- Q3 revenue was $346 million, above the midpoint of guidance
- GAAP EPS from continuing operations was $0.55
- Non-GAAP EPS was $0.89, above the midpoint of guidance
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 third quarter ended September 30, 2021.
“Our third quarter results represent solid performance in a supply-constrained environment,” said Steve Kelley, president and CEO of Advanced Energy. “Demand for our highly engineered power delivery systems remains extremely robust. In addition, we are very pleased by the customer reaction to our new technologies and products, the drivers of AE’s future revenue and profit growth.”
Third Quarter Results
Sales were $346.1 million in the third quarter of 2021, compared with $361.3 million in the second quarter of 2021 and $389.5 million in the third quarter of 2020.
GAAP net income from continuing operations was $21.0 million or $0.55 per diluted share in the quarter, compared with $35.5 million or $0.92 per diluted share in the prior quarter, and $45.6 million or $1.18 per diluted share a year ago.
Non-GAAP net income was $34.0 million or $0.89 per diluted share in the third quarter of 2021. This compares with $48.1 million or $1.25 per diluted share in the second quarter of 2021, and $63.8 million or $1.66 per diluted share in the third quarter of 2020.
A reconciliation of non-GAAP measures is provided in the tables below.
The company generated $18.3 million of cash flow from continuing operations during the quarter, repurchased $52.6 million of common stock at $86.93 per share, and paid $3.9 million in a quarterly dividend.
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 2020 Annual Report on Form 10-K.
Fourth Quarter 2021 Guidance
Based on the company’s current view, beliefs and assumptions, guidance for the fourth quarter of 2021 is within the following ranges.
|
Q4 2021 |
Revenues |
$355M +/- $20M |
GAAP EPS from continuing operations |
$0.62 +/- $0.25 |
Non-GAAP EPS |
$0.92 +/- $0.25 |
Conference Call
Management will host a conference call today, November 8, 2021 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 |
|
Nine Months Ended |
||||||||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
||||||||||
Sales, net |
|
$ |
346,093 |
|
$ |
389,521 |
|
$ |
361,311 |
|
$ |
1,059,024 |
|
$ |
1,044,857 |
|
||||
Cost of sales |
|
|
226,054 |
|
|
235,736 |
|
|
226,278 |
|
|
666,449 |
|
|
648,537 |
|
||||
Gross profit |
|
|
120,039 |
|
|
153,785 |
|
|
135,033 |
|
|
392,575 |
|
|
396,320 |
|
||||
|
|
|
34.7 |
% |
|
39.5 |
% |
|
37.4 |
% |
|
37.1 |
% |
|
37.9 |
% |
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Research and development |
|
|
40,578 |
|
|
36,807 |
|
|
40,119 |
|
|
120,865 |
|
|
107,432 |
|
||||
Selling, general, and administrative |
|
|
48,373 |
|
|
51,481 |
|
|
48,110 |
|
|
143,214 |
|
|
145,646 |
|
||||
Amortization of intangible assets |
|
|
5,607 |
|
|
5,049 |
|
|
5,513 |
|
|
16,504 |
|
|
15,064 |
|
||||
Restructuring expense |
|
|
1,272 |
|
|
1,494 |
|
|
211 |
|
|
2,521 |
|
|
7,940 |
|
||||
Total operating expenses |
|
|
95,830 |
|
|
94,831 |
|
|
93,953 |
|
|
283,104 |
|
|
276,082 |
|
||||
Operating income |
|
|
24,209 |
|
|
58,954 |
|
|
41,080 |
|
|
109,471 |
|
|
120,238 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other income (expense), net |
