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 April 2022

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 2022 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 2022 Results

Total revenue for the first quarter of 2022 increased 16.3% to 52,961 kEUR from 45,554 kEUR for the first quarter of 2021.

The results of Link3D have been fully consolidated with the results of our Materialise Software segment as of the beginning of this year. Revenue from Materialise Software increased 2.6% to 10,483 kEUR for the first quarter of 2022 from 10,219 kEUR for the same quarter last year.

Revenue from our Materialise Medical segment increased 13.0% to 18,347 kEUR for the first quarter of 2022 compared to 16,231 kEUR for the same period in 2021.

Revenue from our Materialise Manufacturing segment increased 26.2% to 24,131 kEUR for the first quarter of 2022 from 19,114 kEUR for the first quarter of 2021.

Gross profit grew to 28,884 kEUR compared to 24,568 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 54.5% compared to 53.9% for the first quarter of 2021.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 17.2% to 29,773 kEUR for the first quarter of 2022 from 25,398 kEUR for the first quarter of 2021.

Net other operating income was 938 kEUR compared to 1,120 kEUR for the first quarter of 2021.

Operating result amounted to 49 kEUR compared to 290 kEUR for the first quarter of 2021.

Net financial result was 376 kEUR compared to (4,112) kEUR for the first quarter of 2021.

The first quarter of 2022 contained income tax expenses of (298) kEUR, compared to 181 kEUR income tax income in the first quarter of 2021.

As a result of the above, net profit for the first quarter of 2022 was 127 kEUR, compared to (3,642) kEUR for the same period in 2021. Total comprehensive income for the first quarter of 2022, which includes exchange differences on translation of foreign operations, was 1,543 kEUR compared to (3,150) kEUR for the 2021 period.

At March 31, 2022, we had cash and cash equivalents of 169,610 kEUR compared to 196,028 kEUR at December 31, 2021. Gross debt amounted to 93,583 kEUR, compared to 99,107 kEUR at December 31, 2021. As a result, our net cash position (gross debt less cash and cash equivalents) was 76,027 kEUR, a decrease of 20,894 kEUR, and included the effect of our call option exercise to acquire 100% of the shares of Link3D.

Cash flow from operating activities for the first quarter of 2022 increased to 11,111 kEUR from 4,231 kEUR for the same period in 2021. Total capital expenditures for the first quarter of 2022 amounted to 3,499 kEUR.

Net shareholders’ equity at March 31, 2022 was 234,121 kEUR compared to 232,577 kEUR at December 31, 2021.

Adjusted EBITDA increased to 5,443 kEUR for the first quarter of 2022 from 5,341 kEUR for the 2021 period. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the first quarter of 2022 was 10.3%, compared to 11.7% for the first quarter of 2021.


Adjusted EBITDA from our Materialise Software segment decreased, including the effect of ongoing investments in Link3D, to 1,932 kEUR from 3,429 kEUR while the segment EBITDA margin (segment EBITDA divided by segment revenue) was 18.4% compared to 33.6% for the prior-year period.

Adjusted EBITDA from our Materialise Medical segment amounted to 3,227 kEUR for the first quarter of 2022 compared to 4,541 kEUR while the segment EBITDA margin was 17.6% compared to 28.0% for the first quarter of 2021.

Adjusted EBITDA from our Materialise Manufacturing segment increased to 2,613 kEUR from (144) kEUR while the segment EBITDA margin grew to 10.8% compared to (0.8)% for the first quarter of 2021.

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 1.1101, the reference rate of the European Central Bank on March 31, 2022.

