Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q3 2024 Earnings Presentation
13 slides from Advanced Energy Industries's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation OCTOBER 30, 2024 1
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
Slide 3: Q3 2024 Summary
Q3 2024 SUMMARY • Q3 2024 revenue and EPS both exceeded the midpoint of guidance ‒ Revenue of $374 million was up 3% Q/Q led by strength in Semiconductor and Data Center Computing ‒ Captured incremental demand in Semiconductor, which reached its highest levels since Q4 2022 ‒ Gross margin improvemen
Slide 4: Q3 2024 Revenue Detail by Market
Q3 2024 REVENUE DETAIL BY MARKET INDUSTRIAL & MEDICAL Down 3% Q/Q & 33% Y/Y ($ in millions) • Direct customers and the channel continue to work through excess inventories $77M • Resales were solid and nearly 20% higher than SEMICONDUCTOR EQUIPMENT trough resales in Q1 2024 Q3 2024 • If resales trend
Slide 5: Q3 2024 Financial Highlights
Q3 2024 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) $374 million 36.3% $35 million Up 3% Q/Q Up 100 bps Q/Q NON-GAAP EPS(1) NON-GAAP OP MARGIN(1) TOTAL CASH(3) $0.98 10.5% $657 million Up 15% Q/Q Up 120 bps Q/Q Net Cash of $93 million (1) Detailed explanations of non
Slide 6: Revenue by Market
REVENUE BY MARKET ($ in millions) Q3 2024 Q2 2024 Q3 2023 Q/Q Y/Y Semiconductor Equipment $197.4 $188.3 $185.0 4.8% 6.7% Industrial & Medical $77.0 $79.1 $115.2 -2.7% -33.2% Data Center Computing $80.7 $73.0 $68.3 10.5% 18.1% Telecom & Networking $19.2 $24.6 $41.4 -21.7% -53.6% Total Revenue $374.2
Slide 7: Income Statement (GAAP/Non-GAAP)
INCOME STATEMENT (GAAP/NON-GAAP) ($ in millions, except per share data) Q3 2024 Q2 2024 Q3 2023 Q/Q Y/Y Revenue $374.2 $364.9 $410.0 2.5% -8.7% GAAP gross margin 35.8% 35.0% 35.9% GAAP operating expenses $145.1 $114.8 $117.3 26.4% 23.7% GAAP operating margin from continuing ops -3.0% 3.6% 7.3% GAAP
Slide 8: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW ($ in millions) Q3 2024 Q2 2024 Q3 2023 Cash $657.3 $986.1 $985.9 • Total Cash declined Q/Q to $657 million ‒ Paid down $345 million of term loan Inventories $377.7 $383.1 $364.0 ‒ Increased revolver from $200 million to $600 million ‒ Net cash(1) at $93 million Accounts Re
Slide 9: Q4 2024 Guidance
Q4 2024 GUIDANCE ($ in m illions, except per share data) Guidance Revenue $392 +/- $20 GAAP EPS from continuing operations $0.47 +/- $0.29 Non-GAAP(1) EPS $1.08 +/- $0.25 (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of th
Slide 10: Quarterly Non-GAAP Financials
QUARTERLY NON-GAAP FINANCIALS(1) Quarterly Trend (figures in $ millions, except percentage and EPS) All figures from Continuing Operations 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue 397.5 440.9 516.3 490.7 425.0 415.5 410.0 405.3 327.5 364.9 374.2
Slide 11: 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 long-term unrealized foreign exchange gains and losses. In addition, we exclude discontinued operations and other non- recurr
Slide 12: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Copyright © 2024 Advanced Energy 12
Slide 13: Q4 2024 Reconciliation of GAAP to Non-GAAP Guidance
Q4 2024 RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE ($ in m illions, except per share data) Low End High End Revenue $372 $412 Reconciliation of Non-GAAP EPS GAAP EPS $ 0.18 $ 0.76 Stock-based compensation 0.31 0.30 Amortization of intangible assets 0.19 0.18 Restructuring and other 0.29 0.21 Tax ef
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