Advanced Energy Industries, Inc. (Nasdaq: AEIS), today announced
financial results for the third quarter ended September 30, 2018.
“As expected, near-term delays in capital spending by some
semiconductor manufacturers impacted our revenues from
semiconductor markets,” said Yuval Wasserman, president and CEO.
“However, revenues from our Industrial markets reached another
record high, reflecting the benefits of our diversified growth
strategy, including our acquisition of LumaSense Technologies. We
expect our fourth quarter to be impacted by the continued pause in
semiconductor capital spending and by seasonally lower activity in
our Industrial markets. However, we believe the long-term drivers
in both markets to be intact. In addition, our customer focus and
commitment to innovation should allow us to grow faster than the
market.”
Third Quarter Results
Sales were $173.1 million in the third quarter of 2018 compared
with $196.0 million in the second quarter of 2018 and $176.6
million in the third quarter of 2017. The acquisition of
LumaSense contributed $5.6 million in revenue in the third
quarter.
GAAP income from continuing operations was $35.2 million or
$0.90 per diluted share in the third quarter of 2018 compared with
$46.4 million or $1.17 per diluted share in the second quarter of
2018, and $83.8 million or $2.09 per diluted share in the third
quarter of 2017. Third quarter 2017 results included a nonrecurring
tax benefit of $40.2 million associated with the solar inverter
business.
Non-GAAP income from continuing operations was $41.2 million or
$1.05 per diluted share in the third quarter of 2018, including
approximately $0.01 per diluted share from LumaSense. This compared
with $49.4 million or $1.25 per diluted share in the second quarter
of 2018, and $48.0 million or $1.19 per diluted share in the third
quarter of 2017. A reconciliation of non-GAAP measures is provided
in the tables below.
The company generated $30.6 million of operating cash from
continuing operations in the third quarter of 2018. During the
quarter the company repurchased approximately 533 thousand shares
for $31.0 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 2017 Annual Report on Form 10-K.
Fourth Quarter 2018 Guidance
Based on the company's current view, beliefs and assumptions,
its guidance for the fourth quarter of 2018 is within the following
ranges and does not incorporate any potential adjustments during
the measurement period associated with U.S. tax reform.
|
Q4 2018 |
Revenues |
$150M – $160M |
GAAP operating margins from continuing operations |
12.8% - 17.5% |
GAAP EPS from continuing operations |
$0.48 - $0.66 |
Non-GAAP operating margins from continuing operations |
20.0% - 22.0% |
Non-GAAP EPS from continuing operations |
$0.70 - $0.80 |
Third Quarter 2018 Conference Call
Management will host a conference call tomorrow morning,
Tuesday, October 30, 2018 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
315-625-6980. Participants will need to provide the operator with
the Conference ID Number 8489318, which has been reserved for this
call. For a replay of this teleconference, please call 855-859-2056
or 404-537-3406 and enter Conference ID Number 8489318. The replay
will be available for one week following the conference call. A
webcast will also be available on the company’s Investor Relations
web page at http://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 semiconductor and industrial manufacturing applications.
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.
For more information, contact:
Brian SmithAdvanced Energy(970) 407-6555brian.smith@aei.com
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 non-recurring items such as
acquisition-related costs and restructuring expenses. Additionally,
the third quarter non-GAAP results exclude estimated income tax
expense associated with U.S. tax reform. 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 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, 2018, potential
future growth and profitability, our future business mix,
expectations regarding future market trends and the company’s
future performance within specific markets (e.g., statements
regarding anticipated semiconductor and industrial market growth)
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 accuracy of the company’s estimates
related to fulfilling solar inverter product warranty and
post-warranty obligations; (e) the company’s ability to realize its
plan to avoid additional costs after the solar inverter wind-down;
(f) the accuracy of the company's assumptions on which its
financial statement projections are based; (g) the impact of
product price changes, which may result from a variety of factors;
(h) the timing of orders received from customers; (i) the company’s
ability to realize benefits from cost improvement efforts including
avoided costs, restructuring plans and inorganic growth; (j) the
company’s ability to obtain in a timely manner the materials
necessary to manufacture its products; (k) unanticipated changes to
management's estimates, reserves or allowances; (l) changes and
adjustments to the tax expense and benefits related to the recently
enacted U.S. tax reform; and (m) the effects of recent U.S.
