for more information. Forward-Looking Statements Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Protolabs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances. Proto Labs, Inc. Condensed Consolidated Balance Sheets (In thousands) March 31, December 31, 2021 2020 (Unaudited) Assets Current assets Cash and cash equivalents $ 43,774 $ 127,603 Short-term marketable securities 19,592 34,088 Accounts receivable, net 74,666 57,877 Inventory 9,918 10,862 Prepaid expenses and other current assets 8,803 11,032 Income taxes receivable 1,763 540 Total current assets 158,516 242,002 Property and equipment, net 279,901 282,666 Goodwill 399,426 128,752 Other intangible assets, net 46,883 14,350 Long-term marketable securities 29,760 59,357 Operating lease assets 12,819 9,855 Financing lease assets 2,271 2,396 Other long-term assets 4,872 4,826 Total assets $ 934,448 $ 744,204 Liabilities and shareholders' equity Current liabilities Accounts payable $ 21,846 $ 18,248 Accrued compensation 11,745 11,989 Accrued liabilities and other 16,705 16,193 Current contingent consideration 5,221 - Current operating lease liabilities 2,732 3,272 Current finance lease liabilities 553 552 Income taxes payable 1,047 - Total current liabilities 59,849 50,254 Long-term contingent consideration 4,789 - Long-term operating lease liabilities 11,534 7,586 Long-term finance lease liabilities 1,779 1,919 Long-term deferred tax liabilities 36,899 33,854 Other long-term liabilities 6,167 6,235 Shareholders' equity 813,431 644,356 Total liabilities and shareholders' equity $ 934,448 $ 744,204 Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2021 2020 Revenue Injection Molding $ 56,359 $ 54,776 CNC Machining 36,703 37,885 3D Printing 17,235 15,948 Sheet Metal 5,219 5,649 Other 610 850 Total revenue 116,126 115,108 Cost of revenue 60,796 57,008 Gross profit 55,330 58,100 Operating expenses Marketing and sales 19,480 18,180 Research and development 12,181 8,987 General and administrative 19,408 14,108 Total operating expenses 51,069 41,275 Income from operations 4,261 16,825 Other (loss) income, net (313 ) 1,054 Income before income taxes 3,948 17,879 Provision for income taxes 236 3,895 Net income $ 3,712 $ 13,984 Net income per share: Basic $ 0.14 $ 0.52 Diluted $ 0.13 $ 0.52 Shares used to compute net income per share: Basic 27,464,136 26,776,806 Diluted 27,698,195 26,929,640 Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 Operating activities Net income $ 3,712 $ 13,984 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 10,059 7,958 Stock-based compensation expense 5,620 3,033 Deferred taxes (69 ) 3,392 Amortization of marketable securities 137 55 Realized gain on available-for-sale securities (166 ) - Other 155 (644 ) Changes in operating assets and liabilities (13,023 ) (5,368 ) Net cash provided by operating activities 6,425 22,410 Investing activities Purchases of property, equipment and other capital assets (6,546 ) (13,421 ) Cash used for acquisitions, net of cash acquired (127,709 ) - Purchases of other assets and investments - (3,000 ) Purchases of marketable securities (8,227 ) (37,629 ) Proceeds from sales of marketable securities 45,194 - Proceeds from maturities of marketable securities 7,155 10,700 Net cash used in investing activities (90,133 ) (43,350 ) Financing activities Proceeds from exercises of stock options and other 1,704 135 Purchases of shares withheld for tax obligations (1,994 ) (1,048 ) Repurchases of common stock - (11,185 ) Principal repayments of finance lease obligations (137 ) - Net cash used in financing activities (427 ) (12,098 ) Effect of exchange rate changes on cash and cash equivalents 306 (282 ) Net decrease in cash and cash equivalents (83,829 ) (33,320 ) Cash and cash equivalents, beginning of period 127,603 125,225 Cash and cash equivalents, end of period $ 43,774 $ 91,905 Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2021 2020 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and transaction costs GAAP net income $ 3,712 $ 13,984 Add back: Stock-based compensation expense 5,620 3,033 Amortization expense 1,543 754 Unrealized (gain) loss on foreign currency 622 (797 ) Transaction costs 2,515 - Total adjustments 1 10,300 2,990 Income tax benefits on adjustments 2 (3,001 ) (675 ) Non-GAAP net income $ 11,011 $ 16,299 Non-GAAP net income per share: Basic $ 0.40 $ 0.61 Diluted $ 0.40 $ 0.61 Shares used to