voxeljet AG Reports Financial Results for the Fourth Quarter and Full Year Ended December 31, 2015

FRIEDBERG, Germany–(BUSINESS WIRE)–voxeljet AG (NYSE: 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 fourth quarter and full year
ended December 31, 2015.

Highlights

  • Total revenues for the full year increased 48.9% to kEUR 24,064 from
    kEUR 16,163
  • Total revenues for the fourth quarter increased 19.4% to kEUR 8,281
    from kEUR 6,938
  • Systems revenues for the fourth quarter increased 15.4% to kEUR 4,902
    from kEUR 4,247
  • Services revenues for the fourth quarter increased 25.6% to kEUR 3,379
    from kEUR 2,691
  • Successfully completed the previously announced repositioning of
    voxeljet UK
  • Established two new subsidiaries in China and India
  • Ended the year with approximately kEUR 34,000 of liquidity
  • First quarter ended March 31, 2016 revenue guidance of between kEUR
    5,000 and kEUR 5,500
  • Reaffirm full year 2016 guidance

Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented, “We
continue to make significant progress with our growth initiatives and
are very excited to have grown our business by approximately 50%
compared to the prior year. We successfully completed the previously
announced repositioning of voxeljet UK to focus its future activities
solely on selling high-speed, large format 3D printers and on-demand
parts services to industrial and commercial customers, which should
improve profitability. In addition, our newly established operations in
China and India coupled with our strong balance sheet will help to
secure our future growth plans. We reaffirm our full year 2016 guidance.”

Repositioning of voxeljet UK

As previously disclosed, following a review of the financial performance
of voxeljet UK and the current market environment, the Company decided
in October 2015 to focus voxeljet UK’s future activities solely on
selling high-speed, large-format 3D printers and on-demand parts
services to industrial and commercial customers.

As a result, we entered into an agreement in November 2015 to sell
certain assets supporting certain business lines that serve customers in
the film and entertainment industry, transfer certain employees and
contractual arrangements and settle the earnout and employment agreement
with the managing director entered into in connection with the
acquisition of voxeljet UK. The loss from the sale transaction and
additional charges from the restructuring of voxeljet UK amounted
to kEUR 2,354 and kEUR 2,663 for the fourth quarter and the full year
2015, respectively. The loss includes a loss from the sale of assets,
contract termination and transfer of employees and impairment charges of
intangible assets and inventories.

Fourth Quarter 2015 Results

Revenues for the fourth quarter of 2015 increased by 19.4% to kEUR 8,281
compared to kEUR 6,938 in the fourth quarter of 2014.

Revenues from our Systems segment, which focuses on the development,
production and sale of 3D printers, increased 15.4% to kEUR 4,902 in the
fourth quarter of 2015 from kEUR 4,247 in the previous fourth quarter.
The Company sold six new printers and three used and refurbished
printers in the fourth quarter of 2015, compared to seven new printers
in the previous fourth quarter. Systems revenues also include all
revenues from consumables, spare parts and maintenance. Systems revenues
represented 59.2% of total revenues in the fourth quarter of 2015
compared to 61.2% in the previous fourth quarter.

Revenues from our Services segment, which focuses on the printing of
on-demand parts for our customers, increased 25.6% to kEUR 3,379 in the
fourth quarter of 2015 from kEUR 2,691 for the same quarter in the
previous year. This was mainly due to the revenue contribution from our
subsidiaries voxeljet UK, acquired in the fourth quarter of 2014, and
voxeljet America, which began printing on-demand parts in the first
quarter of 2015.

Cost of sales was kEUR 6,615 for the fourth quarter of 2015, and
included an inventory impairment charge of kEUR 1,068 related to the
strategic repositioning of voxeljet UK. This compared to cost of sales
of kEUR 3,950 for the fourth quarter of 2014.

Gross profit was kEUR 1,666 in the fourth quarter of 2015 compared to
kEUR 2,988 in the fourth quarter of 2014. The gross profit margin was
20.1% in the fourth quarter of 2015 compared to 43.1% in the fourth
quarter of 2014.

