Attached files
file | filename |
---|---|
8-K - FORM 8-K - ADVANCED ENERGY INDUSTRIES INC | d81856e8vk.htm |
Exhibit 99.1
Financial News Release
CONTACTS: |
||
Danny Herron
|
Annie Leschin/Vanessa Lehr | |
Advanced Energy Industries, Inc.
|
Advanced Energy Industries, Inc. | |
970.407.6570
|
970.407.6555 | |
danny.herron@aei.com
|
ir@aei.com |
ADVANCED ENERGY ANNOUNCES SOLID FIRST QUARTER RESULTS
| Revenue of $137.7 million, a 97.5% increase over Q1 2010 | ||
| Operating Income of $24.4 million, 17.7% of revenue | ||
| EPS of $0.43 share | ||
| Record bookings of $184.0 million |
Fort Collins, Colo., May 2, 2011 Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today
announced financial results for the first quarter ended March 31, 2011. The company posted first
quarter sales of $137.7 million, operating income of 17.7%, and earnings of $0.43 per diluted share
from continuing operations.
Advanced Energy had another quarter of solid financial and organizational performance. Our
strategy to transition the company to a diversified business model paid dividends this quarter as
increased shipments in our thin films business minimized the seasonality of our renewables
business, said Dr. Hans Betz, chief executive officer.
Total revenue of $137.7 million was split between Thin Films at $100.1 million and $37.6 million in
the Renewables Business Unit. Thin films sales were primarily driven by strength in the
semiconductor market. Renewables sales were impacted by the North American market first quarter
seasonality, but delivered record bookings of $65.5 million for the quarter.
We are very excited about our announcement today that our inverters have been chosen for two major
Utility projects: a 150MW project with Zachry in Arizona and a 35MW project in California with
Cupertino Electric, demonstrating the differentiated reliability and efficiency of our inverters
and the subsequent impact on the levelized cost of energy. We are seeing a growing number of
larger, Utility scale projects as the solar market continues its expansion, said Dr. Hans Betz,
chief executive officer.
Operating income grew to $24.4 million or 17.7% of revenue, the 8th consecutive quarter
of improved operating results. This continued strength was the result of our aggressive management
of operating expenses as we
continue to refine our strategic business units. Net income from continuing operations was $18.8
million or $0.43 per diluted share, compared to net income from continuing operations of $19.7
million or $0.45 per diluted share in the fourth quarter of 2010. This decline was due to an
increase in the companys effective tax rate to 25% in the first quarter of 2011 from 19% in the
fourth quarter of 2010.
Bookings for the first quarter were $184.0 million, compared to $83.2 million in the first quarter
of 2010.
Thin Films Business Unit
Thin Films business unit sales climbed to $100.1 million versus $67.4 million in the same period of
2010, a 49% improvement year over year. This growth reflects the continued strength in the
semiconductor industry and demonstrated our strength in advanced power solutions for Etch and
Deposition applications. We also benefitted from another strong quarter in the solar panel and
glass market as we continue to leverage our leading position in crystalline silicon processing
equipment and strategic customer relationships to address the current growth in China.
Renewables Business Unit
Renewables business unit sales were $37.6 million in the quarter versus $2.3 million in the same
period of 2010. This significant year over year improvement reflects the acquisition of PV Powered
as well continued growth of the North American solar market. Our focus on building a leading
position in the strategic commercial and Utility segments of the inverter market continued this
quarter with record bookings reflecting the many growth opportunities ahead.
Second Quarter 2011 Guidance
The Company anticipates second quarter 2011 results from continuing operations, to be within the
following ranges:
| Sales of $148 million to $160 million | ||
| Earnings per share of $0.36 to $0.44 |
First Quarter 2011 Conference Call
Management will host a conference call tomorrow, Tuesday, May3, 2011, at 8:30 a.m. Eastern Daylight
Time to discuss Advanced Energys financial results. Domestic callers may access this conference
call by dialing (800) 299-6183. International callers may access the call by dialing (617)
801-9173. Participants will need to provide a conference pass code 79453281. For a replay of this
teleconference, please call (888) 286-8010 or (617) 801-6888, and enter the pass code 79453281. 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 forthin-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 second quarter
ending June 30, 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.
