Stratasys Reports Record Fourth Quarter and Full Year Financial Results

TM and other paid parts services. They also include statements about future financial and operating results of our company after the acquisition of Solidscape and anticipated benefits of the acquisition. Actual results may differ from those expressed or implied in our forward-looking statements. Such forward-looking statements involve and are subject to certain risks and uncertainties, which may cause our actual results to differ materially from those discussed in a forward-looking statement. Such risk factors include our ability to successfully integrate and market Solidscape products, our ability to attract and retain management, and our ability to protect and defend intellectual property. These statements represent beliefs and expectations only as of the date they were made. We may elect to update forward-looking statements, but we expressly disclaim any obligation to do so, even if our beliefs and expectations change. In addition to the statements described above, such forward-looking statements are subject to the risks and uncertainties described more fully in our current report on Form 8-K filed in connection with the completion of our acquisition of Solidscape and in our reports filed or to be filed with the Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q.

Financial Tables & Non-GAAP Discussion

The information discussed within this release includes financial results that are in accordance with accounting principles generally accepted in the United States (GAAP). In addition, certain non-GAAP financial measures have been provided that exclude certain charges, expenses and income. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. The non-GAAP financial measures are provided in an effort to provide information that investors may deem relevant to evaluate results from the company’s core business operations and to compare the company’s performance with prior periods. The non-GAAP financial measures primarily identify and exclude certain discrete items, such as the warrant charge, restructuring expenses, amortization expenses and expenses associated with stock-based compensation required under ASC 718. The company uses these non-GAAP financial measures for evaluating comparable financial performance against prior periods.

This release is also available on the Stratasys Web site at www.Stratasys.com.

STRATASYS, INC. AND SUBSIDIARIES
       
CONSOLIDATED STATEMENTS OF OPERATIONS
 
                 
Three Months Ended December 31, Twelve Months Ended December 31,
2011 2010 2011 2010
    (unaudited)   (unaudited) (unaudited)    
 
Net sales
Products $ 36,203,136 $ 27,390,340 $ 127,476,277 $ 97,467,028
Services 7,369,270 6,579,013 28,418,086 25,364,673
Fair value of warrant related to OEM agreement   -     -     -     (4,987,806 )
43,572,406 33,969,353 155,894,363 117,843,895
 
Cost of sales
Products 17,791,760 14,002,547 61,597,044 50,358,570
Services   2,916,348     2,771,905     11,893,208     11,399,356  
20,708,108 16,774,452 73,490,252 61,757,926
       
Gross profit 22,864,298 17,194,901 82,404,111 56,085,969
 
Operating expenses
Research and development 3,672,249 2,563,575 14,359,828 9,755,168
Selling, general and administrative   10,299,981     8,477,780     39,038,316     32,863,463  
13,972,230 11,041,355 53,398,144 42,618,631
       
Operating income 8,892,068 6,153,546 29,005,967 13,467,338
 
Other income (expense)
Interest income, net 224,741 324,547 923,210 921,088
Foreign currency transaction losses, net (458,236 ) (46,991 ) (888,076 ) (617,174 )
Other, net   46,954     21,993     2,311,263     64,086  
(186,541 ) 299,549 2,346,397 368,000
       
Income before income taxes 8,705,527 6,453,095 31,352,364 13,835,338
 
Income tax expense   2,919,477     2,148,159     10,726,000     4,465,794  
 
Net income $ 5,786,050   $ 4,304,936   $ 20,626,364   $ 9,369,544  
 
Earnings per common share
Basic $ 0.27   $ 0.21   $ 0.98   $ 0.46  
Diluted $ 0.27   $ 0.20   $ 0.95   $ 0.44  
 

Weighted average number of common shares outstanding

Basic   21,207,133     20,758,096     21,132,580     20,579,412  
Diluted   21,588,350     21,390,095     21,653,185     21,129,533  
 
 
Note: Certain reclassifications have been made to prior period balances to conform to current period presentation.
 
