ExOne (XONE) 14 Mar 192018 Q4 Earnings call transcript

Greetings and welcome to The ExOne Company's Fourth Quarter and Full Year 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] please note this conference is being recorded. I'll now turn the conference over to your host Karen Howard, Investor Relations for ExOne. Ms. begin. may you Howard,

today line Hartner, deck Kent John Rockwell, our [ph], for the morning, Financial Operating Chief full our conference our financial Sherry your year Officer We time and on Zemba, are results Executive slide Officer to Referring today fourth call. our Treasurer. Slide Chairman Chief Chief and presenters; me you, with X, Officer; our our everyone. and good Doug appreciate XXXX on Thank quarter and and

In Senior Development addition the the in printing around and President is He's remind joined this Vice with John XX I'll for the with in automation, world electronics calls Since ExOne you [Indiscernible] background. Smith, led participate is some Brian technology our earnings his industries. digital years of his in November. companies us Corporate and Q&A. first Hartner may of

and lead businesses almost his International. in career, he lived and Technologies with industrial technology worked and of Rockwell has Europe. Asia including Corporation, FMC variety For John Dover roles half a

that for and experience of his to the he you sense brings So breadth that ExOne. depth a gives

release that Now published Doug will results John, back in at and the reviewing the the to Kent, be morning. business hand. distributed press this were

On available X don't have our website. that posted is our If statement. accompany you www.exone.com. our Harbor release, on Slide slides also at our on that it's Safe The website discussion are today

filed to risks uncertainties today. where apply company uncertainties today's some future useful that, as want and aware, from factors www.sec.gov. make which during presentation be we may are documents in forward-looking evaluating by be factors call, subject website Q&A. in discuss earnings the may performance. some may and documents are we point actual These on and believe could will Exchange measures, as are out cause other These as to events and non-GAAP during found the to our to during at are you other statements I release as results with also can that Commission. Securities financial the statements also differ the As well our and that These other provided well or we we risks this

the substitute consider or results accordance information with prepared not additional in should isolation of as presentation this for You GAAP. a in

questions to have comparable We us on answers. will call provided will Kent get outlook release. my through in the and John pleasure tables before it's we the And results. our Doug go reconciliations to that, of earnings will of provide And accompanying turn with measures GAAP line to today's then the perspective non-GAAP detailed open started, the review begin. financial for up to over a Kent

over XX% had in that here. on was had slide. is of this we a anticipated even I'm that I'll pleased performance record just bit though million revenue little $XX.X an year. and than prior brief to which subsequent We morning welcome minute the reviewing off you, Doug, that of press everybody that of Thank details a release time to not to more Karen. the and good some QX for spend going going earlier by so start too because hear from I'm you'll of increase address growth annualized less I'm lot put that we've going the be on with that out review. a And I'm our much highlights today. just

effective Our our aligned in the We substantially. the second that half XXXX performances about getting we move think had that we've year in been of cost the into very cost initiatives and talked I our as global XXXX. previously improved

three-year and growth healthy the XX%. we've improvement a Our for gross quarter profit which is got a up XX% year there, prior rate us over is

Hartner up making our bring John future speed is new growth coming going you this online and We touch John and that. funding and to exciting that materials more and will some to in developments initiatives to on to continue invest it. also is on are productive But in key machines

XX% we - also in On minute so the that up goals going mark. just the We next transactions. what do to a complete the on that good we're quarter our would in sales, good provided do be on again said we to against a here on QX both slide, execution to I XX% expectations. With revenues. in then prior revenues, said wanted we and to said and actuality, units by and just increasing of go XXX% we machine present on to we I in post our list back touch units not far we that I'll results of anticipated few for under that would consider and In depend execution, our these our and too and off increased part customers respect

our we again, our very that executed selling the were thought said million. the and record we first fashion you're - when In In a and done we I spend deliver scheme said spent the in in fine in expensed. get cash were would in the machines that pleased any we less flow, going number to and large in other and million of bigger quarter had positive bit for million, in miss we had didn't quite XXXX QX. the $X the expectations that does get $X cash with developments, reasons not way for of little $X that of customers until we think of we couple touch slight and flow of that not come had and you pieces that requirements we some didn't cash be that what - get some just $X.X things of Net units moved results chunks a were was We this move minute. we million were one million, our a on than or sufficient to make unused capital I'll well. of new as speed up of that all availability ExOne bring that credit R&D of look exceeded machine line will the don't machines is to as takes at the quarter we the planned in change current completely of going which meet our of a that so XX I significant It to consider that to they income. reserves have in. on Doug details spending, they and at the done the I XXXX. deferrals believe point, we $XX of objectives two be this I to into anything the When income only

