Advanced Energy Reports Fourth Quarter and Full Year 2021 Results

Feb 09, 2022 4:05 PM

  • Q4 revenue was a record $397 million, above high end of guidance range
  • Q4 GAAP EPS from continuing operations was $1.05
  • Q4 Non-GAAP EPS was $1.36, above the high end of guidance range
  • 2021 revenue was a record $1.46 billion
  • 2021 GAAP EPS from continuing operations was $3.51; non-GAAP EPS was $4.78
  • 2021 cash flow from continuing operations was $141 million

 

DENVER--(BUSINESS WIRE)-- Advanced Energy Industries, Inc. (Nasdaq: AEIS), a global leader in highly engineered, precision power conversion, measurement, and control solutions, today announced financial results for the fourth quarter and fiscal year ended December 31, 2021.

“We delivered strong revenue and earnings in the fourth quarter, largely due to improved availability of critical ICs,” said Steve Kelley, president and CEO of Advanced Energy. “We enter 2022 with robust demand for our industry-leading power solutions. Although our business continues to be impacted by supply constraints, our fourth quarter results demonstrate that we can respond quickly as conditions improve. With a solid pipeline of new technologies and products, Advanced Energy is well positioned for long-term profitable growth.”

Fourth Quarter Results

Sales were $396.9 million in the fourth quarter of 2021, compared with $346.1 million in the third quarter of 2021 and $371.0 million in the fourth quarter of 2020. Fourth quarter 2021 GAAP and non-GAAP gross margins were 35.2% and 35.5%, respectively. Revenue and gross margin in the fourth quarter of 2021 were impacted by partial recovery of material cost premiums.

GAAP net income from continuing operations was $39.7 million or $1.05 per diluted share in the quarter, compared with $21.0 million or $0.55 per diluted share in the prior quarter, and $41.9 million or $1.09 per diluted share a year ago.

Non-GAAP net income was $51.5 million or $1.36 per diluted share in the fourth quarter of 2021. This compares with $34.0 million or $0.89 per diluted share in the third quarter of 2021, and $57.3 million or $1.49 per diluted share in the fourth quarter of 2020.

The company generated $34.5 million of cash flow from continuing operations during the quarter, repurchased $21.5 million of common stock, and paid $3.8 million in a quarterly dividend.

Full Year 2021 Results

2021 revenue was $1.46 billion, a 3% increase from $1.42 billion in 2020. 2021 GAAP and non-GAAP gross margins were 36.6% and 37.3%, respectively

GAAP net income from continuing operations was $134.7 million or $3.51 per diluted share in 2021, compared with $135.2 million or $3.51 per diluted share in 2020.

Non-GAAP net income was $183.2 million or $4.78 per diluted share in 2021, compared to $201.5 million or $5.23 per diluted share in 2020.

The company generated $140.9 million of operating cash from continuing operations in 2021, repurchased $78.1 million of common stock and paid $15.4 million in dividends. Cash and marketable securities at ended the year were $546.7 million.

A reconciliation of non-GAAP measures is provided in the tables below.

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 is available in the company’s 2021 Annual Report on Form 10‑K.

First Quarter 2022 Guidance

Based on the company’s current view, beliefs and assumptions, guidance for the first quarter of 2022 is within the following ranges.

Q1 2022

Revenues

$360M +/- $20M

GAAP EPS from continuing operations

$0.61 +/- $0.25

Non-GAAP EPS

$0.94 +/- $0.25

Conference Call

Management will host a conference call today, February 9, 2022 at 4:30 p.m. Eastern Time to discuss Advanced Energy’s financial results. To participate in the live conference call, please dial (877) 407-0890 approximately five minutes prior to the start of the meeting and an operator will connect you. International participants can dial +1 (201) 389-0918. A webcast will also be available on the company’s investors web page at ir.advancedenergy.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 applications for a wide range of industries including semiconductor equipment, industrial, manufacturing, telecommunications, data center computing and healthcare. 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 four decades to perfecting power for its global customers and is headquartered in Denver, Colorado, USA. For more information, visit www.advancedenergy.com.

Advanced Energy | Precision. Power. Performance.

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. Beginning in the second quarter of 2020, Advanced Energy’s non-GAAP measures exclude non-cash unrealized foreign currency gains or losses that result from remeasurement to functional currency long-term obligations related to pension and operating lease liabilities as the remeasurement does not represent current economic exposure and is unrelated to our overall operating performance. These long-term obligations were acquired in connection with the Artesyn acquisition and the company previously used derivatives to hedge the exposure; however, the company has determined it will no longer hedge these non-economic exposures. The tax effect of our non-GAAP adjustments represents the anticipated annual tax rate applied to each non-GAAP adjustment after consideration of their respective book and tax treatments.

