Advanced Energy Announces Fourth Quarter Results
Advanced Energy Announces Fourth Quarter Results
Feb 02, 2015 4:05 PM Eastern Standard Time
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Revenue of
$153 million -
GAAP earnings of
$0.23 per diluted share -
Non-GAAP earnings of
$0.50 per diluted share -
Ended quarter with
$128 million in cash
"We ended 2014 with a strong quarter," said
Precision Power Products
Precision Power Products sales were
Inverters
Inverter sales were
Net Income
Net income for the fourth quarter of 2014 was
First Quarter 2015 Guidance
Based on the company's current view, guidance for the first quarter of 2015 is within the following ranges:
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Sales of
$137 million to$147 million -
GAAP earnings per share of
$0.32 to$0.40 -
Non-GAAP earnings per share of
$0.38 to$0.46
Fourth Quarter 2014 Conference Call
Management will host a conference call tomorrow morning,
About Advanced Energy
Advanced Energy is a global leader in innovative power and control technologies for high-growth, precision power conversion solutions. Advanced Energy is headquartered in Fort Collins,
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, 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
Forward-Looking Statements
The company's guidance with respect to anticipated financial results for the first quarter ending
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||
(in thousands, except per share data) | |||||
Three Months Ended | Twelve Months Ended | ||||
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2014 | 2013 | 2014 | 2014 | 2013 | |
SALES | $ 152,718 | $ 152,580 | $ 143,147 | $ 583,098 | $ 547,004 |
COST OF SALES | 111,839 | 93,753 | 95,204 | 389,069 | 336,868 |
GROSS PROFIT | 40,879 | 58,827 | 47,943 | 194,029 | 210,136 |
26.8% | 38.6% | 33.5% | 33.3% | 38.4% | |
OPERATING EXPENSES: | |||||
Research and development | 14,080 | 13,216 | 15,074 | 59,032 | 58,314 |
Selling, general and administrative | 21,070 | 21,960 | 20,223 | 83,852 | 84,662 |
Restructuring charges | 929 | 2,305 | 1,183 | 2,356 | 46,395 |
Amortization of intangible assets | 2,027 | 1,328 | 2,238 | 8,366 | 6,142 |
Total operating expenses | 38,106 | 38,809 | 38,718 | 153,606 | 195,513 |
OPERATING INCOME | 2,773 | 20,018 | 9,225 | 40,423 | 14,623 |
OTHER INCOME (EXPENSE), NET | (56) | 30 | (618) | (745) | (339) |
Income before income taxes | 2,717 | 20,048 | 8,607 | 39,678 | 14,284 |
Provision (benefit) for income taxes | (6,602) | (14,307) | (3,695) | (7,304) | (17,802) |
NET INCOME | $ 9,319 | $ 34,355 | $ 12,302 | $ 46,982 | $ 32,086 |
Basic weighted-average common shares outstanding | 40,329 | 40,284 | 39,998 | 40,420 | 39,597 |
Diluted weighted-average common shares outstanding | 40,757 | 41,332 | 40,470 | 41,034 | 40,667 |
EARNINGS PER SHARE: | |||||
BASIC EARNINGS PER SHARE | $ 0.23 |
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$ 0.81 |
DILUTED EARNINGS PER SHARE | $ 0.23 |
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$ 0.30 |
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$ 0.79 |
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CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(in thousands) | ||
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2014 | 2013* | |
ASSETS | UNAUDITED | |
Current assets: | ||
Cash and cash equivalents | $ 125,285 | $ 138,125 |
Marketable securities | 3,083 | 11,568 |
Accounts receivable, net | 124,150 | 125,782 |
Inventories, net | 95,082 | 109,771 |
Deferred income tax assets | 14,011 | 10,746 |
Income taxes receivable | 5,555 | 10,027 |
Other current assets | 9,588 | 10,950 |
Total current assets | 376,754 | 416,969 |
Property and equipment, net | 28,976 | 34,888 |
Deposits and other | 2,052 | 2,421 |
Goodwill and intangibles, net | 250,403 | 177,211 |
Deferred income tax assets | 26,384 | 21,488 |
Total assets | $ 684,569 | $ 652,977 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | $ 53,040 | $ 55,623 |