Gross profit for our Systems segment was kEUR 2,003 in the fourth
quarter of 2015 compared to kEUR 1,807 in the fourth quarter of 2014.
The gross profit margin for this segment decreased to 40.9% in the
fourth quarter of 2015 compared to 42.5% in the fourth quarter of 2014.
The lower gross margin was primarily the result of the product mix in
the quarter. In addition, higher overhead costs related to our growth
strategy also affected the cost of sales in the Systems segment, which
negatively impacted gross profit and margin. As of December 31, 2015, 63
people were employed in the Systems segment, compared to 37 as of
December 31, 2014.

Gross profit for our Services segment was negative kEUR 337 in the
fourth quarter of 2015 and included an inventory impairment expense of
kEUR 1,068 related to the repositioning of voxeljet UK. This compared to
gross profit and gross margin of kEUR 1,181 and 43.9% in the fourth
quarter of 2014. Excluding the impairment expense, gross profit in the
Services segment for the group was mixed. The gross profit for Services
at our facility in Germany was above group level, as demand for both
sand and plastic (PMMA) parts remained robust. This was offset by the
lower gross profit of our subsidiaries in the United States and the
United Kingdom, both of which we expect to improve progressively
throughout the current year as a result of our strategic repositioning
of voxeljet UK and the continuing scale up of operations at voxeljet
America.

Selling expenses were kEUR 1,975 for the fourth quarter of 2015 compared
to kEUR 1,118 in the fourth quarter of 2014. The increase of kEUR 857
includes an impairment charge related to the repositioning of voxeljet
UK of kEUR 380. In addition, commissions for sales agents increased,
which was in line with our higher sales.

Administrative expenses were kEUR 1,145 for the fourth quarter of 2015
compared to kEUR 1,383 in the fourth quarter of 2014.

Research and development (“R&D”) expenses were kEUR 808 in the fourth
quarter of 2015 compared to kEUR 1,316 in the prior year period. The
decrease is related to the termination of certain R&D projects at
voxeljet UK as part of its strategic repositioning. We continue to
invest in core R&D in Germany with a number of active projects in
various stages of development. These investments are intended to
strengthen our leadership in technology.

Other operating expenses in the fourth quarter of 2015 were kEUR 497
compared to kEUR -3 in the prior year period, mainly due to expenses
allocated to this line item related to the repositioning of voxeljet UK,
including kEUR 342 for the transfer of certain employees and kEUR 129
for disposal of goodwill.

Other operating income was kEUR 436 for the fourth quarter of 2015
compared to kEUR 281 in the fourth quarter of 2014. This mainly includes
the recognition of income related to sale and leaseback transactions.

Operating loss was kEUR 2,323 in the fourth quarter of 2015, compared to
an operating loss of kEUR 545 in the prior year period. Our increased
operating loss in the fourth quarter of 2015 was the result of an
increase in our operating expenses, primarily caused by the expenses
related to the repositioning of voxeljet UK, as well as higher selling
expenses and increased headcount related to the pursuit of our growth
strategy.

Net loss for the fourth quarter of 2015 was kEUR 2,431, or EUR 0.65 per
share as compared to net loss of kEUR 698, or EUR 0.17 per share, in the
fourth quarter of 2014. This is based on a weighted average number of
ordinary shares outstanding of 3.720 million during the fourth quarter
of 2015 and 2014, respectively.

Based on a conversion rate of five American Depositary Shares (“ADSs”)
per ordinary share, net loss was EUR 0.13 per ADS for the fourth quarter
of 2015 compared to net loss of EUR 0.03 per ADS in the fourth quarter
of 2014.

Full Year 2015 Results

Revenues for the full year ended December 31, 2015 increased by 48.9% to
kEUR 24,064 compared to kEUR 16,163 in the prior year period.

Systems revenues were kEUR 11,113 for the full year 2015 compared to
kEUR 9,057 in the prior year period. The Company sold eighteen 3D
printers during 2015 compared to fourteen 3D printers in the prior year
period. Systems revenues represented 46.2% of total revenues for the
full year ended December 31, 2015 compared to 56.0% for the same period
a year ago.