government trade restrictions, Chinese retaliatory trade actions,
and other governmental action related to tariffs upon demand for
our 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
http://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, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Sales: |
|
|
|
|
|
|
|
|
|
Product |
$ |
144,843 |
|
|
$ |
152,363 |
|
|
$ |
169,235 |
|
|
$ |
485,287 |
|
|
$ |
424,478 |
|
Service |
28,239 |
|
|
24,212 |
|
|
26,797 |
|
|
79,444 |
|
|
67,320 |
|
Total sales |
173,082 |
|
|
176,575 |
|
|
196,032 |
|
|
564,731 |
|
|
491,798 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Product |
73,019 |
|
|
72,146 |
|
|
80,953 |
|
|
233,778 |
|
|
198,754 |
|
Service |
14,524 |
|
|
12,195 |
|
|
13,844 |
|
|
40,534 |
|
|
34,838 |
|
Total cost of sales |
87,543 |
|
|
84,341 |
|
|
94,797 |
|
|
274,312 |
|
|
233,592 |
|
Gross profit |
85,539 |
|
|
92,234 |
|
|
101,235 |
|
|
290,419 |
|
|
258,206 |
|
|
49.4 |
% |
|
52.2 |
% |
|
51.6 |
% |
|
51.4 |
% |
|
52.5 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
18,451 |
|
|
14,629 |
|
|
19,195 |
|
|
55,283 |
|
|
41,742 |
|
Selling, general and administrative |
25,386 |
|
|
24,692 |
|
|
24,758 |
|
|
78,792 |
|
|
70,580 |
|
Amortization of intangible assets |
1,437 |
|
|
1,240 |
|
|
1,264 |
|
|
3,958 |
|
|
3,176 |
|
Restructuring expense |
403 |
|
|
— |
|
|
— |
|
|
403 |
|
|
— |
|
Total operating expenses |
45,677 |
|
|
40,561 |
|
|
45,217 |
|
|
138,436 |
|
|
115,498 |
|
Operating income |
39,862 |
|
|
51,673 |
|
|
56,018 |
|
|
151,983 |
|
|
142,708 |
|
Other income (expense), net |
401 |
|
|
153 |
|
|
(485 |
) |
|
(58 |
) |
|
(3,138 |
) |
Income from continuing operations before income taxes |
40,263 |
|
|
51,826 |
|
|
55,533 |
|
|
151,925 |
|
|
139,570 |
|
Provision (benefit) for income taxes |
5,106 |
|
|
(31,968 |
) |
|
9,133 |
|
|
23,998 |
|
|
(25,538 |
) |
Income from continuing operations, net of income taxes |
35,157 |
|
|
83,794 |
|
|
46,400 |
|
|
127,927 |
|
|
165,108 |
|
Income (loss) from discontinued operations, net of income
taxes |
(371 |
) |
|
70 |
|
|
5 |
|
|
(226 |
) |
|
2,343 |
|
Net income |
34,786 |
|
|
83,864 |
|
|
46,405 |
|
|
127,701 |
|
|
167,451 |
|
Income from continuing operations attributable to noncontrolling
interest |
7 |
|
|
— |
|
|
44 |
|
|
82 |
|
|
— |
|
Net income attributable to Advanced Energy Industries,
Inc. |
$ |
34,779 |
|
|
$ |
83,864 |
|
|
$ |
46,361 |
|
|
$ |
127,619 |
|
|
$ |
167,451 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average common shares outstanding |
38,970 |
|
|
39,786 |
|
|
39,349 |
|
|
39,309 |
|
|
39,787 |
|
Diluted weighted-average common shares outstanding |
39,195 |
|
|
40,172 |
|
|
39,603 |
|
|
39,594 |
|
|
40,207 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Advanced
Energy Industries, Inc: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations: |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.90 |
|
|
$ |
2.11 |
|
|
$ |
1.18 |
|
|
$ |
3.25 |
|
|
$ |
4.15 |
|
Diluted earnings per share |
$ |
0.90 |
|
|
$ |
2.09 |
|
|
$ |
1.17 |
|
|
$ |
3.23 |
|
|
$ |
4.11 |
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
(0.01 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.01 |
) |
|
$ |
0.06 |
|
Diluted earnings per share |
$ |
(0.01 |
) |
|
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
(0.01 |
) |
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
Net income: |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.89 |
|
|
$ |
2.11 |
|
|
$ |
1.18 |
|
|
$ |
3.25 |
|
|
$ |
4.21 |
|
Diluted earnings per share |
$ |
0.89 |
|
|
$ |
2.09 |
|
|
$ |
1.17 |
|
|
$ |
3.23 |
|
|
$ |
4.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED ENERGY INDUSTRIES,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands)
|
September 30, |
|
December 31, |
|
2018 |
|
2017 |
ASSETS |
Unaudited |
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
338,673 |
|
|
$ |
407,283 |
|
Marketable securities |
3,058 |
|
|
3,104 |
|
Accounts and other receivable, net |
110,440 |
|
|
87,429 |
|
Inventories, net |
110,327 |
|
|
78,450 |
|
Income taxes receivable |
4,229 |
|
|
1,295 |
|
Other current assets |
9,777 |
|
|
8,129 |
|
Current assets of discontinued operations |
8,273 |
|
|
9,535 |
|
Total current assets |
584,777 |
|
|
595,225 |
|
|
|
|
|
Property and equipment, net |
30,174 |
|
|
17,795 |
|
|
|
|
|
Deposits and other assets |
5,608 |
|
|
3,051 |
|
Goodwill and intangibles, net |
157,884 |
|
|
87,311 |
|
Deferred income tax assets |
44,112 |
|
|
18,841 |
|
Non-current assets of discontinued operations |
11,077 |
|
|
11,085 |
|
Total assets |
$ |
833,632 |
|
|
$ |
733,308 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
45,620 |
|
|
$ |
48,177 |
|
Other accrued expenses |
73,081 |
|
|
50,092 |
|
Current liabilities of discontinued operations |
5,895 |
|
|
7,850 |
|
Total current liabilities |
124,596 |
|
|
106,119 |
|
|
|
|
|
Non-current liabilities of continuing
operations |
97,894 |
|
|
91,271 |
|
Non-current liabilities of discontinued
operations |
11,567 |
|
|
15,277 |
|
Long-term liabilities |
109,461 |
|
|
106,548 |
|
|
|
|
|
Total liabilities |
234,057 |
|
|
212,667 |
|
|
|
|
|
Advanced Energy stockholders’ equity |
599,062 |
|
|
520,641 |
|
Noncontrolling interest |
513 |
|
|
— |
|
Stockholders' equity |
599,575 |
|
|
520,641 |
|
Total liabilities and stockholders' equity |
$ |
833,632 |
|
|
$ |
733,308 |
|
|
|
|
|
December 31, 2017 amounts are derived from the December 31, 2017
audited Consolidated Financial Statements.
ADVANCED ENERGY INDUSTRIES,
INC.CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS(in thousands)
|
Nine Months Ended September
30, |
|
2018 |
|
2017 |
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
Net income |
$ |
127,701 |
|
|
$ |
167,451 |
|
Income from discontinued operations, net of income
taxes |
(226 |
) |
|
2,343 |
|
Income from continuing operations, net of income
taxes |
127,927 |
|
|
165,108 |
|
|
|
|
|
Adjustments to reconcile net income to net cash
provided by operating activities: |
|
|
|
Depreciation and amortization |
9,488 |
|
|
6,792 |
|
Stock-based compensation expense |
7,461 |
|
|
10,707 |
|
Provision for deferred income taxes |
— |
|
|
(26,185 |
) |
Loss on foreign exchange hedge |
— |
|
|
3,489 |
|
Net loss on disposal of assets |
167 |
|
|
106 |
|
Changes in operating assets and liabilities, net of
assets acquired |
(26,560 |
) |
|
(19,710 |
) |
Net cash provided by operating activities from
continuing operations |
118,483 |
|
|
140,307 |
|
Net cash used in operating activities from
discontinued operations |
(4,550 |
) |
|
(7,293 |
) |
Net cash provided by operating activities |
113,933 |
|
|
133,014 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
Purchases of marketable securities |
(93 |
) |
|
(86 |
) |
Proceeds from sale of marketable securities |
6 |
|
|
1,883 |
|
Acquisitions, net of cash acquired |
(93,801 |
) |
|
(17,347 |
) |
Purchase of foreign exchange hedge |
— |
|
|
(3,489 |
) |
Purchases of property and equipment |
(16,586 |
) |
|
(5,646 |
) |
