3d Systems Corporation · NYSE:DDD
3d Systems — Q3 2011 Earnings Presentation
28 slides from 3d Systems's earnings presentation, Oct 27, 2011
Slide 1: Conference Call and Webcast: Third Quarter and Nine Months 2011
Conference Call and Webcast Third Quarter and Nine Months 2011 www.3dsystems.com NYSE:DDD 2011年10月27日
Slide 2: Participants
Participants Stacey Witten • Investor Relations Manager • President & Chief Executive Abe Reichental Officer • Senior Vice President & Chief Damon Gregoire Financial Officer Bob Grace • Vice President & General Counsel 2
Slide 3: Welcome Webcast Viewers
Welcome Webcast Viewers • 1-866-783-2140 in the To listen to the conference United States via phone and to ask • 1-857-350-1599 from questions during our Q&A outside the United States session, please dial: • Participant Code: 69090514 3
Slide 4: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward- looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, perfo
Slide 5: Operating Results
Operating Results Abe Reichental - President and CEO www.3dsystems.com NYSE:DDD 2011年10月27日
Slide 6: Third Quarter 2011 Highlights
Third Quarter 2011 Highlights Revenue contributions from all categories, including record printer unit sales, resulted in 48% gross profit improvement on 39% revenue growth compared to Q3 2010 Gross profit margin rebounded on record materials and services revenue growth, as printer price mix continu
Slide 7: Third Quarter Key Developments
Third Quarter Key Developments Completed several key acquisitions in support of our strategic growth, global expansion and diversification initiatives Added 18 new resellers to our global distribution channel that contributed to tripling total printer unit sales over the comparable 2010 quarter Grew
Slide 8: Financial Review
Financial Review Damon Gregoire - Senior Vice President and CFO www.3dsystems.com NYSE:DDD 2011年10月27日
Slide 9: Across-The-Board Revenue Growth
Across-The-Board Revenue Growth $ in millions Third Quarter 2010 $ 14.5 Printers 2% 2011 $ 14.8 Print 2010 $ 14.2 Materials 2011 $ 18.5 30% 2010 A $ 12.8 Services 2011 $ 24.3 90% 2010 $ 6.0 Healthcare 20% 2011 $ 7.2 Third quarter 2011 revenue grew 39% 12% came from organic growth 9
Slide 10: New Products And Materials Revenue Performance
New Products And Materials Revenue Performance $ in millions $60 New Products Nine Months Revenue $50 $40 9 months, 2009 $30 $50.5 9 months, 2010 $20 $36.6 9 months, 2011 $10 $23.9 $0 Integrated materials revenue grew 90% over New products revenue the comparable 2010 grew 38% over the 2010 period an
Slide 11: Across-The-Board Revenue Growth (Nine Months)
Across-The-Board Revenue Growth $ in millions Nine Months 2010 $ 34.0 Printers 31% 2011 $ 44.5 Print 2010 $ 41.8 Materials 2011 $ 50.5 21% 2010 A $ 32.5 Services 102% 2011 $ 65.6 2010 $ 14.5 Healthcare 38% 2011 $ 19.9 Nine Months 2011 revenue grew 48% 20% came from organic growth 11
Slide 12: Third Quarter 2011 Operating Results
Third Quarter 2011 Operating Results $ in millions, except earnings per share Third Quarter % Change Drivers 2011 2010 Favorable/(Unfavorable) Revenue $ 57.5 $ 41.5 39% Gross Profit $ 27.8 $ 18.8 48% % of Revenue 48% 45% Operating Expenses $19.0 $ 13.7 (39%) % of Revenue 33% 33% Net Income $ 7.2 $ 5
Slide 13: Nine Months 2011 Operating Results
Nine Months 2011 Operating Results $ in millions, except earnings per share Nine Months % Change Drivers 2011 2010 Favorable/(Unfavorable) Revenue $ 160.6 $ 108.3 48% Gross Profit $ 76.2 $ 49.1 55% % of Revenue 47% 45% Operating Expenses $ 52.0 $ 37.9 (37%) % of Revenue 32% 35% Net Income $ 24.8 $ 1
Slide 14: Factors Affecting Earnings Per Share
Factors Affecting Earnings Per Share EPS Third quarter 2011 diluted earnings per share $ 0.14 Nine months 2011 diluted earnings per share $ 0.54 Net income for the quarter included a $3.0 million of non-cash expenses related to depreciation, amortization and share-based compensation, $2.1 million of
Slide 15: Revenue by Category & Geography