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, non-economic foreign currency remeasurements, and other cash 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, potential future growth and profitability, future business mix, expectations regarding future market trends, future performance within specific markets 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) supply chain disruptions and component shortages that may impact the company’s ability to obtain in a timely manner the materials necessary to manufacture its products; (b) the effects of global macroeconomic conditions upon demand for our products and services; (c) the volatility and cyclicality of the industries the company serves, particularly the semiconductor industry; (d) delays in capital spending by end-users in our served markets; (e) the risks and uncertainties related to the integration of Artesyn Embedded Power including the optimization and reduction of our global manufacturing sites; (f) the continuing spread of COVID-19 and its potential adverse impact on our product manufacturing, research and development, supply chain, services and administrative operations; (g) the accuracy of the company’s estimates related to fulfilling solar inverter product warranty and post-warranty obligations; (h) the company’s ability to realize its plan to avoid additional costs after the solar inverter wind-down; (i) the accuracy of the company’s assumptions on which its financial statement projections are based; (j) the impact of product price changes, which may result from a variety of factors; (k) the timing of orders received from customers; (l) the company’s ability to realize benefits from cost improvement efforts including avoided costs, restructuring plans and inorganic growth; (m) unanticipated changes to management’s estimates, reserves or allowances; (n) changes and adjustments to the tax expense and benefits related to the U.S. tax reform that was enacted in late 2017; and (o) the impact of political, economic and policy tensions and conflicts between China and the United States including, but not limited to, trade wars and export restrictions between the two countries, China’s national security law for Hong Kong, and China’s expansion of control over the South China Sea, any of which could negatively impact our customers’ and our presence, operations, and financial results. 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.advancedenergy.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,

 

 

 

2021

 

2020

 

2021

 

2021

 

2020

 

Sales, net

 

$

396,930

 

 

$

370,969

 

 

$

346,093

 

 

$

1,455,954

 

 

$

1,415,826

 

 

Cost of sales

 

 

257,183

 

 

 

225,420

 

 

 

226,054

 

 

 

923,632

 

 

 

873,957

 

 

Gross profit

 

 

139,747

 

 

 

145,549

 

 

 

120,039

 

 

 

532,322

 

 

 

541,869

 

 

Gross margin %

 

 

35.2

%

 

39.2

%

 

34.7

%

 

36.6

%

 

38.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

40,966

 

 

 

36,529

 

 

 

40,578

 

 

 

161,831

 

 

 

143,961

 

 

Selling, general, and administrative

 

 

48,784

 

 

 

42,944

 

 

 

48,373

 

 

 

191,998

 

 

 

188,590

 

 

Amortization of intangible assets

 

 

5,556

 

 

 

5,065

 

 

 

5,607

 

 

 

22,060

 

 

 

20,129

 

 

Restructuring expense

 

 

2,231

 

 

 

5,226

 

 

 

1,272

 

 

 

4,752

 

 

 

13,166

 

 

Total operating expenses

 

 

97,537

 

 

 

89,764

 

 

 

95,830

 

 

 

380,641

 

 

 

365,846

 

 

Operating income

 

 

42,210

 

 

 

55,785

 

 

 

24,209

 

 

 

151,681

 

 

 

176,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

704

 

 

 

(6,221

)

 

 

495

 

 

 

(2,970

)

 

 

(17,876

)

 

Income from continuing operations, before income taxes

 

 

42,914

 

 

 

49,564

 

 

 

24,704

 

 

 

148,711

 

 

 

158,147

 

 

Provision for income taxes

 

 

3,187

 

 

 

7,703

 

 

 

3,657

 

 

 

14,004

 

 

 

22,996

 

 

Income from continuing operations

 

 

39,727

 

 

 

41,861

 

 

 

21,047

 

 

 

134,707

 

 

 

135,151

 

 

Income (loss) from discontinued operations, net of income taxes

 

 

(98

)

 

 

 

 

 

(37

)

 

 

73

 

 

 

(421

)

 

Net income

 

 

39,629

 

 

 

41,861

 

 

 

21,010

 

 

 

134,780

 

 

 

134,730

 

 

Income (loss) from continuing operations attributable to noncontrolling interest

 

 

(26

)

 

 

20

 

 

 

6

 

 

 

44

 

 

 

55

 

 

Net income attributable to Advanced Energy Industries, Inc.

