ExOne (XONE) Tops Q4 EPS by 8c, Revenues Miss

ExOne (NASDAQ: XONE) reported Q4 EPS of $0.13, $0.08 better than the analyst estimate of $0.05. Revenue for the quarter came in at $25.3 million versus the consensus estimate of $27.6 million.

S. Kent Rockwell, ExOne’s Chairman and Chief Executive Officer, stated, “We are pleased to have attained our 2018 goal for net income in the second half of the year, achieving $0.11 of earnings per share in the second half. The results of our 2018 global cost realignment initiative announced in June demonstrate production efficiency and operating leverage opportunity. With our focus on profitability, cash flow, and long-term growth, we are especially satisfied with these results despite some customer delays causing lower than expected revenue. Revenue predictability is dependent upon timing of customer actions which, at times, can be difficult for us to forecast with accuracy. However, our customer pipeline remains robust and we have the production capacity to satisfy customer requirements.”

Reflecting on results for the full year of 2018, Mr. Rockwell added:

• “We reached record revenue of nearly $65 million. That represents about 12% growth over 2017 and a three-year compound annual growth rate of 17%.
• Machine revenue was up 21%. Non-machine revenue marginally improved, by 2%, impacted by our production service center changes.
• We generated nearly $21 million of gross profit, 32.4% of sales. That represents about 45% growth over 2017 and a three-year compound annual growth rate of 36%.
• Focusing on productivity and profitability, we implemented our 2018 global cost realignment initiative, reaching approximately $7 million of net annualized run rate cost reductions.
• We invested in further advancement of the capabilities of our 3D printing technology, expanding our machine and material offerings. In conjunction with the Formnext additive manufacturing trade fair in Frankfurt, Germany in November, we announced our newest fine powder direct 3D printer system, the X1 25PRO™.

We continue to aggressively develop our machine technology and additional materials to satisfy the growing demands of the industrial marketplace for our binder jetting technology applications, while maintaining efficiency with our investment spend.”

2019 Goals – Increase Revenue Growth Rate and Generate Positive Adjusted EBITDA

Mr. Rockwell concluded, “Given the strength of our pipeline and customer interest in our technology, we are targeting revenue growth at increasing rates over each of the next several years. We believe that our new cost structure positions us well for operating leverage that will lead to positive adjusted EBITDA for the full year of 2019 and beyond. As is typical for the first quarter of our year, we expect a slow start to 2019 and we currently estimate about a 35/65 revenue split between the first half and second half of the year.”

For earnings history and earnings-related data on ExOne (XONE) click here.

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