FRIEDBERG, Germany–(BUSINESS WIRE)–voxeljet AG (NASDAQ: VJET) (the “Company”, or “voxeljet”), a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, today announced consolidated financial results for the second quarter ended 30 Giugno 2021.
Highlights – Second Quarter 2021 compared to the Second Quarter 2020
- Total revenues for the second quarter increased 26.2% to kEUR 4,943 from kEUR 3,916
- Gross profit margin increased to 28.6% from 25.9%
- Systems revenues increased 42.9% to kEUR 2,674 from kEUR 1,871
- Services revenues increased 11.0% to kEUR 2,269 from kEUR 2,045
- Reaffirm full year 2021 guidance
Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented, “I am very happy with the results for the second quarter, as we have made significant progress in our key projects: just recently, we signed a deal with a large multinational corporation for our new High Speed Sintering 3D printer as part of the beta program we have launched earlier this year. We have shipped the next VJET X units to the car maker’s facility. The 3D printers were brought in and are currently being installed in parallel with the ongoing operation of the VJET X units already in production. In our Services segment, the demand for 3D printed parts continues to be high in Europe and has significantly picked up in the US and also in China compared to the first quarter of 2021.”
Three Months Ended 30 Giugno 2021 Results
Revenues for the second quarter of 2021 increased by 26.2% to kEUR 4,943 compared to kEUR 3,916 in the second quarter of 2020.
Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, increased 42.9% to kEUR 2,674 in the second quarter of 2021 from kEUR 1,871 in last year’s second quarter. The Company delivered one new and one used and refurbished 3D printer in the second quarter of 2021, compared to two new 3D printers in last year’s second quarter. Revenue from the sale of 3D printers also increased, as the Company sold larger scale platforms in the second quarter of 2021, compared to last year’s same period. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues also increased in the second quarter year over year, which reflects the recovery from the economic slow-down mainly due to the ongoing global pandemic of COVID-19 disease (“the COVID-19 situation”). As our clients have begun to increase their production activities, the demand for consumables, maintenance service and spare parts increased. Systems revenues represented 54.1% of total revenues in the second quarter of 2021 compared to 47.8% in last year’s second quarter.
Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, increased 11.0% to kEUR 2,269 in the second quarter of 2021 from kEUR 2,045 in the comparative period of 2020. This was mainly due to a significant increase in revenue contributions from the German operation, reflecting the recovery from the COVID-19 related economic slow-down in Europe. In contrast to this, revenue contributions from our subsidiaries voxeljet America Inc. (“voxeljet America”) as well as from voxeljet China Co. Ltd. (“voxeljet China”) remained almost on the same level as the second quarter of 2020.
Cost of sales were kEUR 3,531 for the second quarter of 2021 compared to kEUR 2,901 for the second quarter of 2020.
Gross profit and gross profit margin were kEUR 1,412 and 28.6%, respectively, in the second quarter of 2021, compared to kEUR 1,015 and 25.9% in the second quarter of 2020.
Gross profit for our Systems segment slightly increased to kEUR 756 in the second quarter of 2021 from kEUR 619 in the second quarter of 2020, mainly due to higher gross profit contributions from Systems-related revenues reflecting the higher sales volume. Gross profit from the sale of 3D printers was almost flat. Gross profit margin for this segment decreased to 28.3% in the second quarter of 2021 compared to 33.1% in the second quarter of 2020, related to weaker gross profit margin from the sale of 3D printers due to the product mix, partially offset by improved gross profit margins from Systems-related revenues.
Gross profit for our Services segment increased to kEUR 656 in the second quarter of 2021 compared to kEUR 396 in the second quarter of 2020. Also, the gross profit margin for this segment increased to 28.9% in the second quarter of 2021 from 19.4% in the second quarter of 2020. This was mainly related to a substantial improvement in gross profit as well as gross profit margin contribution from the German service center as a result of higher utilization in-line with the increase in revenues. Also gross profit as well as gross profit margin contribution from our American service center slightly improved. Gross profit and gross profit margin from voxeljet China slightly decreased quarter over quarter, reflecting the drop in revenues.
Selling expenses were kEUR 1,466 for the second quarter of 2021 compared to kEUR 1,305 in the second quarter of 2020. The increase was due to higher distribution expenses in-line with the increase in revenues. Shipping and packaging expenses were a main driver of the selling expenses and can vary from quarter to quarter depending on quantity and types of products sold, as well as the destinations of where those goods are being delivered.
Administrative expenses were kEUR 1,986 for the second quarter of 2021 compared to kEUR 1,841 in the second quarter of 2020. The increase was mainly related to higher legal advisor fees related to our stock market listing as well as our communication to financial institutions in connection with funding activities.
