Protolabs reports financial results for the second quarter 2020
Maple plain, minn.--(business wire)--proto labs, inc. (nyse: prlb), a leading online and technology-enabled, quick-turn, on-demand manufacturer, today announced financial results for the second quarter ended june 30, 2020. second quarter 2020 highlights include: revenue for the second quarter of 2020 was $106.6 million, representing an 8.1 percent decrease compared to revenue of $115.9 million in the second quarter of 2019. net income for the second quarter of 2020 was $12.6 million, or $0.47 per diluted share. non-gaap net income was $15.9 million, or $0.59 per diluted share. see “non-gaap financial measures” below. “the first half of 2020 has presented a great deal of challenges to all businesses, and protolabs is no exception. we have a solid financial foundation, a healthy balance sheet, and resilient business model to weather the uncertain environment,” said vicki holt, president and chief executive officer of protolabs. “the covid-19 pandemic provides an opportunity for protolabs to demonstrate the value our digital business model can provide. during the quarter, we delivered over 8 million parts to support the medical industry, generating $12 million in revenue. our dynamic digital manufacturing business model, and our agile and creative employees, will allow us to thrive as customer activity begins to re-accelerate.” additional second quarter 2020 highlights include: gross margin was 49.2 percent of revenue for the second quarter of 2020, compared to 50.5 percent for the first quarter of 2020 on lower revenue. operating expenses were $38.1 million or 35.8 percent of revenue for the second quarter of 2020, down $3.2 million from $41.3 million of operating expenses in the first quarter of 2020. gaap operating margin was 13.5 percent of revenue during the second quarter of 2020, compared to 14.6 percent for the first quarter of 2020 due to lower revenue. non-gaap operating margin was 17.6 percent of revenue during the second quarter of 2020, compared to 17.9 percent for the first quarter of 2020. see “non-gaap financial measures” below. the company generated $31.0 million in cash from operations during the second quarter of 2020 up from $22.4 million in first quarter 2020. “our business model continues to generate strong cash flow, despite the uncertainty in the market,” said john way, chief financial officer. “we will continue to monitor demand levels and prudently manage expenses, while continuing to invest in and execute on key strategic initiatives to position our business for strong growth in the future.” non-gaap financial measures the company has included non-gaap revenue growth that excludes the impact of changes in foreign currency exchange rates (collectively, “non-gaap revenue growth”). management believes these metrics are useful in evaluating the underlying business trends and ongoing operating performance of the company. the company has included earnings before interest, taxes, depreciation and amortization (“ebitda”) and ebitda, adjusted for stock-based compensation expense and unrealized gain on foreign currency (collectively, “adjusted ebitda”), in this press release to provide investors with additional information regarding the company’s financial results. the company has included non-gaap operating margin, adjusted for stock-based compensation expense and amortization expense (collectively, “non-gaap operating margin”), in this press release to provide investors with additional information regarding the company’s financial results. the company has included non-gaap net income, adjusted for stock-based compensation expense, amortization expense, and unrealized gain on foreign currency (collectively, “non-gaap net income”), in this press release to provide investors with additional information regarding the company’s financial results. the company has provided below reconciliations of gaap to non-gaap net income, non-gaap operating margin, non-gaap revenue growth and adjusted ebitda, the most directly comparable measures calculated and presented in accordance with gaap. these non-gaap measures are used by the company’s management and board of directors to understand and evaluate operating performance and trends and provide useful measures for period-to-period comparisons of the company’s business. accordingly, the company believes that these non-gaap measures provide useful information to investors and others in understanding and evaluating operating results in the same manner as our management and board of directors. conference call the company has scheduled a conference call to discuss its second quarter 2020 financial results and financial guidance today, july 28, 2020 at 8:30 a.m. edt. to access the call in the u.s. please dial 