Net cash used in investing activities from
continuing operations |
(110,474 |
) |
|
(24,685 |
) |
Net cash used in investing activities from
discontinued operations |
— |
|
|
— |
|
Net cash used in investing activities |
(110,474 |
) |
|
(24,685 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
Purchase and retirement of common stock |
(69,021 |
) |
|
(24,998 |
) |
Net payments related to stock-based award
activities |
(2,636 |
) |
|
(1,902 |
) |
Net cash used in financing activities from
continuing operations |
(71,657 |
) |
|
(26,900 |
) |
Net cash used in financing activities from
discontinued operations |
— |
|
|
— |
|
Net cash used in financing activities |
(71,657 |
) |
|
(26,900 |
) |
EFFECT OF CURRENCY TRANSLATION ON CASH |
(722 |
) |
|
1,138 |
|
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS |
(68,920 |
) |
|
82,567 |
|
CASH AND CASH EQUIVALENTS, beginning of period |
415,037 |
|
|
289,517 |
|
CASH AND CASH EQUIVALENTS, end of period |
346,117 |
|
|
372,084 |
|
Less cash and cash equivalents from discontinued
operations |
7,444 |
|
|
5,512 |
|
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end
of period |
$ |
338,673 |
|
|
$ |
366,572 |
|
|
|
|
|
|
|
|
|
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, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Gross profit from continuing operations, as reported |
$ |
85,539 |
|
|
$ |
92,234 |
|
|
$ |
101,235 |
|
|
$ |
290,419 |
|
|
$ |
258,206 |
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
76 |
|
|
334 |
|
|
149 |
|
|
576 |
|
|
1,048 |
|
Facility transition and relocation costs |
725 |
|
|
— |
|
|
249 |
|
|
974 |
|
|
— |
|
Acquisition-related costs |
158 |
|
|
— |
|
|
— |
|
|
158 |
|
|
— |
|
Non-GAAP gross profit from continuing operations |
86,498 |
|
|
92,568 |
|
|
101,633 |
|
|
292,127 |
|
|
259,254 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses from continuing operations, as reported |
45,677 |
|
|
40,561 |
|
|
45,217 |
|
|
138,436 |
|
|
115,498 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
(1,437 |
) |
|
(1,240 |
) |
|
(1,264 |
) |
|
(3,958 |
) |
|
(3,176 |
) |
Stock-based compensation |
(948 |
) |
|
(3,119 |
) |
|
(1,794 |
) |
|
(6,885 |
) |
|
(9,659 |
) |
Acquisition-related costs |
(705 |
) |
|
— |
|
|
(255 |
) |
|
(1,310 |
) |
|
(150 |
) |
Facility expansion and relocation costs |
(29 |
) |
|
— |
|
|
(13 |
) |
|
(518 |
) |
|
— |
|
Restructuring charges |
(403 |
) |
|
— |
|
|
— |
|
|
(403 |
) |
|
— |
|
Non-GAAP operating expenses from continuing operations |
42,155 |
|
|
36,202 |
|
|
41,891 |
|
|
125,362 |
|
|
102,513 |
|
Non-GAAP operating income from continuing operations |
$ |
44,343 |
|
|
$ |
56,366 |
|
|
$ |
59,742 |
|
|
$ |
166,765 |
|
|
$ |
156,741 |
|
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, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Gross profit from continuing operations, as reported |
49.4 |
% |
|
52.2 |
% |
|
51.6 |
% |
|
51.4 |
% |
|
52.5 |
% |
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
— |
|
|
0.2 |
|
|
0.1 |
|
|
0.1 |
|
|
0.2 |
|
Facility transition and relocation costs |
0.5 |
|
|
— |
|
|
0.1 |
|
|
0.2 |
|
|
— |
|
Acquisition-related costs |
0.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Non-GAAP gross profit from continuing operations |
50.0 |
|
|
52.4 |
|
|
51.8 |
|
|
51.7 |
|
|
52.7 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses from continuing operations, as reported |
26.4 |
|
|
23.0 |
|
|
23.1 |
|
|
24.5 |
|
|
23.5 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
