News Release

Advanced Energy Announces Fourth Quarter and Full Year Fiscal 2019 Results

Feb 18, 2020
  • Q4 revenue was $338.3 million, above the guidance range of $295 million to $325 million, driven by significant sequential growth in semiconductor equipment and data center computing
  • Q4 GAAP EPS from continuing operations was $0.27
  • Q4 Non-GAAP EPS was $0.87, above the high end of the guidance range of $0.56 to $0.80

FORT COLLINS, Colo.--(BUSINESS WIRE)--Feb. 18, 2020-- Advanced Energy Industries, Inc. (Nasdaq: AEIS) today announced financial results for the fourth quarter and fiscal year ended December 31, 2019.

“Our fourth quarter marked a strong finish to fiscal year 2019, with quarterly revenue and non-GAAP earnings per share above our guidance ranges. We continue to benefit from the results of our past design wins as they transition into solid incremental revenue growth and market share gains. The semiconductor equipment and data center computing markets were particularly strong this quarter, with our semiconductor revenues growing 30% sequentially,” said Yuval Wasserman, president and CEO. “Further, the integration of Artesyn Embedded Power is progressing very well. We have identified and started to implement actions to achieve our synergies target and to capture exciting potential revenue growth opportunities.”

Fourth Quarter Results

Sales were $338.3 million in the fourth quarter of 2019 compared with $175.1 million in the third quarter of 2019 and $154.2 million in the fourth quarter of 2018.

GAAP net income from continuing operations was $10.5 million or $0.27 per diluted share, compared with $7.3 million or $0.19 per diluted share in the prior quarter, and $19.2 million or $0.50 per diluted share in the fourth quarter of 2018. Both GAAP and non-GAAP operating expenses in the fourth quarter of 2019 include a one-time pre-tax reserve of $4.2 million.

Non-GAAP net income was $33.4 million or $0.87 per diluted share in the fourth quarter of 2019. This compares with $20.9 million or $0.54 per diluted share in the third quarter of 2019, and $28.0 million or $0.73 per diluted share in the fourth quarter of 2018.

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

The company generated $19.0 million of operating cash from continuing operations in the quarter.

Full Year 2019 Results

Sales were $788.9 million in 2019 compared with $718.9 million in 2018, an increase of 9.7%.

GAAP net income from continuing operations was $56.5 million or $1.47 per diluted share in 2019 compared with $147.1 million or $3.74 per diluted share in 2018.

Non-GAAP net income was $93.9 million or $2.44 per diluted share in 2019 compared to $172.0 million or $4.37 per diluted share in 2018. A reconciliation of non-GAAP measures is provided in the tables below.

The company generated $47.9 million of operating cash from continuing operations in 2019 and ended the year with $349.1 million in cash and marketable securities.

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.

First Quarter 2020 Guidance

Based on the company’s current view, beliefs and assumptions, guidance for the first quarter of 2020 is within the following ranges.

 

 

 

 

 

 

 

 

Q1 2020

Revenues

$310M +/- $30M

GAAP EPS from continuing operations

$0.36 +/- $0.30

Non-GAAP EPS

$0.70 +/- $0.30

Conference Call

Management will host a conference call today, Tuesday, February 18, 2020 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 4717689, 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 first quarter ending March 31, 2020, potential future growth and profitability, future business mix, expectations regarding future market trends, 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 including the optimization and reduction of our global manufacturing sites; (e) the recent outbreak of the 2019-Novel Coronavirus (2019-nCoV) and its potential adverse impact on our product manufacturing, research & development, supply chain, services and administrative operations; (f) the accuracy of the company’s estimates related to fulfilling solar inverter product warranty and post-warranty obligations; (g) the company’s ability to realize its plan to avoid additional costs after the solar inverter wind-down; (h) the accuracy of the company’s assumptions on which its financial statement projections are based; (i) the impact of product price changes, which may result from a variety of factors; (j) the timing of orders received from customers; (k) the company’s ability to realize benefits from cost improvement efforts including avoided costs, restructuring plans and inorganic growth; (l) the company’s ability to obtain in a timely manner the materials necessary to manufacture its products; (m) unanticipated changes to management’s estimates, reserves or allowances; (n) changes and adjustments to the tax expense and benefits related to the U.S. tax reform that was enacted in late 2017; and (o) 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
(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

