LAKE MARY, Fla., Feb. 26,
2014 /PRNewswire/ -- FARO Technologies, Inc. (NASDAQ: FARO)
today announced results for the fourth quarter ended December 31, 2013. Sales in the fourth
quarter of 2013 increased 11.4% to $89.9
million, from $80.7 million in
the fourth quarter of 2012. The Company reported net income
increased to $8.3 million, or
$0.48 per share, in the fourth
quarter of 2013, from $7.8 million,
or $0.46 per share, in the comparable
period in 2012.
Fiscal 2013 sales were $291.8
million, an increase of 6.7% compared with the preceding
year. Net income for fiscal 2013 was $21.5 million compared with $23.0 million in fiscal 2012. Cash flow
from operations for 2013 was $34.3
million, compared to $27.9
million in 2012.
New order bookings for the fourth quarter of 2013 were
$98.6 million, an increase of
$16.5 million, or 20.1%, compared to
$82.1 million in the fourth quarter
of 2012.
Fourth quarter gross margin increased to 54.9%, from 53.4% in
the fourth quarter of 2012. This improvement resulted
from lower manufacturing costs, higher overall pricing primarily
from newly introduced products, and sales mix.
The Company's operating margin for the fourth quarter was 12.6%,
compared with 13.9% in the fourth quarter of 2012, primarily driven
by a planned investment in higher headcount in the sales and
research and development organizations to support greater market
activity and new product development activity in 2014.
"Our top line results in the fourth quarter reflect the outcome
of cutting-edge new product innovation, solid execution across all
Company disciplines, and a modest improvement in the markets we
serve," stated Jay Freeland, FARO's
President & CEO. "We enter 2014 with solid momentum from our
growth in the second half of 2013, a portfolio of new products with
high customer acceptance already in the market, a pipeline of new
product launches planned for 2014, and increased resources deployed
in sales and R&D to capitalize on improving market conditions
and to expand and accelerate product development."
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act
of 1995 that are subject to risks and uncertainties, such as
statements about FARO's growth, demand for and customer
acceptance of FARO's products, anticipated improvement in the
markets in which FARO operates, and FARO's product development and
product launches. Statements that are not historical facts
or that describe the Company's plans, objectives, projections,
expectations, assumptions, strategies, or goals are
forward-looking statements. In addition, words such as
"plan," "will," and similar expressions or discussions of FARO's
plans or other intentions identify forward-looking
statements. Forward-looking statements are not guarantees of
future performance and are subject to various known and unknown
risks, uncertainties, and other factors that may cause
actual results, performances, or achievements to differ materially
from future results, performances, or achievements expressed
or implied by such forward-looking statements. Consequently, undue
reliance should not be placed on these forward-looking
statements.
Factors that could cause actual results to differ materially
from what is expressed or forecasted in such forward-looking
statements include, but are not limited to:
- development by others of new or improved products, processes
or technologies that make the Company's products obsolete or
less competitive;
- the cyclical nature of the industries of the Company's
customers and material adverse changes in customers' access
to liquidity and capital;
- declines or other adverse changes, or lack of improvement,
in industries that the Company serves or the domestic and
international economies in the regions of the world where the
Company operates and other general economic, business, and
financing conditions;
- risks associated with international operations, such as
fluctuations in currency exchange rates, difficulties in
staffing and managing foreign operations, political and economic
instability, compliance with import and export regulations,
and the burdens and potential exposure of complying with a
wide variety of U.S. and foreign laws and labor practices;
and
- other risks detailed in Part I, Item 1A. Risk Factors in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2012.
Forward-looking statements in this release represent the
Company's judgment as of the date of this release. The Company
undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events,
or otherwise, unless otherwise required by law.
About FARO
FARO is the world's most trusted source
for 3D measurement technology. The Company develops and markets
computer-aided measurement and imaging devices and software.
Technology from FARO permits high-precision 3D measurement, imaging
and comparison of parts and complex structures within production
and quality assurance processes. The devices are used for
inspecting components and assemblies, rapid prototyping,
documenting large volume spaces or structures in 3D, surveying and
construction, as well as for investigation and reconstruction of
accident sites or crime scenes.
Approximately 15,000 customers are operating more than 30,000
installations of FARO's systems, worldwide. The Company's global
headquarters is located in Lake Mary,
FL; its European regional headquarters in Stuttgart, Germany; and its Asia/Pacific regional headquarters in
Singapore. FARO has offices in
Brazil, Mexico, United
Kingdom, France,
Spain, Italy, Netherlands, Switzerland, Portugal, India, China,
Malaysia, Vietnam, Thailand, South
Korea and Japan.
