For more information, contact:
Mike El-Hillow
Advanced Energy Industries, Inc.
970.407.6570
mike.el-hillow@aei.com |
Cathy Kawakami
Advanced Energy Industries, Inc.
970.407.6732
cathy.kawakami@aei.com |
Advanced Energy Reports Fourth Quarter and Full-Year 2001 Results
Fort Collins, Colorado (February 13, 2001)—Advanced Energy (Nasdaq: AEIS) today reported financial results for the fourth quarter and full-year ended December 31, 2001. Advanced Energy is a leading global provider of critical components and sub-systems used in the production of semiconductors, flat panel displays, data storage products and other advanced applications.
Fourth Quarter Review
For the 2001 fourth quarter, revenues were $34.0 million, down 67 percent from $102.7 million for the fourth quarter of 2000, and down 12 percent from $38.7 million for the third quarter of 2001.
Full Year Review
For the full year 2001, revenues were $193.6 million compared with $359.8 million for the full year 2000, a decrease of 46 percent. Gross profit for the full year 2001 was $57.4 million, or 30.0 percent, compared with $176.5 million or 49.0 percent for the full year 2000. Net loss for the full year 2001 was $31.4 million or $0.99 per share, compared to net income of $68.0 million or $2.10 per diluted share for the full year 2000.
About Advanced Energy
Advanced Energy is a global leader in the development, marketing, and support of integrated technology solutions that are central in the manufacture of semiconductors, data storage products, and flat panel displays as well as other mission-critical power applications. AE’s comprehensive suite of custom subsystems for vacuum processing includes power conversion and control solutions, process monitoring and machine control tools, ion-beam sources, dynamic temperature control and measurement products, mass flow systems, and plasma abatement technologies. AE’s URL is www.advanced-energy.com
Safe Harbor Statement
This press release contains certain forward-looking statements 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 volatility and cyclicality of the semiconductor and semiconductor capital equipment industries, fluctuations in quarterly and annual revenues and operating results, Advanced Energy's ongoing ability to develop new products in a highly competitive industry characterized by increasingly rapid technological changes, our ability to successfully integrate acquired companies' operations, and other risks described in Advanced Energy's Form 10-K, Forms 10-Q and other reports and statements, as 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 by contacting Advanced Energy's investor relations at 970-407-6732. The company assumes no obligation to update the information in this press release.
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
(in thousands except per share data)
Quarter Ended December 31, Year Ended December 31,
2001 2000 2001 2000
Sales $33,993 $102,736 $193,600 $359,782
Cost of sales 26,601 52,138 136,168 183,329
Gross profit 7,392 50,598 57,432 176,453
Operating expenses:
Research and
development 10,755 10,668 45,151 36,996
Sales and marketing 5,498 6,629 23,784 24,101
General and
administrative 4,886 6,376 21,522 24,573
Other operating
expenses 5,625 -- 6,846 --
Goodwill impairment -- -- 5,446 --
Restructuring charge 2,456 -- 3,070 1,000
Litigation recovery -- -- (1,500) --
Merger costs -- -- -- 4,583
(Loss) income from
operations (21,828) 26,925 (46,887) 85,200
Other (expense)
income (1,487) 1,036 (2,078) 7,485
Net (loss) income
before income taxes,
minority interest and
extraordinary item (23,315) 27,961 (48,965) 92,685
(Benefit) provision
for income taxes (8,873) 8,076 (17,441) 32,241
Minority interest in
net (loss) income -- 106 (145) 20
Net (loss) income
before extraordinary
item (14,442) 19,779 (31,379) 60,424
Extraordinary item
net of taxes -- 7,610 -- 7,610
Net (loss) income $(14,442) $27,389 $(31,379) $68,034
Net (loss) earnings
per share before
extraordinary item:
Basic $(0.45) $0.63 $(0.99) $1.93
Diluted $(0.45) $0.61 $(0.99) $1.86
Net earnings per
share from
extraordinary item:
Basic $-- $0.24 $-- $0.24
Diluted $-- $0.22 $-- $0.24
Net (loss) earnings
per share:
Basic $(0.45) $0.87 $(0.99) $2.17
Diluted $(0.45) $0.83 $(0.99) $2.10
Basic weighted-average
common shares
outstanding 31,821 31,517 31,712 31,336
Diluted weighted-average
common shares
outstanding 31,821 34,078 31,712 32,425
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Other information
(in thousands except per share data)
Quarter Ended December 31, Year Ended December 31,
2001 2000 2001 2000
ADDITIONAL INFORMATION
- Pro forma without
exceptional items:
Pro forma net (loss)
income without
exceptional items $(9,351) $19,779 $(16,814) $60,888
Pro forma basic (loss)
earnings per share $(0.29) $0.63 $(0.53) $1.94
Pro forma fully
diluted (loss)
earnings per share $(0.29) $0.61 $(0.53) $1.88
ADDITIONAL INFORMATION
- EBITDA:
