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Advanced Energy Announces Third Quarter 2019 Results

November 12, 2019 GMT

FORT COLLINS, Colo.--(BUSINESS WIRE)--Nov 12, 2019--

Advanced Energy Industries, Inc. (Nasdaq: AEIS), today announced financial results for the third quarter ended September 30, 2019.

“We delivered a strong third quarter, with both organic revenue and non-GAAP earnings above the high-end of our guidance ranges. Demand for our products in the semi equipment market is improving on increased foundry/logic investments and the beginning of investment in memory,” said Yuval Wasserman, president and CEO. “We closed the acquisition of Artesyn Embedded Power slightly ahead of schedule, adding incremental revenue and non-GAAP earnings to the third quarter. We have started the integration process and I am pleased with our progress.”

Third Quarter Results

Sales were $175.1 million in the third quarter of 2019 compared with $134.8 million in the second quarter of 2019 and $173.1 million in the third quarter of 2018.

GAAP net income from continuing operations was $7.3 million or $0.19 per diluted share, compared with $23.4 million or $0.61 per diluted share in the prior quarter, and $35.2 million or $0.90 per diluted share in the third quarter of 2018.

Non-GAAP net income was $20.9 million or $0.54 per diluted share in the third quarter of 2019. This compares with $17.2 million or $0.45 per diluted share in the second quarter of 2019, and $41.2 million or $1.05 per diluted share in the third quarter of 2018. Non-GAAP net income in the third quarter of 2019 included $2.9 million or $0.07 per diluted share earnings contribution, including financing cost, from the acquisition of Artesyn Embedded Power.

A reconciliation of non-GAAP measures is provided in the tables below.

The company generated $10.5 million of operating cash from continuing operations in the quarter.

Discontinued Operations

The company’s financial statements for all periods presented reflect results for the continuing precision power business, with the discontinued inverter business included in discontinued operations for all purposes. Further financial detail regarding the amounts related to the discontinued inverter business are available in the company’s 2018 Annual Report on Form 10‑K.

Fourth Quarter 2019 Guidance

Based on the company’s current view, beliefs and assumptions, guidance for the fourth quarter of 2019 is within the following ranges.

 

 

 

 

 

 

 

 

Q4 2019

Revenues

$310M +/- $15M

GAAP EPS from continuing operations

$0.31 +/- $0.12

Non-GAAP EPS

$0.68 +/- $0.12

Conference Call

Management will host a conference call on Tuesday, November 12, 2019 at 6:30 a.m. Mountain Time/ 8:30 a.m. Eastern Time to discuss Advanced Energy’s financial results. Domestic callers may access this conference call by dialing 855‑232‑8958. International callers may access the call by dialing +1 315‑625‑6980. Participants will need to provide the operator with Conference ID Number 2569664, which has been reserved for this call. A webcast will also be available on the company’s Investor Relations web page at ir.advanced-energy.com.

About Advanced Energy

Advanced Energy (Nasdaq: AEIS) is a global leader in the design and manufacturing of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. AE’s power solutions enable customer innovation in complex applications for a wide range of industries including semiconductor equipment, industrial, manufacturing, telecommunications, data center computing and healthcare. With engineering know-how and responsive service and support around the globe, the company builds collaborative partnerships to meet technology advances, propel growth for its customers and innovate the future of power. Advanced Energy has devoted more than three decades to perfecting power for its global customers and is headquartered in Fort Collins, Colorado, USA. For more information, visit www.advancedenergy.com.

Advanced Energy | Precision. Power. Performance.

