Machine revenue grew 36% in 2016, driving total revenue up 18% to $48 millionGross margin of 29.6% in 2016, up from 20.7% in 2015Backlog of $19.7 million at year endNORTH HUNTINGDON, Pa., March 16, 2017 (GLOBE NEWSWIRE) — The ExOne Company (NASDAQ:XONE) (“ExOne” or “the Company”), a global provider of three-dimensional (“3D”) printing machines and 3D printed and other products, materials and services to industrial customers, reported financial results today for the fourth quarter and year ended December 31, 2016. ExOne continued to see sustained growth in revenue in 2016, up 18% over 2015, driven by the sale of large format indirect machines. Machine revenue grew 36% and non-machine revenue grew 8%. This 2016 full year momentum is underwritten by sales of the Company’s S-Max® machines, which are setting the standard in the industry.Consolidated revenue for the 2016 fourth quarter was down 10%, compared with the prior-year. Machine revenue decreased by $2.1 million, compared with a strong 2015 fourth quarter. Non-machine revenue increased by $0.5 million, or 7%, demonstrating a steady increase in the adoption of our binder jetting technology.“We are pleased with the progress made in 2016, evidenced by solid growth in machine revenue. While expected recognition of revenue on certain machines slipped from the 2016 fourth quarter into 2017, we are not discouraged by the comparison to a strong 2015 fourth quarter. We have made a considerable effort to understand in what stage of adoption our customers are, with respect to our binder jet printing technology, and believe that 2017 marks an inflection point in our evolution. We have customers who were in the early stages of adoption two years ago and are now reaching more advanced stages, as they discover that our equipment can bring sustainable and differential value to their businesses. This encourages us about our potential for growth,” stated Jim McCarley, ExOne’s Chief Executive Officer.Fourth Quarter Operations – Lower Machine Revenue Impacts ResultsThe decrease in 2016 gross profit was driven by lower machine sales, with the 2015 fourth quarter margin demonstrating a more favorable mix.Higher operating loss in the 2016 fourth quarter was impacted by lower gross profit and higher selling, general and administrative (“SG&A”) expenses. SG&A expenses increased by $0.4 million to $5.5 million primarily due to the inclusion of bad debt recoveries in 2015 that did not recur in 2016. R&D expenses of $2.1 million for the quarter were comparable with the prior year’s quarter.Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, decreased to a $0.7 million loss in the 2016 fourth quarter, compared with $0.8 million in last year’s fourth quarter. ExOne management believes that, when used in conjunction with other measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), Adjusted EBITDA assists in the understanding of its financial results. See the attached tables for important disclosures regarding the Company’s use of Adjusted EBITDA as well as a reconciliation of net loss (most directly comparable GAAP measure) to Adjusted EBITDA for the quarters and years ended December 31, 2016 and 2015.2016 Review – Improved Operating LeverageGross profit and gross margin for 2016 significantly improved compared with the prior year. 2016 was driven by higher volume, especially large, indirect machine sales, and improved efficiencies. As previously noted, 2015 included costs associated with the Company’s expanded global facilities integration as well as its European ERP system implementation. Operating loss for 2016 improved compared with 2015 due to higher gross profit and lower SG&A expenses, as well as the impact of a $4.4 million goodwill impairment charge recorded in 2015. SG&A for 2016 was $20.7 million, down $1.8 million, or 8%, compared with 2015 primarily due to reduced professional, consulting and trade show expenses resulting from cost containment initiatives. R&D expense was $7.8 million in 2016 compared with $7.3 million in 2015, with the increase reflecting project-related material costs supporting continued product enhancements.Adjusted EBITDA improved to a $7.3 million loss in 2016, compared with a $14.6 million loss last year. ExOne management believes that, when used in conjunction with other measures prepared in accordance with GAAP, Adjusted EBITDA, a non-GAAP measure, assists in the understanding of its financial results. See the attached tables for important disclosures regarding the Company’s use of Adjusted EBITDA as well as a reconciliation of net loss to Adjusted EBITDA for the quarters and years ended December 31, 2016 and 2015.Capitalization – Cash Usage Continues to be StableUnrestricted cash and cash equivalents as of December 31, 2016 were $27.8 million, down from $29.8 million at September 30, 2016 and up from $19.3 million at December 31, 2015. Cash used for operations was $2.7 million for 2016 compared with $10.7 million for 2015, with the improvement driven by better operating performance and working capital utilization. Cash capital expenditures were $1.3 million for 2016 compared with $4.9 million for 2015.Outlook and VisionMr. McCarley noted, “We believe our addressable market is expanding based on ExOne’s increased equipment and material capabilities that support a higher level of adoption across our customer base and their markets.” He concluded, “Our outlook is positive for 2017. Although we will continue to have fluctuations in quarter-to-quarter revenue and profitability comparisons, our expected annual sales growth is at least 25%, which will result in operating leverage, stable cash flow and working capital utilization, and positive Adjusted EBITDA experienced by year end. Looking beyond 2017, we believe that continuing our investment in equipment capability and material qualification, coupled with applying our enhanced commercial management and tools, ExOne can achieve long-term