Advanced Energy Announces Fourth Quarter Results
Advanced Energy Announces Fourth Quarter Results
Feb 03, 2014 4:21 PM Eastern Standard Time
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Revenue of
$153 million -
GAAP earnings of
$0.83 per diluted share -
Non-GAAP earnings of
$0.67 per diluted share -
Ended quarter with
$150 million in cash
"Two years into our strategic plan, we have increased our global presence, completed our restructuring, improved margins, accelerated revenues and effectively utilized our cash for acquisitions and share repurchases, all in order to return value to our shareholders," said
Solar Energy
Solar Energy sales were
Income from Continuing Operations
Income from continuing operations for the fourth quarter was
Restructuring Activities
During the fourth quarter, the company recorded a pre-tax restructuring charge of
First Quarter 2014 Guidance
The company anticipates first quarter 2014 results from continuing operations to continue our trend of significant year-over-year increases. This guidance reflects some Solar seasonality partially offset by demand for new products and the resulting impact of last quarter's strong OEM sales in
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Sales of
$138 million to$146 million ($112 million in Q1 2013) -
Earnings per share of
$0.36 to$0.42 ($0.17 in Q1 2013) -
Non-GAAP earnings per share of
$0.41 to$0.47 ($0.29 in Q1 2013)
Fourth Quarter 2013 Conference Call
Management will host a conference call tomorrow,
About Advanced Energy
This release includes GAAP and non-GAAP income and per share earnings data. Please note that beginning in 2013, Advanced Energy redefined its non-GAAP measures to exclude restructuring charges, acquisition –related costs, stock based compensation and amortization of intangibles and tax release items. 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.
Please refer to the Form 8-K regarding this release furnished today to the
Forward-Looking Statements
The company's expectations with respect to guidance to financial results for the first quarter ending
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||
(in thousands, except per share data) | |||||
Three Months Ended | Year Ended | ||||
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2013 | 2012 | 2013 | 2013 | 2012 | |
SALES | $ 152,580 | $ 112,971 | $ 142,899 | $ 547,004 | $ 451,931 |
COST OF SALES | 93,753 | 74,425 | 86,688 | 336,868 | 284,185 |
GROSS PROFIT | 58,827 | 38,546 | 56,211 | 210,136 | 167,746 |
38.6% | 34.1% | 39.3% | 38.4% | 37.1% | |
OPERATING EXPENSES: | |||||
Research and development | 13,216 | 13,895 | 15,105 | 58,314 | 58,076 |
Selling, general and administrative | 21,960 | 15,556 | 22,138 | 84,662 | 69,127 |
Restructuring charges and asset impairments | 2,305 | 2,039 | 19,884 | 46,395 | 7,473 |
Amortization of intangible assets | 1,328 | 1,557 | 626 | 6,142 | 5,696 |
Total operating expenses | 38,809 | 33,047 | 57,753 | 195,513 | 140,372 |
Operating income (loss) | 20,018 | 5,499 | (1,542) | 14,623 | 27,374 |
Other income (expense), net | 30 | 181 | 164 | (339) | 2,432 |
Income (loss) from continuing operations before income taxes | 20,048 | 5,680 | (1,378) | 14,284 | 29,806 |
Provision (benefit) for income taxes | (14,307) | 806 | (2,065) | (17,802) | 9,630 |
INCOME FROM CONTINUING OPERATIONS, NET OF INCOME TAXES | 34,355 | 4,874 | 687 | 32,086 | 20,176 |
Income (loss) from discontinued operations, net of income taxes | -- | (25) | -- | -- | 405 |
NET INCOME | $ 34,355 | $ 4,849 | $ 687 | $ 32,086 | $ 20,581 |
