Delaware | 000-26966 | 84-0846841 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1625 Sharp Point Drive, Fort Collins, Colorado | 80525 | ||||
(Address of principal executive offices) | (Zip Code) |
(970) 221-4670 | |||
(Registrant's telephone number, including area code) | |||
Not applicable | |||
(Former name or former address, if changed since last report) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits | ||
99.1 | Press release dated August 3, 2015 by Advanced Energy Industries, Inc., reporting its financial results for the quarter ended June 30, 2015. |
/s/ Thomas Liguori | |||
Date: August 3, 2015 | Thomas Liguori | ||
Executive Vice President and Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release dated August 3, 2015 by Advanced Energy Industries, Inc., reporting its financial results for the quarter ended June 30, 2015. |
CONTACTS: | |||
Tom Liguori | Annie Leschin | ||
Advanced Energy Industries, Inc. | Advanced Energy Industries, Inc. | ||
970.407.6570 | 970.407.6555 | ||
Tom.liguori@aei.com | ir@aei.com |
• | Revenue of $136.8 million |
• | GAAP earnings of $(5.68) per diluted share |
• | Non-GAAP earnings of $0.43 per diluted share |
• | Ended quarter with $183.2 million in cash and marketable securities |
• | Restructuring charges of $168.4 million consisting of $154.6 million for impairment of goodwill and intangibles, $12.3 million to write down fixed assets and $1.5 million for contract settlement costs. |
• | An inventory write-down of $15.0 million that is included in cost of sales, and |
• | A reserve for accounts receivable of $17.7 million that is included in selling, general and administrative expense. |
Non-GAAP | |||
Total Company | Inverters | Business excluding Inverters | |
Revenues | $126 - $137 million | $24 - $27 million | $102 - $110 million |
Operating income | $17 - $25 million | $(5) - $(8) million | $25 - $30 million |
GAAP EPS | $0.12 - $0.17 | ||
Non-GAAP EPS | $0.45 - $0.50 |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||
SALES | $ | 136,791 | $ | 146,285 | $ | 141,118 | $ | 277,909 | $ | 287,233 | |||||||||
COST OF SALES | 96,513 | 93,739 | 81,374 | 177,887 | 182,026 | ||||||||||||||
GROSS PROFIT | 40,278 | 52,546 | 59,744 | 100,022 | 105,207 | ||||||||||||||
29.4 | % | 35.9 | % | 42.3 | % | 36.0 | % | 36.6 | % | ||||||||||
OPERATING EXPENSES: | |||||||||||||||||||
Research and development | 14,047 | 15,736 | 14,242 | 28,289 | 29,878 | ||||||||||||||
Selling, general and administrative | 40,546 | 22,828 | 21,754 | 62,300 | 42,559 | ||||||||||||||
Amortization of intangible assets | 1,894 | 2,226 | 1,891 | 3,785 | 4,101 | ||||||||||||||
Restructuring charges | 168,393 | 244 | — | 168,393 | 244 | ||||||||||||||
Total operating expenses | 224,880 | 41,034 | 37,887 | 262,767 | 76,782 | ||||||||||||||
OPERATING (LOSS) INCOME | (184,602 | ) | 11,512 | 21,857 | (162,745 | ) | 28,425 | ||||||||||||
OTHER INCOME (EXPENSE), NET | 154 | 25 | 1,066 | 1,221 | (71 | ) | |||||||||||||
(Loss) income before income taxes | (184,448 | ) | 11,537 | 22,923 | (161,524 | ) | 28,354 | ||||||||||||
Provision for income taxes | 48,012 | 891 | 1,647 | 49,659 | 2,993 | ||||||||||||||
NET (LOSS) INCOME | $ | (232,460 | ) | $ | 10,646 | $ | 21,276 | $ | (211,183 | ) | $ | 25,361 | |||||||
Basic weighted-average common shares outstanding | 40,946 | 40,540 | 40,740 | 40,843 | 40,677 | ||||||||||||||
Diluted weighted-average common shares outstanding | 40,946 | 41,147 | 41,129 | 40,843 | 41,419 | ||||||||||||||
EARNINGS PER SHARE: | |||||||||||||||||||
BASIC EARNINGS PER SHARE | $ | (5.68 | ) | $ | 0.26 | $ | 0.52 | $ | (5.17 | ) | $ | 0.62 | |||||||
DILUTED EARNINGS PER SHARE | $ | (5.68 | ) | $ | 0.26 | $ | 0.52 | $ | (5.17 | ) | $ | 0.61 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
ASSETS | UNAUDITED | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 169,663 | $ | 125,285 | |||
Marketable securities | 13,538 | 3,083 | |||||