 

$

39,655

 

 

$

41,841

 

 

$

21,004

 

 

$

134,736

 

 

$

134,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average common shares outstanding

 

 

37,672

 

 

 

38,280

 

 

 

38,183

 

 

 

38,143

 

 

 

38,314

 

 

Diluted weighted-average common shares outstanding

 

 

37,866

 

 

 

38,533

 

 

 

38,363

 

 

 

38,355

 

 

 

38,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Advanced Energy Industries, Inc:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.06

 

 

$

1.09

 

 

$

0.55

 

 

$

3.53

 

 

$

3.53

 

 

Diluted earnings per share

 

$

1.05

 

 

$

1.09

 

 

$

0.55

 

 

$

3.51

 

 

$

3.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

 

 

$

 

 

$

 

 

$

 

 

$

(0.01

)

 

Diluted earnings (loss) per share

 

$

 

 

$

 

 

$

 

 

$

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.05

 

 

$

1.09

 

 

$

0.55

 

 

$

3.53

 

 

$

3.52

 

 

Diluted earnings per share

 

$

1.05

 

 

$

1.09

 

 

$

0.55

 

 

$

3.51

 

 

$

3.50

 

 

ADVANCED ENERGY INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2021

 

2020

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

544,372

 

$

480,368

Marketable securities

 

 

2,296

 

 

2,654

Accounts and other receivable, net

 

 

237,227

 

 

235,178

Inventories

 

 

338,410

 

 

221,346

Income taxes receivable

 

 

10,768

 

 

4,804

Other current assets

 

 

29,161

 

 

35,899

Total current assets

 

 

1,162,234

 

 

980,249

 

 

 

 

 

 

 

Property and equipment, net

 

 

114,830

 

 

114,731

Operating lease right-of-use assets

 

 

101,769

 

 

103,858

Deposits and other assets

 

 

19,669

 

 

19,101

Goodwill and intangible assets, net

 

 

371,596

 

 

378,922

Deferred income tax assets

 

 

47,242

 

 

50,801

Total assets

 

$

1,817,340

 

$

1,647,662

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

193,708

 

$

125,224

Other accrued expenses

 

 

140,666

 

 

137,081

Current portion of long-term debt

 

 

20,000

 

 

17,500

Current portion of operating lease liabilities

 

 

15,843

 

 

16,592

Total current liabilities

 

 

370,217

 

 

296,397

 

 

 

 

 

 

 

Long-term debt

 

 

372,733

 

 

304,546

Non-current liabilities

 

 

202,894

 

 

231,379

Long-term liabilities

 

 

575,627

 

 

535,925

 

 

 

 

 

 

 

Total liabilities

 

 

945,844

 

 

832,322

 

 

 

 

 

 

 

Advanced Energy stockholders' equity

 

 

870,851

 

 

814,739

Noncontrolling interest

 

 

645

 

 

601

Total stockholders’ equity

 

 

871,496

 

 

815,340

Total liabilities and stockholders’ equity

 

$

1,817,340

 

$

1,647,662

ADVANCED ENERGY INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2021

 

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

134,780

 

 

$

134,730

 

Less: income (loss) from discontinued operations, net of income taxes

 

 

73

 

 

 

(421

)

Income from continuing operations, net of income taxes

 

 

134,707

 

 

 

135,151

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

52,893

 

 

 

47,770

 

Stock-based compensation expense

 

 

15,739

 

 

 

12,272

 

Provision for deferred income taxes

 

 

1,326

 

 

 

(622

)

Discount on notes receivable

 

 

(638

)

 

 

721

 

Loss on disposal of assets

 

 

1,496

 

 

 

1,296

 

Changes in operating assets and liabilities, net of assets acquired

 

 

(64,609

)

 

 

5,571

 

Net cash from operating activities from continuing operations

 

 

140,914

 

 

 

202,159

 

Net cash from operating activities from discontinued operations

 

 

(669

)

 

 

(923

)

Net cash from operating activities

 

 

140,245

 

 

 

201,236

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Net proceeds from sale of marketable securities

 

 

 

 

 

3

 

Receipt (issuance) of notes receivable

 

 

3,050

 

 

 

(1,000

)

Proceeds from sale of assets

 

 

3,060

 

 

 

116

 

Purchases of property and equipment

 

 

(31,877

)

 

 

(36,483

)

Acquisitions, net of cash acquired

 