(Loss) earnings before
interest, taxes,
depreciation and
amortization
assuming no dilution
from convertible
notes $(18,469) $42,087 $(32,244) $112,337
Pretax EBITDA
diluted EPS $(0.58) $1.30 $(1.02) $3.46
After tax EBITDA
diluted EPS $(0.37) $0.86 $(0.66) $2.29
THE PRO FORMA AMOUNTS
HAVE BEEN ADJUSTED TO
ELIMINATE THE FOLLOWING:
Excess, obsolete and
warranty inventory
charges -- -- 7,116 --
Other operating
expenses 5,625 -- 6,846 --
Goodwill impairment -- -- 5,446 --
Restructuring charge 2,456 -- 3,070 1,000
Litigation recovery -- -- (1,500) --
Merger costs -- -- -- 4,583
Extraordinary
gain, before tax -- (12,176) -- (12,176)
Gain on sale of
investment -- -- -- (4,841)
Income tax effect (2,990) 4,566 (6,413) 4,288
$5,091 $(7,610) $14,565 $(7,146)
EBITDA RECONCILIATION
(Loss) income before
income taxes and
minority interest (23,315) 27,961 (48,965) 92,685
Extraordinary item -- 12,176 -- 12,176
Interest income (2,164) (2,722) (6,581) (10,727)
Interest expense 2,984 1,602 7,399 7,698
Depreciation and
amortization 4,026 3,070 15,903 10,505
$(18,469) $42,087 $(32,244) $112,337
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(in thousands)
December 31, December 31,
2001 2000
ASSETS
Current Assets:
Cash and cash equivalents $81,955 $31,716
Marketable securities - trading 190,023 157,811
Accounts receivable 30,812 76,545
Income tax receivable 15,862 74
Inventories 45,248 45,266
Other current assets 4,178 2,508
Deferred income tax assets, net 11,200 7,483
Total current assets 379,278 321,403
Property and equipment, net 31,095 24,101
Notes receivable -- 2,472
Goodwill and intangibles, net 23,072 9,890
Investments - available for sale 5,350 1,824
Deferred debt issuance costs 5,736 2,261
Other assets 5,664 3,884
Total assets $450,195 $365,835
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $11,658 $18,250
Other current liabilities 13,351 16,210
Accrued income taxes payable -- 7,923
Current portion of long-term debt 1,130 1,337
Accrued interest payable on
convertible subordinated notes 2,696 529
Total current liabilities 28,835 44,249
Long-term Liabilities:
Capital leases and notes payable -- 1,043
Deferred income tax liability, net 415 --
Convertible subordinated notes payable 206,600 81,600
Total long-term liabilities 207,015 82,643
Total liabilities 235,850 126,892
Minority interest -- 145
Stockholders' equity 214,345 238,798
Total liabilities and
stockholders' equity $450,195 $365,835
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(in thousands)
Year Ended December 31,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $(31,379) $68,034
Depreciation and amortization 16,678 11,122
Provision for inventory and
product-related liabilities 7,116 --
Loss on impairment of goodwill 5,446 --
Other operating expenses 6,846 --
Stock issued for services rendered -- 2,430
Gain on repayment of convertible debt -- (12,176)
Gain on sale of investment -- (4,841)
Changes in marketable securities, net (26,688) 38,100
Earnings from marketable securities, net (4,925) (9,471)
Accounts receivable 45,127 (30,074)
Inventories (3,688) (16,856)
Accounts payable, trade (7,934) 2,548
Income taxes (21,949) 14,631
Other (8,399) (120)
Net cash (used in) provided by
operating activities (23,749) 63,327
CASH FLOWS FROM INVESTING ACTIVITIES:
Advances under notes receivable -- (2,472)
Proceeds from sale of investments -- 4,464
Proceeds from sale of equipment -- 150
Purchase of property and equipment, net (12,435) (14,062)
Purchase of investments (7,186) (981)
Purchase of LITMAS, net of cash acquired -- (250)
Acquisition of EMCO, net of cash
acquired (29,932) --
Net cash used in investing activities (49,553) (13,151)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible debt, net 121,250 --
Repurchase of convertible debt, net -- (40,795)
Net change from notes payable and
capital lease obligations (1,136) (1,632)
Proceeds from common stock transactions 3,970 4,914
Net cash provided by (used in)
financing activities 124,084 (37,513)
EFFECT OF CURRENCY TRANSLATION ON CASH (543) (1,990)
INCREASE IN CASH AND CASH EQUIVALENTS 50,239 10,673
CASH AND EQUIVALENTS, beginning of period 31,716 21,043
CASH AND EQUIVALENTS, end of period $81,955 $31,716
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SOURCE Advanced Energy
Web site: http: //www.advanced-energy.com
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CONTACT: Mike El-Hillow, Senior Vice President, Chief Financial Officer, +1-970-407-6570, mike.el-hillow@aei.com, or Cathy Kawakami, Director of Investor Relations, +1-970-407-6732, cathy.kawakami@aei.com, both of Advanced Energy Industries, Inc.
CAPTION: AEISLOGO ADVANCED ENERGY INDUSTRIES LOGO Development, marketing, and support of critical technology solutions for the manufacture of semiconductors, data storage products, and flat panel displays as well as for surface modification applications and process power control. (PRNewsFoto)[PM] FORT COLLINS, CO USA 06/19/2000