Advanced Energy Announces Second Quarter Results
Advanced Energy Announces Second Quarter Results
Aug 04, 2014 4:10 PM Eastern Standard Time
-
Revenue of
$146 million -
GAAP earnings of
$0.26 per diluted share -
Non-GAAP earnings of
$0.38 per diluted share -
Ended quarter with
$130 million in cash -
Completed
$25 million share repurchase
"Even with a downturn in semiconductors, our diversification into a variety of precision power applications drove revenues higher sequentially and generated cash in the quarter," said
Precision Power Products
Inverters
Inverter sales were
Net Income
Net income for the second quarter was
Third Quarter 2014 Guidance
Pending the resolution of the tariff, we expect inverters to continue to be pressured. Based on this, guidance is within the following ranges:
-
Sales of
$130 million to$140 million -
Earnings per share of
$0.22 to$0.30 , excluding restructuring charges -
Non-GAAP earnings per share of
$0.30 to$0.38
Second Quarter 2014 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 other non-recurring 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 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
Forward-Looking Statements
The company's expectations with respect to guidance to financial results for the third quarter ending
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||
(in thousands, except per share data) | |||||
Three Months Ended | Six Months Ended | ||||
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2014 | 2013 | 2014 | 2014 | 2013 | |
SALES | $ 146,285 | $ 139,711 | $ 140,948 | $ 287,233 | $ 251,525 |
COST OF SALES | 93,739 | 86,452 | 88,287 | 182,026 | 156,427 |
GROSS PROFIT | 52,546 | 53,259 | 52,661 | 105,207 | 95,098 |
35.9% | 38.1% | 37.4% | 36.6% | 37.8% | |
OPERATING EXPENSES: | |||||
Research and development | 15,736 | 15,740 | 14,142 | 29,878 | 29,993 |
Selling, general and administrative | 22,828 | 22,910 | 19,731 | 42,559 | 40,564 |
Restructuring charges | 244 | 24,206 | -- | 244 | 24,206 |
Amortization of intangible assets | 2,226 | 1,975 | 1,875 | 4,101 | 4,188 |
Total operating expenses | 41,034 | 64,831 | 35,748 | 76,782 | 98,951 |
OPERATING INCOME (LOSS) | 11,512 | (11,572) | 16,913 | 28,425 | (3,853) |
OTHER INCOME (EXPENSE), NET | 25 | (330) | (96) | (71) | (533) |
Income (loss) before income taxes | 11,537 | (11,902) | 16,817 | 28,354 | (4,386) |
Provision (benefit) for income taxes | 891 | (2,120) | 2,102 | 2,993 | (1,430) |
NET INCOME (LOSS) | $ 10,646 | $ (9,782) | $ 14,715 | $ 25,361 | $ (2,956) |
Basic weighted-average common shares outstanding | 40,540 | 39,453 | 40,814 | 40,677 | 39,114 |
Diluted weighted-average common shares outstanding | 41,147 | 40,150 | 41,870 | 41,419 | 39,899 |
EARNINGS PER SHARE: | |||||
NET INCOME (LOSS): | |||||
BASIC EARNINGS (LOSS) PER SHARE | $ 0.26 | $ (0.25) | $ 0.36 | $ 0.62 | $ (0.08) |
DILUTED EARNINGS (LOSS) PER SHARE | $ 0.26 | $ (0.24) | $ 0.35 | $ 0.61 | $ (0.07) |
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CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(in thousands) | ||
June 30, | December 31, | |
2014 | 2013 * | |
ASSETS | UNAUDITED | |
Current assets: | ||
Cash and cash equivalents | $ 117,549 | $ 138,125 |
Marketable securities | 12,633 | 11,568 |
Accounts receivable, net | 121,262 | 125,782 |
Inventories, net | 118,187 | 109,771 |
Deferred income taxes | 10,755 | 10,746 |
Income taxes receivable | 4,760 | 10,027 |
Other current assets | 13,084 | 10,950 |
Total current assets | 398,230 | 416,969 |
Property and equipment, net | 32,821 | 34,888 |
Deposits and other | 2,478 | 2,421 |
Goodwill and intangibles, net | 251,618 | 177,211 |
Deferred income tax assets, net | 19,000 | 21,488 |
Total assets | $ 704,147 | $ 652,977 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | $ 72,210 | $ 55,623 |