sustained year-over-year revenue growth rates that exceed 25% for the foreseeable future.”Given the long sales cycle and significance of a machine’s average selling price relative to total revenue, fluctuations in machine-sale revenue vary from quarter to quarter. ExOne does not believe that such quarter-to-quarter fluctuations are necessarily indicative of larger trends.Webcast and Conference CallExOne will host a conference call and live webcast on Friday, March 17 at 8:30 a.m. Eastern Time. During the conference call and webcast, management will review the financial and operating results for the 2016 fourth quarter and full year, along with ExOne’s corporate strategies and outlook. A question-and-answer session will follow. The teleconference can be accessed by calling (201) 689-8470. The webcast can be monitored on the Company’s website at www.investor.exone.com/.A telephonic replay of the conference call will be available from 11:30 a.m. ET on the day of the teleconference through Friday, March 24, 2017. To listen to a replay of the call, dial (412) 317-6671 and enter the conference ID number 13653300, or access the webcast replay via the Company’s website, where a transcript will also be posted once available.About ExOneExOne is a global provider of 3D printing machines and 3D printed and other products, materials and services to industrial customers. ExOne’s business primarily consists of manufacturing and selling 3D printing machines and printing products to specification for its customers using its installed base of 3D printing machines. ExOne’s machines serve direct and indirect applications. Direct printing produces a component; indirect printing makes a tool to produce a component. ExOne offers pre-production collaboration and print products for customers through its network of ExOne Adoption Centers (EACs) and Production Service Centers (PSCs). ExOne also supplies the associated materials, including consumables and replacement parts, and other services, including training and technical support that is necessary for purchasers of its 3D printing machines to print products. The Company believes that its ability to print in a variety of industrial materials, as well as its industry-leading volumetric output (as measured by build box size and printing speed) uniquely position ExOne to serve the needs of industrial customers.Safe Harbor Regarding Forward Looking StatementsThis news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the Company’s future financial or business performance, strategies, or expectations. Forward-looking statements typically are identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” as well as similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could” and “may.”The Company cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.In addition to risk factors previously disclosed in the Company’s reports, the following factors, among others, could cause results to differ materially from forward-looking statements or historical performance: the Company’s ability to enhance its current three-dimensional (“3D”) printing machines and technology and develop new 3D printing machines; its ability to qualify more industrial materials in which it can print; timing and length of sales of 3D printing machines; demand for ExOne products; the Company’s ability to achieve cost savings through consolidation or exiting of certain North American operations; the impact of increases in operating expenses and expenses relating to proposed investments and alliances; the availability of skilled personnel; the impact of market conditions and other factors on the carrying value of long-lived assets; the Company’s competitive environment and its competitive position; the Company’s ability to continue as a going concern; individual customer contractual requirements; the impact of customer specific terms in machine sale agreements on the period in which the Company recognizes revenue; the impact of loss of key management; risks related to global operations including effects of foreign currency and risks related to the situation in the Ukraine and the United Kingdom’s referendum to withdraw from the European Union; demand for aerospace, automotive, heavy equipment, energy/oil/gas and other industrial products; the Company’s plans regarding increased international operations in additional international locations; the scope, nature or impact of alliances and strategic investments and the Company’s ability to integrate strategic investments; sufficiency of funds for required capital expenditures, working capital, and debt service; the adequacy of sources of liquidity; the effect of litigation, contingencies and warranty claims; liabilities under laws and regulations protecting the environment; the impact of governmental laws and regulations; operating hazards, war, terrorism and cancellation or unavailability of insurance coverage; the impact of disruption of our manufacturing facilities, production service centers or ExOne adoption centers; the adequacy of the Company’s protection of its intellectual property; expectations regarding demand for the Company’s industrial products, operating revenues, operating and maintenance expenses, insurance expenses and deductibles, interest expenses, debt levels, and other matters with regard to outlook; and material weaknesses in the Company’s internal control over financial reporting.These and other important factors, including those discussed in the Company’s Annual Report on Form 10-K, may cause its actual results of operations to differ materially from any future results of operations expressed or implied by the forward-looking statements contained herein. Before making a decision to purchase ExOne common stock, you should carefully consider all of the factors identified in its Annual Report on Form 10-K that could cause actual results to differ from these forward-looking statements.FINANCIAL TABLES FOLLOW.