Advanced Energy Announces Fourth Quarter and Full Year 2020 Results

  • Q4 revenue was $371 million, above the guidance midpoint of $360 million
  • Fiscal 2020 revenue was $1.416 billion, up 79% over 2019
  • Q4 GAAP EPS from continuing operations was $1.09; non-GAAP EPS was $1.49, at the high end of the guidance range of $1.10 to $1.50
  • Fiscal 2020 non-GAAP EPS was a record $5.23, more than double the $2.44 from fiscal 2019
  • 2020 operating cash flow from continuing operations exceeded $200 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, 2020.

“Advanced Energy delivered a strong quarter and finish to the year, driven by our outstanding execution and robust demand for our industry-leading products and solutions,” said President and CEO Yuval Wasserman. “During 2020, we executed our growth strategy as a pure play power leader, exceeded our synergy goals, introduced many new products across our markets, and delivered record financial results. Despite operating in a challenging environment, Advanced Energy exits the year stronger than ever and is well-positioned to capitalize on our many growth opportunities.”

Fourth Quarter Results

Sales were $371.0 million in the fourth quarter of 2020, compared with $389.5 million in the third quarter of 2020 and $338.3 million in the fourth quarter of 2019.

GAAP net income from continuing operations was $41.9 million or $1.09 per diluted share in the quarter, compared with $45.6 million or $1.18 per diluted share in the prior quarter, and $10.5 million or $0.27 per diluted share in the fourth quarter of 2019.

Non-GAAP net income was $57.3 million or $1.49 per diluted share in the fourth quarter of 2020. This compares with $63.8 million or $1.66 per diluted share in the third quarter of 2020, and $33.4 million or $0.87 per diluted share in the fourth quarter of 2019.

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

The company generated $67.1 million of operating cash from continuing operations during the quarter and made debt principal payments of $4.4 million.

Full Year 2020 Results

Sales were $1.42 billion in 2020 compared with $788.9 million in 2019, an increase of 79%.

GAAP net income from continuing operations was $135.2 million or $3.51 per diluted share in 2020, compared with $56.5 million or $1.47 per diluted share in 2019.

Non-GAAP net income was $201.5 million or $5.23 per diluted share in 2020, compared to $93.9 million or $2.44 per diluted share in 2019.

The company generated $202.2 million of operating cash from continuing operations in 2020 and ended the year with $483.0 million in cash and marketable securities.

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 are available in the company’s 2020 Annual Report on Form 10-K.

First Quarter 2021 Guidance

Based on the company’s current view, beliefs and assumptions, guidance for the first quarter of 2021 is within the following ranges.

 

 

 

 

 

 

 

 

Q1 2021

Revenues

$350M +/- $15M

GAAP EPS from continuing operations

$1.02 +/- $0.15

Non-GAAP EPS

$1.25 +/- $0.15

Conference Call

Management will host a conference call today, February 10, 2021 at 8:30 a.m. Eastern Time to discuss Advanced Energy’s financial results. To register for the call please use this link (www.directeventreg.com/registration/event/3071896). 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 more than three 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 Q2 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) the effects of global macroeconomic conditions upon demand for our products and services; (b) the volatility and cyclicality of the industries the company serves, particularly the semiconductor industry; (c) delays in capital spending by end-users in our served markets; (d) the risks and uncertainties related to the integration of Artesyn Embedded Power including the optimization and reduction of our global manufacturing sites; (e) the continuing spread of COVID-19 and its potential adverse impact on our product manufacturing, research & development, supply chain, services and administrative operations; (f) the accuracy of the company’s estimates related to fulfilling solar inverter product warranty and post-warranty obligations; (g) the company’s ability to realize its plan to avoid additional costs after the solar inverter wind-down; (h) the accuracy of the company’s assumptions on which its financial statement projections are based; (i) the impact of product price changes, which may result from a variety of factors; (j) the timing of orders received from customers; (k) the company’s ability to realize benefits from cost improvement efforts including avoided costs, restructuring plans and inorganic growth; (l) the company’s ability to obtain in a timely manner the materials necessary to manufacture its products; (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.advanced-energy.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

