Advanced Energy Announces Fourth Quarter Results
* Reuters is not responsible for the content in this press release.
http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130204:nGNXUXCEIa * Revenue of $113 million * Non-GAAP EPS of $0.16 per diluted share * Generated $19 million in cash during the fourth quarter * Generated $111 million in cash during fiscal 2012 FORT COLLINS, Colo., Feb. 4, 2013 (GLOBE NEWSWIRE) -- Advanced Energy Industries, Inc. (Nasdaq:AEIS) today announced financial results for the fourth quarter ended December 31, 2012. The company posted fourth quarter sales of $113.0 million compared to $117.5 million in the third quarter of 2012 and $112.5 million in the fourth quarter of 2011. Income from continuing operations was $4.9 million or $0.13 per diluted share. On a non-GAAP basis, income from continuing operations was $6.2 million or $0.16 per diluted share. The non-GAAP measures exclude a $2.0 million restructuring charge taken in the fourth quarter. A reconciliation of non-GAAP income from continuing operations and earnings per share is provided in the tables below. The company ended the quarter with $172.2 million in cash and marketable securities, having generated $110.8 million of cash during 2012. "With the majority of our restructuring efforts successfully implemented and a strong financial and operational platform in place, we begin the year focused on driving revenue growth," said Garry Rogerson, CEO. "Demand for our large scale inverters in the North American market remains strong, and we continue to look at expansion opportunities. In our Thin Films business, we are beginning to see signs that point to recovery in some of our markets as the year progresses. Together, these market conditions position us well for 2014, as we remain committed to our 2014 aspirational goals and actively pursue both organic and inorganic opportunities." Thin Films Business Unit Thin Films sales decreased 6.1% to $53.3 million in the fourth quarter of 2012 from $56.8 million in the third quarter of 2012, and 2.0% from $54.4 million in the fourth quarter of 2011. Sales to the semiconductor market remained flat in the fourth quarter, while declines in the industrial and service markets offset the increases in flat panel display and solar panel equipment markets. Solar Energy Business Unit Solar Energy sales were $59.6 million in the fourth quarter of 2012, a decrease of 1.8% from $60.7 million in the third quarter of 2012, and an increase of 2.6% from $58.1 million in the fourth quarter of 2011. Demand for our products in the North American market remained solid despite the absence of year-end tax credits and incentives. Income from Continuing Operations Income from continuing operations for the fourth quarter was $4.9 million or $0.13 per diluted share, compared to income from continuing operations of $5.7 million or $0.15 per diluted share in the third quarter of 2012, and loss from continuing operations of $2.6 million or $0.06 per diluted share in the same period last year. On a non-GAAP basis, excluding the impact of the $2.0 million restructuring charge, income from continuing operations was $6.2 million or $0.16 per diluted share, down from $7.6 million or $0.20 per diluted share in the third quarter of 2012. Restructuring Charge The company incurred a $2.0 million charge this quarter related to the restructuring plan that was announced on September 28, 2011. During the quarter the company consolidated certain facilities and centralized other activities. Over time, existing cost savings along with other manufacturing cost savings initiatives and cost of goods improvements are currently expected to deliver annual savings of approximately $55 million by the end of 2014. First Quarter 2013 Guidance The company anticipates first quarter 2013 results from continuing operations to be within the following ranges: * Sales of $105 million to $115 million * Non-GAAP per share earnings of $0.14 to $0.18 Fourth