|
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))
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, $0.001 par value
|
|
AEIS
|
|
NASDAQ Global Select Market
|
|
|
|
|
|
|
|
/s/ Paul Oldham
|
|
Date: May 6, 2019
|
|
Paul Oldham
|
|
|
|
Chief Financial Officer & Executive Vice President
|
|
|
Q2 2019
|
Revenues
|
|
$130M - $140M
|
GAAP EPS from continuing operations
|
|
$0.10 - $0.25
|
Non-GAAP EPS
|
|
$0.25 - $0.40
|
|
March 31,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
ASSETS
|
Unaudited
|
|
|
||||
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
351,149
|
|
|
$
|
349,301
|
|
Marketable securities
|
2,516
|
|
|
2,470
|
|
||
Accounts and other receivable, net
|
102,405
|
|
|
100,442
|
|
||
Inventories, net
|
99,070
|
|
|
97,987
|
|
||
Income taxes receivable
|
1,945
|
|
|
2,220
|
|
||
Other current assets
|
11,309
|
|
|
10,173
|
|
||
Current assets of discontinued operations
|
4,872
|
|
|
5,855
|
|
||
Total current assets
|
573,266
|
|
|
568,448
|
|
||
|
|
|
|
||||
Property and equipment, net
|
31,058
|
|
|
31,269
|
|
||
Operating lease right-of-use assets
|
35,654
|
|
|
—
|
|
||
|
|
|
|
||||
Deposits and other assets
|
9,378
|
|
|
6,874
|
|
||
Goodwill and intangibles, net
|
154,164
|
|
|
156,810
|
|
||
Deferred income tax assets
|
47,513
|
|
|
47,099
|
|
||
Non-current assets of discontinued operations
|
5,917
|
|
|
5,984
|
|
||
Total assets
|
$
|
856,950
|
|
|
$
|
816,484
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
44,028
|
|
|
$
|
39,646
|
|
Other accrued expenses
|
56,470
|
|
|
65,377
|
|
||
Current portion of operating lease liability
|
7,298
|
|
|
—
|
|
||
Current liabilities of discontinued operations
|
4,254
|
|
|
5,286
|
|
||
Total current liabilities
|
112,050
|
|
|
110,309
|
|
||
|
|
|
|
||||
Non-current liabilities of continuing operations
|
112,270
|
|
|
88,158
|
|
||
Non-current liabilities of discontinued operations
|
10,486
|
|
|
10,715
|
|
||
Long-term liabilities
|
122,756
|
|
|
98,873
|
|
||
|
|
|
|
||||
Total liabilities
|
234,806
|
|
|
209,182
|
|
||
|
|
|
|
||||
Advanced Energy stockholders’ equity
|
621,624
|
|
|
606,790
|
|
||
Noncontrolling interest
|
520
|
|
|
512
|
|
||
Stockholders' equity
|
622,144
|
|
|
607,302
|
|
||
Total liabilities and stockholders' equity
|
$
|
856,950
|
|
|
$
|
816,484
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
||
Net income
|
$
|
15,378
|
|
|
$
|
46,510
|
|
Income (loss) from discontinued operations, net of income taxes
|
(9
|
)
|
|
140
|
|
||
Income from continuing operations, net of income taxes
|
15,387
|
|
|
46,370
|
|
||
|
|
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|||
Depreciation and amortization
|
4,181
|
|
|
2,861
|
|
||
Stock-based compensation expense
|
3,199
|
|
|
4,494
|
|
||
Net loss on disposal of assets
|
6
|
|
|
138
|
|
||
Changes in operating assets and liabilities, net of assets acquired
|
(15,269
|
)
|
|
(18,978
|
)
|
||
Net cash provided by operating activities from continuing operations
|
