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MTLS Materialise

Filed: 30 Apr 21, 4:12pm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2021

Commission File Number: 001-36515

 

 

Materialise NV

 

 

Technologielaan 15

3001 Leuven

Belgium

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒              Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

This Form 6-K is incorporated by reference into the registrant’s Registration Statement on Form F-3 (File No. 333-213649).

 

 

 


First Quarter 2021 Financial Results

Except as otherwise required by the context, references to “Materialise,” “Company,” “we,” “us” and “our” are to Materialise NV and its subsidiaries.

First Quarter 2021 Results

Total revenue for the first quarter of 2021 was 45,554 kEUR, a decrease of 1.5% compared to 46,245 kEUR for the first quarter of 2020.

Revenue from our Materialise Software segment increased 4.1% to 10,219 kEUR for the first quarter of 2021 from 9,821 kEUR for the same quarter last year.

Revenue from our Materialise Medical segment increased 3.7% to 16,231 kEUR for the first quarter of 2021 compared to 15,645 kEUR for the same period in 2020.

Revenue from our Materialise Manufacturing segment was 19,114 kEUR for the first quarter of 2021, a decrease of 8.2% from 20,815 kEUR for the first quarter of 2020.

Gross profit remained stable at 24,568 kEUR compared to 24,585 kEUR for the same period last year, while the gross profit margin increased to 53.9% of total revenue from 53.2% for the first quarter of 2020.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses decreased, in the aggregate, 3.6% to 25,398 kEUR for the first quarter of 2021 from 26,351 kEUR for the first quarter of 2020.

Net other operating income was 1,120 kEUR compared to 683 kEUR for the first quarter of 2020.

Operating result increased to 290 kEUR from (1,084) kEUR for the first quarter of 2020.

Net financial result was (4,112) kEUR compared to (1,321) kEUR for the first quarter of 2020. Excluding the impairment of our loan position in Ditto for an amount of (3,201) kEUR, net financial result was (911) kEUR.

The first quarter of 2021 contained income tax expenses of 155 kEUR, compared to (457) kEUR in the first quarter of 2020.

As a result of the above, net loss for the first quarter of 2021 was (3,667) kEUR, compared to (2,899) kEUR for the same period in 2020. Total comprehensive income for the first quarter of 2021, which includes exchange differences on translation of foreign operations, was (6,996) kEUR compared to 284 kEUR for the 2020 period.

Adjusted EBITDA increased 48.2% to 5,341 kEUR from 3,603 kEUR. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the first quarter of 2021 increased to 11.7% from 7.8% for the first quarter of 2020.

Segment EBITDA from our Materialise Software segment increased 29.6% to 3,429 kEUR from 2,645 kEUR while the segment EBITDA margin (segment EBITDA divided by segment revenue) increased to 33.6% from 26.9% for the prior-year period.

Segment EBITDA from our Materialise Medical segment increased 85.0% to 4,541 kEUR compared to 2,455 kEUR while the segment EBITDA margin increased to 28.0% from 15.7% for the first quarter of 2020.


Segment EBITDA from our Materialise Manufacturing segment decreased to (144) kEUR from 1,118 kEUR while the segment EBITDA margin was (0.8)% compared to 5.4% % for the first quarter of 2020.

At March 31, 2021, we had cash and cash equivalents of 107,568 kEUR compared to 111,538 kEUR at December 31, 2020. Gross debt amounted to 110,527 kEUR, compared to 115,110 kEUR at December 31, 2020. As a result, our net debt position (gross debt less cash and cash equivalents) was (2,960) kEUR, an improvement of 612 kEUR compared to December 31, 2020.

Cash flow from operating activities for the first quarter of 2021 was 4,231 kEUR compared to 7,273 kEUR for the same period in 2020. Total capital expenditures for the first quarter of 2021 amounted to 2,011 kEUR.

Net shareholders’ equity at March 31, 2021 was 129,961 kEUR compared to 133,104 kEUR at December 31, 2020.

Non-IFRS Measures

Materialise uses EBITDA and Adjusted EBITDA as supplemental financial measures of its financial performance. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBITDA. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the Company’s day-to-day operations. As compared to net profit, these measures are limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company’s business, or the charges associated with impairments. Management evaluates such items through other financial measures such as capital expenditures and cash flow provided by operating activities. The Company believes that these measurements are useful to measure a Company’s ability to grow or as a valuation measurement. The Company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The Company’s presentation of EBITDA and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.

Exchange Rate

This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.1725, the reference rate of the European Central Bank on March 31, 2021.

About Materialise

Materialise incorporates 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines one of the largest groups of software developers in the industry with one of the largest 3D printing facilities in the world.


