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| 8-K - FORM 8-K - Proto Labs Inc | prlb20140207_8k.htm |
Exhibit 99.1
Proto Labs Reports Record Revenue and Net Income for the Fourth Quarter 2013
Quarterly Revenue Increases 31% Year over Year to $44.0 Million
Quarterly Net Income Increases 29% Year over Year to $9.5 Million
MAPLE PLAIN, Minn.—February 11, 2014-- Proto Labs, Inc. (NYSE: PRLB), a leading online and technology-enabled quick-turn manufacturer, today announced record financial results for the fourth quarter ended December 31, 2013.
Highlights include:
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Revenue for the fourth quarter of 2013 increased to a record $44.0 million, 31 percent above revenue of $33.6 million in the fourth quarter of 2012. |
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The record quarterly revenue was achieved through a 21 percent increase in the number of product developers served combined with an increase of 9 percent in spending per product developer. |
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Net income for the fourth quarter of 2013 increased to a record $9.5 million, or $0.36 per diluted share. Non-GAAP net income, excluding the after tax expense of stock compensation, was $10.2 million, or $0.39 per diluted share. See “Non-GAAP Financial Measure” below. |
“I am very proud of our many accomplishments in the fourth quarter of 2013, my last as CEO,” said Brad Cleveland, departing President and Chief Executive Officer of Proto Labs. “We were very successful during 2013 on all fronts, including gains with product developers, progress with our Protoworks initiatives, enhancements in our software, exceptional new employees, and of course, successive quarters of record financial results. Our organization is clearly in an excellent condition to transition the CEO position to Vicki Holt.”
Additional highlights include:
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Gross margin was 62.7 percent of revenue in the fourth quarter of 2013 compared with 62.5 percent during the same quarter in 2012. |
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During the fourth quarter of 2013, spending on research and development, including the Protoworks initiatives, totaled $3.5 million, or 7.9 percent of revenue. This compares to $2.5 million, or 7.5 percent of revenue during the fourth quarter of 2012. |
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Operating margin was 31.5 percent of revenue during the fourth quarter of 2013 compared to 30.5 percent in the fourth quarter of 2012. |
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As measured on a year to date basis, cash generated from operations totaled $48.4 million and expenditures on capital equipment were $18.8 million. Cash and cash equivalents and investments totaled $143.4 million as of December 31, 2013. |
“As part of the Proto Labs team for a few days now, I am enjoying getting to know the company and its employees,” said Victoria Holt, current President and Chief Executive Officer. “I am excited by this opportunity at Proto Labs and grateful to the Board of Directors for their confidence in my ability to lead the company to the next level of growth. We have exciting new services rolling out in Protoworks and during the next few months I will be spending time with our sales and marketing teams to gain a clear understanding of our customer base worldwide. I look forward to communicating with our investors the strengths of our business and our plans to drive continued growth and profitability.”
Non-GAAP Financial Measure
The company has included non-GAAP net income, adjusted for stock-based compensation expense in this press release to provide investors with additional information regarding the company’s financial results. The company has provided below a reconciliation of non-GAAP net income, adjusted for stock-based compensation expense, to net income, the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP net income, adjusted for stock-based compensation expense, is used by the company’s management and board of directors to understand and evaluate operating performance and trends and provides a useful measure for period-to-period comparisons of the company’s business. Accordingly, the company believes that non-GAAP net income, adjusted for stock-based compensation expense, provides useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors.
Conference Call
The company has scheduled a conference call to discuss its fourth quarter financial results today, February 11, 2014 at 8:30 a.m. ET. To access the call in the U.S. please dial 877-299-4454. Outside the U.S. please dial 617-597-5447. Use participant code 14866316#. A simultaneous webcast of the call will also be available on the investor relations section of the company’s website at www.protolabs.com/investors. An audio replay will be available for 14 days following the call on the investor relations website of Proto Lab’s website.
About Proto Labs, Inc.
Proto Labs is a leading online and technology-enabled quick-turn manufacturer of custom parts for prototyping and short-run production. Proto Labs provides “Real Parts, Really Fast” to product developers worldwide. Proto Labs utilizes computer numerical control (CNC) machining and injection molding to manufacture custom parts for our customers. For more information, visit protolabs.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Proto Labs to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are described in the “Risk Factors” section within reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Proto Labs’ future results. The forward-looking statements included in this press release are made only as of the date hereof. Proto Labs cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Proto Labs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.
