- Revenue of $105.8
million
- Generated $29.4
million in cash (excluding share
repurchases)
- Repurchased nearly
2.0 million shares
(at an average price of
$11.09 per share for an
aggregate purchase of $21.9 million)
- Total annual restructuring cost
savings of $26 million
Advanced Energy Industries, Inc. (Nasdaq:AEIS) today announced
financial results for the first quarter ended March 31, 2012. The
company posted first quarter sales of $105.8 million compared to
$112.5 million in the fourth quarter of 2011 and $137.7 million in
the first quarter of 2011. Income from continuing operations was
$0.8 million or $0.02 per diluted share. On a non-GAAP basis,
income from continuing operations was $2.4 million and earnings per
diluted share from continuing operations was $0.06. The
non-GAAP measures exclude the impact of $2.6 million in
restructuring charges recorded in the first quarter. A
reconciliation of non-GAAP income from continuing operations and
earnings per share is provided in the tables. We ended the quarter
with $150.7 million in cash and investments, having generated $29.4
million of cash during the quarter excluding the share repurchase
of $21.9 million.
"Exiting the first quarter we further reduced our cost structure
and lowered our breakeven in both our Thin Films and Solar Energy
business units," said Garry Rogerson, chief executive officer.
"With most of the immediate cost reductions behind us and programs
in place to better utilize our cash, we are moving ahead with the
next stage of our strategic plan to improve manufacturing costs and
accelerate long-term, profitable revenue growth. We remain
optimistic about our growth prospects, which coupled with our
ongoing cost reduction efforts should improve profitability and
deliver value to our shareholders."
Thin Films Business Unit
Thin Films sales increased 11.0% to $60.4 million in the first
quarter of 2012 from $54.4 million in the fourth quarter of 2011,
due to strong sales to the semiconductor market. Year-over-year,
Thin Films sales declined 39.7%, from $100.1 million in the first
quarter of 2011.
Solar Energy Business
Unit
Solar Energy sales were $45.4 million in the seasonally weak
first quarter, a decrease of 21.8% from $58.1 million in the fourth
quarter. On a year-over-year basis Solar Energy sales increased
20.9% from $37.6 million due to large scale deployments in North
America.
Income/Loss from Continuing Operations
Income from continuing operations for the first quarter was $0.8
million or $0.02 per diluted share, compared to income from
continuing operations of $18.8 million or $0.43 per diluted share
in the same period last year and loss from continuing operations of
$2.6 million or $0.06 per diluted share in the fourth quarter of
2011. On a non-GAAP basis, excluding the impact of the
restructuring charge, income from continuing operations was $2.4
million or $0.06 per diluted share up from $0.5 million or $0.01
per diluted share in the fourth quarter of 2011.
Restructuring Charge
The company incurred $2.6 million in charges this quarter
related to the restructuring plan that was announced on September
28, 2011. During the quarter the company exited certain facilities,
implemented its redesigned compensation plan and made further
progress on the transfer of manufacturing of certain solar inverter
subcomponents to its Shenzhen, China factory, resulting in
annualized savings of approximately $14 million.
The remainder of the restructuring plan is expected to be
implemented over the next 6 to 12 months as the company further
reduces its cost structure, closes facilities, and relocates other
functions to different regions worldwide. As a result, the company
anticipates further charges in the amount of $2 to $6 million,
principally for space consolidation, and another $1 million in
additional severance costs over this timeframe. Once complete, the
restructuring plan, along with other cost savings initiatives and
margin improvements, is currently expected to deliver annual
savings in excess of $30 million, well ahead of our original
plan.
Second Quarter 2012
Guidance
The company anticipates second quarter 2012 results from
continuing operations to be within the following ranges:
- Sales of $114 million to $120 million
- Non-GAAP per share earnings of $0.11 to $0.14
First Quarter
2012 Conference Call
Management will host a conference call tomorrow, Tuesday, May 1,
2012, at 8:30 a.m. Eastern Daylight Time to discuss Advanced
Energy's financial results. Domestic callers may access this
conference call by dialing 866-770-7120. International callers may
access the call by dialing 617-213-8065. Participants will need to
provide conference pass code 87964812. For a replay of this
teleconference, please call 888-286-8010 or 617-801-6888, and
enter the pass code 73483609. The replay will be available for two
weeks following the conference call. A webcast will also be
available on the Investor Relations web page at
http://ir.advanced-energy.com.
