Form 6-K

 

 

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 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).

 

 

 


Second 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.

Second Quarter 2021 Results

Total revenue for the second quarter of 2021 increased 33.0% to 50,713 kEUR from 38,117 kEUR for the second quarter of 2020.

Revenue from our Materialise Software segment increased 5.2% to 10,032 kEUR for the second quarter of 2021 from 9,540 kEUR for the same quarter last year.

Revenue from our Materialise Medical segment increased 49.5% to 17,544 kEUR for the second quarter of 2021 compared to 11,735 kEUR for the same period in 2020.

Revenue from our Materialise Manufacturing segment increased 38.7% to 23,268 kEUR from 16,777 kEUR for the second quarter of 2020.

Gross profit was 28,441 kEUR, an increase of 42.6% compared to 19,949 kEUR for the same period last year, while the gross profit margin increased considerably to 56.1% of total revenue compared to 52.3% for the second quarter of 2020.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 18.3% to 26,864 kEUR for the second quarter of 2021 from 22,705 kEUR for the second quarter of 2020.

Net other operating income was 843 kEUR compared to 892 kEUR for the second quarter of 2020. Operating result increased to 2,421 kEUR from (1,865) kEUR for the second quarter of 2020. Net financial result was 1,153 kEUR compared to (295) kEUR for the second quarter of 2020. The second quarter of 2021 contained income tax expenses of (131) kEUR, compared to 191 kEUR in the second quarter of 2020.

As a result of the above, our net result for the second quarter of 2021 increased 5,412 kEUR to a net profit of 3,443 kEUR, compared to a net loss of (1,969) kEUR for the same period in 2020. Total comprehensive income for the second quarter of 2021, which includes exchange differences on translation of foreign operations, was 4,420 kEUR compared to (3,014) kEUR for the 2020 period.

Adjusted EBITDA more than doubled, increasing from 3,382 kEUR in the previous period to 6,925 kEUR. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the second quarter of 2021 increased to 13.7% from 8.9% for the second quarter of 2020.

Segment EBITDA from our Materialise Software segment was 3,129 kEUR compared to 3,756 kEUR while the segment EBITDA margin (segment EBITDA divided by segment revenue) was 31.2% compared to 39.4% in the prior-year period.


Segment EBITDA from our Materialise Medical segment increased to 4,519 kEUR compared to 1,139 kEUR while the segment EBITDA margin increased to 25.8% from 9.7% for the second quarter of 2020.

Segment EBITDA from our Materialise Manufacturing segment increased to 1,850 kEUR from 650 kEUR while the segment EBITDA margin increased to 7.9% from 3.9% for the second quarter of 2020.

At June 30, 2021, we had cash and cash equivalents of 182,816 kEUR compared to 111,538 kEUR at December 31, 2020. This includes the net proceeds from the public offering of 4,000,000 new shares at 24 USD per share that we completed in the quarter (but excludes the proceeds from the issuance of an additional 600,000 new shares at 24 USD per share in connection with the underwriters’ exercise of their option to purchase such shares in July 2021). Gross debt amounted to 106,849 kEUR, compared to 115,110 kEUR at December 31, 2020. As a result, our net cash position (cash and cash equivalents less gross debt) was 75,968 kEUR at June 30, 2021, an improvement of 79,540 kEUR compared to December 31, 2020.

Cash flow from operating activities for the second quarter of 2021 was 8,871 kEUR compared to 7,053 kEUR for the same period in 2020. Total capital expenditures for the second quarter of 2021 amounted to 2,003 kEUR.

Net shareholders’ equity at June 30, 2021 was 208,755 kEUR compared to 133,104 kEUR at December 31, 2020. In June of 2021, we issued 4,000,000 new shares in connection with the public offering of shares described above, bringing our total amount of shares on a fully diluted basis at June 30, 2021 to 58.4 million (not including the 600,000 additional new shares issued in July 2021 following the exercise of the underwriters’ option to purchase additional shares).

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 1.1884, the reference rate of the European Central Bank on June 30, 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 months ended
June 30,
    for the six months ended
June 30,
 
In 000€    2021     2021     2020 (*)     2021     2020 (*)  
     U.S.$                  

Revenue

     60,267       50,713       38,117       96,266       84,362  

Cost of Sales

     (26,468     (22,272     (18,168     (43,258     (39,827

Gross Profit

     33,799       28,441       19,949       53,009       44,535  

Gross profit as % of revenue

     56.1     56.1     52.3     55.1     52.8

Research and development expenses

     (8,133     (6,844     (6,045     (13,380     (12,572

Sales and marketing expenses

     (14,269     (12,007     (10,161     (23,317     (22,789

General and administrative expenses

     (9,521     (8,012     (6,499     (15,565     (13,696

Net other operating income (expenses)