(0.8 |
) |
|
(0.7 |
) |
|
(0.6 |
) |
|
(0.7 |
) |
|
(0.6 |
) |
Stock-based compensation |
(0.6 |
) |
|
(1.8 |
) |
|
(1.1 |
) |
|
(1.2 |
) |
|
(2.1 |
) |
Acquisition-related costs |
(0.4 |
) |
|
— |
|
|
(0.1 |
) |
|
(0.2 |
) |
|
— |
|
Facility expansion and relocation costs |
— |
|
|
— |
|
|
— |
|
|
(0.1 |
) |
|
— |
|
Restructuring charges |
(0.2 |
) |
|
— |
|
|
— |
|
|
(0.1 |
) |
|
— |
|
Non-GAAP operating expenses from continuing operations |
24.4 |
|
|
20.5 |
|
|
21.3 |
|
|
22.2 |
|
|
20.8 |
|
Non-GAAP operating income from continuing operations |
25.6 |
% |
|
31.9 |
% |
|
30.5 |
% |
|
29.5 |
% |
|
31.9 |
% |
Reconciliation of Non-GAAP measure - income excluding
certain items |
Three Months
Ended |
|
Nine Months
Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Income from continuing operations, less noncontrolling interest,
net of income taxes |
$ |
35,150 |
|
|
$ |
83,794 |
|
|
$ |
46,356 |
|
|
$ |
127,845 |
|
|
$ |
165,108 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
1,437 |
|
|
1,240 |
|
|
1,264 |
|
|
3,958 |
|
|
3,176 |
|
Stock-based compensation |
1,024 |
|
|
3,453 |
|
|
1,943 |
|
|
7,461 |
|
|
10,707 |
|
Acquisition-related costs |
863 |
|
|
— |
|
|
255 |
|
|
1,468 |
|
|
150 |
|
Facility expansion and relocation costs |
754 |
|
|
— |
|
|
262 |
|
|
1,492 |
|
|
— |
|
Restructuring charges |
403 |
|
|
— |
|
|
— |
|
|
403 |
|
|
— |
|
Nonrecurring tax (benefit) expense associated with
inverter business |
— |
|
|
(40,194 |
) |
|
— |
|
|
— |
|
|
(40,194 |
) |
Loss on foreign exchange hedge |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,489 |
|
Incremental expense associated with start-up of the
Asia regional headquarters |
— |
|
|
1,133 |
|
|
— |
|
|
— |
|
|
1,133 |
|
Tax Cuts and Jobs Act Impact |
2,398 |
|
|
— |
|
|
— |
|
|
4,251 |
|
|
— |
|
Tax effect of Non-GAAP adjustments |
(843 |
) |
|
(1,426 |
) |
|
(704 |
) |
|
(2,890 |
) |
|
(4,451 |
) |
Non-GAAP income from continuing operations, net of income
taxes |
$ |
41,186 |
|
|
$ |
48,000 |
|
|
$ |
49,376 |
|
|
$ |
143,988 |
|
|
$ |
139,118 |
|
Reconciliation of Non-GAAP measure - per share earnings
excluding certain items |
Three Months
Ended |
|
Nine Months
Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Diluted earnings per share from continuing operations, as
reported |
$ |
0.90 |
|
|
$ |
2.09 |
|
|
$ |
1.17 |
|
|
$ |
3.23 |
|
|
$ |
4.11 |
|
Add back: |
|
|
|
|
|
|
|
|
|
per share impact of Non-GAAP adjustments, net of
tax |
0.15 |
|
|
(0.90 |
) |
|
0.08 |
|
|
0.41 |
|
|
(0.65 |
) |
Non-GAAP per share earnings from continuing operations |
$ |
1.05 |
|
|
$ |
1.19 |
|
|
$ |
1.25 |
|
|
$ |
3.64 |
|
|
$ |
3.46 |
|
Reconciliation of Q4 2018 Guidance |
|
|
|
|
Low End |
|
High End |
|
|
|
|
Revenue |
$150 million |
|
$160 million |
|
|
|
|
Reconciliation of Non-GAAP operating margin |
|
|
|
GAAP operating margin |
12.8 |
% |
|
17.5 |
% |
Stock-based compensation |
1.5 |
% |
|
1.3 |
% |
Amortization of intangible assets |
1.3 |
% |
|
1.1 |
% |
Restructuring and other |
4.4 |
% |
|
2.1 |
% |
Non-GAAP operating margin |
20.0 |
% |
|
22.0 |
% |
|
|
|
|
Reconciliation of Non-GAAP earnings per share |
|
|
|
GAAP earnings per share |
$ |
0.48 |
|
|
$ |
0.66 |
|
Stock-based compensation |
0.06 |
|
|
0.05 |
|
Amortization of intangible assets |
0.05 |
|
|
0.05 |
|
Restructuring and other |
0.17 |
|
|
0.08 |
|
Tax effects of excluded items |
(0.06 |
) |
|
(0.04 |
) |
Non-GAAP earnings per share |
$ |
0.70 |
|
|
$ |
0.80 |
|
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