6,855
|
|
|
34,885
|
|
||
Net cash used in operating activities from discontinued operations
|
(1,409
|
)
|
|
(1,784
|
)
|
||
Net cash provided by operating activities
|
5,446
|
|
|
33,101
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
(6,072
|
)
|
||
Purchases of property and equipment
|
(2,436
|
)
|
|
(3,923
|
)
|
||
Net cash used in investing activities from continuing operations
|
(2,436
|
)
|
|
(9,995
|
)
|
||
Net cash used in investing activities from discontinued operations
|
—
|
|
|
—
|
|
||
Net cash used in investing activities
|
(2,436
|
)
|
|
(9,995
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
||
Purchase and retirement of common stock
|
—
|
|
|
(12,750
|
)
|
||
Net payments related to stock-based award activities
|
(1,707
|
)
|
|
(4,032
|
)
|
||
Net cash used in financing activities from continuing operations
|
(1,707
|
)
|
|
(16,782
|
)
|
||
Net cash used in financing activities from discontinued operations
|
—
|
|
|
—
|
|
||
Net cash used in financing activities
|
(1,707
|
)
|
|
(16,782
|
)
|
||
EFFECT OF CURRENCY TRANSLATION ON CASH
|
(566
|
)
|
|
167
|
|
||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
737
|
|
|
6,491
|
|
||
CASH AND CASH EQUIVALENTS, beginning of period
|
354,552
|
|
|
415,037
|
|
||
CASH AND CASH EQUIVALENTS, end of period
|
355,289
|
|
|
421,528
|
|
||
Less cash and cash equivalents from discontinued operations
|
4,140
|
|
|
7,654
|
|
||
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period
|
$
|
351,149
|
|
|
$
|
413,874
|
|
Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain items
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
||||||||
|
2019
|
|
2018
|
|
2018
|
||||||
Gross profit from continuing operations, as reported
|
$
|
65,740
|
|
|
$
|
103,645
|
|
|
$
|
75,188
|
|
Adjustments to gross profit:
|
|
|
|
|
|
||||||
Stock-based compensation
|
233
|
|
|
351
|
|
|
166
|
|
|||
Facility expansion and relocation costs
|
170
|
|
|
—
|
|
|
354
|
|
|||
Acquisition-related costs
|
—
|
|
|
—
|
|
|
411
|
|
|||
Non-GAAP gross profit
|
66,143
|
|
|
103,996
|
|
|
76,119
|
|
|||
|
|
|
|
|
|
||||||
Operating expenses from continuing operations, as reported
|
53,949
|
|
|
47,542
|
|
|
55,618
|
|
|||
Adjustments:
|
|
|
|
|
|
||||||
Amortization of intangible assets
|
(1,973
|
)
|
|
(1,257
|
)
|
|
(1,816
|
)
|
|||
Stock-based compensation
|
(2,966
|
)
|
|
(4,143
|
)
|
|
(2,077
|
)
|
|||
Acquisition-related costs
|
(1,511
|
)
|
|
(350
|
)
|
|
(416
|
)
|
|||
Facility expansion and relocation costs
|
(74
|
)
|
|
(476
|
)
|
|
—
|
|
|||
Restructuring charges
|
(1,673
|
)
|
|
—
|
|
|
(3,836
|
)
|
|||
Non-GAAP operating expenses
|
45,752
|
|
|
41,316
|
|
|
47,473
|
|
|||
Non-GAAP operating income
|
$
|
20,391
|
|
|
$
|
62,680
|
|
|
$
|
28,646
|
|
Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain items
|
Three Months Ended
|
|||||||
|
March 31,
|
|
December 31,
|
|||||
|
2019
|
|
2018
|
|
2018
|
|||
Gross profit from continuing operations, as reported
|
46.7
|
%
|