About Advanced Energy
Advanced Energy is a global leader in reliable power conversion
solutions used in thin-film plasma manufacturing and solar energy
generation. Founded in 1981, Advanced Energy is headquartered in
Fort Collins, Colorado with dedicated support and service locations
around the world. For more information, go to
www.advanced-energy.com.
This release includes GAAP and non-GAAP operating income and per
share earnings data. These non-GAAP measures 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 regarding financial and business trends relating to its
financial condition and results of operations. Additionally, the
company believes that these non-GAAP measures, in combination with
its financial results calculated in accordance with GAAP, provides
investors with additional perspective. . While some of these
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 they do not reflect all
of the amounts associated with its 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.
For additional information on the items excluded from one or
more of its non-GAAP financial measures, refer to the Form 8-K
regarding this release furnished today to the Securities and
Exchange Commission.
Forward-Looking Language
The company's expectations with respect to guidance to financial
results for the second quarter ending June 30, 2012, anticipated
cost savings and restructuring activities and other statements 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: the effects of
global macroeconomic conditions upon demand for our products, the
volatility and cyclicality of the industries the company serves,
particularly the semiconductor industry, the continuation of RPS
(renewable portfolio standards), the timing and availability of
incentives and grant programs in North America and Europe related
to the renewable energy market, renewable energy project delays
resulting from solar panel price declines and increased competition
in the solar inverter equipment market, the timing of orders
received from customers, the company's ability to realize benefits
from cost improvement efforts and any restructuring plans, the
ability to source materials and manufacture products, and
unanticipated changes to management's estimates, reserves or
allowances. 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. These reports
and statements are available on the SEC's website at www.sec.gov.
Copies may also be obtained from Advanced Energy's website at
www.advancedenergy.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. 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 |
|
March
31, |
December 31, |
|
2012 |
2011 |
2011 |
|
|
|
|
SALES |
$ 105,787 |
$ 137,652 |
$ 112,495 |
COST OF SALES |
66,043 |
75,607 |
73,607 |
GROSS PROFIT |
39,744 |
62,045 |
38,888 |
|
37.6% |
45.1% |
34.6% |
OPERATING EXPENSES: |
|
|
|
Research and development |
15,115 |
15,862 |
14,393 |
Selling, general and administrative |
20,059 |
20,905 |
22,343 |
Restructuring charges |
2,575 |
-- |
4,229 |
Amortization of intangible assets |
1,372 |
921 |
1,021 |
Total operating expenses |
39,121 |
37,688 |
41,986 |
|
|
|
|
Operating income (loss) |
623 |
24,357 |
(3,098) |
|
|
|
|
Other income, net |
411 |
663 |
721 |
Income (loss) from continuing operations
before income taxes |
1,034 |
25,020 |
(2,377) |
Provision for income taxes |
268 |
6,254 |
218 |
INCOME (LOSS) FROM CONTINUING OPERATIONS, NET
OF INCOME TAXES |
766 |
18,766 |
(2,595) |
|
|
|
|
Income (loss) from discontinued operations,
net of income taxes |
303 |
140 |
(175) |
|
|
|
|
NET INCOME (LOSS) |
$ 1,069 |
$ 18,906 |
$ (2,770) |
|
|
|
|
Basic weighted-average common shares
outstanding |
40,781 |
43,440 |
43,316 |
Diluted weighted-average common shares
outstanding |
41,292 |
44,133 |
43,546 |
|
|
|
|
EARNINGS PER SHARE: |
|
|
|
CONTINUING OPERATIONS: |
|
|
|
BASIC EARNINGS PER SHARE |
$ 0.02 |
$ 0.43 |
$ (0.06) |
DILUTED EARNINGS PER SHARE |
$ 0.02 |
$ 0.43 |
$ (0.06) |
|
|
|
|
DISCONTINUED OPERATIONS |
|
|
|
BASIC EARNINGS PER SHARE |