Services revenues were kEUR 12,951 for the full year ended December 31,
2015 compared to kEUR 7,106 for the same period a year ago. This
increase was mainly due to the revenue contribution from our
subsidiaries voxeljet UK and voxeljet America.

Cost of sales for the full year ended December 31, 2015 was kEUR 17,147,
an increase of kEUR 7,309, or 74.3%, over cost of sales of kEUR 9,838
for the same period in 2014. The increase was primarily the result of
higher cost of sales from our subsidiaries in the United States and the
United Kingdom. Cost of sales in 2015 includes an impairment charge of
kEUR 309 on the digital library intangible asset at voxeljet UK, as well
as an inventory write-down of kEUR 1,068. Furthermore, because the
targets of the second performance period associated with our Long Term
Cash Incentive Plan (“LTCIP”), implemented effective January 1, 2013
were not achieved, the corresponding accrual of kEUR 628 was reversed in
the fourth quarter of 2015. For the full year ended December 31, 2014,
the cost of sales related to our LTCIP was kEUR 192.

Gross profit and gross margin for the full year ended December 31, 2015
were kEUR 6,917 and 28.7%, respectively, and included impairment
expenses of kEUR 1,377 related to the repositioning of voxeljet UK. This
compared to gross profit and gross margin of kEUR 6,325 and 39.1% in the
prior year period.

Gross profit for our Systems segment increased to kEUR 3,849 for the
full year ended December 31, 2015 from kEUR 3,301 in 2014. The gross
profit margin for this segment decreased to 34.6% compared to 36.4% for
the prior period primarily due to a less favorable printer mix.

Gross profit for our Services segment was kEUR 3,068 for the full year
ended December 31, 2015 compared to kEUR 3,024 in 2014. The gross profit
margin for this segment decreased to 23.7% from 42.6%. The impairment
charge related to the repositioning of voxeljet UK in cost of sales
recognized in the full year 2015 (described above), is entirely
attributed to the Services segment. The decrease in gross profit margin
was also attributable to lower gross margin contributions from our
subsidiaries in the United States and the United Kingdom for the full
year ended December 31, 2015.

Selling expenses were kEUR 6,922 for the full year ended December 31,
2015 compared to kEUR 3,746 in the same period in 2014, an increase of
kEUR 3,176, or 84.8%. The increase was mainly related to higher
headcount due to the pursuit of our growth strategy and the integration
of the employees from voxeljet UK (through November 30, 2015) as well as
a subsequent impairment charge related to the repositioning of that
subsidiary. In addition, commissions for sales agents increased, which
were in line with our higher sales.

Administrative expenses increased by kEUR 1,152, to kEUR 5,178 for the
full year ended December 31, 2015 from kEUR 4,026 in the prior year
period. This was related to an increase in headcount (prior to the
repositioning of our subsidiary in the UK) as well as expenses of kEUR
339 related to the repositioning of voxeljet UK during the fourth
quarter of 2015.

R&D expenses increased to kEUR 5,470 for the full year ended December
31, 2015 from kEUR 4,027 in the same period in 2014, an increase of
kEUR 1,443, or 35.8%. This included higher personnel expenses through
November 30, 2015 prior to our repositioning of voxeljet UK.

Other operating expenses for the full year ended December 31, 2015 were
kEUR 888 compared to kEUR 101 in the prior year period, primarily due to
higher losses from foreign currency transactions as well as expenses
allocated to this line item related to the repositioning of voxeljet UK,
including kEUR 342 for the transfer of certain employees and kEUR 129
for disposal of goodwill.

Other operating income was kEUR 2,130 for the full year ended December
31, 2015 compared to kEUR 1,384 in the prior year period. The increase
was mainly due to higher gains from foreign exchange transactions and
the recognition of kEUR 526 of deferred income, which includes kEUR 216
resulting from the early termination of one sale and leaseback
transaction during the first quarter in 2015.

Net loss for the full year ended December 31, 2015 was kEUR 9,594, or
EUR 2.58 per share, as compared to net loss of kEUR 4,332, or EUR 1.22
per share, in the prior year. This is based on a weighted average number
of ordinary shares outstanding of 3.720 million during the full year
ended December 31, 2015 compared to 3.556 million in the prior year.