Research and development (“R&D”) expenses slightly increased to kEUR 1,670 in the second quarter of 2021 from kEUR 1,620 in the second quarter of 2020. The increase of kEUR 50 was mainly due to higher usage of external services as well as higher material consumption, partially offset by lower depreciation and personnel expenses.
Other operating expenses in the second quarter of 2021 were kEUR 284 compared to kEUR 709 in the prior year period. This was mainly due to lower losses from foreign currency transactions of kEUR 252 for the second quarter of 2021 compared to kEUR 688 for the second quarter of 2020.
Other operating income was kEUR 112 for the second quarter of 2021 compared to kEUR 503 in the second quarter of 2020. The decrease was mainly due to the government grant received by voxeljet America in April 2020 from the United States Small Business Administration (“SBA”) under the COVID-19 funding program amounting to kEUR 295. The full amount was recognised in profit and loss, in the second quarter of 2020, as the related costs for which the grant is intended to compensate, occurred in this period and we assume, that we comply with the conditions of the funding. The assessment of SBA whether we are in compliance with the conditions, has not been performed yet. In addition, gains from foreign currency transactions decreased to kEUR 31 for the second quarter of 2021, compared to kEUR 63 in the last year’s second quarter.
The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to our US subsidiary.
Operating loss was kEUR 3,882 in the second quarter of 2021, compared to an operating loss of kEUR 3,957 in the comparative period in 2020. The slight improvement was mainly due to the significant increase in gross profit, partially offset by higher selling, administrative and research and development expenses. The impact of the quarter over quarter changes in other operating expenses and other operating income was almost flat.
Financial result was positive kEUR 1,378 in the second quarter of 2021, compared to a financial result of negative kEUR 1,172 in the comparative period in 2020. This was mainly related to higher finance income related to the revaluation of derivative financial instruments amounting to kEUR 1,966 compared to a finance expense of kEUR 983 in the last year’s same period. The derivative financial instruments are revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within financial result of the consolidated statements of comprehensive loss. An increase in our share price results in a finance expense, while a decrease leads to a finance income. Interest expense included interest from long term debt with other financial institutions which amounted to kEUR 537 for the second quarter of 2021, compared to kEUR 290 in the comparative period in 2020.
Net loss for the second quarter of 2021 was kEUR 2,504 or EUR 0.41 per share, as compared to net loss of kEUR 5,123, or EUR 1.06 per share, in the second quarter of 2020.
Six Months Ended 30 Giugno 2021 Results
Revenues for the six months ended 30 Giugno 2021 increased by 15.4% to kEUR 9,003 compared to kEUR 7,800 in the prior year period.
Systems revenues were kEUR 4,761 for the first six months of 2021 compared to kEUR 3,176 for the same period last year. The Company sold three new and one used and refurbished 3D printer during the first six months of 2021, compared to two new and one used and refurbished 3D printer in the prior year period. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The increase in revenues from our Systems segment was mainly due to significantly higher revenues from the sale of 3D printers, associated with the increased number of units but also the product mix, as the Company sold more larger scale platforms. In addition, Systems-related revenues increased, which reflects the recovery from the economic slow-down mainly due to the ongoing global pandemic of COVID-19 disease (“the COVID-19 situation”). Currently, we are able to perform installations of 3D printers as well as to offer service visits in most regions of the world, but there are still some constraints and obstacles. Systems revenues represented 52.9% of total revenues for the six months ended 30 Giugno 2021 compared to 40.7% for the same period in the prior year.
Services revenues were kEUR 4,242 for the six months ended 30 Giugno 2021 compared to kEUR 4,624 for the same period last year. This decrease of 8.3% was mainly due to lower revenue contributions from our subsidiaries voxeljet America as well as voxeljet China, still impacted by lower market demand related to the slowdown of the economy caused by the COVID-19 situation during the first half of 2021. Revenue contributions from the German service center was almost on the same level like last year’s same period, due to a strong second quarter of 2021.
Cost of sales for the six months ended 30 Giugno 2021 were kEUR 6,552, an increase of kEUR 922, over cost of sales of kEUR 5,630 for the same period in 2020.
Gross profit and gross profit margin for the six months ended 30 Giugno 2021 were kEUR 2,451 and 27.2%, respectively, compared to kEUR 2,170 and 27.8% in the prior year period.
Gross profit for our Systems segment increased to kEUR 1,337 for the six months ended 30 Giugno 2021 from kEUR 980 in the same period in 2020. This increase was mainly due to the significant increase in revenues of kEUR 1,611, due to higher sales of 3D printers, but also due to higher Systems-related revenues. The gross profit margin for this segment amounted to 28.1% compared to 30.9% for the prior year period. This was mainly due to lower gross profit margin from the sale of 3D printers related to the product mix, partially offset by improved gross profit margins from Systems-related revenues.