     1,002       843       892       1,963       1,575  

Operating (loss) profit

     2,878       2,421       (1,865     2,710       (2,948

Financial expenses

     (969     (815     (640     (5,515     (2,461

Financial income

     2,339       1,968       345       2,556       845  

Share in loss of joint venture

     —         —         —         —         (39

(Loss) profit before taxes

     4,248       3,574       (2,160     (249     (4,603

Income Taxes

     (156     (131     191       25       (267

Net (loss) profit for the period

     4,092       3,443       (1,969     (224     (4,870

Net (loss) profit attributable to:

     —            

The owners of the parent

     4,092       3,443       (1,902     (224     (4,743

Non-controlling interest

     —         —         (67     —         (127

Earning per share attributable to owners of the parent

          

Basic

     0.07       0.06       (0.04     (0.00     (0.09

Diluted

     0.07       0.06       (0.04     (0.00     (0.09

Weighted average basic shares outstanding

     54,873       54,873       53,194       54,521       53,194  

Weighted average diluted shares outstanding

     55,115       55,115       53,194       54,521       53,194  

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on the year to date operating result of the (83) kEUR    


Consolidated statements of comprehensive income (Unaudited)

 

     for the three months ended
June 30,
    for the six months ended
June 30,
 
In 000€    2021      2021      2020 (*)     2021     2020 (*)  
     U.S.$                    

Net profit (loss) for the period

     4,092        3,443        (1,969     (224     (4,870

Other comprehensive income

            

Recycling

            

Exchange difference on translation of foreign operations

     1,104        929        (1,045     1,975       (6,787

Non-recycling

            

Fair value adjustments through OCI - Equity instruments

     57        48        —         48       —    

Other comprehensive income (loss), net of taxes

     1,161        977        (1,045     2,023       (6,787

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

     5,253        4,420        (3,014     1,799       (11,657

Total comprehensive income (loss) attributable to:

            

The owners of the parent

     5,253        4,420        (2,764     1,799       (10,531

Non-controlling interests

           (250       (1,126

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on the year to date operating result of the (83) kEUR    


Consolidated statement of financial position (Unaudited)

 

     As of
June 30,
     As of
December 31,
 
In 000€    2021      2020  

Assets

     

Non-current assets

     

Goodwill

     20,561        20,342  

Intangible assets

     32,233        32,981  

Property, plant & equipment

     85,468        88,267  

Right-of-Use assets

     9,678        10,996  

Investments in joint ventures

     —          —    

Deferred tax assets

     273        201  

Other non-current assets

     13,088        14,139  

Total non-current assets

     161,301        166,926  

Current assets

     

Inventories

     11,219        10,043  

Trade receivables

     33,674        30,871  

Other current assets

     9,080        8,290  

Cash and cash equivalents

     182,816        111,538  

Total non-current assets

     236,789        160,741  

Total assets

     398,090        327,667  


     As of
June 30,
    As of
December 31,
 
In 000€    2021     2020  

Equity and liabilities

    

Equity

    

Share capital

     4,401       4,096  

Share premium

     215,374       141,274  

Consolidated reserves

     (5,247     (4,469

Other comprehensive income

     (5,773     (7,797

Equity attibutable to the owners of the parent

     208,755       133,104  

Non-controlling interest

     —         —    

Total equity

     208,755       133,104  

Non-current liabilities

    

Loans & borrowings

     81,810       90,502  

Lease liabilities

     6,360       7,086  

Deferred tax liabilities

     6,347       6,805  

Deferred income

     4,820       5,327  

Other non-current liabilities

     678       398  

Total non-current liabilities

     100,015       110,118  

Current liabilities

    

Loans & borrowings

     15,661       13,984  

Lease liabilities

     3,018       3,538  

Trade payables

     21,649       17,698  

Tax payables

     1,225       974  

Deferred income

     32,394       29,554  

Other current liabilities

     15,373       18,697  

Total current liabilities

     89,320       84,445  

Total equity and liabilities

     398,090       327,667  


Consolidated statement of cash flows (Unaudited)

 

     for the six months ended
June 30,
 
In 000€    2021     2020 (*)  

Operating activities

    

Net (loss) profit for the period

     (224     (4,869

Non-cash and operational adjustments

    

Depreciation of property plant & equipment

     7,591       7,493  

Amortization of intangible assets

     2,335       2,284  

Share-based payment expense

     (774     —    

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

     48       46  

Movement in provisions

     5       4  

Movement reserve for bad debt

     204       181  

Financial income

     (2,556     (845

Financial expense

     5,515       2,453  

Impact of foreign currencies

     87       36  

Share in loss (gain) of a joint venture (equity method)

     —         39  

(Deferred) income taxes

     (25     266  

Other non-current liabilities

     —      

Working capital adjustments & income tax paid

    

