(Exact name of registrant as specified in its charter) | ||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit Number | Description | |||||||
104 | Cover Page Interactive Data File - The cover page of this Current Report on Form 8-K filed on April 28, 2021, formatted in Inline XBRL |
FARO Technologies, Inc. | ||||||||||||||||||||||||||
April 28, 2021 | /s/ Allen Muhich | |||||||||||||||||||||||||
By: | Allen Muhich | |||||||||||||||||||||||||
Its: | Chief Financial Officer | |||||||||||||||||||||||||
(Duly Authorized Officer and Principal Financial Officer) |
Three Months Ended | |||||||||||
(in thousands, except share and per share data) | March 31, 2021 | March 31, 2020 | |||||||||
Sales | |||||||||||
Product | $ | 54,635 | $ | 56,525 | |||||||
Service | 21,696 | 22,990 | |||||||||
Total sales | 76,331 | 79,515 | |||||||||
Cost of Sales | |||||||||||
Product | 24,804 | 23,066 | |||||||||
Service | 11,120 | 12,576 | |||||||||
Total cost of sales | 35,924 | 35,642 | |||||||||
Gross Profit | 40,407 | 43,873 | |||||||||
Operating Expenses | |||||||||||
Selling, general and administrative | 33,348 | 36,324 | |||||||||
Research and development | 11,973 | 10,415 | |||||||||
Restructuring costs | 1,524 | 13,688 | |||||||||
Total operating expenses | 46,845 | 60,427 | |||||||||
Loss from operations | (6,438) | (16,554) | |||||||||
Other (income) expense | |||||||||||
Interest expense, net | 10 | 34 | |||||||||
Other (income) expense, net | (1,615) | 473 | |||||||||
Loss before income tax benefit | (4,833) | (17,061) | |||||||||
Income tax benefit | (1,612) | (2,238) | |||||||||
Net loss | $ | (3,221) | $ | (14,823) | |||||||
Net loss per share - Basic | $ | (0.18) | $ | (0.84) | |||||||
Net loss per share - Diluted | $ | (0.18) | $ | (0.84) | |||||||
Weighted average shares - Basic | 18,076,410 | 17,616,964 | |||||||||
Weighted average shares - Diluted | 18,076,410 | 17,616,964 |
(in thousands, except share and per share data) | March 31, 2020 (unaudited) | December 31, 2020 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 169,957 | $ | 185,633 | |||||||
Accounts receivable, net | 59,821 | 64,616 | |||||||||
Inventories, net | 47,058 | 47,391 | |||||||||
Prepaid expenses and other current assets | 27,231 | 26,295 | |||||||||
Total current assets | 304,067 | 323,935 | |||||||||
Non-current assets: | |||||||||||
Property, plant and equipment, net | 21,921 | 23,091 | |||||||||
Operating lease right-of-use asset | 24,616 | 26,107 | |||||||||
Goodwill | 56,269 | 57,541 | |||||||||
Intangible assets, net | 13,254 | 13,301 | |||||||||
Service and sales demonstration inventory, net | 31,323 | 31,831 | |||||||||
Deferred income tax assets, net | 46,208 | 47,450 | |||||||||
Other long-term assets | 2,300 | 2,336 | |||||||||
Total assets | $ | 499,958 | $ | 525,592 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 15,969 | $ | 14,121 | |||||||
Accrued liabilities | 29,775 | 42,593 | |||||||||
Income taxes payable | 567 | 3,442 | |||||||||
Current portion of unearned service revenues | 37,842 | 39,149 | |||||||||
Customer deposits | 3,650 | 2,807 | |||||||||
Lease liability | 5,596 | 5,835 | |||||||||
Total current liabilities | 93,399 | 107,947 | |||||||||
Unearned service revenues - less current portion | 21,476 | 21,757 | |||||||||
Lease liability - less current portion | 20,965 | 22,131 | |||||||||
Deferred income tax liabilities | 642 | 787 | |||||||||
Income taxes payable - less current portion | 11,583 | 11,583 | |||||||||
Other long-term liabilities | 1,110 | 1,084 | |||||||||
Total liabilities | 149,175 | 165,289 | |||||||||
