LAKE MARY, Fla., Oct. 27, 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 third quarter ended
September 30, 2021.
"Demand remained strong in the third quarter, while customer
COVID-related logistical challenges shifted some orders into the
fourth quarter," stated Michael
Burger, President and Chief Executive Officer. "As we focus
on the growth drivers ahead, we are encouraged by the customer
response to our new products, namely our next generation Quantum
Max ScanArm and our Holobuilder photogrammetry products which are
on track to double over the next year."
Mr. Burger continued, "Looking ahead, we continue to see strong
fourth quarter demand indicators and as revenue returns to
pre-pandemic levels, we look forward to demonstrating the operating
leverage we have built into the business over the past two
years."
Third Quarter 2021 Financial Summary
Total sales were
$79.2 million for third quarter 2021
representing a 4% sequential quarterly decrease when compared to
$82.1 million in the second quarter
2021, and a 12% increase when compared with total sales of
$70.7 million for third quarter
2020. The sequential sales decrease was driven both by
typical seasonal softness in European markets as well as pandemic
related logistical constraints on behalf of our customers while the
year over year growth was primarily a result of pandemic related
softness in the prior year period. Similarly, new order
bookings of $80.4 million decreased
9% sequentially compared to $88.2
million in the second quarter 2021 and increased 12% when
compared to $72.0 million for the
third quarter 2020.
Gross margin was 53.5% for the third quarter 2021, as compared
to 51.3% for the same prior year period. Non-GAAP gross margin was
53.7% for the third quarter 2021 compared to 51.5% for the third
quarter 2020. The annual increase in gross margin was primarily a
result of higher volume compared to the prior year period.
Operating expenses were $47.5
million for the third quarter 2021, compared to $41.2 million for the same prior year period.
Non-GAAP operating expenses were $42.4
million for the third quarter 2021 compared to $38.5 million for the third quarter 2020.
Net loss was $3.9 million, or
$0.21 per share, for the third
quarter 2021, as compared to a net loss of $3.0 million, or $0.17 per share, for the third quarter 2020.
Non-GAAP net loss was approximately $100
thousand, or $0.01 per share,
for the third quarter 2021 compared to Non-GAAP net loss of
$1.3 million, or $0.08 per share, for the third quarter
2020.
Adjusted EBITDA was $2.7 million,
or 3.4% of Non-GAAP total sales, for the third quarter of 2021
compared to Adjusted EBITDA of approximately $820 thousand, or 1.2% of Non-GAAP total sales,
for the third quarter of 2020.
The Company's cash and short-term investments decreased
$7.5 million to $125.8 million as of the end of the third quarter
of 2021 due primarily to inventory purchases to increase inventory
safety stock levels. 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 Wednesday,
October 27, 2021 at 5:00 p.m.
ET. Interested parties can access the conference call by
dialing (877) 876-9174 (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)
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
Sales
|
|
|
|
|
|
|
|
Product
|
$