think top without - sacrificing the growth line I this Finally significant, very of profitability. and is

measured gross is best profitability margin. Our by our

what Our struck see a as gross of to volumes margin that machines bring to higher adoption. very and more shows get I margin XX.X% and better hit power earning on and new think capability, the our we that's more we strong

point in to because next to the in get just shipped were our that customers had about recognition. wanted processes, The place. the ready, I talking On not large would that slide, customers revenue financing just machines. fallen completed were did these both place they had XX%, them. and the their been two did achieved not out growth because but we XX% If factory, their closer We two were we're have international those machines XX% to we at machines funding had customers we accepted

some in because was won the that small paper Government get We those machines of delayed that still not [indiscernible] have four to the all have processing through, and closed didn't and machine lose we going XXXX that we be closed of still subsequently US but customer the customers have a us these did still in and anticipations though are year. closed we're that work of XXXX and had all with would

and we a difference didn't a makes in anything. total the few lose and machines huge just So percentages

machine, of So the it's of try we almost total so as size environment function business the to have and versus here. just the funding the differences the measures

growth and has competitors we may the and investments have volume cost But Our much is you become years in wouldn't now technology most as It effective per ExOne jetting this know just printers. was and jetting process. the and polymer in it right relevant other recognized the technology. this direction such production plastic jetting as what E-beams electric perspective, technology beams all marketplace. making gained competitors that. stress see not printing large HP, [ph] of is binder the GE, from the maturing binder of ago moving recognition talking binder we is subset process pleased a all and does still been like as in I'm have today Desktop There The five is about XD a the me large

and it ExOne and that holds validation effectively I where of think in grow. all continues believe in this probably position market rather field strong we've as of a I capable very to proprietary this a that competing along been we're it's headed

this and more is developed. more and As expands technology applications customers, and used more being more are by being

body so one market diverse molds for printing beyond users we're certain of indirect It see growth size with Our opportunity of the may even global and that looking printing. case, at tremendous to we're there's extend machines for starting now sand and the mould applications. the

going the this a more to demand do applications and at a working few lot things. this in going that years doing work a the our major materials process in be discuss continuing all we to prefer the to global and opinion, is you of opportunity, to of technology over to tell viable customers not area many markets In have customers to good exceed it there that users. to more some of supply have is collaboration [indiscernible] to still We're innovative A universe applies. that lot our and of my I for this confidential So so the as on. these with we're this rate. grow which next keep But growing for is of continue leaders they're to for

that to speak We John our latest this will that market. with positioned more good well machines in is penetration market designs to subject. and achieve global on touch to going growing are

to Doug take [indiscernible]. over So the I'm let and going John

Ken. everyone. Thanks morning, Good

start If million Revenue XX QX, in record was XXXX you could a $XX.X XX% and QX, up please Slide turn XXXX. we'll compared revenue. to to to with

as achieved year over we record XXXX. mentioned reflecting $XX.X Kent XX% the of For revenue growth million

for and we revenue of our machine full year that represented strong our very You revenue quarter a for can had XXXX. revenue of which see fourth quarter XX% XX%

go let's to XX. Now Slide

our $XX Here you quarter to XX% sales to were million machine fourth QX, XXXX. compare that see up can

last finished significant XX% the million year $XX.X the We in As fourth growth quarter reflecting over sales with XXXX. of machine we quarter. expected indicated we growth

will if to machine can sales. Now XX, Slide unit we review we turn

the disclosing but relevant, longer machines the the different You'll notice maybe reached that indirect from informative. size this We better is breakdown breakdown specific disclosure. our and no believe type past is where we've more machine direct

such components as parts print As and directly our our metal a reminder, platforms. M-Flex and include direct machines INNOVENT+

sand S-Max Our include print and indirect and tools molds machines such core our platforms. S-Print and

a the indirect our XXXX. sold systems, We value. selling machines machines larger quarter over fourth are Our XXXX representing generally footprint XX% higher QX, systems achieve increase XX average in such