Based on a conversion rate of five ADSs per ordinary share, net loss was
EUR 0.52 per ADS for the full year ended December 31, 2015 compared to
net loss of EUR 0.24 per ADS in the prior year period.

Business Outlook

Our revenue guidance for the first quarter of 2016 is in the range of
kEUR 5,000 to kEUR 5,500. We expect to release our financial results for
the first quarter of 2016 after the closing of the financial markets on
Thursday, May 12, 2016 and host a conference call and webcast to review
the results for the quarter on Friday, May 13, 2016 at 8:30 a.m. Eastern
Time.

We reaffirm our guidance for the full year ended December 31, 2016.

  • Revenue is expected to be in the range of kEUR 28,000 and kEUR 30,000.
  • Gross margin is expected to be between 40% and 42%.
  • Operating expenses for the full year are expected as follows: SG&A
    expenses in the range of kEUR 10,000 and kEUR 11,000, and R&D expenses
    to be approximately kEUR 4,000 to kEUR 5,000.
  • EBITDA is expected to be neutral-to-positive in 2016.
  • Depreciation and amortization expense is expected to be between kEUR
    3,000 and kEUR 4,000.
  • Capital expenditures are projected to be in the range of kEUR 12,000
    to kEUR13,000, which primarily includes ongoing investments in our
    global subsidiaries, as well as two new buildings at our facility in
    Germany.

Our total backlog of 3D printer orders at December 31, 2015 was kEUR
5,613, which represents nine 3D printers. This compares to backlog of
kEUR 4,178, representing seven 3D printers, at December 31, 2014. As
production and delivery of our printers is generally not characterized
by long lead times, backlog is more dependent on the timing of
customers’ requested deliveries.

At December 31, 2015, we had cash and cash equivalents of kEUR 2,086 and
held kEUR 31,746 of investments in bond funds and a note receivable,
both of which are included in current financial assets on our
consolidated statement of financial position.

Webcast and Conference Call Details

The Company will host a conference call and webcast to review the
results for the fourth quarter and full year ended December 31, 2015 on
Friday, April 1st 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 Fourth Quarter and Full
Year 2015 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
1-877-870-5176 or +1-858-384-5517, Replay Conference ID number 13630885.
The recording will be available for replay through April 8, 2016.

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 (http://www.voxeljet.de/en/)
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.

Exchange rate

This press release contains translations of certain U.S. dollar amounts
into Euros at specified rates solely for the convenience of readers.
Unless otherwise noted, all translations from U.S. dollars to Euros in
this press release were made at a rate of USD 1.0859 to EUR 1.00, the
noon buying rate of the Federal Reserve Bank of New York for the Euro on
December 31, 2015.

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,’’ ‘‘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.S. Securities and
Exchange Commission, as well as the risk that our revenues may fall
short of the guidance we have provided in this press release. Except as
required by law, the Company undertakes no obligation to publicly update
any forward-looking statements for any reason after the date of this
press release whether as a result of new information, future events or
otherwise.

 

voxeljet AG

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 
    Year Ended December 31,
2015     2014  
(€ in thousands)
Current assets 46,550 58,509
Cash and cash equivalents 2,086 8,031
Financial assets 31,746 41,142
Trade receivables 3,348 3,148
Inventories 7,841 5,247
Income tax receivables 54 65
Other assets 1,475 876
 
Non-current assets 23,570 22,586
Financial assets 206 247
Intangible assets 627 1,315
Goodwill 1,273 1,558
Property, plant and equipment 21,383 19,466
Other assets 81
Total assets 70,120 81,095
 
 
Year Ended December 31,
2015   2014  
(€ in thousands)
Current liabilities 6,402 5,567
Deferred income 472 469
Trade payables 1,759 2,326
Financial liabilities 1,150 1,241
Other liabilities and provisions 3,021 1,531
 
Non-current liabilities 2,249 4,228
Deferred income 397 826
Deferred tax liabilities 1 213

Financial liabilities

1,291 2,263
Other liabilities and provisions 560 926
 
Equity 61,469 71,300
Subscribed capital 3,720 3,720
Capital reserves 75,671 75,671
Accumulated deficit (17,684 ) (8,090 )
Accumulated other comprehensive loss (238 ) (1 )
 
