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Advanced Energy Announces Fourth Quarter Results

This release includes GAAP and non-GAAP operating income and per share earnings data. These non-GAAP measures are not in accordance with, or an alternative for, similar measures calculated under generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Advanced Energy believes that these non-GAAP measures provide useful information to management and investors regarding financial and business trends relating to its financial condition and results of operations. Additionally, the company believes that these non-GAAP measures, in combination with its financial results calculated in accordance with GAAP, provides investors with additional perspective. While some of these excluded items may be incurred and reflected in the company's GAAP financial results in the foreseeable future, the company believes that the items excluded from certain non-GAAP measures do not accurately reflect the underlying performance of its continuing operations for the period in which they are incurred. The use of non-GAAP measures has limitations in that they do not reflect all of the amounts associated with its results of operations as determined in accordance with GAAP and these measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.

For additional information on the items excluded from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

Forward-Looking Statements

The company's expectations with respect to guidance to financial results for the first quarter ending March 31, 2013, anticipated cost savings, market performance, future charges and other statements that are not historical information are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: the effects of global macroeconomic conditions upon demand for our products, the volatility and cyclicality of the industries the company serves, particularly the semiconductor industry, the continuation of RPS (renewable portfolio standards), the timing and availability of incentives and grant programs in North America and Europe related to the renewable energy market, renewable energy project delays resulting from solar panel price declines and increased competition in the solar inverter equipment market, the timing of orders received from customers, the company's ability to realize benefits from cost improvement efforts including avoided costs, any restructuring plans and any inorganic growth, the ability to obtain materials and manufacture products, and unanticipated changes to management's estimates, reserves or allowances. These and other risks are described in Advanced Energy's Form 10-K, Forms 10-Q and other reports and statements filed with the Securities and Exchange Commission. These reports and statements are available on the SEC's website at www.sec.gov. Copies may also be obtained from Advanced Energy's website at www.advancedenergy.com or by contacting Advanced Energy's investor relations at 970-407-6555. Forward-looking statements are made and based on information available to the company on the date of this press release. The company assumes no obligation to update the information in this press release.

 
ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
  Three Months Ended  Year Ended
  December 31, September 30, December 31,
  2012 2011 2012 2012 2011
           
SALES  $ 112,971  $ 112,495  $ 117,515  $ 451,931  $ 516,799
COST OF SALES  74,425  73,607  71,788  284,185  311,642
GROSS PROFIT  38,546  38,888  45,727  167,746  205,157
  34.1% 34.6% 38.9% 37.1% 39.7%
OPERATING EXPENSES:          
Research and development  13,895  14,393  14,564  58,076  64,984
Selling, general and administrative  15,556  22,343  16,806  69,127  79,722
Restructuring charges  2,039  4,229  3,003  7,473  7,348
Amortization of intangible assets  1,557  1,021  1,416  5,696  3,852
Total operating expenses  33,047  41,986  35,789  140,372  155,906
           
Operating income (loss)  5,499  (3,098)  9,938  27,374  49,251
Other income, net  181  721  65  2,432  1,217
Income (loss) from continuing operations before income taxes  5,680  (2,377)  10,003  29,806  50,468
Provision for income taxes  806  218  4,268  9,630  13,614
INCOME (LOSS) FROM CONTINUING OPERATIONS, NET OF INCOME TAXES  4,874  (2,595)  5,735  20,176  36,854
Income (loss) from discontinued operations, net of income taxes  (25)  (175)  --  405  (540)
NET INCOME (LOSS)  $ 4,849  $ (2,770)  $ 5,735  $ 20,581  $ 36,314
           
Basic weighted-average common shares outstanding 37,955 43,465 37,807 38,879 43,465
Diluted weighted-average common shares outstanding 38,484 43,954 38,330 39,447 43,954
           
EARNINGS PER SHARE:          
CONTINUING OPERATIONS:          
BASIC EARNINGS (LOSS) PER SHARE  $ 0.13  $ (0.06)  $ 0.15  $ 0.52  $ 0.85
DILUTED EARNINGS (LOSS) PER SHARE  $ 0.13  $ (0.06)  $ 0.15  $ 0.51  $ 0.84
           
