News Release

Advanced Energy Announces Second Quarter 2020 Results

Aug 05, 2020
  • Q2 revenue was a record $340 million, at the high end of the guidance range of $285 million to $345 million
  • Q2 GAAP EPS from continuing operations was $0.76
  • Q2 Non-GAAP EPS was $1.18, above the guidance range of $0.50 to $1.10

DENVER--(BUSINESS WIRE)--Aug. 5, 2020-- Advanced Energy Industries, Inc. (Nasdaq: AEIS), today announced financial results for the second quarter ended June 30, 2020.

“In Q2 we delivered record revenue with margins, earnings, and cash flow generation above expectations. As a pure play power leader, we are leveraging our operational excellence and market share gains, delivering on accelerating demand in many of our markets, and realizing the benefits of the Artesyn integration," said CEO Yuval Wasserman. “While visibility and operating conditions remain difficult due to COVID-19, we are executing our growth strategy ahead of plan.”

Second Quarter Results

Sales were $339.9 million in the second quarter of 2020 compared with $315.5 million in the first quarter of 2020 and $134.8 million in the second quarter of 2019.

GAAP net income from continuing operations was $29.3 million or $0.76 per diluted share, compared with $18.4 million or $0.48 per diluted share in the prior quarter, and $23.4 million or $0.61 per diluted share in the second quarter of 2019.

Non-GAAP net income was $45.4 million or $1.18 per diluted share in the second quarter of 2020. This compares with $34.9 million or $0.91 per diluted share in the first quarter of 2020, and $17.2 million or $0.45 per diluted share in the second quarter of 2019.

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

The company generated $38.6 million of operating cash from continuing operations in the quarter and made debt principal payments of $4.4 million.

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 2019 Annual Report on Form 10‑K.

Third Quarter 2020 Guidance

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

 

Q3 2020

Revenues

$350M +/- $25M

GAAP EPS from continuing operations

$0.88 +/- $0.25

Non-GAAP EPS

$1.15 +/- $0.25

Conference Call

Management will host a conference call today, August 5, 2020 at 6:00 a.m. Mountain Time / 8:00 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 1753437, which has been reserved for this call. A webcast will also be available on the company’s investors 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 Denver, 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. Beginning in Q2 2020, Advanced Energy’s non-GAAP measures will exclude non-cash unrealized foreign currency gains or losses that result from remeasurement to functional currency long-term obligations related to pension and operating lease liabilities as the remeasurement does not represent current economic exposure and is unrelated to our overall operating performance. These long-term obligations were acquired in connection with the Artesyn acquisition and the Company previously used derivatives to hedge the exposure; however, the Company has determined it will no longer hedge these non-economic exposures. The tax effect of our non-GAAP adjustments represents the anticipated annual tax rate applied to each non-GAAP adjustment after consideration of their respective book and tax treatments.

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, non-economic foreign currency remeasurements, 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 third quarter ending September 30, 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 COVID-19 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 impact of escalating political, economic and policy tensions and conflicts between China and the United States including, but not limited to, trade wars and export restrictions between the two countries, China’s national security law for Hong Kong, and China’s expansion of control over the South China Sea, any of which could negatively impact our customers’ and our presence, operations, and financial results. 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

 

Six Months Ended

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

 

 

 

Unaudited

 

Unaudited

 

Unaudited

 

Unaudited

 

Unaudited

 

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

311,770

 

$

106,193

 

$

289,361

 

$

601,131

 

$

218,305

 

Service

 

 

28,110

 

 

28,617

 

 

26,095

 

 

54,205

 

 

57,248

 

Total sales

 

 

339,880

 

 

134,810

 

 

315,456

 

 

655,336

 

 

275,553

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

195,535

 

 

56,113

 

 

191,066

 

 

386,601

 

 

116,914

 

Service

 

 

14,041

 

 

14,571

 

 

12,159

 

 

26,200

 

 

28,773

 

Total cost of sales

 

 

209,576

 

 

70,684

 

 

203,225

 

 

412,801

 

 

145,687

 

Gross profit

 

 

130,304

 

 

64,126

 

 

112,231

 

 

242,535

 

 

129,866

 

 

 

 

38.3

%

 

47.6

%

 

35.6

%

 

37.0

%

 

47.1

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

35,855

 

 

21,840

 

 

34,770

 

 

70,625

 

 

43,129

 

Selling, general and administrative

 

 

48,174

 