XXXX more fourth indirect we higher quarter, machines. Our machines fourth XXXX our the indirect larger toward direct quarter weighted between value our platforms. and evenly and split were In were heavily

As sales sales printing you by transition fine our XX production driven see, which technology true customers the machine time fine were foundry fine were for customer printing. sales globally. were represents and can new next the a first operating fourth we're INNOVENT+ quarter to powder have our XX, printers machine, were announced XX and printing their indirect XX over to a our printer machine purposes The customers scalable have experience direct INNOVENT+ to sold our last and units Included XXPRO. purchased XX investing of a that the customers. doubled this The the in this seventh machines from machines machine machine XXPRO our powder customer our we the of sales experienced year's demonstrate of eighth powder in two represented of our machine. where quarter. interest These significant

at purchase from unit now machines industrial recently customer energy. unit us of aerospace, during us we XXXX one addition, intent during to the we're our the excited same general, their our has and ninth each sold ordered In and they least their in Industries additional the quarter primary targets. year. included into communicated to that Automotive,

including research We machines applications. further research development and own institution to other material development educational their to industrial also for activities seeking and advance and sold

significant year increase full machines, a Again unit XX XX in sales over we by last XXXX the you XXXX. the sold year machines over increase direct to For in XX% grew our see XX% INNOVENT+. XXXX, in led which

to fourth the Non-machine million XX% in Now year's let's last XXXX revenue compared turn down to was Slide quarter fourth $X.X of XX. quarter.

For the grew million. to X% $XX.X revenue year non-machine

of of by with quarter in These fourth the attributed projects partially associated a orders of revenues in declines Our to from on Texas increases exit the volume Houston, were based installed impact the quarter. customer facility decline and our executed customer timing our printing base growing third lower aftermarket is machines. offset

similar Houston which from the and impacts with from from machining machine - a XXXX operation our described I converted and Michigan. as our For previously the comparison relationship to is in our operation printing team year, exit Sweden former of our special exits

cost leverage cost on to portion Slide was sold. volume the The fourth better significant of about the XX, gross well we'll XX.X% sales goods reduction margin improvement fixed quarter our of in gross $XX.X as Turning for margin over of margin. XXXX. the in for was as XX% gross by fourth profit to driven increase million and talk resulting XXXX, operating profit quarter Gross a

year, gross since was XXXX. ongoing well gross of the initiative as from higher million being XXXX. XX.X% margin that other by from cost $XX.X early activities increase we of realignment The XX.X% restructuring profit and a realized XXXX are revenue up our and as driven For global benefits in

related machines from to higher which expenses realignment Additionally, net XXXX, decrease SG&A. resulting sale global Slide or margin fourth cost not Please the inventory disposals lower Exerial equipment comparing and discuss $XXX,XXX in program. obsolescence XXXX of we'll down contribution our repeat property the year our XX principally from charges, and The XXXX XXXX. approximately due turn quarter to to and employee a SG&A gains did was X%. breakeven last were of included at cost

global year decrease to or expense by employee half cost by XX% to cost, related lower primarily and in first reduced employee X% from year, and primarily R&D. amortization compared For decreased the SG&A offset based resulting cost. second The of in the XXXX was reflects the resulted in reduction million realignment or and partially our equity $XX.X to were full the our $X the program cost half which million in we'll XXXX related quarter. global turn lower the decrease of program. Please in realignment due quarter compensation $XXX,XXX or the XX% higher enactment fourth The XXXX fourth investment XXXX following of discuss approximate Slide XX the decrease an with consulting sales.

binder on While a not this has advancing jetting we've the reduced technologies. had cost impact corresponding development of

spending recall You million approximately did in early more to in we than $X million on $X anticipated may XXXX, we R&D in XXXX.

initiative. planned However, realignment effective part global much a of cost more spending on setting is we our our XXXX could determined that critical in manner. We our undertake activities cost R&D

