FARO Reports Third Quarter Revenue Growth of 12%, EPS Growth of 38% PR Newswire LAKE MARY, Fla., Oct. 30, 2013 LAKE MARY, Fla., Oct. 30, 2013 /PRNewswire/ --FARO Technologies, Inc. (NASDAQ: FARO) today announced results for the third quarter ended September 28, 2013. Sales in the third quarter of 2013 increased $7.5 million, or 12.3%, to $68.2 million, from $60.7 million in the third quarter of 2012. The Company reported net income increased 37.3% to $5.0 million, or $0.29 per share, in the third quarter of 2013 compared to $3.7 million, or $0.21 per share, in the third quarter of 2012. (Logo: http://photos.prnewswire.com/prnh/20110415/MM84316LOGO) New order bookings for the third quarter of 2013 were $63.4 million, an increase of 3.9% from $61.0 million in the third quarter of 2012. Gross margin for the third quarter of 2013 was 56.9%, compared to 53.2% in the third quarter of 2012. Gross margins increased primarily due to lower manufacturing costs with improved average selling prices for certain metrology products. The Company's operating margin for the third quarter increased to 11.1%, compared to 8.3% in the third quarter of 2012. Operating expenses increased due to staffing costs and related expenses of $4.1 million primarily in our sales and marketing and research and development organizations, offset by lower legal and professional fees of approximately $1.0 million. "Our strong third quarter revenue growth reflects improved market conditions, excellent sales execution and the positive effect of several new product launches. We continued to accelerate our R&D spending in the quarter and we successfully leveraged our cost base to generate a 38% increase in earnings," stated Jay Freeland, FARO's President & CEO. "We launched two important new products over the last two months.The first was our next generation Laser Line Probe with increased speed and data density. The second, launched at the start of the fourth quarter, is our next generation Laser Scanner, the X330. This new, disruptive scanner increases our measurement range to beyond 330 meters, while improving image clarity twofold and incorporating GPS technology for positioning. Overall it was a very good quarter for the Company and we continue to maintain our leadership in the market." 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 its products, anticipated improvement in the markets in which it operates, its sales strategy and execution, its product launches, its ability to maintain market leadership, and its future operating results and financial condition. 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 "intend," "believe," "will," "expect" 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: odevelopment by others of new or improved products, processes or technologies that make the Company's products obsolete or less competitive; othe cyclical nature of the industries of the Company's customers and material adverse changes in customers' access to liquidity and capital; odeclines 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 financing conditions; orisks associated with international operations, such as fluctuations in currency exchange rates, difficulties in staffing and managing foreign operations, political and economic instability, compliance with import and export regulations, and the burdens and potential exposure of complying with a wide variety of U.S. and foreign laws and labor practices; and oother 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, 2012. 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. About FARO FARO is the world's most trusted source for 3D measurement technology. The Company develops and markets computer-aided measurement and imaging devices and software. Technology from FARO permits high-precision 3D measurement, imaging and comparison of parts and complex structures within production and quality assurance processes. The devices are used for inspecting components and assemblies, rapid prototyping, documenting large volume spaces or structures in 3D, surveying and construction, as well as for investigation and reconstruction of accident sites or crime scenes. Approximately 15,000 customers are operating more than 30,000 installations of FARO's systems, worldwide. The Company's global headquarters is located in Lake Mary, FL; its European regional headquarters in Stuttgart, Germany; and its Asia/Pacific regional headquarters in Singapore. FARO has offices in Brazil, Mexico, United Kingdom, France, Spain, Italy, Poland, Netherlands, India, China, Malaysia, Vietnam, Thailand and Japan. More information is available at http://www.faro.com. FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended (in thousands, September 28, September September 28, September 29, except share data) 2013 29, 2012 2013 2012 SALES $ $ $ $ Product 55,014 49,274 162,670 159,130 Service 13,176 11,460 39,219 33,595 Total Sales 68,190 60,734 201,889 192,725 COST OF SALES Product 21,372 21,107 65,632 63,933 Service 7,997 7,323 23,685 22,242 Total Cost of Sales (exclusive of depreciation and 29,369 28,430 89,317 86,175 amortization, shown separately below) GROSS PROFIT 38,821 32,304 112,572 106,550 OPERATING EXPENSES: Selling 16,366 14,154 49,732 46,033 General and 7,275 7,266 22,616 22,028 administrative Depreciation and 1,699 1,796 5,268 5,164 amortization Research and 5,884 4,065 16,171 12,998 development Total operating 31,224 27,281 93,787 86,223 expenses INCOME FROM 7,597 5,023 18,785 20,327 OPERATIONS OTHER (INCOME) EXPENSE Interest income (19) (20) (54) (141) Other expense, net 809 (46) 1,428 215 Interest expense 2 2 3 22 INCOME BEFORE INCOME 6,805 5,087 17,408 20,231 TAX EXPENSE INCOME TAX EXPENSE 1,763 1,414 4,161 5,074 $ $ $ $ NET INCOME 5,042 3,673 13,247 15,157 NET INCOME PER SHARE $ $ $ $ - BASIC 0.29 0.22 0.78 0.90 NET INCOME PER SHARE $ $ $ $ - DILUTED 0.29 0.21 0.77 0.88 Weighted average 17,095,066 16,944,120 17,053,223 16,892,338 shares - Basic Weighted average 17,185,380 17,094,102 17,191,407 17,148,555 shares - Diluted FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS September 28, 2013 December 31, (in thousands, except share data) (unaudited) 2012 ASSETS Current Assets: Cash and cash equivalents $ 116,905 $ 93,233 Short-term investments 64,995 64,990 Accounts receivable, net 52,939 62,559 Inventories, net 48,973 48,894 Deferred income taxes, net 6,207 7,216 Prepaid expenses and other current 14,614 11,186 assets Total current assets 304,633 288,078 Property and Equipment: Machinery and equipment 34,519 32,236 Furniture and fixtures 6,748 6,516 Leasehold improvements 11,211 10,897 Property and equipment at cost 52,478 49,649 Less: accumulated depreciation and (38,143) (34,305) amortization Property and equipment, net 14,335 15,344 Goodwill 19,125 18,816 Intangible assets, net 7,972 7,048 Service inventory 18,137 19,125 Deferred income taxes, net 2,452 2,396 Total Assets $ 366,654 $ 350,807 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 8,902 $ 10,413 Accrued liabilities 18,786 18,216 Income taxes payable 324 4,886 Current portion of unearned service 19,526 19,460 revenues Customer deposits 2,324 2,662 Current portion of obligations under 4 45 capital leases Total current liabilities 49,866 55,682 Unearned service revenues - less 11,701 11,221 current portion Deferred tax liability, net 1,171 1,149 Obligations under capital leases - less 17 19 current portion Total Liabilities 62,755 68,071 Commitments and contingencies Shareholders' Equity: Common stock - par value $.001, 50,000,000 shares authorized; 17,795,117 and 17,653,879 issued; 18 18 17,114,882 and 16,973,644 outstanding, respectively Additional paid-in capital 188,413 181,094 Retained earnings 117,607 104,358 Accumulated other comprehensive income 6,936 6,341 Common stock in treasury, at cost - (9,075) (9,075) 680,235 shares Total Shareholders' Equity 303,899 282,736 Total Liabilities and Shareholders' $ 366,654 $ 350,807 Equity FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended (in thousands) September 28, 2013 September 29, 2012 CASH FLOWS FROM: OPERATING ACTIVITIES: Net income $ $ 13,247 15,157 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,268 5,164 Compensation for stock options 3,237 2,956 and restricted stock units Provision for (net recovery of) 426 (155) bad debts Deferred income tax expense 996 (670) (benefit) expense Change in operating assets and liabilities: Decrease (increase) in: Accounts receivable 8,951 6,398 Inventories, net 620 (5,998) Prepaid expenses and other (3,365) (1,231) current assets Income tax benefit from exercise (814) (1,135) of stock options Increase (decrease) in: Accounts payable and accrued (925) (7,307) liabilities Income taxes payable (3,700) 82 Customer deposits (258) (1,707) Unearned service revenues 512 1,730 Net cash provided by 24,195 13,284 operating activities INVESTING ACTIVITIES: Purchases of property and (1,883) (3,139) equipment Payments for intangible assets (1,787) (772) Net cash used in (3,670) (3,911) investing activities FINANCING ACTIVITIES: Payments on capital leases (76) (119) Income tax benefit from exercise 814 1,135 of stock options Proceeds from issuance of stock, 3,267 6,107 net Net cash provided by 4,005 7,123 financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH (858) (531) EQUIVALENTS INCREASE IN CASH AND CASH 23,672 15,965 EQUIVALENTS CASH AND CASH EQUIVALENTS, 93,233 64,540 BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS, END $ $ OF PERIOD 116,905 80,505 FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended Nine Months Ended (in thousands) September 28, September September September 2013 29, 2012 28, 2013 29, 2012 $ $ $ $ Net income 5,042 3,673 13,247 15,157 Currency translation 3,558 1,303 597 (385) adjustments Comprehensive $ $ $ $ income 8,600 4,976 13,844 14,772 SOURCE FARO Technologies, Inc. Website: http://www.faro.com Contact: Keith Bair, Senior Vice President and CFO, keith.bair@FARO.com, 407-333-9911
FARO Reports Third Quarter Revenue Growth of 12%, EPS Growth of 38%
Press spacebar to pause and continue. Press esc to stop.