More information is available at http://www.faro.com.
|
|
|
|
|
|
|
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except
share data)
|
|
December 31,
2013
|
|
December 31,
2012
|
|
December 31,
2013
|
|
December 31,
2012
|
SALES
|
|
|
|
|
|
|
|
|
Product
|
|
$
76,171
|
|
$
68,775
|
|
$
238,841
|
|
$
227,905
|
Service
|
|
13,724
|
|
11,895
|
|
52,943
|
|
45,490
|
Total
Sales
|
|
89,895
|
|
80,670
|
|
291,784
|
|
273,395
|
COST OF
SALES
|
|
|
|
|
|
|
|
|
Product
|
|
31,998
|
|
30,170
|
|
97,630
|
|
94,103
|
Service
|
|
8,576
|
|
7,431
|
|
32,261
|
|
29,673
|
Total Cost of Sales
(exclusive of depreciation and
amortization, shown separately below)
|
40,574
|
|
37,601
|
|
129,891
|
|
123,776
|
GROSS
PROFIT
|
49,321
|
|
43,069
|
|
161,893
|
|
149,619
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
Selling
|
21,957
|
|
18,413
|
|
71,689
|
|
64,446
|
General and
administrative
|
7,984
|
|
7,037
|
|
30,600
|
|
29,065
|
Depreciation and
amortization
|
1,770
|
|
1,812
|
|
7,038
|
|
6,976
|
Research and
development
|
6,241
|
|
4,580
|
|
22,412
|
|
17,578
|
Total operating
expenses
|
37,952
|
|
31,842
|
|
131,739
|
|
118,065
|
INCOME FROM
OPERATIONS
|
11,369
|
|
11,227
|
|
30,154
|
|
31,554
|
OTHER (INCOME)
EXPENSE
|
|
|
|
|
|
|
|
Interest
income
|
(20)
|
|
(19)
|
|
(74)
|
|
(160)
|
Other expense
(income), net
|
(71)
|
|
529
|
|
1,357
|
|
744
|
Interest
expense
|
6
|
|
6
|
|
9
|
|
28
|
INCOME BEFORE INCOME
TAX EXPENSE
|
11,454
|
|
10,711
|
|
28,862
|
|
30,942
|
INCOME TAX
EXPENSE
|
3,192
|
|
2,870
|
|
7,353
|
|
7,944
|
NET
INCOME
|
$
8,262
|
|
$
7,841
|
|
$
21,509
|
|
$
22,998
|
NET INCOME PER SHARE
- BASIC
|
$
0.48
|
|
$
0.46
|
|
$
1.26
|
|
$
1.36
|
|
|
|
|
|
|
|
|
NET INCOME PER SHARE
- DILUTED
|
$
0.48
|
|
$
0.46
|
|
$
1.25
|
|
$
1.34
|
|
|
|
|
|
|
|
|
Weighted average
shares - Basic
|
17,141,851
|
|
16,966,063
|
|
17,087,104
|
|
16,910,830
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - Diluted
|
17,299,227
|
|
17,074,074
|
|
17,241,115
|
|
17,129,128
|
|
|
|
|
|
|
|
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
(in thousands, except
share data)
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
124,630
|
|
$
93,233
|
Short-term
investments
|
|
64,994
|
|
64,990
|
Accounts receivable,
net
|
|
66,309
|
|
62,559
|
Inventories,
net
|
|
48,940
|
|
48,894
|
Deferred income
taxes, net
|
|
4,601
|
|
7,216
|
Prepaid expenses and
other current assets
|
|
14,645
|
|
11,186
|
Total current
assets
|
|
324,119
|
|
288,078
|
Property and
Equipment:
|
|
|
|
|
Machinery and
equipment
|
|
36,924
|
|
32,236
|
Furniture and
fixtures
|
|
6,888
|
|
6,516
|
Leasehold
improvements
|
|
11,765
|
|
10,897
|
Property and equipment at cost
|
|
55,577
|
|
49,649
|
Less: accumulated
depreciation and amortization
|
|
(39,126)
|
|
(34,305)
|
Property and equipment, net
|
|
16,451
|
|
15,344
|
Goodwill
|
|
19,358
|
|
18,816
|
Intangible assets,
net
|
|
8,112
|
|
7,048
|
Service
inventory
|
|
19,033
|
|
19,125
|
Deferred income
taxes, net
|
|
4,423
|
|
2,396
|
Total
Assets
|
|
$
391,496
|
|
$
350,807
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
14,881
|
|
$
10,413
|
Accrued
liabilities
|
|
20,133
|
|
18,216
|
Income taxes
payable
|
|
1,690
|
|
4,886
|
Current portion of
unearned service revenues
|
|
21,331
|
|
19,460
|
Customer
deposits
|
|
2,910
|
|
2,662
|