R&D reflect preceding the initiative. For dollars that XXXX year, our cost higher investments

finished turn We quarter you'll if $XX the on by backlog XX our review Slide the of the to with execution. impacted recorded year fourth backlog. significant million Now I'll in in revenue excess total based

from In reduce from customers. XXXX includes average our is backlog includes backlog on contracts the more portion as we're in see orders seven execution as compared order defense favorable we've additional execute machine communicated and and seeing the we've includes and contractual Year-to-date, printing operating our XXXX, agreements. we to to to as our balances our drives backlog The our revenue To turn of an firm As two globally other our XXXX. direct lease more age in this non-machine orders services believe you, time committed sale. of XXXX non-cancellable machine orders XXXX our we've the contracts It reduced indirect basis. half also landed remind historical from first of orders to normalized to well and significantly at a Backlog We the and as Improved such during base. maintenance as execution customer quickly. of firmly down focused backlog operations missile machine we higher activity. our backlog been representative machine continued months to which contract. is past, million agency as orders expect order weighted ship of our our on on have improving recognized compared

customer the strengthen to our We confidence of in pipeline. continue have

to Now Slide please to let's turn review CapEx. XX

Our pace. cash at modest a continued CapEx has

Our the machinery approximately CapEx year of inventory consistent PP&E transfer at through pertains portion to principally XXXX PP&E cash to into $XXX,XXX. here with for The with our sales development our activity $X.X fourth from direct spending was indirect non-cash using and for from ended or commercial in support of fourth own at million leasing in cash quarter our transfers printing quarter the shown for CapEx. R&D customer operations, footnote, Noted customers. We the inventory opportunities.

$X estimate XXXX, cash approximately to million to ahead we million. of CapEx Looking $X

XX, a cash two XXXX our flows split of Slide to waterfall represents Turning sections. this chart into

first on year with the cash year the you second the and is the first I won't is right. But half flows previously, The review reiterate on half reviewed left it. half I half now. Since the I'll second

our You'll significantly the cash first. of about $X.X half during second notice Working cash inventory our the the from the I customers slide. of in lower timing in was half than investment on resulted that and year a of last of changes capital support CapEx by collections growth. million in impacted cash mentioned use to usage and the the

year net of in cash with and million $X the million half non-cash total other $X.X income, of the and of in second we Our cash. items generated year ended net the

the you'll and of $XX.X If we of consisting into you'll our $XX turn March of put place facility our we XXXX. end see XXXX credit to million of liquidity which XXXX, the of and total At cash had liquidity. XXXX. million cash equivalents and $X.X Slide At XX, end million unrestricted in

I'll That and to outstanding. my it debt no over now John. prepared We continue to concludes have turn virtually comments

positive to the pleased to jetting like metal first excellent laser. my markets printing have binder and market my to always methodologies seen a including opportunity ExOne's positioning range imaging compared outlook of exposure of in our I've XD insights the With technology into Thanks for [indiscernible] Good printing space. the everybody. share Doug. to industrial background older I'm morning, digital wide scalability

to be Roland I'm market. environments. that share XD could and job can although a if real So fast XX. bit jetting chart in comparing consultant the further excited I Page you of use. our of range applications influence emphasize was I This to a extracted that, To of want detailed for broader of technologies where the printing manufacturing well-known in growing ExOne part development turn a binder a great to independent the adapted does metal a Berger into

many As technologies sintering in This that's ExOne the are metal is shown left of can today's to Laser right The referred depicted lion far have of in in one the technology column. Fusion in whose parameters several Binder Bed And top rapidly most of laser growing been I the used the far Jetting aware, the world wanted you're key is rows. across there chart. printing of the and the the they're market well-known capabilities and commonly XD four Powder column. share with highlight you recent over to then see the by and years. listed

you binder match has rapidly in and second Manufacturing the many the is parameters. and exceed row readiness can in jetting for see attained been readiness First the progressing for manufacturing of sintering. time degree laser varying of industries

have many applications waiting as XD for materials. breadth in this a Second; and access the been these has machine. advantage volume to a experience jetting we've for a for industry with been gives for value printing each technology. high of row us our Notice binder have list on materials We you'll so seen key broadest as see the that that view of This ExOne, solution. many materials used long high applications real

focus what's that, is an binder We a believe to I of capabilities here. properties. better have believe that this to yellow our comers. a that Regarding Having shown We said next enhance area R&D of mark companies view and we material new group noticed you on authors chart material therefore including group check we the area jetting properties, column. are this of the forefront where this the based than continue to our are several

