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 July 2023

 

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  x            Form 40-F  ¨

 

 

 

 

 

EXHIBIT INDEX

 

Exhibit   Description
   
99.1   Press Release dated July 26, 2023, Second Quarter 2023 Results

 

 

 

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: July 26, 2023

 

 

 

Exhibit 99.1

 

 

Materialise Reports Second Quarter 2023 Results

 

LEUVEN, Belgium--(BUSINESS WIRE)—July 26, 2023 -- Materialise NV (NASDAQ:MTLS), a leading provider of additive manufacturing and medical software and of sophisticated 3D printing services, today announced its financial results for the second quarter ended June 30, 2023.

 

Highlights – Second Quarter 2023

 

Total revenue increased 11.6% to 64,810 kEUR compared to 58,070 kEUR for the second quarter of 2022.

Total deferred revenue from annual software sales and maintenance fees amounted to 41,740 kEUR compared to 42,780 kEUR at December 31, 2022.

Adjusted EBITDA increased 12.2% to 4,755 kEUR compared to 4,240 kEUR for the corresponding 2022 period.

Excluding an unexpected adverse arbitration award for (5,189) kEUR, the Adjusted EBITDA margin for the quarter would have been 15.3%.

Net profit for the second quarter of 2023 was (494) kEUR, or (0.01) EUR per diluted share, compared to 896 kEUR, or 0.02 EUR per diluted share, for the corresponding 2022 period.

 

Executive Chairman Peter Leys commented, Materialise delivered another strong operational performance in the second quarter of 2023. Our consolidated revenues of 64,810 kEUR rose almost 12% compared to the same period last year, with increased revenues in all three of our segments. Materialise Medical had an especially robust performance with revenue increasing 20%. Our Q2 2023 consolidated Adjusted EBITDA of 4,755 kEUR represents an increase of more than 12% compared to last year's corresponding period despite the (5,189) kEUR negative impact resulting from an unexpected adverse resolution of an arbitration proceeding in May 2023. Given the strength of our fundamental operations, we are able to maintain the guidance previously provided for both our 2023 revenue and our Adjusted EBITDA.”

 

Second Quarter 2023 Results

 

Total revenue for the second quarter of 2023 increased 11.6% to 64,810 kEUR from 58,070 kEUR for the second quarter of 2022. Adjusted EBITDA amounted to 4,755 kEUR for the second quarter of 2023 compared to 4,240 kEUR for the corresponding 2022 period. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the second quarter of 2023 was 7.3%, equal to the second quarter of 2022. Excluding the (5,189) kEUR negative impact resulting from the unexpected adverse resolution of an arbitration proceeding, our Adjusted EBITDA margin for the quarter would have been 15.3%.

 

Revenue from our Materialise Software segment increased 3.6% to 11,030 kEUR for the second quarter of 2023 from 10,642 kEUR for the same quarter last year. Segment EBITDA increased to 1,973 kEUR from 821 kEUR while the segment EBITDA margin was 17.9% compared to 7.7% for the corresponding prior-year period.

 

Revenue from our Materialise Medical segment increased 19.6% to 24,945 kEUR for the second quarter of 2023 compared to 20,855 kEUR for the same period in 2022. Segment EBITDA amounted to 2,683 kEUR for the second quarter of 2023 compared to 4,474 kEUR while the segment EBITDA margin was 10.8% compared to 21.5% for the second quarter of 2022. The Medical segment EBITDA for the second quarter of 2023 includes the (5,189) kEUR negative effect from an arbitration award granted against us in our previously disclosed indemnification dispute with Zimmer Biomet related to certain joint replacement devices. Excluding the (5,189) kEUR negative impact, the Adjusted EBITDA margin of our Medical segment for the quarter would have been 31.6%.

 

Revenue from our Materialise Manufacturing segment increased 8.5% to 28,835 kEUR for the second quarter of 2023 from 26,574 kEUR for the second quarter of 2022. Segment EBITDA amounted to 2,708 kEUR compared to 1,581 kEUR for the same period last year, while the segment EBITDA margin was 9.4% compared to 5.9% for the second quarter of 2022.

 

Gross profit was 37,047 kEUR for the second quarter of 2023 compared to 32,030 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 57.2% compared to 55.2% for the second quarter of 2022.

 

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses decreased in the aggregate by 1.3% to 33,176 kEUR for the second quarter of 2023 from 33,613 kEUR for the second quarter of 2022, with disciplined cost containment in S&M and G&A fully offsetting the increased costs of our continued R&D efforts.