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

 

December 31,

 

September 30,

 

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2020

 

 

2019

 

 

 

Unaudited

 

Unaudited

 

Unaudited

 

 

 

 

 

Sales, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

337,479

 

 

$

311,618

 

 

$

358,257

 

 

$

1,296,867

 

 

$

678,061

 

Services

 

 

33,490

 

 

 

26,650

 

 

 

31,264

 

 

 

118,959

 

 

 

110,887

 

Total sales, net

 

 

370,969

 

 

 

338,268

 

 

 

389,521

 

 

 

1,415,826

 

 

 

788,948

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

209,579

 

 

 

212,526

 

 

 

220,149

 

 

 

816,329

 

 

 

416,976

 

Services

 

 

15,841

 

 

 

13,447

 

 

 

15,587

 

 

 

57,628

 

 

 

56,320

 

Total cost of sales

 

 

225,420

 

 

 

225,973

 

 

 

235,736

 

 

 

873,957

 

 

 

473,296

 

Gross profit

 

 

145,549

 

 

 

112,295

 

 

 

153,785

 

 

 

541,869

 

 

 

315,652

 

 

 

 

39.2

 

%

 

33.2

 

%

 

39.5

 

%

 

38.3

 

%

 

40.0

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

36,529

 

 

 

33,828

 

 

 

36,807

 

 

 

143,961

 

 

 

101,503

 

Selling, general and administrative

 

 

42,944

 

 

 

49,528

 

 

 

51,481

 

 

 

188,590

 

 

 

142,555

 

Amortization of intangible assets

 

 

5,065

 

 

 

5,319

 

 

 

5,049

 

 

 

20,129

 

 

 

12,168

 

Restructuring expense

 

 

5,226

 

 

 

1,418

 

 

 

1,494

 

 

 

13,166

 

 

 

5,038

 

Total operating expenses

 

 

89,764

 

 

 

90,093

 

 

 

94,831

 

 

 

365,846

 

 

 

261,264

 

Operating income

 

 

55,785

 

 

 

22,202

 

 

 

58,954

 

 

 

176,023

 

 

 

54,388

 

Other income (expense), net

 

 

(6,221

)

 

 

(4,843

)

 

 

(6,558

)

 

 

(17,876

)

 

 

12,806

 

Income from continuing operations, before income taxes

 

 

49,564

 

 

 

17,359

 

 

 

52,396

 

 

 

158,147

 

 

 

67,194

 

Provision (benefit) for income taxes

 

 

7,703

 

 

 

6,880

 

 

 

6,783

 

 

 

22,996

 

 

 

10,699

 

Income from continuing operations

 

 

41,861

 

 

 

10,479

 

 

 

45,613

 

 

 

135,151

 

 

 

56,495

 

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

 

 

 

 

 

(210

)

 

 

50

 

 

 

(421

)

 

 

8,480

 

Net income

 

 

41,861

 

 

 

10,269

 

 

 

45,663

 

 

 

134,730

 

 

 

64,975

 

Income from continuing operations attributable to noncontrolling interest

 

 

20

 

 

 

5

 

 

 

36

 

 

 

55

 

 

 

34

 

Net income attributable to Advanced Energy Industries, Inc.

 

$

41,841

 

 

$

10,264

 

 

$

45,627

 

 

$

134,675

 

 

$

64,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average common shares outstanding

 

 

38,280

 

 

 

38,341

 

 

 

38,325

 

 

 

38,314

 

 

 

38,281

 

Diluted weighted-average common shares outstanding

 

 

38,533

 

 

 

38,554

 

 

 

38,528

 

 

 

38,542

 

 

 

38,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Advanced Energy Industries, Inc:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.09

 

 

$

0.27

 

 

$

1.19

 

 

$

3.53

 

 

$

1.47

 

Diluted earnings per share

 

$

1.09

 

 

$

0.27

 

 

$

1.18

 

 

$

3.51

 

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

 

 

$

(0.01

)