STRATASYS, INC. AND SUBSIDIARIES
   
CONSOLIDATED BALANCE SHEETS
 
         
December 31, December 31,
2011 2010
    (unaudited)    
 
ASSETS
 
Current assets
Cash and cash equivalents $ 20,092,200 $ 27,554,411
Short-term investments - held to maturity 14,602,408 8,797,878

Accounts receivable, less allowance for doubtful accounts of $1,089,000 at December 31, 2011 and $1,095,000 at December 31, 2010

26,230,289 20,051,451
Inventories 22,771,460 17,880,714

Net investment in sales-type leases, less allowance for doubtful accounts of $230,000 at December 31, 2011 and $189,000 at December 31, 2010

3,295,039 3,096,911
Prepaid expenses and other current assets 3,259,012 3,384,394
Deferred income taxes   2,973,000     3,447,000  
Total current assets   93,223,408     84,212,759  
 
Property and equipment, net   39,669,433     29,872,945  
 
Other assets
Goodwill 25,393,967 867,700
Other Intangible assets, net 25,295,032 5,538,014
Net investment in sales-type leases 5,494,753 3,067,446
Long-term investments - available for sale - 1,185,250
Long-term investments - held to maturity 32,581,472 52,504,650
Other non-current assets   112,300     1,210,867  
Total other assets   88,877,524     64,373,927  
 
Total assets $ 221,770,365   $ 178,459,631  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities
Accounts payable and other current liabilities $ 19,368,197 $ 12,455,628
Unearned revenues   9,768,610     11,561,521  
Total current liabilities   29,136,807     24,017,149  
 
Non-current liabilities
Deferred tax liabilities 6,760,000 207,000
Unearned revenues - long-term   2,562,195     1,953,000  
 
Total liabilities   38,459,002     26,177,149  
 
Commitments and contingencies
 
Stockholders' equity

Common stock, $.01 par value, authorized 30,000,000 shares; 26,933,301 and 26,509,518 issued at December 31, 2011 and 2010, respectively

269,333 265,095
Additional paid-in capital 118,134,006 107,781,990
Retained earnings 104,011,848 83,385,484
Accumulated other comprehensive loss (99,399 ) (145,662 )

Treasury stock at cost, 5,687,631 shares at December 31, 2011 and 2010

  (39,004,425 )   (39,004,425 )
Total stockholders' equity   183,311,363     152,282,482  
 
Total liabilities and stockholders' equity $ 221,770,365   $ 178,459,631  
 
 
Note: Certain reclassifications have been made to prior period balances to conform to current period presentation.
 
STRATASYS, INC. AND SUBSIDIARIES
               
RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS
 
                                 
Three Months Ended December 31, 2011 Three Months Ended December 31, 2010
As Reported Non-GAAP As Reported Non-GAAP
    (unaudited)   Adjustments     (unaudited)       (unaudited)   Adjustments     (unaudited)
 
Net sales
Products $ 36,203,136 $ - $ 36,203,136 $ 27,390,340 $ - $ 27,390,340
Services 7,369,270 - 7,369,270 6,579,013 - 6,579,013
Fair value of warrant related to OEM agreement   -     -     -     -     -     -  
43,572,406 - 43,572,406 33,969,353 - 33,969,353
 
Cost of sales
Products 17,791,760 (436,012 ) (a) 17,355,748 14,002,547 - 14,002,547
Services   2,916,348     -     2,916,348     2,771,905     -     2,771,905  
20,708,108 (436,012 ) 20,272,096 16,774,452 - 16,774,452
           
Gross profit 22,864,298 436,012 23,300,310 17,194,901 - 17,194,901
 
Operating expenses
Research and development 3,672,249 - 3,672,249 2,563,575 - 2,563,575
Selling, general and administrative   10,299,981     (632,777 ) (b)   9,667,204     8,477,780     (310,544 ) (d)   8,167,236  
13,972,230 (632,777 ) 13,339,453 11,041,355 (310,544 ) 10,730,811
           
Operating income 8,892,068 1,068,789 9,960,857 6,153,546 310,544 6,464,090
 
Other income (expense)
Interest income, net 224,741 - 224,741 324,547 - 324,547
Foreign currency transaction losses, net (458,236 ) - (458,236 ) (46,991 ) - (46,991 )
Other, net   46,954     -     46,954     21,993     -     21,993  
(186,541 ) - (186,541 ) 299,549 - 299,549
           
Income before income taxes 8,705,527 1,068,789 9,774,316 6,453,095 310,544 6,763,639
 
Income tax expense   2,919,477     243,134   (c)   3,162,611     2,148,159     166,847   (c)   2,315,006  
 
Net income $ 5,786,050   $ 825,655   $ 6,611,705   $ 4,304,936   $ 143,697   $ 4,448,633  
 
Earnings per common share
Basic $ 0.27   $ 0.04   $ 0.31   $ 0.21   $ 0.01   $ 0.21  
Diluted $ 0.27   $ 0.04   $ 0.31   $ 0.20   $ 0.01   $ 0.21  
 

Weighted average number of common shares outstanding

Basic   21,207,133     21,207,133     20,758,096     20,758,096  
Diluted   21,588,350     21,588,350     21,390,095     21,390,095  
 
