FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

Three Months Ended

(in thousands)

March 31, 2019

March 31, 2018

Cash flows from:

Operating activities:

Net income

$

152

$

455

Adjustments to reconcile net income to net cash provided by (used in) operating
activities:

Depreciation and amortization

4,749

4,343

Stock-based compensation

2,564

1,553

(Recoveries) provisions for bad debts, net

(100)

24

Loss on disposal of assets

57

127

Provision for excess and obsolete inventory

896

312

Deferred income tax expense (benefit)

8

(128)

Change in operating assets and liabilities:

Decrease (Increase) in:

Accounts receivable

12,410

1,808

Inventories

(10,908)

(5,208)

Prepaid expenses and other current assets

4,463

(936)

(Decrease) Increase in:

Accounts payable, accrued liabilities, and lease liability

(9,172)

(4,846)

Income taxes payable

(1,323)

(2,571)

Customer deposits

(310)

(213)

Unearned service revenues

2,324

1,231

Net cash provided by (used in) operating activities

5,810

(4,049)

Investing activities:

Purchases of property and equipment

(1,543)

(2,243)

Payments for intangible assets

(529)

(650)

Acquisition of businesses

—

(3,966)

Net cash used in investing activities

(2,072)

(6,859)

Financing activities:

Payments on finance leases

(90)

(46)

Payments of contingent consideration for acquisitions

(250)

—

Payments for taxes related to net share settlement of equity awards

(1,138)

—

Proceeds from issuance of stock related to stock option exercises

292

6,785

Net cash (used in) provided by financing activities

(1,186)

6,739

Effect of exchange rate changes on cash and cash equivalents

(639)

2,035

Increase (decrease) in cash and cash equivalents

1,913

(2,134)

Cash and cash equivalents, beginning of period

108,783

140,960

Cash and cash equivalents, end of period

$

110,696

$

138,826