Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q1 2020 Earnings Presentation
15 slides from Advanced Energy Industries's earnings presentation, May 6, 2020
Slide 1: Q1 2020 Earnings Presentation
Q1 2020 Earnings Presentation MAY 6, 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 • A strong quarter despite the extraordinary and challenging time • Q1 revenue of $315.5 million, above guidance midpoint • Q1 non-GAAP(1) earnings per share of $0.91, at higher end of a widened guidance range • Ended the quarter with strengthened financial positions • Early responses t
Slide 4: COVID-19 Responses and Update
COVID-19 RESPONSES AND UPDATE • Our top priority is on the well-being of our employees and communities • Recognized crisis early; our executive-led Rapid Response Team took actions to protect health and safety • Safety protocols, protective equipment, separation structures and methods that are above
Slide 5: Our Position of Strength
OUR POSITION OF STRENGTH • Well capitalized balance sheet with increased cash and reduced debt AE • Increased positive net cash with covenants based on net multiples Distribution Operating & Channel Model • Plenty of liquidity with a $150 million unused line of credit • Interest rate SWAP agreement
Slide 6: Performance Across Our Market Verticals
PERFORMANCE ACROSS OUR MARKET VERTICALS SEMICONDUCTOR INDUSTRIAL & DATA CENTER TELECOM & EQUIPMENT MEDICAL COMPUTING NETWORKING $134M, up 7% QoQ $62M, down 36% QoQ $86M, up 11% QoQ $34M, down 13% QoQ • Semi product revenue grew • Product transition by a large • Hyperscale demand • Telecom carriers d
Slide 7: Confident on Our Long-Term Aspirational Goals
CONFIDENT ON 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 generation,
Slide 8: Q1 Revenue by Markets
Q1 REVENUE BY MARKETS ACTUAL RESULTS PRO FORMA GROWTH RATES GROWTH RATES(1) (figures in $thousands) Q1 2020 Q4 2019 Q1 2019 Q/Q Y/Y Q/Q Y/Y Semiconductor Equipment $133,625 $125,108 $91,437 6.8% 46.1% 6.8% 42.7% Industrial & Medical $61,979 $96,736 $49,306 -35.9% 25.7% -35.9% -31.6% Data Center Comp
Slide 9: Q1 Revenue by Markets – Organic
Q1 REVENUE BY MARKETS – ORGANIC(1) (figures in $thousands) Q1 2020 Q4 2019 Q1 2019 Q/Q Y/Y Semiconductor Equipment $131,979 $122,717 $91,437 7.5% 44.3% Industrial & Medical $29,557 $36,158 $49,306 -18.3% -40.1% Total Revenue $161,536 $158,875 $140,743 1.7% 14.8% (1) Revenue comparisons on an organic
Slide 10: Q1 2020 Income Statement
Q1 2020 INCOME STATEMENT (figures in $millions, except percentage & EPS) Q1 2020 Q4 2019 Q1 2019 Q/Q Y/Y Revenue $315.5 $338.3 $140.7 -6.7% 124.1% GAAP gross margin 35.6% 33.2% 46.7% GAAP operating expenses $86.4 $90.1 $53.9 -4.1% 60.2% GAAP operating margin from 8.2% 6.6% 8.4% continuing ops GAAP E
Slide 11: Q1 2020 Balance Sheet & Cash Flow
Q1 2020 BALANCE SHEET & CASH FLOW (figures in $millions) Q1 2020 Q4 2019 • Cash and securities rose to $355.0 million Cash & $355.0 $349.1 Investments • Operating cash flow from continuing operations was $28.9 million Accounts $214.4 $246.6 Receivable • Total debt at $334.8 million Inventory $235.3
Slide 12: Q2 2020 Guidance
Q2 2020 GUIDANCE Q2 2020 Revenue $315M +/- 30M GAAP EPS from continuing operations $0.53 +/- $0.30 Non-GAAP* EPS $0.80 +/- $0.30 *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 Copyright
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 and amortization of intangible assets, as well as discontinued operations, and non-recurring items such as acquisition-related costs and restructuring expenses. The n
Slide 14: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Reconciliation of Non-GAAP measure - operating expenses and Reconciliation of Non-GAAP measure - income excluding certain operating income, excluding certain items Three Months Ended items Three Months Ended March 31, December 31, March 31, December 31, 2020 2019 2019 2020 20
Slide 15: Reconciliation of Q2 2020 Guidance
RECONCILIATION OF Q2 2020 GUIDANCE Low End High End Revenue $285M - $345M Reconciliation of non-GAAP* earnings per share GAAP earnings per share $0.23 - $0.83 Stock-based compensation $0.07 - $0.07 Amortization of intangible assets $0.14 - $0.14 Restructuring and other $0.10 - $0.10 Tax effects of e
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