|
57,838
|
|
|
$
|
48,082
|
|
|
$
|
172,748
|
|
|
$
|
146,866
|
|
Service
|
21,331
|
|
|
22,654
|
|
|
64,862
|
|
|
63,949
|
|
Total sales
|
79,169
|
|
|
70,736
|
|
|
237,610
|
|
|
210,815
|
|
Cost of
Sales
|
|
|
|
|
|
|
|
Product
|
25,650
|
|
|
22,413
|
|
|
75,909
|
|
|
66,812
|
|
Service
|
11,188
|
|
|
12,025
|
|
|
33,481
|
|
|
34,936
|
|
Total cost of
sales
|
36,838
|
|
|
34,438
|
|
|
109,390
|
|
|
101,748
|
|
Gross
Profit
|
42,331
|
|
|
36,298
|
|
|
128,220
|
|
|
109,067
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
33,433
|
|
|
30,163
|
|
|
100,375
|
|
|
96,523
|
|
Research and
development
|
12,731
|
|
|
10,754
|
|
|
36,464
|
|
|
31,355
|
|
Restructuring
costs
|
1,376
|
|
|
239
|
|
|
3,679
|
|
|
14,563
|
|
Total operating
expenses
|
47,540
|
|
|
41,156
|
|
|
140,518
|
|
|
142,441
|
|
Loss from
operations
|
(5,209)
|
|
|
(4,858)
|
|
|
(12,298)
|
|
|
(33,374)
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest expense,
net
|
5
|
|
|
161
|
|
|
54
|
|
|
407
|
|
Other expense
(income), net
|
299
|
|
|
(256)
|
|
|
(433)
|
|
|
334
|
|
Loss before income
tax benefit
|
(5,513)
|
|
|
(4,763)
|
|
|
(11,919)
|
|
|
(34,115)
|
|
Income tax
benefit
|
(1,658)
|
|
|
(1,739)
|
|
|
(3,667)
|
|
|
(7,336)
|
|
Net loss
|
$
|
(3,855)
|
|
|
$
|
(3,024)
|
|
|
$
|
(8,252)
|
|
|
$
|
(26,779)
|
|
Net loss per share -
Basic
|
$
|
(0.21)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.45)
|
|
|
$
|
(1.51)
|
|
Net loss per share -
Diluted
|
$
|
(0.21)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.45)
|
|
|
$
|
(1.51)
|
|
Weighted average
shares - Basic
|
18,194,960
|
|
|
17,797,390
|
|
|
18,166,930
|
|
|
17,757,359
|
|
Weighted average
shares - Diluted
|
18,194,960
|
|
|
17,797,390
|
|
|
18,166,930
|
|
|
17,757,359
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except
share and per share data)
|
September 30,
2021 (unaudited)
|
|
December
31,
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
125,814
|
|
|
$
|
185,633
|
|
Accounts receivable,
net
|
58,875
|
|
|
64,616
|
|
Inventories,
net
|
55,507
|
|
|
47,391
|
|
Prepaid expenses and
other current assets
|
28,776
|
|
|
26,295
|
|
Total current
assets
|
268,972
|
|
|
323,935
|
|
Non-current
assets:
|
|
|
|
Property, plant and
equipment, net
|
22,576
|
|
|
23,091
|
|
Operating lease
right-of-use assets
|
23,586
|
|
|
26,107
|
|
Goodwill
|
80,873
|
|
|
57,541
|
|
Intangible assets,
net
|
24,714
|
|
|
13,301
|
|
Service and sales
demonstration inventory, net
|
31,025
|
|
|
31,831
|
|
Deferred income tax
assets, net
|
46,700
|
|
|
47,450
|
|
Other long-term
assets
|
2,141
|
|
|
2,336
|
|
Total
assets
|
$
|
500,587
|
|
|
$
|
525,592
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
16,415
|
|
|
$
|
14,121
|
|
Accrued
liabilities
|
26,625
|
|
|
42,593
|
|
Income taxes
payable
|
—
|
|
|
3,442
|
|
Current portion of
unearned service revenues
|
38,555
|
|
|
39,149
|
|
Customer
deposits
|
4,709
|
|
|
2,807
|
|
Lease
liabilities
|
5,630
|
|
|
5,835
|
|
Total current
liabilities
|
91,934
|
|
|
107,947
|
|
Unearned service
revenues - less current portion
|
21,242
|
|
|
21,757
|
|
Lease liabilities -
less current portion
|
19,724
|
|
|
22,131
|
|
Deferred income tax
liabilities
|
595
|
|
|
787
|
|
Income taxes payable
- less current portion
|
9,250
|
|
|
11,583
|
|
Other long-term