DISCONTINUED OPERATIONS          
BASIC EARNINGS (LOSS) PER SHARE  $ 0.00  $ (0.00)  $ 0.00  $ 0.01  $ (0.01)
DILUTED EARNINGS (LOSS) PER SHARE  $ 0.00  $ (0.00)  $ 0.00  $ 0.01  $ (0.01)
           
NET INCOME:          
BASIC EARNINGS (LOSS) PER SHARE   $ 0.13  $ (0.06)  $ 0.15  $ 0.53  $ 0.84
DILUTED EARNINGS (LOSS) PER SHARE  $ 0.13  $ (0.06)  $ 0.15  $ 0.52  $ 0.83
 
ADVANCED ENERGY INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
     
    December 31,   December 31, 
  2012 2011 *
ASSETS  UNAUDITED   
     
Current assets:    
 Cash and cash equivalents  $ 146,564  $ 117,639
 Marketable securities  25,683  25,567
 Accounts receivable, net  83,914  132,485
 Inventories, net  81,482  80,283
 Deferred income taxes  19,477  9,014
 Income taxes receivable  4,315  13,826
 Other current assets  9,075  11,672
Total current assets  370,510  390,486
     
Property and equipment, net  39,523  42,338
     
Deposits and other  7,529  8,959
Goodwill and intangibles, net  106,600  89,953
Deferred income tax assets  13,998  1,642
Total assets  $ 538,160  $ 533,378
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities:    
 Accounts payable  $ 41,044  $ 44,828
 Other accrued expenses  47,602  46,416
Total current liabilities  88,646  91,244
     
Long-term liabilities  61,883  34,795
     
Total liabilities  150,529  126,039
     
Stockholders' equity  387,631  407,339
Total liabilities and stockholders' equity  $ 538,160  $ 533,378
     
* December 31, 2011 amounts are derived from the December 31, 2011 audited Consolidated Financial Statements.
 
ADVANCED ENERGY INDUSTRIES, INC.
SEGMENT INFORMATION (UNAUDITED)
(in thousands)
           
  Three Months Ended Year Ended
  December 31, September 30, December 31,
  2012 2011 2012 2012 2011
SALES:          
Thin Films  $ 53,322  $ 54,420  $ 56,780  $ 235,335  $ 328,614
Solar Energy  59,649  58,075  60,735  216,596  188,185
Total Sales  $ 112,971  $ 112,495  $ 117,515  $ 451,931  $ 516,799
           
           
OPERATING INCOME:          
Thin Films  $ 4,691  $ 7,360  $ 6,065  $ 22,804  $ 68,241
Solar Energy  3,360  231  7,410  14,003  4,323
Total segment operating income  8,051  7,591  13,475  36,807  72,564
Corporate expenses  (513)  (6,460)  (534)  (1,960)  (15,965)
Restructuring charges  (2,039)  (4,229)  (3,003)  (7,473)  (7,348)
Other income, net  181  721  65  2,432  1,217
Income (loss) from continuing operations before income taxes  $ 5,680  $ (2,377)  $ 10,003  $ 29,806  $ 50,468
 
ADVANCED ENERGY INDUSTRIES, INC.
SELECTED OTHER DATA (UNAUDITED)
(in thousands)
     
Reconciliation of Non-GAAP measure - income from continuing operations Three Months Ended  Twelve Months Ended
  December 31, December 31,
  2012 2012
     
Income from continuing operations, net of tax, as reported  $ 4,874  $ 20,176
Adjustments:    
Restructuring charges, net of tax  1,367  4,778
Gain on sale of gas flow manufacturing assets, net of tax  --   (1,452)
Income from continuing operations, net of tax  $ 6,241  $ 23,502
     
     
     
Reconciliation of Non-GAAP measure - per share earnings from continuing operations Three Months Ended  Twelve Months Ended
  December 31, December 31,
  2012 2012
     
Diluted earnings per share from continuing operations, as reported  $ 0.13  $ 0.51
Adjustments:    
per share impact of restructuring charges, net of tax  0.03 0.13
per share impact of gain on sale of gas flow manufacturing assets, net of tax  --   (0.04)
Per share earnings from continuing operations  $ 0.16  $ 0.60
CONTACT: Danny Herron
         Advanced Energy Industries, Inc.
         970.407.6570
         danny.herron@aei.com

         Annie Leschin/Vanessa Lehr
         Advanced Energy Industries, Inc.
         970.407.6555
         ir@aei.com

Stock quotes in this article: AEIS 

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