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have who a Given our of jetting. others in compared real world machines binder for very working experience applications good position currently years we and developing are we to XD believe

the let's metal sets, more of go continuing jetting make proprietary achieved in with strength opportunities our XX, we've binders the the growing than expand. us binder which of our is material continue points. higher range our wanted on technology few to the or Slide quality to currently ExOne's sales of ceramics machine and sets position to marketplace. rapidly consists believe together seen Material on Now the with past. print a We presenting the I and value in powders

customers with result attractive such technology it will ongoing are This looking high of performance they and know predict new We our but will work on open opportunities. turn will it our when are the those new in we customers. incorporating engaging at orders can't serving happen, contracts. DOD our We the in based market and as new into range with

opened the at of new favorable Another jetting to ROIs table capital arrive applications. Continue our and increasing decisions. up which the ownership new for binder helping bringing them is many improvement of cost trend investment the to customers

Finally cast of and metal core components. regarding sand printing indirect XD molds for

mold behind. Also the that the Our or early this are on industry customer casting growing beyond way is rate we left Companies adopters. the need risk they and believe board is to getting realizing is jump that our expanding customer wings back, at large These growth opportunities long-term contributing our in the to interest newly market. casting become market are and another very our prospects. growing the similar our could technology making developed factors

current XX. Slide specifically year. I'll our focus talk can if for turn Now this to more you about

between help new new application need concept accelerate will customer the speed of validation and many the We time of cycle customer our order. turn the used we'll our for on This to scalability sales. technology. cases First focus in reducing to our

With to continue cost to improvements to our we marketplace. perspective, structure a efficiently, the that manner still but to new in our meaningful more technology. Secondly, our machine approaching From performance. speed in with of November, this announced quality, half newest on XX focus the powder the for We our fine shipments lots excitement set XXPRO production beta the we're and we aggressive year. and continue deliver research machine there's machine means in advance second of expected

machine of On for details a the we side, to in announce Show the stay indirect so have Foundry June. number GIFA to new in at exciting out advancements Germany, tuned come

believe As base emphasizing awareness. is new about for We're customers. always all broad and With to materials investments installed make our our the XX's jetting we research brand buzz greater real time persists. technology, capabilities binder in the on successful now

I'm do jetting binder our We done successful. base parts line about includes bottom them a really has volatility. the serving help more the to be example, which even previously recurring and An customers largest passionate at expanding area metal better services top the same those ExOne of reduce world. For building growth to of revenue in And only with our our consumables, area installed help known job US. metal XD the a is, in job time printing was direct need line great business. building promotions globally and the

ExOne and and a sintering. provider success. focus our relationships in solution and solution We drives suppliers and being both ecosystem other close developing ecosystem for believe focus customer players powder software, downstream. printing best-in-class collaboration with on Finally and and our the attention co-operate increased will overall delivers best our this to with upstream experts with

I'll goals review financial and XXXX if you'll Slide for specific Now beyond. to XX. turn our

you will at faster it's given but our we know, our pipeline in the in confident XXXX mid-teens customer that strong of actions, than and we grow feel As to growth expect timing predict range. revenues customer difficult this time

know to be However we revenues that lumpy continue quarter-to-quarter.

of delivery indirect quarter timing by be first due our timing that below quarter We first the expect to XXXX customers. our some our XXXX of modestly is will machines, directed

I our first as second activity in well we think at half half, and customer second our currently XX\XX is confidence an that positive while also we'll in However with quarter history. moments execution the split in the EBITDA which few consistent XXXX R&D We growing ago. our From in machine backlog spoke us continue our prudence give order adjusted about a fiscal our half. pipeline maintaining anticipate pretty as standpoint, our estimate achieving second and revenue total, investments

In to our In recurring cost intend our the revenue grow further our penetration addition base. growth, headwind been revenue profitability a to had revenue. machine the structure we against installed our base past, expanding into by in non-machine

During XXXX we revenue costs. that improved the stream by fixed removing profitability of