Shareholders’ equity: | |||||||||||
Common stock - par value $.001, 50,000,000 shares authorized; 19,536,531 and 19,384,350 issued, respectively; 18,154,164 and 17,990,707 outstanding, respectively | 19 | 19 | |||||||||
Additional paid-in capital | 291,603 | 287,979 | |||||||||
Retained earnings | 110,287 | 113,508 | |||||||||
Accumulated other comprehensive loss | (20,334) | (10,160) | |||||||||
Common stock in treasury, at cost; 1,382,367 and 1,393,643 shares, respectively | (30,792) | (31,043) | |||||||||
Total shareholders’ equity | 350,783 | 360,303 | |||||||||
Total liabilities and shareholders’ equity | $ | 499,958 | $ | 525,592 |
Three Months Ended | |||||||||||
(in thousands) | March 31, 2021 | March 31, 2020 | |||||||||
Cash flows from: | |||||||||||
Operating activities: | |||||||||||
Net loss | $ | (3,221) | $ | (14,823) | |||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | 3,190 | 3,759 | |||||||||
Stock-based compensation | 2,094 | 2,178 | |||||||||
Provisions for bad debts, net of recoveries | (89) | (15) | |||||||||
Loss on disposal of assets | 20 | 10 | |||||||||
Provision for excess and obsolete inventory | 1,404 | 204 | |||||||||
Deferred income tax benefit | (1,612) | (2,326) | |||||||||
Change in operating assets and liabilities: | |||||||||||
Decrease (Increase) in: | |||||||||||
Accounts receivable | 3,676 | 16,084 | |||||||||
Inventories | (3,999) | 1,795 | |||||||||
Prepaid expenses and other current assets | (1,346) | 7,408 | |||||||||
(Decrease) Increase in: | |||||||||||
Accounts payable and accrued liabilities | (9,823) | 4,756 | |||||||||
Income taxes payable | (1,153) | (1,389) | |||||||||
Customer deposits | 896 | (961) | |||||||||
Unearned service revenues | (323) | (365) | |||||||||
Net cash (used in) provided by operating activities | (10,286) | 16,315 | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | (1,547) | (757) | |||||||||
Proceeds from sale of investments | — | 9,000 | |||||||||
Payments for intangible assets | (890) | (435) | |||||||||
Net cash (used in) provided by investing activities | (2,437) | 7,808 | |||||||||
Financing activities: | |||||||||||
Payments on finance leases | (86) | (82) | |||||||||
Payments for taxes related to net share settlement of equity awards | (3,336) | (1,581) | |||||||||
Proceeds from issuance of stock related to stock option exercises | 5,118 | 2,802 | |||||||||
Net cash provided by financing activities | 1,696 | 1,139 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (4,649) | (1,656) | |||||||||
Increase in cash and cash equivalents | (15,676) | 23,606 | |||||||||
Cash and cash equivalents, beginning of period | 185,633 | 133,634 | |||||||||
Cash and cash equivalents, end of period | $ | 169,957 | $ | 157,240 |
Three Months Ended March 31, | |||||||||||
(dollars in thousands, except per share data) | 2021 | 2020 | |||||||||
Gross profit, as reported | $ | 40,407 | $ | 43,873 | |||||||
Stock-based compensation (2) | 66 | 271 | |||||||||
Non-GAAP adjustments to gross profit | 66 | 271 | |||||||||
Non-GAAP gross profit | $ | 40,473 | $ | 44,144 | |||||||
Gross margin, as reported | 52.9 | % | 55.2 | % | |||||||
Non-GAAP gross margin | 53.0 | % | 55.5 | % | |||||||
Selling, general and administrative, as reported | $ | 33,348 | $ | 36,324 | |||||||
Stock-based compensation (2) | (1,682) | (1,523) | |||||||||
Purchase accounting intangible amortization | (185) | (124) | |||||||||
Non-GAAP selling, general and administrative | $ | 31,481 | $ | 34,677 | |||||||
Research and development, as reported | $ | 11,973 | $ | 10,415 | |||||||
Stock-based compensation (2) | (346) | (382) | |||||||||