compute non-GAAP net income per share: Basic 27,464,136 26,776,806 Diluted 27,698,195 26,929,640 1 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and transaction costs were included in the following GAAP consolidated statement of operations categories: Three Months Ended March 31, 2021 2020 Cost of revenue $ 977 $ 863 Marketing and sales 853 618 Research and development 624 521 General and administrative 7,224 1,785 Total operating expenses 8,701 2,924 Other income, net 622 (797 ) Total adjustments $ 10,300 $ 2,990 2 For the three-month periods ended March 31, 2021 and 2020, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. Our non-GAAP tax rates differ from our GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter. Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 Revenue $ 116,126 $ 115,108 Income from operations 4,261 16,825 GAAP operating margin 3.7 % 14.6 % Add back: Stock-based compensation expense 5,620 3,033 Amortization expense 1,543 754 Transaction costs 2,515 - Total adjustments 9,678 3,787 Non-GAAP income from operations $ 13,939 $ 20,612 Non-GAAP operating margin 12.0 % 17.9 % Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 GAAP net income $ 3,712 $ 13,984 Amortization expense 1,543 754 Depreciation expense 8,516 7,204 Interest income, net (87 ) (560 ) Tax expense 236 3,895 EBITDA 13,920 25,277 EBITDA Margin 12.0 % 22.0 % Add back: Stock-based compensation expense 5,620 3,033 Unrealized (gain) loss on foreign currency 622 (797 ) Transaction costs 2,515 - Total adjustments 8,757 2,236 Adjusted EBITDA $ 22,677 $ 27,513 Adjusted EBITDA Margin 19.5 % 23.9 % Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth (In thousands) (Unaudited) Three Months EndedMarch 31, 2021 Three Months EndedMarch 31, 2020 GAAP ForeignCurrency1 3D HubsAcquisition2 Non-GAAP GAAP % Change3 % ChangeOrganic4 Revenues United States $ 91,053 $ - $ (3,157 ) $ 87,896 $ 90,076 1.1 % (2.4 )% Europe 21,449 (1,560 ) (2,606 ) 17,283 20,787 3.2 (16.9 ) Japan 3,624 (85 ) - 3,539 4,245 (14.6 ) (16.6 ) Total Revenue $ 116,126 $ (1,645 ) $ (5,763 ) $ 108,718 $ 115,108 0.9 % (5.6 )% 1 Revenue for the three-month period ended March 31, 2021 has been recalculated using 2020 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 Revenue for the three-month period ended March 31, 2021 has been recalculated to exclude revenue earned from our acquisition of 3D Hubs to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. 3 This column presents the percentage change from GAAP revenue for the three-month period ended March 31, 2020 to GAAP revenue for the three-month period ended March 31, 2021. 4 This column presents the percentage change from GAAP revenue for the three-month period ended March 31, 2020 to non-GAAP revenue for the three-month period ended March 31, 2021 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended March 31, 2020, excluding the impact of 3D Hubs acquisition) in order to provide a constant-currency comparison. Proto Labs, Inc. Product Developer Information (Unaudited) Three Months Ended March 31, 2021 2020 Unique product developers and engineers served 22,605 20,876 View source version on businesswire.com: https://www.businesswire.com/news/home/20210506005278/en/Contacts Investor Relations Contact Protolabs Dan Schumacher, 763-479-7240 Vice President of Investor Relations daniel.schumacher@protolabs.com Media Contact Protolabs Brent Renneke, 763-479-7704 PR & Media Strategist brent.renneke@protolabs.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Protolabs Reports Financial Results for the First Quarter of 2021 By: Proto Labs, Inc. via Business Wire May 06, 2021 at 06:00 AM EDT First Quarter 2021 Revenue of $116.1 million Proto Labs, Inc. (NYSE: PRLB), the world’s largest ecommerce manufacturer and supplier of on-demand prototype and production parts, today announced financial results for the first quarter ended March 31, 2021. First Quarter 2021 Highlights include: Revenue for the first quarter of 2021 was $116.1 million, representing a 10.4 percent increase compared to revenue of $105.2 million in the fourth quarter of 2020. 