|
|
495 |
|
|
(6,558 |
) |
|
(3,662 |
) |
|
(3,674 |
) |
|
(11,655 |
) |
||||
Income from continuing operations, before income taxes |
|
|
24,704 |
|
|
52,396 |
|
|
37,418 |
|
|
105,797 |
|
|
108,583 |
|
||||
Provision (benefit) for income taxes |
|
|
3,657 |
|
|
6,783 |
|
|
1,876 |
|
|
10,817 |
|
|
15,293 |
|
||||
Income from continuing operations |
|
|
21,047 |
|
|
45,613 |
|
|
35,542 |
|
|
94,980 |
|
|
93,290 |
|
||||
Income (loss) from discontinued operations, net of income taxes |
|
|
(37 |
) |
|
50 |
|
|
(102 |
) |
|
171 |
|
|
(421 |
) |
||||
Net income |
|
|
21,010 |
|
|
45,663 |
|
|
35,440 |
|
|
95,151 |
|
|
92,869 |
|
||||
Income from continuing operations attributable to noncontrolling interest |
|
|
6 |
|
|
36 |
|
|
31 |
|
|
70 |
|
|
35 |
|
||||
Net income attributable to Advanced Energy Industries, Inc. |
|
$ |
21,004 |
|
$ |
45,627 |
|
$ |
35,409 |
|
$ |
95,081 |
|
$ |
92,834 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic weighted-average common shares outstanding |
|
|
38,183 |
|
|
38,325 |
|
|
38,389 |
|
|
38,296 |
|
|
38,322 |
|
||||
Diluted weighted-average common shares outstanding |
|
|
38,363 |
|
|
38,528 |
|
|
38,586 |
|
|
38,517 |
|
|
38,531 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per share attributable to Advanced Energy Industries, Inc: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic earnings per share |
|
$ |
0.55 |
|
$ |
1.19 |
|
$ |
0.93 |
|
$ |
2.48 |
|
$ |
2.43 |
|
||||
Diluted earnings per share |
|
$ |
0.55 |
|
$ |
1.18 |
|
$ |
0.92 |
|
$ |
2.46 |
|
$ |
2.42 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic earnings (loss) per share |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(0.01 |
) |
||||
Diluted earnings (loss) per share |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(0.01 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic earnings per share |
|
$ |
0.55 |
|
$ |
1.19 |
|
$ |
0.92 |
|
$ |
2.48 |
|
$ |
2.42 |
|
||||
Diluted earnings per share |
|
$ |
0.55 |
|
$ |
1.19 |
|
$ |
0.92 |
|
$ |
2.47 |
|
$ |
2.41 |
|
||||
ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) |
||||||
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
||
|
|
2021 |
|
2020 |
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
547,923 |
|
$ |
480,368 |
Marketable securities |
|
|
2,833 |
|
|
2,654 |
Accounts and other receivable, net |
|
|
220,112 |
|
|
235,178 |
Inventories |
|
|
341,500 |
|
|
221,346 |
Income taxes receivable |
|
|
19,005 |
|
|
4,804 |
Other current assets |
|
|
32,984 |
|
|
35,899 |
Total current assets |
|
|
1,164,357 |
|
|
980,249 |
|
|
|
|
|
|
|
Property and equipment, net |
|
|
114,801 |
|
|
114,731 |
Operating lease right-of-use assets |
|
|
104,179 |
|
|
103,858 |
Deposits and other assets |
|
|
19,067 |
|
|
19,101 |
Goodwill and intangible assets, net |
|
|
378,657 |
|
|
378,922 |
Deferred income tax assets |
|
|
50,994 |
|
|
50,801 |
Total assets |
|
$ |
1,832,055 |
|
$ |
1,647,662 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
190,228 |
|
$ |
125,224 |
Other accrued expenses |
|
|
160,923 |
|
|
137,081 |
Current portion of long-term debt |
|
|
20,000 |
|
|
17,500 |
Current portion of operating lease liabilities |
|
|
16,137 |
|
|
16,592 |
Total current liabilities |
