FARO Announces First Quarter Financial Results

 

(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"). In fourth quarter 2018, we reduced our total sales by an estimated cumulative adjustment of $4.8 million. We also retained outside legal counsel and forensic accountants to conduct a comprehensive review of our pricing and other practices under the Contracts (the "Review"). In the first quarter 2019 we reduced our total sales by less than $0.1 million (the "GSA sales adjustment") and recorded imputed interest expense of $0.1 million 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) In connection with the GSA Matter, we retained outside legal counsel and forensic accountants to conduct the Review, which resulted in $0.6 million in advisory fees incurred during the three months ended March 31, 2019.


(4) 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, we recorded a pre-tax charge of approximately $13.7 million during the first quarter 2020 primarily consisting of severance and related benefits.

 

 

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA

(UNAUDITED)




Three Months Ended March 31,

(in thousands)

2020


2019

Net (loss) income

$

(14,823)



$

152


Interest expense (income), net

34



(144)


Income tax (benefit) expense

(2,238)



155


Depreciation and amortization

3,759



4,749


EBITDA

(13,268)



4,912


Loss on foreign currency transactions

473



195


Stock-based compensation

2,175



2,564


GSA sales adjustment (1)



35


Advisory fees for GSA Matter (2)



591


Restructuring costs (3)

13,688




Adjusted EBITDA

$

3,068



$

8,297


Adjusted EBITDA margin (4)

3.9

%


8.9

%

 

(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"). In fourth quarter 2018, we reduced our total sales by an estimated cumulative adjustment of $4.8 million. We also retained outside legal counsel and forensic accountants to conduct a comprehensive review of our pricing and other practices under the Contracts (the "Review"). In the first quarter 2019 we reduced our total sales by less than $0.1 million (the "GSA sales adjustment") related to the GSA Matter.


(2) In connection with the GSA Matter, we retained outside legal counsel and forensic accountants to conduct the Review, which resulted in $0.6 million in advisory fees incurred during the three months ended March 31, 2019.


(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, we recorded a pre-tax charge of approximately $13.7 million during the first quarter 2020 primarily consisting of severance and related benefits.


(4)  Calculated as Adjusted EBITDA as a percentage of Non-GAAP total sales, which adjusts for the GSA sales adjustment.


« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7  Next Page »



Review Article Be the first to review this article

SolidCAM - Learn More

Featured Video
Editorial
Jobs
Applications Programmer Analyst II for Southern Nevada Health District at Las Vegas, Nevada
Applications Programmer Analyst I for Southern Nevada Health District at Las Vegas, Nevada
Geographical Information Systems Analyst for Saalex Solutions at Fallon, Nevada
Upcoming Events
Robotics Summit & Expo at Seaport World Trade Center 1 Seaport Lane Boston MA - Sep 24 - 25, 2020
DEVELOP 3D Live 2020 New Date November 3rd at Sheffield University ctagon and INOX Building, Durham Road Sheffield United Kingdom - Nov 3, 2020
Digital Twin 2020 - Now in November 2020 at Melbourne FL - Nov 4 - 5, 2020
Sensors Expo & Conference at McEnery Convention Center SAN JOSE CA - Nov 16 - 18, 2020
Kenesto: 30 day trial



© 2020 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise