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8-K - FORM 8-K - ADVANCED ENERGY INDUSTRIES INC | c12653e8vk.htm |
Exhibit 99.1
Financial News Release
CONTACTS: |
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Danny Herron
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Annie Leschin/Vanessa Lehr | |||
Advanced Energy Industries, Inc.
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Advanced Energy Industries, Inc. | |||
970.407.6570
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970.407.6555 | |||
danny.herron@aei.com
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ir@aei.com |
ADVANCED ENERGY ANNOUNCES RECORD FOURTH QUARTER REVENUE DRIVEN BY RENEWABLES
Fort Collins, Colo., February 14, 2011 Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today
announced financial results for the fourth quarter ended December 31, 2010. Reporting record
revenue, the company posted fourth quarter sales of $148.7 million and earnings of $0.45 per
diluted share from continuing operations.
2010 was a year of significant accomplishments for Advanced Energy. We responded with speed and
flexibility to meet the needs of our customers during this high growth period in the thin film and
renewable markets, said Dr. Hans Betz, chief executive officer. Advanced Energy has become a
clear leader in solar inverter solutions. Coupled with our industry-leading thin film products, our
expansion into renewables led to our record revenue quarter, as we further penetrated the inverter
market.
Sales to the renewable inverter market surged ahead in the fourth quarter, reflecting the
wide-ranging applicability of our extended product portfolio. Inverter sales grew substantially to
$51.7 million, or 34.8% of total sales this quarter, compared to $37.4 million, or 27% of total
sales in the third quarter of 2010. Sales to the non-semiconductor thin film markets were also
extremely strong at $43.3 million, or 29.1% of total sales, compared to $41.1 million last quarter.
Sales to the semiconductor market were $40.2 million, or 27.0% of sales compared to $49.4 million
last quarter. During a seasonally soft quarter, service revenue performed well, roughly flat
sequentially at $13.4 million, or 9.0% of total sales, compared to $13.2 million last quarter.
Bookings for the fourth quarter were $113.3 million, compared to $160.3 million in the third
quarter of 2010. We entered the fourth quarter with record bookings as inverter customers placed
orders for delivery prior to year-end in order to satisfy funding requirements for various federal
incentives and grant programs in the US and Europe, many of which were expected to be reduced or
ended in 2010, but have since been extended.
Gross margin for the fourth quarter improved sequentially at 43.6% compared to 43.1% in the third
quarter of 2010. This was due in large part to the continued decline in warranty costs, reflecting
continuous improvement in our product quality. Operating expenses for the fourth quarter increased
to $40.8 million compared to $38.4
million in the third quarter in order to support higher sales volumes. Net income from continuing
operations for the fourth quarter was $19.7 million or $0.45 per diluted share, compared to net
income from continuing operations of $17.6 million or $0.40 per diluted share in the third quarter
of 2010.
Cash and investments were $140.6 million at the end of the fourth quarter, compared to $112.4
million in the third quarter of 2010. We generated $34.9 million in cash from operations during the
fourth quarter of 2010.
For the full year 2010, sales nearly tripled to $459.4 million, compared to $161.8 million in 2009.
Net income from continuing operations for 2010 was $53.6 million or earnings per share of $1.23,
compared to a net loss from continuing operations of $101.8 million, or a loss per share of $2.43
in 2009.
First Quarter 2011 Guidance
The Company anticipates first quarter 2011 results from continuing operations, to be within the
following ranges:
| Sales of $132 million to $142 million |
| Gross margin of 41% to 43% |
| Earnings per share of $0.32 to $0.38 |
Fourth Quarter 2010 Conference Call
Management will host a conference call tomorrow, Tuesday, February 15, 2011, at 8:30 a.m. Eastern
Standard Time to discuss Advanced Energys financial results. Domestic callers may access this
conference call by dialing (866) 783-2137. International callers may access the call by dialing
(857) 350-1596. Participants will need to provide a conference pass code 67334137. For a replay of
this teleconference, please call (888) 286-8010 or (617) 801-6888, and enter the pass code
61436573. 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.
About Advanced Energy
Advanced Energy (NASDAQ: AEIS News) is a global leader in innovative power and control
technologies for thin-film manufacturing and high-growth 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.
Forward-Looking Language
The Companys expectations with respect to guidance to financial results for the first quarter
ending March 31, 2011 and 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 the US and Europe related to the renewable energy market, the timing of orders
received from customers, the companys ability to realize benefits from cost improvement efforts,
the ability to source materials and manufacture products, and unanticipated changes to managements
estimates, reserves or allowances. These and other risks are described in Advanced Energys 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 SECs website at www.sec.gov.
Copies may also be obtained from Advanced Energys website at www.advancedenergy.com or by
contacting Advanced Energys 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.