 

$

 

 

$

(0.01

)

 

$

0.22

 

Diluted earnings (loss) per share

 

$

 

 

$

(0.01

)

 

$

 

 

$

(0.01

)

 

$

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.09

 

 

$

0.27

 

 

$

1.19

 

 

$

3.52

 

 

$

1.70

 

Diluted earnings per share

 

$

1.09

 

 

$

0.27

 

 

$

1.19

 

 

$

3.50

 

 

$

1.69

 

 

ADVANCED ENERGY INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

2020

 

2019

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

480,368

 

$

346,441

Marketable securities

 

 

2,654

 

 

2,614

Accounts and other receivable, net

 

 

235,178

 

 

246,564

Inventories

 

 

221,346

 

 

230,019

Income taxes receivable

 

 

5,778

 

 

4,245

Other current assets

 

 

35,899

 

 

36,855

Total current assets

 

 

981,223

 

 

866,738

 

 

 

 

 

 

 

Property and equipment, net

 

 

114,731

 

 

108,109

Operating lease right-of-use assets

 

 

103,858

 

 

105,404

Deposits and other assets

 

 

19,101

 

 

22,556

Goodwill and intangible assets, net

 

 

378,922

 

 

386,943

Deferred income tax assets

 

 

50,801

 

 

42,656

Total assets

 

$

1,648,636

 

$

1,532,406

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

125,224

 

$

170,671

Other accrued expenses

 

 

138,055

 

 

113,849

Current portion of long-term debt

 

 

17,500

 

 

17,500

Current portion of operating lease liabilities

 

 

16,592

 

 

18,312

Total current liabilities

 

 

297,371

 

 

320,332

 

 

 

 

 

 

 

Long-term debt

 

 

304,546

 

 

321,527

Non-current liabilities

 

 

231,379

 

 

213,287

Long-term liabilities

 

 

535,925

 

 

534,814

 

 

 

 

 

 

 

Total liabilities

 

 

833,296

 

 

855,146

 

 

 

 

 

 

 

Advanced Energy stockholders’ equity

 

 

814,739

 

 

676,714

Noncontrolling interest

 

 

601

 

 

546

Total stockholders’ equity

 

 

815,340

 

 

677,260

Total liabilities and stockholders’ equity

 

$

1,648,636

 

$

1,532,406

 

ADVANCED ENERGY INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2020

 

 

2019

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

134,730

 

 

$

64,975

 

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

 

 

(421

)

 

 

8,480

 

Income from continuing operations, net of income taxes

 

 

135,151

 

 

 

56,495

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

47,770

 

 

 

26,147

 

Stock-based compensation expense

 

 

12,272

 

 

 

7,327

 

Provision (benefit) for deferred income taxes

 

 

(622

)

 

 

1,015

 

Gain on sale of central inverter service business

 

 

 

 

 

(14,795

)

Discount on notes receivable

 

 

721

 

 

 

1,100

 

Net loss on disposal of assets

 

 

1,296

 

 

 

700

 

Changes in operating assets and liabilities, net of assets acquired

 

 

5,571

 

 

 

(30,090

)

Net cash from operating activities from continuing operations

 

 

202,159

 

 

 

47,899

 

Net cash from operating activities from discontinued operations

 

 

(923

)

 

 

493

 

Net cash from operating activities

 

 

201,236

 

 

 

48,392

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Proceeds from sale of marketable securities

 

 

3

 

 

 

1,742

 

Acquisitions, net of cash acquired

 

 

(5,476

)

 

 

(366,101

)

Issuance of notes receivable

 

 

(1,000

)

 

 

(4,300

)

Proceeds from sale of property and equipment

 

 

116

 

 

 

 

Purchases of property and equipment

 

 

(36,483

)

 

 

(25,188

)

Net cash from investing activities from continuing operations

 

 

(42,840

)

 

 

(393,847

)

Net cash from investing activities from discontinued operations

 

 

 

 

 

 

Net cash from investing activities

 

 

(42,840

)

 

 

(393,847

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Net proceeds from long-term borrowings

