LAKE MARY, Fla., July 28, 2021 /PRNewswire/ -- FARO® (Nasdaq:
FARO), a global leader of 3D measurement, imaging, and realization
solutions for the 3D Metrology, AEC (Architecture, Engineering
& Construction), and Public Safety Analytics markets, today
announced its financial results for the second quarter ended
June 30, 2021.
"Second quarter demand reflected a return to seasonal growth,
with broad based improvement across our served markets," stated
Michael Burger, President and Chief
Executive Officer. "While demand recovers, we remain focused on
creating opportunities to drive topline growth such as the
expansion of our Digital Twin offering through the addition of
Holobuilder's photogrammetry capabilities and our recently
announced next generation Quantum Max ScanArm family of products,
as well as further streamlining our operational cost structure with
the recently announced shift to outsourced manufacturing."
Mr. Burger continued, "Through the combination of strategic
initiatives implemented over the last two years and the investments
we continue to make in our hardware, software and solution
offerings to directly address our customer's workflow needs, we
believe we are well positioned to drive strong operating leverage
and long-term differentiation as the market grows."
Second Quarter 2021 Financial Summary
Total sales were
$82.1 million for second quarter 2021
representing an 8% sequential quarterly increase when compared to
$76.3 million in the first quarter
2021, and a 36% increase when compared with total sales of
$60.6 million for second quarter
2020. The sequential sales increase represents typical market
seasonality while the year over year growth was primarily a result
of pandemic related softness in the prior year period.
Similarly, new order bookings of $88.2
million increased 9% sequentially compared to $80.6 million in the first quarter 2021 and
increased 44% when compared to $61.4
million for the second quarter 2020.
Gross margin was 55.4% for the second quarter 2021, as compared
to 47.7% for the same prior year period. Non-GAAP gross margin was
55.7% for the second quarter 2021 compared to 48.4% for the second
quarter 2020. The annual increase in gross margin was primarily a
result of higher volume compared to the prior year period.
Operating expenses were $46.1
million for the second quarter 2021, compared to
$40.9 million for the same prior year
period. Non-GAAP operating expenses were $41.8 million for the second quarter 2021
compared to $37.7 million for the
second quarter 2020.
Net loss was $1.2 million, or
$0.06 per share, for the second
quarter 2021, as compared to a net loss of $8.9 million, or $0.50 per share, for the second quarter 2020.
Non-GAAP net income was $2.2 million,
or $0.12 per share, for the second
quarter 2021 compared to Non-GAAP net loss of $6.3 million, or $0.36 per share, for the second quarter
2020.
Adjusted EBITDA was $6.5 million,
or 7.9% of Non-GAAP total sales, for the second quarter of 2021
compared to Adjusted EBITDA of negative $5.0
million, or 8.2% of Non-GAAP total sales, for the second
quarter of 2020.
The Company's cash and short-term investments decreased
$36.6 million to $133.3 million as of the end of the second
quarter of 2021, primarily due to the $34
million acquisition of HoloBuilder which closed in the
quarter. The Company remained debt-free.
* A reconciliation of the non-GAAP financial measures to the
most directly comparable GAAP financial measures is provided in the
financial schedules portion at the end of this press release. An
additional explanation of these measures is included below under
the heading "Non-GAAP Financial Measures".
Conference Call
The Company will host a conference
call to discuss these results on Thursday,
July 29, 2021 at 8:00 a.m. ET.
Interested parties can access the conference call by dialing (877)
876-9176 (U.S.) or +1 (785) 424-1669 (International) and using the
passcode FARO. A live webcast will be available in the Investor
Relations section of FARO's website at:
https://www.faro.com/about-faro/investor-relations/events
A replay webcast will be available in the Investor Relations
section of the company's web site approximately two hours after the
conclusion of the call and will remain available for approximately
30 calendar days.