|
|
387,288 |
|
|
296,397 |
|
|
|
|
|
|
|
Long-term debt |
|
|
377,597 |
|
|
304,546 |
Non-current liabilities |
|
|
225,379 |
|
|
231,379 |
Long-term liabilities |
|
|
602,976 |
|
|
535,925 |
|
|
|
|
|
|
|
Total liabilities |
|
|
990,264 |
|
|
832,322 |
|
|
|
|
|
|
|
Advanced Energy stockholders' equity |
|
|
841,120 |
|
|
814,739 |
Noncontrolling interest |
|
|
671 |
|
|
601 |
Total stockholders’ equity |
|
|
841,791 |
|
|
815,340 |
Total liabilities and stockholders’ equity |
|
$ |
1,832,055 |
|
$ |
1,647,662 |
ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (in thousands) |
||||||||
|
|
|
|
|
|
|||
|
|
Nine Months Ended September 30, |
||||||
|
|
2021 |
2020 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|||
Net income |
|
$ |
95,151 |
|
$ |
92,869 |
|
|
Income (loss) from discontinued operations, net of income taxes |
|
|
171 |
|
|
(421 |
) |
|
Income from continuing operations, net of income taxes |
|
|
94,980 |
|
|
93,290 |
|
|
|
|
|
|
|
|
|||
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
|
|||
Depreciation and amortization |
|
|
39,225 |
|
|
35,433 |
|
|
Stock-based compensation expense |
|
|
12,819 |
|
|
9,666 |
|
|
Provision for deferred income taxes |
|
|
(1,404 |
) |
|
(7,849 |
) |
|
Discount on notes receivable |
|
|
(638 |
) |
|
721 |
|
|
Loss on disposal of assets |
|
|
923 |
|
|
678 |
|
|
Changes in operating assets and liabilities, net of assets acquired |
|
|
(39,495 |
) |
|
3,093 |
|
|
Net cash from operating activities from continuing operations |
|
|
106,410 |
|
|
135,032 |
|
|
Net cash from operating activities from discontinued operations |
|
|
(523 |
) |
|
(659 |
) |
|
Net cash from operating activities |
|
|
105,887 |
|
|
134,373 |
|
|
|
|
|
|
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|||
Net proceeds from sale of marketable securities |
|
|
— |
|
|
3 |
|
|
Receipt (issuance) of notes receivable |
|
|
802 |
|
|
(1,000 |
) |
|
Proceeds from sale of property and equipment |
|
|
1,537 |
|
|
103 |
|
|
Purchases of property and equipment |
|
|
(22,721 |
) |
|
(25,232 |
) |
|
Acquisitions, net of cash acquired |
|
|
(18,739 |
) |
|
(1,127 |
) |
|
Net cash from investing activities from continuing operations |
|
|
(39,121 |
) |
|
(27,253 |
) |
|
Net cash from investing activities from discontinued operations |
|
|
— |
|
|
— |
|
|
Net cash from investing activities |
|
|
(39,121 |
) |
|
(27,253 |
) |
|
|
|
|
|
|
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|||
Proceeds from long-term borrowings |
|
|
85,000 |
|
|
— |
|
|
Payment of debt-issuance costs |
|
|
(1,350 |
) |
|
— |
|
|
Payments on long-term borrowings |
|
|
(8,750 |
) |
|
(13,125 |
) |
|
Dividend payments |
|
|
(11,585 |
) |
|
— |
|
|
Purchase and retirement of common stock |
|
|
(56,625 |
) |
|
(11,579 |
) |
|
Net payments related to stock-based awards |
|
|
(3,136 |
) |
|
(1,451 |
) |
|
Net cash from financing activities from continuing operations |
|
|
3,554 |
|
|
(26,155 |
) |
|
Net cash from financing activities from discontinued operations |
|
|
— |
|
|
— |
|
|
Net cash from in financing activities |
|
|
3,554 |
|
|
(26,155 |
) |
|
|
|
|
|
|
|
|||
EFFECT OF CURRENCY TRANSLATION ON CASH |
|
|
(2,765 |
) |
|
1,571 |
|
|
|
|
|
|
|
|
|||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