Contacts:
Investor Relations:
Jack Judd, 763-479-7408
jack.judd@protolabs.com
Media Relations:
Bill Dietrick, 763-479-7664
bill.dietrick@protolabs.com
Proto Labs, Inc. Condensed Consolidated Balance Sheets (In thousands)
|
December 31, |
December 31, |
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2013 |
2012 |
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(Unaudited) |
||||||||||
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Assets |
||||||||||
|
Current assets |
||||||||||
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Cash and cash equivalents |
$ | 43,039 | $ | 36,759 | ||||||
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Short-term marketable securities |
36,339 | 25,137 | ||||||||
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Accounts receivable, net |
18,320 | 15,791 | ||||||||
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Inventory |
5,166 | 4,619 | ||||||||
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Other current assets |
6,931 | 7,850 | ||||||||
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Total current assets |
109,795 | 90,156 | ||||||||
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Property and equipment, net |
56,101 | 45,316 | ||||||||
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Long-term marketable securities |
64,023 | 36,965 | ||||||||
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Other long-term assets |
256 | 285 | ||||||||
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Total assets |
$ | 230,175 | $ | 172,722 | ||||||
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Liabilities and shareholders' equity |
||||||||||
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Current liabilities |
||||||||||
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Accounts payable |
$ | 6,455 | $ | 4,758 | ||||||
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Accrued compensation |
6,196 | 5,995 | ||||||||
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Accrued liabilities and other |
808 | 513 | ||||||||
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Current portion of long-term debt obligations |
204 | 273 | ||||||||
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Total current liabilities |
13,663 | 11,539 | ||||||||
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Long-term deferred tax liabilities |
3,682 | 3,346 | ||||||||
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Long-term debt obligations |
159 | 356 | ||||||||
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Other long-term liabilities |
1,028 | 782 | ||||||||
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Shareholders' equity |
211,643 | 156,699 | ||||||||
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Total liabilities and shareholders' equity |
$ | 230,175 | $ | 172,722 | ||||||
Proto Labs, Inc. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2013 2012 2013 2012 Revenues Protomold Firstcut Total revenues Cost of revenues Gross profit Operating expenses Marketing and sales Research and development General and administrative Total operating expenses Income from operations Other income, net Income before income taxes Provision for income taxes Net income Net income per share: Basic Diluted Shares used to compute net income per share: Basic Diluted
$
30,731
$
23,674
$
115,069
$
90,371
13,311
9,942
48,043
35,620
44,042
33,616
163,112
125,991
16,427
12,611
61,410
49,853
27,615
21,005
101,702
76,138
6,164
4,658
22,386
18,098
3,458
2,515
11,863
9,137
4,119
3,564
16,154
13,957
13,741
10,737
50,403
41,192
13,874
10,268
51,299
34,946
129
114
279
23
14,003
10,382
51,578
34,969
4,496
2,987
16,301
10,944
$
9,507
$
7,395
$
35,277
$
24,025
$
0.37
$
0.30
$
1.40
$
1.03
$
0.36
$
0.29
$
1.36
$
0.98
25,506,107
24,557,878
25,198,556
23,373,593
26,115,866
25,359,071
25,859,741
24,443,665
Proto Labs, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Year Ended December 31, 2013 2012 Operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Stock-based compensation expense Deferred taxes Excess tax benefit from stock-based compensation Amortization of held-to-maturity securities Loss on disposal of property and equipment Changes in operating assets and liabilities Net cash provided by operating activities Investing activities Purchases of property and equipment Purchases of marketable securities Proceeds from maturities of marketable securities Net cash used in investing activities Financing activities Proceeds from initial public offering, net of offering costs Proceeds from follow-on offering, net of offering costs Payments on debt Proceeds from exercises of stock options and other Excess tax benefit from stock-based compensation Net cash provided by financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period
Proto Labs, Inc. Reconciliation of GAAP to Non-GAAP Financial Measure (In thousands, except share and per share amounts) (Unaudited) Three Months Ended Year Ended December 31, 2013 December 31, 2013 Non-GAAP net income, adjusted for stock-based compensation expense: GAAP net income Add back: Stock-based compensation expense Cost of revenue Marketing and sales Research and development General and administrative Total stock-based compensation expense Less: Tax benefit on stock-based compensation Non-GAAP net income Non-GAAP net income per share: Basic Diluted Shares used to compute non-GAAP net income per share: Basic Diluted
Proto Labs, Inc. Revenue by Geography - Based on Shipping Location (In thousands) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2013 2012 2013 2012 Revenues Domestic United States International Europe Japan United States Total international Total revenue
$
35,277
$
24,025
7,569
6,080
3,461
3,039
467
(583
)
(9,873
)
(6,218
)
1,468
369
110
154
9,962
(1,191
)
48,441
25,675
(18,753
)
(17,397
)
(106,298
)
(84,588
)
66,570
22,368
(58,481
)
(79,617
)
-
71,530
-
2,451
(258
)
(388
)
6,496
2,975
9,873
6,218
16,111
82,786
209
(220
)
6,280
28,624
36,759
8,135
$
43,039
$
36,759
$
9,507
$
35,277
83
316
155
610
199
754
429
1,781
866
3,461
(223
)
(847
)
$
10,150
$
37,891
$
0.40
$
1.50
$
0.39
$
1.47
25,506,107
25,198,556
26,115,866
25,859,741
$
31,054
$
24,979
$
119,870
$
94,866
9,653
6,212
31,513
22,517
1,604
1,396
5,857
4,814
1,731
1,029
5,872
3,794
12,988
8,637
43,242
31,125
$
44,042
$
33,616
$
163,112
$
125,991
Proto Labs, Inc. Customer Information (In thousands, except customer amounts) (Unaudited) Year Ended December 31, 2013 2012 Number of Customers Revenue ($) Number of Customers Revenue ($) New customers Existing customers Total
3,027
$
22,532
2,991
$
20,766
5,734
140,580
4,763
105,225
8,761
$
163,112
7,754
$
125,991
Proto Labs, Inc. Product Developer Information (Unaudited) Three Months Ended December 31, Year Ended December 31, 2013 2012 2013 2012 Unique product developers served
7,290
6,042
16,128
13,454