Proto Labs, Inc. (PRLB) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Thank you for attending this virtual meeting. I'm Vicki Holt, President, Chief Executive Officer and a director of Proto Labs, and it's my pleasure to welcome you all to our 2020 Annual Meeting of Shareholders. Thank you for joining us today. It's approximately 8:30 a.m. Central Time, and in accordance with the notice of the meeting and at the request of our Chairman, I call this meeting to order. I would like to introduce the other directors of the company who are in attendance and logged into this virtual meeting. Archie Black, Sujeet Chand, Moonhie Chin, Rainer Gawlick, John Goodman, Sven Wehrwein and Don Krantz. Also in attendance is John Way, the company's Chief Financial Officer, who the company has duly appointed as the inspector of election for today's meeting. March 24, 2020 was designated as the record date for this meeting. A notice of annual meeting and proxy statements were mailed to shareholders of record in advance of the meeting and an affidavit of mailing will be included in the minutes of today's meeting. The holders of at least a majority of the shares common stock outstanding on the record date and entitled to vote at this meeting are represented here today. Accordingly, a ballot quorum is present. Additionally, stockholders may ask questions electronically during the meeting by submitting questions in the field provided in the web portal. Questions received during the meeting related to the matters for shareholder vote will be addressed before the polls are closed for voting. General questions regarding the company will be addressed following an adjournment of the formal business of the annual meeting. The first item to be considered is the election of 8 directors each to serve until the election of directors at the 2021 Annual Meeting of Shareholders. The Board of Directors has nominated Archie Black, Sujeet Chand, Moonhie Chin, Rainer Gawlick, John Goodman, Don Krantz, Sven Wehrwein and me as directors and recommends a vote in favor of electing each of them. The second item is the ratification of the selection of Ernst & Young LLP as the company's independent registered public accounting firm for the current fiscal year that began on January 1, 2020, and will end on December 31, 2020. The Audit Committee of the Board of Directors has appointed Ernst & Young, and the Board recommends a vote in favor of ratifying such appointment. The third item is a vote on an advisory basis to approve the compensation of Proto Labs' officers, disclosed in the proxy statement for this meeting. The Board recommends a vote in favor of approving such compensation. The fourth and final item of business is a vote on an advisory basis on the frequency of future votes to approve the compensation of Proto Labs' officers. The Board recommends a vote of 1 year on this item. The polls are now open for voting on the terms properly brought for consideration at today's meeting. For shareholders voting online, please log in as a shareholder on the web portal and vote now. If you have previously returned a proxy, you do not need to do anything at this time. We will now pause for voting. [Voting]

The inspector of election has advised me that the preliminary tabulation of the votes cast in today's meeting is complete, and I'm pleased to announce the following results. Proposal 1, the election of 8 director nominees has been approved by the requisite vote of shareholders. Proposal 2, the ratification of the selection of Ernst & Young LLP as the company's independent registered public accounting firm for 2020 has been approved by the requisite vote of the shareholders. Proposal 3, the advisory vote to approve the compensation of Proto Labs' officers disclosed in the proxy statement for this meeting has been approved by the shareholders. Proposal 4, the shareholders have recommended that future advisory vote to approve the compensation of Proto Labs' officers be held every year. The exact vote totals will be certified by the inspector of election and incorporated in the minutes of today's meeting. Thank you for your participation. This concludes today's meeting. Thank you. Thank you for joining our meeting today. We will now address shareholder questions. Where we received similar questions on the same topic, we've grouped them together.

We see only one question, and the question is the status of the rapid manufacturing acquisition and with general business plan as it regards the focus of rapid prototyping versus quick turn, small-scale manufacturing. We continue to incorporate the rapid manufacturing acquisition. We've actually recently branded the business all Proto Labs. So the rapid manufacturing brand is no longer part of the offering. The expanded CNC business is really incorporated in our overall CNC business and not separated. And the Sheet Metal business continues to be a valuable service to which our customers take advantage of as part of their rapid prototyping and low-volume production. So thank you for the question. This concludes today's meeting. I want to thank everybody for joining. There are no further questions.