About FARO
For 40 years, FARO has provided
industry-leading technology solutions that enable customers to
quickly and easily measure their world, and then use that data to
make smarter decisions faster. FARO continues to be a pioneer in
bridging the digital and physical worlds through data-driven
reliable accuracy, precision and immediacy. For more information,
visit http://www.faro.com
Non-GAAP Financial Measures
This press release
contains information about our financial results that are not
presented in accordance with U.S. generally accepted accounting
principles ("GAAP"). These non-GAAP financial measures, including
non-GAAP total sales, non-GAAP gross profit, non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP income (loss) from
operations, non-GAAP other expense (income), net, non-GAAP net
income (loss) and non-GAAP net income (loss) per share, exclude the
GSA sales adjustment (as defined in the tables below), the impact
of purchase accounting intangible amortization expense, stock-based
compensation, imputed interest expense recorded related to the GSA
Matter, restructuring charges, and other tax adjustments, and are
provided to enhance investors' overall understanding of our
historical operations and financial performance.
In addition, we present Adjusted EBITDA, which is calculated as
net loss before interest expense, net, income tax benefit and
depreciation and amortization, excluding other expense (income),
net, stock-based compensation, the GSA sales adjustment, and
restructuring charges, as measures of our operating profitability.
The most directly comparable GAAP measure to Adjusted EBITDA is net
loss. We also present Adjusted EBITDA margin, which is calculated
as Adjusted EBITDA as a percent of Non-GAAP total
sales.
Management believes that these non-GAAP financial measures
provide investors with relevant period-to-period comparisons of our
core operations using the same methodology that management employs
in its review of the Company's operating results. These financial
measures are not recognized terms under GAAP and should not be
considered in isolation or as a substitute for a measure of
financial performance prepared in accordance with GAAP.
These non-GAAP financial measures have limitations that should
be considered before using these measures to evaluate a company's
financial performance. These non-GAAP financial measures, as
presented, may not be comparable to similarly titled measures of
other companies due to varying methods of calculation. The
financial statement tables that accompany this press release
include a reconciliation of these non-GAAP financial measures to
the most directly comparable GAAP financial measures.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
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 demand for and customer
acceptance of FARO's products, FARO's product development and
product launches, the anticipated benefits of FARO's acquisition of
Holobuilder, FARO's growth, strategic and restructuring plans and
initiatives, including but not limited to the additional
restructuring charges expected to be incurred in connection with
our restructuring plan and the timing and amount of cost savings
and other benefits expected to be realized from the restructuring
plan and other strategic initiatives, and FARO's growth potential
and profitability. 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 "is," "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:
- the Company's ability to realize the intended benefits of its
undertaking to transition to a company that is reorganized around
functions to improve the efficiency of its sales organization and
to improve operational effectiveness;
- the Company's ability to successfully integrate the acquired
Holobuilder business, operations, assets and personnel;
- the Company's inability to successfully execute its new
strategic plan and restructuring plan, including but not limited to
additional impairment charges and/or higher than expected severance
costs and exit costs, and its inability to realize the expected
benefits of such plans;
- the Company's inability to realize the anticipated benefits of
its partnership with Sanmina and to successfully transition its
manufacturing operations to Sanmina's production facility;
- the Company's potential loss of future government sales and
potential impacts on customer and supplier relationships and on the
Company's reputation that may result from the GSA matter;
- development by others of new or improved products, processes or
technologies that make the Company's products less competitive or
obsolete;
- the Company's inability to maintain its technological advantage
by developing new products and enhancing its existing
products;
- 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
financial conditions;
- the effect of the COVID-19 pandemic, including on our business
operations, as well as its impact on general economic and financial
market conditions;
- the impact of fluctuations in foreign exchange rates; 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, 2020 that was filed on
February 17, 2021.
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.
