Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q4 2020 Earnings Presentation
17 slides from Advanced Energy Industries's earnings presentation, Feb 10, 2021
Slide 1: Q4 2020 Earnings Presentation
Q4 2020 Earnings Presentation FEBRUARY 10, 2021 1
Slide 2: Safe Harbor
SAFE HARBOR The company’s guidance with respect to anticipated financial results for future periods, potential future growth and profitability, future business mix, expectations regarding future market trends, future performance within specific markets and other statements herein or made on the conf
Slide 3: Key Messages
KEY MESSAGES • Strong Q4 revenue, earnings, and cash flow • Record financial performance and strong execution in 2020 • Pure Play Power strategy drives growth faster than our markets • Accelerated R&D investments resulted in record pace of new product introductions and design wins • On track to meet
Slide 4: Strong Finish to a Record 2020
STRONG FINISH TO A RECORD 2020 • Q4 2020 results at high end of guidance ranges • Revenue of $371 million and non-GAAP(1) earnings of $1.49 per share • Strong operating cash flow of $67.1 million • Strong demand and good execution in dynamic operating environment • Delivered record results in 2020 a
Slide 5: Strong Cadence of New Products Introduced in 2020
STRONG CADENCE OF NEW PRODUCTS INTRODUCED IN 2020 eVoSTM LE: Beyond RF OCP ORv3 Power Shelf: BDQ1300: Isolated DC-DC for Next Gen Etch/Dep for 48V Data Center Converters for 48V Telecom and Computing Navigator® II FCi: Ascent® MS: 5-Output iTSTM + iHPSTM: Intelligent High-Speed Solid-State DC Power
Slide 6: Solid Performance in All Four Market Verticals
SOLID PERFORMANCE IN ALL FOUR MARKET VERTICALS SEMICONDUCTOR INDUSTRIAL & DATA CENTER TELECOM & EQUIPMENT MEDICAL COMPUTING NETWORKING $166M, up 32% YoY $94M, down 3% YoY $65M, down 16% YoY $46M, up 20% YoY • At high-end of 2H target on • Up 8% QoQ on strong thin film • Industry digestion following
Slide 7: Q4 2020 Financial Highlights
Q4 2020 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW $371 million 39.5% $67.1 million Up 9.7% YoY Up 360 bps YoY Up $48 million YoY NON-GAAP EPS(1) NON-GAAP OP MARGIN(1) TOTAL CASH $1.49 18.7% $483 million Up 71% YoY Up 590 bps YoY Up $134 million YoY (1) Non-GAAP measur
Slide 8: Aspirational Goals and Long-Term Vision
ASPIRATIONAL GOALS AND LONG-TERM VISION 3-YEAR LONG TERM FISCAL 2020 ASPIRATIONAL VISION RESULTS GOALS (6-8 YEARS) Revenue $1.42B $1.65B $2.50B Non-GAAP EPS(1) $5.23 $7.50 $12.00 ROIC(2) 23% 23% 20% (1) Non-GAAP financial measures can be found at the back of this presentation (2) ROIC calculated as
Slide 9: Q4 Revenue by Markets
Q4 REVENUE BY MARKETS (figures in $ thousands) Q4 2020 Q3 2020 Q4 2019 Q/Q Y/Y Semiconductor Equipment $165,757 $167,058 $125,108 -0.8% 32.5% Industrial & Medical $93,769 $87,013 $96,736 7.8% -3.1% Data Center Computing $65,299 $87,741 $77,940 -25.6% -16.2% Telecom & Networking $46,144 $47,709 $38,4
Slide 10: 2020 Revenue by Markets
2020 REVENUE BY MARKETS As Pro Forma(1) Reported (figures in $ thousands) (figures in $ thousands) 2020 2020 2019 2019 Y/Y Y/Y Semiconductor Semiconductor Equipment Equipment $611,864 $611,864 $403,018 $408,404 51.8% 49.8% Industrial & Medical$313,646 Industrial & Medical $313,646 $245,992 $377,277
Slide 11: Q4 2020 Income Statement
Q4 2020 INCOME STATEMENT (figures in $ millions, except percentage & EPS) Q4 2020 Q3 2020 Q4 2019 Q/Q Y/Y Revenue $371.0 $389.5 $339.3 -4.8% 9.3% GAAP gross margin 39.2% 39.5% 33.2% GAAP operating expenses $89.8 $94.8 $90.1 -5.3% -0.4% GAAP operating margin from 15.0% 15.1% 6.5% continuing ops GAAP
Slide 12: 2020 Income Statement
2020 INCOME STATEMENT (figures in $ millions, except percentage & EPS) 2020 2019 Y/Y Revenue $1,415.8 $788.9 79.5% GAAP gross margin 38.3% 40.0% GAAP operating expenses $365.8 $261.3 40.0% GAAP operating margin from continuing ops 12.4% 7.0% GAAP EPS from continuing ops $3.51 $1.47 138.8% Non-GAAP*
Slide 13: Q4 2020 Balance Sheet & Cash Flow
Q4 2020 BALANCE SHEET & CASH FLOW (figures in $ millions) Q4 2020 Q3 2020 Q4 2019 • Cash and investments rose by $51 million Cash & $483.0 $431.6 $349.1 • Receivables decreased to $235 million Investments • DSO increased by 2 days to 57 days Accounts $235.2 $240.1 $246.6 Receivable • Inventory decre
Slide 14: Q1 2021 Guidance
Q1 2021 GUIDANCE Q1 2021 Revenue $350M +/- $15M GAAP EPS from continuing operations $1.02 +/- $0.15 Non-GAAP* EPS $1.25 +/- $0.15 * non-GAAP measures exclude the impact of non-cash related charges such as stock-based compensation, amortization of intangible assets and unrealized foreign exchange gai
Slide 15: 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, amortization of intangible assets, and unrealized foreign exchange gain or loss on long-term facility lease and pension obligations, as well as discontinued operatio
Slide 16: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Reconciliation of Non-GAAP Reconciliation of Non-GAAP measure measure - operating expenses and - income excluding certain items Three Months Ended Year Ended operating income, excluding December 31, September 30, December 31, certain items Three Months Ended Year Ended 2020 2
Slide 17: Reconciliation of Q1 2021 Guidance
RECONCILIATION OF Q1 2021 GUIDANCE Low End High End Revenue $335M - $365M Reconciliation of non-GAAP* earnings per share GAAP earnings per share $0.87 - $1.17 Stock-based compensation $0.08 - $0.08 Amortization of intangible assets $0.13 - $0.13 Restructuring and other $0.05 - $0.05 Tax effects of e
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