Going structure this focus. will anticipate and forward, our with we tailwind be a revised

by binder To broadening we XXXX, revenue include applications Finally reiterate, several expanding jetting, as beyond ahead initiatives. our rates look at enabled we growth anticipate increasing over next the by these years driven growing our our growth. And sake. We and simply is now base profitable positioned and we're our growth achieve to not growth revenue focus range our leverage platform for cost recurring base. machine believe,

again, profitable remarks. that growth. me my Let That prepared say concludes

Now for open the lines up questions. let's

Van with B. Horn Please first FBR. Chris from with proceed your question. [Operator question Instructions] is Riley our

could growth give I you pass XXXX Thanks. how cadence about the guidance, it on we perspective? if similar little from just XXXX when of how you a in rate kind was about detail on looks a of then we you like hoping saw what see profitability, think XXXX? more relative would And a terms to do a think look that

mid-teens machine mentioned against first with commentary half. on this second it's answer exceed within those I first us second as But looking We're that, we we're prior. quarter indicated the going so historical to is my company numbers. a somewhere numbers. as that so We're XXXX. XX/XX the in orders for measures XXXX thinking That think as of patterns in to and sort half shortfall hit lot bring split half, of XXXX John for the range we're referenced Doug I'll to against - for that think we back mid-teens This Chris. year-on-year Hi, relative and thinking we're John XX% just

of Okay would look how of XXXX similar terms out, with kind plays then those in to it and along revenues? profitability

I to as and that million the Yes gross a side. plus the profitability way look fourth look quarter if at profit you good think $XX on you look at at we base, hit XX% revenue

Yes.

for That's a quality high us.

feel we quality of the So XX%. good the pretty about

lot then, for seems timing great. to initiatives, it it like seems just the savings a on And and we cost you've success if there. maybe like be beyond? XXXX there all congratulations about Okay, when quantify curious could think and the could more It of come the identified you and or

We be Kent, very of We things level in Chris. achieved get in effort able obviously, the to is into cleaning we put that a this to obviously to XXXX profitability QX. up extensive

we job still to some to able company so we're spend And effect a that, be you're we've good have think for going a growth of futures. so to and growing able to pretty and to done be

we'll it. there cost to to continue that rid non-recurrent out that but get to going say I'm So of we're pursue left a there's stuff not lot initiatives, going is

another going and It's much that the as grow, in it's in the of more took out - company of we we'll to costs take investments $X the we make start the - it's to same level. million of some that's not to at just not think productive cost be out I more cost. that

specific adoption then, from general, board. than sense. hearing makes that kind markets of ramping. market is And you adoption aerospace, aggressive Okay, from technology we additive it of end more Are kind industrial, The talk to, the various of end any is across automotive. quicker whether thought or either is we're is it's you or that hearing

John, why don't you that? answer

growing metal able applications printing. board. of within said high captured for what's the while obviously phases jetting scaling XD lot there additive, a imagination responses and across production possibility this that who're binder it's certainly We're is I and for positive value bring my short life a the is it of number from a We're it been that getting say but production, be and in working believe the to early as I customers seems script, of of the serial on online. I'd in possible has we'll

And it. then got me. Okay, from lastly

there the in be like business the the any it sort what is tailwind aftermarket with you. a I as getting is early, bigger, commentary non-machine probably in more the aftermarket know that the aftermarket. is, the - is from then, revenue investments base is out called of installed all it kind of made looked growing still and You've to trajectory you around for side but how it's like

Yes, so this is John.

As It's I and businesses the lot base time is said spent critical, I've very aftermarket a recurring is revenue symbiotic. critical. installed of

and making by service increase was their those think more have who have and rate the additional some changes. output better we customers XXXX serve growth a consumables impacted in structural But across stream in successful, investments or rate can that, the that we increasing mentioned we're see our world future. customers some as corresponding drive in across and growth had ensure And We that are revenue in and we more we it etc. to growth machine machines we the the of Doug platforms.

your for time. much Okay, you great. so Thank

with [Operator Instructions] proceed. Canaccord question our Jed is Dorsheimer next Genuity. Please from

in Jed. Colbert Steve actually It's for

at that? there. Looking the out larger or But seeing new and direct touched some the we that about on landscape interest from think Is guess competitive folks I should the you're and side both this. you indirect the on

Steve. business something is we in Kent, position The to have the and casting is This other competitors that market and a strong sand we we've foundry done we fairly think what indirect that market. in good not site have

future All is the the metals. of in

Yes.