Non-GAAP Measures

This release includes GAAP and non-GAAP income and per-share earnings data and other GAAP and non-GAAP financial information. Advanced Energy’s non-GAAP measures exclude the impact of non-cash related charges such as stock-based compensation and amortization of intangible assets, as well as discontinued operations, and non-recurring items such as acquisition-related costs and restructuring expenses. The non-GAAP measures included in this release are not in accordance with, or an alternative for, similar measures calculated under generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Advanced Energy believes that these non-GAAP measures provide useful information to management and investors to evaluate business performance without the impacts of certain non-cash charges and other cash charges which are not part of the company’s usual operations. The company uses these non-GAAP measures to assess performance against business objectives, make business decisions, develop budgets, forecast future periods, assess trends and evaluate financial impacts of various scenarios. In addition, management’s incentive plans include these non-GAAP measures as criteria for achievements. Additionally, the company believes that these non-GAAP measures, in combination with its financial results calculated in accordance with GAAP, provide investors with additional perspective. While some of the excluded items may be incurred and reflected in the company’s GAAP financial results in the foreseeable future, the company believes that the items excluded from certain non-GAAP measures do not accurately reflect the underlying performance of its continuing operations for the period in which they are incurred. The use of non-GAAP measures has limitations in that such measures do not reflect all of the amounts associated with the company’s results of operations as determined in accordance with GAAP, and these measures should only be used to evaluate the company’s results of operations in conjunction with the corresponding GAAP measures. Please refer to the Form 8‑K regarding this release furnished today to the Securities and Exchange Commission.

Forward-Looking Statements

The company’s guidance with respect to anticipated financial results for the fourth quarter ending December 31, 2019, potential future growth and profitability, our future business mix, expectations regarding future market trends and the company’s future performance within specific markets and other statements herein or made on the above-announced conference call that are not historical information are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: (a) the effects of global macroeconomic conditions upon demand for our products and services; (b) the volatility and cyclicality of the industries the company serves, particularly the semiconductor industry; (c) delays in capital spending by end-users in our served markets; (d) the risks and uncertainties related to the acquisition and integration of Artesyn Embedded Power; (e) the accuracy of the company’s estimates related to fulfilling solar inverter product warranty and post-warranty obligations; (f) the company’s ability to realize its plan to avoid additional costs after the solar inverter wind-down; (g) the accuracy of the company’s assumptions on which its financial statement projections are based; (h) the impact of product price changes, which may result from a variety of factors; (i) the timing of orders received from customers; (j) the company’s ability to realize benefits from cost improvement efforts including avoided costs, restructuring plans and inorganic growth; (k) the company’s ability to obtain in a timely manner the materials necessary to manufacture its products; (l) unanticipated changes to management’s estimates, reserves or allowances; (m) changes and adjustments to the tax expense and benefits related to the U.S. tax reform that was enacted in late 2017; and (n) the effects of U.S. government trade and export restrictions, Chinese retaliatory trade actions, and other governmental action related to tariffs upon the demand for our, and our customers’, products and services and the U.S. economy. These and other risks are described in Advanced Energy’s Form 10‑K, Forms 10‑Q and other reports and statements filed with the Securities and Exchange Commission (the “SEC”). These reports and statements are available on the SEC’s website at www.sec.gov. Copies may also be obtained from Advanced Energy’s investor relations page at ir.advanced-energy.com or by contacting Advanced Energy’s investor relations at 970‑407‑6555. Forward-looking statements are made and based on information available to the company on the date of this press release. Aspirational goals and targets discussed on the conference call or in the presentation materials should not be interpreted in any respect as guidance. The company assumes no obligation to update the information in this press release.

ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)

          

 

 

 

   

 

   

 

    

 

   

 

  

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

 

September 30,

 

 

2019

 

2018

 

2019

 

 

2019

 

2018

Sales:

 

 

   

 

   

 

    

 

   

 

  

Product

 

$

 

148,138

 

$

 

144,843

 

$

 

106,193

  

$

 

366,443

 

$

 

485,287

Service

 

 

26,989

 

 

 

28,239

 

 

 

28,617

 

  

 

84,237

 

 

 

79,444

 

Total sales

 

 

175,127

 

 

 

173,082

 

 

 

134,810

 

  

 

450,680

 

 

 

564,731

 

Cost of sales:

 

 

   

 

   

 

    

 

   

 

  

Product

 

 

87,536

 

 

 

73,019

 

 

 

56,113

 

  

 

204,450

 

 

 

233,778

 

Service

 

 

14,100

 

 

 

14,524

 

 

 

14,571

 

  

 

42,873

 

 

 

40,534

 

Total cost of sales

 

 

101,636

 

 

 

87,543

 

 

 

70,684

 

  

 

247,323

 

 

 

274,312

 

Gross profit

 

 

73,491

 

 

 

85,539

 

 

 

64,126

 

  

 

203,357

 

 

 

290,419

 

 

 

42.0

%

 

 

49.4

%

 

 

47.6

%

  

 

45.1

%

 

 

51.4

%

Operating expenses:

 

 

   

 

   

 

    

 

   

 

  

Research and development

 

 

24,546

 

 

 

18,451

 

 

 

21,840

 

  

 

67,675

 

 

 

55,283

 

Selling, general and administrative

 

 

36,401

 

 

 

25,386

 

 

 

27,612

 

  

 

93,027

 

 

 

78,792

 

Amortization of intangible assets

 

 

3,002

 

 

 

1,437

 

 

 

1,874

 

  

 

6,849

 

 

 

3,958

 

Restructuring expense

 

 

152

 

 

 

403

 

 

 

1,795

 

  

 

3,620

 

 

 

403

 

Total operating expenses

 

 

64,101

 

 

 

45,677

 

 

 

53,121

 

  

 

171,171

 

 

 

138,436

 

Operating income

 

 

9,390

 

 

 

39,862

 

 

 

11,005

 

  

 

32,186

 

 

 

151,983

 

Other income (expense), net

 

 

1,361

 

 

 

401

 

 

 

15,545

 

  

 

17,649

 

 

 

(58

)

Income from continuing operations before income taxes

 

 

10,751

 

 

 

40,263

 

 

 

26,550

 

  

 

49,835

 

 

 

151,925

 

Provision (benefit) for income taxes

 

 

3,495

 

 

 

5,106

 

 

 

3,177

 

  

 

3,819

 

 

 

23,998

 

Income from continuing operations, net of income taxes

 

 

7,256

 

 

 

35,157

 

 

 

23,373

 

  

 

46,016

 

 

 

127,927

 

Income (loss) from discontinued operations, net of income taxes

 

 

375

 

 

 

(371

)

 

 

8,324

 

  

 

8,690

 

 

 

(226

)

Net income

 

 

7,631

 

 

 

34,786

 

 

 

31,697

 

  

 

54,706

 

 

 

127,701

 

Income from continuing operations attributable to non-controlling interest

 

 

10

 

 

 

7

 

 

 

11

 

  

 

29

 

 

 

82

 

Net income attributable to Advanced Energy Industries, Inc.

 

$

 

7,621

 

 

$

 

34,779

 

 

$

 

31,686

 

  

$

 

54,677

 

 

$

 

127,619

 

 

 

 

   

 

   

 

    

 

   

 

  

Basic weighted-average common shares outstanding

 

 

38,313

 

 

 

38,970

 

 

 

38,274

 

  

 

38,258

 

 

 

39,309

 

Diluted weighted-average common shares outstanding

 

 

38,489

 

 

 

39,195

 

 

 

38,462

 

  

 

38,457

 

 

 

39,594

 

 

 

 

   

 

   

 

    

 

   

 

  

Earnings per share attributable to Advanced Energy Industries, Inc:

 

 

   

 

   

 

    

 

   

 

  

 

 

 

   

 

   

 

    

 

   

 

  

Continuing operations:

 

 

   

 

   

 

    

 

   

 

  

Basic earnings per share

 

$

 

0.19

 

 

$

 

0.90

 

 

$

 