Consolidated income statements (Unaudited)

 

   For the three month period ended
March 31,
 
in 000€, except for share data  2021  2021  2020(*) 
   U.S.$     

Revenue

   53,412   45,554   46,245 

Cost of sales

   (24,606  (20,986  (21,660

Gross profit

   28,806   24,568   24,585 

Research and development expenses

   (7,663  (6,536  (6,527

Sales and marketing expenses

   (13,261  (11,310  (12,627

General and administrative expenses

   (8,855  (7,552  (7,197

Net other operating income

   1,313   1,120   683 

Operating profit

   340   290   (1,084

Financial expenses

   (5,512  (4,701  (1,820

Financial income

   691   589   500 

Share in loss of joint venture, after tax

   —     —     (39

Profit (loss) before taxes

   (4,481  (3,822  (2,443

Income taxes

   182   155   (457

Net profit (loss) for the year

   (4,299  (3,667  (2,899

Net profit (loss) attributable to:

   —     

The owners of the parent

   (4,300  (3,667  (2,841

Non-controlling interest

   —     —     (58

Earnings per share attributable to the owners of the parent

    

Basic

   (0.08  (0.07  (0.05

Diluted

   (0.08  (0.07  (0.05

 

*

The quarter ended March 31, 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on operating result of (47) kEUR


Consolidated statements of comprehensive income (Unaudited)

 

   For the three
month period
ended March 31,
 
in 000€  2021  2020(*) 

Net profit (loss) for the quarter

   (3,667  (2,899

Other comprehensive income (loss)

   

Recycling

   

Exchange differences on translation of foreign operations

   492   (4,157

Non-recycling

   

Fair value adjustment through OCI—Equity instruments

   —     —   

Other comprehensive income (loss), net of taxes

   492   (4,157

Total comprehensive income (loss) for the quarter, net of taxes

   (3,175  (7,056

Total comprehensive income (loss) attributable to:

   

The owners of the parent

   (3,175  (6,353

Non-controlling interest

   —     (703

 

*

The quarter ended March 31, 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on operating result of (47) kEUR


Consolidated statement of financial position (Unaudited)

 

   As of
March 31,
   As of
December 31,
 
in 000€  2021   2020 

Assets

    

Non-current assets

    

Goodwill

   20,572    20,342 

Intangible assets

   32,457    32,981 

Property, plant & equipment

   86,435    88,267 

Right-of-use assets

   10,436    10,996 

Investments in joint ventures

   —      —   

Deferred tax assets

   264    201 

Investments in convertible loans

   3,955    6,203 

Investments in non-listed equity instruments

   3,842    3,842 

Other non-current assets

   3,969    4,093 

Total non-current assets

   161,930    166,925 

Current assets

    

Inventories and contracts in progress

   10,292    10,043 

Trade receivables

   31,899    30,871 

Other current assets

   8,472    8,290 

Cash and cash equivalents

   107,568    111,538 

Total current assets

   158,231    160,742 

Total assets

   320,162    327,667 


   As of
March 31,
  As of
December 31,
 
in 000€  2021  2020 

Equity and liabilities

   

Equity

   

Share capital

   4,096   4,096 

Share premium

   141,306   141,274 

Retained Earnings

   (11,062  (7,395

Other reserves

   (4,379  (4,871

Equity attributable to the owners of the parent

   129,961   133,104 

Non-controlling interest

   —     —   

Total equity

   129,961   133,104 

Non-current liabilities

   

Loans & borrowings

   84,669   90,502 

Lease liabilities

   6,689   7,086 

Deferred tax liabilities

   6,450   6,805 

Deferred income

   4,948   5,327 

Other non-current liabilities

   604   398 

Total non-current liabilities

   103,360   110,118 

Current liabilities

   

Loans & borrowings

   15,841   13,984 

Lease liabilities

   3,328   3,539 

Trade payables

   19,024   17,698 

Tax payables

   977   974 

Deferred income

   32,692   29,555 

Other current liabilities

   14,979   18,695 

Total current liabilities

   86,841   84,445 

Total equity and liabilities

   320,162   327,667 


Consolidated statement of cash flows (Unaudited)

 

   For the three
month period
ended March 31,
 
in 000€  2021  2020 

Operating activities

   

Net profit (loss) for the quarter

   (3,667  (2,899

Non-cash and operational adjustments

    —   

Depreciation of property, plant & equipment

   3,803   3,646 

Amortization of intangible assets

   1,277   1,115 

Impairment of goodwill and (in)tangible assets

   —     —   

Share-based payment expense

   (415  (75

Loss (gain) on disposal of property, plant & equipment

   (32  108 

Movement in provisions

   —     (3

Movement in reserve for bad debt and slow moving inventory

   (2  241 

Financial income

   (589  (500

Financial expense

       4,701   1,821 

Impact of foreign currencies

   18   2 

Share in loss of joint venture (equity method)