Quarter 2012 Conference Call Management will host a conference call tomorrow, Tuesday, February 5, 2013, at 8:30 a.m. Eastern Time to discuss Advanced Energy's financial results. Domestic callers may access this conference call by dialing 800-591-6930. International callers may access the call by dialing 617-614-4908. Participants will need to provide conference pass code 45866756. For a replay of this teleconference, please call 888-286-8010 or 617-801-6888, and enter the pass code 87376844. The replay will be available for two weeks following the conference call. A webcast will also be available on the Investor Relations web page at http://ir.advanced-energy.com http://www.globenewswire.com/newsroom/ctr?d=10020487&l=15&u=http%3A%2F%2Fir.advanced-energy.com . About Advanced Energy Advanced Energy (Nasdaq:AEIS) is a global leader in innovative power and control technologies for high-growth, thin-film manufacturing and solar-power generation. Advanced Energy is headquartered in Fort Collins, Colorado, with dedicated support and service locations around the world. For more information, go to www.advanced-energy.com. This release includes GAAP and non-GAAP operating income and per share earnings data. 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, provides investors with additional perspective. While some of these 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 they do not reflect all of the amounts associated with its 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. For additional information on the items excluded from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission. Forward-Looking Statements The company's expectations with respect to guidance to financial results for the first quarter ending March 31, 2013, anticipated cost savings, market performance, future charges and other statements 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: the effects of global macroeconomic conditions upon demand for our products, the volatility and cyclicality of the industries the company serves, particularly the semiconductor industry, the continuation of RPS (renewable portfolio standards), the timing and availability of incentives and grant programs in North America and Europe related to the renewable energy market, renewable energy project delays resulting from solar panel price declines and increased competition in the solar inverter equipment market, the timing of orders received from customers, the company's ability to realize benefits from cost improvement efforts including avoided costs, any restructuring plans and any inorganic growth, the ability to obtain materials and manufacture products, and unanticipated changes to management's estimates, reserves or allowances. 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. These reports and statements are available on the SEC's website at www.sec.gov http://www.globenewswire.com/newsroom/ctr?d=10020487&l=21&a=www.sec.gov&u=http%3A%2F%2Fwww.sec.gov . Copies may also be obtained from Advanced Energy's website at www.advancedenergy.com http://www.globenewswire.com/newsroom/ctr?d=10020487&l=21&a=www.advancedenergy.com&u=http%3A%2F%2Fwww.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. 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 Year Ended December 31, September 30, December 31, 2012 2011 2012 2012 2011 SALES $ 112,971 $ 112,495 $ 117,515 $ 451,931 $ 516,799 COST OF SALES 74,425 73,607 71,788 284,185 311,642 GROSS PROFIT 38,546 38,888 45,727 167,746 205,157 34.1% 34.6% 38.9% 37.1% 39.7% OPERATING EXPENSES: Research and development 13,895 14,393 14,564 58,076 64,984 Selling, general and administrative 15,556 22,343 16,806 69,127 79,722 Restructuring charges 2,039 4,229 3,003 7,473 7,348 Amortization of intangible assets 1,557 1,021 1,416 5,696 3,852 Total operating expenses 33,047 41,986 35,789 140,372 155,906 Operating income (loss) 5,499 (3,098) 9,938 27,374 49,251 Other income, net 181 721 65 2,432 1,217 Income (loss) from continuing