|
53.0
|
%
|
|
48.8
|
%
|
Adjustments to gross profit:
|
|
|
|
|
|
|||
Stock-based compensation
|
0.2
|
|
|
0.2
|
|
|
0.1
|
|
Facility expansion and relocation costs
|
0.1
|
|
|
—
|
|
|
0.2
|
|
Acquisition-related costs
|
—
|
|
|
—
|
|
|
0.3
|
|
Non-GAAP gross profit
|
47.0
|
|
|
53.2
|
|
|
49.4
|
|
|
|
|
|
|
|
|||
Operating expenses from continuing operations, as reported
|
38.3
|
|
|
24.3
|
|
|
36.1
|
|
Adjustments:
|
|
|
|
|
|
|||
Amortization of intangible assets
|
(1.4
|
)
|
|
(0.6
|
)
|
|
(1.2
|
)
|
Stock-based compensation
|
(2.0
|
)
|
|
(2.1
|
)
|
|
(1.3
|
)
|
Acquisition-related costs
|
(1.1
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
Facility expansion and relocation costs
|
(0.1
|
)
|
|
(0.2
|
)
|
|
—
|
|
Restructuring charges
|
(1.2
|
)
|
|
—
|
|
|
(2.5
|
)
|
Non-GAAP operating expenses
|
32.5
|
|
|
21.2
|
|
|
30.8
|
|
Non-GAAP operating income
|
14.5
|
%
|
|
32.0
|
%
|
|
18.6
|
%
|
Reconciliation of Non-GAAP measure - income excluding certain items
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
||||||||
|
2019
|
|
2018
|
|
2018
|
||||||
Income from continuing operations, less noncontrolling interest, net of income taxes
|
$
|
15,379
|
|
|
$
|
46,339
|
|
|
$
|
19,218
|
|
Adjustments:
|
|
|
|
|
|
||||||
Amortization of intangible assets
|
1,973
|
|
|
1,257
|
|
|
1,816
|
|
|||
Acquisition-related costs
|
1,511
|
|
|
350
|
|
|
827
|
|
|||
Facility expansion and relocation costs
|
244
|
|
|
476
|
|
|
354
|
|
|||
Restructuring charges
|
1,673
|
|
|
—
|
|
|
3,836
|
|
|||
Tax Cuts and Jobs Act Impact
|
—
|
|
|
1,853
|
|
|
1,452
|
|
|||
Tax effect of Non-GAAP adjustments
|
(851
|
)
|
|
(309
|
)
|
|
(1,198
|
)
|
|||
Non-GAAP income, net of income taxes, excluding stock-based compensation
|
19,929
|
|
|
49,966
|
|
|
26,305
|
|
|||
Stock-based compensation, net of taxes
|
2,463
|
|
|
3,460
|
|
|
1,705
|
|
|||
Non-GAAP income, net of income taxes
|
$
|
22,392
|
|
|
$
|
53,426
|
|
|
$
|
28,010
|
|
Reconciliation of Non-GAAP measure - per share earnings excluding certain items
|
Three Months Ended
|
||||||||||
|
March 31,
|
|
December 31,
|
||||||||
|
2019
|
|
2018
|
|
2018
|
||||||
Diluted earnings per share from continuing operations, as reported
|
$
|
0.40
|
|
|
$
|
1.16
|
|
|
$
|
0.50
|
|
Add back:
|
|
|
|
|
|
||||||
per share impact of Non-GAAP adjustments, net of tax
|
0.18
|
|
|
0.18
|
|
|
0.23
|
|
|||
Non-GAAP per share earnings
|
$
|
0.58
|
|
|
$
|
1.34
|
|
|
$
|
0.73
|
|
Reconciliation of Q2 2019 Guidance
|
|
|
|
||||
|
Low End
|
|
High End
|
||||
|
|
|
|
||||
Revenue
|
$130 million
|
|
$140 million
|
||||
|
|
|
|
||||
Reconciliation of Non-GAAP earnings per share
|
|
|
|
||||
GAAP earnings per share
|
$
|
0.10
|
|
|
$
|
0.25
|
|
Stock-based compensation
|
0.06
|
|
|
0.06
|
|
||
Amortization of intangible assets
|
0.05
|
|
|
0.05
|
|
||
Restructuring and other
|
0.08
|
|
|
0.07
|
|
||
Tax effects of excluded items
|
(0.04
|
)
|
|
(0.03
|
)
|
||
Non-GAAP earnings per share
|
$
|
0.25
|
|
|
$
|
0.40
|
|