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
(in thousands, except
share and per share data)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
Sales
|
|
|
|
|
|
|
|
Product
|
$
|
60,275
|
|
|
$
|
42,259
|
|
|
$
|
114,910
|
|
|
$
|
98,784
|
|
Service
|
21,835
|
|
|
18,305
|
|
|
43,531
|
|
|
41,295
|
|
Total sales
|
82,110
|
|
|
60,564
|
|
|
158,441
|
|
|
140,079
|
|
Cost of
Sales
|
|
|
|
|
|
|
|
Product
|
25,455
|
|
|
21,333
|
|
|
50,259
|
|
|
44,399
|
|
Service
|
11,173
|
|
|
10,335
|
|
|
22,293
|
|
|
22,911
|
|
Total cost of
sales
|
36,628
|
|
|
31,668
|
|
|
72,552
|
|
|
67,310
|
|
Gross
Profit
|
45,482
|
|
|
28,896
|
|
|
85,889
|
|
|
72,769
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
33,594
|
|
|
30,036
|
|
|
66,942
|
|
|
66,360
|
|
Research and
development
|
11,760
|
|
|
10,186
|
|
|
23,733
|
|
|
20,601
|
|
Restructuring
costs
|
779
|
|
|
636
|
|
|
2,303
|
|
|
14,324
|
|
Total operating
expenses
|
46,133
|
|
|
40,858
|
|
|
92,978
|
|
|
101,285
|
|
Loss from
operations
|
(651)
|
|
|
(11,962)
|
|
|
(7,089)
|
|
|
(28,516)
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest expense,
net
|
39
|
|
|
212
|
|
|
49
|
|
|
246
|
|
Other expense
(income), net
|
883
|
|
|
117
|
|
|
(732)
|
|
|
590
|
|
Loss before income
tax benefit
|
(1,573)
|
|
|
(12,291)
|
|
|
(6,406)
|
|
|
(29,352)
|
|
Income tax
benefit
|
(397)
|
|
|
(3,359)
|
|
|
(2,009)
|
|
|
(5,597)
|
|
Net loss
|
$
|
(1,176)
|
|
|
$
|
(8,932)
|
|
|
$
|
(4,397)
|
|
|
$
|
(23,755)
|
|
Net loss per share -
Basic
|
$
|
(0.06)
|
|
|
$
|
(0.50)
|
|
|
$
|
(0.24)
|
|
|
$
|
(1.34)
|
|
Net loss per share -
Diluted
|
$
|
(0.06)
|
|
|
$
|
(0.50)
|
|
|
$
|
(0.24)
|
|
|
$
|
(1.34)
|
|
Weighted average
shares - Basic
|
18,161,110
|
|
|
17,747,739
|
|
|
18,133,368
|
|
|
17,710,014
|
|
Weighted average
shares - Diluted
|
18,161,110
|
|
|
17,747,739
|
|
|
18,133,368
|
|
|
17,710,014
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except
share and per share data)
|
June 30, 2021
(unaudited)
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
133,337
|
|
|
$
|
185,633
|
|
Accounts receivable,
net
|
59,966
|
|
|
64,616
|
|
Inventories,
net
|
51,433
|
|
|
47,391
|
|
Prepaid expenses and
other current assets
|
26,978
|
|
|
26,295
|
|
Total current
assets
|
271,714
|
|
|
323,935
|
|
Non-current
assets:
|
|
|
|
Property, plant and
equipment, net
|
21,578
|
|
|
23,091
|
|
Operating lease
right-of-use assets
|
23,356
|
|
|
26,107
|
|
Goodwill
|
81,702
|
|
|
57,541
|
|
Intangible assets,
net
|
24,252
|
|
|
13,301
|
|
Service and sales
demonstration inventory, net
|
31,477
|
|
|
31,831
|
|
Deferred income tax
assets, net
|
47,251
|
|
|
47,450
|
|
Other long-term
assets
|
2,251
|
|
|
2,336
|
|
Total
assets
|
$
|
503,581
|
|
|
$
|
525,592
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
14,115
|
|
|
$
|
14,121
|
|
Accrued
liabilities
|
28,255
|
|
|
42,593
|
|
Income taxes
payable
|
1,166
|
|
|
3,442
|
|
Current portion of
unearned service revenues
|
40,098
|
|
|
39,149
|
|
Customer
deposits
|
4,496
|
|
|
2,807
|
|
Lease
liabilities
|
5,235
|
|
|
5,835
|
|
Total current
liabilities
|
93,365
|
|
|
107,947