0.61

 

  

$

 

1.20

 

 

$

 

3.25

 

Diluted earnings per share

 

$

 

0.19

 

 

$

 

0.90

 

 

$

 

0.61

 

  

$

 

1.20

 

 

$

 

3.23

 

 

 

 

   

 

   

 

    

 

   

 

  

Discontinued operations:

 

 

   

 

   

 

    

 

   

 

  

Basic earnings per share

 

$

 

0.01

 

 

$

 

(0.01

)

 

$

 

0.22

 

  

$

 

0.23

 

 

$

 

(0.01

)

Diluted earnings per share

 

$

 

0.01

 

 

$

 

(0.01

)

 

$

 

0.22

 

  

$

 

0.23

 

 

$

 

(0.01

)

 

 

 

   

 

   

 

    

 

   

 

  

Net income:

 

 

   

 

   

 

    

 

   

 

  

Basic earnings per share

 

$

 

0.20

 

 

$

 

0.89

 

 

$

 

0.83

 

 

 

$

 

1.43

 

 

 $

 

3.25

 

Diluted earnings per share

$

 

0.20

 

 

$

 

0.89

 

 

$

 

0.82

 

 

 

$

 

1.42

 

 

$

 

3.23

 

ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

 

 

 

 

 

September 30,

 

December 31,

 

 

2019

 

2018

 

 

Unaudited

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

340,402

 

$

349,301

Marketable securities

 

 

747

 

 

2,470

Accounts and other receivable, net

 

 

250,151

 

 

100,442

Inventories, net

 

 

240,699

 

 

97,987

Income taxes receivable

 

 

2,124

 

 

2,220

Other current assets

 

 

45,757

 

 

10,173

Current assets of discontinued operations

 

 

84

 

 

5,855

Total current assets

 

 

879,964

 

 

568,448

 

 

 

 

 

 

 

Property and equipment, net

 

 

104,568

 

 

31,269

Operating lease right-of-use assets

 

 

111,193

 

 

 

 

 

 

 

 

 

Deposits and other assets

 

 

20,650

 

 

6,874

Goodwill and intangibles, net

 

 

421,801

 

 

156,810

Deferred income tax assets

 

 

56,488

 

 

47,099

Non-current assets of discontinued operations

 

 

755

 

 

5,984

Total assets

 

$

1,595,419

 

$

816,484

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

210,647

 

$

39,646

Other accrued expenses

 

 

109,192

 

 

65,377

Current portion of debt

 

 

17,500

 

 

Current portion of operating lease liability

 

 

17,648

 

 

Current liabilities of discontinued operations

 

 

910

 

 

5,286

Total current liabilities

 

 

355,897

 

 

110,309

 

 

 

 

 

 

 

Long-term debt

 

 

325,769

 

 

Non-current liabilities of continuing operations

 

 

252,540

 

 

88,158

Non-current liabilities of discontinued operations

 

 

1,045

 

 

10,715

Long-term liabilities

 

 

579,354

 

 

98,873

 

 

 

 

 

 

 

Total liabilities

 

 

935,251

 

 

209,182

 

 

 

 

 

 

 

Advanced Energy stockholders’ equity

 

 

659,627

 

 

606,790

Noncontrolling interest

 

 

541

 

 

512

Stockholders’ equity

 

 

660,168

 

 

607,302

Total liabilities and stockholders’ equity

 

$

1,595,419

 

$

816,484

December 31, 2018 amounts are derived from the December 31, 2018 audited Consolidated Financial Statements.

ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)

  

 

 

 

  

 

 

 

 

Nine Months Ended September 30,

 

 

2019

 

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

  

 

 

Net income

 

$

54,706

 

 

$

127,701

 

Income from discontinued operations, net of income taxes

 

 

8,690

 

 

 

(226

)

Income from continuing operations, net of income taxes

 

 

46,016

 

 

 

127,927

 

 

 

 

  

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

  

 

 

Depreciation and amortization

 

 

15,301

 

 

 

9,488

 

Stock-based compensation expense

 

 

5,053

 

 

 

7,461

 

Provision for deferred income taxes

 

 

2,825

 

 

 

Gain on sale of central inverter service business

 

 

(14,804

)

 

 

Net loss on disposal of assets

 

 

104

 

 

 

167

 

Changes in operating assets and liabilities, net of assets acquired

 

 

(25,637

)

 

 

(26,560

)

Net cash provided by operating activities from continuing operations

 

 

28,858

 

 

 

118,483

 

Net cash provided by operating activities from discontinued operations

 

 

317

 

 

 

(4,550

)

Net cash provided by operating activities

 

 

29,175

 

 

 

113,933

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

  

 

 

Purchases of marketable securities

 

  

 

(93

)

Proceeds from sale of marketable securities

 

 

1,742

 

 

 

6

 

Acquisitions, net of cash acquired

 

 

(365,798

)

 

 

(93,801

)

Issuance of notes receivable

 

 

(2,800

)

 

 

Purchases of property and equipment

 

 

(15,681

)

 

 

(16,586

)

Net cash used in investing activities from continuing operations

 

 

(382,537

)

 

 

(110,474

)

Net cash used in investing activities from discontinued operations

 

  

 

Net cash used in investing activities

 

 

(382,537

)

 

 

(110,474

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

  

 

 

Net Proceeds from long-term borrowings

 

 

347,486

 

 

 

Payments on long-term borrowings

 

 

(4,375

)

 

 

Purchase and retirement of common stock

 

  

 

(69,021

)

Net payments related to stock-based award activities

 

 

(714

)

 

 

(2,636

)

Net cash provided by financing activities from continuing operations

 

 

342,397

 

 

 

(71,657

)

Net cash provided by financing activities from discontinued operations

 

  

 

Net cash provided by financing activities

 

 

342,397

 

 

 

(71,657

)

EFFECT OF CURRENCY TRANSLATION ON CASH

 

 

(3,185

)

 

 

(722

)

DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(14,150

)

 

 

(68,920

)

CASH AND CASH EQUIVALENTS, beginning of period

 

 

354,552

 

 

 

415,037

 

CASH AND CASH EQUIVALENTS, end of period

 

 

340,402

 

 

 

346,117

 

Less cash and cash equivalents from discontinued operations

 

  

 

7,444

 

CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period

 

$

340,402

 

 

$

338,673

 

ADVANCED ENERGY INDUSTRIES, INC.
SUPPLEMENTAL INFORMATION (UNAUDITED)
(in thousands)

 

 

 

 

 

 

Net Sales by Product Line

Three Months Ended

Nine Months Ended

 

September 30,

June 30,

September 30,

 

 

2019

 

2018

 

2019

 

 

2019

 

2018

Semiconductor Equipment

$

96,426

$

119,969

$

90,058

$

277,911

$

426,380

Telecom & Networking

 

10,016

 

10,016

Data Center Computing

 

13,498

 

13,498

Industrial & Medical

 

55,187

 

53,113

 

44,752

 

149,255

 

138,351

Total

$

175,127

$

173,082

$

134,810

$

450,680

$

564,731

 

 

 

 

 

 

Net Sales by Geographic Region

Three Months Ended

Nine Months Ended

 

September 30,

June 30,

September 30,

 

2019

 

2018

 

2019

 

 

2019

 

2018

North America

$

83,632

$

85,728

$

61,393

$

203,531

$

295,567

Asia

 

66,157

 

61,691

 

50,962

 

175,554

 

198,020

Europe

 

25,008

 

25,538

 

22,092

 

70,526

 

70,802

Other Countries

 

330

 

125

 

363

 

1,069

 