 

27,612

 

 

45,991

 

 

94,165

 

 

56,626

 

Amortization of intangible assets

 

 

5,009

 

 

1,874

 

 

5,006

 

 

10,015

 

 

3,847

 

Restructuring expense

 

 

5,790

 

 

1,795

 

 

656

 

 

6,446

 

 

3,468

 

Total operating expenses

 

 

94,828

 

 

53,121

 

 

86,423

 

 

181,251

 

 

107,070

 

Operating income

 

 

35,476

 

 

11,005

 

 

25,808

 

 

61,284

 

 

22,796

 

Other income (expense), net

 

 

(1,587)

 

 

15,545

 

 

(3,510)

 

 

(5,097)

 

 

16,288

 

Income from continuing operations before income taxes

 

 

33,889

 

 

26,550

 

 

22,298

 

 

56,187

 

 

39,084

 

Provision (benefit) for income taxes

 

 

4,610

 

 

3,177

 

 

3,900

 

 

8,510

 

 

324

 

Income from continuing operations, net of income taxes

 

 

29,279

 

 

23,373

 

 

18,398

 

 

47,677

 

 

38,760

 

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

 

 

(151)

 

 

8,324

 

 

(320)

 

 

(471)

 

 

8,315

 

Net income

 

 

29,128

 

 

31,697

 

 

18,078

 

 

47,206

 

 

47,075

 

Income from continuing operations attributable to non-controlling interest

 

 

(16)

 

 

11

 

 

15

 

 

(1)

 

 

19

 

Net income attributable to Advanced Energy Industries, Inc.

 

$

29,144

 

$

31,686

 

$

18,063

 

$

47,207

 

$

47,056

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average common shares outstanding

 

 

38,294

 

 

38,274

 

 

38,358

 

 

38,326

 

 

38,236

 

Diluted weighted-average common shares outstanding

 

 

38,458

 

 

38,462

 

 

38,570

 

 

38,525

 

 

38,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Advanced Energy Industries, Inc:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.77

 

$

0.61

 

$

0.48

 

$

1.24

 

$

1.01

 

Diluted earnings per share

 

$

0.76

 

$

0.61

 

$

0.48

 

$

1.24

 

$

1.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

 

$

0.22

 

$

(0.01)

 

$

(0.01)

 

$

0.22

 

Diluted earnings per share

 

$

 

$

0.22

 

$

(0.01)

 

$

(0.01)

 

$

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.76

 

$

0.83

 

$

0.47

 

$

1.23

 

$

1.23

 

Diluted earnings per share

 

$

0.76

 

$

0.82

 

$

0.47

 

$

1.23

 

$

1.22

 

ADVANCED ENERGY INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

             

 

 

June 30,

 

December 31,

 

 

2020

 

2019

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

380,637

 

$

346,441

Marketable securities

 

 

2,729

 

 

2,614

Accounts and other receivable, net

 

 

235,613

 

 

246,564

Inventories

 

 

260,049

 

 

230,019

Income taxes receivable

 

 

4,862

 

 

4,245

Other current assets

 

 

45,792

 

 

36,855

Total current assets

 

 

929,682

 

 

866,738

 

 

 

 

 

 

 

Property and equipment, net

 

 

107,554

 

 

108,109

Operating lease right-of-use assets

 

 

107,774

 

 

105,404

 

 

 

 

 

 

 

Deposits and other assets

 

 

21,776

 

 

22,556

Goodwill and intangibles, net

 

 

381,570

 

 

386,943

Deferred income tax assets

 

 

45,894

 

 

42,656

Total assets

 

$

1,594,250

 

$

1,532,406

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

180,415

 

$

170,671

Other accrued expenses

 

 

125,843

 

 

113,849

Current portion of debt

 

 

17,500

 

 

17,500

Current portion of operating lease liability

 

 

19,112

 

 

18,312

Total current liabilities

 

 

342,870

 

 

320,332

 

 

 

 

 

 

 

Long-term debt

 

 

313,040

 

 

321,527

Non-current liabilities of continuing operations

 

 

219,982

 

 

213,287

Long-term liabilities

 

 

533,022

 

 

534,814

 

 

 

 

 

 

 

Total liabilities

 

 

875,892

 

 

855,146

 

 

 

 

 

 

 

Advanced Energy stockholders’ equity

 

 

717,813

 

 

676,714

Noncontrolling interest

 

 

545

 

