LAKE
MARY, Fla., Nov. 2, 2022
/PRNewswire/ -- FARO® Technologies, Inc. (Nasdaq: FARO), a global
leader in 4D digital reality solutions, today announced its
financial results for the third quarter ended September 30, 2022.
![(PRNewsfoto/FARO) (PRNewsfoto/FARO)](https://mma.prnewswire.com/media/1896297/FARO_Logo.jpg)
"Customer demand across our served markets remained healthy,
with revenue on a constant currency basis of $91.5 million, increasing 14% year on year and up
9% sequentially. Due to continued strengthening of the US
dollar, sales on an actual currency basis were $85.3 million, up 8% compared to the prior year
period," stated Michael Burger,
President and Chief Executive Officer. "Together with the building
momentum of our recent product releases, the recent acquisition of
GeoSLAM and the launch of FARO Sphere for cloud-based 3D model
creation and collaboration, we have one of the industry's most
comprehensive suites of digital 3D solutions. I am excited by
the early customer response we have received on our combined
offerings and the enormous market opportunity represented by
digitalizing the physical world."
Third Quarter 2022 Financial Summary
- Total sales of $85.3 million, up
8% compared to the prior year period
- Total sales on a Non-GAAP constant currency basis of
$91.5 million, up 14% compared to the
prior year period
- Software sales, of $10.6 million
or 12% of revenue, down from 14% in the prior year period due to
the relative strength of our hardware offerings
- Recurring revenue of $16.6
million or 19% of revenue on an actual currency basis, was
up 2% year on year
- Gross margin of 50.7%, compared to 53.5% in the prior year
period with the reduction primarily a result of the strengthening
US dollar to foreign currency exchange rates
- Non-GAAP gross margin of 51.0%, compared to 53.7% in the prior
year period
- Operating expenses of $50.4
million, compared to $47.5
million in the prior year period
- Non-GAAP operating expenses of $44.3
million, compared to $42.4
million in the prior year period
- Net loss of $6.3 million, or
($0.34) per share compared to
$3.9 million, or ($0.21) per share in the prior year period
- Non-GAAP net income of $0.5
million, or $0.03 per share
compared to net loss of $0.1 million,
or ($0.01) per share in the prior
year period
- Adjusted EBITDA of $2.0 million,
or 2.3% of total sales compared to $2.7
million, or 3.4% of total sales in the prior year
period
- Cash and short-term investments of $48.5
million, compared to $102.0
million as of June 30,
2022
* 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".
Outlook for the Fourth Quarter 2022
For the fourth quarter ending December
31, 2022, FARO currently expects:
- Revenue in the range of $99.0 to
$107.0 million
- Non-GAAP earnings per share in the range of $0.25 to $0.45
Note: Constant currency revenue performance is provided
such that users of the financial statements may assess our
underlying performance excluding the effect of foreign currency
rate fluctuations. To present this information, current
period performance for entities reporting in currencies other than
United States dollars are
converted to United States dollars
at the exchange rates in effect on September
30, 2021.
Conference Call
The Company will host a conference call to discuss these results
on Wednesday, November 2, 2022 at
5:00 p.m. ET. Interested parties can
access the conference call by dialing (800) 245-3047 (U.S.)
or +1 (203) 518-9708 (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/en/About-Us/Investor-Relations/Financial-Events-and-Presentations
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
FARO serves the 3D Metrology, AEC
(Architecture, Engineering & Construction), O&M (Facilities
Operations & Maintenance), and Public Safety Analytics markets.
For over 40 years, FARO has provided industry-leading technology
solutions that enable customers to digitalize 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 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 gross profit, non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP (loss) income from operations, non-GAAP net
income (loss) and non-GAAP net income (loss) per share, exclude the
impact of purchase accounting intangible amortization expense,
stock-based compensation, restructuring and other charges, and
other tax adjustments, and are provided to enhance
investors' overall understanding of our historical operations
and financial performance.