 

(21,535

)

 

 

(5,476

)

Net cash from investing activities from continuing operations

 

 

(47,302

)

 

 

(42,840

)

Net cash from investing activities from discontinued operations

 

 

 

 

 

 

Net cash from investing activities

 

 

(47,302

)

 

 

(42,840

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from long-term borrowings

 

 

85,000

 

 

 

-

 

Payment of debt-issuance costs

 

 

(1,350

)

 

 

-

 

Payments on long-term borrowings

 

 

(13,750

)

 

 

(17,500

)

Dividend payments

 

 

(15,385

)

 

 

 

Purchase and retirement of common stock

 

 

(78,125

)

 

 

(11,630

)

Net payments related to stock-based awards

 

 

(1,762

)

 

 

(482

)

Net cash from financing activities from continuing operations

 

 

(25,372

)

 

 

(29,612

)

Net cash from financing activities from discontinued operations

 

 

 

 

 

 

Net cash from in financing activities

 

 

(25,372

)

 

 

(29,612

)

 

 

 

 

 

 

 

EFFECT OF CURRENCY TRANSLATION ON CASH

 

 

(3,567

)

 

 

5,143

 

 

 

 

 

 

 

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

64,004

 

 

 

133,927

 

CASH AND CASH EQUIVALENTS, beginning of period

 

 

480,368

 

 

 

346,441

 

CASH AND CASH EQUIVALENTS, end of period

 

 

544,372

 

 

 

480,368

 

Less cash and cash equivalents from discontinued operations

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period

 

$

544,372

 

 

$

480,368

 

ADVANCED ENERGY INDUSTRIES, INC.

SUPPLEMENTAL INFORMATION (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales by Product Line

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2021

 

2020

 

2021

 

2021

 

2020

Semiconductor Equipment

 

$

179,346

 

$

165,757

 

$

173,441

 

$

710,174

 

$

611,864

Industrial and Medical

 

 

98,764

 

 

93,769

 

 

80,800

 

 

341,176

 

 

313,646

Data Center Computing

 

 

80,081

 

 

65,299

 

 

62,231

 

 

270,924

 

 

322,539

Telecom and Networking

 

 

38,739

 

 

46,144

 

 

29,621

 

 

133,680

 

 

167,777

Total

 

$

396,930

 

$

370,969

 

$

346,093

 

$

1,455,954

 

$

1,415,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales by Geographic Region

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2021

 

2020

 

2021

 

2021

 

2020

United States

 

$

151,100

 

$

141,957

 

$

139,089

 

$

561,312

 

$

530,965

North America (excluding U.S.)

 

 

27,100

 

 

41,144

 

 

24,708

 

 

104,167

 

 

156,856

Asia

 

 

163,598

 

 

144,505

 

 

135,838

 

 

597,830

 

 

606,893

Europe

 

 

49,305

 

 

41,919

 

 

44,838

 

 

179,056

 

 

117,989

Other

 

 

5,827

 

 

1,444

 

 

1,620

 

 

13,589

 

 

3,123

Total

 

$

396,930

 

$

370,969

 

$

346,093

 

$

1,455,954

 

$

1,415,826

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,

 

 

2021

 

2020

 

2021

 

2021

 

2020

Gross profit from continuing operations, as reported

 

$

139,747

 

 

$

145,549

 

 

$

120,039

 

 

$

532,322

 

 

$

541,869

 

Adjustments to gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

(19

)

 

 

122

 

 

 

218

 

 

 

764

 

 

 

567

 

Facility expansion, relocation costs and other

 

 

997

 

 

 

741

 

 

 

1,357

 

 

 

6,189

 

 

 

4,349

 

Acquisition-related costs

 

 

234

 

 

 

25

 

 

 

3,259

 

 

 

3,585

 

 

 

5,381

 

Non-GAAP gross profit

 

 

140,959

 

 

 

146,437

 

 

 

124,873

 

 

 

542,860

 

 

 

552,166

 

Non-GAAP gross margin

 

 

35.5

%

 

 

39.5

%

 

 

36.1

%

 

 

37.3

%

 

 

39.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses from continuing operations, as reported

 

 

97,537

 

 

 

89,764

 

 

 

95,830

 

 

 

380,641

 

 

 

365,846

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(5,556

)

 

 

(5,065

)

 

 

(5,607

)

 

 

(22,060

)

 

 

(20,129

)

Stock-based compensation

 

 

(2,939

)

 

 

(2,483

)