Purchase accounting intangible amortization | (328) | (401) | |||||||||
Non-GAAP research and development | $ | 11,299 | $ | 9,632 | |||||||
Operating expenses, as reported | $ | 46,845 | $ | 60,427 | |||||||
Stock-based compensation (2) | (2,028) | (1,905) | |||||||||
Restructuring costs (3) | (1,524) | (13,688) | |||||||||
Purchase accounting intangible amortization | (513) | (525) | |||||||||
Non-GAAP adjustments to operating expenses | (4,065) | (16,118) | |||||||||
Non-GAAP operating expenses | $ | 42,780 | $ | 44,309 | |||||||
Loss from operations, as reported | $ | (6,438) | $ | (16,554) | |||||||
Non-GAAP adjustments to gross profit | 66 | 271 | |||||||||
Non-GAAP adjustments to operating expenses | 4,065 | 16,118 | |||||||||
Non-GAAP loss from operations | $ | (2,307) | $ | (165) | |||||||
Other (income) expense, net, as reported | $ | (1,605) | $ | 507 | |||||||
Interest expense increase due to GSA sales adjustment (1) | — | (149) | |||||||||
Non-GAAP adjustments to other (income) expense, net | — | (149) | |||||||||
Non-GAAP other (income) expense, net | $ | (1,605) | $ | 358 | |||||||
Net loss, as reported | $ | (3,221) | $ | (14,823) | |||||||
Non-GAAP adjustments to gross profit | 66 | 271 | |||||||||
Non-GAAP adjustments to operating expenses | 4,065 | 16,118 | |||||||||
Non-GAAP adjustments to other (income) expense, net | — | 149 | |||||||||
Income tax effect of non-GAAP adjustments | (1,478) | (2,133) | |||||||||
Non-GAAP net loss | $ | (568) | $ | (418) | |||||||
Net loss per share - Diluted, as reported | $ | (0.18) | $ | (0.84) | |||||||
Stock-based compensation (2) | 0.12 | 0.12 | |||||||||
Restructuring costs (3) | 0.08 | 0.78 |
Purchase accounting intangible amortization | 0.03 | 0.03 | |||||||||
Interest expense increase due to GSA sales adjustment (1) | — | 0.01 | |||||||||
Income tax effect of non-GAAP adjustments | (0.08) | (0.12) | |||||||||
Non-GAAP net loss per share - Diluted | $ | (0.03) | $ | (0.02) |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2021 | 2020 | |||||||||
Net loss | $ | (3,221) | $ | (14,823) | |||||||
Interest expense, net | 10 | 34 | |||||||||
Income tax benefit | (1,612) | (2,238) | |||||||||
Depreciation and amortization | 3,190 | 3,759 | |||||||||
EBITDA | (1,633) | (13,268) | |||||||||
Other (income) expense, net | (1,615) | 473 | |||||||||
Stock-based compensation | 2,094 | 2,176 | |||||||||
Restructuring costs (1) | 1,524 | 13,688 | |||||||||
Adjusted EBITDA | $ | 370 | $ | 3,069 | |||||||
Adjusted EBITDA margin (2) | 0.5 | % | 3.9 | % |
For the Three Months Ended March 31, | |||||||||||
(in thousands) | 2021 | 2020 | |||||||||
Total sales to external customers | |||||||||||
Americas (1) | $ | 32,549 | $ | 35,590 | |||||||
EMEA (1) | 25,454 | 23,690 | |||||||||
APAC (1) | 18,328 | 20,235 | |||||||||
$ | 76,331 | $ | 79,515 |
+ )5![E20<=<"H;3X9W
MFLZ=K-SXBU&^LK_69I'GM;:X4PA
Cover Document |
Apr. 28, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Apr. 28, 2021 |
Entity Registrant Name | FARO TECHNOLOGIES, INC. |
Entity Incorporation, State or Country Code | FL |
Entity File Number | 0-23081 |
Entity Tax Identification Number | 59-3157093 |
Entity Address, Address Line One | 250 Technology Park |
Entity Address, City or Town | Lake Mary |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 32746 |
City Area Code | 407 |
Local Phone Number | 333-9911 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $.001 |
Trading Symbol | FARO |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0000917491 |
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