Advanced Energy Industries, Inc. (Nasdaq: AEIS), today announced
financial results for the fourth quarter and full fiscal year ended
December 31, 2018.
"Despite a slower second half, we completed 2018 with record
annual revenues, solid profitability and robust cash flow
generation. While the semiconductor market is experiencing a
cyclical downturn, we continue to see a bright future for the long
term," said Yuval Wasserman, president and CEO. "We remain
confident in the multiple growth drivers of our business and are
focused on executing our expansion and diversification growth
strategies in both the semiconductor and industrial technologies
markets."
Fourth Quarter Results
Sales were $154.2 million in the fourth quarter of 2018 compared
with $173.1 million in the third quarter of 2018 and $179.2 million
in the fourth quarter of 2017.
GAAP net income from continuing operations was $19.2 million or
$0.50 per diluted share in the fourth quarter of 2018 compared with
$35.2 million or $0.90 per diluted share in the third quarter of
2018, and a loss of $29.0 million or $0.73 per share in the fourth
quarter of 2017. Fourth quarter 2018 results were impacted by $3.8
million of restructuring charges. Fourth quarter 2017 results
included one-time tax expenses of $6.4 million associated
with the write-down of the solar inverter business and $72.9
million associated with the U.S. tax reform enacted in 2017.
Non-GAAP net income was $28.0 million or $0.73 per diluted share
in the fourth quarter of 2018. This compares with $41.2 million or
$1.05 per diluted share in the third quarter of 2018, and $52.4
million or $1.31 per diluted share in the fourth quarter of 2017. A
reconciliation of non-GAAP measures is provided in the tables
below.
The company generated $32.9 million of operating cash from
continuing operations in the fourth quarter of 2018. During the
quarter the company repurchased 575,469 shares for $26.1
million.
Full Year 2018 Results
Sales were $718.9 million in 2018 compared with $671.0 million
in 2017, an increase of 7.1%.
GAAP net income from continuing operations was $147.1 million or
$3.74 per diluted share in 2018 compared with $136.1 million or
$3.39 per diluted share in 2017.
Non-GAAP net income was $172.0 million or $4.37 per diluted
share in 2018 compared to $191.5 million or $4.77 per diluted share
in 2017. A reconciliation of non-GAAP measures is provided in the
tables below.
The company generated $151.4 million of operating cash from
continuing operations in 2018 and ended the year with $351.8
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 2017 Annual Report on Form 10-K.
First Quarter 2019 Guidance
Based on the company's current view, beliefs and assumptions,
its guidance for the first quarter of 2019 is within the following
ranges.
|
|
|
|
|
Q1 2019 |
Revenues |
|
$138M
- $148M |
GAAP EPS from
continuing operations |
|
$0.24
- $0.42 |
Non-GAAP EPS from
continuing operations |
|
$0.40
- $0.55 |
|
|
|
Fourth Quarter 2018 Conference Call
Management will host a conference call tomorrow morning,
Tuesday, February 5, 2019 at 6:30 a.m. Mountain Time/ 8:30 a.m.
Eastern Time to discuss Advanced Energy's financial results.
Domestic callers may access this conference call by dialing
855-232-8958. International callers may access the call by dialing
315-625-6980. Participants will need to provide the operator with
the Conference ID Number 2931549, 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 2931549. 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 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 discontinued operations, and
non-recurring items such as acquisition-related costs and
restructuring expenses. Additionally, the fourth 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 first quarter ending March 31, 2019, potential
future growth and profitability, our future business mix,
expectations regarding future market trends and the company’s
future performance within specific markets (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 U.S. tax
reform that was enacted in late 2017; and (m) the effects of recent
U.S. government trade and export restrictions, Chinese retaliatory
trade actions, and other governmental action related to tariffs
upon the demand for our, and our customers', products and services
and the U.S. economy. These and other risks are described in
Advanced Energy's Form 10-K, Forms 10-Q and other reports and
statements filed with the Securities and Exchange Commission (the
“SEC”). These reports and statements are available on the SEC's
website at www.sec.gov. Copies may also be obtained from Advanced
Energy's investor relations page at ir.advanced-energy.com or by
contacting Advanced Energy's investor relations at 970-407-6555.
Forward-looking statements are made and based on information
available to the company on the date of this press release.
