FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
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| Years Ended December 31, | |||||||
(in thousands) | 2018 |
| 2017 |
| 2016 | |||
CASH FLOWS FROM: |
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OPERATING ACTIVITIES: |
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Net income (loss) | $ | 4,930 |
| $ | (14,516) |
| $ | 11,107 |
Adjustments to reconcile net income (loss) to net cash provided by
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Depreciation and amortization | 18,313 |
| 16,588 |
| 13,868 | |||
Compensation for stock options and restricted stock units | 7,620 |
| 6,450 |
| 5,374 | |||
Provision for bad debts | 907 |
| 370 |
| 898 | |||
Loss on disposal of assets | 192 |
| 451 |
| 860 | |||
Provision for excess and obsolete inventory | 5,757 |
| 1,734 |
| 4,134 | |||
Deferred income tax benefit | 689 |
| (1,740) |
| (2,002) | |||
Income tax benefit from exercise of stock options | — |
| — |
| (357) | |||
Change in operating assets and liabilities: |
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(Increase) decrease in: |
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Accounts receivable, net | (15,995) |
| (6,766) |
| 6,727 | |||
Inventories | (20,532) |
| (10,926) |
| (6,729) | |||
Prepaid expenses and other assets | (11,310) |
| (253) |
| 3,588 | |||
Increase (decrease) in: |
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Accounts payable and accrued liabilities | 11,774 |
| 1,103 |
| 534 | |||
Income taxes payable | (3,286) |
| 20,011 |
| 618 | |||
Customer deposits | 513 |
| (461) |
| (1,310) | |||
Unearned service revenues | 7,330 |
| (1,690) |
| 273 | |||
Net cash provided by operating activities | 6,902 |
| 10,355 |
| 37,583 | |||
INVESTING ACTIVITIES: |
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(Purchases of) Proceeds from sale of investments | (14,000) |
| 32,000 |
| — | |||
| Purchases of property and equipment | (11,021) |
| (8,970) |
| (7,720) | |||
| Payments for intangible assets | (1,900) |
| (2,377) |
| (1,657) | |||
| Acquisition of business, net of cash received | (27,646) |
| (5,596) |
| (27,708) | |||
| Equity investments | (1,786) |
| — |
| — | |||
| Net cash (used in) provided by investing activities | (56,353) |
| 15,057 |
| (37,085) | |||
| FINANCING ACTIVITIES: |
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| Payments on capital leases | (157) |
| (108) |
| (8) | |||
| Payments of contingent consideration for acquisitions | (888) |
| (521) |
| (774) | |||
| Income tax benefit from exercise of stock options | — |
| — |
| 357 | |||
| Proceeds from issuance of stock related to stock option exercises | 20,855 |
| 3,594 |
| 674 | |||
| Net cash provided by financing activities | 19,810 |
| 2,965 |
| 249 | |||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
| (2,536) |
| 6,414 |
| (1,934) | |||
| (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (32,177) |
| 34,791 |
| (1,187) | |||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 140,960 |
| 106,169 |
| 107,356 | |||
| CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 108,783 |
| $ | 140,960 |
| $ | 106,169 |
