FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

March 31, 2019

(unaudited)

December 31,
2018

ASSETS

Current assets:

Cash and cash equivalents

$

110,696

$

108,783

Short-term investments

24,831

24,793

Accounts receivable, net

76,237

88,927

Inventories, net

74,586

65,444

Prepaid expenses and other current assets

24,210

28,795

Total current assets

310,560

316,742

Property and equipment:

Machinery and equipment

80,586

76,048

Furniture and fixtures

6,141

6,749

Leasehold improvements

20,311

20,304

Property and equipment at cost

107,038

103,101

Less: accumulated depreciation and amortization

(76,188)

(72,684)

Property and equipment, net

30,850

30,417

Operating lease right-of-use asset

18,876

—

Goodwill

71,097

67,274

Intangible assets, net

29,507

33,054

Service and sales demonstration inventory, net

38,351

39,563

Deferred income tax assets, net

14,696

14,719

Other long-term assets

4,416

4,475

Total assets

$

518,353

$

506,244

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

14,351

$

20,093

Accrued liabilities

31,389

36,327

Income taxes payable

3,747

5,081

Current portion of unearned service revenues

34,189

32,878

Customer deposits

2,847

3,144

Lease liability

6,446

—

Total current liabilities

92,969

97,523

Unearned service revenues - less current portion

16,319

15,505

Lease liability - less current portion

14,363

—

Deferred income tax liabilities

2,541

736

Income taxes payable - less current portion

12,247

12,247

Other long-term liabilities

3,326

3,624

Total liabilities

141,765

129,635

Shareholders' equity:

Common stock - par value $.001, 50,000,000 shares authorized; 18,731,586 and 18,676,059 issued,
respectively; 17,317,875 and 17,253,011 outstanding, respectively

19

19

Additional paid-in capital

252,840

251,329

Retained earnings

175,178

175,353

Accumulated other comprehensive loss

(20,047)

(18,483)

Common stock in treasury, at cost; 1,413,711 and 1,423,048 shares, respectively

$

(31,402)

$

(31,609)

Total shareholders' equity

$

376,588

$

376,609

Total liabilities and shareholders' equity

$

518,353

$

506,244