the into get really level. that powder And we the down now for mass that at fine it's and down we'll market are powder capability go taken time to level that to to provide adoption

so and are future obviously many the of and fine players new the my going or going will one that particular speed applications it's market level be But that supply. - other not at we're really other one - it's start so to in applications - machine. There that you and I've as kind about the one feel about and a said will thing, the machines are on of what There's of all materials. many specifics to perception. large we cases. adoption. And so attracted some know is guys what print of powder now big get claims business making machines not to this and There's that depending opportunities exceed And don't can disadvantaged the have the be, variety just to so demand is,

now addressed market. seeing a we're it accelerate viably metals is becoming So because

Thanks. printers saying a in you getting helpful. then, Okay, the printers smaller fine talk to will were see still I larger you just that's about gateway powder. if maybe getting to drill to just bit down and placed. etc. orders INNOVENT+ And you on as Can the cadence do of the guess you

John.

are being in the XX in great Steve. and what future. seen their platform we from industry to is see for INNOVENT for The within interested within and adoption customers is future, continued our early our their with a is Thanks the levels the the platforms production scaling continue those in we to very thing for all customers demand the growth that experience similar nice + we've us really XX of growing get that The overtime, past. see with encouraging way

the least At Yes. said as INNOVENT to available. a move that have want to the of majority its they larger soon buyers platform as of

feel a we and positive put one reasons we we did. in that's INNOVENT So the out the of sign form that the that's

you. I Thank then finally guess great. And me. for Okay,

a little more out. just, If just seeing maybe mentioned we bit If what could there in coming new you or the Thanks the be promotions. future color you guys. might give

sure. Yes,

up great with for But Again buzz opportunities the we're people have many creating and marketing creating So from and some that's stepping there in industry we definitely us. our jetting history. in has are awareness binder brand a investing new XX long side. tailwinds and

our we business, leverage sand including but growing with that printing the history rapidly metal want total of our side. more to business our Sometimes portion direct very associated

us world. binder lot that player brand that globe. think in of projecting more geographies also have very it's say across spent critical would of I the number would I apply a as Secondly XX I've around the global jetting to in we in premier the in being our time and a

Good.

[ph] next [indiscernible] Please Fields Our proceed. capital. from is question

bit very concern to your out have growth. if you a in short still that there a raise talk position fund you could guys high facility. the about There's wondering I equity stock your and credit little And was a I to will think there's

are ability facility? what company's that on facility to the there and access Specifically, limitations that is the any on rate

address Doug let I'll it that, biased sounded [ph].

you details collateralized refer to I that and filings and conditions certain historical March, all facility credit our the is for the described and the available by that company. of it's terms the Sure. for assets use through XXXX

as However rate end interest no so as the The we prevailing available liquidity, of the need of view X.X%. was we as year it, major it of source is restrictions. an

very thanks much. Okay,

orders haven't requirements The XXX% sits - there on money It we so do funded. in we point takes this just the a change could all customer it's mean to we're has I this since bank cash get function is to into a been of few drawn at flow. anytime, anytime and had that our deposits coming any with only we available really and it did season. - the that be

the and where more comfortable that to capital. can in if we I'm So plans could and our to if find that go capital we we meet sufficient capital is the effectively. opportunities believe apply change I market market, have, see plans we

the We about don't I sense. do we're think And any if time, made we sense point that. it. stressed it, So of seen in this at way it would haven't in

Great, thank you very much.

Ladies I turn gentlemen, session. closing call question-and-answer of over remarks. reached to our like the end and to the for would back we've management

will the XXXX your this and we've store in all moving the future got to our very furthered. our We're to Thanks future. about and and be we excited XXXX about structure and continue Kent direction a forward be cost for a here development are that. continuing for it areas examined attention again. and year in for what has We beyond morning interest ExOne. the think excited good think This We're at is your company and

remember to this coming as to the XXXX, to really got full though it's trying look at year later you this at middle even in year. have hit basis really in developments develop. online to don't couple annualized the see in we here years got machine to But business, where this You until they're for us

in So we attention. and your thank updating again you again you look forward May to for

you. the conference. Thank This concludes

participation. for may you You thank lines this time and your disconnect your at