Revenue by Category & Geography $ in millions Third Quarter Nine Months $ 160.6 $ 57.5 160 60 140 50 $ 108.3 Services 41% $ 41.5 120 42% 40 Services 100 31% 30% 30 80 Materials 31% 34% Materials 32% 60 39% 20 40 10 35% 26% 20 28% Printers 31% Printers 0 0 2010 2011 2010 2011 $ 160.6 $ 57.5 160 60 As
Slide 16: Third Quarter & Nine Months Gross Profit and Margin
Third Quarter & Nine Months Gross Profit and Margin Third Quarter 2011 2010 Yr-Yr% Gross Profit Gross Profit Category $ Millions Margin $ Millions Margin $ Margin Printers $ 5.3 36% $ 5.3 36% - - Print materials $ 12.0 65% $ 8.7 61% 38% 6% Services $ 10.5 43% $ 4.8 38% 117% 14% Total $ 27.8 48% $ 18
Slide 17: Third Quarter Operating Expenses
Third Quarter Operating Expenses ($ in millions) Third Quarter % Change 2011 2010 Category Favorable/(Unfavorable) Selling, general & administrative $ 15.1 $ 11.0 (38%) Research and development $ 3.9 $ 2.7 (43%) Total Operating Expenses $ 19.0 $ 13.7 (39%) % of Revenue 33% 45. 33% - - Columns may no
Slide 18: Nine Months Operating Expenses
Nine Months Operating Expenses ($ in millions) Nine Months % Change Favorable 2011 2010 Category (Unfavorable) Selling, general & administrative $ 42.2 $ 29.9 (41%) Research and development $ 9.7 $ 8.0 (22%) Total Operating Expenses $ 52.0 $ 37.9 (37%) % of Revenue 32%45. 35% 7% • Selling, general &
Slide 19: Working Capital
Working Capital ($ in millions) % Change September 30, 2011 December 31, 2010 Favorable (Unfavorable) Cash $ 72.6 $ 37.3 94% Inventory $ 27.8 $ 23.8 (17%) Accounts Receivable $ 42.6 $ 35.8 19% Accounts Payable $ 25.5 $ 26.6 4% Working Capital $ 89.1 45. $ 42.5 110% • Cash on hand for the first nine
Slide 20: Revised Operating Model
Revised Operating Model ($ millions) Q3 Actual 9 Months Actual Drivers Model Ranges Results Results Revenue $300 $400 $ 57.5 $160.6 Gross Profit 54% 60% 48% 47% SG&A 24% 21% 26% 26% R&D 7% 6% 7% 6% Operating Income 23% 33% 15% 15% Net Income After Tax* 16% 21% 13% 15% Depreciation & Amortization 4%
Slide 21: Margin Expansion Path Towards Operating Model
Margin Expansion Path Towards Operating Model 54% GPM at $300 million and 60% at $400 million revenue run-rate -Better overhead absorption from Margin Expansion higher revenue -Favorable print material mix towards -Higher personal printers Margin Compression integrated printers materials unit sales
Slide 22: Outlook and Progress
Outlook and Progress Abe Reichental - President and CEO www.3dsystems.com NYSE:DDD 2011年10月27日
Slide 23: Progress Against Our Growth Initiatives
Progress Against Our Growth Initiatives Introduced two new game changing printers Launched our first class VI Visijet® China Clear material India Alibre® 2012 Commercialized new affordable Formero Alibre Design™ CAD package Kemo Expanded our operations in Projet™ 1500 Visijet® Clear Australia, China
Slide 24: Revenue Outlook
Revenue Outlook We entered the fourth quarter of 2011 with a strong sales funnel and continued healthy backlog. Accordingly, we expect revenue growth over the prior year quarter and sequentially for the fourth quarter of 2011 We expect strong demand for our personal, professional and production prin
Slide 25: Gross Profit and Operating Expenses Outlook
Gross Profit and Operating Expenses Outlook Gross profit margin maybe impacted by: • Potential adverse printers mix in favor of higher unit volume, lower margin personal printers • Impact of integration costs of acquired businesses • Custom parts revenue with lower gross profit margins making up a h
Slide 26: Bottom Line
Bottom Line Our sales funnel remains robust and our backlog reflects the strength of our business model Our 3D content-to-print products and services are expected to generate increased customer demand Our business model is built around significant recurring revenue components that generate improved
Slide 27: Q&A Session
Q&A Session Out of respect for other conference call participants, please ask one question and then return to the queue to ask additional questions Please direct all questions through the teleconference portion of this call • U.S.: 1-866-783-2140 To ask questions: • International: 1-857-350-1599 • C
Slide 28: Thank You
Thank You www.3dsystems.com NYSE: DDD 2011年10月27日