liabilities
|
1,071
|
|
|
1,084
|
|
Total
liabilities
|
143,816
|
|
|
165,289
|
|
Shareholders'
equity:
|
|
|
|
Common stock - par
value $.001, 50,000,000 shares authorized; 19,584,783 and
19,384,350 issued, respectively; 18,202,416 and 17,990,707
outstanding, respectively
|
20
|
|
|
19
|
|
Additional paid-in
capital
|
298,082
|
|
|
287,979
|
|
Retained
earnings
|
105,256
|
|
|
113,508
|
|
Accumulated other
comprehensive loss
|
(15,795)
|
|
|
(10,160)
|
|
Common stock in
treasury, at cost; 1,382,367 and 1,393,643 shares,
respectively
|
(30,792)
|
|
|
(31,043)
|
|
Total shareholders'
equity
|
356,771
|
|
|
360,303
|
|
Total liabilities and
shareholders' equity
|
$
|
500,587
|
|
|
$
|
525,592
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
Nine Months
Ended
|
(in
thousands)
|
September 30,
2021
|
|
September 30,
2020
|
Cash flows
from:
|
|
|
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(8,252)
|
|
|
$
|
(26,779)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
9,560
|
|
|
10,631
|
|
Stock-based
compensation
|
8,657
|
|
|
6,428
|
|
Provisions for bad
debts, net of recoveries
|
33
|
|
|
435
|
|
Loss on disposal of
assets
|
130
|
|
|
351
|
|
Provision for excess
and obsolete inventory
|
1,955
|
|
|
778
|
|
Deferred income tax
benefit
|
(3,667)
|
|
|
(4,961)
|
|
Change in operating
assets and liabilities:
|
|
|
|
Decrease (Increase)
in:
|
|
|
|
Accounts
receivable
|
4,311
|
|
|
28,132
|
|
Inventories
|
(9,106)
|
|
|
5,101
|
|
Prepaid expenses and
other current assets
|
(2,935)
|
|
|
9,391
|
|
(Decrease) Increase
in:
|
|
|
|
Accounts payable and
accrued liabilities
|
(14,153)
|
|
|
(10,006)
|
|
Income taxes
payable
|
(1,847)
|
|
|
(6,109)
|
|
Customer
deposits
|
1,966
|
|
|
815
|
|
Unearned service
revenues
|
(2,223)
|
|
|
(3,391)
|
|
Net cash (used in)
provided by operating activities
|
(15,571)
|
|
|
10,816
|
|
Investing
activities:
|
|
|
|
Purchases of property
and equipment
|
(4,845)
|
|
|
(2,833)
|
|
Proceeds from asset
sales
|
—
|
|
|
768
|
|
Proceeds from sale of
investments
|
—
|
|
|
25,000
|
|
Payments for
intangible assets
|
(1,933)
|
|
|
(813)
|
|
Acquisition of
business, net of cash acquired
|
(33,908)
|
|
|
(6,036)
|
|
Net cash (used in)
provided by investing activities
|
(40,686)
|
|
|
16,086
|
|
Financing
activities:
|
|
|
|
Payments on finance
leases
|
(229)
|
|
|
(237)
|
|
Payments for taxes
related to net share settlement of equity awards
|
(4,137)
|
|
|
(2,568)
|
|
Proceeds from issuance
of stock related to stock option exercises
|
5,835
|
|
|
5,384
|
|
Net cash provided by
financing activities
|
1,469
|
|
|
1,846
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(5,031)
|
|
|
1,255
|
|
(Decrease) Increase
in cash and cash equivalents
|
(59,819)
|
|
|
30,003
|
|
Cash and cash
equivalents, beginning of period
|
185,633
|
|
|
133,634
|
|
Cash and cash
equivalents, end of period
|
$
|
125,814
|
|
|
$
|
163,637
|
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP TO NON-GAAP
|
(UNAUDITED)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(dollars in
thousands, except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Total sales, as
reported
|
$
|
79,169
|
|
|
$
|
70,736
|
|
|
$
|
237,610
|
|
|
$
|
210,815
|
|
GSA sales adjustment
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
608