In addition, we present EBITDA, which is calculated as net loss
before interest (income) expense, net, income tax expense (benefit)
and depreciation and amortization, and Adjusted EBITDA, which is
calculated as EBITDA, excluding other (income) expense, net,
stock-based compensation, and restructuring and other charges, as
measures of our operating profitability. The most directly
comparable GAAP measure to EBITDA and Adjusted EBITDA is net loss.
We also present Adjusted EBITDA margin, which is calculated as
Adjusted EBITDA as a percent of total sales.
In our third quarter reporting, we have included total sales on
a constant currency basis, a new non-GAAP measure. The most
directly comparable GAAP measure to total sales on a constant
currency basis is total sales. We believe constant currency
information is useful in analyzing underlying trends in our
business and the commercial performance of our products by
eliminating the impact of highly volatile fluctuations in foreign
currency markets and allows for period-to-period comparisons of our
performance. For simplicity, we may elect to omit this information
in future periods if we determine a lack of material impact. To
present this information, current period performance for entities
reporting in currencies other than U.S. dollars are converted to
U.S. dollars at the exchange rate in effect during the last day of
the prior comparable period.
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 the outlook for the
fourth quarter of 2022, demand for and customer acceptance of
FARO's products, FARO's product development and product launches,
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 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 outcome of the U.S. Government's review of, or
investigation into, the GSA Matter; any resulting penalties,
damages, or sanctions imposed on the Company and the outcome of any
resulting litigation to which the Company may become a party; loss
of future government sales; and potential impacts on customer and
supplier relationships and the Company's reputation;
- 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
inflation rates;
- the Company's ability to effectively integrate the operations
from Holobuilder, Inc. and UK-based GeoSLAM, including the
intellectual property acquired; and
- other risks and uncertainties discussed in Part I, Item 1A.
Risk Factors in the Company's Annual Report on Form 10-K for the
year ended December 31, 2021, as
supplemented by the Company's Quarterly Reports on Form 10-Q, and
in other SEC filings.
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
|
|
Nine Months
Ended
|
(in thousands, except
share and per share data)
|
September 30,
2022
|
|
September 30,
2021
|
|
September 30,
2022
|
|
September 30,
2021
|
Sales
|
|
|
|
|
|
|
|
Product
|
$
65,581
|
|
$
57,838
|
|
$
182,015
|
|
$
172,748
|
Service
|
19,751
|
|
$
21,331
|
|
59,891
|
|
$
64,862
|
Total sales
|
85,332
|
|
79,169
|
|
241,906
|
|
237,610
|
Cost of
sales
|
|
|
|
|
|
|
|
Product
|
30,375
|
|
$
25,650
|
|
82,879
|
|
$
75,909
|
Service
|
11,692
|
|
$
11,188
|
|
34,299
|
|
$
33,481
|
Total cost of
sales
|
42,067
|
|
36,838
|
|
117,178
|
|
109,390
|
Gross profit
|
43,265
|
|
42,331
|
|
124,728
|
|
128,220
