EX-99.1 2 d872303dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

3D SYSTEMS CORPORATION

Unaudited Pro Forma Condensed Consolidated Financial Information

On April 1, 2025, 3D Systems Corporation (the “Company”) and 3D Systems, Inc., a wholly-owned subsidiary of the Company (“3D US”), completed its previously announced sale of the Geomagic software business (“Geomagic”) pursuant to the Asset Purchase Agreement between the Company, 3D Systems, Inc. and Hexagon Manufacturing Intelligence, Inc. and the Business Transfer Agreement between 3D Systems Korea, Inc. and Hexagon Metrology Korea LLC, each of which were entered into on December 12, 2024. The Company received $119.4 million in cash, which reflected applicable purchase price adjustments under the Asset Purchase Agreement and Business Transfer Agreement.

At the closing, we entered into a transition services agreement, pursuant to which we will provide certain information technology, accounting, human resources, marketing, operations, facilities and other customary services.

The accompanying unaudited pro forma condensed consolidated balance sheet of the Company is presented as if the Transaction had occurred as of December 31, 2024. The accompanying unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2024 includes certain “Pro Forma Adjustments” to illustrate the estimated effect of the Company’s disposition, as if the Transaction had occurred on January 1, 2024. The amounts included in the “As Reported” columns represent the Company’s historical consolidated balance sheet as of December 31, 2024 and the consolidated statement of operations for the year then ended, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

The accompanying unaudited pro forma condensed consolidated financial statements have been prepared in accordance with Article 11 of Regulation S-X, were derived from the Company’s historical consolidated financial statements, are being presented to give effect to the disposal of Geomagic, and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States. The historical consolidated financial information in the unaudited pro forma condensed consolidated financial statements has been adjusted to give effect to pro forma adjustments that are (i) directly attributable to the Transaction, (ii) factually supportable and (iii) with respect to the unaudited pro forma condensed consolidated statement of operations, expected to have a continuing impact on the results of the Company. The accompanying unaudited pro forma condensed consolidated financial statements do not give effect to any cost savings or operating synergies that may result from the Transaction or the costs to achieve any synergies.

The unaudited pro forma condensed consolidated financial statements have been presented for informational purposes only and are based upon estimates by the Company’s management, which are based upon available information and certain assumptions that the Company’s management believes are reasonable as of the date of this filing. The unaudited pro forma condensed consolidated financial statements are not intended to be indicative of the actual financial position or results of operations that would have been achieved had the Transaction been consummated as of the periods indicated, nor does it purport to indicate results which may be attained in the future. Actual amounts could differ materially from these estimates. These unaudited pro forma condensed consolidated financial statements and the notes thereto should be read in conjunction with the Company’s financial statements for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K filed on March 27, 2025.


3D SYSTEMS CORPORATION

Unaudited Pro Forma Condensed Consolidated Balance Sheet

As of December 31, 2024

 

(in thousands)    As Reported      Pro Forma
Adjustments
    Notes    Pro Forma  

ASSETS

          

Current assets:

          

Cash and cash equivalents

   $ 171,324        119,360     (a)    $ 290,684  

Accounts receivable, net of reserves

     101,471        —           101,471  

Inventories

     118,530        —           118,530  

Prepaid expenses and other current assets

     34,329        (348   (b)      33,981  

Current assets held for sale

     3,176        (3,176   (b)      —   
  

 

 

    

 

 

      

 

 

 

Total current assets

     428,830        115,836          544,666  

Property and equipment, net

     51,044        —           51,044  

Intangible assets, net

     18,020        —           18,020  

Goodwill

     14,879        —           14,879  

Operating lease right-of-use assets

     50,715        —           50,715  

Finance lease right-of-use assets

     8,726        —           8,726  

Long-term deferred income tax assets

     2,063        (175   (c)      1,888  

Other assets

     34,569        —           34,569  
  

 

 

    

 

 

      

 

 

 

Total assets

   $ 608,846      $ 115,661        $ 724,507  
  

 

 

    

 

 

      

 

 

 

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY

          

Current liabilities:

          

Current operating lease liabilities

   $ 9,514      $ —         $ 9,514  

Accounts payable

     41,833        —           41,833  

Accrued and other liabilities

     45,488        1,268     (c)(f)      46,756  

Customer deposits

     4,712        —           4,712  

Deferred revenue

     27,298        —           27,298  

Current liabilities held for sale

     10,251        (10,251   (b)      —   
  

 

 

    

 

 

      

 

 

 

Total current liabilities

     139,096        (8,983        130,113  

Long-term debt, net of deferred financing costs

     211,995        —           211,995  

Long-term operating lease liabilities

     52,527        —           52,527  

Long-term deferred income tax liabilities

     2,076        (766   (c)      1,310  

Other liabilities

     25,001        (16   (b)(f)      24,985  
  

 