operations before income taxes 5,680 (2,377) 10,003 29,806 50,468 Provision for income taxes 806 218 4,268 9,630 13,614 INCOME (LOSS) FROM CONTINUING OPERATIONS, NET OF INCOME TAXES 4,874 (2,595) 5,735 20,176 36,854 Income (loss) from discontinued operations, net of income taxes (25) (175) -- 405 (540) NET INCOME (LOSS) $ 4,849 $ (2,770) $ 5,735 $ 20,581 $ 36,314 Basic weighted-average common shares outstanding 37,955 43,465 37,807 38,879 43,465 Diluted weighted-average common shares outstanding 38,484 43,954 38,330 39,447 43,954 EARNINGS PER SHARE: CONTINUING OPERATIONS: BASIC EARNINGS (LOSS) PER SHARE $ 0.13 $ (0.06) $ 0.15 $ 0.52 $ 0.85 DILUTED EARNINGS (LOSS) PER SHARE $ 0.13 $ (0.06) $ 0.15 $ 0.51 $ 0.84 DISCONTINUED OPERATIONS BASIC EARNINGS (LOSS) PER SHARE $ 0.00 $ (0.00) $ 0.00 $ 0.01 $ (0.01) DILUTED EARNINGS (LOSS) PER SHARE $ 0.00 $ (0.00) $ 0.00 $ 0.01 $ (0.01) NET INCOME: BASIC EARNINGS (LOSS) PER SHARE $ 0.13 $ (0.06) $ 0.15 $ 0.53 $ 0.84 DILUTED EARNINGS (LOSS) PER SHARE $ 0.13 $ (0.06) $ 0.15 $ 0.52 $ 0.83 ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 31, 2012 2011 * ASSETS UNAUDITED Current assets: Cash and cash equivalents $ 146,564 $ 117,639 Marketable securities 25,683 25,567 Accounts receivable, net 83,914 132,485 Inventories, net 81,482 80,283 Deferred income taxes 19,477 9,014 Income taxes receivable 4,315 13,826 Other current assets 9,075 11,672 Total current assets 370,510 390,486 Property and equipment, net 39,523 42,338 Deposits and other 7,529 8,959 Goodwill and intangibles, net 106,600 89,953 Deferred income tax assets 13,998 1,642 Total assets $ 538,160 $ 533,378 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 41,044 $ 44,828 Other accrued expenses 47,602 46,416 Total current liabilities 88,646 91,244 Long-term liabilities 61,883 34,795 Total liabilities 150,529 126,039 Stockholders' equity 387,631 407,339 Total liabilities and stockholders' equity $ 538,160 $ 533,378 * December 31, 2011 amounts are derived from the December 31, 2011 audited Consolidated Financial Statements. ADVANCED ENERGY INDUSTRIES, INC. SEGMENT INFORMATION (UNAUDITED) (in thousands) Three Months Ended Year Ended December 31, September 30, December 31, 2012 2011 2012 2012 2011 SALES: Thin Films $ 53,322 $ 54,420 $ 56,780 $ 235,335 $ 328,614 Solar Energy 59,649 58,075 60,735 216,596 188,185 Total Sales $ 112,971 $ 112,495 $ 117,515 $ 451,931 $ 516,799 OPERATING INCOME: Thin Films $ 4,691 $ 7,360 $ 6,065 $ 22,804 $ 68,241 Solar Energy 3,360 231 7,410 14,003 4,323 Total segment operating income 8,051 7,591 13,475 36,807 72,564 Corporate expenses (513) (6,460) (534) (1,960) (15,965) Restructuring charges (2,039) (4,229) (3,003) (7,473) (7,348) Other income, net 181 721 65 2,432 1,217 Income (loss) from continuing operations before income taxes $ 5,680 $ (2,377) $ 10,003 $ 29,806 $ 50,468 ADVANCED ENERGY INDUSTRIES, INC. SELECTED OTHER DATA (UNAUDITED) (in thousands) Reconciliation of Non-GAAP measure - income from continuing operations Three Months Ended Twelve Months Ended December 31, December 31, 2012 2012 Income from continuing operations, net of tax, as reported $ 4,874 $ 20,176 Adjustments: Restructuring charges, net of tax 1,367 4,778 Gain on sale of gas flow manufacturing assets, net of tax -- (1,452) Income from continuing operations, net of tax $ 6,241 $ 23,502 Reconciliation of Non-GAAP measure - per share earnings from continuing operations Three Months Ended Twelve Months Ended December 31, December 31, 2012 2012 Diluted earnings per share from continuing operations, as reported $ 0.13 $ 0.51 Adjustments: per share impact of restructuring charges, net of tax 0.03 0.13 per share impact of gain on sale of gas flow manufacturing assets, net of tax -- (0.04) Per share earnings from continuing operations $ 0.16 $ 0.60 CONTACT: Danny Herron Advanced Energy Industries, Inc. 970.407.6570 email@example.com Annie Leschin/Vanessa Lehr Advanced Energy Industries, Inc. 970.407.6555 firstname.lastname@example.org