ddd-20210331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________to____________

Commission File No. 001-34220

__________________________

3D SYSTEMS CORPORATION

(Exact name of Registrant as specified in its Charter)

__________________________


Delaware			95-4431352
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

333 Three D Systems Circle

Rock Hill, South Carolina 29730

(Address of Principal Executive Offices and Zip Code)

(Registrant’s Telephone Number, Including Area Code): (803) 326-3900

_________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, par value $0.001 per share

DDD

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Shares of Common Stock, par value $0.001 per share, outstanding as of May 5, 2021: 125,049,759

3D SYSTEMS CORPORATION

Form 10-Q

For the Quarter Ended March 31, 2021

TABLE OF CONTENTS


PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.			3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.			22
Item 3. Quantitative and Qualitative Disclosures About Market Risk.			28
Item 4. Controls and Procedures.			29
PART II — OTHER INFORMATION
Item 1. Legal Proceedings.			29
Item 1A. Risk Factors.			29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.			30
Item 6. Exhibits.			31

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

3D SYSTEMS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS


(In thousands, except par value)	March 31, 2021 (unaudited)		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	132,440	$	75,010
Accounts receivable, net of reserves — $4,106 and $4,392	98,117		114,254
Inventories	110,377		116,667
Prepaid expenses and other current assets	34,821		33,145
Current assets held for sale	—		18,439

Total current assets	375,755		357,515
Property and equipment, net	71,467		75,356
Intangible assets, net	24,896		28,083
Goodwill	156,113		161,765
Right of use assets	50,748		48,620
Deferred income tax asset	4,865		6,247
Assets held for sale	—		31,684
Other assets	21,663		23,785
Total assets	$	705,507	$	733,055
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	2,051
Current right of use liabilities	9,238		9,534
Accounts payable	44,945		45,174
Accrued and other liabilities	61,230		69,812

Customer deposits	6,973		7,750

Deferred revenue	32,006		30,302
Current liabilities held for sale	—		11,107
Total current liabilities	154,392		175,730
Long-term debt, net of deferred financing costs	—		19,218
Long-term right of use liabilities	51,099		48,469
Deferred income tax liability	3,331		4,716
Liabilities held for sale	—		2,952
Other liabilities	34,552		51,247
Total liabilities	243,374		302,332

Commitments and contingencies (Note 14)

Stockholders’ equity:
Common stock, $0.001 par value, authorized 220,000 shares; issued 126,523 and 127,626	126		128
Additional paid-in capital	1,397,276		1,404,964
Treasury stock, at cost — 1,623 shares and 3,494 shares	(10,492)		(22,590)
Accumulated deficit	(898,075)		(943,303)
Accumulated other comprehensive loss	(26,702)		(8,476)


Total stockholders’ equity	462,133		430,723
Total liabilities and stockholders’ equity	$	705,507	$	733,055

See accompanying notes to condensed consolidated financial statements.

3D SYSTEMS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Quarter Ended March 31,
(in thousands, except per share amounts)	2021		2020
Revenue:
Products	$	93,648	$	79,739
Services	52,468		55,896
Total revenue	146,116		135,635
Cost of sales:
Products	53,364		48,453
Services	28,512		30,050
Total cost of sales	81,876		78,503
Gross profit	64,240		57,132
Operating expenses:
Selling, general and administrative	49,600		56,106
Research and development	16,599		19,244

Total operating expenses	66,199		75,350
Loss from operations	(1,959)		(18,218)
Interest and other income (expense), net	38,853		(2,564)
Income (loss) before income taxes	36,894		(20,782)
Benefit for income taxes	8,334		1,858
Net income (loss)	$	45,228	$	(18,924)



Net income (loss) per common share:
Basic	$	0.37	$	(0.17)
Diluted	$	0.36	$	(0.17)

Weighted average shares outstanding:
Basic	121,705		114,590
Diluted	125,070		114,590

See accompanying notes to condensed consolidated financial statements.

3D SYSTEMS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	Quarter Ended March 31,
(in thousands)	2021		2020
Net income (loss)	$	45,228	$	(18,924)
Other comprehensive income (loss), net of taxes:
Pension adjustments	181		164
Derivative financial instruments	721		(1,659)
Foreign currency translation	(25,609)		(10,172)
Foreign currency translation reclassification - sale of Cimatron	6,481		—
Total other comprehensive loss, net of taxes	(18,226)		(11,667)
Total comprehensive income (loss), net of taxes	$	27,002	$	(30,591)

See accompanying notes to condensed consolidated financial statements.

3D SYSTEMS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Quarter Ended March 31,
(in thousands)	2021		2020
Cash flows from operating activities:
Net income (loss)	$	45,228	$	(18,924)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	9,102		11,690
Stock-based compensation	11,050		6,312


Loss on hedge termination	721		—
Provision for bad debts	(142)		817
(Gain) loss on the disposition of businesses, property, equipment and other assets	(39,401)		137
Provision for deferred income taxes and reserve adjustments	(8,889)		(106)
Impairment of goodwill and assets	—		1,100
Changes in operating accounts:
Accounts receivable	15,941		1,568
Inventories	2,699		(2,694)
Prepaid expenses and other current assets	(2,303)		(14,298)
Accounts payable	1,665		6,616
Deferred revenue and customer deposits	1,552		10,242
Accrued and other liabilities	(17,491)		(5,741)
All other operating activities	8,721		996
Net cash provided by (used in) operating activities	28,453		(2,285)
Cash flows from investing activities:
Purchases of property and equipment	(3,878)		(4,366)
Proceeds from sale of assets and businesses, net of cash	54,747		552
Purchase of noncontrolling interest	(4,000)		(12,500)
Other investing activities	(306)		(284)
Net cash provided by (used in) investing activities	46,563		(16,598)
Cash flows from financing activities:



Repayment of borrowings/long-term debt	(21,392)		(627)

Proceeds from inventory financing agreements	—		2,509

Payments related to net-share settlement of stock-based compensation	(2,749)		(949)
Other financing activities	(196)		296
Net cash (used in) provided by financing activities	(24,337)		1,229
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,434)		(

SEC Form 10-Q filed by 3D Systems Corporation