 

    

 

 

      

 

 

 

Total liabilities

     430,695        (9,765        420,930  

Commitments and contingencies

          

Redeemable non-controlling interest

     1,958        —           1,958  

Stockholders’ equity:

          

Total stockholders’ equity

     176,193        125,426     (d)      301,619  
  

 

 

    

 

 

      

 

 

 

Total liabilities, redeemable non-controlling interest and stockholders’ equity

   $ 608,846      $ 115,661        $ 724,507  
  

 

 

    

 

 

      

 

 

 


3D SYSTEMS CORPORATION

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2024

 

(in thousands, except per share amounts)    As Reported     Pro Forma
Adjustments
    Notes      Pro Forma  

Revenue:

         

Products

   $ 279,178     $ (15,227     (e)      $ 263,951  

Services

     160,943       (14,048     (e)        146,895  
  

 

 

   

 

 

      

 

 

 

Total revenue

     440,121       (29,275        410,846  

Cost of sales:

         

Products

     175,859       (2,513     (e)        173,346  

Services

     100,084       (2,315     (e)        97,769  
  

 

 

   

 

 

      

 

 

 

Total cost of sales

     275,943       (4,828        271,115  
  

 

 

   

 

 

      

 

 

 

Gross profit

     164,178       (24,447        139,731  

Operating expenses:

         

Selling, general and administrative

     210,132       (7,166     (e)        202,966  

Research and development

     86,479       (4,038     (e)        82,441  

Asset impairment charges

     144,967       —           144,967  
  

 

 

   

 

 

      

 

 

 

Total operating expenses

     441,578       (11,204        430,374  
  

 

 

   

 

 

      

 

 

 

Loss from operations

     (277,400     (13,243        (290,643

Non-operating income (expense):

         

Foreign exchange loss, net

     2,452       (103     (e)        2,349  

Interest income

     7,302       —        (e)        7,302  

Interest expense

     (2,564     —           (2,564

Other (loss) income, net

     20,214       125,426       (d)        145,640  
  

 

 

   

 

 

      

 

 

 

Total non-operating (loss) income

     27,404       125,323          152,727  
  

 

 

   

 

 

      

 

 

 

Loss before income taxes

     (249,996     112,080          (137,916

Benefit (provision) for income taxes

     (2,193     11,197       (c)        9,004  

Loss on equity method investment, net of income taxes

     (3,404     —           (3,404
  

 

 

   

 

 

      

 

 

 

Net loss before redeemable non-controlling interest

     (255,593     123,277          (132,316

Less: net loss attributable to redeemable non-controlling interest

     —        —           —   
  

 

 

   

 

 

      

 

 

 

Net loss attributable to 3D Systems Corporation

   $ (255,593   $ 123,277        $ (132,316
  

 

 

   

 

 

      

 

 

 

Net loss per common share:

         

Basic

   $ (1.94   $ 0.93        $ (1.01
  

 

 

   

 

 

      

 

 

 

Diluted

   $ (1.94   $ 0.93        $ (1.01
  

 

 

   

 

 

      

 

 

 

Weighted average shares outstanding:

         

Basic and Diluted

     131,861       131,861          131,861  


Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

The following items resulted in adjustments in the unaudited pro forma condensed consolidated financial statements:

 

  a.

Adjustment represents cash consideration received from the sale of Geomagic.

 

  b.

Adjustments represent the elimination of assets and liabilities held for sale attributable to Geomagic.

 

  c.

Adjustment represents the estimated decrease in the benefit from income taxes of approximately $11.2 million associated with the sale of Geomagic. $1.4 million represents the estimated income tax effect related to the elimination of Geomagic revenues, costs and expenses set forth in Note (e) and $9.8 million represents the estimated income tax effect related to the gain on sale of Geomagic. The estimated tax effect of pro forma adjustments is calculated at the statutory rate for the respective period adjusted for discrete impacts, including changes in valuation allowances.

 

  d.

Adjustments reflects the preliminary estimated pre-tax gain on sale of Geomagic, calculated at $125.4 million.

The estimated gain on sale of Geomagic is based on the net carrying value of Geomagic as of December 31, 2024 rather than as of the closing date of the Transaction. As a result, the estimated gain reflected herein may differ materially from the actual gain on sale of Geomagic as of the closing date that will be recognized in the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2025.

No adjustment has been made to the sale proceeds to give effect to any potential post-closing purchase price adjustments under the terms of the Purchase Agreements.

 

  e.

Adjustments reflect the elimination of revenues, costs and expenses directly attributable to Geomagic. Adjustments do not include certain general corporate overhead costs previously allocated to Geomagic that will have a continuing effect on the Company post-closing.

 

  f.

Adjustment reflects amounts recorded related to the transition services agreement.