Advanced Energy Industries Inc 8-K, filed Oct 31, 2023

About this 8-K

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Advanced Energy Industries Inc (AEIS)

8-K 2023-10-31 For: 2023-10-31

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Added on April 11, 2026

Advanced Energy Industries Inc filed this 8-K on October 31, 2023.

Q4 2023

$405 million +/- $15 million

GAAP EPS from continuing operations

$0.69 +/- $0.20

Non-GAAP EPS

$1.15 +/- $0.20

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware		000-26966		84-0846841
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)


1595 Wynkoop Street, Suite 800, Denver, Colorado		80202
(Address of principal executive offices)		(Zip Code)

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	AEIS	Nasdaq Global Select Market


Exhibit Number		Description

99.1		Advanced Energy press release dated October 31, 2023 reporting financial results for the quarter ended September 30, 2023

104		The cover page from Advanced Energy Industries, Inc. Current Report on Form 8-K, formatted in Inline XBRL




	/s/ Paul Oldham
Date: October 31, 2023	Paul Oldham
	Chief Financial Officer & Executive Vice President


	Three Months Ended									Nine Months Ended
	September 30,						June 30,			September 30,
	2023			2022			2023			2023			2022
Sales, net	$	409,991		$	516,274		$	415,508		$	1,250,539		$	1,354,682
Cost of sales		262,650			325,056			268,428			801,007			856,990
Gross profit		147,341			191,218			147,080			449,532			497,692
Gross margin %		35.9	%		37.0	%		35.4	%		35.9	%		36.7	%

Operating expenses:
Research and development		50,391			49,760			51,413			153,414			141,383
Selling, general, and administrative		55,131			56,716			55,613			166,102			161,056
Amortization of intangible assets		7,049			7,049			7,075			21,186			19,081
Restructuring		4,709			121			3,154			8,906			1,178
Total operating expenses		117,280			113,646			117,255			349,608			322,698
Operating income		30,061			77,572			29,825			99,924			174,994

Other income (expense), net		4,464			8,940			2,425			6,339			11,347
Income from continuing operations, before income tax		34,525			86,512			32,250			106,263			186,341
Provision for income tax		874			11,639			4,795			13,405			29,795
Income from continuing operations		33,651			74,873			27,455			92,858			156,546
Loss from discontinued operations, net of income tax		(930)			(697)			(315)			(2,076)			(615)
Net income		32,721			74,176			27,140			90,782			155,931
Income from continuing operations attributable to noncontrolling interest		—			9			—			—			16
Net income attributable to Advanced Energy Industries, Inc.	$	32,721		$	74,167		$	27,140		$	90,782		$	155,915

Basic weighted-average common shares outstanding		37,575			37,379			37,573			37,541			37,482
Diluted weighted-average common shares outstanding		37,854			37,630			37,803			37,842			37,725

Earnings per share attributable to Advanced Energy Industries, Inc:

Continuing operations:
Basic earnings per share	$	0.90		$	2.00		$	0.73		$	2.47		$	4.18
Diluted earnings per share	$	0.89		$	1.99		$	0.73		$	2.45		$	4.15

Discontinued operations:
Basic loss per share	$	(0.02)		$	(0.02)		$	(0.01)		$	(0.06)		$	(0.02)
Diluted loss per share	$	(0.02)		$	(0.02)		$	(0.01)		$	(0.05)		$	(0.02)

Net income:
Basic earnings per share	$	0.87		$	1.98		$	0.72		$	2.42		$	4.16
Diluted earnings per share	$	0.86		$	1.97		$	0.72		$	2.40		$	4.13


	September 30,		December 31,
		2023		2022
ASSETS
Current assets:
Cash and cash equivalents	$	985,931	$	458,818
Accounts and other receivables, net		270,348		300,683
Inventories		364,003		376,012
Other current assets		53,191		53,001
Total current assets		1,673,473		1,188,514

Property and equipment, net		161,671		148,462
Operating lease right-of-use assets		98,591		100,177
Other assets		110,027		84,056
Goodwill and intangible assets, net		449,924		470,959
Total assets	$	2,493,686	$	1,992,168

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	140,320	$	170,467
Other accrued expenses		137,015		185,805
Current portion of long-term debt		20,000		20,000
Current portion of operating lease liabilities		17,477		16,771
Total current liabilities		314,812		393,043

Long-term debt		899,848		353,262
Other long-term liabilities		178,155		179,596
Long-term liabilities		1,078,003		532,858

Total liabilities		1,392,815		925,901

Total stockholders' equity		1,100,871		1,066,267
Total liabilities and stockholders’ equity	$	2,493,686	$	1,992,168


	Nine Months Ended September 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	90,782	$	155,931
Less: loss from discontinued operations, net of income tax		(2,076)		(615)
Income from continuing operations, net of income tax		92,858		156,546

Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		49,764		44,433
Stock-based compensation		22,813		15,008
Benefit for deferred income tax		(996)		(2,496)
Loss on disposal and sale of assets		394		(4,058)
Changes in operating assets and liabilities, net of assets acquired		(36,593)		(96,451)
Net cash from operating activities from continuing operations		128,240		112,982
Net cash from operating activities from discontinued operations		(3,307)		(81)
Net cash from operating activities		124,933		112,901