877-709-8150 or outside the u.s. dial 201-689-8354 at least five minutes prior to the 8:30 a.m. edt start time. no participant code is required. a simultaneous webcast of the call, and accompanying presentations will be available via the investor relations section of the protolabs website and the following link: https://edge.media-server.com/mmc/p/9crcgv9j. a replay will be available for 14 days following the call on the investor relations section of the protolabs website. about protolabs protolabs is a leading digital manufacturing source for rapid prototyping and on-demand production. the company produces custom parts and assemblies in as fast as one day with automated 3d printing, cnc machining, sheet metal fabrication, and injection molding processes. its digital approach to manufacturing enables accelerated time to market, reduces development and production costs, and minimizes risk throughout the product life cycle. visit protolabs.com for more information. forward-looking statements statements contained in this press release regarding matters that are not historical or current facts are “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. these statements involve known and unknown risks, uncertainties and other factors which may cause the results of protolabs to be materially different than those expressed or implied in such statements. certain of these risk factors and others are described in the “risk factors” section within reports filed with the sec. other unknown or unpredictable factors also could have material adverse effects on protolabs’ future results. the forward-looking statements included in this press release are made only as of the date hereof. protolabs cannot guarantee future results, levels of activity, performance or achievements. accordingly, you should not place undue reliance on these forward-looking statements. finally, protolabs expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances. june 30, december 31, 2020 2019 $ 98,003 $ 125,225 33,128 35,437 61,297 57,450 10,774 10,075 95 - 9,670 8,232 212,967 236,419 281,129 263,712 128,752 128,752 15,861 17,369 44,127 12,960 11,049 11,425 4,560 3,030 $ 698,445 $ 673,667 $ 17,556 $ 16,804 15,138 15,058 15,041 11,057 3,368 3,340 - 1,322 51,103 47,581 8,379 8,565 31,907 26,283 5,807 5,448 601,249 585,790 $ 698,445 $ 673,667 2020 2019 2020 2019 $ 57,894 $ 55,457 $ 112,670 $ 110,768 28,760 38,888 66,645 76,760 14,236 15,266 30,184 29,746 4,669 5,472 10,318 10,497 1,016 849 1,866 1,613 106,575 115,932 221,683 229,384 54,119 55,696 111,127 110,288 52,456 60,236 110,556 119,096 16,936 19,285 35,116 37,862 8,648 8,169 17,635 16,182 12,521 13,209 26,629 26,031 38,105 40,663 79,380 80,075 14,351 19,573 31,176 39,021 767 1,125 1,821 1,338 15,118 20,698 32,997 40,359 2,511 4,532 6,406 8,682 $ 12,607 $ 16,166 $ 26,591 $ 31,677 $ 0.47 $ 0.60 $ 1.00 $ 1.18 $ 0.47 $ 0.60 $ 0.99 $ 1.17 26,660,498 26,875,153 26,718,652 26,919,016 26,760,866 27,041,422 26,837,938 27,113,328 2020 2019 $ 26,591 $ 31,677 15,855 14,981 6,672 6,526 5,651 1,585 129 7 (854 ) (279 ) (627 ) 391 53,417 54,888 (33,305 ) (34,136 ) (3,000 ) (4,000 ) (57,212 ) (8,983 ) 28,225 29,170 (65,292 ) (17,949 ) 2,855 2,243 (3,367 ) (2,418 ) (14,686 ) (21,410 ) (15,198 ) (21,585 ) (149 ) 135 (27,222 ) 15,489 125,225 85,046 $ 98,003 $ 100,535 2020 2019 2020 2019 $ 12,607 $ 16,166 $ 26,591 $ 31,677 3,639 3,486 6,672 6,526 754 863 1,508 1,734 (139 ) (305 ) (936 ) (58 ) 4,254 4,044 7,244 8,202 (987 ) (1,074 ) (1,662 ) (1,993 ) $ 15,874 $ 19,136 $ 32,173 $ 37,886 $ 0.60 $ 0.71 $ 1.20 $ 1.41 $ 0.59 $ 0.71 $ 1.20 $ 1.40 26,660,498 26,875,153 26,718,652 26,919,016 26,760,866 27,041,422 26,837,938 27,113,328 2020 2019 2020 2019 $ 936 $ 797 $ 1,799 $ 1,530 750 614 1,368 1,163 607 503 1,128 926 2,100 2,435 3,885 4,641 3,457 3,552 6,381 6,730 (139 ) (305 ) (936 ) (58 ) $ 4,254 $ 4,044 $ 7,244 $ 8,202 2020 2019 2020 2019 $ 106,575 $ 115,932 $ 221,683 $ 229,384 14,351 19,573 31,176 39,021 13.5 % 16.9 % 14.1 % 17.0 % 3,639 3,486 6,672 6,526 754 863 1,508 1,734 4,393 4,349 8,180 8,260 $ 18,744 $ 23,922 $ 39,356 $ 47,281 17.6 % 20.6 % 17.8 % 20.6 % 2020 2019 2020 2019 $ 12,607 $ 16,166 $ 26,591 $ 31,677 754 863 1,508 1,734 7,143 6,678 14,347 13,246 (368 ) (465 ) (928 ) (1,046 ) 2,511 4,532 6,406 8,682 22,647 27,774 47,924 54,293 3,639 3,486 6,672 6,526 (139 ) (305 ) (936 ) (58 ) 3,500 3,181 5,736 6,468 $ 26,147 $ 30,955 $ 53,660 $ 60,761 $ 86,823 $ - $ 86,823 $ 91,149 (4.7) (4.7) 16,729 417 17,146 20,940 (20.1) (18.1) 3,023 (62 ) 2,961 3,843 (21.3) (23.0) $ 106,575 $ 355 $ 106,930 $ 115,932 (8.1) (7.8) $ 176,899 $ - $ 176,899 $ 178,960 (1.2) (1.2) 37,516 1,065 38,581 42,194 (11.1) (8.6) 7,268 (117 ) 7,151 8,230 (11.7) (13.1) $ 221,683 $ 948 $ 222,631 $ 229,384 (3.4) (2.9) 2020 2019 2020 2019 17,037 20,840 29,703 31,550