Other accrued expenses | 59,530 | 66,734 |
Total current liabilities | 112,570 | 122,357 |
Long-term liabilities | 97,034 | 66,158 |
Total liabilities | 209,604 | 188,515 |
Stockholders' equity | 474,965 | 464,462 |
Total liabilities and stockholders' equity | $ 684,569 | $ 652,977 |
* December 31, 2013 amounts are derived from the |
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SEGMENT INFORMATION (UNAUDITED) | |||||
(in thousands) | |||||
Three Months Ended | Twelve Months Ended | ||||
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2014 | 2013 | 2014 | 2014 | 2013 | |
SALES: | |||||
Precision Power Products | $ 105,873 | $ 87,647 | $ 91,192 | $ 361,769 | $ 296,535 |
Inverters | 46,845 | 64,933 | 51,955 | 221,329 | 250,469 |
Total Sales |
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OPERATING INCOME (LOSS): | |||||
Precision Power Products | $ 30,759 | $ 24,723 | $ 22,882 | $ 95,214 | $ 64,790 |
Inverters | (27,057) | (2,400) | (12,474) | (52,435) | (3,772) |
Total segment operating income | 3,702 | 22,323 | 10,408 | 42,779 | 61,018 |
Restructuring charges and asset impairment | (929) | (2,305) | (1,183) | (2,356) | (46,395) |
Other income (expense), net | (56) | 30 | (618) | (745) | (339) |
Income (loss) before income taxes | $ 2,717 | $ 20,048 | $ 8,607 | $ 39,678 | $ 14,284 |
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SELECTED OTHER DATA (UNAUDITED) | |||||
(in thousands) | |||||
Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain items | Three Months Ended | Twelve Months Ended | |||
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2014 | 2013 | 2014 | 2014 | 2013 | |
Gross Profit, as reported | $ 40,879 | $ 58,827 | $ 47,943 | $ 194,029 | $ 210,136 |
Operating expenses, as reported | 38,106 | 38,809 | 38,718 | 153,606 | 195,513 |
Adjustments: | |||||
Restructuring charges | (929) | (2,305) | (1,183) | (2,356) | (46,395) |
Acquisition-related costs | — | — | (60) | (730) | (1,093) |
Stock-based compensation | (245) | (4,432) | (1,488) | (4,993) | (13,742) |
Amortization of intangible assets | (2,027) | (1,328) | (2,238) | (8,366) | (6,142) |
Nonrecurring inventory impairment | (13,320) | — | — | (13,320) | — |
Nonrecurring executive severance | — | — | — | (867) | — |
Non-GAAP operating expenses | 21,585 | 30,744 | 33,749 | 122,974 | 128,141 |
Non-GAAP operating income |
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Reconciliation of Non-GAAP measure - income excluding certain items | Three Months Ended | Twelve Months Ended | |||
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2014 | 2013 | 2014 | 2014 | 2013 | |
Income (loss), net of tax, as reported | $ 9,319 | $ 34,355 | $ 12,302 | $ 46,982 | $ 32,086 |
Adjustments, net of tax | |||||
Restructuring charges | 604 | (11,785) | 1,102 | 1,931 | 30,235 |
Acquisition-related costs | — | — | 56 | 718 | 993 |
Stock-based compensation | 159 | 4,038 | 1,385 | 4,468 | 12,010 |
Amortization of intangible assets | 1,427 | 1,210 | 2,084 | 7,205 | 5,342 |
Nonrecurring tax release items | — | — | — | — | (5,608) |
Nonrecurring inventory impairment | 9,058 | — | — | 9,058 | — |
Nonrecurring executive severance | — | — | — | 800 | — |
Non-GAAP income, net of tax | $ 20,567 | $ 27,818 | $ 16,929 | $ 71,162 | $ 75,058 |
Reconciliation of Non-GAAP measure - per share earnings excluding certain items | Three Months Ended | Twelve Months Ended | |||
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2014 | 2013 | 2014 | 2014 | 2013 | |
Diluted earnings per share, as reported | $ 0.23 | $ 0.83 | $ 0.30 | $ 1.14 | $ 0.79 |
Add back: | |||||
per share impact of Non-GAAP adjustments, net of tax | 0.27 | (0.16) | 0.12 | 0.59 | 1.06 |
Non-GAAP per share earnings | $ 0.50 | $ 0.67 | $ 0.42 | $ 1.73 | $ 1.85 |
CONTACT:Source:Danny Herron Advanced Energy Industries, Inc. 970.407.6570 danny.herron@aei.comAnnie Leschin Advanced Energy Industries, Inc. 970.407.6555 ir@aei.com