3D Hubs generated $5.8 million of revenue in the period between acquisition close (January 22, 2021) and the end of the first quarter. Net income for the first quarter of 2021 was $3.7 million, or $0.13 per diluted share. Non-GAAP net income was $11.0 million, or $0.40 per diluted share. See “Non-GAAP Financial Measures” below. “During the first quarter of 2021, we achieved two very important milestones, the successful launch of Protolabs 2.0 and the transformative acquisition of 3D Hubs, which will enable us to accelerate growth,” said Rob Bodor, President and Chief Executive Officer. “I am very pleased that we also delivered strong first quarter financial performance within our expectations. As the COVID-19 vaccine rollout progresses and global demand continues to recover, our best-in-class digital manufacturing model positions us to expand our leadership position.” Additional First Quarter 2021 Highlights include: Protolabs served 22,605 unique product developers during the year, representing a 24.5 percent increase over the fourth quarter of 2020. Gross margin in the first quarter of 2021 was 47.6 percent of revenue; Non-GAAP gross margin was 48.5 percent of revenue. See “Non-GAAP Financial Measures” below. EBITDA margin was 12.0 percent of revenue in the first quarter of 2021; adjusted EBITDA margin was 19.5 percent of revenue in the first quarter of 2021. See “Non-GAAP Financial Measures” below. Cash and investments balance was $93.1 million as of March 31, 2021. “We managed our financial performance very well in the first quarter through the Protolabs 2.0 systems launch and acquisition of 3D Hubs,” added John Way, Chief Financial Officer. “Our balance sheet remains very healthy with $93 million in cash and investments and no debt, providing flexibility and allowing us to continue to invest to serve our customers and drive future growth.” Non-GAAP Financial Measures The company has included non-GAAP revenue growth that excludes the impact of changes in foreign currency exchange rates and revenue earned from our acquisition of 3D Hubs (collectively, “non-GAAP revenue growth”). Management believes these metrics are useful in evaluating the underlying business trends and ongoing operating performance of the company. The company has included earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, and transaction costs (collectively, “Adjusted EBITDA”), in this press release to provide investors with additional information regarding the company’s financial results. The company has included non-GAAP operating margin, adjusted for stock-based compensation expense, amortization expense, and transaction costs (collectively, “non-GAAP operating margin”), in this press release to provide investors with additional information regarding the company’s financial results. The company has included non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, and transaction costs (collectively, “non-GAAP net income”), in this press release to provide investors with additional information regarding the company’s financial results. The company has provided below reconciliations of GAAP to non-GAAP net income, non-GAAP operating margin, non-GAAP revenue growth and Adjusted EBITDA, the most directly comparable measures calculated and presented in accordance with GAAP. These non-GAAP measures are used by the company’s management and board of directors to understand and evaluate operating performance and trends and provide useful measures for period-to-period comparisons of the company’s business. Accordingly, the company believes that these non-GAAP measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors. Conference Call The company has scheduled a conference call to discuss its first quarter 2021 financial results and second quarter 2021 outlook today, May 6, 2021 at 8:30 a.m. EST. To access the call in the U.S. please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. EST start time. No participant code is required. A simultaneous webcast of the call and accompanying presentation will be available via the investor relations section of the Protolabs website and the following link: https://edge.media-server.com/mmc/p/p2q42oaz. A replay will be available for 14 days following the call on the investor relations section of the Protolabs website. About Protolabs Protolabs is the world’s leading digital manufacturing source for rapid prototyping and on-demand production. The technology-enabled company produces custom components in as fast as 1 day with automated 3D printing, CNC machining, sheet metal fabrication, and injection molding processes. Its digital approach to manufacturing enables accelerated time to market, reduces manufacturing