| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||
(dollars in thousands) | 2019 |
| 2018 |
| 2019 |
| 2018 | ||||
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|
|
|
|
|
| ||||
Emerging Verticals total sales, as reported | $ | 10,615 |
| $ | 11,813 |
| $ | 32,553 |
| $ | 30,205 |
GSA sales adjustment (1) | — |
| — |
| 2,062 |
| — | ||||
Non-GAAP Emerging Verticals total sales | $ | 10,615 |
| $ | 11,813 |
| $ | 34,615 |
| $ | 30,205 |
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|
| (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"). 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"). On July 15, 2019, we submitted a report to the GSA and its Office of Inspector General setting forth the findings of the Review. Based on the results of the Review, in second quarter 2019 we reduced our total sales by an incremental $5.8 million (the "GSA sales adjustment"). |
FARO TECHNOLOGIES, INC. AND SUBSIDIARIES | |||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA | |||||||||||
(UNAUDITED) | |||||||||||
| |||||||||||
| Three months ended | ||||||||||
(in thousands) | March 31,
|
| June 30,
|
| September 30,
|
| December 31,
| ||||
Net income (loss) | $ | 455 |
| $ | 1,205 |
| $ | (2,488) |
| $ | 5,758 |
Interest (income) expense, net | (73) |
| (87) |
| (96) |
| 313 | ||||
Income tax expense (benefit) | 127 |
| 300 |
| (354) |
| (445) | ||||
Depreciation and amortization | 4,343 |
| 4,377 |
| 4,747 |
| 4,846 | ||||
EBITDA | 4,852 |
| 5,795 |
| 1,809 |
| 10,472 | ||||
Loss on foreign currency transactions | 184 |
| 509 |
| 226 |
| 220 | ||||
Stock-based compensation | 1,551 |
| 2,000 |
| 2,166 |
| 1,904 | ||||
GSA sales adjustment (1) | — |
| — |
| — |
| 4,789 | ||||
Inventory reserve charge (2) | — |
| — |
| 4,734 |
| — | ||||
Adjusted EBITDA | $ | 6,587 |
| $ | 8,304 |
| $ | 8,935 |
| $ | 17,385 |