342

Total

$

175,127

$

173,082

$

134,810

$

450,680

$

564,731

ADVANCED ENERGY INDUSTRIES, INC.
SELECTED OTHER DATA (UNAUDITED)
(in thousands)

 

 

 

 

 

 

Reconciliation of Non-GAAP measure - operating
expenses and operating income, excluding certain
items

Three Months Ended

Nine Months Ended

 

September 30,

June 30,

September 30,

 

 

2019

 

2018

 

2019

 

 

2019

 

2018

Gross profit from continuing operations, as reported

$

73,491

 

$

85,539

 

$

64,126

 

$

203,357

 

$

290,419

 

Adjustments to gross profit:

 

 

 

 

 

Stock-based compensation

 

77

 

 

76

 

 

55

 

 

365

 

 

576

 

Facility expansion and relocation costs

 

1,342

 

 

725

 

 

150

 

 

1,662

 

 

974

 

Acquisition-related costs

 

1,506

 

 

158

 

 

1,506

 

 

158

 

Non-GAAP gross profit

 

76,416

 

 

86,498

 

 

64,331

 

 

206,890

 

 

292,127

 

 

 

 

 

 

 

Operating expenses from continuing operations, as reported

 

64,101

 

 

45,677

 

 

53,121

 

 

171,171

 

 

138,436

 

Adjustments:

 

 

 

 

 

Amortization of intangible assets

 

(3,002

)

 

(1,437

)

 

(1,874

)

 

(6,849

)

 

(3,958

)

Stock-based compensation

 

(840

)

 

(948

)

 

(883

)

 

(4,688

)

 

(6,885

)

Acquisition-related costs

 

(6,398

)

 

(705

)

 

(1,531

)

 

(9,440

)

 

(1,310

)

Facility expansion and relocation costs

 

(223

)

 

(29

)

 

(297

)

 

(518

)

Restructuring charges

 

(152

)

 

(403

)

 

(1,795

)

 

(3,620

)

 

(403

)

Non-GAAP operating expenses

 

53,486

 

 

42,155

 

 

47,038

 

 

146,277

 

 

125,362

 

Non-GAAP operating income

$

22,930

 

$

44,343

 

$

17,293

 

$

60,613

 

$

166,765

 

 

 

 

 

 

 

Reconciliation of Non-GAAP measure - operating
expenses and operating income, excluding certain
items

Three Months Ended

Nine Months Ended

 

September 30,

June 30,

September 30,

 

2019

2018

2019

2019

2018

Gross profit from continuing operations, as reported

42.0

%

49.4

%

47.6

%

45.1

%

51.4

%

Adjustments to gross profit:

 

 

 

 

 

Stock-based compensation

0.1

 

0.1

 

Facility expansion and relocation costs

0.8

 

0.5

 

0.1

 

0.4

 

0.2

 

Acquisition-related costs

0.8

 

0.1

 

0.3

 

Non-GAAP gross profit

43.6

 

50.0

 

47.7

 

45.9

 

51.7

 

 

 

 

 

 

 

Operating expenses from continuing operations, as reported

36.6

 

26.4

 

39.4

 

38.0

 

24.5

 

Adjustments:

 

 

 

 

 

Amortization of intangible assets

(1.7

)

(0.8

)

(1.4

)

(1.5

)

(0.7

)

Stock-based compensation

(0.5

)

(0.6

)

(0.7

)

(1.0

)

(1.2

)

Acquisition-related costs

(3.7

)

(0.4

)

(1.1

)

(2.1

)

(0.2

)

Facility expansion and relocation costs

(0.1

)

(0.1

)

(0.1

)

Restructuring charges

(0.1

)

(0.2

)

(1.3

)

(0.8

)

(0.1

)

Non-GAAP operating expenses

30.5

 

24.4

 

34.9

 

32.5

 

22.2

 

Non-GAAP operating income

13.1

%

25.6

%

12.8

%

13.4

%

29.5

%

 

 

 

 

 

 