###
ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Three Months Ended | ||||||||||||
March 31, | December 31, | |||||||||||
2011 | 2010 | 2010 | ||||||||||
SALES |
$ | 137,652 | $ | 69,687 | $ | 148,653 | ||||||
COST OF SALES |
75,607 | 40,480 | 83,910 | |||||||||
GROSS PROFIT |
62,045 | 29,207 | 64,743 | |||||||||
45.1 | % | 41.9 | % | 43.6 | % | |||||||
OPERATING EXPENSES: |
||||||||||||
Research and development |
15,862 | 11,142 | 15,275 | |||||||||
Selling, general and administrative |
20,905 | 12,229 | 24,586 | |||||||||
Amortization of intangible assets |
921 | | 920 | |||||||||
Total operating expenses |
37,688 | 23,371 | 40,781 | |||||||||
INCOME FROM OPERATIONS |
24,357 | 5,836 | 23,962 | |||||||||
Other income, net |
663 | 385 | 392 | |||||||||
Income from continuing operations before income taxes |
25,020 | 6,221 | 24,354 | |||||||||
Provision for income taxes |
6,254 | 1,371 | 4,624 | |||||||||
INCOME FROM CONTINUING OPERATIONS |
18,766 | 4,850 | 19,730 | |||||||||
Gain on sale of discontinued operations, net of tax |
| | 12,531 | |||||||||
Results from discontinued operations, net of tax |
140 | 1,367 | (853 | ) | ||||||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES |
140 | 1,367 | 11,678 | |||||||||
NET INCOME |
$ | 18,906 | $ | 6,217 | $ | 31,408 | ||||||
Basic weighted-average common shares outstanding |
43,440 | 42,074 | 43,315 | |||||||||
Diluted weighted-average common shares outstanding |
44,133 | 42,680 | 43,796 | |||||||||
EARNINGS PER SHARE: |
||||||||||||
CONTINUING OPERATIONS: |
||||||||||||
BASIC EARNINGS PER SHARE |
$ | 0.43 | $ | 0.12 | $ | 0.46 | ||||||
DILUTED EARNINGS PER SHARE |
$ | 0.43 | $ | 0.11 | $ | 0.45 | ||||||
DISCONTINUED OPERATIONS |
||||||||||||
BASIC EARNINGS PER SHARE |
$ | 0.00 | $ | 0.03 | $ | 0.27 | ||||||
DILUTED EARNINGS PER SHARE |
$ | 0.00 | $ | 0.03 | $ | 0.27 | ||||||
NET INCOME: |
||||||||||||
BASIC EARNINGS PER SHARE |
$ | 0.44 | $ | 0.15 | $ | 0.73 | ||||||
DILUTED EARNINGS PER SHARE |
$ | 0.43 | $ | 0.15 | $ | 0.72 |
ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, | December 31 | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 132,418 | $ | 130,914 | ||||
Marketable securities |
7,620 | 9,640 | ||||||
Accounts receivable, net |
121,236 | 119,893 | ||||||
Inventories, net |
90,109 | 77,593 | ||||||
Deferred income taxes |
7,689 | 7,510 | ||||||
Income taxes receivable |
9,435 | 6,061 | ||||||
Other current assets |
9,179 | 10,156 | ||||||
Total current assets |
377,686 | 361,767 | ||||||
Property and equipment, net |
36,210 | 34,569 | ||||||
Deposits and other |
8,874 | 8,874 | ||||||
Goodwill and intangibles, net |
95,860 | 96,781 | ||||||
Deferred income tax assets, net |
3,166 | 3,166 | ||||||
Total assets |
$ | 521,796 | $ | 505,157 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 51,974 | $ | 56,185 | ||||
Other accrued expenses |
43,005 | 46,140 | ||||||
Total current liabilities |
94,979 | 102,325 | ||||||
Long-term liabilities |
29,959 | 28,864 | ||||||
Total liabilities |
124,938 | 131,189 | ||||||
Stockholders equity |
396,858 | 373,968 | ||||||
Total liabilities and stockholders equity |
521,796 | $ | 505,157 | |||||
ADVANCED ENERGY INDUSTRIES, INC.
SEGMENT INFORMATION
(in thousands)
SEGMENT INFORMATION
(in thousands)
Three Months Ended | ||||||||||||
March 31, | December 31, | |||||||||||
2011 | 2010 | 2010 | ||||||||||
SALES: |
||||||||||||
Thin Films |
$ | 100,099 | $ | 67,423 | $ | 96,960 | ||||||
Renewables |
37,553 | 2,264 | 51,693 | |||||||||
Total Sales |
137,652 | 69,687 | 148,653 | |||||||||
OPERATING INCOME: |
||||||||||||
Thin Films |
$ | 24,824 | ||||||||||
Renewables |
2,512 | |||||||||||
Total segment operating income |
27,336 | |||||||||||
Corporate expenses |
(2,979 | ) | ||||||||||
Other income, net |
663 | |||||||||||
Income from continuing operations before income taxes |
$ | 25,020 | ||||||||||