 

546

Stockholders’ equity

 

 

718,358

 

 

677,260

Total liabilities and stockholders’ equity

 

$

1,594,250

 

$

1,532,406

ADVANCED ENERGY INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

2020

 

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

47,206

 

$

47,075

Loss from discontinued operations, net of income taxes

 

 

(471)

 

 

8,315

Income from continuing operations, net of income taxes

 

 

47,677

 

 

38,760

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

23,196

 

 

8,396

Stock-based compensation expense

 

 

5,885

 

 

4,136

Provision (benefit) for deferred income taxes

 

 

(1,439)

 

 

4,509

Gain on sale of central inverter service business

 

 

 

 

(14,804)

Discount on notes receivable

 

 

721

 

 

Net loss on disposal of assets

 

 

231

 

 

90

Changes in operating assets and liabilities, net of assets acquired

 

 

(8,711)

 

 

(22,757)

Net cash provided by operating activities from continuing operations

 

 

67,560

 

 

18,330

Net cash used in operating activities from discontinued operations

 

 

(586)

 

 

(1,914)

Net cash provided by operating activities

 

 

66,974

 

 

16,416

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of marketable securities

 

 

(167)

 

 

Proceeds from sale of property and equipment

 

 

69

 

 

1,742

Issuance of notes receivable

 

 

(1,000)

 

 

(2,800)

Purchases of property and equipment

 

 

(13,391)

 

 

(8,866)

Net cash used in investing activities from continuing operations

 

 

(14,489)

 

 

(9,924)

Net cash used in investing activities from discontinued operations

 

 

 

 

Net cash used in investing activities

 

 

(14,489)

 

 

(9,924)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Payments on long-term borrowings

 

 

(8,750)

 

 

Purchase and retirement of common stock

 

 

(7,248)

 

 

Net payments related to stock-based award activities

 

 

(1,392)

 

 

(1,042)

Net cash used in financing activities from continuing operations

 

 

(17,390)

 

 

(1,042)

Net cash used in financing activities from discontinued operations

 

 

 

 

Net cash used in financing activities

 

 

(17,390)

 

 

(1,042)

EFFECT OF CURRENCY TRANSLATION ON CASH

 

 

(899)

 

 

(932)

INCREASE IN CASH AND CASH EQUIVALENTS

 

 

34,196

 

 

4,518

CASH AND CASH EQUIVALENTS, beginning of period

 

 

346,441

 

 

354,552

CASH AND CASH EQUIVALENTS, end of period

 

 

380,637

 

 

359,070

Less cash and cash equivalents from discontinued operations

 

 

 

 

CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period

 

$

380,637

 

$

359,070

ADVANCED ENERGY INDUSTRIES, INC.

SUPPLEMENTAL INFORMATION (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales by Product Line

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

 

2020

 

2019

 

2020

 

2020

 

2019

Semiconductor Equipment

 

$

145,424

 

$

90,058

 

$

133,625

 

$

279,049

 

$

181,495

Industrial & Medical

 

 

70,886

 

 

44,752

 

 

61,979

 

 

132,865

 

 

94,058

Data Center Computing

 

 

83,316

 

 

 

 

86,183

 

 

169,499

 

 

Telecom & Networking

 

 

40,254

 

 

 

 

33,669

 

 

73,923

 

 

Total

 

$

339,880

 

$

134,810

 

$

315,456

 

$

655,336

 

$

275,553

Net Sales by Geographic Region

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

 

2020

 

2019

 

2020

 

2020

 

2019

North America

 

$

149,760

 

$

61,393

 

$

164,331

 

$

314,091

 

$

119,899

Asia

 

 

170,753

 

 

50,962

 

 

110,975

 

 

281,728

 

 

109,397

Europe

 

 

19,048

 

 

22,092

 

 

39,136

 

 

58,184

 

 

45,518

Other Countries

 

 

319

 

 

363

 

 

1,014

 

 

1,333

 

 

739

Total

 

$

339,880

 

$

134,810

 

$

315,456

 

$

655,336

 

$

275,553

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

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

 

2020

 

2019

 

2020

 

2020

 

2019

Gross profit from continuing operations, as reported

 

$

130,304

 

$

64,126

 

$

112,231

 

$

242,535

 

$

129,866

Adjustments to gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

156

 

 

55

 

 

222

 

 

378

 

 

288

Facility expansion, relocation costs and other

 

 

970

 