costs, and enables supply chain agility throughout the product life cycle. Visit protolabs.com for more information. Forward-Looking Statements Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Protolabs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances. Proto Labs, Inc. Condensed Consolidated Balance Sheets (In thousands) March 31, December 31, 2021 2020 (Unaudited) Assets Current assets Cash and cash equivalents $ 43,774 $ 127,603 Short-term marketable securities 19,592 34,088 Accounts receivable, net 74,666 57,877 Inventory 9,918 10,862 Prepaid expenses and other current assets 8,803 11,032 Income taxes receivable 1,763 540 Total current assets 158,516 242,002 Property and equipment, net 279,901 282,666 Goodwill 399,426 128,752 Other intangible assets, net 46,883 14,350 Long-term marketable securities 29,760 59,357 Operating lease assets 12,819 9,855 Financing lease assets 2,271 2,396 Other long-term assets 4,872 4,826 Total assets $ 934,448 $ 744,204 Liabilities and shareholders' equity Current liabilities Accounts payable $ 21,846 $ 18,248 Accrued compensation 11,745 11,989 Accrued liabilities and other 16,705 16,193 Current contingent consideration 5,221 - Current operating lease liabilities 2,732 3,272 Current finance lease liabilities 553 552 Income taxes payable 1,047 - Total current liabilities 59,849 50,254 Long-term contingent consideration 4,789 - Long-term operating lease liabilities 11,534 7,586 Long-term finance lease liabilities 1,779 1,919 Long-term deferred tax liabilities 36,899 33,854 Other long-term liabilities 6,167 6,235 Shareholders' equity 813,431 644,356 Total liabilities and shareholders' equity $ 934,448 $ 744,204 Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2021 2020 Revenue Injection Molding $ 56,359 $ 54,776 CNC Machining 36,703 37,885 3D Printing 17,235 15,948 Sheet Metal 5,219 5,649 Other 610 850 Total revenue 116,126 115,108 Cost of revenue 60,796 57,008 Gross profit 55,330 58,100 Operating expenses Marketing and sales 19,480 18,180 Research and development 12,181 8,987 General and administrative 19,408 14,108 Total operating expenses 51,069 41,275 Income from operations 4,261 16,825 Other (loss) income, net (313 ) 1,054 Income before income taxes 3,948 17,879 Provision for income taxes 236 3,895 Net income $ 3,712 $ 13,984 Net income per share: Basic $ 0.14 $ 0.52 Diluted $ 0.13 $ 0.52 Shares used to compute net income per share: Basic 27,464,136 26,776,806 Diluted 27,698,195 26,929,640 Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 Operating activities Net income $ 3,712 $ 13,984 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 10,059 7,958 Stock-based compensation expense 5,620 3,033 Deferred taxes (69 ) 3,392 Amortization of marketable securities 137 55 Realized gain on available-for-sale securities (166 ) - Other 155 (644 ) Changes in operating assets and liabilities (13,023 ) (5,368 ) Net cash provided by operating activities 6,425 22,410 Investing activities Purchases of property, equipment and other capital assets (6,546 ) (13,421 ) Cash used for acquisitions, net of cash acquired (127,709 ) - Purchases of other assets and investments - (3,000 ) Purchases of marketable securities (8,227 ) (37,629 ) Proceeds from sales of marketable securities 45,194 - Proceeds from maturities of marketable securities 7,155 10,700 Net cash used in investing activities (90,133 ) (43,350 ) Financing activities Proceeds from exercises of stock options and other 1,704 135 Purchases of shares withheld for tax obligations (1,994 ) (1,048 ) Repurchases of common stock - (11,185 ) Principal repayments of finance lease obligations (137 ) - Net cash used in financing activities (427 ) (12,098 ) Effect of exchange rate changes on cash and cash equivalents 306 (282 ) Net decrease in cash and cash equivalents (83,829 ) (33,320 ) Cash and cash equivalents, beginning of period 127,603 125,225 Cash and cash equivalents, end of period $ 43,774 $ 91,905 Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2021 2020 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and transaction costs GAAP net income $ 3,712 $ 13,984 Add back: Stock-based compensation expense 5,620 3,033 Amortization expense 1,543 754 Unrealized (gain) loss on foreign currency 622 (797 ) Transaction costs 2,515 - Total adjustments 1 10,300 2,990 Income tax benefits on adjustments 2 (3,001 ) (675 ) Non-GAAP net income $ 11,011 $ 16,299 Non-GAAP net income per share: Basic $ 0.40 $ 0.61 Diluted $ 0.40 $ 0.61 Shares used to compute non-GAAP net income per share: Basic 27,464,136 26,776,806 Diluted 27,698,195 26,929,640 1 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and transaction costs were included in the following GAAP consolidated statement of operations categories: Three Months Ended March 31, 2021 2020 Cost of revenue $ 977 $ 863 Marketing and sales 853 618 Research and development 624 521 General and administrative 7,224 1,785 Total operating expenses 8,701 2,924 Other income, net 622 (797 ) Total adjustments $ 10,300 $ 2,990 2 For the three-month periods ended March 31, 2021 and 2020, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. Our non-GAAP tax rates differ from our GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter. Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 Revenue $ 116,126 $ 115,108 Income from operations 4,261 16,825 GAAP operating margin 3.7 % 14.6 % Add back: Stock-based compensation expense 5,620 3,033 Amortization expense 1,543 754 Transaction costs 2,515 - Total adjustments 9,678 3,787 Non-GAAP income from operations $ 13,939 $ 20,612 Non-GAAP operating margin 12.0 % 17.9 % Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 GAAP net income $ 3,712 $ 13,984 Amortization expense 1,543 754 Depreciation expense 8,516 7,204 Interest income, net (87 ) (560 ) Tax expense 236 3,895 EBITDA 13,920 25,277 EBITDA Margin 12.0 % 22.0 % Add back: Stock-based compensation expense 5,620 3,033 Unrealized (gain) loss on foreign currency 622 (797 ) Transaction costs 2,515 - Total adjustments 8,757 2,236 Adjusted EBITDA $ 22,677 $ 27,513 Adjusted EBITDA Margin 19.5 % 23.9 % Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth (In thousands) (Unaudited) Three Months EndedMarch 31, 2021 Three Months EndedMarch 31, 2020 GAAP ForeignCurrency1 3D HubsAcquisition2 Non-GAAP GAAP % Change3 % ChangeOrganic4 Revenues United States $ 91,053 $ - $ (3,157 ) $ 87,896 $ 90,076 1.1 % (2.4 )% Europe 21,449 (1,560 ) (2,606 ) 17,283 20,787 3.2 (16.9 ) Japan 3,624 (85 ) - 3,539 4,245 (14.6 ) (16.6 ) Total Revenue $ 116,126 $ (1,645 ) $ (5,763 ) $ 108,718 $ 115,108 0.9 % (5.6 )% 1 Revenue for the three-month period ended March 31, 2021 has been recalculated using 2020 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 Revenue for the three-month period ended March 31, 2021 has been recalculated to exclude revenue earned from our acquisition of 3D Hubs to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. 3 This column presents the percentage change from GAAP revenue for the three-month period ended March 31, 2020 to GAAP revenue for the three-month period ended March 31, 2021. 4 This column presents the percentage change from GAAP revenue for the three-month period ended March 31, 2020 to non-GAAP revenue for the three-month period ended March 31, 2021 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended March 31, 2020, excluding the impact of 3D Hubs acquisition) in order to provide a constant-currency comparison. Proto Labs, Inc. Product Developer Information (Unaudited) Three Months Ended March 31, 2021 2020 Unique product developers and engineers served 22,605 20,876 View source version on businesswire.com: https://www.businesswire.com/news/home/20210506005278/en/Contacts Investor Relations Contact Protolabs Dan Schumacher, 763-479-7240 Vice President of Investor Relations daniel.schumacher@protolabs.com Media Contact Protolabs Brent Renneke, 763-479-7704 PR & Media Strategist brent.renneke@protolabs.com
Proto Labs, Inc. (NYSE: PRLB), the world’s largest ecommerce manufacturer and supplier of on-demand prototype and production parts, today announced financial results for the first quarter ended March 31, 2021. First Quarter 2021 Highlights include: Revenue for the first quarter of 2021 was $116.1 million, representing a 10.4 percent increase compared to revenue of $105.2 million in the fourth quarter of 2020. 