|
|
Unearned service
revenues - less current portion
|
21,885
|
|
|
21,757
|
|
Lease liabilities -
less current portion
|
19,962
|
|
|
22,131
|
|
Deferred income tax
liabilities
|
674
|
|
|
787
|
|
Income taxes payable
- less current portion
|
9,250
|
|
|
11,583
|
|
Other long-term
liabilities
|
1,083
|
|
|
1,084
|
|
Total
liabilities
|
146,219
|
|
|
165,289
|
|
Shareholders'
equity:
|
|
|
|
Common stock - par
value $.001, 50,000,000 shares authorized; 19,557,240 and
19,384,350 issued, respectively; 18,174,873 and 17,990,707
outstanding, respectively
|
20
|
|
|
19
|
|
Additional paid-in
capital
|
294,490
|
|
|
287,979
|
|
Retained
earnings
|
109,111
|
|
|
113,508
|
|
Accumulated other
comprehensive loss
|
(15,467)
|
|
|
(10,160)
|
|
Common stock in
treasury, at cost; 1,382,367 and 1,393,643 shares,
respectively
|
(30,792)
|
|
|
(31,043)
|
|
Total shareholders'
equity
|
357,362
|
|
|
360,303
|
|
Total liabilities and
shareholders' equity
|
$
|
503,581
|
|
|
$
|
525,592
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
Six Months
Ended
|
(in
thousands)
|
June 30,
2021
|
|
June 30,
2020
|
Cash flows
from:
|
|
|
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(4,397)
|
|
|
$
|
(23,755)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
6,289
|
|
|
7,209
|
|
Stock-based
compensation
|
5,377
|
|
|
4,345
|
|
Provisions for bad
debts, net of recoveries
|
(43)
|
|
|
680
|
|
Loss on disposal of
assets
|
86
|
|
|
299
|
|
Provision for excess
and obsolete inventory
|
1,640
|
|
|
479
|
|
Deferred income tax
benefit
|
(2,009)
|
|
|
(2,404)
|
|
Change in operating
assets and liabilities:
|
|
|
|
Decrease (Increase)
in:
|
|
|
|
Accounts
receivable
|
3,964
|
|
|
26,180
|
|
Inventories
|
(7,495)
|
|
|
892
|
|
Prepaid expenses and
other current assets
|
(982)
|
|
|
11,347
|
|
(Decrease) Increase
in:
|
|
|
|
Accounts payable and
accrued liabilities
|
(13,525)
|
|
|
(1,395)
|
|
Income taxes
payable
|
(2,310)
|
|
|
(5,058)
|
|
Customer
deposits
|
1,723
|
|
|
384
|
|
Unearned service
revenues
|
(627)
|
|
|
(3,139)
|
|
Net cash (used in)
provided by operating activities
|
(12,309)
|
|
|
16,064
|
|
Investing
activities:
|
|
|
|
Purchases of property
and equipment
|
(2,072)
|
|
|
(1,533)
|
|
Proceeds from asset
sales
|
—
|
|
|
643
|
|
Proceeds from sale of
investments
|
—
|
|
|
25,000
|
|
Payments for
intangible assets
|
(1,780)
|
|
|
(673)
|
|
Acquisition of
business, net of cash acquired
|
(33,908)
|
|
|
—
|
|
Net cash (used in)
provided by investing activities
|
(37,760)
|
|
|
23,437
|
|
Financing
activities:
|
|
|
|
Payments on finance
leases
|
(167)
|
|
|
(160)
|
|
Payments for taxes
related to net share settlement of equity awards
|
(3,779)
|
|
|
(2,409)
|
|
Proceeds from issuance
of stock related to stock option exercises
|
5,165
|
|
|
3,854
|
|
Net cash provided by
financing activities
|
1,219
|
|
|
1,285
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(3,446)
|
|
|
(720)
|
|
(Decrease) Increase
in cash and cash equivalents
|
(52,296)
|
|
|
40,066
|
|
Cash and cash
equivalents, beginning of period
|
185,633
|
|
|
133,634
|
|
Cash and cash
equivalents, end of period
