Advanced Energy Announces Third Quarter Results
Advanced Energy Announces Third Quarter Results
Nov 04, 2013 4:00 PM Eastern Standard Time
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Revenue of
$143 million
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GAAP earnings of
$0.02 per diluted share
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Non-GAAP earnings of
$0.53 per diluted share
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Ended quarter with
$105 million in cash
"As we approach the end of 2013, we had yet another sound quarter reflecting the significant progress we are making towards our strategic objectives," said
Solar Energy
Solar Energy sales were
Income from Continuing Operations
Income from continuing operations for the third quarter was
Restructuring Activities
After the acquisition of the three-phase string product line in
Fourth Quarter 2013 Guidance
The company anticipates fourth quarter 2013 results from continuing operations to be within the following ranges assuming a fourth quarter actual tax rate of 0%:
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Sales of
$145 million to$155 million
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Earnings per share of
$0.47 to$0.52 , excluding restructuring charges of approximately$500,000
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Non-GAAP earnings per share of
$0.59 to$0.63
Third 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 fourth quarter ending
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||
(in thousands, except per share data) | |||||
Three Months Ended | Nine Months Ended | ||||
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2013 | 2012 | 2013 | 2013 | 2012 | |
SALES | $ 142,899 | $ 117,515 | $ 139,711 | $ 394,424 | $ 338,960 |
COST OF SALES | 86,688 | 71,788 | 86,452 | 243,115 | 209,760 |
GROSS PROFIT | 56,211 | 45,727 | 53,259 | 151,309 | 129,200 |
39.3% | 38.9% | 38.1% | 38.4% | 38.1% | |
OPERATING EXPENSES: | |||||
Research and development | 15,105 | 14,564 | 15,740 | 45,098 | 44,181 |
Selling, general and administrative | 22,138 | 16,806 | 22,910 | 62,702 | 53,571 |
Restructuring charges and asset impairment | 19,884 | 3,003 | 24,206 | 44,090 | 5,434 |
Amortization of intangible assets | 626 | 1,416 | 1,975 | 4,814 | 4,139 |
Total operating expenses | 57,753 | 35,789 | 64,831 | 156,704 | 107,325 |
Operating income (loss) | (1,542) | 9,938 | (11,572) | (5,395) | 21,875 |
Other income (expense), net | 164 | 65 | (330) | (369) | 2,251 |
Income (loss) from continuing operations before income taxes | (1,378) | 10,003 | (11,902) | (5,764) | 24,126 |
Provision (benefit) for income taxes | (2,065) | 4,268 | (2,120) | (3,495) | 8,824 |
INCOME (LOSS) FROM CONTINUING OPERATIONS, NET OF INCOME TAXES | 687 | 5,735 | (9,782) | (2,269) | 15,302 |
Income from discontinued operations, net of income taxes | -- | -- | -- | -- | 430 |
NET INCOME (LOSS) | $ 687 | $ 5,735 | $ (9,782) | $ (2,269) | $ 15,732 |
Basic weighted-average common shares outstanding | 39,878 | 37,807 | 39,453 | 39,369 | 39,148 |
Diluted weighted-average common shares outstanding | 40,577 | 38,330 | 40,150 | 40,150 | 39,720 |
EARNINGS PER SHARE: | |||||
CONTINUING OPERATIONS: | |||||
BASIC EARNINGS (LOSS) PER SHARE | $ 0.02 | $ 0.15 | $ (0.25) | $ (0.06) | $ 0.39 |
DILUTED EARNINGS (LOSS) PER SHARE | $ 0.02 | $ 0.15 | $ (0.24) | $ (0.06) | $ 0.39 |
DISCONTINUED OPERATIONS | |||||
BASIC EARNINGS PER SHARE | $ -- | $ -- | $ -- | $ -- | $ 0.01 |
DILUTED EARNINGS PER SHARE | $ -- | $ -- | $ -- | $ -- | $ 0.01 |
NET INCOME (LOSS): | |||||
BASIC EARNINGS (LOSS) PER SHARE | $ 0.02 | $ 0.15 | $ (0.25) | $ (0.06) | $ 0.40 |
DILUTED EARNINGS (LOSS) PER SHARE | $ 0.02 | $ 0.15 | $ (0.24) | $ (0.06) | $ 0.40 |
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CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(in thousands) | |||||
September 30, | December 31, | ||||
2013 | 2012 * | ||||
ASSETS | UNAUDITED | ||||
Current assets: | |||||
Cash and cash equivalents | $ 92,449 | $ 146,564 | |||
Marketable securities | 12,277 | 25,683 | |||
Accounts receivable, net | 130,311 | 83,914 | |||
Inventories, net | 123,152 | 81,482 | |||
Deferred income tax assets | 19,465 | 19,477 | |||
Income taxes receivable | 9,249 | 4,315 | |||
Other current assets | 13,908 | 9,075 | |||
Total current assets | 400,811 | 370,510 | |||
Property and equipment, net | 36,348 | 39,523 | |||
Deposits and other | 7,641 | 7,529 | |||
Goodwill and intangibles, net | 168,926 | 106,600 | |||
Deferred income tax assets | 13,953 | 13,998 | |||
Total assets | $ 627,679 | $ 538,160 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ 67,563 | $ 41,044 | |||
Other accrued expenses | 51,235 | 47,602 | |||
Notes payable to banks | 11,436 | -- | |||
Total current liabilities | 130,234 | 88,646 | |||
Long-term liabilities | 82,604 | 61,883 | |||
Total liabilities | 212,838 | 150,529 | |||
Stockholders' equity | 414,841 | 387,631 | |||