3D Hubs generated $5.8 million of revenue in the period between acquisition close (January 22, 2021) and the end of the first quarter. Net income for the first quarter of 2021 was $3.7 million, or $0.13 per diluted share. Non-GAAP net income was $11.0 million, or $0.40 per diluted share. See “Non-GAAP Financial Measures” below. “During the first quarter of 2021, we achieved two very important milestones, the successful launch of Protolabs 2.0 and the transformative acquisition of 3D Hubs, which will enable us to accelerate growth,” said Rob Bodor, President and Chief Executive Officer. “I am very pleased that we also delivered strong first quarter financial performance within our expectations. As the COVID-19 vaccine rollout progresses and global demand continues to recover, our best-in-class digital manufacturing model positions us to expand our leadership position.” Additional First Quarter 2021 Highlights include: Protolabs served 22,605 unique product developers during the year, representing a 24.5 percent increase over the fourth quarter of 2020. Gross margin in the first quarter of 2021 was 47.6 percent of revenue; Non-GAAP gross margin was 48.5 percent of revenue. See “Non-GAAP Financial Measures” below. EBITDA margin was 12.0 percent of revenue in the first quarter of 2021; adjusted EBITDA margin was 19.5 percent of revenue in the first quarter of 2021. See “Non-GAAP Financial Measures” below. Cash and investments balance was $93.1 million as of March 31, 2021. “We managed our financial performance very well in the first quarter through the Protolabs 2.0 systems launch and acquisition of 3D Hubs,” added John Way, Chief Financial Officer. “Our balance sheet remains very healthy with $93 million in cash and investments and no debt, providing flexibility and allowing us to continue to invest to serve our customers and drive future growth.” Non-GAAP Financial Measures The company has included non-GAAP revenue growth that excludes the impact of changes in foreign currency exchange rates and revenue earned from our acquisition of 3D Hubs (collectively, “non-GAAP revenue growth”). Management believes these metrics are useful in evaluating the underlying business trends and ongoing operating performance of the company. The company has included earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA, adjusted for stock-based compensation expense, unrealized (gain) loss on foreign currency, and transaction costs (collectively, “Adjusted EBITDA”), in this press release to provide investors with additional information regarding the company’s financial results. The company has included non-GAAP operating margin, adjusted for stock-based compensation expense, amortization expense, and transaction costs (collectively, “non-GAAP operating margin”), in this press release to provide investors with additional information regarding the company’s financial results. The company has included non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency, and transaction costs (collectively, “non-GAAP net income”), in this press release to provide investors with additional information regarding the company’s financial results. The company has provided below reconciliations of GAAP to non-GAAP net income, non-GAAP operating margin, non-GAAP revenue growth and Adjusted EBITDA, the most directly comparable measures calculated and presented in accordance with GAAP. These non-GAAP measures are used by the company’s management and board of directors to understand and evaluate operating performance and trends and provide useful measures for period-to-period comparisons of the company’s business. Accordingly, the company believes that these non-GAAP measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors. Conference Call The company has scheduled a conference call to discuss its first quarter 2021 financial results and second quarter 2021 outlook today, May 6, 2021 at 8:30 a.m. EST. To access the call in the U.S. please dial 877-709-8150 or outside the U.S. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. EST start time. No participant code is required. A simultaneous webcast of the call and accompanying presentation will be available via the investor relations section of the Protolabs website and the following link: https://edge.media-server.com/mmc/p/p2q42oaz. A replay will be available for 14 days following the call on the investor relations section of the Protolabs website. About Protolabs Protolabs is the world’s leading digital manufacturing source for rapid prototyping and on-demand production. The technology-enabled company produces custom components in as fast as 1 day with automated 3D printing, CNC machining, sheet metal fabrication, and injection molding processes. Its digital approach to manufacturing enables accelerated time to market, reduces manufacturing