|
$
|
133,337
|
|
|
$
|
173,700
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP
(UNAUDITED)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
(dollars in
thousands, except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Total sales, as
reported
|
$
|
82,110
|
|
|
$
|
60,564
|
|
|
$
|
158,441
|
|
|
$
|
140,079
|
|
GSA sales adjustment
(1)
|
—
|
|
|
608
|
|
|
—
|
|
|
608
|
|
Non-GAAP total
sales
|
$
|
82,110
|
|
|
$
|
61,172
|
|
|
$
|
158,441
|
|
|
$
|
140,687
|
|
|
|
|
|
|
|
|
|
Gross profit, as
reported
|
$
|
45,482
|
|
|
$
|
28,896
|
|
|
$
|
85,889
|
|
|
$
|
72,769
|
|
GSA sales adjustment
(1)
|
—
|
|
|
608
|
|
|
—
|
|
|
608
|
|
Stock-based
compensation (2)
|
214
|
|
|
93
|
|
|
280
|
|
|
364
|
|
Non-GAAP adjustments
to gross profit
|
214
|
|
|
701
|
|
|
280
|
|
|
972
|
|
Non-GAAP gross
profit
|
$
|
45,696
|
|
|
$
|
29,597
|
|
|
$
|
86,169
|
|
|
$
|
73,741
|
|
Gross margin, as
reported
|
55.4
|
%
|
|
47.7
|
%
|
|
54.2
|
%
|
|
51.9
|
%
|
Non-GAAP gross
margin
|
55.7
|
%
|
|
48.4
|
%
|
|
54.4
|
%
|
|
52.4
|
%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative, as reported
|
$
|
33,594
|
|
|
$
|
30,036
|
|
|
$
|
66,942
|
|
|
$
|
66,360
|
|
Stock-based
compensation (2)
|
(2,526)
|
|
|
(1,617)
|
|
|
(4,208)
|
|
|
(3,140)
|
|
Purchase accounting
intangible amortization
|
(188)
|
|
|
(120)
|
|
|
(373)
|
|
|
(244)
|
|
Non-GAAP selling,
general and administrative
|
$
|
30,880
|
|
|
$
|
28,299
|
|
|
$
|
62,361
|
|
|
$
|
62,976
|
|
|
|
|
|
|
|
|
|
Research and
development, as reported
|
$
|
11,760
|
|
|
$
|
10,186
|
|
|
$
|
23,733
|
|
|
$
|
20,601
|
|
Stock-based
compensation (2)
|
(543)
|
|
|
(459)
|
|
|
(889)
|
|
|
(841)
|
|
Purchase accounting
intangible amortization
|
(313)
|
|
|
(327)
|
|
|
(641)
|
|
|
(728)
|
|
Non-GAAP research and
development
|
$
|
10,904
|
|
|
$
|
9,400
|
|
|
$
|
22,203
|
|
|
$
|
19,032
|
|
|
|
|
|
|
|
|
|
Operating expenses,
as reported
|
$
|
46,133
|
|
|
$
|
40,858
|
|
|
$
|
92,978
|
|
|
$
|
101,285
|
|
Stock-based
compensation (2)
|
(3,069)
|
|
|
(2,076)
|
|
|
(5,097)
|
|
|
(3,981)
|
|
Restructuring costs
(3)
|
(779)
|
|
|
(636)
|
|
|
(2,303)
|
|
|
(14,324)
|
|
Purchase accounting
intangible amortization
|
(501)
|
|
|
(447)
|
|
|
(1,014)
|
|
|
(972)
|
|
Non-GAAP adjustments
to operating expenses
|
(4,349)
|
|
|
(3,159)
|
|
|
(8,414)
|
|
|
(19,277)
|
|
Non-GAAP operating
expenses
|
$
|
41,784
|
|
|
$
|
37,699
|
|
|
$
|
84,564
|
|
|
$
|
82,008
|
|
|
|
|
|
|
|
|
|
Loss from operations,
as reported
|
$
|
(651)
|
|
|
$
|
(11,962)
|
|
|
$
|
(7,089)
|
|
|
$
|
(28,516)
|
|
Non-GAAP adjustments
to gross profit
|
214
|
|
|
701
|
|
|
280
|
|
|
972
|
|
Non-GAAP adjustments
to operating expenses
|
4,349
|
|
|
3,159
|
|
|
8,414
|
|
|
19,277
|
|
Non-GAAP income
(loss) from operations
|
$
|
3,912
|
|
|
$
|
(8,102)
|
|
|
$
|
1,605
|
|
|
$
|
(8,267)
|
|
|
|
|
|
|
|
|
|
Other expense
(income), net, as reported
|
$
|
922
|
|
|
$
|
329
|
|
|
$
|
(683)
|
|
|
$
|
836
|
|
Interest expense
increase due to GSA sales adjustment (1)
|
—
|
|
|
(249)
|
|
|
—
|
|
|
(398)
|
|
Non-GAAP adjustments
to other expense (income), net
|
—
|
|
|