Gross profit for our Services segment slightly decreased to kEUR 1,114 for the six months ended 30 Giugno 2021 from kEUR 1,190 in the same period of 2020. The gross profit margin for this segment increased to 26.3% for the first six months of 2021 from 25.7% in the same period in 2020 and was therefore almost flat. In spite of decreased revenues from the Services segment, there were no significant changes in gross profit as well as gross profit margin, due to cost saving measures.
Selling expenses were kEUR 2,914 for the six months ended 30 Giugno 2021 compared to kEUR 2,841 in the same period in 2020. The year over year increase was mainly due to higher distribution expenses corresponding to the increase in revenues. Shipping and packaging expenses as a main driver of the selling expenses could vary from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.
Administrative expenses increased by kEUR 252 to kEUR 3,469 for the first six months of 2021 from kEUR 3,217 in the prior year’s period. This was mainly related to higher legal advisor fees related to our stock market listing as well as our communication to financial institutions in connection with funding activities.
R&D expenses amounted to kEUR 3,274 for the six months ended 30 Giugno 2021 compared to kEUR 3,255 in the same period in 2020, and were therefore almost unchanged.
Other operating expenses for the six months ended 30 Giugno 2021 were kEUR 385 compared to kEUR 1,368 in the prior year period. This was mainly due to lower losses from foreign currency transactions amounting to kEUR 340 for the six months ended 30 Giugno 2021 compared to kEUR 1,301 in the prior year’s period.
Other operating income was kEUR 1,026 for the six months ended 30 Giugno 2021, compared to kEUR 1,035 in the prior year period. In April 2020, voxeljet America received a government grant from the United States Small Business Administration (“SBA”) under the COVID-19 funding program amounting to kEUR 295. The full amount was recognised in profit and loss, in the second quarter of 2020. We recorded significantly higher gains from foreign exchange transactions amounting to kEUR 810 for the six months ended 30 Giugno 2021, compared to kEUR 490 in comparative period in 2020.
The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to our US subsidiary.
Operating loss was kEUR 6,565 in the six months ended 30 Giugno 2021, compared to an operating loss of kEUR 7,476 in the comparative period in 2020. The improvement was primarily driven by the net impact from other operating expenses and other operating income amounting to kEUR 641 positive for the six months ended 30 Giugno 2021, compared to kEUR 333 negative for the six months ended 30 Giugno 2020. In addition, gross profit increased by kEUR 281. This was partially offset by higher operating expenses in the functions administration and sales and marketing, while research and development expenses remained almost unchanged.
Financial result was negative kEUR 4,320 for the six months ended 30 Giugno 2021, compared to a financial result of negative kEUR 191 in the comparative period in 2020. This was mainly related to higher finance expense related to the revaluation of derivative financial instruments amounting to kEUR 3,222 compared to a finance income of kEUR 574 in the last year’s same period. The significant revaluation impact for the first half of 2021 was related to the performance participation interest (“PPI”) for tranche A and tranche B1 of the European Investment Bank (the “EIB”) loan in connection with the anti-dilution protection clause. As a result of two capital increases effective 25 Gennaio 2021 and 17 Febbraio 2021, the number of ordinary shares under the Synthetic Warrant Agreement was increased for tranches A and B1, which resulted in a significant finance expense in the first quarter of 2021. Financial result also consisted of interest expense for long-term debt amounting to kEUR 1,061 in the six months ended 30 Giugno 2021, compared to kEUR 609 for the six months ended 30 Giugno 2020.
Net loss for the six months ended 30 Giugno 2021 was kEUR 10,833, or EUR 1.88 per share, as compared to net loss of kEUR 7,724, or EUR 1.59 per share in the prior year period.
Business Outlook
Our revenue guidance for the third quarter of 2021 is expected to be in the range of kEUR 4,500 to kEUR 5,500.
We reaffirm our guidance for the full year ending 31 Dicembre 2021:
– Full year revenue is expected to be in the range of kEUR 22,500 to kEUR 27,500
– Gross margin is expected to be above 32.5%
– Operating expenses for the full year are expected as follows: selling and administrative expenses are expected to be in the range of kEUR 11,400 to kEUR 11,900 and R&D expenses are projected to be between approximately kEUR 6,000 and kEUR 6,250. Depreciation and amortization expense is expected to be between kEUR 3,000 and kEUR 3,250.
– Adjusted EBITDA for the fourth quarter of 2021 is expected to be neutral-to-positive. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles before interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other operating (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries.