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
37,226
|
|
$
33,433
|
|
108,734
|
|
$
100,375
|
Research and
development
|
12,586
|
|
$
12,731
|
|
36,756
|
|
$
36,464
|
Restructuring
costs
|
580
|
|
1,376
|
|
2,512
|
|
3,679
|
Total operating
expenses
|
50,392
|
|
47,540
|
|
148,002
|
|
140,518
|
Loss from
operations
|
(7,127)
|
|
(5,209)
|
|
(23,274)
|
|
(12,298)
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest (income)
expense, net
|
(24)
|
|
$
5
|
|
(28)
|
|
$
54
|
Other (income)
expense, net
|
(1428)
|
|
$
299
|
|
(3077)
|
|
$
(433)
|
Loss before income tax
expense (benefit)
|
(5,675)
|
|
(5,513)
|
|
(20,169)
|
|
(11,919)
|
Income tax expense
(benefit)
|
586
|
|
(1,658)
|
|
4,352
|
|
(3,667)
|
Net loss
|
$
(6,261)
|
|
$
(3,855)
|
|
$
(24,521)
|
|
$
(8,252)
|
Net loss per share -
Basic
|
$
(0.34)
|
|
$
(0.21)
|
|
$
(1.34)
|
|
$
(0.45)
|
Net loss per share -
Diluted
|
$
(0.34)
|
|
$
(0.21)
|
|
$
(1.34)
|
|
$
(0.45)
|
Weighted average shares
- Basic
|
18,436,615
|
|
18,194,960
|
|
18,336,537
|
|
18,166,930
|
Weighted average shares
- Diluted
|
18,436,615
|
|
18,194,960
|
|
18,336,537
|
|
18,166,930
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(in thousands, except share and per share
data)
|
September 30,
2022 (unaudited)
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
48,534
|
|
$
121,989
|
Accounts receivable,
net
|
75,347
|
|
78,523
|
Inventories,
net
|
50,956
|
|
53,145
|
Prepaid expenses and
other current assets
|
33,801
|
|
19,793
|
Total current
assets
|
208,638
|
|
273,450
|
Non-current
assets:
|
|
|
|
Property, plant and
equipment, net
|
20,424
|
|
22,194
|
Operating lease
right-of-use assets
|
18,404
|
|
22,543
|
Goodwill
|
101,279
|
|
82,096
|
Intangible assets,
net
|
48,094
|
|
25,616
|
Service and sales
demonstration inventory, net
|
28,249
|
|
30,554
|
Deferred income tax
assets, net
|
18,092
|
|
21,277
|
Other long-term
assets
|
2,047
|
|
2,010
|
Total assets
|
$
445,227
|
|
$
479,740
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
17,546
|
|
$
14,199
|
Accrued
liabilities
|
22,881
|
|
28,208
|
Income taxes
payable
|
6,421
|
|
4,499
|
Current portion of
unearned service revenues
|
36,440
|
|
40,838
|
Customer
deposits
|
5,873
|
|
5,399
|
Lease
liabilities
|
5,532
|
|
5,738
|
Total current
liabilities
|
94,693
|
|
98,881
|
Unearned service
revenues - less current portion
|
20,868
|
|
22,350
|
Lease liabilities -
less current portion
|
14,344
|
|
18,648
|
Deferred income tax
liabilities
|
5,708
|
|
1,058
|
Long-term note
payable
|
—
|
|
—
|
Income taxes payable -
less current portion
|
10,131
|
|
11,297
|
Other long-term
liabilities
|
19
|
|
1,047
|
Total
liabilities
|
145,763
|
|
153,281
|
Common stock - par
value $.001, 50,000,000 shares authorized; 20,153,287 and
19,588,003 issued, respectively; 18,776,936 and 18,205,636
outstanding, respectively
|
20
|
|
20
|
Additional paid-in
capital
|
325,244
|
|
301,061
|
Retained
earnings
|
49,022
|
|
73,544
|
Accumulated other
comprehensive loss
|
(44,165)
|
|
(17,374)
|
Common stock in
treasury, at cost - 1,376,351 and 1,382,367 shares held,
respectively
|
(30,657)
|
|
(30,792)
|
Total shareholders'
equity
|
299,464
|
|
326,459
|
Total liabilities and
shareholders' equity
|
$
445,227
|
|
$
479,740
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