(249)
|
|
|
—
|
|
|
(398)
|
|
Non-GAAP other
expense (income), net
|
$
|
922
|
|
|
$
|
80
|
|
|
$
|
(683)
|
|
|
$
|
438
|
|
|
|
|
|
|
|
|
|
Net loss, as
reported
|
$
|
(1,176)
|
|
|
$
|
(8,932)
|
|
|
$
|
(4,397)
|
|
|
$
|
(23,755)
|
|
Non-GAAP adjustments
to gross profit
|
214
|
|
|
701
|
|
|
280
|
|
|
972
|
|
Non-GAAP adjustments
to operating expenses
|
4,349
|
|
|
3,159
|
|
|
8,414
|
|
|
19,277
|
|
Non-GAAP adjustments
to other (income) expense, net
|
—
|
|
|
249
|
|
|
—
|
|
|
398
|
|
Income tax effect of
non-GAAP adjustments
|
(1,144)
|
|
|
(1,505)
|
|
|
(2,622)
|
|
|
(3,638)
|
|
Non-GAAP net income
(loss)
|
$
|
2,243
|
|
|
$
|
(6,328)
|
|
|
$
|
1,675
|
|
|
$
|
(6,746)
|
|
|
|
|
|
|
|
|
|
Net loss per share -
Diluted, as reported
|
$
|
(0.06)
|
|
|
$
|
(0.50)
|
|
|
$
|
(0.24)
|
|
|
$
|
(1.34)
|
|
GSA sales adjustment
(1)
|
—
|
|
|
0.03
|
|
|
—
|
|
|
0.03
|
|
Stock-based
compensation (2)
|
0.18
|
|
|
0.12
|
|
|
0.30
|
|
|
0.24
|
|
Restructuring costs
(3)
|
0.04
|
|
|
0.04
|
|
|
0.13
|
|
|
0.82
|
|
Purchase accounting
intangible amortization
|
0.02
|
|
|
0.03
|
|
|
0.05
|
|
|
0.06
|
|
Interest expense
increase due to GSA sales adjustment (1)
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.02
|
|
Income tax effect of
non-GAAP adjustments
|
(0.06)
|
|
|
(0.09)
|
|
|
(0.15)
|
|
|
(0.21)
|
|
Non-GAAP net income
(loss) per share - Diluted
|
$
|
0.12
|
|
|
$
|
(0.36)
|
|
|
$
|
0.09
|
|
|
$
|
(0.38)
|
|
|
(1) Late
in the fourth quarter of 2018, during an internal review we
preliminarily determined that certain of our pricing practices may
have resulted in the U.S. Government being overcharged under our
General Services Administration ("GSA") Federal Supply Schedule
contracts (the "Contracts") (the "GSA Matter"). During the six
months ended June 30, 2020, we reduced our total sales by $0.6
million (the "GSA sales adjustment") and recorded imputed interest
expense of $0.2 million related to the GSA Matter. Effective
as of February 25, 2021, as a result of the review, we entered into
a settlement agreement with the GSA and have paid in full and final
satisfaction of any and all claims, causes of actions, appeals and
the like, including damages, costs, attorney's fees and interest
arising under or related to the GSA Matter.
|
(2) We
exclude stock-based compensation, which is non-cash, from the
non-GAAP financial measures because the Company believes that such
exclusion provides a better comparison of results of ongoing
operations for current and future periods with such results from
past periods.
|
(3) On
February 14, 2020, our Board of Directors approved a global
restructuring plan (the "Restructuring Plan"), which is intended to
support our strategic plan in an effort to improve operating
performance and ensure that we are appropriately structured and
resourced to deliver increased and sustainable value to our
shareholders and customers. In connection with the Restructuring
Plan, during the first half 2020 and 2021 we recorded a pre-tax
charge of approximately $14.3 million and $2.3 million,
respectively, primarily consisting of severance and related
benefits.