Total equity and liabilities 70,120 81,095
 

voxeljet AG

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 
   

Quarter Ended December 31, (unaudited)

    Year Ended December 31,
2015     2014         2015     2014  
(€ in thousands, except share and share data)

Revenues

8,281   6,938     24,064   16,163
Cost of sales (6,615 ) (3,950 ) (17,147 ) (9,838 )
Gross profit 1,666 2,988 6,917 6,325
Selling expenses (1,975 ) (1,118 ) (6,922 ) (3,746 )
Administrative expenses (1,145 ) (1,383 ) (5,178 ) (4,026 )
Research and development expenses (808 ) (1,316 ) (5,470 ) (4,027 )
Other operating expenses (497 ) 3 (888 ) (101 )
Other operating income 436 281 2,130 1,384
Operating loss (2,323 ) (545 ) (9,411 ) (4,191 )
Finance expense (74 ) (235 ) (277 ) (472 )
Finance income (34 ) 50 158 299
Financial result (108 ) (185 ) (119 ) (173 )
Loss before income taxes (2,431 ) (730 ) (9,530 ) (4,364 )

Income tax benefit (expense)

32 (64 ) 32
Loss (2,431 ) (698 ) (9,594 ) (4,332 )
Other comprehensive income (loss) (22 ) 64 (237 ) (1 )
Total comprehensive loss (2,453 ) (634 ) (9,831 ) (4,333 )
Weighted average number of ordinary shares outstanding 3,720,000 3,720,000 3,720,000 3,555,616
Loss per share – basic/ diluted (EUR) (0.65 ) (0.17 ) (2.58 ) (1.22 )
 

voxeljet AG

CONSOLIDATED STATEMENTS OF CASH FLOWS

 
    Year Ended December 31,
2015     2014  
(€ in thousands)
Cash Flow from operating activities
 
Loss for the period (9,594 ) (4,332 )
 
Depreciation and amortization 2,982 2,143
Impairment losses on intangible assets 689
Disposal of Goodwill 129
Impairment losses on inventories 1,118
Noncash sale to customer in exchange for customer loans (931 )
 
Proceeds from customer loans 1,091 191
Changes in deferred income taxes (67 )
Loss on disposal of assets 71 183
Deferred income (781 ) (665 )
 
Change in working capital (7,588 ) (1,609 )
Trade and other receivables and current assets (839 ) (1,745 )
Inventories (7,655 ) (1,305 )
Trade payables (584 ) 823
Other liabilities and provisions 1,479 632
Income tax payable/receivables 11 (14 )
Total (11,950 ) (5,020 )
 
Cash Flow from investing activities
 
Proceeds from disposal of property, plant and equipment and
intangible assets
427
Payments to acquire property, plant and equipment and intangible
assets
(1,402 ) (2,684 )
Net proceeds from disposal of (payments to acquire) financial assets 8,092 (43,395 )
Business combination, net of cash and cash equivalents acquired (965 )
Total 7,117 (47,044 )
 
Cash Flow from financing activities
 
Repayment from bank overdrafts and lines of credit (64 ) (308 )
Proceeds (redemption) from sale and leaseback (816 )
Repayment from finance lease (16 ) (1,419 )
Repayment of long-term debt (203 ) (2,725 )
Reorganization
Proceeds from borrowings 800
Proceeds from issuance of shares 30,233
Total (1,099 ) 26,581
 
Net increase (decrease) in cash and cash equivalents (5,932 ) (25,483 )
 
Cash and cash equivalents at beginning of period 8,031 33,459
Changes to cash due to consolidation items 2
Changes to cash and equivalents due to foreign exchanges rates (13 ) 53
Cash and cash equivalents at end of period 2,086 8,031
 
Supplemental Cash Flow Information
Interest (received) paid net 126 (43 )
Income taxes paid net
 

Contacts

Investors and Media
voxeljet AG
Johannes Pesch
Manager,
Investor Relations and Business Development
Office: +49 821 7483172
Mobile:
+49 176 45398316
[email protected]

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