FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

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

(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

2024

2023

2024

2023

Net loss

$            (289)

$        (8,756)

$        (8,080)

$      (58,165)

Interest expense, net

1,023

691

2,615

2,529

Income tax expense

1,255

1,520

3,912

4,869

Depreciation and amortization

3,921

3,803

11,709

11,728

EBITDA

5,910

(2,742)

10,156

(39,039)

Other expense (income), net

175

(381)

157

(125)

Stock-based compensation

2,768

3,692

8,471

12,276

Restructuring and other costs ⁽¹⁾

—

2,951

4,071

17,663

Adjusted EBITDA

$          8,853

$          3,520

$        22,855

$        (9,225)

Adjusted EBITDA margin ⁽²⁾

10.7 %

4.1 %

9.2 %

(3.5) %

⁽¹⁾   

On February 14, 2020, our Board of Directors approved 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. On February 7, 2023, our Board of Directors approved the Integration Plan, which is intended to streamline and simplify operations, particularly around our recent acquisitions and the resulting redundant operations and offerings. The Restructuring and other costs primarily consist of severance and related benefits associated with the Restructuring Plan, Integration Plan, and executive transitions.

⁽²⁾ 

Calculated as Adjusted EBITDA as a percentage of total sales.

FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

KEY SALES MEASURES

(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

(in thousands)

2024

2023

2024

2023

Total sales to external customers as reported

Americas ⁽¹⁾

$          40,353

$          41,033

$        117,748

$        124,734

EMEA ⁽¹⁾

25,461

25,621

75,496

74,641

APAC ⁽¹⁾

16,749

20,159

55,648

60,616

$          82,563

$          86,813

$        248,892

$        259,991

Three Months Ended September 30,

(in thousands)

2024

2023

2024

2023

Total sales to external customers in constant currency ⁽²⁾

Americas ⁽¹⁾

$          40,707

$          40,879

$        118,126

$        124,682

EMEA ⁽¹⁾

24,278

24,954

73,127

73,060

APAC ⁽¹⁾

16,497

19,883

55,441

58,437

$          81,482

$          85,716

$        246,694

$        256,179

Regions represent North America and South America ("Americas"); Europe, the Middle East, and Africa ("EMEA"); and the Asia-Pacific ("APAC").

⁽²⁾    

We compare the change in the sales from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rate in effect during the last day of the prior comparable period, rather than the actual exchange rates in effect during the respective periods.