Three Months Ended

   

Year Ended

 

December 31,

 

September 30,

   

December 31,

 

2019

2018

 

2019

   

2019

2018

 

Unaudited

Unaudited

 

Unaudited

   

 

 

 

 

 

 

Sales:

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Product

$

311,618

 

 

$

125,039

 

 

$

148,138

 

   

$

678,061

 

$

610,326

 

 

Service

 

26,650

 

 

 

29,122

 

 

 

26,989

 

   

 

110,887

 

 

108,566

 

 

Total sales

 

338,268

 

 

 

154,161

 

 

 

175,127

 

   

 

788,948

 

 

718,892

 

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Product

 

212,526

 

 

 

64,819

 

 

 

87,536

 

   

 

416,976

 

 

298,597

 

 

Service

 

13,447

 

 

 

14,154

 

 

 

14,100

 

   

 

56,320

 

 

54,688

 

 

Total cost of sales

 

225,973

 

 

 

78,973

 

 

 

101,636

 

   

 

473,296

 

 

353,285

 

 

Gross profit

 

112,295

 

 

 

75,188

 

 

 

73,491

 

   

 

315,652

 

 

365,607

 

 

 

 

33.2

 

%

 

48.8

%

 

 

42.0

%

   

 

40.0

%

 

50.9

 

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Research and development

 

33,828

 

 

 

20,725

 

 

 

24,546

 

   

 

101,503

 

 

76,008

 

 

Selling, general and administrative

 

49,528

 

 

 

29,241

 

 

 

36,401

 

   

 

142,555

 

 

108,033

 

 

Amortization of intangible assets

 

5,319

 

 

 

1,816

 

 

 

3,002

 

   

 

12,168

 

 

5,774

 

 

Restructuring expense

 

1,418

 

 

 

3,836

 

 

 

152

 

   

 

5,038

 

 

4,239

 

 

Total operating expenses

 

90,093

 

 

 

55,618

 

 

 

64,101

 

   

 

261,264

 

 

194,054

 

 

Operating income

 

22,202

 

 

 

19,570

 

 

 

9,390

 

   

 

54,388

 

 

171,553

 

 

Other income (expense), net

 

(4,843

)

 

 

881

 

 

 

1,361

 

   

 

12,806

 

 

823

 

 

Income from continuing operations before income taxes

 

17,359

 

 

 

20,451

 

 

 

10,751

 

   

 

67,194

 

 

172,376

 

 

Provision (benefit) for income taxes

 

6,880

 

 

 

1,229

 

 

 

3,495

 

   

 

10,699

 

 

25,227

 

 

Income from continuing operations, net of income taxes

 

10,479

 

 

 

19,222

 

 

 

7,256

 

   

 

56,495

 

 

147,149

 

 

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

 

(210

)

 

 

188

 

 

 

375

 

   

 

8,480

 

 

(38

)

 

Net income

 

10,269

 

 

 

19,410

 

 

 

7,631

 

   

 

64,975

 

 

147,111

 

 

Income from continuing operations attributable to non-controlling interest

 

5

 

 

 

4

 

 

 

10

 

   

 

34

 

 

86

 

 

Net income attributable to Advanced Energy Industries, Inc.

$

10,264

 

 

$

19,406

 

 

$

7,621

 

   

$

64,941

 

$

147,025

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Basic weighted-average common shares outstanding

 

38,341

 

 

 

38,386

 

 

 

38,313

 

   

 

38,281

 

 

39,081

 

 

Diluted weighted-average common shares outstanding

 

38,554

 

 

 

38,595

 

 

 

38,489

 

   

 

38,495

 

 

39,352

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Earnings per share attributable to Advanced Energy Industries, Inc:

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Continuing operations:

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Basic earnings per share

$

0.27

 

 

$

0.50

 

 

$

0.19

 

   

$

1.47

 

$

3.76

 

 

Diluted earnings per share

$

0.27

 

 

$

0.50

 

 

$

0.19

 

   

$

1.47

 

$

3.74

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Basic earnings per share

$

(0.01

)

 

$

 

 

$

0.01

 

   

$

0.22

 

$

 

Diluted earnings per share

$

(0.01

)

 