Aspirational goals and targets discussed on the conference call or
in the presentation materials should not be interpreted in any
respect as guidance. The company assumes no obligation to update
the information in this press release.
ADVANCED ENERGY INDUSTRIES,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)(in thousands, except per
share data)
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Sales: |
|
|
|
|
|
|
|
|
|
Product |
$ |
125,039 |
|
|
$ |
154,172 |
|
|
$ |
144,843 |
|
|
$ |
610,326 |
|
|
$ |
578,650 |
|
Service |
29,122 |
|
|
25,042 |
|
|
28,239 |
|
|
108,566 |
|
|
92,362 |
|
Total
sales |
154,161 |
|
|
179,214 |
|
|
173,082 |
|
|
718,892 |
|
|
671,012 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
Product |
64,819 |
|
|
68,833 |
|
|
73,019 |
|
|
298,597 |
|
|
267,587 |
|
Service |
14,154 |
|
|
12,206 |
|
|
14,524 |
|
|
54,688 |
|
|
47,044 |
|
Total
cost of sales |
78,973 |
|
|
81,039 |
|
|
87,543 |
|
|
353,285 |
|
|
314,631 |
|
Gross profit |
75,188 |
|
|
98,175 |
|
|
85,539 |
|
|
365,607 |
|
|
356,381 |
|
|
48.8 |
% |
|
54.8 |
% |
|
49.4 |
% |
|
50.9 |
% |
|
53.1 |
% |
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
20,725 |
|
|
16,257 |
|
|
18,451 |
|
|
76,008 |
|
|
57,999 |
|
Selling,
general and administrative |
29,241 |
|
|
22,682 |
|
|
25,386 |
|
|
108,033 |
|
|
93,262 |
|
Amortization of intangible assets |
1,816 |
|
|
1,174 |
|
|
1,437 |
|
|
5,774 |
|
|
4,350 |
|
Restructuring expense |
3,836 |
|
|
— |
|
|
403 |
|
|
4,239 |
|
|
— |
|
Total
operating expenses |
55,618 |
|
|
40,113 |
|
|
45,677 |
|
|
194,054 |
|
|
155,611 |
|
Operating income |
19,570 |
|
|
58,062 |
|
|
39,862 |
|
|
171,553 |
|
|
200,770 |
|
Other
income (expense), net |
881 |
|
|
559 |
|
|
401 |
|
|
823 |
|
|
(2,579 |
) |
Income from continuing
operations before income taxes |
20,451 |
|
|
58,621 |
|
|
40,263 |
|
|
172,376 |
|
|
198,191 |
|
Provision (benefit) for
income taxes |
1,229 |
|
|
87,628 |
|
|
5,106 |
|
|
25,227 |
|
|
62,090 |
|
Income from continuing
operations, net of income taxes |
19,222 |
|
|
(29,007 |
) |
|
35,157 |
|
|
147,149 |
|
|
136,101 |
|
Income (loss) from
discontinued operations, net of income taxes |
188 |
|
|
(583 |
) |
|
(371 |
) |
|
(38 |
) |
|
1,760 |
|
Net income |
19,410 |
|
|
(29,590 |
) |
|
34,786 |
|
|
147,111 |
|
|
137,861 |
|
Income from continuing
operations attributable to noncontrolling interest |
4 |
|
|
— |
|
|
7 |
|
|
86 |
|
|
— |
|
Net income
attributable to Advanced Energy Industries, Inc. |
$ |
19,406 |
|
|
$ |
(29,590 |
) |
|
$ |
34,779 |
|
|
$ |
147,025 |
|
|
$ |
137,861 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average
common shares outstanding |
38,386 |
|
|
39,642 |
|
|
38,970 |
|
|
39,081 |
|
|
39,754 |
|
Diluted
weighted-average common shares outstanding |
38,595 |
|
|
40,051 |
|
|
39,195 |
|
|
39,352 |
|
|
40,176 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Advanced Energy
Industries, Inc: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations: |
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.50 |
|
|
$ |
(0.73 |
) |
|
$ |
0.90 |
|
|
$ |
3.76 |
|
|
$ |
3.42 |
|
Diluted
earnings per share |
$ |
0.50 |
|
|
$ |
(0.73 |
) |
|
$ |
0.90 |
|
|
$ |
3.74 |
|
|
$ |
3.39 |
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.00 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.00 |
|
|
$ |
0.04 |
|
Diluted
earnings per share |
$ |
0.00 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