67,555 |
|
|
82,536 |
|
|
CASH AND CASH EQUIVALENTS, beginning of period |
|
|
480,368 |
|
|
346,441 |
|
|
CASH AND CASH EQUIVALENTS, end of period |
|
|
547,923 |
|
|
428,977 |
|
|
Less cash and cash equivalents from discontinued operations |
|
|
— |
|
|
— |
|
|
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period |
|
$ |
547,923 |
|
$ |
428,977 |
|
|
ADVANCED ENERGY INDUSTRIES, INC. SUPPLEMENTAL INFORMATION (UNAUDITED) (in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales by Product Line |
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|||||
Semiconductor Equipment |
|
$ |
173,441 |
|
$ |
167,058 |
|
$ |
176,671 |
|
$ |
530,828 |
|
$ |
446,107 |
Industrial and Medical |
|
|
80,800 |
|
|
87,013 |
|
|
83,197 |
|
|
242,412 |
|
|
219,877 |
Data Center Computing |
|
|
62,231 |
|
|
87,741 |
|
|
69,458 |
|
|
190,843 |
|
|
257,240 |
Telecom and Networking |
|
|
29,621 |
|
|
47,709 |
|
|
31,985 |
|
|
94,941 |
|
|
121,633 |
Total |
|
$ |
346,093 |
|
$ |
389,521 |
|
$ |
361,311 |
|
$ |
1,059,024 |
|
$ |
1,044,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales by Geographic Region |
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|||||
United States |
|
$ |
139,089 |
|
$ |
152,503 |
|
$ |
139,525 |
|
$ |
410,212 |
|
$ |
389,007 |
North America (excluding U.S.) |
|
|
24,708 |
|
|
38,126 |
|
|
26,112 |
|
|
77,067 |
|
|
115,712 |
Asia |
|
|
135,838 |
|
|
180,660 |
|
|
148,803 |
|
|
434,232 |
|
|
462,388 |
Europe |
|
|
44,838 |
|
|
17,886 |
|
|
44,491 |
|
|
129,751 |
|
|
76,070 |
Other |
|
|
1,620 |
|
|
346 |
|
|
2,380 |
|
|
7,762 |
|
|
1,680 |
Total |
|
$ |
346,093 |
|
$ |
389,521 |
|
$ |
361,311 |
|
$ |
1,059,024 |
|
$ |
1,044,857 |
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 |
|
Nine Months Ended |
||||||||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
||||||||||
Gross profit from continuing operations, as reported |
|
$ |
120,039 |
|
|
$ |
153,785 |
|
|
$ |
135,033 |
|
|
$ |
392,575 |
|
|
$ |
396,320 |
|
Adjustments to gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock-based compensation |
|
|
218 |
|
|
|
67 |
|
|
|
215 |
|
|
|
783 |
|
|
|
445 |
|
Facility expansion, relocation costs and other |
|
|
1,357 |
|
|
|
1,095 |
|
|
|
1,997 |
|
|
|
5,192 |
|
|
|
3,608 |
|
Acquisition-related costs |
|
|
3,259 |
|
|
|
— |
|
|
|
84 |
|
|
|
3,351 |
|
|
|
5,356 |
|
Non-GAAP gross profit |
|
|
124,873 |
|
|
|
154,947 |
|
|
|
137,329 |
|
|
|
401,901 |
|
|
|
405,729 |
|
Non-GAAP gross margin |
|
|
36.1 |
% |
|
|
39.8 |
% |
|
|
38.0 |
% |
|
|
38.0 |
% |
|
|
38.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating expenses from continuing operations, as reported |
|
|
95,830 |
|
|
|
94,831 |
|
|
|
93,953 |
|
|
|
283,104 |
|
|
|
276,082 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
(5,607 |
) |
|
|
(5,049 |
) |
|
|
(5,513 |
) |
|
|
(16,504 |
) |
|
|
(15,064 |
) |
Stock-based compensation |
|
|
(3,456 |
) |
|
|
(3,714 |
) |
|
|
(3,229 |
) |
|
|
(12,036 |
) |
|
|
(9,221 |
) |
Acquisition-related costs |
|
|
(1,768 |
) |
|
|
(5,214 |
) |
|
|
(2,328 |
) |
|
|
(6,124 |
) |
|
|
(10,597 |
) |
Facility expansion, relocation costs and other |
|
|
(98 |
) |
|
|
(415 |
) |
|
|
(63 |
) |
|
|
(212 |
) |
|
|
(1,770 |
) |
Restructuring charges |
|
|
(1,272 |