Basic weighted-average common shares outstanding | 40,284 | 37,955 | 39,878 | 39,597 | 38,879 |
Diluted weighted-average common shares outstanding | 41,332 | 38,484 | 40,577 | 40,667 | 39,447 |
EARNINGS PER SHARE: | |||||
CONTINUING OPERATIONS: | |||||
BASIC EARNINGS PER SHARE | $ 0.85 | $ 0.13 | $ 0.02 | $ 0.81 | $ 0.52 |
DILUTED EARNINGS PER SHARE | $ 0.83 | $ 0.13 | $ 0.02 | $ 0.79 | $ 0.51 |
DISCONTINUED OPERATIONS | |||||
BASIC EARNINGS PER SHARE | $ -- | $ (0.00) | $ -- | $ -- | $ 0.01 |
DILUTED EARNINGS PER SHARE | $ -- | $ (0.00) | $ -- | $ -- | $ 0.01 |
NET INCOME: | |||||
BASIC EARNINGS PER SHARE | $ 0.85 | $ 0.13 | $ 0.02 | $ 0.81 | $ 0.53 |
DILUTED EARNINGS PER SHARE | $ 0.83 | $ 0.13 | $ 0.02 | $ 0.79 | $ 0.52 |
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CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(in thousands) | |||||
December 31, | December 31, | ||||
2013 | 2012 | ||||
ASSETS | UNAUDITED | ||||
Current assets: | |||||
Cash and cash equivalents | $ 138,125 | $ 146,564 | |||
Marketable securities | 11,568 | 25,683 | |||
Accounts receivable, net | 125,782 | 83,914 | |||
Inventories, net | 109,771 | 81,482 | |||
Deferred income tax assets | 10,746 | 19,477 | |||
Income taxes receivable | 9,423 | 4,951 | |||
Other current assets | 10,950 | 9,075 | |||
Total current assets | 416,365 | 371,146 | |||
Property and equipment, net | 34,888 | 39,523 | |||
Deposits and other | 2,421 | 7,529 | |||
Goodwill and intangibles, net | 177,211 | 106,600 | |||
Deferred income tax assets | 21,488 | 12,444 | |||
Total assets | $ 652,373 | $ 537,242 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ 55,623 | $ 41,044 | |||
Other accrued expenses | 53,073 | 44,704 | |||
Notes payable to banks | 13,661 | -- | |||
Total current liabilities | 122,357 | 85,748 | |||
Long-term liabilities | 66,158 | 61,883 | |||
Total liabilities | 188,515 | 147,631 | |||
Stockholders' equity | 463,858 | 389,611 | |||
Total liabilities and stockholders' equity | $ 652,373 | $ 537,242 | |||
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SEGMENT INFORMATION (UNAUDITED) | |||||
(in thousands) | |||||
Three Months Ended | Year Ended | ||||
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2013 | 2012 | 2013 | 2013 | 2012 | |
SALES: | |||||
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$ 87,647 | $ 53,322 | $ 75,409 | $ 296,535 | $ 235,335 |
Solar Energy | 64,933 | 59,649 | 67,490 | 250,469 | 216,596 |
Total Sales | $ 152,580 | $ 112,971 | $ 142,899 | 547,004 | 451,931 |
OPERATING INCOME (LOSS): | |||||
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$ 24,723 | $ 4,691 | $ 18,150 | $ 64,790 | $ 22,804 |
Solar Energy | (2,400) | 3,360 | 192 | (3,772) | 14,003 |
Total segment operating income | 22,323 | 8,051 | 18,342 | 61,018 | 36,807 |
Corporate expenses | -- | (513) | -- | -- | (1,960) |
Restructuring charges and asset impairments | (2,305) | (2,039) | (19,884) | (46,395) | (7,473) |
Other income (expense), net | 30 | 181 | 164 | (339) | 2,432 |
Income (loss) from continuing operations before income taxes | $ 20,048 | $ 5,680 | $ (1,378) | $ 14,284 | $ 29,806 |
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SELECTED OTHER DATA (UNAUDITED) | |||||
(in thousands) | |||||
Reconciliation of Non-GAAP measure - operating expenses and income from operations, excluding certain items | Three Months Ended | Year Ended | |||
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2013 | 2012 | 2013 | 2013 | 2012 | |
Gross Profit, as reported | $ 58,827 | $ 38,546 | $ 56,211 | $ 210,136 | $ 167,746 |