$ |
0.00 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
Net income: |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.51 |
|
|
$ |
(0.75 |
) |
|
$ |
0.89 |
|
|
$ |
3.76 |
|
|
$ |
3.47 |
|
Diluted earnings per share |
$ |
0.50 |
|
|
$ |
(0.75 |
) |
|
$ |
0.89 |
|
|
$ |
3.74 |
|
|
$ |
3.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADVANCED ENERGY INDUSTRIES,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands)
|
December 31, |
|
December 31, |
|
2018 |
|
2017 |
ASSETS |
Unaudited |
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
349,301 |
|
|
$ |
407,283 |
|
Marketable securities |
2,470 |
|
|
3,104 |
|
Accounts
and other receivable, net |
100,442 |
|
|
87,429 |
|
Inventories, net |
97,987 |
|
|
78,450 |
|
Income
taxes receivable |
2,220 |
|
|
1,295 |
|
Other
current assets |
10,173 |
|
|
8,129 |
|
Current
assets of discontinued operations |
5,855 |
|
|
9,535 |
|
Total current
assets |
568,448 |
|
|
595,225 |
|
|
|
|
|
Property and equipment,
net |
31,269 |
|
|
17,795 |
|
|
|
|
|
Deposits and other
assets |
6,874 |
|
|
3,051 |
|
Goodwill and
intangibles, net |
156,810 |
|
|
87,311 |
|
Deferred income tax
assets |
47,099 |
|
|
18,841 |
|
Non-current assets of
discontinued operations |
5,984 |
|
|
11,085 |
|
Total assets |
$ |
816,484 |
|
|
$ |
733,308 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
39,646 |
|
|
$ |
48,177 |
|
Other
accrued expenses |
65,377 |
|
|
50,092 |
|
Current
liabilities of discontinued operations |
5,286 |
|
|
7,850 |
|
Total current
liabilities |
110,309 |
|
|
106,119 |
|
|
|
|
|
Non-current liabilities of continuing operations |
88,158 |
|
|
91,271 |
|
Non-current liabilities of discontinued operations |
10,715 |
|
|
15,277 |
|
Long-term
liabilities |
98,873 |
|
|
106,548 |
|
|
|
|
|
Total liabilities |
209,182 |
|
|
212,667 |
|
|
|
|
|
Advanced Energy
stockholders’ equity |
606,790 |
|
|
520,641 |
|
Noncontrolling
interest |
512 |
|
|
— |
|
Stockholders'
equity |
607,302 |
|
|
520,641 |
|
Total liabilities and
stockholders' equity |
$ |
816,484 |
|
|
$ |
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)
|
Years Ended December 31, |
|
2018 |
|
2017 |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
Net income |
$ |
147,111 |
|
|
$ |
137,861 |
|
Income
from discontinued operations, net of income taxes |
(38 |
) |
|
1,760 |
|
Income
from continuing operations, net of income taxes |
147,149 |
|
|
136,101 |
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
13,592 |
|
|
9,424 |
|
Stock-based compensation expense |
9,703 |
|
|
12,549 |
|
Provision
for deferred income taxes |
5,618 |
|
|
28,765 |
|
Loss on
foreign exchange hedge |
— |
|
|
3,489 |
|
Net loss
on disposal of assets |
481 |
|
|
122 |
|
Changes
in operating assets and liabilities, net of assets acquired |
(25,116 |
) |
|
(494 |
) |
Net cash
provided by operating activities from continuing operations |
151,427 |
|
|
189,956 |
|
Net cash
used in operating activities from discontinued operations |
(156 |
) |
|
(7,255 |
) |
Net cash
provided by operating activities |
151,271 |
|
|
182,701 |
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
Purchases
of marketable securities |
(95 |
) |
|
(107 |
) |
Proceeds
from sale of marketable securities |
589 |
|
|
1,903 |
|
Acquisitions, net of cash acquired |
(93,756 |
) |
|
(17,347 |
) |
Purchase
of foreign exchange hedge |
— |
|
|
(3,489 |
) |
Purchases