 

 

 

 

 

347,486

 

Payments on long-term borrowings

 

 

(17,500

)

 

 

(8,750

)

Purchase and retirement of common stock

 

 

(11,630

)

 

 

 

Net receipts (payments) related to stock-based award activities

 

 

(482

)

 

 

104

 

Net cash from financing activities from continuing operations

 

 

(29,612

)

 

 

338,840

 

Net cash from financing activities from discontinued operations

 

 

 

 

 

 

Net cash from in financing activities

 

 

(29,612

)

 

 

338,840

 

EFFECT OF CURRENCY TRANSLATION ON CASH

 

 

5,143

 

 

 

(1,496

)

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

133,927

 

 

 

(8,111

)

CASH AND CASH EQUIVALENTS, beginning of period

 

 

346,441

 

 

 

354,552

 

CASH AND CASH EQUIVALENTS, end of period

 

 

480,368

 

 

 

346,441

 

Less cash and cash equivalents from discontinued operations

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS, end of period

 

$

480,368

 

 

$

346,441

 

 

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,

 

 

2020

 

2019

 

2020

 

2020

 

2019

Semiconductor Equipment

 

$

165,757

 

$

125,108

 

$

167,058

 

$

611,864

 

$

403,018

Industrial & Medical

 

 

93,769

 

 

96,736

 

 

87,013

 

 

313,646

 

 

245,992

Data Center Computing

 

 

65,299

 

 

77,940

 

 

87,741

 

 

322,539

 

 

91,438

Telecom & Networking

 

 

46,144

 

 

38,484

 

 

47,709

 

 

167,777

 

 

48,500

Total

 

$

370,969

 

$

338,268

 

$

389,521

 

$

1,415,826

 

$

788,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales by Geographic Region

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2020

 

2019

 

2020

 

2020

 

2019

North America

 

$

183,101

 

$

172,697

 

$

190,629

 

$

687,814

 

$

373,634

Asia

 

 

144,505

 

 

117,559

 

 

180,660

 

 

606,893

 

 

295,155

Europe

 

 

41,919

 

 

47,264

 

 

17,886

 

 

117,990

 

 

119,427

Other Countries

 

 

1,444

 

 

748

 

 

346

 

 

3,129

 

 

732

Total

 

$

370,969

 

$

338,268

 

$

389,521

 

$

1,415,826

 

$

788,948

 

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,

 

 

2020

 

 

2019

 

 

2020

 

 

2020

 

 

2019

 

Gross profit from continuing operations, as reported

 

$

145,549

 

 

$

112,295

 

 

$

153,785

 

 

$

541,869

 

 

$

315,652

 

Adjustments to gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

122

 

 

 

160

 

 

 

67

 

 

 

567

 

 

 

525

 

Facility expansion, relocation costs and other

 

 

741

 

 

 

2,229

 

 

 

1,095

 

 

 

4,349

 

 

 

3,891

 

Acquisition-related costs

 

 

25

 

 

 

6,784

 

 

 

 

 

 

5,381

 

 

 

8,290

 

Non-GAAP gross profit

 

 

146,437

 

 

 

121,468

 

 

 

154,947

 

 

 

552,166

 

 

 

328,358

 

Non-GAAP gross margin

 

 

39.5

%

 

 

35.9

%

 

 

39.8

%

 

 

39.0

%

 

 

41.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses from continuing operations, as reported

 

 

89,764

 

 

 

90,093

 

 

 

94,831

 

 

 

365,846

 

 

 

261,264

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

(5,065

)

 

 

(5,319

)

 

 

(5,049

)

 

 

(20,129

)

 

 

(12,168

)

Stock-based compensation

 

 

(2,483

)

 

 

(2,115

)

 

 

(3,714

)

 

 

(11,705

)

 

 

(6,803

)

Acquisition-related costs

 

 

387

 

 

 

(2,562

)

 

 

(5,214

)

 

 

(10,209

)

 

 

(12,002

)

Facility expansion, relocation costs and other

 

 

(443

)

