|
Delaware
|
|
000-26966
|
|
84-0846841
|
(State or other jurisdiction of incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
1625 Sharp Point Drive, Fort Collins, Colorado
|
|
80525
|
|
||
(Address of principal executive offices)
|
|
(Zip Code)
|
|
(970) 221-4670
|
|||
(Registrant's telephone number, including area code)
|
|||
|
|
|
|
Not applicable
|
|||
(Former name or former address, if changed since last report)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
|
|
|
|
|
|
/s/ Paul Oldham
|
|
Date: February 4, 2019
|
|
Paul Oldham
|
|
|
|
Chief Financial Officer & Executive Vice President
|
|
|
Q1 2019
|
Revenues
|
|
$138M - $148M
|
GAAP EPS from continuing operations
|
|
$0.24 - $0.42
|
Non-GAAP EPS from continuing operations
|
|
$0.40 - $0.55
|
|
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
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||
|
2018
|
|
2017
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||
Net income
|
$
|
147,111
|
|
|
$
|
137,861
|
|
Income (loss) 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
|
|
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 (loss) 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 (loss) 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
|
|