$ 0.01 |
$ 0.00 |
$ (0.00) |
DILUTED EARNINGS PER SHARE |
$ 0.01 |
$ 0.00 |
$ (0.00) |
|
|
|
|
NET INCOME: |
|
|
|
BASIC EARNINGS PER
SHARE |
$ 0.03 |
$ 0.44 |
$ (0.06) |
DILUTED EARNINGS PER
SHARE |
$ 0.03 |
$ 0.43 |
$ (0.06) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED ENERGY INDUSTRIES,
INC. |
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
March 31, |
December
31, |
|
|
2012 |
2011 * |
|
ASSETS |
UNAUDITED |
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 125,418 |
$ 117,639 |
|
Marketable securities |
25,325 |
25,567 |
|
Accounts receivable, net |
103,414 |
132,485 |
|
Inventories, net |
83,164 |
80,283 |
|
Deferred income taxes |
9,011 |
9,014 |
|
Income taxes receivable |
14,863 |
13,826 |
|
Other current assets |
10,730 |
11,672 |
|
Total current assets |
371,925 |
390,486 |
|
|
|
|
|
Property and equipment, net |
41,247 |
42,338 |
|
|
|
|
|
Deposits and other |
9,031 |
8,959 |
|
Goodwill and intangibles, net |
88,581 |
89,953 |
|
Deferred income tax assets, net |
1,706 |
1,642 |
|
Total assets |
$ 512,490 |
$ 533,378 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ 38,225 |
$ 44,828 |
|
Other accrued expenses |
40,389 |
46,416 |
|
Total current liabilities |
78,614 |
91,244 |
|
|
|
|
|
Long-term liabilities |
44,324 |
34,795 |
|
|
|
|
|
Total liabilities |
122,938 |
126,039 |
|
|
|
|
|
Stockholders' equity |
389,552 |
407,339 |
|
Total liabilities and stockholders'
equity |
$ 512,490 |
$ 533,378 |
|
|
|
|
|
* December 31, 2011 amounts are derived from
the December 31, 2011 audited Consolidated Financial
Statements. |
|
|
|
|
|
|
|
|
|
|
|
ADVANCED ENERGY INDUSTRIES,
INC. |
|
|
|
SEGMENT INFORMATION
(UNAUDITED) |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
Three Months
Ended |
|
March
31, |
December 31, |
|
2012 |
2011 |
2011 |
SALES: |
|
|
|
Thin Films |
$ 60,390 |
$ 100,099 |
$ 54,420 |
Solar Energy |
45,397 |
37,553 |
58,075 |
Total Sales |
105,787 |
137,652 |
112,495 |
|
|
|
|
|
|
|
|
OPERATING INCOME: |
|
|
|
Thin Films |
$ 3,167 |
$ 24,824 |
$ 7,360 |
Solar Energy |
493 |
2,512 |
231 |
Total segment operating income |
3,660 |
27,336 |
7,591 |
Corporate expenses |
(462) |
(2,979) |
(6,460) |
Restructuring charges |
(2,575) |
-- |
(4,229) |
Other income, net |
411 |
663 |
721 |
Income (loss) from continuing operations
before income taxes |
$ 1,034 |
$ 25,020 |
$ (2,377) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED ENERGY INDUSTRIES,
INC. |
|
|
|
SELECTED OTHER DATA
(UNAUDITED) |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
Reconciliation of Non-GAAP measure -
income from operations without restructuring charge |
Three Months
Ended |
|
|
|
March 31, |
|
|
|
2012 |
|
|
|
|
|
|
Operating Income (loss), as reported |
$ 623 |
|
|
Add back: |
|
|
|
Restructuring charge |
2,575 |
|
|
Income from operations without restructuring
charge |
$ 3,198 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP measure -
income from continuing operations without restructuring
charge |
Three Months
Ended |
|
|
|
March 31, |
|
|
|
2012 |
|
|
|
|
|
|
Income (loss) from continuing operations, net
of tax, as reported |
$ 766 |
|
|
Add back: |
|
|
|
Restructuring charge, net of tax
benefit |
1,651 |
|
|
Income from continuing operations, net of tax
without restructuring charge |
$ 2,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP measure -
per share earnings from continuing operations without restructuring
charge |
Three Months
Ended |
|
|
|
March 31, |
|
|
|
2012 |
|
|
|
|
|
|
Diluted earnings per share from continuing
operations, as reported |
$ 0.02 |
|
|
Add back: |
|
|
|
per share impact of restructuring charge,
net of tax benefit |
0.04 |
|
|
Per share earnings from continuing operations
without restructuring charge |
$ 0.06 |
|
|
CONTACT: Danny Herron
Advanced Energy Industries, Inc.
970.407.6570
danny.herron@aei.com
Annie Leschin/Vanessa Lehr
Advanced Energy Industries, Inc.
970.407.6555
ir@aei.com
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From Jul 2023 to Jul 2024