 

 

(651

)

 

 

(415

)

 

 

(2,213

)

 

 

(948

)

Restructuring charges

 

 

(5,226

)

 

 

(1,418

)

 

 

(1,494

)

 

 

(13,166

)

 

 

(5,038

)

Non-GAAP operating expenses

 

 

76,934

 

 

 

78,028

 

 

 

78,945

 

 

 

308,424

 

 

 

224,305

 

Non-GAAP operating income

 

$

69,503

 

 

$

43,440

 

 

$

76,002

 

 

$

243,742

 

 

$

104,053

 

Non-GAAP operating margin

 

 

18.7

%

 

 

12.8

%

 

 

19.5

%

 

 

17.2

%

 

 

13.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP measure – income excluding certain items

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2020

 

 

2019

 

2020

 

 

2020

 

 

2019

 

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

 

$

41,841

 

 

$

10,474

 

$

45,577

 

 

$

135,096

 

 

$

56,461

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

5,065

 

 

 

5,319

 

 

5,049

 

 

 

20,129

 

 

 

12,168

 

Acquisition-related costs

 

 

(362

)

 

 

9,346

 

 

5,214

 

 

 

15,590

 

 

 

20,292

 

Facility expansion, relocation costs and other

 

 

1,184

 

 

 

2,879

 

 

1,510

 

 

 

6,562

 

 

 

4,838

 

Restructuring charges

 

 

5,226

 

 

 

1,418

 

 

1,494

 

 

 

13,166

 

 

 

5,038

 

Unrealized foreign currency (gain) loss

 

 

3,786

 

 

 

 

 

3,540

 

 

 

8,384

 

 

 

 

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

 

 

90

 

 

 

 

 

625

 

 

 

716

 

 

 

(29

)

Central inverter services business sale

 

 

 

 

 

1,067

 

 

 

 

 

 

 

 

(13,737

)

Tax effect of Non-GAAP adjustments

 

 

(1,532

)

 

 

1,195

 

 

(2,115

)

 

 

(7,611

)

 

 

3,206

 

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

 

 

55,298

 

 

 

31,698

 

 

60,894

 

 

 

192,032

 

 

 

88,237

 

Stock-based compensation, net of taxes

 

 

1,993

 

 

 

1,740

 

 

2,892

 

 

 

9,418

 

 

 

5,627

 

Non-GAAP income, net of income taxes

 

$

57,291

 

 

$

33,438

 

$

63,786

 

 

$

201,450

 

 

$

93,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP measure – per share earnings excluding certain items

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

September 30,

 

December 31,

 

 

2020

 

2019

 

2020

 

2020

 

2019

Diluted earnings per share from continuing operations, as reported

 

$

1.09

 

$

0.27

 

$

1.18

 

$

3.51

 

$

1.47

Add back (subtract):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

0.40

 

 

0.60

 

 

0.48

 

 

1.72

 

 

0.97

Non-GAAP per share earnings

 

$

1.49

 

$

0.87

 

$

1.66

 

$

5.23

 

$

2.44

 

 

 

 

 

 

 

Reconciliation of Q1 2021 Guidance

 

 

 

 

 

 

 

 

Low End

 

High End

 

 

 

 

 

 

 

Revenue

 

$335 million

 

$365 million

 

 

 

 

 

 

 

Reconciliation of Non-GAAP earnings per share

 

 

 

 

 

 

GAAP earnings per share

 

$

0.87

 

 

$

1.17

 

Stock-based compensation

 

 

0.08

 

 

 

0.08

 

Amortization of intangible assets

 

 

0.13

 

 

 

0.13

 

Restructuring and other

 

 

0.05

 

 

 

0.05

 

Tax effects of excluded items

 

 

(0.03

)

 

 

(0.03

)

Non-GAAP earnings per share

 

$

1.10

 

 

$

1.40

 

Contacts

Brian Smith

Advanced Energy

(970) 407-6555

brian.smith@aei.com

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Laurel McBride real estate agent with Century 21 N and N Realtors with homes for sale in Logan Utah