|
|
|
Nine Months
Ended
|
(in
thousands)
|
September 30,
2022
|
|
September 30,
2021
|
Cash flows
from:
|
|
|
|
Operating
activities:
|
|
|
|
Net loss
|
$
(24,521)
|
|
$
(8,252)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
10,061
|
|
9,560
|
Stock-based
compensation
|
10,024
|
|
8,657
|
Provisions for bad
debts, net of recoveries
|
80
|
|
33
|
Loss on disposal of
assets
|
356
|
|
130
|
Provision for excess
and obsolete inventory
|
209
|
|
1,955
|
Deferred income tax
expense (benefit)
|
568
|
|
(3,667)
|
Change in operating
assets and liabilities:
|
|
|
|
Decrease (Increase)
in:
|
|
|
|
Accounts
receivable
|
867
|
|
4,311
|
Inventories
|
2,129
|
|
(9,106)
|
Prepaid expenses and
other current assets
|
(14,566)
|
|
(2,935)
|
(Decrease) Increase
in:
|
|
|
|
Accounts payable and
accrued liabilities
|
(2,249)
|
|
(14,153)
|
Income taxes
payable
|
1,008
|
|
(1,847)
|
Customer
deposits
|
588
|
|
1,966
|
Unearned service
revenues
|
(2,710)
|
|
(2,223)
|
Net cash used in
operating activities
|
(18,156)
|
|
(15,571)
|
Investing
activities:
|
|
|
|
Purchases of property
and equipment
|
(4,978)
|
|
(4,845)
|
Cash paid for
technology development, patents and licenses
|
(9,154)
|
|
(1,933)
|
Acquisition of
business, net of cash acquired
|
(29,068)
|
|
(33,908)
|
Net cash used in
investing activities
|
(43,200)
|
|
(40,686)
|
Financing
activities:
|
|
|
|
Payments on finance
leases
|
(172)
|
|
(229)
|
Payments for taxes
related to net share settlement of equity awards
|
(1,584)
|
|
(4,137)
|
Proceeds from issuance
of stock related to stock option exercises
|
—
|
|
5,835
|
Net cash (used in)
provided by financing activities
|
(1,756)
|
|
1,469
|
Effect of exchange rate
changes on cash and cash equivalents
|
(10,343)
|
|
(5,031)
|
Decrease in cash and
cash equivalents
|
(73,455)
|
|
(59,819)
|
Cash and cash
equivalents, beginning of period
|
121,989
|
|
185,633
|
Cash and cash
equivalents, end of period
|
$
48,534
|
|
$
125,814
|
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)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Gross profit, as
reported
|
$
43,265
|
|
$
42,331
|
|
$ 124,728
|
|
$ 128,220
|
Stock-based
compensation (1)
|
273
|
|
190
|
|
756
|
|
470
|
Non-GAAP adjustments
to gross profit
|
273
|
|
190
|
|
756
|
|
470
|
Non-GAAP gross
profit
|
$
43,538
|
|
$
42,521
|
|
$ 125,484
|
|
$ 128,690
|
Gross margin, as
reported
|
50.7 %
|
|
53.5 %
|
|
51.6 %
|
|
54.0 %
|
Non-GAAP gross
margin
|
51.0 %
|
|
53.7 %
|
|
51.9 %
|
|
54.2 %
|
|
|
|
|
|
|
|
|
Selling, general and
administrative, as reported
|
$
37,226
|
|
$
33,433
|
|
$ 108,734
|
|
$ 100,375
|
Stock-based
compensation (1)
|
(2,742)
|
|
(2,581)
|
|
(7,475)
|
|
(6,789)
|
Purchase accounting
intangible amortization
|
(180)
|
|
(276)
|
|
(562)
|
|
(649)
|
Non-GAAP selling,
general and administrative
|
$
34,304
|
|
$
30,576
|
|
$ 100,697
|
|
$
92,937
|
|
|
|
|
|
|
|
|
Research and
development, as reported
|
$
12,586
|
|
$
12,731
|
|
$
36,756
|
|
$
36,464
|
Stock-based
compensation (1)
|
(651)
|
|
(509)
|
|
(1,793)
|
|
(1,398)
|
Purchase accounting
intangible amortization
|
(487)
|
|
(420)
|
|
(1,522)
|
|
(1,061)
|
Non-GAAP research and
development
|
$
11,448
|
|
$
11,802
|
|
$
33,441
|
|
$
34,005
|
|
|
|
|
|
|
|
|
Operating expenses, as