 

Net other operating income, which includes the negative impact from the adverse arbitration award, was (4,468) kEUR compared to 498 kEUR for the second quarter of 2022.

 

Operating result amounted to (597) kEUR compared to (1,084) kEUR for the second quarter of 2022.

 

Net financial result was 635 kEUR compared to 2,580 kEUR for the second quarter of 2022.

 

 

 

The second quarter of 2023 contained income tax expenses of (532) kEUR, compared to (600) kEUR in the second quarter of 2022.

 

As a result of the above, net result for the second quarter of 2023 was (494) kEUR, compared to 896 kEUR for the same period in 2022. Total comprehensive income for the second quarter of 2023, which includes exchange differences on translation of foreign operations, was 140 kEUR compared to 771 kEUR for the corresponding 2022 period.

 

At June 30, 2023, after payment of the 5,189 kEUR arbitration award, we had cash and cash equivalents of 136,285 kEUR compared to 140,867 kEUR at December 31, 2022. Gross debt amounted to 72,412 kEUR, compared to 80,980 kEUR at December 31, 2022. As a result, our net cash position (cash and cash equivalents less gross debt) was 63,873 kEUR, an increase of 3,986 kEUR compared to December 31, 2022

 

Cash flow from operating activities for the second quarter of the year 2023 was 775 kEUR compared to 8,636 kEUR for the same period in 2022. Total capital expenditures for the second quarter of 2023 amounted to 2,119 kEUR.

 

Net shareholders’ equity at June 30, 2023 was 233,393 kEUR compared to 228,928 kEUR at December 31, 2022.

 

2023 Guidance

 

Mr. Leys concluded, “Seven months into 2023, Materialise continues to expect to report consolidated revenue towards the high end of the 255,000 kEUR to 260,000 kEUR range we previously provided. We are also maintaining, despite the unexpected arbitration award granted against us in May 2023 for a total amount of (5,189) kEUR, our Adjusted EBITDA guidance between 28,000 kEUR and 33,000 kEUR for fiscal year 2023”.

 

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 1.0866, the reference rate of the European Central Bank on June 30, 2023.

 

Conference Call and Webcast

 

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the second quarter of 2023 on Wednesday, July 26, 2023, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Wilfried Vancraen, Founder and Chief Executive Officer; Peter Leys, Executive Chairman; and Koen Berges, Chief Financial Officer. A question-and-answer session will follow management’s remarks.

 

To access the conference call by phone, please click the link below at least 15 minutes prior to the scheduled start time and you will be provided with dial-in details. Participants can choose to dial in or to receive a call to connect to Materialise’s conference call.

 

ohttps://register.vevent.com/register/BI53606bb1a4de423d813eba83e6ecd558

 

The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed on the company’s website at http://investors.materialise.com. A webcast of the conference call will be archived on the company's website for one year.

 

 

 

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. For additional information, please visit: www.materialise.com.

 

Cautionary Statement on Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, our estimates for the current fiscal year’s revenue and Adjusted EBITDA, our results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies (including how our business, results of operations and financial condition could be impacted by the ongoing military conflict between Ukraine and Russia and economic sanctions thereto as well as by inflation and increased labor, energy and materials costs), and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the company believes there is a reasonable basis for them. However, the company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the company's actual results to differ materially from our expectations, including risk factors described in the company's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. There are a number of risks and uncertainties that could cause the company's actual results to differ materially from the forward-looking statements contained in this press release.

 

The company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

 

 

 

Consolidated income statements (Unaudited)

 

   for the three months ended
June 30,
   for the six months ended
June 30,
 
In '000  2023   2023   2022   2023   2022 
   U.S.$             
Revenue   70,423    64,810    58,070    130,702    111,032 
Cost of Sales   (30,168)   (27,764)   (26,040)   (56,814)   (50,118)
Gross Profit   40,255    37,047    32,030    73,888    60,914 
Gross profit as % of revenue   57.2%   57.2%   55.2%   56.5%   54.9%
                          
Research and development expenses   (10,311)   (9,489)   (8,955)   (18,506)   (16,770)
Sales and marketing expenses   (15,385)   (14,159)   (14,954)   (28,459)   (28,469)
General and administrative expenses   (10,353)   (9,528)   (9,704)   (18,573)   (18,148)
Net other operating income (expenses)   (4,855)   (4,468)   498    (3,948)   1,436 
Operating (loss) profit   (649)   (597)   (1,084)   4,402    (1,036)
                          