Operating expenses, as reported | 38,809 | 33,047 | 57,753 | 195,513 | 140,372 |
Adjustments: | |||||
Restructuring charges and asset impairments | (2,305) | (2,039) | (19,884) | (46,395) | (7,473) |
Acquisition-related costs | -- | -- | -- | (1,093) | -- |
Stock-based compensation | (4,432) | (2,648) | (4,106) | (13,742) | (12,720) |
Amortization of intangible assets | (1,328) | (1,557) | (626) | (6,142) | (5,696) |
Non-GAAP operating expenses | 30,744 | 26,803 | 33,137 | 128,141 | 114,483 |
Non-GAAP income from operations | $ 28,083 | $ 11,743 | $ 23,074 | $ 81,995 | $ 53,263 |
Reconciliation of Non-GAAP measure - income from continuing operations excluding certain items | Three Months Ended | Year Ended | |||
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2013 | 2012 | 2013 | 2013 | 2012 | |
Income from continuing operations, net of tax, as reported | $ 34,355 | $ 4,874 | $ 687 | $ 32,086 | $ 20,176 |
Adjustments, net of tax | |||||
Restructuring charges and asset impairments | (11,785) | 1,367 | 22,441 | 30,235 | 4,775 |
One-time gain on sale of flow assets | -- | -- | -- | -- | (1,452) |
Acquisition-related costs | -- | -- | -- | 993 | -- |
Stock-based compensation | 4,038 | 1,687 | 3,601 | 12,010 | 8,103 |
Amortization of intangible assets | 1,210 | 992 | 549 | 5,342 | 3,629 |
Nonrecurring tax release items | -- | -- | (5,608) | (5,608) | -- |
Non-GAAP income from continuing operations, net of tax | $ 27,818 | $ 8,920 | $ 21,670 | $ 75,058 | $ 35,231 |
Reconciliation of Non-GAAP measure - per share earnings from continuing operations excluding certain items | Three Months Ended | Year Ended | |||
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2013 | 2012 | 2013 | 2013 | 2012 | |
Diluted earnings per share from continuing operations, as reported | $ 0.83 | $ 0.13 | $ 0.02 | $ 0.79 | $ 0.51 |
Add back: | |||||
per share impact of Non-GAAP adjustments, net of tax | (0.16) | 0.10 | 0.51 | 1.06 | 0.39 |
Non-GAAP per share earnings from continuing operations | $ 0.67 | $ 0.23 | $ 0.53 | $ 1.85 | $ 0.90 |
Reconciliation of Non-GAAP measure - operating income excluding restructuring | Three Months Ended | Year Ended | |||
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2013 | 2012 | 2013 | 2013 | 2012 | |
Operating income (loss), as reported | $ 20,018 | $ 5,499 | $ (1,542) | $ 14,623 | $ 27,374 |
Adjustment: | |||||
Restructuring charges and asset impairments | 2,305 | 2,039 | 19,884 | 46,395 | 7,473 |
Non-GAAP operating income excluding restructuring charges | $ 22,323 | $ 7,538 | $ 18,342 | $ 61,018 | $ 34,847 |
Reconciliation of Non-GAAP measure - income from operations and per share earnings excluding restructuring | Three Months Ended | Year Ended | |||
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2013 | 2012 | 2013 | 2013 | 2012 | |
Net income from continuing operations, as reported | $ 34,355 | $ 4,874 | $ 687 | $ 32,086 | $ 20,176 |
Adjustments, net of tax: | |||||
Restructuring charges and asset impairments | (11,785) | 1,367 | 22,441 | 30,235 | 4,775 |
Non-GAAP income from continuing operations, net of tax excluding restructuring charges | $ 22,570 | $ 6,241 | $ 23,128 | $ 62,321 | $ 24,951 |
Diluted weighted-average common shares outstanding | 41,332 | 38,484 | 40,577 | 40,667 | 39,447 |
Non-GAAP per share earnings from continuing operations excluding restructuring charges | $ 0.55 | $ 0.16 | $ 0.57 | $ 1.53 | $ 0.63 |
CONTACT:Source:Danny Herron Advanced Energy Industries, Inc. 970.407.6570 danny.herron@aei.comAnnie Leschin Advanced Energy Industries, Inc. 970.407.6555 ir@aei.com