of property and equipment |
(20,330 |
) |
|
(9,042 |
) |
Net cash
used in investing activities from continuing operations |
(113,592 |
) |
|
(28,082 |
) |
Net cash
used in investing activities from discontinued operations |
— |
|
|
— |
|
Net cash
used in investing activities |
(113,592 |
) |
|
(28,082 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
Purchase
and retirement of common stock |
(95,125 |
) |
|
(29,993 |
) |
Net
payments related to stock-based award activities |
(2,009 |
) |
|
(1,314 |
) |
Net cash
used in financing activities from continuing operations |
(97,134 |
) |
|
(31,307 |
) |
Net cash
used in financing activities from discontinued operations |
— |
|
|
— |
|
Net cash
used in financing activities |
(97,134 |
) |
|
(31,307 |
) |
EFFECT OF
CURRENCY TRANSLATION ON CASH |
(1,030 |
) |
|
2,208 |
|
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS |
(60,485 |
) |
|
125,520 |
|
CASH AND CASH
EQUIVALENTS, beginning of period |
415,037 |
|
|
289,517 |
|
CASH AND CASH
EQUIVALENTS, end of period |
354,552 |
|
|
415,037 |
|
Less cash and
cash equivalents from discontinued operations |
5,251 |
|
|
7,754 |
|
CASH AND CASH
EQUIVALENTS FROM CONTINUING OPERATIONS, end of period |
$ |
349,301 |
|
|
$ |
407,283 |
|
|
|
|
|
|
|
|
|
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, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Gross profit from
continuing operations, as reported |
$ |
75,188 |
|
|
$ |
98,175 |
|
|
$ |
85,539 |
|
|
$ |
365,607 |
|
|
$ |
356,381 |
|
Adjustments to gross
profit: |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
166 |
|
|
346 |
|
|
76 |
|
|
742 |
|
|
1,394 |
|
Facility
transition and relocation costs |
354 |
|
|
— |
|
|
725 |
|
|
1,328 |
|
|
— |
|
Acquisition-related costs |
411 |
|
|
— |
|
|
158 |
|
|
569 |
|
|
— |
|
Non-GAAP gross
profit |
76,119 |
|
|
98,521 |
|
|
86,498 |
|
|
368,246 |
|
|
357,775 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses from
continuing operations, as reported |
55,618 |
|
|
40,113 |
|
|
45,677 |
|
|
194,054 |
|
|
155,611 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
(1,816 |
) |
|
(1,174 |
) |
|
(1,437 |
) |
|
(5,774 |
) |
|
(4,350 |
) |
Stock-based compensation |
(2,077 |
) |
|
(1,496 |
) |
|
(948 |
) |
|
(8,961 |
) |
|
(11,155 |
) |
Acquisition-related costs |
(416 |
) |
|
— |
|
|
(705 |
) |
|
(1,726 |
) |
|
(150 |
) |
Facility
expansion and relocation costs |
— |
|
|
— |
|
|
(29 |
) |
|
(518 |
) |
|
— |
|
Restructuring charges |
(3,836 |
) |
|
— |
|
|
(403 |
) |
|
(4,239 |
) |
|
— |
|
Non-GAAP operating
expenses |
47,473 |
|
|
37,443 |
|
|
42,155 |
|
|
172,836 |
|
|
139,956 |
|
Non-GAAP operating
income |
$ |
28,646 |
|
|
$ |
61,078 |
|
|
$ |
44,343 |
|
|
$ |
195,410 |
|
|
$ |
217,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Non-GAAP measure - operating expenses and operating income,
excluding certain items |
Three Months Ended |
|
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Gross profit from
continuing operations, as reported |
48.8 |
% |
|
54.8 |
% |
|
49.4 |
% |
|
50.9 |
% |
|
53.1 |
% |
Adjustments to gross
profit: |
|
|
|
|
|
|
|
|
|
Stock-based compensation |
0.1 |
|
|
0.2 |
|
|
— |
|
|
0.1 |
|
|
0.2 |
|
Facility
transition and relocation costs |
0.2 |
|
|
— |
|
|
0.5 |
|
|
0.1 |
|
|
— |
|
Acquisition-related costs |
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
— |
|
Non-GAAP gross
profit |
49.4 |
|
|
55.0 |
|
|