$

 

 

$

0.01

 

   

$

0.22

 

$

 

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

 

Basic earnings per share

$

0.27

 

 

$

0.51

 

 

$

0.20

 

   

$

1.70

 

$

3.76

 

 

Diluted earnings per share

$

0.27

 

 

$

0.50

 

 

$

0.20

 

   

$

1.69

 

$

3.74

 

 

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

 

 

 

 

 

 

 

December 31,

 

December 31,

 

2019

 

2018

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

346,441

 

$

349,301

Marketable securities

 

2,614

 

 

2,470

Accounts and other receivable, net

 

246,564

 

 

100,442

Inventories, net

 

230,019

 

 

97,987

Income taxes receivable

 

4,245

 

 

2,220

Other current assets

 

36,825

 

 

10,173

Current assets of discontinued operations

 

30

 

 

5,855

Total current assets

 

866,738

 

 

568,448

 

 

 

 

 

 

Property and equipment, net

 

108,109

 

 

31,269

Operating lease right-of-use assets

 

105,404

 

 

 

 

 

 

 

 

Deposits and other assets

 

22,287

 

 

6,874

Goodwill and intangibles, net

 

386,943

 

 

156,810

Deferred income tax assets

 

42,656

 

 

47,099

Non-current assets of discontinued operations

 

269

 

 

5,984

Total assets

$

1,532,406

 

$

816,484

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

170,671

 

$

39,646

Other accrued expenses

 

112,935

 

 

65,377

Current portion of debt

 

17,500

 

 

Current portion of operating lease liability

 

18,312

 

 

Current liabilities of discontinued operations

 

914

 

 

5,286

Total current liabilities

 

320,332

 

 

110,309

 

 

 

 

 

 

Long-term debt

 

321,527

 

 

Non-current liabilities of continuing operations

 

212,400

 

 

88,158

Non-current liabilities of discontinued operations

 

887

 

 

10,715

Long-term liabilities

 

534,814

 

 

98,873

 

 

 

 

 

 

Total liabilities

 

855,146

 

 

209,182

 

 

 

 

 

 

Advanced Energy stockholders’ equity

 

676,714

 

 

606,790

Noncontrolling interest

 

546

 

 

512

Stockholders’ equity

 

677,260

 

 

607,302

Total liabilities and stockholders’ equity

$

1,532,406

 

$

816,484

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

 

 

 

   

 

 

 

 

Year Ended December 31,

 

2019

 

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

   

 

 

 

Net income

$

64,975

 

 

$

147,111

 

Income from discontinued operations, net of income taxes

 

8,480

 

 

 

(38

)

Income from continuing operations, net of income taxes

 

56,495

 

 

 

147,149

 

 

 

 

   

 

 

 

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

 

 

   

 

 

 

Depreciation and amortization

 

26,147

 

 

 

13,592

 

Stock-based compensation expense

 

7,327

 

 

 

9,703

 

Provision for deferred income taxes

 

(3,225

)

 

 

5,618

 

Discount on notes receivable

 

1,100

 

 

 

 

Gain on sale of central inverter service business

 

(14,795

)

 

 

 

Net loss on disposal of assets

 

700

 

 

 

481

 

Changes in operating assets and liabilities, net of assets acquired

 

(25,850

)

 

 

(25,116

)

Net cash provided by operating activities from continuing operations

 

47,899

 

 

 

151,427

 

Net cash provided by operating activities from discontinued operations

 

493

 

 

 

(156

)

Net cash provided by operating activities

 

48,392

 

 

 

151,271

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

   

 

 

 

Purchases of marketable securities

 

   

 

(95

)

Proceeds from sale of marketable securities

 

1,742

 

 

 

589

 

Acquisitions, net of cash acquired

 

(366,101

)

 

 

(93,756

)

Issuance of notes receivable

 

(4,300

)

 

 

 

Purchases of property and equipment

 

(25,188

)

 

 

(20,330

)

Net cash used in investing activities from continuing operations

 

(393,847

)

 

 

(113,592

)

Net cash used in investing activities from discontinued operations

 

   

 

 

Net cash used in investing activities

 

(393,847

)

 

 

(113,592

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

   

 

 

 

Net Proceeds from long-term borrowings

 

347,486

 

 