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
March 31,
 
In ‘000    2022     2022     2021*  
     U.S.$          

Revenue

     58,792       52,961       45,554  

Cost of Sales

     (26,729     (24,078     (20,986

Gross Profit

     32,064       28,884       24,568  

Gross profit as % of revenue

     54.5     54.5     53.9

Research and development expenses

     (8,675     (7,814     (6,536

Sales and marketing expenses

     (15,003     (13,515     (11,310

General and administrative expenses

     (9,373     (8,444     (7,552

Net other operating income (expenses)

     1,041       938       1,120  

Operating (loss) profit

     54       49       290  

Financial expenses

     (1,431     (1,289     (4,701

Financial income

     1,849       1,665       589  

Share in loss of joint venture

     —         —         —    

(Loss) profit before taxes

     472       425       (3,822

Income Taxes (*)

     (331     (298     181  

Net (loss) profit for the period (*)

     141       127       (3,642

Net (loss) profit attributable to:

     —        

The owners of the parent

     148       134       (3,642

Non-controlling interest

     (7     (7     —    

Earning per share attributable to owners of the parent

      

Basic

     0.00       0.00       (0.07

Diluted

     0.00       0.00       (0.07

Weighted average basic shares outstanding

     59,064       59,064       54,169  

Weighted average diluted shares outstanding

     59,102       59,102       54,169  

 

(*)

The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.

Impact on Net profit for the period and on Income taxes is 26 k€.


Consolidated statements of comprehensive income (Unaudited)

 

     for the three months ended
March 31,
 
In 000€    2022     2022     2021(*)  
     U.S.$          

Net profit (loss) for the period (*)

     141       127       (3,642

Other comprehensive income

      

Recycling

      

Exchange difference on translation of foreign operations

     1,572       1,416       492  

Non-recycling

      

Fair value adjustments through OCI - Equity instruments

     —         —         —    

Other comprehensive income (loss), net of taxes

     1,572       1,416       492  

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

     1,713       1,543       (3,150

Total comprehensive income (loss) attributable to:

      

The owners of the parent

     1,720       1,549       (3,150

Non-controlling interests

     (7     (7     —    

 

(*)

The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.

Impact on Net profit for the period is 26k€.


Consolidated statement of financial position (Unaudited)

 

     As of
March 31,
     As of
December 31,
 
In 000€    2022      2021  

Assets

     

Non-current assets

     

Goodwill

     43,548        18,726  

Intangible assets

     38,075        31,668  

Property, plant & equipment

     84,329        84,451  

Right-of-Use assets

     9,270        9,054  

Investments in joint ventures

     —          —    

Deferred tax assets

     393        227  

Investments in convertible loans

     3,622        3,560  

Investments in non-listed equity instruments

     399        399  

Other non-current assets

     5,404        7,520  

Total non-current assets

     185,040        155,605  

Current assets

     

Inventories

     12,720        11,295  

Trade receivables

     38,575        41,541  

Other current assets

     8,169        8,940  

Cash and cash equivalents

     169,610        196,028  

Total current assets

     229,074        257,803  

Total assets

     414,115        413,408  


     As of
March 31,
    As of
December 31,
 
In 000€    2022     2021  

Equity and liabilities

    

Equity

    

Share capital

     4,489       4,489  

Share premium

     233,872       233,872  

Retained earnings and other reserves

     (4,240     (5,784

Equity attributable to the owners of the parent

     234,121       232,577  

Non-controlling interest

     (6     1  

Total equity

     234,115       232,578  

Non-current liabilities

    

Loans & borrowings

     66,759       72,637  

Lease liabilities

     5,670       5,268  

Deferred tax liabilities

     4,295       4,371  

Deferred income

     5,555       4,952  

Other non-current liabilities

     2,681       2,168  

Total non-current liabilities

     84,960       89,396  

Current liabilities

    

Loans & borrowings

     17,882       17,849  

Lease liabilities

     3,272       3,353  

Trade payables

     20,202       20,171  

Tax payables

     722       783  

Deferred income

     37,226       33,306  

Other current liabilities

     15,736       15,972  

Total current liabilities

     95,040       91,434  

Total equity and liabilities

     414,115       413,408  


Consolidated statement of cash flows (Unaudited)

 

     for the three months ended
March 31,
 
In 000€    2022     2021*  

Operating activities

    

Net (loss) profit for the period (*)

     127       (3,642

Non-cash and operational adjustments

    