– Capital expenditures are projected to be in the range of kEUR 1,000 to kEUR 1,250, which primarily includes ongoing investments in our global subsidiaries.
Our total backlog of 3D printer orders at 30 Giugno 2021 was kEUR 6,157, which represents eight 3D printers. This compares to a backlog of kEUR 6,844 representing nine 3D printers, at 31 Dicembre 2020. As production and delivery of our printers is generally characterized by lead times ranging between three to nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for the respective 3D printer, as well as the timing of customers’ requested deliveries.
At 30 Giugno 2021, we had cash and cash equivalents of kEUR 5,849 and restricted cash of kEUR 2,188 and held kEUR 10,434 of investments in bond funds and term deposits, which are included in current financial assets on our consolidated statements of financial position.
Webcast and Conference Call Details
The Company will host a conference call and webcast to review the results for the second quarter of 2021 on Friday, 13 Agosto 2021 at 8:30 a.m. Eastern Time. Participants from voxeljet will include its Chief Executive Officer, Dr. Ingo Ederer, and its Chief Financial Officer, Rudolf Franz, who will provide a general business update and respond to investor questions.
Interested parties may access the live audio broadcast by dialing 1-877-705-6003 in the United States/Canada, or 1-201-493-6725 for international, Conference Title “voxeljet AG Second Quarter 2021 Financial Results Conference Call”. Investors are requested to access the call at least five minutes before the scheduled start time in order to complete a brief registration. An audio replay will be available approximately two hours after the completion of the call at 1-844-512-2921 or 1-412-317-6671, Replay Conference ID number 13721393. The recording will be available for replay through 20 Agosto 2021.
A live webcast of the call will also be available on the investor relations section of the Company’s website. Please go to the website https://event.on24.com/wcc/r/3195800/ED0E584F03696A7CE907C5ACA9464536 at least fifteen minutes prior to the start of the call to register, download and install any necessary audio software. A replay will also be available as a webcast on the investor relations section of the Company’s website.
Non-IFRS Measure
Management regularly uses both IFRS and non-IFRS results and expectations internally to assess its overall performance of the business, making operating decisions, and forecasting and planning for future periods. Management believes that Adjusted EBITDA is a useful financial measure to the Company’s investors as it helps investors better understand and evaluate the projections our management board provides. The Company’s calculation of Adjusted EBITDA may not be comparable to similarly titled financial measures reported by other peer companies. Adjusted EBITDA should not be considered as a substitute to financial measures prepared in accordance with IFRS.
The Company uses Adjusted EBITDA as a supplemental financial measure of its financial performance. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles, interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries. Management believes Adjusted EBITDA to be an important financial measure because it excludes the effects of fluctuating foreign exchange gains or losses on the intercompany loans granted to its subsidiaries. We are unable to reasonably estimate the potential full-year financial impact of foreign currency translation because of volatility in foreign exchange rates. Therefore, we are unable to provide a reconciliation to our forward-looking guidance for non-GAAP Adjusted EBITDA without unreasonable effort as certain information necessary to calculate such measure on an IFRS basis is unavailable, dependent on future events outside of our control and cannot be predicted without unreasonable efforts by the Company.
About voxeljet
voxeljet is a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers. The Company’s 3D printers employ a powder binding, additive manufacturing technology to produce parts using various material sets, which consist of particulate materials and proprietary chemical binding agents. The Company provides its 3D printers and on-demand parts services to industrial and commercial customers serving the automotive, aerospace, film and entertainment, art and architecture, engineering and consumer product end markets. For more information, visit http://www.voxeljet.de/en/.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements concerning our business, operations and financial performance. Any statements that are not of historical facts may be deemed to be forward-looking statements. You can identify these forward-looking statements by words such as ‘‘believes,’’ ‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘projects,’’ ‘‘plans,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘could,’’ ‘‘might,’’ ‘‘will,’’ ‘‘should,’’ ‘‘aims,’’ or other similar expressions that convey uncertainty of future events or outcomes. Forward-looking statements include statements regarding our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations concerning, among other things, our results of operations, financial condition, business outlook, the industry in which we operate and the trends that may affect the industry or us. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that forward-looking statements are not guarantees of future performance. All of our forward-looking statements are subject to known and unknown risks, uncertainties and other factors that are in some cases beyond our control and that may cause our actual results to differ materially from our expectations, including those risks identified under the caption “Risk Factors” in the Company’s Annual Report on Form 20-F and in other reports the Company files with the U.
Contacts
Investors and Media
Johannes Pesch
Director Investor Relations and Business Development
johannes.pesch@voxeljet.de
Office: +49 821 7483172
Mobile: +49 176 45398316
