Advanced Energy Industries, Inc. · NASDAQ:AEIS
Advanced Energy Industries — Q3 2022 Earnings Presentation
14 slides from Advanced Energy Industries's earnings presentation, Nov 1, 2022
Slide 1: Q3 2022 Earnings Presentation
Q3 2022 Earnings Presentation NOVEMBER 1, 2022 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 2022 Summary
Q3 2022 SUMMARY • Q3 2022 results surpassed high end of guidance, while demand remains strong ‒ Revenue was $516 million; non-GAAP(1) earnings were $2.12 per share ‒ Revenue in each of our end markets grew greater than 40% Y/Y and over 10% Q/Q ‒ Backlog remains solid at $1.1 billion, with ~2/3 shipp
Slide 4: Delivered Solid Growth Across Our Markets
DELIVERED SOLID GROWTH ACROSS OUR MARKETS ($ in millions) INDUSTRIAL & MEDICAL Up 48% Y/Y & 14% Q/Q SEMICONDUCTOR EQUIPMENT $120 • Reached quarterly record, and grew Up 54% Y/Y & 17% Q/Q Q3 2022 29% Y/Y and 12% Q/Q organically Total Revenue • Strong design win pipeline and • Reached another quarterl
Slide 5: Q3 2022 Financial Highlights
Q3 2022 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW $516 million 37.5% $65.4 million Up 17% Q/Q Up 40 bps Q/Q Up $27.8 million Q/Q NON-GAAP EPS(1) NON-GAAP OP MARGIN(1) CASH & INVESTMENTS(2) $2.12 18.1% $411 million Up 47% Q/Q Up 230 bps Q/Q Net Cash of $33 million (1)
Slide 6: Quarterly Revenue and Backlog Trends
QUARTERLY REVENUE AND BACKLOG TRENDS ($ in millions) Revenue vs. Backlog $1,200 $1,000 $800 $600 Backlog Revenue $400 $200 $0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 • Total backlog at the end of Q3 2022 was $1,093 million, up 42% Y/Y and down 6% Q/Q • Total revenue grew 49
Slide 7: Revenue by Market
REVENUE BY MARKET ORGANIC GROWTH (figures in $ millions) Q3 2022 Q2 2022 Q3 2021 Q/Q Y/Y Q/Q Y/Y Semiconductor Equipment $266.6 $228.8 $173.4 17% 54% 16% 53% Industrial & Medical $119.6 $105.0 $80.8 14% 48% 12% 29% Data Center Computing $87.5 $69.2 $62.2 27% 41% 27% 41% Telecom & Networking $42.5 $3
Slide 8: Income Statements
INCOME STATEMENTS (figures in $ millions, except percentage and EPS) Q3 2022 Q2 2022 Q3 2021 Q/Q Y/Y Revenue $516.3 $440.9 $346.1 17% 49% GAAP gross margin 37.0% 36.8% 34.7% GAAP operating expenses $113.6 $109.4 $95.8 4% 19% GAAP operating margins from continuing ops 15.0% 12.0% 7.0% GAAP EPS from c
Slide 9: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW (figures in $ millions) Q3 2022 Q2 2022 Q3 2021 • Cash and marketable securities of $411 million Cash & Investments(1) $411.2 $374.8 $550.8 • Inventory turns improved to 3.2x ‒ Focus on scaling back inventories of less-critical components, which should improve turns Account
Slide 10: Guidance
GUIDANCE Q4 2022 Guidance Revenue $470M +/- $20M GAAP EPS from continuing operations $1.18 +/- $0.25 Non-GAAP EPS(1) $1.55 +/- $0.25 (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation Copyright © 2022 Advan
Slide 11: Quarterly Non-GAAP Financials
QUARTERLY NON-GAAP FINANCIALS(1) Advanced Energy - Non-GAAP Financials Quarterly Trend All figures from Continuing Operations (figures in $ millions, except percentage and EPS) 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Backlog 300.1 280.1 281.5 290.7 405
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
Slide 13: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION (figures in $ thousands, except percentage and EPS) Reconciliation of Non-GAAP measure - operating expenses and operating Three Months Ended Nine Months Ended Reconciliation of Non-GAAP measure - September 30, June 30, September 30, income excluding certain items Three Months
Slide 14: Reconciliation of GAAP to Non-GAAP Guidance
RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE Reconciliation of Q4 2022 Guidance Low End High End Revenue $450 million $490 million Reconciliation of non-GAAP earnings per share GAAP earnings per share $ 0.93 $ 1.43 Stock-based compensation 0.16 0.16 Amortization of intangible assets 0.19 0.19 Restruc
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