Current portion of
obligations under capital leases
|
|
8
|
|
45
|
Total current
liabilities
|
|
60,953
|
|
55,682
|
Unearned service
revenues - less current portion
|
|
13,414
|
|
11,221
|
Deferred income tax
liability, net
|
|
1,171
|
|
1,149
|
Obligations under
capital leases - less current portion
|
|
8
|
|
19
|
Total
Liabilities
|
|
75,546
|
|
68,071
|
Commitments and
contingencies
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
|
Common stock - par
value $.001, 50,000,000 shares authorized; 17,868,372
and 17,653,879 issued; 17,188,137 and 16,973,644 outstanding,
respectively
|
18
|
|
18
|
Additional paid-in
capital
|
|
191,874
|
|
181,094
|
Retained
earnings
|
|
125,867
|
|
104,358
|
Accumulated other
comprehensive income
|
|
7,266
|
|
6,341
|
Common stock in
treasury, at cost - 680,235 shares
|
|
(9,075)
|
|
(9,075)
|
Total Shareholders'
Equity
|
|
315,950
|
|
282,736
|
Total Liabilities and
Shareholders' Equity
|
|
$
391,496
|
|
$
350,807
|
|
|
|
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
|
|
|
|
|
(in
thousands)
|
|
2013
|
|
2012
|
|
2011
|
CASH FLOWS
FROM:
|
|
|
|
|
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
Net
income
|
|
$
21,509
|
|
$ 22,998
|
|
$ 23,377
|
Adjustments to
reconcile net income to net cash provided by
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
7,038
|
|
6,976
|
|
6,712
|
Compensation for
stock options and restricted stock units
|
4,367
|
|
4,018
|
|
2,727
|
Provision for (net
recovery of) bad debts
|
|
1,001
|
|
(23)
|
|
2,169
|
Deferred income tax
expense (benefit)
|
|
645
|
|
(2,016)
|
|
(672)
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
Decrease (increase)
in:
|
|
|
|
|
|
|
Accounts
receivable
|
|
(4,053)
|
|
(4,840)
|
|
(8,979)
|
Inventories,
net
|
|
(119)
|
|
(844)
|
|
(27,329)
|
Prepaid expenses and
other current assets
|
|
(3,346)
|
|
(1,870)
|
|
(1,417)
|
Income tax benefit
from exercise of stock options
|
(969)
|
|
(1,135)
|
|
(1,593)
|
Increase (decrease)
in:
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
6,108
|
|
(3,079)
|
|
4,644
|
Income taxes
payable
|
|
(2,028)
|
|
3,497
|
|
2,998
|
Customer
deposits
|
|
353
|
|
(1,374)
|
|
668
|
Unearned service
revenues
|
|
3,772
|
|
5,565
|
|
5,384
|
Net cash provided by operating activities
|
|
34,278
|
|
27,873
|
|
8,689
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(4,350)
|
|
(3,843)
|
|
(4,474)
|
Payments for
intangible assets
|
|
(2,204)
|
|
(1,361)
|
|
(890)
|
Net cash
used in investing activities
|
|
(6,554)
|
|
(5,204)
|
|
(5,364)
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Payments on capital
leases
|
|
(93)
|
|
(132)
|
|
(163)
|
Income tax benefit
from exercise of stock options
|
|
969
|
|
1,135
|
|
1,593
|
Proceeds from
issuance of stock, net
|
|
5,444
|
|
6,162
|
|
9,150
|
Net cash
provided by financing activities
|
|
6,320
|
|
7,165
|
|
10,580
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
(2,647)
|
|
(1,141)
|
|
(87)
|
|
|
|
|
|
|
|
INCREASE IN
CASH AND CASH EQUIVALENTS
|
|
31,397
|
|
28,693
|
|
13,818
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF YEAR
|
93,233
|
|
64,540
|
|
50,722
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, END OF YEAR
|
$ 124,630
|
|
$ 93,233
|
|
$ 64,540
|
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20110415/MM84316LOGO
SOURCE FARO Technologies, Inc.