costs, and enables supply chain agility throughout the product life cycle. Visit protolabs.com for more information. Forward-Looking Statements Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Protolabs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Protolabs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Protolabs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances. Proto Labs, Inc. Condensed Consolidated Balance Sheets (In thousands) March 31, December 31, 2021 2020 (Unaudited) Assets Current assets Cash and cash equivalents $ 43,774 $ 127,603 Short-term marketable securities 19,592 34,088 Accounts receivable, net 74,666 57,877 Inventory 9,918 10,862 Prepaid expenses and other current assets 8,803 11,032 Income taxes receivable 1,763 540 Total current assets 158,516 242,002 Property and equipment, net 279,901 282,666 Goodwill 399,426 128,752 Other intangible assets, net 46,883 14,350 Long-term marketable securities 29,760 59,357 Operating lease assets 12,819 9,855 Financing lease assets 2,271 2,396 Other long-term assets 4,872 4,826 Total assets $ 934,448 $ 744,204 Liabilities and shareholders' equity Current liabilities Accounts payable $ 21,846 $ 18,248 Accrued compensation 11,745 11,989 Accrued liabilities and other 16,705 16,193 Current contingent consideration 5,221 - Current operating lease liabilities 2,732 3,272 Current finance lease liabilities 553 552 Income taxes payable 1,047 - Total current liabilities 59,849 50,254 Long-term contingent consideration 4,789 - Long-term operating lease liabilities 11,534 7,586 Long-term finance lease liabilities 1,779 1,919 Long-term deferred tax liabilities 36,899 33,854 Other long-term liabilities 6,167 6,235 Shareholders' equity 813,431 644,356 Total liabilities and shareholders' equity $ 934,448 $ 744,204 Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2021 2020 Revenue Injection Molding $ 56,359 $ 54,776 CNC Machining 36,703 37,885 3D Printing 17,235 15,948 Sheet Metal 5,219 5,649 Other 610 850 Total revenue 116,126 115,108 Cost of revenue 60,796 57,008 Gross profit 55,330 58,100 Operating expenses Marketing and sales 19,480 18,180 Research and development 12,181 8,987 General and administrative 19,408 14,108 Total operating expenses 51,069 41,275 Income from operations 4,261 16,825 Other (loss) income, net (313 ) 1,054 Income before income taxes 3,948 17,879 Provision for income taxes 236 3,895 Net income $ 3,712 $ 13,984 Net income per share: Basic $ 0.14 $ 0.52 Diluted $ 0.13 $ 0.52 Shares used to compute net income per share: Basic 27,464,136 26,776,806 Diluted 27,698,195 26,929,640 Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 Operating activities Net income $ 3,712 $ 13,984 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 10,059 7,958 Stock-based compensation expense 5,620 3,033 Deferred taxes (69 ) 3,392 Amortization of marketable securities 137 55 Realized gain on available-for-sale securities (166 ) - Other 155 (644 ) Changes in operating assets and liabilities (13,023 ) (5,368 ) Net cash provided by operating activities 6,425 22,410 Investing activities Purchases of property, equipment and other capital assets (6,546 ) (13,421 ) Cash used for acquisitions, net of cash acquired (127,709 ) - Purchases of other assets and investments - (3,000 ) Purchases of marketable securities (8,227 ) (37,629 ) Proceeds from sales of marketable securities 45,194 - Proceeds from maturities of marketable securities 7,155 10,700 Net cash used in investing activities (90,133 ) (43,350 ) Financing activities Proceeds from exercises of stock options and other 1,704 135 Purchases of shares withheld for tax obligations (1,994 ) (1,048 ) Repurchases of common stock - (11,185 ) Principal repayments of finance lease obligations (137 ) - Net cash used in financing activities (427 ) (12,098 ) Effect of exchange rate changes on cash and cash equivalents 306 (282 ) Net decrease in cash and cash equivalents (83,829 ) (33,320 ) Cash and cash equivalents, beginning of period 127,603 125,225 Cash and cash equivalents, end of period $ 43,774 $ 91,905 Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Net Income per Share (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2021 2020 Non-GAAP net income, adjusted for stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and transaction costs GAAP net income $ 3,712 $ 13,984 Add back: Stock-based compensation expense 