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 2024

 

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 April 25, 2024

 

 

 

 

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/ Brigette de Vet-Veithen

  Name:   Brigette de Vet-Veithen
  Title:   Chief Executive Officer

 

Date: April 25, 2024

 

 

 

 

Exhibit 99.1

 

Materialise Reports First Quarter 2024 Results

 

LEUVEN, Belgium--(BUSINESS WIRE)—April 25, 2024 -- 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 first quarter ended March 31, 2024.

 

Highlights – First Quarter 2024

 

·Total revenue decreased by 3.4% to 63,637 kEUR compared to 65,886 kEUR for the first quarter of 2023.
·Gross profit as a percentage of revenue increased to 56.5% for the first quarter of 2024 from 55.9% for the 2023 period.
·Adjusted EBIT decreased to 2,656 kEUR for the first quarter of 2024 from 4,998 kEUR for the 2023 period while Adjusted EBITDA decreased to 8,094 kEUR for the first quarter of 2024 from 10,310 kEUR for the 2023 period.
·Net profit for the first quarter of 2024 was 3,585 kEUR, or 0.06 EUR per diluted share, compared to 3,715 kEUR, or 0.06 EUR per diluted share, for the 2023 period.

 

CEO Brigitte de Vet-Veithen commented, “In line with expectations our consolidated revenue decreased by 3% compared to the same period of 2023, an exceptionally strong quarter which showed 24% growth. In the first quarter of 2024, our Materialise Medical segment continued to lead the way with 8% revenue growth, while revenue declined in our Manufacturing and Software segments amidst less favorable market conditions. While continued investments in sustainable growth and the ongoing conversion to a recurring revenue business model impacted our operational profitability, we delivered a positive net result and an improved net cash position.”

 

First Quarter 2024 Results

 

Total revenue for the first quarter of 2024 decreased 3.4% to 63,637 kEUR from 65,886 kEUR for the first quarter of 2023. Adjusted EBIT decreased to 2,656 kEUR for the first quarter of 2024 from 4,998 kEUR for the 2023 period. The Adjusted EBIT margin (Adjusted EBIT divided by total revenue) for the first quarter of 2024 was 4.2%, compared to 7.6% for the first quarter of 2023. Adjusted EBITDA decreased to 8,094 kEUR for the first quarter of 2024 from 10,310 kEUR for the 2023 period.

 

Revenue from our Materialise Medical segment increased 7.7% to 26,183 kEUR for the first quarter of 2024 compared to 24,317 kEUR for the same period in 2023. Segment Adjusted EBITDA increased to 7,921 kEUR for the first quarter of 2024 compared to 7,348 kEUR while the segment Adjusted EBITDA margin remained stable at 30.3% compared to 30.2% for the first quarter of 2023.

 

Revenue from our Materialise Software segment decreased by 8.0% to 10,438 kEUR for the first quarter of 2024 from 11,350 kEUR for the same quarter last year. Segment Adjusted EBITDA decreased to 1,090 kEUR from 2,427 kEUR while the segment Adjusted EBITDA margin was 10.4% compared to 21.4% for the prior-year period.

 

Revenue from our Materialise Manufacturing segment decreased by 10.6% to 27,016 kEUR for the first quarter of 2024 from 30,219 kEUR for the first quarter of 2023. Segment Adjusted EBITDA decreased to 1,529 kEUR from 3,189 kEUR while the segment Adjusted EBITDA margin was 5.7% compared to 10.6% for the first quarter of 2023.

 

Gross profit decreased to 35,935 kEUR compared to 36,837 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 56.5% compared to 55.9% for the first quarter of 2023.

 

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 5.5% to 34,138 kEUR for the first quarter of 2024 from 32,358 kEUR for the first quarter of 2023.

 

Net other operating income increased to 789 kEUR from 519 kEUR for the first quarter of 2023.

 

Operating result amounted to 2,585 kEUR compared to 4,998 kEUR for the first quarter of 2023.

 

Net financial result increased to 1,510 kEUR compared to (566) kEUR for the first quarter of 2023.

 

The first quarter of 2024 contained income tax expenses of (510) kEUR, compared to (718) kEUR in the first quarter of 2023.

 

As a result of the above, net profit for the first quarter of 2024 was 3,585 kEUR, compared to 3,715 kEUR for the same period in 2023. Total comprehensive income for the first quarter of 2024, which includes exchange differences on translation of foreign operations, was 3,312 kEUR compared to 4,490 kEUR for the 2023 period.

 

At March 31, 2024, we had cash and cash equivalents of 128,899 kEUR compared to 127,573 kEUR at December 31, 2023. Gross debt amounted to 59,686 kEUR, compared to 64,398 kEUR at December 31, 2023. As a result, our net cash position (gross debt less cash and cash equivalents) increased by 6,038 kEUR to 69,213 kEUR.

 

 

 

 

Cash flow from operating activities for the first quarter of 2024 decreased to 9,970 kEUR from 11,044 kEUR for the same period in 2023. Total cash out from capital expenditures for the first quarter of 2024 amounted to 2,830 kEUR.

