Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q2 2019 Earnings Presentation
12 slides from Advanced Energy Industries's earnings presentation, Aug 6, 2019
Slide 1: Q2 2019 Earnings Presentation
Q2 2019 Earnings Presentation August 6, 2019 Yuval Wasserman Paul Oldham President & CEO EVP & CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement The company’s guidance with respect to anticipated financial results for the third quarter ending September 30, 2019, potential future growth and profitability, our future business mix, expectations regarding future market trends and the company’s future performance within spec
Slide 3: Key Messages
Key Messages • Strong earnings with solid operating performance ― Revenue of $134.8 million at mid point of guidance range ― Non-GAAP* EPS of $0.45 was above guidance range (lower tax contributed $0.05) ― Strong execution in cost improvement, and targeting to further improve our model • Despite the
Slide 4: Semiconductors
Semiconductors • Semiconductor revenue of $65.1M, -3.6% q/q and -48.9% y/y ― Including service, sales into semiconductor market was -1.5% q/q and -39.8% y/y ― Product revenues at our two largest customers increased q/q, offset by lower revenues from Korea and China • Demand for foundry/logic and sha
Slide 5: Industrial and Service
Industrial and Service • Industrial Technologies revenue of $41.1M, -7.8% q/q and -2.0% y/y ― Impacted by overall macro environment in the industrial sector ― Revenue from solar remained strong in Q2 as customers accelerated investments ― Demand for consumer electronics investments in FPD and hard c
Slide 6: Q2 Revenue by Application
Q2 Revenue by Application ($ in thousands) Q2’19 Q1’19 Q2’18 Q/Q Y/Y Semiconductors $65,086 $67,514 $127,291 (3.6%) (48.9%) Industrial Technologies $41,107 $44,598 $41,944 (7.8%) (2.0%) Service $28,617 $28,631 $26,797 (0.0%) 6.8% Total Revenue $134,810 $140,743 $196,032 (4.2%) (31.2%) 6 6
Slide 7: Q2 2019 Income Statement
Q2 2019 Income Statement ($ in Millions, except percentage & EPS) Q2’19 Q1’19 Q2’18 Q/Q Y/Y Revenue $134.8 $140.7 $196.0 (4.2%) (31.2%) GAAP gross margin % 47.6% 46.7% 51.6% GAAP operating expenses $53.1 $53.9 $45.2 (1.5%) 17.5% GAAP operating margin from 8.2% 8.4% 28.6% continuing ops % GAAP EPS fr
Slide 8: Q2 2019 Balance Sheet and Cash Flow
Q2 2019 Balance Sheet and Cash Flow • Generated $11.5 million in cash flow from ($ in Millions) Q2’19 Q4’18 continuing operations in Q2 Cash & $359.8 $351.8 Investments • Cash and Investments balance increased to $359.8 million Accounts $93.0 $100.4 Receivable • Inventory turns at 2.9x; DSO 62 days;
Slide 9: Q3 2019 Guidance
Q3 2019 Guidance* Q3 2019 Revenue $128M +/- $5M GAAP EPS from continuing operations $0.23 +/- $0.05 Non-GAAP** EPS $0.33 +/- $0.05 *Estimates as of Q2 2019 earnings conference call. The company assumes no obligation to update guidance. **Q3 2019 non-GAAP measures exclude the impact of non-cash relat
Slide 10: Non-GAAP Measures
Non-GAAP Measures 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, minority interest, and non-recurring items such as acquisition- related costs and restructu
Slide 11: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP* Measures Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain Reconciliation of Non-GAAP measure - income items Three Months Ended Six Months Ended excluding certain items Three Months Ended Six Months Ended June 30, Marc
Slide 12: Reconciliation of Q3 2019 Guidance
Reconciliation of Q3 2019 Guidance* Low End High End Revenues $123M - $133M Reconciliation of Non-GAAP** earnings per share GAAP earnings per share $0.18 - $0.28 Stock-based compensation 0.06 - 0.06 Amortization of intangible assets 0.05 - 0.05 Restructuring and other 0.01 - 0.01 Tax effects of excl
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