reported
|
$
50,392
|
|
$
47,540
|
|
$ 148,002
|
|
$ 140,518
|
Stock-based
compensation (1)
|
(3,393)
|
|
(3,090)
|
|
(9,268)
|
|
(8,187)
|
Restructuring and
other costs (2)
|
(2,028)
|
|
(1,376)
|
|
(4,944)
|
|
(3,679)
|
Purchase accounting
intangible amortization
|
(667)
|
|
(696)
|
|
(2,084)
|
|
(1,710)
|
Non-GAAP adjustments
to operating expenses
|
(6,088)
|
|
(5,162)
|
|
(16,296)
|
|
(13,576)
|
Non-GAAP operating
expenses
|
$
44,304
|
|
$
42,378
|
|
$ 131,706
|
|
$ 126,942
|
|
|
|
|
|
|
|
|
Loss from operations,
as reported
|
$
(7,127)
|
|
$
(5,209)
|
|
$ (23,274)
|
|
$ (12,298)
|
Non-GAAP adjustments
to gross profit
|
273
|
|
190
|
|
756
|
|
470
|
Non-GAAP adjustments
to operating expenses
|
6,088
|
|
5,162
|
|
16,296
|
|
13,576
|
Non-GAAP (loss) income
from operations
|
$
(766)
|
|
$
143
|
|
$
(6,222)
|
|
$
1,748
|
|
|
|
|
|
|
|
|
Net loss, as
reported
|
$
(6,261)
|
|
$
(3,855)
|
|
$ (24,521)
|
|
$
(8,252)
|
Non-GAAP adjustments
to gross profit
|
273
|
|
190
|
|
756
|
|
470
|
Non-GAAP adjustments
to operating expenses
|
6,088
|
|
5,162
|
|
16,296
|
|
13,576
|
Income tax effect of
non-GAAP adjustments
|
(1,272)
|
|
(1,619)
|
|
(4,014)
|
|
(4,241)
|
Other tax adjustments
(3)
|
1,720
|
|
—
|
|
8,903
|
|
—
|
Non-GAAP net income
(loss)
|
$
548
|
|
$
(122)
|
|
$
(2,580)
|
|
$
1,553
|
|
|
|
|
|
|
|
|
Net loss per share -
Diluted, as reported
|
$
(0.34)
|
|
$
(0.21)
|
|
$
(1.34)
|
|
$
(0.45)
|
Stock-based
compensation (1)
|
0.20
|
|
0.18
|
|
0.55
|
|
0.48
|
Restructuring and
other costs (2)
|
0.11
|
|
0.07
|
|
0.27
|
|
0.20
|
Purchase accounting
intangible amortization
|
0.04
|
|
0.04
|
|
0.11
|
|
0.09
|
Income tax effect of
non-GAAP adjustments
|
(0.07)
|
|
(0.09)
|
|
(0.22)
|
|
(0.23)
|
Other tax adjustments
(3)
|
0.09
|
|
—
|
|
0.49
|
|
—
|
Non-GAAP net income
(loss) per share - Diluted
|
$
0.03
|
|
$
(0.01)
|
|
$
(0.14)
|
|
$
0.09
|
|
(1) 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.
|
|
(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. The Restructuring and other costs
primarily consist of severance and related benefits.
|
|
(3) The
other tax adjustments primarily relate to the impact of certain
jurisdictions maintaining a full valuation allowance where benefit
is not accrued on U.S. GAAP pre-tax book losses.
|
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)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net loss
|
$
(6,261)
|
|
$
(3,855)
|
|
$ (24,521)
|
|
$
(8,252)
|
Interest (income)
expense, net
|
(24)
|
|
5
|
|
(28)
|
|
54
|
Income tax expense
(benefit)
|
586
|
|
(1,658)
|
|
4,352
|
|
(3,667)
|
Depreciation and
amortization
|
3,406
|
|
3,271
|
|
10,061
|
|
9,560
|
EBITDA
|
(2,293)
|
|
(2,237)
|
|
(10,136)
|
|
(2,305)
|
Other (income)
expense, net
|
(1,428)
|
|
299
|
|
(3,077)
|
|
(433)
|
Stock-based
compensation
|
3,666
|
|
3,280
|
|
10,024
|
|
8,657
|
Restructuring and
other costs (1)
|
2,028
|
|
1,376
|
|
4,944
|
|
3,679
|
Adjusted
EBITDA
|
$
1,973
|
|
$
2,718
|
|
$
1,755
|
|
$
9,598
|
Adjusted EBITDA margin
(2)
|
2.3 %
|
|
3.4 %
|
|
0.7 %
|
|
4.0 %
|
|
(1) 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. The Restructuring and other costs
primarily consist of severance and related benefits.
|
|
(2) Calculated as Adjusted EBITDA as
a percentage of total sales.