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments		(3,447)		—
Purchases of property and equipment		(46,782)		(39,507)
Acquisitions, net of cash acquired		—		(145,779)
Net cash from investing activities		(50,229)		(185,286)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term borrowings		575,000		—
Payment of fees for long-term borrowings		(12,985)		—
Payments on long-term borrowings		(15,000)		(15,000)
Dividend payments		(11,422)		(11,407)
Payment for purchase of note hedges		(115,000)		—
Proceeds from sale of warrants		74,865		—
Purchase and retirement of common stock		(40,000)		(25,955)
Net payments related to stock-based awards		(1,254)		(1,411)
Net cash from financing activities		454,204		(53,773)

EFFECT OF CURRENCY TRANSLATION ON CASH		(1,795)		(9,161)

NET CHANGE IN CASH AND CASH EQUIVALENTS		527,113		(135,319)
CASH AND CASH EQUIVALENTS, beginning of period		458,818		544,372
CASH AND CASH EQUIVALENTS, end of period	$	985,931	$	409,053


Net Sales by Market	Three Months Ended						Nine Months Ended
	September 30,				June 30,		September 30,
	2023		2022		2023		2023		2022
Semiconductor Equipment	$	185,033	$	266,600	$	173,177	$	552,419	$	698,354
Industrial and Medical		115,226		119,587		127,603		365,849		307,436
Data Center Computing		68,286		87,542		59,076		187,021		232,941
Telecom and Networking		41,446		42,545		55,652		145,250		115,951
Total	$	409,991	$	516,274	$	415,508	$	1,250,539	$	1,354,682


Net Sales by Geographic Region	Three Months Ended						Nine Months Ended
	September 30,				June 30,		September 30,
	2023		2022		2023		2023		2022
North America	$	184,783	$	238,115	$	171,516	$	537,241	$	626,953
Asia		178,190		215,401		186,498		543,871		557,629
Europe		46,088		61,456		56,213		164,867		157,972
Other		930		1,302		1,281		4,560		12,128
Total	$	409,991	$	516,274	$	415,508	$	1,250,539	$	1,354,682


Reconciliation of Non-GAAP measure - operating expenses and operating income, excluding certain items	Three Months Ended						Nine Months Ended
	September 30,				June 30,		September 30,
	2023		2022		2023		2023		2022
Gross profit from continuing operations, as reported	$	147,341	$	191,218	$	147,080	$	449,532	$	497,692
Adjustments to gross profit:
Stock-based compensation		615		454		589		1,587		1,087
Facility expansion, relocation costs and other		171		1,662		60		1,188		4,133
Acquisition-related costs		44		66		97		194		(372)
Non-GAAP gross profit		148,171		193,400		147,826		452,501		502,540
Non-GAAP gross margin		36.1%		37.5%		35.6%		36.2%		37.1%

Operating expenses from continuing operations, as reported		117,280		113,646		117,255		349,608		322,698
Adjustments:
Amortization of intangible assets		(7,049)		(7,049)		(7,075)		(21,186)		(19,081)
Stock-based compensation		(7,460)		(5,568)		(7,348)		(21,226)		(13,921)
Acquisition-related costs		(611)		(1,150)		(1,165)		(2,654)		(6,977)
Restructuring and other		(4,898)		(121)		(3,154)		(9,095)		(1,178)
Non-GAAP operating expenses		97,262		99,758		98,513		295,447		281,541
Non-GAAP operating income	$	50,909	$	93,642	$	49,313	$	157,054	$	220,999
Non-GAAP operating margin		12.4%		18.1%		11.9%		12.6%		16.3%


Reconciliation of Non-GAAP measure - income excluding certain items	Three Months Ended						Nine Months Ended
	September 30,				June 30,		September 30,
	2023		2022		2023		2023		2022
Income from continuing operations, less non-controlling interest, net of income tax	$	33,651	$	74,864	$	27,455	$	92,858	$	156,530
Adjustments:
Amortization of intangible assets		7,049		7,049		7,075		21,186		19,081
Acquisition-related costs		655		1,216		1,262		2,848		6,605
Facility expansion, relocation costs, and other		171		1,662		60		1,188		4,133
Restructuring and other		4,898		121		3,154		9,095		1,178
Unrealized foreign currency gain		(1,604)		(6,169)		(2,266)		(2,817)		(13,023)
Acquisition-related costs and other included in other income (expense), net		(1,516)		(4,685)		—		(1,516)		(4,600)
Tax effect of non-GAAP adjustments		(1,101)		855		(1,051)		(3,273)		(966)
Non-GAAP income, net of income tax, excluding stock-based compensation		42,203		74,913		35,689		119,569		168,938
Stock-based compensation, net of tax		6,299		4,697		6,191		17,794		11,668
Non-GAAP income, net of income tax	$	48,502	$	79,610	$	41,880	$	137,363	$	180,606


Reconciliation of non-GAAP measure - per share earnings excluding certain items	Three Months Ended						Nine Months Ended
	September 30,				June 30,		September 30,
	2023		2022		2023		2023		2022
Diluted earnings per share from continuing operations, as reported	$	0.89	$	1.99	$	0.73	$	2.45	$	4.15
Add back:
Per share impact of non-GAAP adjustments, net of tax		0.39		0.13		0.38		1.18		0.64
Non-GAAP earnings per share	$	1.28	$	2.12	$	1.11	$	3.63	$	4.79


Reconciliation of Q4 2023 Guidance
	Low End		High End

Revenue	$390 million		$420 million

Reconciliation of non-GAAP earnings per share
GAAP earnings per share	$	0.49	$	0.89
Stock-based compensation		0.20		0.20
Amortization of intangible assets		0.19		0.19
Restructuring and other		0.17		0.17
Tax effects of excluded items		(0.10)		(0.10)
Non-GAAP earnings per share	$	0.95	$	1.35