Decrease (increase) in trade receivables and other receivables

     (1,528     8,962  

Decrease (increase) in inventories

     (1,188     1,220  

Decrease (increase) in trade payables and other payables

     3,439       (1,843

Interest received

     313       —    

Income tax paid

     (140     (1,102

Net cash flow from operating activities

     13,102       14,326  


     for the six months ended
June 30,
 
In 000€    2021     2020 (*)  

Investing activities

    

Purchase of property, plant & equipment

     (2,453     (5,756

Purchase of intangible assets

     (1,562     (687

Proceeds from the sale of property, plant & equipment & intangible assets (net)

     222       72  

Convertible loan to third party

     (4,370     (300

Investment in joint-ventures

     —         —    

Net cash flow used in investing activities

     (8,163     (6,671

Financing activities

    

Proceeds from loans & borrowings

     —         15  

Repayment of loans & borrowings

     (7,219     (5,813

Repayment of finance leases

     (1,909     (1,823

Capital increase

     74,346       140  

Interest paid

     (1,064     (1,178

Other financial income (expense)

     1,580       (617

Net cash flow from (used in) financing activities

     65,734       (9,276

Net increase of cash & cash equivalents

     70,673       (1,621

Cash & Cash equivalents at the beginning of the year

     111,538       128,897  

Exchange rate differences on cash & cash equivalents

     605       (1,822

Cash & cash equivalents at end of the year

     182,816       125,454  

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on the year to date operating result of the (83) kEUR


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€    2021     2020 (*)     2021     2020 (*)  

Net profit (loss) for the period

     3,443       (1,969     (224     (4,870

Income taxes

     131       (191     (25     267  

Financial expenses

     815       640       5,515       2,461  

Financial income

     (1,968     (345     (2,556     (845

Depreciation and amortization

     4,845       5,017       9,926       9,777  

Share in loss of joint venture

     —         —         —         39  

EBITDA

     7,266       3,152       12,637       6,829  

Share-based compensation expense (1)

     (358     231       (774     157  

Acquisition-related expenses business combinations (2)

     17       —         405       —    

Adjusted EBITDA

     6,925       3,382       12,268       6,985  

 

(1)

Share-based compensation expense represents the cost of equity-settled and 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 year 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on the year to date operating result of the (83) kEUR


Segment P&L (Unaudited)

 

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

For the three months ended June 30, 2021

            

Revenues

     10,032       17,544       23,268       50,844       (131     50,713  

Segment (adj) EBITDA

     3,129       4,519       1,850       9,498       (2,572     6,925  

Segment (adj) EBITDA %

     31.2     25.8     7.9     18.7       13.7

For the three months ended June 30, 2020

            

Revenues

     9,540       11,735       16,777       38,052       65       38,117  

Segment (adj) EBITDA

     3,756       1,139       650       5,546       (2,164     3,382  

Segment (adj) EBITDA %

     39.4     9.7     3.9     14.6       8.9
In 000€    Materialise
Software
    Materialise
Medical
    Materialise
Manufacturing
    Total
segments
    Unallocated
(1)(2)
    Consolidated  

For the six months ended June 30, 2021

            

Revenues

     20,251       33,776       42,381       96,408       (142     96,266  

Segment (adj) EBITDA

     6,558       9,060       1,706       17,324       (5,059     12,265  

Segment (adj) EBITDA %

     32.4     26.8     4.0     18.0       12.7

For the six months ended June 30, 2020

            

Revenues

     19,361       27,380       37,592       84,333       29       84,362  

Segment (adj) EBITDA

     6,401       3,595       1,768       11,765       (4,780     6,985  

Segment (adj) EBITDA %

     33.1     13.1     4.7     14.0       8.3

 

(1)

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

(2)

Unallocated segment adjusted EBITDA consists of corporate research and development, corporate headquarter costs and 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 EBITDA (Unaudited)

 

     for the three months ended
June 30,
    for the six months ended
June 30,
 
In 000€    2021     2020 (*)     2021     2020 (*)  

Net profit (loss) for the period

     3,443       (1,969     (224     (4,870

Income taxes

     131       (191     (25     267  

Financial cost

     814       640       5,515       2,461  

Financial income

     (1,968     (345     (2,556     (845

Share in loss of joint venture

         —         39  

Operating (loss) profit

     2,420       (1,865     2,710       (2,948

Depreciation and amortization

     4,845       5,015       9,926       9,777  

Corporate research and development

     774       687       1,466       1,478  

Corporate headquarter costs

     2,316       2,781       4,964       5,173  

Other operating income (expense)

     (857     (1,074     (1,742     (1,716

Segment EBITDA

     9,498       5,546       17,324       11,765  

 

(*)

The year 2020 has been restated to reflect the final accounting of the business combination with Engimplan. Impact on the year to date operating result of the (83) 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: July 29, 2021