 

150

 

 

1,543

 

 

2,513

 

 

320

Acquisition-related costs

 

 

215

 

 

 

 

5,141

 

 

5,356

 

 

Non-GAAP gross profit

 

 

131,645

 

 

64,331

 

 

119,137

 

 

250,782

 

 

130,474

Non-GAAP gross margin

 

 

38.7%

 

 

47.7%

 

 

37.8%

 

 

38.3%

 

 

47.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses from continuing operations, as reported

 

 

94,828

 

 

53,121

 

 

86,423

 

 

181,251

 

 

107,070

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(5,009)

 

 

(1,874)

 

 

(5,006)

 

 

(10,015)

 

 

(3,847)

Stock-based compensation

 

 

(2,681)

 

 

(883)

 

 

(2,826)

 

 

(5,507)

 

 

(3,848)

Acquisition-related costs

 

 

(2,978)

 

 

(1,531)

 

 

(2,405)

 

 

(5,383)

 

 

(3,042)

Facility expansion, relocation costs and other

 

 

(539)

 

 

 

 

(816)

 

 

(1,355)

 

 

(74)

Restructuring charges

 

 

(5,790)

 

 

(1,795)

 

 

(656)

 

 

(6,446)

 

 

(3,468)

Non-GAAP operating expenses

 

 

77,831

 

 

47,038

 

 

74,714

 

 

152,545

 

 

92,791

Non-GAAP operating income

 

$

53,814

 

$

17,293

 

$

44,423

 

$

98,237

 

$

37,683

Non-GAAP operating margin

 

 

15.8%

 

 

12.8%

 

 

14.1%

 

 

15.0%

 

 

13.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP measure - income excluding certain items

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

 

2020

 

2019

 

2020

 

2020

 

2019

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

 

$

29,295

 

$

23,362

 

$

18,383

 

$

47,678

 

$

38,741

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

5,009

 

 

1,874

 

 

5,006

 

 

10,015

 

 

3,847

Acquisition-related costs

 

 

3,193

 

 

1,531

 

 

7,546

 

 

10,739

 

 

3,042

Facility expansion, relocation costs and other

 

 

1,509

 

 

150

 

 

2,359

 

 

3,868

 

 

394

Restructuring charges

 

 

5,790

 

 

1,795

 

 

656

 

 

6,446

 

 

3,468

Unrealized foreign currency (gain) loss

 

 

1,058

 

 

 

 

 

 

1,058

 

 

Central inverter services business sale

 

 

 

 

(14,804)

 

 

 

 

 

 

(14,804)

Tax effect of Non-GAAP adjustments

 

 

(2,595)

 

 

2,536

 

 

(1,370)

 

 

(3,965)

 

 

1,685

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

 

 

43,259

 

 

16,444

 

 

32,580

 

 

75,839

 

 

36,373

Stock-based compensation, net of taxes

 

 

2,170

 

 

722

 

 

2,363

 

 

4,533

 

 

3,185

Non-GAAP income, net of income taxes

 

$

45,429

 

$

17,166

 

$

34,943

 

$

80,372

 

$

39,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

 

2020

 

2019

 

2020

 

2020

 

2019

Diluted earnings per share from continuing operations, as reported

 

$

0.76

 

$

0.61

 

$

0.48

 

$

1.24

 

$

1.01

Add back (subtract):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

0.42

 

 

(0.16)

 

 

0.43

 

 

0.85

 

 

0.02

Non-GAAP per share earnings

 

$

1.18

 

$

0.45

 

$

0.91

 

$

2.09

 

$

1.03

 

 

 

 

 

 

 

Reconciliation of Q3 2020 Guidance

 

 

 

 

 

 

 

 

Low End

 

High End

 

 

 

 

 

 

 

Revenue

 

$325 million

 

$375 million

 

 

 

 

 

 

 

Reconciliation of Non-GAAP earnings per share

 

 

 

 

 

 

GAAP earnings per share

 

$

0.63

 

$

1.13

Stock-based compensation

 

 

0.09

 

 

0.09

Amortization of intangible assets

 

 

0.13

 

 

0.13

Restructuring and other

 

 

0.09

 

 

0.09

Tax effects of excluded items

 

 

(0.04)

 

 

(0.04)

Non-GAAP earnings per share

 

$

0.90

 

$

1.40

 

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

Source: Advanced Energy Industries, Inc.

Adv Energy - Tookits