Accounts receivable, net | 91,432 | 124,150 | |||||
Inventories, net | 78,056 | 95,082 | |||||
Deferred income tax assets | 13,992 | 14,011 | |||||
Income taxes receivable | 11,822 | 5,555 | |||||
Other current assets | 11,356 | 9,588 | |||||
Total current assets | 389,859 | 376,754 | |||||
Property and equipment, net | 12,250 | 28,976 | |||||
Deposits and other | 1,620 | 2,052 | |||||
Goodwill and intangibles, net | 82,056 | 250,403 | |||||
Deferred income tax assets | 26,271 | 26,384 | |||||
Total assets | $ | 512,056 | $ | 684,569 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 49,451 | $ | 53,040 | |||
Other accrued expenses | 104,712 | 59,530 | |||||
Total current liabilities | 154,163 | 112,570 | |||||
Long-term liabilities | 97,441 | 97,034 | |||||
Total liabilities | 251,604 | 209,604 | |||||
Stockholders' equity | 260,452 | 474,965 | |||||
Total liabilities and stockholders' equity | $ | 512,056 | $ | 684,569 | |||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||
SALES: | |||||||||||||||||||
Precision Power Products | $ | 104,610 | $ | 81,832 | $ | 105,839 | $ | 210,449 | $ | 164,704 | |||||||||
Inverters | 32,181 | 64,453 | 35,279 | 67,460 | 122,529 | ||||||||||||||
Total Sales | $ | 136,791 | $ | 146,285 | $ | 141,118 | $ | 277,909 | $ | 287,233 | |||||||||
OPERATING (LOSS) INCOME: | |||||||||||||||||||
Precision Power Products | $ | 28,632 | $ | 18,362 | $ | 31,103 | $ | 59,735 | $ | 41,573 | |||||||||
Inverters | (44,841 | ) | (6,606 | ) | (9,246 | ) | (54,087 | ) | (12,904 | ) | |||||||||
Total segment operating (loss) income | (16,209 | ) | 11,756 | 21,857 | 5,648 | 28,669 | |||||||||||||
Restructuring charges | (168,393 | ) | (244 | ) | — | (168,393 | ) | (244 | ) | ||||||||||
Other income (expense), net | 154 | 25 | 1,066 | 1,221 | (71 | ) | |||||||||||||
(Loss) income before income taxes | $ | (184,448 | ) | $ | 11,537 | $ | 22,923 | $ | (161,524 | ) | $ | 28,354 |
Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain items | Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||
Gross Profit, as reported | $ | 40,278 | $ | 52,546 | $ | 59,744 | $ | 100,022 | $ | 105,207 | |||||||||
Operating expenses, as reported | 224,880 | 41,034 | 37,887 | 262,767 | 76,782 | ||||||||||||||
Adjustments: | |||||||||||||||||||
Restructuring charges | (168,393 | ) | (244 | ) | — | (168,393 | ) | (244 | ) | ||||||||||
Acquisition-related costs | — | (470 | ) | — | — | (730 | ) | ||||||||||||
Stock-based compensation | (853 | ) | (1,495 | ) | (589 | ) | (1,442 | ) | (3,259 | ) | |||||||||
Amortization of intangible assets | (1,894 | ) | (2,226 | ) | (1,891 | ) | (3,785 | ) | (4,101 | ) | |||||||||
Nonrecurring inventory impairment | (14,994 | ) | — | — | (14,994 | ) | — | ||||||||||||
Nonrecurring accounts receivable impairment | (17,661 | ) | — | — | (17,661 | ) | — | ||||||||||||
Nonrecurring executive severance | — | (867 | ) | — | — | (867 | ) | ||||||||||||
Non-GAAP operating expenses | 21,085 | 35,732 | 35,407 | 56,492 | 67,581 | ||||||||||||||
Non-GAAP operating income | $ | 19,193 | $ | 16,814 | $ | 24,337 | $ | 43,530 | $ | 37,626 |
Reconciliation of Non-GAAP measure - income excluding certain items | Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||
(Loss) income, net of tax, as reported | $ | (232,460 | ) | $ | 10,646 | $ | 21,276 | $ | (211,183 | ) | $ | 25,361 | |||||||
Adjustments, net of tax | |||||||||||||||||||
Restructuring charges | 167,063 | 225 | — | 167,063 | 225 | ||||||||||||||
Acquisition-related costs | — | 434 | — | — | 662 | ||||||||||||||
Stock-based compensation | 792 | 1,380 | 547 | 1,339 | 2,924 | ||||||||||||||
Amortization of intangible assets | 1,757 | 2,052 | 1,755 | 3,512 | 3,694 | ||||||||||||||
Nonrecurring tax items | 50,272 | — | — | 50,272 | — | ||||||||||||||
Nonrecurring accounts receivable impairment | 16,389 | — | — | 16,389 | — | ||||||||||||||
Nonrecurring inventory impairment | 13,914 | — | — | 13,914 | — | ||||||||||||||