 

 

Payments on long-term borrowings

 

(8,750

)

 

 

 

Purchase and retirement of common stock

 

   

 

(95,125

)

Net payments related to stock-based award activities

 

104

 

 

 

(2,009

)

Net cash provided by financing activities from continuing operations

 

338,840

 

 

 

(97,134

)

Net cash provided by financing activities from discontinued operations

 

   

 

 

Net cash provided by financing activities

 

338,840

 

 

 

(97,134

)

EFFECT OF CURRENCY TRANSLATION ON CASH

 

(1,496

)

 

 

(1,030

)

DECREASE IN CASH AND CASH EQUIVALENTS

 

(8,111

)

 

 

(60,485

)

CASH AND CASH EQUIVALENTS, beginning of period

 

354,552

 

 

 

415,037

 

CASH AND CASH EQUIVALENTS, end of period

 

346,441

 

 

 

354,552

 

Less cash and cash equivalents from discontinued operations

 

   

 

5,251

 

CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period

$

346,441

 

 

$

349,301

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales by Product Line

 

Three Months Ended

 

 

Year Ended

 

 

December 31,

 

September 30,

 

 

December 31,

 

 

2019

 

2018

 

2019

 

 

2019

 

2018

Semiconductor Equipment

 

$

125,108

 

$

107,393

 

$

96,426

 

 

$

403,018

 

$

533,770

Industrial & Medical

 

 

96,736

 

 

46,768

 

 

55,187

 

 

 

245,992

 

 

185,122

Data Center Computing

 

 

77,940

 

 

 

 

13,498

 

 

 

91,438

 

 

Telecom & Networking

 

 

38,484

 

 

 

 

10,016

 

 

 

48,500

 

 

Total

 

$

338,268

 

$

154,161

 

$

175,127

 

 

$

788,948

 

$

718,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales by Geographic Region

 

Three Months Ended

 

 

Year Ended

 

 

December 31,

 

September 30,

 

 

December 31,

 

 

2019

 

2018

 

2019

 

 

2019

 

2018

North America

 

$

172,697

 

$

77,267

 

$

83,632

 

 

$

376,228

 

$

372,834

Asia

 

 

117,559

 

 

52,554

 

 

66,157

 

 

 

293,113

 

 

250,574

Europe

 

 

47,264

 

 

23,991

 

 

25,008

 

 

 

117,790

 

 

94,793

Other Countries

 

 

748

 

 

349

 

 

330

 

 

 

1,817

 

 

691

Total

 

$

338,268

 

$

154,161

 

$

175,127

 

 

$

788,948

 

$

718,892

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

 

 

Year Ended

 

 

December 31,

 

September 30,

 

 

December 31,

   

2019

 

2018

 

2019

   

2019

 

2018

Gross profit from continuing operations, as reported

 

$

112,295

 

 

$

75,188

 

 

$

73,491

 

 

 

$

315,652

 

 

$

365,607

 

Adjustments to gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

160

 

 

 

166

 

 

 

77

 

 

 

 

525

 

 

 

742

 

Facility expansion and relocation costs

 

 

2,229

 

 

 

354

 

 

 

1,342

 

 

 

 

3,891

 

 

 

1,328

 

Acquisition-related costs

 

 

6,784

 

 

 

411

 

 

 

1,506

 

 

 

 

8,290

 

 

 

569

 

Non-GAAP gross profit

 

 

121,468

 

 

 

76,119

 

 

 

76,416

 

 

 

 

328,358

 

 

 

368,246

 

Non-GAAP gross margin

 

 

35.9

%

 

 

49.4

%

 

 

43.6

%

 

 

 

41.6

%

 

 

51.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses from continuing operations, as reported

 

 

90,093

 

 

 

55,618

 

 

 

64,101

 

 

 

 

261,264

 

 

 

194,054

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(5,319

)

 

 

(1,816

)

 

 

(3,002

)

 

 

 

(12,168

)

 

 

(5,774

)

Stock-based compensation

 

 

(2,115

)

 

 

(2,077

)

 

 

(840

)

 

 

 

(6,803

)

 

 

(8,961

)

Acquisition-related costs

 

 

(2,562

)

 

 

(416

)

 

 

(6,398

)

 

 

 

(12,002

)