) |
|
|
(1,494 |
) |
|
|
(211 |
) |
|
|
(2,521 |
) |
|
|
(7,940 |
) |
Non-GAAP operating expenses |
|
|
83,629 |
|
|
|
78,945 |
|
|
|
82,609 |
|
|
|
245,707 |
|
|
|
231,490 |
|
Non-GAAP operating income |
|
$ |
41,244 |
|
|
$ |
76,002 |
|
|
$ |
54,720 |
|
|
$ |
156,194 |
|
|
$ |
174,239 |
|
Non-GAAP operating margin |
|
|
11.9 |
% |
|
|
19.5 |
% |
|
|
15.1 |
% |
|
|
14.7 |
% |
|
|
16.7 |
% |
Reconciliation of Non-GAAP measure - income excluding certain items |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
||||||||||
Income from continuing operations, less non-controlling interest, net of income taxes |
|
$ |
21,041 |
|
|
$ |
45,577 |
|
|
$ |
35,511 |
|
|
$ |
94,910 |
|
|
$ |
93,255 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortization of intangible assets |
|
|
5,607 |
|
|
|
5,049 |
|
|
|
5,513 |
|
|
|
16,504 |
|
|
|
15,064 |
|
Acquisition-related costs |
|
|
5,027 |
|
|
|
5,214 |
|
|
|
2,412 |
|
|
|
9,475 |
|
|
|
15,953 |
|
Facility expansion, relocation costs, and other |
|
|
1,455 |
|
|
|
1,510 |
|
|
|
2,060 |
|
|
|
5,404 |
|
|
|
5,378 |
|
Restructuring charges |
|
|
1,272 |
|
|
|
1,494 |
|
|
|
211 |
|
|
|
2,521 |
|
|
|
7,940 |
|
Unrealized foreign currency (gain) loss |
|
|
(2,092 |
) |
|
|
3,540 |
|
|
|
885 |
|
|
|
(3,409 |
) |
|
|
4,598 |
|
Acquisition-related costs and other included in other income (expense), net |
|
|
(79 |
) |
|
|
625 |
|
|
|
899 |
|
|
|
907 |
|
|
|
625 |
|
Tax effect of non-GAAP adjustments |
|
|
(1,036 |
) |
|
|
(2,115 |
) |
|
|
(2,043 |
) |
|
|
(4,363 |
) |
|
|
(6,080 |
) |
Non-GAAP income, net of income taxes, excluding stock-based compensation |
|
|
31,195 |
|
|
|
60,894 |
|
|
|
45,448 |
|
|
|
121,949 |
|
|
|
136,733 |
|
Stock-based compensation, net of taxes |
|
|
2,811 |
|
|
|
2,892 |
|
|
|
2,636 |
|
|
|
9,809 |
|
|
|
7,425 |
|
Non-GAAP income, net of income taxes |
|
$ |
34,006 |
|
|
$ |
63,786 |
|
|
$ |
48,084 |
|
|
$ |
131,758 |
|
|
$ |
144,158 |
|
Reconciliation of non-GAAP measure - per share earnings excluding certain items |
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
|||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|||||
Diluted earnings per share from continuing operations, as reported |
|
$ |
0.55 |
|
$ |
1.18 |
|
$ |
0.92 |
|
$ |
2.46 |
|
$ |
2.42 |
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share impact of non-GAAP adjustments, net of tax |
|
|
0.34 |
|
|
0.48 |
|
|
0.33 |
|
|
0.96 |
|
|
1.32 |
Non-GAAP per share earnings |
|
$ |
0.89 |
|
$ |
1.66 |
|
$ |
1.25 |
|
$ |
3.42 |
|
$ |
3.74 |
Quarterly results may not sum to year to date due to rounding |
|||||||||||||||
Reconciliation of Q4 2021 Guidance |
||||||||
Low End |
High End |
|||||||
Revenue |
|
$335 million |
|
$375 million |
||||
Reconciliation of non-GAAP earnings per share |
|
|
|
|
||||
GAAP earnings per share |
$ |
0.37 |
|
$ |
0.87 |
|
||
Stock-based compensation |
|
0.11 |
|
|
0.11 |
|
||
Amortization of intangible assets |
|
0.14 |
|
|
0.14 |
|
||
Restructuring and other |
|
0.10 |
|
|
0.10 |
|
||
Tax effects of excluded items |
|
(0.05 |
) |
|
(0.05 |
) |
||
Non-GAAP earnings per share |
$ |
0.67 |
|
$ |
1.17 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211108005936/en/
Contacts
Brian Smith
Advanced Energy
(970) 407-6555
brian.smith@aei.com