 

 

(3,456

)

 

 

(14,975

)

 

 

(11,705

)

Acquisition-related costs

 

 

(679

)

 

 

387

 

 

 

(1,768

)

 

 

(6,803

)

 

 

(10,209

)

Facility expansion, relocation costs and other

 

 

(17

)

 

 

(443

)

 

 

(98

)

 

 

(229

)

 

 

(2,213

)

Restructuring charges

 

 

(2,231

)

 

 

(5,226

)

 

 

(1,272

)

 

 

(4,752

)

 

 

(13,166

)

Non-GAAP operating expenses

 

 

86,115

 

 

 

76,934

 

 

 

83,629

 

 

 

331,822

 

 

 

308,424

 

Non-GAAP operating income

 

$

54,844

 

 

$

69,503

 

 

$

41,244

 

 

$

211,038

 

 

$

243,742

 

Non-GAAP operating margin

 

 

13.8

%

 

 

18.7

%

 

 

11.9

%

 

 

14.5

%

 

 

17.2

%

Reconciliation of Non-GAAP measure - income excluding certain items

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2021

 

2020

 

2021

 

2021

 

2020

Income from continuing operations, less non-controlling interest, net of income taxes

 

$

39,753

 

 

$

41,841

 

 

$

21,041

 

 

$

134,663

 

 

$

135,096

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

5,556

 

 

 

5,065

 

 

 

5,607

 

 

 

22,060

 

 

 

20,129

 

Acquisition-related costs

 

 

913

 

 

 

(362

)

 

 

5,027

 

 

 

10,388

 

 

 

15,590

 

Facility expansion, relocation costs, and other

 

 

1,014

 

 

 

1,184

 

 

 

1,455

 

 

 

6,418

 

 

 

6,562

 

Restructuring charges

 

 

2,231

 

 

 

5,226

 

 

 

1,272

 

 

 

4,752

 

 

 

13,166

 

Unrealized foreign currency (gain) loss

 

 

(134

)

 

 

3,786

 

 

 

(2,092

)

 

 

(3,543

)

 

 

8,384

 

Acquisition-related costs and other included in other income (expense), net

 

 

(3,093

)

 

 

90

 

 

 

(79

)

 

 

(2,186

)

 

 

716

 

Tax effect of non-GAAP adjustments

 

 

3,017

 

 

 

(1,532

)

 

 

(1,036

)

 

 

(1,346

)

 

 

(7,611

)

Non-GAAP income, net of income taxes, excluding stock-based compensation

 

 

49,257

 

 

 

55,298

 

 

 

31,195

 

 

 

171,206

 

 

 

192,032

 

Stock-based compensation, net of taxes

 

 

2,233

 

 

 

1,993

 

 

 

2,811

 

 

 

12,042

 

 

 

9,418

 

Non-GAAP income, net of income taxes

 

$

51,490

 

 

$

57,291

 

 

$

34,006

 

 

$

183,248

 

 

$

201,450

 

Reconciliation of non-GAAP measure - per share earnings excluding certain items

    

Three Months Ended

 

Year Ended

 

 

December 31

 

September 30

 

December 31

 

    

2021

    

2020

 

2021

 

2021

    

2020

Diluted earnings per share from continuing operations, as reported

 

$

 1.05

 

$

 1.09

 

$

 0.55

 

$

 3.51

 

$

 3.51

Add back (subtract):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share impact of non-GAAP adjustments, net of tax

 

 

 0.31

 

 

 0.40

 

 

 0.34

 

 

 1.27

 

 

 1.72

Non-GAAP per share earnings

 

$

 1.36

 

$

 1.49

 

$

 0.89

 

$

 4.78

 

$

 5.23

 

Quarterly results may not sum to year to date due to rounding

Reconciliation of Q1 2022 Guidance

Low End

High End

 

Revenue

 

$340 million

 

$380 million

 

Reconciliation of non-GAAP earnings per share

 

 

 

 

GAAP earnings per share

$

0.36

 

$

0.86

 

Stock-based compensation

 

0.11

 

 

0.11

 

Amortization of intangible assets

 

0.15

 

 

0.15

 

Restructuring and other

 

0.13

 

 

0.13

 

Tax effects of excluded items

 

(0.06

)

 

(0.06

)

Non-GAAP earnings per share

$

0.69

 

$

1.19

 

 

Edwin Mok
Advanced Energy Industries, Inc.
(970) 407-6555
ir@aei.com

Source: Advanced Energy Industries, Inc.

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