5,620 3,033 Amortization expense 1,543 754 Unrealized (gain) loss on foreign currency 622 (797 ) Transaction costs 2,515 - Total adjustments 1 10,300 2,990 Income tax benefits on adjustments 2 (3,001 ) (675 ) Non-GAAP net income $ 11,011 $ 16,299 Non-GAAP net income per share: Basic $ 0.40 $ 0.61 Diluted $ 0.40 $ 0.61 Shares used to compute non-GAAP net income per share: Basic 27,464,136 26,776,806 Diluted 27,698,195 26,929,640 1 Stock-based compensation expense, amortization expense, unrealized (gain) loss on foreign currency and transaction costs were included in the following GAAP consolidated statement of operations categories: Three Months Ended March 31, 2021 2020 Cost of revenue $ 977 $ 863 Marketing and sales 853 618 Research and development 624 521 General and administrative 7,224 1,785 Total operating expenses 8,701 2,924 Other income, net 622 (797 ) Total adjustments $ 10,300 $ 2,990 2 For the three-month periods ended March 31, 2021 and 2020, income tax effects were calculated using the effective tax rate for the relevant jurisdictions. Our non-GAAP tax rates differ from our GAAP tax rates due primarily to the mix of activity incurred in domestic and foreign tax jurisdictions and removing effective tax rate benefits from stock-based compensation activity in the quarter. Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Operating Margin (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 Revenue $ 116,126 $ 115,108 Income from operations 4,261 16,825 GAAP operating margin 3.7 % 14.6 % Add back: Stock-based compensation expense 5,620 3,033 Amortization expense 1,543 754 Transaction costs 2,515 - Total adjustments 9,678 3,787 Non-GAAP income from operations $ 13,939 $ 20,612 Non-GAAP operating margin 12.0 % 17.9 % Proto Labs, Inc. Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended March 31, 2021 2020 GAAP net income $ 3,712 $ 13,984 Amortization expense 1,543 754 Depreciation expense 8,516 7,204 Interest income, net (87 ) (560 ) Tax expense 236 3,895 EBITDA 13,920 25,277 EBITDA Margin 12.0 % 22.0 % Add back: Stock-based compensation expense 5,620 3,033 Unrealized (gain) loss on foreign currency 622 (797 ) Transaction costs 2,515 - Total adjustments 8,757 2,236 Adjusted EBITDA $ 22,677 $ 27,513 Adjusted EBITDA Margin 19.5 % 23.9 % Proto Labs, Inc. Comparison of GAAP to Non-GAAP Revenue Growth (In thousands) (Unaudited) Three Months EndedMarch 31, 2021 Three Months EndedMarch 31, 2020 GAAP ForeignCurrency1 3D HubsAcquisition2 Non-GAAP GAAP % Change3 % ChangeOrganic4 Revenues United States $ 91,053 $ - $ (3,157 ) $ 87,896 $ 90,076 1.1 % (2.4 )% Europe 21,449 (1,560 ) (2,606 ) 17,283 20,787 3.2 (16.9 ) Japan 3,624 (85 ) - 3,539 4,245 (14.6 ) (16.6 ) Total Revenue $ 116,126 $ (1,645 ) $ (5,763 ) $ 108,718 $ 115,108 0.9 % (5.6 )% 1 Revenue for the three-month period ended March 31, 2021 has been recalculated using 2020 foreign currency exchange rates in effect during comparable periods to provide information useful in evaluating the underlying business trends excluding the impact of changes in foreign currency exchange rates. 2 Revenue for the three-month period ended March 31, 2021 has been recalculated to exclude revenue earned from our acquisition of 3D Hubs to provide information useful in evaluating the underlying business trends excluding the impact of acquisitions. 3 This column presents the percentage change from GAAP revenue for the three-month period ended March 31, 2020 to GAAP revenue for the three-month period ended March 31, 2021. 4 This column presents the percentage change from GAAP revenue for the three-month period ended March 31, 2020 to non-GAAP revenue for the three-month period ended March 31, 2021 (as recalculated using the foreign currency exchange rates in effect during the three-month period ended March 31, 2020, excluding the impact of 3D Hubs acquisition) in order to provide a constant-currency comparison. Proto Labs, Inc. Product Developer Information (Unaudited) Three Months Ended March 31, 2021 2020 Unique product developers and engineers served 22,605 20,876 View source version on businesswire.com: https://www.businesswire.com/news/home/20210506005278/en/
Investor Relations Contact Protolabs Dan Schumacher, 763-479-7240 Vice President of Investor Relations daniel.schumacher@protolabs.com Media Contact Protolabs Brent Renneke, 763-479-7704 PR & Media Strategist brent.renneke@protolabs.com