Reconciliation of Non-GAAP measure - income
excluding certain items

Three Months Ended

Nine Months Ended

 

September 30,

June 30,

September 30,

 

 

2019

 

 

2018

 

2019

 

 

2019

 

2018

Income from continuing operations, less noncontrolling interest, net of income taxes

$

7,246

 

$

35,150

 

$

23,362

 

$

45,987

 

$

127,845

 

Adjustments:

 

 

 

 

 

Amortization of intangible assets

 

3,002

 

 

1,437

 

 

1,874

 

 

6,849

 

 

3,958

 

Acquisition-related costs

 

7,904

 

 

863

 

 

1,531

 

 

10,946

 

 

1,468

 

Facility expansion and relocation costs

 

1,565

 

 

754

 

 

150

 

 

1,959

 

 

1,492

 

Restructuring charges

 

152

 

 

403

 

 

1,795

 

 

3,620

 

 

403

 

Tax Cuts and Jobs Act Impact

 

2,398

 

 

4,251

 

Central inverter services business sale

 

(14,804

)

 

(14,804

)

Acquisition transition services

 

(29

)

 

(29

)

Tax effect of Non-GAAP adjustments

 

326

 

 

(598

)

 

2,536

 

 

2,011

 

 

(1,145

)

Non-GAAP income, net of income taxes, excluding stock-based compensation

 

20,166

 

 

40,407

 

 

16,444

 

 

56,539

 

 

138,272

 

Stock-based compensation, net of taxes

 

702

 

 

779

 

 

722

 

 

3,887

 

 

5,716

 

Non-GAAP income, net of income taxes

$

20,868

 

$

41,186

 

$

17,166

 

$

60,426

 

$

143,988

 

 

 

 

 

 

 

Reconciliation of Non-GAAP measure - per share
earnings excluding certain items

Three Months Ended

Nine Months Ended

 

September 30,

June 30,

September 30,

 

 

2019

 

2018

 

2019

 

 

2019

 

2018

Diluted earnings per share from continuing operations, as reported

$

0.19

$

0.90

$

0.61

 

$

1.20

$

3.23

Add back (subtract):

 

 

 

 

 

per share impact of Non-GAAP adjustments, net of tax

 

0.35

 

0.15

 

(0.16

)

 

0.37

 

0.41

Non-GAAP per share earnings

$

0.54

$

1.05

$

0.45

 

$

1.57

$

3.64

ADVANCED ENERGY INDUSTRIES, INC.
SELECTED OTHER DATA (UNAUDITED)
(in thousands)

 

 

 

Reconciliation of Q4 2019 Guidance

 

 

 

Low End

High End

 

 

 

Revenue

$295 million

$325 million

 

 

 

Reconciliation of Non-GAAP earnings per share

 

 

GAAP earnings per share

$

0.19

 

$

0.43

 

Stock-based compensation

 

0.06

 

 

0.05

 

Amortization of intangible assets

 

0.14

 

 

0.14

 

Amortization of Acquisition Fair Value Adjustment in Inventory

 

0.10

 

 

0.13

 

Restructuring and other

 

0.11

 

 

0.08

 

Tax effects of excluded items

 

(0.04

)

 

(0.03

)

Non-GAAP earnings per share

$

0.56

 

$

0.80

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191112005433/en/

CONTACT: Brian Smith

Advanced Energy

(970) 407-6555

brian.smith@aei.com

KEYWORD: UNITED STATES NORTH AMERICA COLORADO

INDUSTRY KEYWORD: SEMICONDUCTOR HARDWARE CONSUMER ELECTRONICS TECHNOLOGY TELECOMMUNICATIONS

SOURCE: Advanced Energy Industries, Inc.

Copyright Business Wire 2019.

PUB: 11/12/2019 07:30 AM/DISC: 11/12/2019 07:30 AM

http://www.businesswire.com/news/home/20191112005433/en