Depreciation of property plant & equipment

     3,840       3,803  

Amortization of intangible assets

     1,602       1,277  

Impairment of goodwill and intangible assets

     —         —    

Share-based payment expense

     (48     (415

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

     (18     (32

Movement in provisions

     2       —    

Movement reserve for bad debt and slow moving inventory

     130       (2

Financial income

     (1,618     (589

Financial expense

     1,237       4,701  

Impact of foreign currencies

     (28     18  

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

     —         —    

(Deferred) income taxes (*)

     302       (181

Other non-current liabilities

     —         —    

Working capital adjustments

     5,923       (860

Decrease (increase) in trade receivables and other receivables

     4,506       (931

Decrease (increase) in inventories and contracts in progress

     (1,357     (329

Increase (decrease) in trade payables and other payables

     2,774       400  

Income tax paid & Interest received

     (341     153  

Net cash flow from operating activities

     11,111       4,231  

 

(*)

The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.

Impact on Net profit for the period and on (Deferred) income taxes is 26 k€.


     for the three months ended
March 31,
 
In 000€    2022     2021  

Investing activities

    

Purchase of property, plant & equipment

     (2,376     (1,242

Purchase of intangible assets

     (1,123     (768

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

     93       183  

Acquisition of subsidiary (net of cash)

     (27,414     —    

(Convertible) Loans granted

     —         (1,122

Other equity investments in non-listed entities

     —         —    

Net cash flow used in investing activities

     (30,820     (2,949

Financing activities

    

Repayment of loans & borrowings

     (5,969     (3,918

Repayment of leases

     (881     (1,066

Capital increase

     —         —    

Interest paid

     (515     (536

Other financial income (expense)

     (89     136  

Net cash flow from (used in) financing activities

     (7,452     (5,384

Net increase/(decrease) of cash & cash equivalents

     (27,161     (4,102

Cash & Cash equivalents at the beginning of the year

     196,028       111,538  

Exchange rate differences on cash & cash equivalents

     743       132  

Cash & cash equivalents at end of the period

     169,610       107,568  


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

 

     for the three months ended
March 31,
 
In 000€    2022     2021 (*)  

Net profit (loss) for the period (*)

     127       (3,642

Income taxes (*)

     298       (181

Financial expenses

     1,289       4,701  

Financial income

     (1,665     (589

Depreciation and amortization

     5,442       5,081  

Share in loss of joint venture

     —         —    

EBITDA

     5,491       5,371  

Share-based compensation expense (1)

     (48     (415

Acquisition-related expenses of business combinations (2)

     —         385  

Adjusted EBITDA

     5,443       5,341  

 

(1)

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

(2)

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

(*)

The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.

Impact on Net profit for the period and Income taxes is 26 k€.


Segment P&L (Unaudited)

 

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

For the three months ended March 31, 2022

            

Revenues

     10,483       18,347       24,131       52,961       0       52,961  

Segment (adj) EBITDA

     1,932       3,227       2,613       7,772       (2,329     5,443  

Segment (adj) EBITDA %

     18.4     17.6     10.8     14.7       10.3

For the three months ended March 31, 2021

            

Revenues

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

Segment (adj) EBITDA

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

Segment (adj) EBITDA %

     33.6     28.0     -0.8     17.2       11.7

 

(1)

Unallocated segment adjusted EBITDA consists of corporate research and development, corporate headquarter costs 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
March 31,
 
In 000€    2022     2021 (*)  

Net profit (loss) for the period (*)

     127       (3,642

Income taxes (*)

     298       (181

Financial cost

     1,289       4,701  

Financial income

     (1,665     (589

Share in loss of joint venture

     —         —    

Operating (loss) profit

     49       289  

Depreciation and amortization

     5,442       5,081  

Corporate research and development

     816       692  

Corporate headquarter costs

     2,106       2,648  

Other operating income (expense)

     (640     (855

Segment adjusted EBITDA

     7,772       7,855  

 

(*)

The year 2021 has been restated to reflect the final accounting of the business combination with RS Print.

Impact on Net profit for the period and Income taxes is 26 k€.


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 29, 2022