Financial expenses   (728)   (670)   (1,320)   (2,045)   (2,561)
Financial income   1,419    1,305    3,901    2,114    5,517 
Share in loss of joint venture   -    -    -    -    - 
(Loss) profit before taxes   42    38    1,496    4,471    1,921 
                          
Income Taxes   (578)   (532)   (600)   (1,249)   (898)
Net (loss) profit for the period   (536)   (494)   896    3,221    1,023 
Net (loss) profit attributable to:   -                     
The owners of the parent   (530)   (488)   903    3,234    1,036 
Non-controlling interest   (7)   (6)   (7)   (13)   (13)
                          
Earning per share attributable to owners of the parent                         
Basic   (0.01)   (0.01)   0.02    0.05    0.02 
Diluted   (0.01)   (0.01)   0.02    0.05    0.02 
                          
Weighted average basic shares outstanding   59,067    59,067    59,064    59,067    59,064 
Weighted average diluted shares outstanding   59,067    59,067    59,095    59,070    59,100 

 

 

 

Consolidated statements of comprehensive income (Unaudited)

 

   for the three months ended
June 30,
   for the six months ended
June 30,
 
In 000€  2023   2023   2022   2023   2022 
   U.S.$             
Net profit (loss) for the period   (536)   (494)   896    3,221    1,023 
Other comprehensive income                         
Recycling                         
Exchange difference on translation of foreign operations   689    634    (125)   1,242    1,291 
Non-recycling                         
Fair value adjustments through OCI - Equity instruments   -    -    -    -    - 
Other comprehensive income (loss), net of taxes   689    634    (125)   1,242    1,291 
Total comprehensive income (loss) for the year, net of taxes   152    140    771    4,463    2,314 
Total comprehensive income (loss) attributable to:                         
The owners of the parent   157    144    778    4,473    2,327 
Non-controlling interests   (4)   (4)   (7)   (10)   (13)

 

 

 

Consolidated statement of financial position (Unaudited)

 

   As of
June 30,
   As of
December 31,
 
In 000€  2023   2022 
Assets          
Non-current assets          
Goodwill   44,345    44,155 
Intangible assets   35,780    37,875 
Property, plant & equipment   94,599    94,276 
Right-of-Use assets   8,277    8,420 
Investments in joint ventures   -    - 
Deferred tax assets   1,251    1,186 
Investments in convertible loans   3,618    3,494 
Investments in non-listed equity instruments   307    307 
Other non-current assets   4,997    5,136 
Total non-current assets   193,173    194,847 
Current assets          
Inventories   16,007    16,081 
Trade receivables   45,859    51,043 
Other current assets   8,935    8,424 
Cash and cash equivalents   136,285    140,867 
Total current assets   207,085    216,414 
Total assets   400,259    411,262 

 

 

 

   As of
June 30,
   As of
December 31,
 
In 000€  2023   2022 
Equity and liabilities          
Equity          
Share capital   4,487    4,487 
Share premium   233,895    233,895 
Retained earnings and other reserves   (4,951)   (9,427)
Equity attributable to the owners of the parent   233,431    228,955 
Non-controlling interest   (38)   (28)
Total equity   233,393    228,928 
Non-current liabilities          
Loans & borrowings   49,823    55,873 
Lease liabilities   5,123    5,147 
Deferred tax liabilities   3,947    4,312 
Deferred income   8,633    9,277 
Other non-current liabilities   1,006    1,611 
Total non-current liabilities   68,532    76,220 
Current liabilities          
Loans & borrowings   14,631    17,058 
Lease liabilities   2,835    2,902 
Trade payables   22,790    23,230 
Tax payables   2,129    1,246 
Deferred income   40,579    41,721 
Other current liabilities   15,370    19,957 
Total current liabilities   98,334    106,114 
Total equity and liabilities   400,259    411,262 

 

 

 

Consolidated statement of cash flows (Unaudited)

 

   for the six months ended
June 30,
 
In 000€  2023   2022 
Operating activities          
Net (loss) profit for the period   3,221    1,023 
Non-cash and operational adjustments          
Depreciation of property plant & equipment   7,364    7,630 
Amortization of intangible assets   3,334    3,186 
Impairment of goodwill and intangible assets   -    - 
Share-based payment expense   -    (97)
Loss (gain) on disposal of intangible assets and property, plant & equipment   (106)   31 
Movement in provisions   (591)   5 
Movement reserve for bad debt and slow moving inventory   272    136 
Financial income   (2,095)   (5,509)
Financial expense   2,055    2,564 
Impact of foreign currencies   (84)   (61)
(Deferred) income taxes   1,254    885 
Working capital adjustments   (3,336)   10,154 
Decrease (increase) in trade receivables and other receivables   4,269    1,450 
Decrease (increase) in inventories and contracts in progress   81    (2,839)
Increase (decrease) in deferred revenue   (1,772)   3,658 
Increase (decrease) in trade payables and other payables   (5,914)   7,884 
Income tax paid & Interest received   531    (201)
Net cash flow from operating activities   11,819    19,747 