|
|
Non-GAAP total
sales
|
$
|
79,169
|
|
|
$
|
70,736
|
|
|
$
|
237,610
|
|
|
$
|
211,423
|
|
|
|
|
|
|
|
|
|
Gross profit, as
reported
|
$
|
42,331
|
|
|
$
|
36,298
|
|
|
$
|
128,220
|
|
|
$
|
109,067
|
|
GSA sales adjustment
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
608
|
|
Stock-based
compensation (2)
|
190
|
|
|
127
|
|
|
470
|
|
|
491
|
|
Non-GAAP adjustments
to gross profit
|
190
|
|
|
127
|
|
|
470
|
|
|
1,099
|
|
Non-GAAP gross
profit
|
$
|
42,521
|
|
|
$
|
36,425
|
|
|
$
|
128,690
|
|
|
$
|
110,166
|
|
Gross margin, as
reported
|
53.5
|
%
|
|
51.3
|
%
|
|
54.0
|
%
|
|
51.7
|
%
|
Non-GAAP gross
margin
|
53.7
|
%
|
|
51.5
|
%
|
|
54.2
|
%
|
|
52.1
|
%
|
|
|
|
|
|
|
|
|
Selling, general and
administrative, as reported
|
$
|
33,433
|
|
|
$
|
30,163
|
|
|
$
|
100,375
|
|
|
$
|
96,523
|
|
Stock-based
compensation (2)
|
(2,581)
|
|
|
(1,527)
|
|
|
(6,789)
|
|
|
(4,666)
|
|
Purchase accounting
intangible amortization
|
(276)
|
|
|
(127)
|
|
|
(649)
|
|
|
(371)
|
|
Non-GAAP selling,
general and administrative
|
$
|
30,576
|
|
|
$
|
28,509
|
|
|
$
|
92,937
|
|
|
$
|
91,486
|
|
|
|
|
|
|
|
|
|
Research and
development, as reported
|
$
|
12,731
|
|
|
$
|
10,754
|
|
|
$
|
36,464
|
|
|
$
|
31,355
|
|
Stock-based
compensation (2)
|
(509)
|
|
|
(430)
|
|
|
(1,398)
|
|
|
(1,271)
|
|
Purchase accounting
intangible amortization
|
(420)
|
|
|
(366)
|
|
|
(1,061)
|
|
|
(1,094)
|
|
Non-GAAP research and
development
|
$
|
11,802
|
|
|
$
|
9,958
|
|
|
$
|
34,005
|
|
|
$
|
28,990
|
|
|
|
|
|
|
|
|
|
Operating expenses,
as reported
|
$
|
47,540
|
|
|
$
|
41,156
|
|
|
$
|
140,518
|
|
|
$
|
142,441
|
|
Stock-based
compensation (2)
|
(3,090)
|
|
|
(1,957)
|
|
|
(8,187)
|
|
|
(5,937)
|
|
Restructuring costs
(3)
|
(1,376)
|
|
|
(239)
|
|
|
(3,679)
|
|
|
(14,563)
|
|
Purchase accounting
intangible amortization
|
(696)
|
|
|
(493)
|
|
|
(1,710)
|
|
|
(1,465)
|
|
Non-GAAP adjustments
to operating expenses
|
(5,162)
|
|
|
(2,689)
|
|
|
(13,576)
|
|
|
(21,965)
|
|
Non-GAAP operating
expenses
|
$
|
42,378
|
|
|
$
|
38,467
|
|
|
$
|
126,942
|
|
|
$
|
120,476
|
|
|
|
|
|
|
|
|
|
Loss from operations,
as reported
|
$
|
(5,209)
|
|
|
$
|
(4,858)
|
|
|
$
|
(12,298)
|
|
|
$
|
(33,374)
|
|
Non-GAAP adjustments
to gross profit
|
190
|
|
|
127
|
|
|
470
|
|
|
1,099
|
|
Non-GAAP adjustments
to operating expenses
|
5,162
|
|
|
2,689
|
|
|
13,576
|
|
|
21,965
|
|
Non-GAAP income
(loss) from operations
|
$
|
143
|
|
|
$
|
(2,042)
|
|
|
$
|
1,748
|
|
|
$
|
(10,310)
|
|
|
|
|
|
|
|
|
|
Other expense
(income), net, as reported
|
$
|
304
|
|
|
$
|
(95)
|
|
|
$
|
(379)
|
|
|
$
|
741
|
|
Interest expense
increase due to GSA sales adjustment (1)
|
—
|
|
|
(161)
|
|
|
—
|
|
|
(559)
|
|
Non-GAAP adjustments
to other expense (income), net
|
—
|
|
|
(161)
|
|
|
—
|
|
|
(559)
|
|
Non-GAAP other
expense (income), net
|
$
|
304
|
|
|
$
|
(256)
|
|
|
$
|
(379)
|
|
|
$
|
182
|
|
|
|
|
|
|
|
|
|
Net loss, as
reported
|
$
|
(3,855)
|
|
|
$
|
(3,024)
|
|
|
$
|
(8,252)
|
|
|
$
|
(26,779)
|
|
Non-GAAP adjustments
to gross profit
|
190
|
|
|
127
|
|
|
470
|
|
|
1,099
|
|
Non-GAAP adjustments
to operating expenses
|
5,162
|
|
|
2,689
|
|
|
13,576
|
|
|
21,965
|
|
Non-GAAP adjustments
to other expense (income), net
|
—
|
|
|
161
|
|
|
—
|
|
|
559
|
|
Income tax effect of