Total liabilities and stockholders' equity | $ 627,679 | $ 538,160 | |||
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SEGMENT INFORMATION (UNAUDITED) | |||||
(in thousands) | |||||
Three Months Ended | Nine Months Ended | ||||
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2013 | 2012 | 2013 | 2013 | 2012 | |
SALES: | |||||
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$ 75,409 | $ 56,780 | $ 71,702 | $ 208,888 | $ 182,013 |
Solar Energy | 67,490 | 60,735 | 68,009 | 185,536 | 156,947 |
Total Sales | $ 142,899 | $ 117,515 | $ 139,711 | 394,424 | 338,960 |
OPERATING INCOME: | |||||
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$ 18,150 | $ 6,065 | $ 14,406 | $ 40,067 | $ 18,113 |
Solar Energy | 192 | 7,410 | (1,772) | (1,372) | 10,643 |
Total segment operating income | 18,342 | 13,475 | 12,634 | 38,695 | 28,756 |
Corporate expenses | -- | (534) | -- | (1,447) | |
Restructuring charges | (19,884) | (3,003) | (24,206) | (44,090) | (5,434) |
Other income (expense), net | 164 | 65 | (330) | (369) | 2,251 |
Income (loss) from continuing operations before income taxes | $ (1,378) | $ 10,003 | $ (11,902) | $ (5,764) | $ 24,126 |
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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 |
Nine Months Ended |
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2013 | 2012 | 2013 | 2013 | 2012 | |
Gross Profit, as reported | $ 56,211 | $ 45,727 | $ 53,259 | $ 151,309 | $ 129,200 |
Operating expenses, as reported | 57,753 | 35,789 | 64,831 | 156,704 | 107,325 |
Adjustments: | |||||
Restructuring charges | (19,884) | (3,003) | (24,206) | (44,090) | (5,434) |
Acquisition-related costs | -- | -- | -- | (1,093) | -- |
Stock-based compensation | (4,106) | (2,835) | (3,170) | (9,310) | (10,072) |
Amortization of intangible assets | (626) | (1,416) | (1,975) | (4,814) | (4,139) |
Non-GAAP operating expenses | 33,137 | 28,535 | 35,480 | 97,397 | 87,680 |
Non-GAAP income from operations | $ 23,074 | $ 17,192 | $ 17,779 | $ 53,912 | $ 41,520 |
Reconciliation of Non-GAAP measure - income from continuing operations excluding certain items | Three Months Ended | Nine Months Ended | |||
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2013 | 2012 | 2013 | 2013 | 2012 | |
Income (loss) from continuing operations, net of tax, as reported | $ 687 | $ 5,735 | $ (9,782) | $ (2,269) | $ 15,302 |
Adjustments, net of tax | |||||
Restructuring charges | 22,441 | 1,849 | 19,579 | 42,020 | 3,408 |
One-time gain on sale of flow assets | -- | -- | -- | -- | (1,452) |
Acquisition-related costs | -- | -- | -- | 993 | -- |
Stock-based compensation | 3,601 | 1,806 | 2,524 | 7,972 | 6,416 |
Amortization of intangible assets | 549 | 902 | 1,573 | 4,132 | 2,637 |
Nonrecurring tax release items | (5,608) | -- | -- | (5,608) | -- |
Non-GAAP income from continuing operations, net of tax | $ 21,670 | $ 10,292 | $ 13,894 | $ 47,240 | $ 26,311 |
Reconciliation of Non-GAAP measure - per share earnings from continuing operations excluding certain items |
Three Months Ended |
Nine Months Ended |
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2013 | 2012 | 2013 | 2013 | 2012 | |
Diluted earnings (loss) per share from continuing operations, as reported | $ 0.02 | $ 0.15 | $ (0.24) | $ (0.06) | $ 0.39 |
Add back: | |||||
per share impact of Non-GAAP adjustments, net of tax benefit | 0.51 | 0.12 | 0.59 | 1.24 | 0.27 |
Non-GAAP per share earnings from continuing operations | $ 0.53 | $ 0.27 | $ 0.35 | $ 1.18 | $ 0.66 |
Reconciliation of Non-GAAP measure - operating income excluding restructuring | Three Months Ended | Nine Months Ended | |||
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2013 | 2012 | 2013 | 2013 | 2012 | |
Operating income (loss), as reported | $ (1,542) | $ 9,938 | $ (11,572) | $ (5,395) | $ 21,875 |
Adjustment: | |||||
Restructuring charges | 19,884 | 3,003 | 24,206 | 44,090 | 5,434 |
Non-GAAP operating income excluding restructuring charges | $ 18,342 | $ 12,941 | $ 12,634 | $ 38,695 | $ 27,309 |
Reconciliation of Non-GAAP measure - income from operations and per share earnings excluding restructuring |
Three Months Ended |
Nine Months Ended |
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2013 | 2012 | 2013 | 2013 | 2012 | |
Net income (loss) from continuing operations, as reported | $ 687 | $ 5,735 | $ (9,782) | $ (2,269) | $ 15,302 |
Adjustments, net of tax: | |||||
Restructuring charges | 22,441 | 1,849 | 19,579 | 42,020 | 3,408 |
Non-GAAP income from continuing operations, net of tax excluding restructuring charges | $ 23,128 | $ 7,584 | $ 9,797 | $ 39,751 | $ 18,710 |
Diluted weighted-average common shares outstanding | 40,577 | 38,330 | 40,150 | 40,150 | 39,720 |
Non-GAAP per share earnings from continuing operations excluding restructuring charges | $ 0.57 | $ 0.20 | $ 0.24 | $ 0.99 | $ 0.47 |
CONTACT:Source:Danny Herron Advanced Energy Industries, Inc. 970.407.6570 danny.herron@aei.comAnnie Leschin /Vanessa Lehr Advanced Energy Industries, Inc. 970.407.6555 ir@aei.com