In the reconciliations that follow, the "as reported" amounts for prior periods reflect the above reclassification of depreciation and amortization expenses. |
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES |
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RECONCILIATION OF GAAP TO NON-GAAP |
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(UNAUDITED) |
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Three months ended September 30, |
Nine months ended September 30, |
||||||||||||||
(dollars in thousands, except per share data) |
2019 |
2018 |
2019 |
2018 |
|||||||||||
Total sales, as reported |
$ |
90,516 |
$ |
99,705 |
$ |
277,624 |
$ |
290,783 |
|||||||
GSA sales adjustment (1) |
— |
— |
5,840 |
— |
|||||||||||
Non-GAAP total sales |
$ |
90,516 |
$ |
99,705 |
$ |
283,464 |
$ |
290,783 |
|||||||
Gross profit, as reported |
$ |
50,772 |
$ |
50,612 |
$ |
154,531 |
$ |
158,712 |
|||||||
GSA sales adjustment (1) |
— |
— |
5,840 |
— |
|||||||||||
Stock-based compensation (2) |
270 |
241 |
771 |
620 |
|||||||||||
Inventory reserve charge (3) |
— |
4,734 |
— |
4,734 |
|||||||||||
Non-GAAP adjustments to gross profit |
270 |
4,975 |
6,611 |
5,354 |
|||||||||||
Non-GAAP gross profit |
$ |
51,042 |
$ |
55,587 |
$ |
161,142 |
$ |
164,066 |
|||||||
Gross margin, as reported |
56.1 |
% |
50.8 |
% |
55.7 |
% |
54.6 |
% |
|||||||
Non-GAAP gross margin |
56.4 |
% |
55.8 |
% |
56.8 |
% |
56.4 |
% |
|||||||
Operating expenses, as reported |
$ |
56,663 |
$ |
53,324 |
$ |
164,957 |
$ |
158,804 |
|||||||
Advisory fees for GSA Matter (4) |
— |
— |
(1,244) |
— |
|||||||||||
Stock-based compensation (2) |
(3,117) |
(1,925) |
(7,932) |
(5,097) |
|||||||||||
Executive severance costs |
(1,217) |
— |
(1,217) |
— |
|||||||||||
Executive sign-on bonuses & relocation costs |
(270) |
— |
(845) |
— |
|||||||||||
Purchase accounting intangible amortization |
(924) |
(1,131) |
(2,665) |
(2,601) |
|||||||||||
Non-GAAP adjustments to operating expenses |
(5,528) |
(3,056) |
(13,903) |
(7,698) |
|||||||||||
Non-GAAP operating expenses |
$ |
51,135 |
$ |
50,268 |
$ |
151,054 |
$ |
151,106 |
|||||||
Loss from operations, as reported |
$ |
(5,891) |
$ |
(2,712) |
$ |
(10,426) |
$ |
(92) |
|||||||
Non-GAAP adjustments to gross profit |
270 |
4,975 |
6,611 |
5,354 |
|||||||||||
Non-GAAP adjustments to operating expenses |
5,528 |
3,056 |
13,903 |
7,698 |
|||||||||||
Non-GAAP (loss) income from operations |
$ |
(93) |
$ |
5,319 |
$ |
10,088 |
$ |
12,960 |
|||||||
Other expense, net, as reported |
$ |
490 |
$ |
130 |
$ |
2,470 |
$ |
663 |
|||||||
Interest expense increase due to GSA sales adjustment (1) |
(145) |
— |
(632) |
— |
|||||||||||
Present4D impairment (5) |
— |
— |
(1,535) |
— |
|||||||||||
Non-GAAP adjustments to other expense, net |
(145) |
— |
(2,167) |
— |
|||||||||||
Non-GAAP other expense, net |
$ |
345 |
$ |
130 |
$ |
303 |
$ |
663 |
|||||||
Net loss, as reported |
$ |
(6,199) |
$ |
(2,488) |
$ |
(12,452) |
$ |
(828) |
|||||||
Non-GAAP adjustments to gross profit |
270 |
4,975 |
6,611 |
5,354 |
|||||||||||
Non-GAAP adjustments to operating expenses |
5,528 |
3,056 |
13,903 |
7,698 |
|||||||||||
Non-GAAP adjustments to other expense, net |
145 |
— |
2,167 |
— |
|||||||||||
Income tax effect of non-GAAP adjustments |
(1,452) |
(1,084) |
(4,484) |
(2,126) |
|||||||||||
Other tax adjustments (6) |
1,555 |
— |
2,419 |
— |
|||||||||||
Non-GAAP net (loss) income |
$ |
(153) |
$ |
4,459 |
$ |
8,164 |
$ |
10,098 |
|||||||
Net loss per share - Diluted, as reported |
$ |
(0.36) |
$ |
(0.15) |
$ |
(0.72) |
$ |
(0.05) |
|||||||
GSA sales adjustment (1) |
— |
— |
0.34 |
— |
|||||||||||
Stock-based compensation (2) |
0.19 |
0.12 |
0.50 |
0.34 |
|||||||||||
Inventory reserve charge (3) |
— |
0.28 |
— |
0.28 |
|||||||||||
Advisory fees for GSA Matter (4) |
— |
— |
0.07 |
— |
|||||||||||
Executive severance costs |
0.07 |
— |
0.07 |
— |
|||||||||||
Executive sign-on bonuses & relocation costs |
0.02 |
— |
0.05 |
— |
|||||||||||
Purchase accounting intangible amortization |
0.05 |
0.07 |
0.15 |
0.15 |
|||||||||||
Interest expense increase due to GSA sales adjustment (1) |
0.01 |
— |
0.04 |
— |
|||||||||||
Present4D impairment (5) |
— |
— |
0.09 |
— |
|||||||||||
Income tax effect of non-GAAP adjustments |
(0.08) |
(0.06) |
(0.26) |
(0.13) |
|||||||||||
Other tax adjustments (6) |
0.09 |
— |
0.14 |
— |
|||||||||||
Non-GAAP net (loss) income per share - Diluted |
$ |
(0.01) |
$ |
0.26 |
$ |
0.47 |
$ |
0.59 |
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