 

Net shareholders’ equity at March 31, 2024 was 239,977 kEUR compared to 236,594 kEUR at December 31, 2023.

 

2024 Guidance

 

Mrs. de Vet-Veithen concluded, “The fundamentals of our three business segments are strong and we remain confident that we are well positioned to deliver on our growth objectives. We continue to expect to report consolidated revenue for the full fiscal year 2024 within the 265,000 to 275,000 kEUR range we communicated in our year-end 2023 earnings announcement in February 2024. We are also maintaining our Adjusted EBIT guidance of 11,000 kEUR to 14,000 kEUR for fiscal year 2024.”

 

Non-IFRS Measures

 

Materialise uses EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA as supplemental financial measures of its financial performance. EBIT is calculated as net profit plus income taxes, financial expenses (less financial income) and shares of profit or loss in a joint venture. 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 EBIT and Adjusted EBITDA are determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBIT and EBITDA, respectively. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of financing decisions and, in the case of EBITDA and Adjusted EBITDA, long term investment, rather than the performance of the company’s day-to-day operations. The company also uses segment Adjusted EBITDA to evaluate the performance of its three business segments. As compared to net profit, these measures are limited in that they do not reflect the cash requirements necessary to service interest or principal payments on the company’s indebtedness and, in the case of EBITDA and Adjusted EBITDA, these measures are further 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 changes associated with impairments. Management evaluates such items through other financial measures such as financial expenses, 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 EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBIT, EBITDA, Adjusted EBIT 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 EBIT, EBITDA, Adjusted EBIT 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 1.0811, the reference rate of the European Central Bank on March 28, 2024.

 

Conference Call and Webcast

 

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the first quarter of 2024 on Thursday, April 25, 2024, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Brigitte de Vet-Veithen, Chief Executive Officer and Koen Berges, Chief Financial Officer. A question-and-answer session will follow management’s remarks.

 

To access the 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 receive a call to connect to Materialise’s conference call.

 

·https://register.vevent.com/register/BIb413a8f0638448a2b9b49116612e00d9

 

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 over 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 and most complete 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 EBIT, 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 current armed conflicts in the Middle East and Ukraine and governmental responses thereto, inflation, 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
March 31,
 
In '000  2024   2024   2023 
   U.S.$       
Revenue   68,798    63,637    65,886 
Cost of Sales   (29,949)   (27,702)   (29,049)
Gross Profit   38,849    35,935    36,837 
Gross profit as % of revenue   56.5%   56.5%   55.9%
                
Research and development expenses   (11,061)   (10,231)   (9,014)
Sales and marketing expenses   (15,782)   (14,598)   (14,288)
General and administrative expenses   (10,064)   (9,309)   (9,056)
Net other operating income (expenses)   853    789    519 
Operating (loss) profit   2,795    2,585    4,998 
                
Financial expenses   (863)   (798)   (1,375)
Financial income   2,495    2,308    809 
(Loss) profit before taxes   4,427    4,096    4,432 
                
Income Taxes   (552)   (510)   (718)
Net (loss) profit for the period   3,875    3,585    3,715 
Net (loss) profit attributable to:   -           
The owners of the parent   3,883    3,591    3,721 
Non-controlling interest   (6)   (6)   (7)
                
Earning per share attributable to owners of the parent               
Basic   0.07    0.06    0.06 
Diluted   0.07    0.06    0.06 
                
Weighted average basic shares outstanding   59,067    59,067    59,067 
Weighted average diluted shares outstanding   59,088    59,088    59,070 

 

 

 

  

Consolidated statements of comprehensive income (Unaudited)

 

   for the three months ended
March 31,
 
In 000€  2024   2024   2023 
   U.S.$       
Net profit (loss) for the period   3,875    3,585    3,715 
Other comprehensive income               
Recycling               
Exchange difference on translation of foreign operations   (295)   (273)   776 
Other comprehensive income (loss), net of taxes   (295)   (273)   776 
Total comprehensive income (loss) for the year, net of taxes   3,581    3,312    4,490 
Total comprehensive income (loss) attributable to:               
The owners of the parent   3,588    3,319    4,496 
Non-controlling interests   (7)   (6)   (6)

 

 

 

  

Consolidated statement of financial position (Unaudited)

 

   As of
March 31,
   As of
December 31,
 
In 000€  2024   2023 
Assets          
Non-current assets          
Goodwill   43,238    43,158 
Intangible assets   30,275    31,464 
Property, plant & equipment   96,297    95,400 
Right-of-Use assets   8,203    8,102 
Deferred tax assets   2,773    2,797 
Investments in convertible loans   3,805    3,744 
Other non-current assets   6,052    5,501 
Total non-current assets   190,643    190,166 
Current assets          
Inventories   17,013    17,034 
Trade receivables   48,599    52,698 
Other current assets   9,084    9,160 
Cash and cash equivalents   128,899    127,573 
Total current assets   203,595    206,465 
Total assets   394,238    396,630 

  

 

 

 

   As of
March 31,
   As of
December 31,
 
In 000€  2024   2023 
Equity and liabilities          
Equity          
Share capital   4,487    4,487 
Share premium   234,013    233,942 
Retained earnings and other reserves   1,537    (1,783)
Equity attributable to the owners of the parent   240,037    236,646 
Non-controlling interest   (60)   (53)
Total equity   239,977    236,594 
Non-current liabilities          
Loans & borrowings   29,099    33,582 
Lease liabilities   5,641    5,333 
Deferred tax liabilities   3,567    3,725 
Deferred income   7,927    10,701 
Other non-current liabilities   1,259    1,745 
Total non-current liabilities   47,493    55,086 
Current liabilities          
Loans & borrowings   22,502    22,873 
Lease liabilities   2,444    2,610 
Trade payables   19,744    21,196 
Tax payables   2,152    1,777 
Deferred income   44,228    40,791 
Other current liabilities   15,698    15,703 
Total current liabilities   106,768    104,950 
Total equity and liabilities   394,238    396,630 

  

 

 

 

Consolidated statement of cash flows (Unaudited)

 

   for the three months ended
March 31,
 
In 000€  2024   2023 
Operating activities          
Net (loss) profit for the period   3,585    3,715 
Non-cash and operational adjustments   4,637    6,112 
Depreciation of property plant & equipment   3,765    3,637 
Amortization of intangible assets   1,672    1,674 
Impairment of goodwill and intangible assets   -    - 
Share-based payment expense   71    - 
Loss (gain) on disposal of intangible assets and property, plant & equipment   (132)   (22)
Movement in provisions   79    (618)
Movement reserve for bad debt and slow moving inventory   188    109 
Financial income   (2,309)   (767)
Financial expense   797    1,375 
Impact of foreign currencies   (5)   6 
(Deferred) income taxes   510    717 
Working capital adjustments   1,029    850 
Decrease (increase) in trade receivables and other receivables   3,712    3,363 
Decrease (increase) in inventories and contracts in progress   (10)   262 
Increase (decrease) in deferred revenue   643    1,368 
Increase (decrease) in trade payables and other payables   (3,315)   (4,142)
Income tax paid & Interest received   718    367 
Net cash flow from operating activities   9,970    11,044 

  

 

 

  

   for the three months ended
March 31,
 
In 000€  2024   2023 
Investing activities          
Purchase of property, plant & equipment   (2,525)   (2,532)
Purchase of intangible assets   (306)   (738)
Proceeds from the sale of property, plant & equipment & intangible assets (net)   206    100 
Acquisition of subsidiary (net of cash)   -    - 
Net cash flow used in investing activities   (2,624)   (3,171)
Financing activities          
Repayment of loans & borrowings   (4,876)   (5,635)
Repayment of leases   (757)   (859)
Capital increase   -    - 
Interest paid   (358)   (417)
Other financial income (expense)   (5)   (108)
Net cash flow from (used in) financing activities   (5,997)   (7,019)
Net increase/(decrease) of cash & cash equivalents   1,348    854 
Cash & Cash equivalents at the beginning of the year   127,573    140,867 
Exchange rate differences on cash & cash equivalents   (22)   (1)
Cash & cash equivalents at end of the period   128,899    141,720 

  

 

 

 

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

 

   for the three months ended
March 31,
 
In 000€  2024   2023 
Net profit (loss) for the period   3,585    3,715 
Income taxes   510    718 
Financial expenses   798    1,375 
Financial income   (2,308)   (809)
EBIT   2,585    4,998 
Share-based compensation expense (1)   71    - 
Adjusted EBIT   2,656    4,998 

 

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

  

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

 

   for the three months ended
March 31,
 
In 000€  2024   2023 
Net profit (loss) for the period   3,585    3,715 
Income taxes   510    718 
Financial expenses   798    1,375 
Financial income   (2,308)   (809)
Depreciation and amortization   5,438    5,311 
EBITDA   8,023    10,310 
Share-based compensation expense (1)   71    - 
Adjusted EBITDA   8,094    10,310 

 

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

  

 

 

 

Segment P&L (Unaudited)

 

In 000€  Materialise
Medical
   Materialise
Software
   Materialise
Manufacturing
   Total
segments
   Unallocated (1)   Consolidated 
For the three months ended March 31, 2024                              
Revenues   26,183    10,438    27,016    63,637    0    63,637 
Segment (adj) EBITDA   7,921    1,090    1,529    10,540    (2,446)   8,094 
Segment (adj) EBITDA %   30.3%   10.4%   5.7%   16.6%        12.7%
For the three months ended March 31, 2023                              
Revenues   24,317    11,350    30,219    65,886    0    65,886 
Segment (adj) EBITDA   7,348    2,427    3,189    12,964    (2,655)   10,310 
Segment (adj) EBITDA %   30.2%   21.4%   10.6%   19.7%        15.6%

 

(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
March 31,
 
In 000€  2024   2023 
Net profit (loss) for the period   3,585    3,715 
Income taxes   510    718 
Financial cost   798    1,375 
Financial income   (2,308)   (809)
Operating (loss) profit   2,585    4,998 
Depreciation and amortization   5,438    5,311 
Corporate research and development   808    722 
Corporate headquarter costs   2,484    2,640 
Other operating income (expense)   (776)   (707)
Segment adjusted EBITDA   10,540    12,964