50.0 |
|
|
51.2 |
|
|
53.3 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses from
continuing operations, as reported |
36.1 |
|
|
22.4 |
|
|
26.4 |
|
|
27.0 |
|
|
23.2 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
(1.2 |
) |
|
(0.7 |
) |
|
(0.8 |
) |
|
(0.8 |
) |
|
(0.6 |
) |
Stock-based compensation |
(1.3 |
) |
|
(0.8 |
) |
|
(0.6 |
) |
|
(1.3 |
) |
|
(1.8 |
) |
Acquisition-related costs |
(0.3 |
) |
|
— |
|
|
(0.4 |
) |
|
(0.2 |
) |
|
— |
|
Facility
expansion and relocation costs |
— |
|
|
— |
|
|
— |
|
|
(0.1 |
) |
|
— |
|
Restructuring charges |
(2.5 |
) |
|
— |
|
|
(0.2 |
) |
|
(0.6 |
) |
|
— |
|
Non-GAAP operating
expenses |
30.8 |
|
|
20.9 |
|
|
24.4 |
|
|
24.0 |
|
|
20.8 |
|
Non-GAAP operating
income |
18.6 |
% |
|
34.1 |
% |
|
25.6 |
% |
|
27.2 |
% |
|
32.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Non-GAAP measure - income excluding certain items |
Three Months Ended |
|
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Income from continuing
operations, less noncontrolling interest, net of income taxes |
$ |
19,218 |
|
|
$ |
(29,007 |
) |
|
$ |
35,150 |
|
|
$ |
147,063 |
|
|
$ |
136,101 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
1,816 |
|
|
1,174 |
|
|
1,437 |
|
|
5,774 |
|
|
4,350 |
|
Stock-based compensation |
2,243 |
|
|
1,842 |
|
|
1,024 |
|
|
9,703 |
|
|
12,549 |
|
Acquisition-related costs |
827 |
|
|
— |
|
|
863 |
|
|
2,295 |
|
|
150 |
|
Facility
expansion and relocation costs |
354 |
|
|
— |
|
|
754 |
|
|
1,846 |
|
|
— |
|
Restructuring charges |
3,836 |
|
|
— |
|
|
403 |
|
|
4,239 |
|
|
— |
|
Nonrecurring tax (benefit) expense associated with inverter
business |
— |
|
|
6,357 |
|
|
— |
|
|
— |
|
|
(33,837 |
) |
Loss on
foreign exchange hedge |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,489 |
|
Incremental expense associated with start-up of the Asia regional
headquarters |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,133 |
|
Tax Cuts
and Jobs Act Impact |
1,452 |
|
|
72,867 |
|
|
2,398 |
|
|
5,703 |
|
|
72,867 |
|
Tax
effect of Non-GAAP adjustments |
(1,736 |
) |
|
(813 |
) |
|
(843 |
) |
|
(4,626 |
) |
|
(5,264 |
) |
Non-GAAP income, net of
income taxes |
$ |
28,010 |
|
|
$ |
52,420 |
|
|
$ |
41,186 |
|
|
$ |
171,997 |
|
|
$ |
191,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Non-GAAP measure - per share earnings excluding certain
items |
Three Months Ended |
|
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
Diluted earnings per
share from continuing operations, as reported |
$ |
0.50 |
|
|
$ |
(0.73 |
) |
|
$ |
0.90 |
|
|
$ |
3.74 |
|
|
$ |
3.39 |
|
Add back: |
|
|
|
|
|
|
|
|
|
per share
impact of Non-GAAP adjustments, net of tax |
0.23 |
|
|
2.04 |
|
|
0.15 |
|
|
0.63 |
|
|
1.38 |
|
Non-GAAP per share
earnings |
$ |
0.73 |
|
|
$ |
1.31 |
|
|
$ |
1.05 |
|
|
$ |
4.37 |
|
|
$ |
4.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Q1 2019 Guidance |
|
|
|
|
Low End |
|
High End |
|
|
|
|
Revenue |
$138.0 million |
|
$148.0 million |
|
|
|
|
Reconciliation
of Non-GAAP earnings per share |
|
|
|
GAAP earnings per
share |
$ |
0.24 |
|
|
$ |
0.42 |
|
Stock-based compensation |
0.13 |
|
|
0.10 |
|
Amortization of intangible assets |
0.05 |
|
|
0.05 |
|
Restructuring and other |
0.01 |
|
|
0.01 |
|
Tax
effects of excluded items |
(0.03 |
) |
|
(0.03 |
) |
Non-GAAP
earnings per share |
$ |
0.40 |
|
|
$ |
0.55 |
|
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