Other accrued expenses | 67,485 | 66,734 |
Total current liabilities | 139,695 | 122,357 |
Long-term liabilities | 99,490 | 66,158 |
Total liabilities | 239,185 | 188,515 |
Stockholders' equity | 464,962 | 464,462 |
Total liabilities and stockholders' equity | $ 704,147 | $ 652,977 |
* |
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SEGMENT INFORMATION (UNAUDITED) | |||||
(in thousands) | |||||
Three Months Ended | Six Months Ended | ||||
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2014 | 2013 | 2014 | 2014 | 2013 | |
SALES: | |||||
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$ 81,832 | $ 71,702 | $ 82,872 | $ 164,704 | $ 133,479 |
Solar Energy | 64,453 | 68,009 | 58,076 | 122,529 | 118,046 |
Total Sales | $ 146,285 | $ 139,711 | $ 140,948 | $ 287,233 | $ 251,525 |
OPERATING INCOME (LOSS): | |||||
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$ 18,362 | $ 14,406 | $ 23,211 | $ 41,573 | $ 21,917 |
Solar Energy | (6,606) | (1,772) | (6,298) | (12,904) | (1,564) |
Total segment operating income | 11,756 | 12,634 | 16,913 | 28,669 | 20,353 |
Corporate expenses | -- | -- | -- | -- | |
Restructuring charges | (244) | (24,206) | -- | (244) | (24,206) |
Other income (expense), net | 25 | (330) | (96) | (71) | (533) |
Income (loss) before income taxes | $ 11,537 | $ (11,902) | $ 16,817 | $ 28,354 | $ (4,386) |
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SELECTED OTHER DATA (UNAUDITED) | |||||
(in thousands) | |||||
Reconciliation of Non-GAAP measure - operating expenses and income, excluding certain items | Three Months Ended | Six Months Ended | |||
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2014 | 2013 | 2014 | 2014 | 2013 | |
Gross profit, as reported | $ 52,546 | $ 53,259 | $ 52,661 | $ 105,207 | $ 95,098 |
Operating expenses, as reported | 41,034 | 64,831 | 35,748 | 76,782 | 98,951 |
Adjustments: | |||||
Restructuring charges | (244) | (24,206) | -- | (244) | (24,206) |
Acquisition-related costs | (470) | -- | (260) | (730) | (1,093) |
Stock-based compensation | (1,495) | (3,170) | (1,764) | (3,259) | (5,204) |
Amortization of intangible assets | (2,226) | (1,975) | (1,875) | (4,101) | (4,188) |
Nonrecurring executive severance | (867) | -- | -- | (867) | -- |
Non-GAAP operating expenses | 35,732 | 35,480 | 31,849 | 67,581 | 64,260 |
Non-GAAP income from operations | $ 16,814 | $ 17,779 | $ 20,812 | $ 37,626 | $ 30,838 |
Reconciliation of Non-GAAP measure - income excluding certain items | Three Months Ended | Six Months Ended | |||
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2014 | 2013 | 2014 | 2014 | 2013 | |
Income (loss), net of tax, as reported | $ 10,646 | $ (9,782) | $ 14,715 | $ 25,361 | $ (2,956) |
Adjustments, net of tax | |||||
Restructuring charges | 225 | 19,579 | -- | 225 | 19,579 |
Acquisition-related costs | 434 | -- | 228 | 662 | 993 |
Stock-based compensation | 1,380 | 2,524 | 1,544 | 2,924 | 4,371 |
Amortization of intangible assets | 2,052 | 1,573 | 1,642 | 3,694 | 3,583 |
Nonrecurring executive severance | 800 | -- | -- | 800 | -- |
Non-GAAP income, net of tax | $ 15,537 | $ 13,894 | $ 18,129 | $ 33,666 | $ 25,570 |
Reconciliation of Non-GAAP measure - per share earnings excluding certain items | Three Months Ended | Six Months Ended | |||
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2014 | 2013 | 2014 | 2014 | 2013 | |
Diluted earnings (loss) per share, as reported | $ 0.26 | $ (0.24) | $ 0.35 | $ 0.61 | $ (0.07) |
Add back: | |||||
per share impact of Non-GAAP adjustments, net of tax benefit | 0.12 | 0.59 | 0.08 | 0.20 | 0.71 |
Non-GAAP per share earnings | $ 0.38 | $ 0.35 | $ 0.43 | $ 0.81 | $ 0.64 |
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