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES KEY SALES MEASURES
(UNAUDITED)
|
|
|
For the Three Months
Ended
September 30,
|
|
For the Nine Months
Ended
September 30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Total sales to
external customers as reported
|
|
|
|
|
|
|
|
Americas
(1)
|
$
38,732
|
|
$
33,944
|
|
$
110,077
|
|
$
100,195
|
EMEA
(1)
|
22,802
|
|
23,387
|
|
66,494
|
|
75,315
|
APAC
(1)
|
23,798
|
|
21,838
|
|
65,335
|
|
62,100
|
|
$
85,332
|
|
$
79,169
|
|
$
241,906
|
|
$
237,610
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
September 30,
|
|
For the Nine Months
Ended
September 30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Total sales to
external customers in constant currency
(2)
|
|
|
|
|
|
|
|
Americas
(1)
|
$
38,586
|
|
$
33,837
|
|
$
109,640
|
|
$
99,983
|
EMEA
(1)
|
26,791
|
|
22,968
|
|
73,329
|
|
73,024
|
APAC
(1)
|
26,150
|
|
21,749
|
|
69,371
|
|
61,376
|
|
$
91,527
|
|
$
78,554
|
|
$
252,340
|
|
$
234,383
|
|
(1) Regions
represent North America and South America (Americas); Europe, the
Middle East, and Africa (EMEA); and the Asia-Pacific
(APAC).
|
|
(2) We
compare the change in the sales from one period to another period
using constant currency disclosure. We present constant currency
information to provide a framework for assessing how our underlying
business performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and comparative
prior period results for entities reporting in currencies other
than United States dollars are converted into United States dollars
at the exchange rate in effect during the last day of the prior
comparable period, rather than the actual exchange rates in effect
during the respective periods.
|
|
For the Three Months
Ended September
30,
|
|
For the Nine Months
Ended September
30,
|
(in
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Hardware
|
$
54,971
|
|
$
46,839
|
|
$ 150,597
|
|
$ 141,363
|
Software
|
10,610
|
|
10,999
|
|
31,418
|
|
31,385
|
Service
|
19,751
|
|
21,331
|
|
59,891
|
|
64,862
|
Total Sales
|
$
85,332
|
|
$
79,169
|
|
$ 241,906
|
|
$ 237,610
|
|
|
|
|
|
|
|
|
Hardware as a
percentage of total sales
|
64.4 %
|
|
59.2 %
|
|
62.3 %
|
|
59.5 %
|
Software as a
percentage of total sales
|
12.4 %
|
|
13.9 %
|
|
13.0 %
|
|
13.2 %
|
Service as a percentage
of total sales
|
23.1 %
|
|
26.9 %
|
|
24.8 %
|
|
27.3 %
|
|
|
|
|
|
|
|
|
Total Recurring Revenue
(3)
|
$
16,591
|
|
$
16,301
|
|
$
50,184
|
|
$
47,599
|
Recurring revenue as a
percentage of total sales
|
19.4 %
|
|
20.6 %
|
|
20.7 %
|
|
20.0 %
|
|
(3)
Recurring revenue is comprised of hardware service contracts,
software maintenance contracts, and subscription based software
applications.
|
FARO TECHNOLOGIES,
INC. AND SUBSIDIARIES RECONCILIATION OF OUTLOOK - GAAP TO
NON-GAAP
|
|
|
Fiscal quarter
ending December 31, 2022
|
|
|
GAAP diluted (loss)
earnings per share range
|
($0.03) -
$0.10
|
Stock-based
compensation
|
0.19
|
Purchase accounting
intangible amortization
|
0.06
|
Restructuring and
other costs
|
0.02
|
Non-GAAP tax
adjustments
|
0.01 - 0.08
|
Non-GAAP diluted
earnings per share
|
$0.25 -
$0.45
|
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SOURCE FARO