###
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
(in thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | ||||||||||||||||||
2010 | 2009 | 2010 | 2010 | 2009 | ||||||||||||||||
SALES |
$ | 148,653 | $ | 58,081 | $ | 140,966 | $ | 459,414 | $ | 161,846 | ||||||||||
COST OF SALES |
83,910 | 34,812 | 80,276 | 260,215 | 112,056 | |||||||||||||||
GROSS PROFIT |
64,743 | 23,269 | 60,690 | 199,199 | 49,790 | |||||||||||||||
43.6 | % | 40.1 | % | 43.1 | % | 43.4 | % | 30.8 | % | |||||||||||
OPERATING EXPENSES: |
||||||||||||||||||||
Research and development |
15,275 | 10,720 | 16,672 | 56,604 | 41,132 | |||||||||||||||
Selling, general and administrative |
24,586 | 10,316 | 20,545 | 74,543 | 38,041 | |||||||||||||||
Impairment of goodwill |
| | | | 63,260 | |||||||||||||||
Amortization of intangible assets |
920 | 20 | 1,177 | 2,864 | 121 | |||||||||||||||
Restructuring charges |
| 6 | | | 4,376 | |||||||||||||||
Total operating expenses |
40,781 | 21,062 | 38,394 | 134,011 | 146,930 | |||||||||||||||
INCOME (LOSS) FROM OPERATIONS |
23,962 | 2,207 | 22,296 | 65,188 | (97,140 | ) | ||||||||||||||
Other income, net |
392 | 494 | 1,224 | 2,221 | 1,910 | |||||||||||||||
Income (loss) from continuing operations before income taxes |
24,354 | 2,701 | 23,520 | 67,409 | (95,230 | ) | ||||||||||||||
Provision for income taxes |
4,624 | 1,025 | 5,964 | 13,816 | 6,582 | |||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS |
19,730 | 1,676 | 17,556 | 53,593 | (101,812 | ) | ||||||||||||||
Gain on sale of discontinued operations, net of tax |
12,531 | | | 12,531 | | |||||||||||||||
Results from discontinued operations, net of tax |
(853 | ) | (153 | ) | 2,392 | 5,068 | (893 | ) | ||||||||||||
INCOME
(LOSS) FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES |
11,678 | (153 | ) | 2,392 | 17,599 | (893 | ) | |||||||||||||
NET INCOME (LOSS) |
$ | 31,408 | $ | 1,523 | $ | 19,948 | $ | 71,192 | $ | (102,705 | ) | |||||||||
Basic weighted-average common shares outstanding |
43,315 | 42,032 | 43,254 | 42,862 | 41,966 | |||||||||||||||
Diluted weighted-average common shares outstanding |
43,796 | 42,464 | 43,849 | 43,419 | 41,966 | |||||||||||||||
EARNINGS PER SHARE: |
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CONTINUING OPERATIONS: |
||||||||||||||||||||
BASIC EARNINGS (LOSS) PER SHARE |
$ | 0.46 | $ | 0.04 | $ | 0.41 | $ | 1.25 | $ | (2.43 | ) | |||||||||
DILUTED EARNINGS (LOSS) PER SHARE |
$ | 0.45 | $ | 0.04 | $ | 0.40 | $ | 1.23 | $ | (2.43 | ) | |||||||||
DISCONTINUED OPERATIONS |
||||||||||||||||||||
BASIC EARNINGS (LOSS) PER SHARE |
$ | 0.27 | $ | (0.00 | ) | $ | 0.06 | $ | 0.41 | $ | (0.02 | ) | ||||||||
DILUTED EARNINGS (LOSS) PER SHARE |
$ | 0.27 | $ | (0.00 | ) | $ | 0.05 | $ | 0.41 | $ | (0.02 | ) | ||||||||
NET INCOME (LOSS): |
||||||||||||||||||||
BASIC EARNINGS (LOSS) PER SHARE |
$ | 0.73 | $ | 0.04 | $ | 0.46 | $ | 1.66 | $ | (2.45 | ) | |||||||||
DILUTED EARNINGS (LOSS) PER SHARE |
$ | 0.72 | $ | 0.04 | $ | 0.45 | $ | 1.64 | $ | (2.45 | ) |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(in thousands)
December 31, | ||||||||
2010 | 2009 | |||||||
ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | 130,914 | $ | 133,106 | ||||
Marketable securities |
9,640 | 44,401 | ||||||
Accounts receivable, net |
119,893 | 50,267 | ||||||
Inventories, net |
77,593 | 28,567 | ||||||
Deferred income taxes |
9,303 | 9,222 | ||||||
Income taxes receivable |
6,061 | | ||||||
Assets held for sale |
| 26,460 | ||||||
Other current assets |
10,157 | 5,641 | ||||||
Total current assets |
363,561 | 297,664 | ||||||
Property and equipment, net |
34,569 | 18,687 | ||||||
Deposits and other |
8,874 | 9,295 | ||||||
Goodwill and intangibles, net |
96,781 | | ||||||
Deferred income tax assets, net |
1,373 | 19,479 | ||||||
Total assets |
$ | 505,158 | $ | 345,125 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 56,185 | $ | 23,802 | ||||
Other accrued expenses |
46,141 | 24,055 | ||||||
Liabilities of business held for sale |
| 1,477 | ||||||
Total current liabilities |
102,326 | 49,334 | ||||||
Long-term liabilities |
28,863 | 17,457 | ||||||
Total liabilities |
131,189 | 66,791 | ||||||
Stockholders equity |
373,969 | 278,334 | ||||||
Total liabilities and stockholders equity |
$ | 505,158 | $ | 345,125 | ||||