Q Conference Call

Transcription

1 Q Conference Call November 13, 2014 S. Kent Rockwell, Chairman and CEO David Burns, President and COO Brian Smith, CFO

2 Safe Harbor Statement These slides contain 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. Forward looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "typically," "anticipates," "believes," "appears," "could," "plan," and other similar words. Such statements include, but are not limited to, statements concerning future revenue and earnings, involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, which include our ability to qualify more materials in which we can print; the availability of skilled personnel; the impact of increased operating expenses and expenses relating to proposed acquisitions, investments and alliances; our strategy, including the expansion and growth of our operations; the impact of loss of key management; our plans regarding increased international operations in additional international locations; sufficiency of funds for required capital expenditures, working capital, and debt service; the adequacy of sources of liquidity; expectations regarding demand for our industrial products, operating revenues, operating and maintenance expenses, insurance expenses and deductibles, interest expenses, debt levels, and other matters with regard to outlook; demand for aerospace, automotive, heavy equipment, energy/oil/gas and other industrial products; the scope, nature or impact of acquisitions, alliances and strategic investments and our ability to integrate acquisitions and strategic investments; liabilities under laws and regulations protecting the environment; the impact of governmental laws and regulations including the related challenges of conducting business in international locations such a Russia; operating hazards, war, terrorism and cancellation or unavailability of insurance coverage; the effect of litigation and contingencies; the impact of disruption of our manufacturing facilities or PSCs; and the adequacy of our protection of our intellectual property; material weaknesses in our internal control over financial reporting and other factors disclosed in the Company's Annual Report on Form 10 K and other periodic reports filed with the Securities and Exchange Commission. Because they are forward looking, these statements should be evaluated in light of important risk factors and uncertainties. Should one or more of these risks or uncertainties materialize, or should any of ExOne's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward looking statements contained in these slides. 2

3 Strategic Overview Kent Rockwell, Chairman and CEO

4 Ongoing Progress Q3 Disappointment in Machine Revenue Revising 2014 Revenue Guidance Non-machine Revenue Up > 40% in Q3 & YTD Global Overview Americas Europe Asia Machine Order Activity Remains Strong 4

5 Q Update David Burns, President and COO

6 Q Investments People Our Most Significant Asset 158 Total Employees* Represents 4% growth in Q3 Q Q Q Q Q Q Q * Total employees excludes temporary employees 6

7 Q Investments (cont d) Enhancing Controls ISO 9001 Financial ERP system implementation in process 7

8 Q Investments (cont d) Completion of European Headquarters German Facility 8

9 Q Investments (cont d) Additional Capacity Expansion Italian PSC and sales center opened North Huntingdon, PA expansion nearly complete North Huntingdon Facility 9

10 Materials Development Carbon and graphite focus unique opportunities for binder jetting More than 25 powders under development Industrial ceramic development 10

11 3D Printed Metal Holography Binder jetting technology and our internally developed software offer the ability to process 2D images for the manufacturing of 3D printed plaques out of pure bronze. JPG Image JPG Converted to Printable.stl File Printed Bronze Plaque Within Minutes Elapsed time < 30 hours Copyright 2014 ExOne

12 Machine Development New Lab Machine M-Print Machine S-Max + Machine Series Production Machine 12

13 Revenue Q Q Revenue: $9.6M Revenue by Product Line Revenue by Region 44% 56% 23% 30% 47% Machines Non-machine Asia Europe Americas Non-Machine Revenue includes printed products, materials and other services 13

14 Revenue YTD Q YTD Revenue: $28.1M Revenue by Product Line Revenue by Region 45% 55% 24% 33% 43% Machines Non-Machine Asia Europe Americas Non-Machine Revenue includes printed products, materials and other services 14

15 Non-Machine Revenue Product & Aftermarket Quarterly Non-Machine Revenue ($ in millions) Trailing Twelve Months Non-Machine Revenue ($ in millions) $19.2 $11.7 $14.8 $3.3 $3.9 $5.4 Q Q Q Q TTM Q TTM Q TTM Non-Machine Revenue includes printed products, materials and other services 15

16 Machine Sales Quarterly Machine Sales ($ in millions) Trailing Twelve Months Machine Sales ($ in millions) $26.8 $19.6 $5.2 $7.8 $4.2 $7.0 Q Q Q Q TTM Q TTM Q TTM 16

17 Q Revenue Q4 Revenue Expectations Non-Machine Revenue Trend Record Machine Shipments Projected 17

18 Financial Brian Smith, Chief Financial Officer

19 Revenue, Gross Profit and Margin Q3 Revenue & Gross Profit ($ in millions) Trailing Twelve Months Revenue & Gross Profit ($ in millions) $8.5 $3.6 $11.6 $5.3 $2.5 $9.6 $18.6 $6.3 $41.5 $18.5 $38.8 $ % 45.2% 25.8% 33.8% 44.6% 25.5% Q Q Q Q TTM Q TTM Q TTM Revenue Gross Profit 19

20 SG&A Selling, General & Administrative investments leveling off SG&A ($ in millions) $3.6 $3.9 $3.7 $4.9 $5.2 $5.3 $4.6 Q Q Q Q Q Q Q

21 R&D Accelerated materials qualification activities and investments in machine technology Q3 R&D ($ in millions) $0.9 $1.3 $1.3 $1.7 $1.8 $1.9 $2.3 Q Q Q Q Q Q Q

22 Solid Balance Sheet for Growth Capital Available for Growth (in millions) December 31, 2013 September 30, 2014 Cash & equivalents $98.4 $45.2 Total debt $3.2 $2.8 Total equity $146.7 $

23 Capital Expenditures Updated 2014 CapEx Plan: $29M to $31M* Facility expansions: $20M to $21M PSC machines & related equipment: $7.0M to $7.5M ERP system: $2M to $2.5M $300K to $400K G&A expense * Revised CapEx Guidance as of November 12,

24 2014 Guidance* Revenue (updated) Gross Margin (1) (updated) SG&A R&D $45M to $50M 28% - 32% $19M to $21M $7M to $8M * Guidance as of November 12, 2014 (1) Excludes anticipated non-recurring costs estimated at $1.5 million to $2.5 million associated with planned facility expansions 24

25 Outlook Kent Rockwell, Chairman and CEO

26 Outlook 2014 Transition Year 2015 Organic growth 25%-35% Strategic growth Focus on sustained profitability 26

27 Questions? ExOne The Americas ExOne Europe ExOne Asia MID-ATLANTIC 127 Industry Boulevard North Huntingdon, PA USA NORTHWEST 1307 W. Valley Highway N. Auburn, WA USA ExOne GmbH Am Mittleren Moos Augsburg Germany +49 (0) Haneo Odawara-shi, Kanagawa Japan MIDWEST 2341 Alger Drive Troy, MI USA SOUTH 7409 Railhead Lane Houston, TX USA SOUTHWEST 3935 North Pecos Road North Las Vegas, NV USA ExOne Italy Srl Via Galileo Galilei 68 Località La Pigna Desenzano del Garda Brescia, Italy Consult with our Experts. Invest in an ExOne system or simply have ExOne manufacture a part for you.

28 Q Conference Call November 13, 2014 S. Kent Rockwell, Chairman and CEO David Burns, President and COO Brian Smith, CFO