 

 

(1,726

)

Facility expansion and relocation costs

 

 

(651

)

 

 

 

 

(223

)

 

 

 

(948

)

 

 

(518

)

Restructuring charges

 

 

(1,418

)

 

 

(3,836

)

 

 

(152

)

 

 

 

(5,038

)

 

 

(4,239

)

Non-GAAP operating expenses

 

 

78,028

 

 

 

47,473

 

 

 

53,486

 

 

 

 

224,305

 

 

 

172,836

 

Non-GAAP operating income

 

$

43,440

 

 

$

28,646

 

 

$

22,930

 

 

 

$

104,053

 

 

$

195,410

 

Non-GAAP operating margin

 

 

12.8

%

 

 

18.6

%

 

 

13.1

%

 

 

 

13.2

%

 

 

27.2

%

Reconciliation of Non-GAAP measure - income excluding certain items

 

Three Months Ended

 

 

Year Ended

 

 

December 31,

 

September 30,

 

 

December 31,

 

 

2019

 

2018

 

2019

 

 

2019

 

2018

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

 

$

10,474

 

$

19,218

 

 

$

7,246

 

 

$

56,461

 

 

$

147,063

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

5,319

 

 

1,816

 

 

 

2,973

 

 

 

12,168

 

 

 

5,774

 

Acquisition-related costs

 

 

9,346

 

 

827

 

 

 

7,904

 

 

 

20,263

 

 

 

2,295

 

Facility expansion and relocation costs

 

 

2,879

 

 

354

 

 

 

1,565

 

 

 

4,838

 

 

 

1,846

 

Restructuring charges

 

 

1,418

 

 

3,836

 

 

 

152

 

 

 

5,038

 

 

 

4,239

 

Tax Cuts and Jobs Act Impact

 

 

 

 

1,452

 

 

 

 

 

 

 

 

5,703

 

Central inverter services business sale

 

 

1,067

 

 

 

 

 

 

 

(13,737

)

 

 

Tax effect of Non-GAAP adjustments

 

 

1,195

 

 

(1,198

)

 

 

326

 

 

 

3,206

 

 

 

(2,344

)

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

 

 

31,698

 

 

26,305

 

 

 

20,166

 

 

 

88,237

 

 

 

164,576

 

Stock-based compensation, net of taxes

 

 

1,740

 

 

1,705

 

 

 

702

 

 

 

5,627

 

 

 

7,421

 

Non-GAAP income, net of income taxes

 

$

33,438

 

$

28,010

 

 

$

20,868

 

 

$

93,864

 

 

$

171,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Three Months Ended

 

 

Year Ended

 

 

December 31,

 

September 30,

 

 

December 31,

 

 

2019

 

2018

 

2019

 

 

2019

 

2018

Diluted earnings per share from continuing operations, as reported

 

$

0.27

 

$

0.50

 

$

0.19

 

 

$

1.47

 

$

3.74

Add back (subtract):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

0.60

 

 

0.23

 

 

0.35

 

 

 

0.97

 

 

0.63

Non-GAAP per share earnings

 

$

0.87

 

$

0.73

 

$

0.54

 

 

$

2.44

 

$

4.37

 

 

 

 

 

 

 

Reconciliation of Q1 2020 Guidance

 

 

 

 

 

 

 

 

Low End

 

High End

 

 

 

 

 

 

 

Revenue

 

$280 million

 

$340 million

 

 

 

 

 

 

 

Reconciliation of Non-GAAP earnings per share

 

 

 

 

 

 

GAAP earnings per share

 

$

0.06

 

 

$

0.66

 

Stock-based compensation

 

 

0.09

 

 

 

0.09

 

Amortization of intangible assets

 

 

0.14

 

 

 

0.14

 

Amortization of acquisition fair value adjustment in inventory

 

 

0.13

 

 

 

0.13

 

Restructuring and other

 

 

0.05

 

 

 

0.05

 

Tax effects of excluded items

 

 

(0.07

)

 

 

(0.07

)

Non-GAAP earnings per share

 

$

0.40

 

 

$

1.00

 

 

Source: Advanced Energy Industries, Inc.

Brian Smith
Advanced Energy
(970) 407-6555
brian.smith@aei.com

Adv Energy - Tookits