Nonrecurring executive severance | — | 800 | — | — | 800 | ||||||||||||||
Non-GAAP income, net of tax | $ | 17,727 | $ | 15,537 | $ | 23,578 | $ | 41,306 | $ | 33,666 | |||||||||
*Note: The impact of the non-tax deductible goodwill impairment recorded in our second quarter exaggerated our income tax rate resulting in significant book tax expense as compared to our pre-tax book loss. Therefore for preparation of our non-GAAP information we have applied an estimated normalized tax rate of 7.2%, which is consistent with our Q1 tax rate in order to tax effect the non-GAAP items above. Additionally, we assessed the tax impact of this one time event by applying this estimated tax rate to our “book operating income excluding restructuring” in order to arrive at our estimated non-GAAP non-recurring tax add-back of $50.3 million above. |
Reconciliation of Non-GAAP measure - per share earnings excluding certain items | Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||
Diluted earnings per share, as reported | $ | (5.68 | ) | $ | 0.26 | $ | 0.52 | $ | (5.17 | ) | $ | 0.61 | |||||||
Add back: | |||||||||||||||||||
per share impact of Non-GAAP adjustments, net of tax | 6.11 | 0.12 | 0.05 | 6.17 | 0.20 | ||||||||||||||
Non-GAAP per share earnings | $ | 0.43 | $ | 0.38 | $ | 0.57 | $ | 1.00 | $ | 0.81 |
Reconciliation of Non-GAAP measure - Revenue & operating income excluding certain items | Three months ended June 30, 2015 | Six months ended June 30, 2015 | |||||||||||||||||||||
As reported | Amounts related to Inverter | Amounts excluding Inverter | As reported | Amounts related to Inverter | Amounts excluding Inverter | ||||||||||||||||||
Revenues | $ | 136,791 | $ | 32,181 | $ | 104,610 | $ | 277,909 | $ | 67,460 | $ | 210,449 | |||||||||||
Operating (loss) income as reported | $ | (184,602 | ) | $ | (213,234 | ) | $ | 28,632 | $ | (162,745 | ) | $ | (222,480 | ) | $ | 59,735 | |||||||
Adjustments | |||||||||||||||||||||||
Restructuring charges | 168,393 | 168,393 | — | 168,393 | 168,393 | — | |||||||||||||||||
Acquisition-related costs | — | — | — | — | — | — | |||||||||||||||||
Stock-based compensation | 853 | 159 | 694 | 1,442 | 260 | 1,182 | |||||||||||||||||
Nonrecurring tax items | — | — | — | — | — | — | |||||||||||||||||
Nonrecurring inventory impairment | 14,994 | 14,994 | — | 14,994 | 14,994 | — | |||||||||||||||||
Nonrecurring accounts receivable impairment | 17,661 | 17,661 | — | 17,661 | 17,661 | — | |||||||||||||||||
Amortization of intangible assets | 1,894 | 793 | 1,101 | 3,785 | 1,586 | 2,199 | |||||||||||||||||
Non-GAAP Operating income (loss) | $ | 19,193 | $ | (11,234 | ) | $ | 30,427 | $ | 43,530 | $ | (19,586 | ) | $ | 63,116 |
Reconciliation of Non-GAAP measure - Revenue & operating income excluding certain items | Three months ended June 30, 2014 | Six months ended June 30, 2014 | |||||||||||||||||||||
As reported | Amounts related to Inverter | Amounts excluding Inverter | As reported | Amounts related to Inverter | Amounts excluding Inverter | ||||||||||||||||||
Revenues | $ | 146,285 | $ | 64,453 | $ | 81,832 | $ | 287,233 | $ | 122,529 | $ | 164,704 | |||||||||||
Operating income (loss) as reported | $ | 11,512 | $ | (6,606 | ) | $ | 18,118 | $ | 28,425 | $ | (12,904 | ) | $ | 41,329 | |||||||||
Adjustments | |||||||||||||||||||||||
Restructuring charges | 244 | 189 | 55 | 244 | 189 | 55 | |||||||||||||||||
Acquisition-related costs | 470 | — | 470 | 730 | — | 730 | |||||||||||||||||
Stock-based compensation | 1,495 | 280 | 1,215 | 3,259 | 727 | 2,532 | |||||||||||||||||
Amortization of intangible assets | 2,226 | 1,115 | 1,111 | 4,101 | 2,225 | 1,876 | |||||||||||||||||
Nonrecurring executive severance | 867 | — | 867 | 867 | — | 867 | |||||||||||||||||
Non-GAAP Operating income (loss) | $ | 16,814 | $ | (5,022 | ) | $ | 21,836 | $ | 37,626 | $ | (9,763 | ) | $ | 47,389 |
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