 

 

 

   for the six months ended
June 30,
 
In 000€  2023   2022 
Investing activities          
Purchase of property, plant & equipment   (4,333)   (7,494)
Purchase of intangible assets   (1,056)   (2,553)
Proceeds from the sale of property, plant & equipment & intangible assets (net)   218    184 
Acquisition of subsidiary (net of cash)   -    (25,610)
Net cash flow used in investing activities   (5,172)   (35,473)
Financing activities          
Repayment of loans & borrowings   (8,617)   (9,018)
Repayment of leases   (1,744)   (1,668)
Capital increase   -    - 
Interest paid   (891)   (1,155)
Other financial income (expense)   (33)   604 
Net cash flow from (used in) financing activities   (11,285)   (11,236)
Net increase/(decrease) of cash & cash equivalents   (4,638)   (26,964)
Cash & Cash equivalents at the beginning of the year   140,867    196,028 
Exchange rate differences on cash & cash equivalents   57    (930)
Cash & cash equivalents at end of the period   136,285    168,133 

 

 

 

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

 

   for the three months ended
June 30,
   for the six months ended
June 30,
 
In 000€  2023   2022   2023   2022 
Net profit (loss) for the period   (494)   896    3,221    1,023 
Income taxes   532    600    1,249    898 
Financial expenses   670    1,320    2,045    2,561 
Financial income   (1,305)   (3,901)   (2,114)   (5,517)
Depreciation and amortization   5,353    5,374    10,664    10,816 
EBITDA   4,755    4,289    15,066    9,780 
Share-based compensation expense (1)   -    (49)   -    (97)
Adjusted EBITDA   4,755    4,240    15,066    9,683 

 

(1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees.                                

 

 

 

Segment P&L (Unaudited)

 

In 000€  Materialise
Software
  Materialise
Medical
  Materialise
Manufacturing
  Total
segments
  Unallocated
(1)
   Consolidated
For the three months ended June 30, 2023                         
Revenues   11,030   24,945   28,835   64,810   0    64,810
Segment (adj) EBITDA   1,973   2,683   2,708   7,364   (2,608)   4,755
Segment (adj) EBITDA %   17.9%   10.8%   9.4%   11.4%        7.3%
For the three months ended June 30, 2022                         
Revenues   10,642   20,855   26,574   58,070   0    58,070
Segment (adj) EBITDA   821   4,474   1,581   6,876   (2,636)   4,240
Segment (adj) EBITDA %   7.7%   21.5%   5.9%   11.8%        7.3%

 

In 000€  Materialise
Software
  Materialise
Medical
  Materialise
Manufacturing
  Total
segments
  Unallocated
(1)
  Consolidated
For the six months ended June 30, 2023                        
Revenues   22,381   49,265   59,056   130,702   0   130,702
Segment (adj) EBITDA   4,409   10,035   5,906   20,350   (5,285)   15,066
Segment (adj) EBITDA %   19.7%   20.4%   10.0%   15.6%       11.5%
For the six months ended June 30, 2022                        
Revenues   21,125   39,201   50,705   111,032   0   111,032
Segment (adj) EBITDA   2,753   7,701   4,192   14,647   (4,963)   9,683
Segment (adj) EBITDA %   13.0%   19.6%   8.3%   13.2%       8.7%

 

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

 

 

 

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

 

   for the three months ended
June 30,
   for the six months ended
June 30,
 
In 000€  2023   2022   2023   2022 
Net profit (loss) for the period   (494)   896    3,221    1,023 
Income taxes   532    600    1,249    898 
Financial cost   670    1,320    2,045    2,561 
Financial income   (1,305)   (3,901)   (2,114)   (5,517)
Operating (loss) profit   (597)   (1,084)   4,402    (1,036)
Depreciation and amortization   5,353    5,374    10,664    10,816 
Corporate research and development   737    816    1,459    1,465 
Corporate headquarter costs   2,576    2,104    5,238    4,612 
Other operating income (expense)   (705)   (640)   (1,412)   (1,211)
Segment adjusted EBITDA   7,364    6,568    20,350    14,647