Advanced Energy Industries, Inc. · NASDAQ:AEIS

Advanced Energy Industries — Q4 2023 Earnings Presentation

14 slides from Advanced Energy Industries's earnings presentation, Feb 6, 2024

  1. Slide 1: Q4 2023 Earnings Presentation

    Q4 2023 Earnings Presentation FEBRUARY 6, 2024 1

  2. Slide 2: Safe Harbor

    SAFE HARBOR The company’s guidance and other statements herein or made on the earnings conference call contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Ac

  3. Slide 3: Q4 and Full Year 2023 Summary

    Q4 AND FULL YEAR 2023 SUMMARY • Good execution in Q4 and full year 2023 ‒ Q4 revenue of $405 million at midpoint of guidance; non-GAAP(1) EPS of $1.24 surpassed midpoint of guidance ‒ Delivered record operating cash flow of $213 million in 2023 and a record $85 million in Q4 2023 ‒ 2023 benefited fr

  4. Slide 4: Q4 2023 Revenue Detail by Market

    Q4 2023 REVENUE DETAIL BY MARKET ($ in millions) INDUSTRIAL & MEDICAL Down 6% Q/Q & Down 9% Y/Y SEMICONDUCTOR EQUIPMENT $109M • Revenue down Q/Q as production of new Q4 2023 designs partially offset macro headwinds Up 3% Q/Q & Down 18% Y/Y Total Revenue • Launched NeoPower family of configurable PSU

  5. Slide 5: Q4 2023 Financial Highlights

    Q4 2023 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) $405 million 35.7% $85 million Down 1% Q/Q Down 40 bps Q/Q Record & Up 16% Q/Q NON-GAAP EPS(1) NON-GAAP OP MARGIN(1) TOTAL CASH(3) $1.24 12.3% $1.045 billion Down 3% Q/Q Down 10 bps Q/Q Net Cash of $129 million (1)

  6. Slide 6: Quarterly Revenue and Backlog Trends

    QUARTERLY REVENUE AND BACKLOG TRENDS $1,200 $1,000 $800 $ in millions $600 Backlog Revenue $400 About One Quarter of Revenue Going Forward $200 $0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 • Backlog at the end of Q4 2023 returned to normalized range of $407 million, dow

  7. Slide 7: Q4 and 2023 Revenue by Market

    Q4 AND 2023 REVENUE BY MARKET ($ in millions) Q4 2023 Q3 2023 Q4 2022 Q/Q Y/Y 2023 2022 Y/Y Semiconductor Equipment $191.4 $185.0 $232.5 3.4% -17.7% $743.8 $930.8 -20.1% Industrial & Medical $108.6 $115.2 $119.3 -5.8% -9.0% $474.4 $426.8 11.2% Data Center Computing $62.9 $68.3 $94.5 -8.0% -33.5% $24

  8. Slide 8: Income Statements

    INCOME STATEMENTS ($ in millions, except per share data) Q4 2023 Q3 2023 Q4 2022 Q/Q Y/Y 2023 2022 Y/Y Revenue $405.3 $410.0 $490.7 -1.2% -17.4% $1,655.8 $1,845.4 -10.3% GAAP gross margin 35.3% 35.9% 36.2% 35.8% 36.6% - GAAP operating expenses $129.1 $117.3 $119.7 10.1% 7.8% $478.7 $442.4 8.2% GAAP

  9. Slide 9: Balance Sheet & Cash Flow

    BALANCE SHEET & CASH FLOW ($ in millions) Q4 2023 Q3 2023 Q4 2022 • Total Cash up Q/Q to $1,045 million Cash $1,044.7 $986.1 $460.9 ‒ Net cash(1) up Q/Q to $129 million Inventories $336.1 $364.0 $376.0 • Inventory Turns improved Q/Q from 2.9x to 3.1x ‒ Days inventory improved Q/Q from 125 days to 11

  10. Slide 10: Q1 2024 Guidance

    Q1 2024 GUIDANCE ($ in millions, except per share data) Guidance Revenue $350 +/- $15 GAAP EPS from continuing operations $0.29 +/- $0.20 Non-GAAP(1) EPS $0.70 +/- $0.20 (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of thi

  11. Slide 11: Quarterly Non-GAAP Financials

    QUARTERLY NON-GAAP FINANCIALS(1) Quarterly Trend All figures from Continuing Operations (figures in $ millions, except percentage and EPS) 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Backlog 405.7 534.7 771.4 927.8 1,012.4 1,166.5 1,093.0 875.3 755

  12. Slide 12: 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

  13. Slide 13: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Copyright © 2024 Advanced Energy 13

  14. Slide 14: Q1 2024 Reconciliation of GAAP to Non-GAAP Guidance

    Q1 2024 RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE ($ in millions, except per share data) Low End Midpoint High End Revenue $335 $350 $365 Reconciliation of Non-GAAP EPS GAAP EPS $ 0.09 $ 0.29 $ 0.49 Stock-based compensation 0.24 0.24 0.24 Amortization of intangible assets 0.19 0.19 0.19 Restructur

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