   —     39 

Income taxes and deferred taxes

   (156  457 

Fair value adjustment

   —     —   

Other

   —     —   

Working capital adjustment and income tax paid

   

Decrease (increase) in trade receivables and other receivables

   (931  1,581 

Decrease (increase) in inventories and contracts in progress

   (329  (4

Increase in trade payables and other payables

   400       2,300 

Income tax paid

   —     (589

Interest received

   153   33 

Net cash flow from operating activities

   4,231   7,273 


   For the three
month period
ended March 31,
 
in 000€  2021  2020 

Investing activities

   

Purchase of property, plant & equipment

   (1,242  (2,567

Purchase of intangible assets

   (768  (478

Proceeds from the sale of property, plant, equipment and intangibles (net)

   183   70 

Acquisition of subsidiary (net of cash)

   —     —   

Investments in joint-ventures / shares

   —     —   

Convertible loan granted

   (1,122  (300

Other equity investments in non-listed entities

   —     —   

Interest received

   —     —   

Net cash flow used in investing activities

   (2,949  (3,275

Financing activities

   

Proceeds from loans & borrowings

   —     —   

Repayment of loans & borrowings

   (3,918  (2,585

Repayment of leases

   (1,066  (1,024

Capital increase in parent company

   —     —   

Direct attributable expense capital increase

   —     —   

Interest paid

   (536  (634

Other financial income (expense), net

   136   (138

Net cash flow from financing activities

   (5,384  (4,381

Net increase/(decrease) of cash and cash equivalents

   (4,102  (383

Cash and cash equivalents at beginning of the quarter

   111,538   128,897 

Exchange rate differences on cash and cash equivalents

   132   (1,379

Cash and cash equivalents at end of the quarter

   107,568   127,135 


Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

 

   For the three
months ended
March 31,
 
in 000€  2021  2020(*) 

Net profit (loss)

   (3,667  (2,899

Income taxes

   (155  457 

Financial expenses

   4,701   1,820 

Financial income

   (589  (500

Depreciation and amortization

   5,081   4,760 

Share in loss of joint venture

   —     39 

EBITDA (unaudited)

   5,371   3,677 

Share-based compensation expense (1)

   (415  (75

Acquisition-related expenses business combinations (2)

   385   —   

Adjusted EBITDA (unaudited)

   5,341   3,602 

 

(1)

Share-based compensation expenses represent the cost of equity-settled and cash-settled share-based payments to employees.

(2)

Acquisition-related expenses of business combinations represent expenses incurred in connection with the acquisition of our option to buy Link3D.

*

The quarter ended March 31, 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on operating result of (47) kEUR

Segment P&L (Unaudited)

 

in 000€  Materialise
Software
  Materialise
Medical
  Materialise
Manufacturing
  Total
segments
  Unallocated
(1)(2)
  Consolidated 

For the three month period ended March 31, 2021

       

Revenues

   10,219   16,231   19,114   45,564   (11  45,553 

Segment Adjusted EBITDA

   3,429   4,541   (144  7,826   (2,486  5,341 

Segment Adjusted EBITDA %

   33.6  28.0  -0.8  17.2  —     11.7

For the three month period ended March 31, 2020

       

Revenues

   9,821   15,645   20,815   46,281   (36  46,245 

Segment Adjusted EBITDA

   2,645   2,455   1,118   6,218   (2,615  3,603 

Segment Adjusted EBITDA %

   26.9  15.7  5.4  13.4  —     7.8

 

(1)

Unallocated Revenues consist of occasional one-off sales by our core competencies not allocated to any of our segments.

(2)

Unallocated segment EBITDA consists of corporate research and development, corporate headquarter costs and other operating income (expense), and the added share-based compensation expenses and acquisition related expenses of business combinations that are included in Adjusted EBITDA.

*

The quarter ended March 31, 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on operating result of (47) kEUR


Reconciliation of Net Profit (Loss) to Segment EBITDA (Unaudited)

 

   For the three months
ended March 31,
 
in 000€  2021  2020 

Net profit (loss) for the period

   (3,667  (2,899

Income taxes

   (155  457 

Financial cost

   4,701   1,820 

Financial income

   (589  (500

Share in loss of joint venture

   —     39 

Operating profit

   290   (1,083

Depreciation and amortization

   5,081   4,760 

Corporate research and development

   692   747 

Corporate headquarter costs

   2,648   2,368 

Other operating (income) expense

   (855  (575

Segment EBITDA (unaudited)

   7,856   6,217 

 

*

The quarter ended March 31, 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on operating result of (47) kEUR.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

MATERIALISE NV
By: /s/ Wilfried Vancraen
Name: Wilfried Vancraen
Title: Chief Executive Officer

Date: April 30, 2021