non-GAAP adjustments
|
(1,619)
|
|
|
(1,292)
|
|
|
(4,241)
|
|
|
(4,930)
|
|
Non-GAAP net (loss)
income
|
$
|
(122)
|
|
|
$
|
(1,339)
|
|
|
$
|
1,553
|
|
|
$
|
(8,086)
|
|
|
|
|
|
|
|
|
|
Net loss per share -
Diluted, as reported
|
$
|
(0.21)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.45)
|
|
|
$
|
(1.51)
|
|
GSA sales adjustment
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Stock-based
compensation (2)
|
0.18
|
|
|
0.12
|
|
|
0.48
|
|
|
0.36
|
|
Restructuring costs
(3)
|
0.07
|
|
|
0.01
|
|
|
0.20
|
|
|
0.82
|
|
Purchase accounting
intangible amortization
|
0.04
|
|
|
0.03
|
|
|
0.09
|
|
|
0.08
|
|
Interest expense
increase due to GSA sales adjustment (1)
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.03
|
|
Income tax effect of
non-GAAP adjustments
|
(0.09)
|
|
|
(0.08)
|
|
|
(0.23)
|
|
|
(0.27)
|
|
Non-GAAP net (loss)
income per share - Diluted
|
$
|
(0.01)
|
|
|
$
|
(0.08)
|
|
|
$
|
0.09
|
|
|
$
|
(0.46)
|
|
|
(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 nine months ended September 30, 2020, we
reduced our total sales by $0.6 million (the "GSA sales
adjustment") and recorded imputed interest expense of $0.6 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 nine months ended September
30, 2021 and September 30, 2020 we recorded a pre-tax charge of
approximately $3.7 million and $14.6 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
September 30,
|
|
Nine Months Ended
September 30,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net loss
|
$
|
(3,855)
|
|
|
$
|
(3,024)
|
|
|
$
|
(8,252)
|
|
|
$
|
(26,779)
|
|
Interest expense,
net
|
5
|
|
|
161
|
|
|
54
|
|
|
407
|
|
Income tax
benefit
|
(1,658)
|
|
|
(1,739)
|
|
|
(3,667)
|
|
|
(7,336)
|
|
Depreciation and
amortization
|
3,271
|
|
|
3,352
|
|
|
9,560
|
|
|
10,631
|
|
EBITDA
|
(2,237)
|
|
|
(1,250)
|
|
|
(2,305)
|
|
|
(23,077)
|
|
Other expense
(income), net
|
299
|
|
|
(256)
|
|
|
(433)
|
|
|
334
|
|
Stock-based
compensation
|
3,280
|
|
|
2,084
|
|
|
8,657
|
|
|
6,428
|
|
GSA sales adjustment
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
608
|
|
Restructuring costs
(2)
|
1,376
|
|
|
239
|
|
|
3,679
|
|
|
14,563
|
|
Adjusted
EBITDA
|
$
|
2,718
|
|
|
$
|
817
|
|
|
$
|
9,598
|
|
|
$
|
(1,144)
|
|
Adjusted EBITDA
margin (3)
|
3.4
|
%
|
|
1.2
|
%
|
|
4.0
|
%
|
|
(0.5)
|
%
|
|
(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 nine months ended
September 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 nine months
ended September 30, 2021 and September 30, 2020 we recorded a
pre-tax charge of approximately $3.7 million and
$14.6 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
September 30,
|
|
For the Nine Months
Ended
September
30,
|
(in
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Total sales to
external customers
|
|
|
|
|
|
|
|
Americas
(1)
|
$
|
33,944
|
|
|
$
|
30,867
|
|
|
$
|
100,195
|
|
|
$
|
92,234
|
|
EMEA
(1)
|
23,387
|
|
|
20,648
|
|
|
75,315
|
|
|
61,058
|
|
APAC
(1)
|
21,838
|
|
|
19,221
|
|
|
62,100
|
|
|
57,523
|
|
|
$
|
79,169
|
|
|
$
|
70,736
|
|
|
$
|
237,610
|
|
|
$
|
210,815
|
|
|
|
(1) Regions represent North America and South America
(Americas); Europe, the Middle East, and Africa (EMEA); and the
Asia-Pacific (APAC).
|
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SOURCE FARO