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
RECONCILIATION OF NET
LOSS TO EBITDA AND ADJUSTED EBITDA
(UNAUDITED)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net loss
|
$
|
(1,176)
|
|
|
$
|
(8,932)
|
|
|
$
|
(4,397)
|
|
|
$
|
(23,755)
|
|
Interest expense,
net
|
39
|
|
|
212
|
|
|
49
|
|
|
246
|
|
Income tax
benefit
|
(397)
|
|
|
(3,359)
|
|
|
(2,009)
|
|
|
(5,597)
|
|
Depreciation and
amortization
|
3,099
|
|
|
3,520
|
|
|
6,289
|
|
|
7,279
|
|
EBITDA
|
1,565
|
|
|
(8,559)
|
|
|
(68)
|
|
|
(21,827)
|
|
Other expense
(income), net
|
883
|
|
|
117
|
|
|
(732)
|
|
|
590
|
|
Stock-based
compensation
|
3,283
|
|
|
2,169
|
|
|
5,377
|
|
|
4,345
|
|
GSA sales adjustment
(1)
|
—
|
|
|
608
|
|
|
—
|
|
|
608
|
|
Restructuring costs
(2)
|
779
|
|
|
636
|
|
|
2,303
|
|
|
14,324
|
|
Adjusted
EBITDA
|
$
|
6,510
|
|
|
$
|
(5,029)
|
|
|
$
|
6,880
|
|
|
$
|
(1,960)
|
|
Adjusted EBITDA
margin (3)
|
7.9
|
%
|
|
(8.2)
|
%
|
|
4.3
|
%
|
|
(1.4)
|
%
|
|
(1) Late in the fourth quarter of
2018, during an internal review we preliminarily determined that
certain of our pricing practices may have resulted in the U.S.
Government being overcharged under our General Services
Administration ("GSA") Federal Supply Schedule contracts (the
"Contracts") (the "GSA Matter"). During the six months ended June
30, 2020, we reduced our total sales by $0.6 million (the "GSA
sales adjustment") and recorded imputed interest expense of $0.2
million related to the GSA Matter. Effective as of February
25, 2021, as a result of the review, we entered into a settlement
agreement with the GSA and have paid in full and final satisfaction
of any and all claims, causes of actions, appeals and the like,
including damages, costs, attorney's fees and interest arising
under or related to the GSA Matter
|
(2) On February 14, 2020, our Board
of Directors approved a global restructuring plan (the
"Restructuring Plan"), which is intended to support our strategic
plan in an effort to improve operating performance and ensure that
we are appropriately structured and resourced to deliver increased
and sustainable value to our shareholders and customers. In
connection with the Restructuring Plan, during the first half 2020
and 2021 we recorded a pre-tax charge of approximately
$14.3 million and $2.3 million, respectively, primarily
consisting of severance and related benefits.
|
(3) Calculated as Adjusted EBITDA as
a percentage of Non-GAAP total sales, which adjusts for the GSA
sales adjustment.
|
TECHNOLOGIES, INC.
AND SUBSIDIARIES
SALES DISAGGREGATED
BY GEOGRAPHY
(UNAUDITED)
|
|
|
For the Three Months
Ended June 30,
|
|
For the Six Months
Ended June 30,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Total sales to
external customers
|
|
|
|
|
|
|
|
Americas
(1)
|
$
|
33,702
|
|
|
$
|
25,777
|
|
|
$
|
66,251
|
|
|
$
|
61,367
|
|
EMEA
(1)
|
26,474
|
|
|
16,720
|
|
|
51,928
|
|
|
40,410
|
|
APAC
(1)
|
21,934
|
|
|
18,067
|
|
|
40,262
|
|
|
38,302
|
|
|
$
|
82,110
|
|
|
$
|
60,564
|
|
|
$
|
158,441
|
|
|
$
|
140,079
|
|
|
(1) Regions
represent North America and South America (Americas); Europe, the
Middle East, and Africa (EMEA); and the Asia-Pacific
(APAC).
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/faro-announces-second-quarter-2021-financial-results-301343642.html
SOURCE FARO