STRATASYS, INC. AND SUBSIDIARIES
               
RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS
 
                                 
Twelve Months Ended December 31, 2011 Twelve Months Ended December 31, 2010
As Reported Non-GAAP Non-GAAP
    (unaudited)   Adjustments     (unaudited)       As Reported   Adjustments     (unaudited)
 
Net sales
Products $ 127,476,277 $ - $ 127,476,277 $ 97,467,028 $ - $ 97,467,028
Services 28,418,086 - 28,418,086 25,364,673 - 25,364,673
Fair value of warrant related to OEM agreement   -     -     -     (4,987,806 )   4,987,806   (h)   -  
155,894,363 - 155,894,363 117,843,895 4,987,806 122,831,701
 
Cost of sales
Products 61,597,044 (1,723,792 ) (e) 59,873,252 50,358,570 - 50,358,570
Services   11,893,208     -     11,893,208     11,399,356     -     11,399,356  
73,490,252 (1,723,792 ) 71,766,460 61,757,926 - 61,757,926
           
Gross profit 82,404,111 1,723,792 84,127,903 56,085,969 4,987,806 61,073,775
 
Operating expenses
Research and development 14,359,828 - 14,359,828 9,755,168 - 9,755,168
Selling, general and administrative   39,038,316     (2,558,356 ) (f)   36,479,960     32,863,463     (1,242,176 ) (d)   31,621,287  
53,398,144 (2,558,356 ) 50,839,788 42,618,631 (1,242,176 ) 41,376,455
           
Operating income 29,005,967 4,282,149 33,288,116 13,467,338 6,229,982 19,697,320
 
Other income (expense)
Interest income, net 923,210 - 923,210 921,088 - 921,088
Foreign currency transaction losses, net (888,076 ) - (888,076 ) (617,174 ) - (617,174 )
Other, net   2,311,263     (1,830,596 ) (g)   480,667     64,086     -     64,086  
2,346,397 (1,830,596 ) 515,801 368,000 - 368,000
           
Income before income taxes 31,352,364 2,451,553 33,803,917 13,835,338 6,229,982 20,065,320
 
Income tax expense   10,726,000     601,345   (c)   11,327,345     4,465,794     2,220,765   (c)   6,686,559  
 
Net income $ 20,626,364   $ 1,850,208   $ 22,476,572   $ 9,369,544   $ 4,009,217   $ 13,378,761  
 
Earnings per common share
Basic $ 0.98   $ 0.09   $ 1.06   $ 0.46   $ 0.19   $ 0.65  
Diluted $ 0.95   $ 0.09   $ 1.04   $ 0.44   $ 0.19   $ 0.63  
 

Weighted average number of common shares outstanding

 

Basic   21,132,580     21,132,580     20,579,412     20,579,412  
Diluted   21,653,185     21,653,185     21,129,533     21,129,533  
 

These adjustments reconcile the Company’s GAAP results of operations to its non-GAAP results of operations. The Company believes that presentation of results adjusted for the non-GAAP items described below provides meaningful supplemental information to both management and investors.

 
(a) Represents amortization expense related to acquired Solidscape, Inc. intangible assets.
(b) Represents non-cash stock-based compensation expense of $499,444 and amortization expense of $133,333 related to acquired Solidscape, Inc. intangible assets.
(c) Represents the tax benefit related to non-GAAP adjustments.
(d) Represents non-cash stock-based compensation expense.

(e) Represents amortization expense of $1,162,698 related to acquired Solidscape, Inc. intangible assets and $561,094 for the revaluation of Solidscape, Inc. inventory at the time of acquistion.

(f) Represents non-cash stock-based compensation expense of $1,587,468, amortization expense of $355,556 related to acquired Solidscape, Inc. intangible assets and expense of $615,332 for the acquisition of Solidscape, Inc. during the second quarter of 2011.

(g) Represents a gain of $1,204,408 on the sale of an equity investment during the first quarter of 2011 and a gain of $626,188 on the sale of an auction rate security during the third quarter of 2011.

(h) Represents the fair value of a warrant issued during the first quarter of 2010 in connection with the Hewlett-Packard Company OEM agreement.
 

The Company considers these non-GAAP measures to be indicative of its core operating results and facilitates a comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes, however these measures should not be viewed as a substitute for the Company’s GAAP results.

 


« Previous Page 1 | 2 | 3 | 4  Next Page »



Review Article Be the first to review this article

Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Re-Use Your CAD: The ModelCHECK Handbook
Jobs
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
Senior Structural Engineer for Design Everest at San Francisco, CA
GIS Analyst II for Air Worldwide at Boston, MA
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017
SolidCAM: Program your CNCs directly inside your existing CAD system.



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise