Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q3 2020 Earnings Presentation
15 slides from Advanced Energy Industries's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 Earnings Presentation
Q3 2020 Earnings Presentation NOVEMBER 5, 2020 Copyright © 2020 Advanced Energy 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 • Record revenue, earnings, and cash flow on strong execution • Solid demand as we continue to grow faster than our markets • Pure Play Power strategy drives leadership, innovation and synergies • Artesyn integration progressing ahead of plan with record accretion • We expect to continu
Slide 4: Solid Execution to Meet Strong Demand
SOLID EXECUTION TO MEET STRONG DEMAND • Q3 2020 results above high ends of guidance ranges • Record revenue of $390 million and non-GAAP(1) earnings of $1.66 per share • Record operating cash flow of $67.5 million • Strong demand drove sequential revenue growth across all four markets • Growing fast
Slide 5: Sequential Growth in All Four Market Verticals
SEQUENTIAL GROWTH IN ALL FOUR MARKET VERTICALS SEMICONDUCTOR INDUSTRIAL & DATA CENTER TELECOM & EQUIPMENT MEDICAL COMPUTING NETWORKING $167M, up 15% QoQ $87M, up 23% QoQ $88M, up 5% QoQ $48M, up 18.5% QoQ • Outgrowing WFE and our peers • Modest improvement in the • Revenue up 91% YoY(1) and • Market
Slide 6: Q3 Results Validate Our Long-Term Aspirational Goals
Q3 RESULTS VALIDATE OUR LONG-TERM ASPIRATIONAL GOALS Generate & Deploy Cash Aspirational Goals(1) : Grow & Diversify • Revenue: > $1.5B • Non-GAAP EPS(2) : > $6.50 • ROIC(3) : > 23% (1) Please note that hypothetical scenarios regarding revenue growth, EBITDA, EPS, (GAAP or non-GAAP), ROIC, cash gene
Slide 7: Q3 2020 Financial Highlights
Q3 2020 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW $390 million 39.8% $67.5 million Up 14.6% QoQ Up 110bps QoQ Record high NON-GAAP EPS(1) NON-GAAP OP MARGIN(1) TOTAL CASH $1.66 19.5% $432 million Up 41% QoQ Up 370bps QoQ Up $48 million QoQ (1) non-GAAP measures exclud
Slide 8: Q3 Revenue by Markets
Q3 REVENUE BY MARKETS ACTUAL RESULTS PRO FORMA GROWTH RATES GROWTH RATES(1) (figures in $ thousands) Q3 2020 Q2 2020 Q3 2019 Q/Q Y/Y Q/Q Y/Y Semiconductor Equipment $167,058 $145,424 $96,426 14.9% 73.2% 14.9% 70.4% Industrial & Medical $87,013 $70,886 $55,187 22.8% 57.7% 22.8% -10.7% Data Center Com
Slide 9: Q3 Revenue by Markets – Organic
Q3 REVENUE BY MARKETS – ORGANIC(1) (figures in $ thousands) Q3 2020 Q2 2020 Q3 2019 Q/Q Y/Y Semiconductor Equipment $166,120 $144,226 $95,468 15.2% 74.0% Industrial & Medical $34,596 $35,864 $38,751 -3.5% -10.7% Total Revenue $200,716 $180,090 $134,219 11.5% 49.5% (1) Revenue comparisons on an organ
Slide 10: Q3 2020 Income Statement
Q3 2020 INCOME STATEMENT (figures in $ millions, except percentage & EPS) Q3 2020 Q2 2020 Q3 2019 Q/Q Y/Y Revenue $389.5 $339.9 $175.1 14.6% 122.4% GAAP gross margin 39.5% 38.3% 42.0% GAAP operating expenses $94.8 $94.8 $64.1 0.0% 47.9% GAAP operating margin from 15.1% 10.4% 5.4% continuing ops GAAP
Slide 11: Q3 2020 Balance Sheet & Cash Flow
Q3 2020 BALANCE SHEET & CASH FLOW (figures in $ millions) Q3 2020 Q2 2020 Q4 2019 • Cash and investments rose by $48.2 million Cash & • Receivables increased to $240.1 million $431.6 $383.4 $349.1 Investments • DSO improved 7 days to 55 days Accounts $240.1 $235.6 $246.6 • Inventory decreased to $25
Slide 12: Q4 2020 Guidance
Q4 2020 GUIDANCE Q4 2020 Revenue $360M +/- $20M GAAP EPS from continuing operations $1.03 +/- $0.21 Non-GAAP* EPS $1.30 +/- $0.20 * 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 13: 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 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Reconciliation of Non-GAAP measure - income excluding certain items Three Months Ended Nine Months Ended September 30, June 30, September 30, 2020 2019 2020 2020 2019 Reconciliation of Non-GAAP measure Income from continuing operations, less - operating expenses and operating
Slide 15: Reconciliation of Q4 2020 Guidance
RECONCILIATION OF Q4 2020 GUIDANCE Low End High End Revenue $340M - $380M Reconciliation of non-GAAP* earnings per share GAAP earnings per share $0.82 - $1.24 Stock-based compensation $0.08 - $0.08 Amortization of intangible assets $0.13 - $0.13 Restructuring and other $0.11 - $0.09 Tax effects of e
Advanced Energy Industries — Q3 2020 Earnings Presentation on 6ix