Advanced Energy Industries Inc (AEIS, Financial) released its Q3 2023 earnings report on October 31, 2023. The company reported a sequential increase in earnings and a record operating cash flow, despite a slight decrease in revenue.
Financial Performance
Advanced Energy Industries Inc (AEIS, Financial) reported sales of $410.0 million in Q3 2023, a decrease from $415.5 million in the previous quarter and $516.3 million in Q3 2022. The GAAP net income from continuing operations was $33.7 million or $0.89 per diluted share, compared to $27.5 million or $0.73 per diluted share in Q2 2023, and $74.9 million or $1.99 per diluted share a year ago.
Non-GAAP net income was $48.5 million or $1.28 per diluted share in Q3 2023, compared to $41.9 million or $1.11 per diluted share in Q2 2023, and $79.6 million or $2.12 per diluted share in Q3 2022. The company generated a record $72.7 million in cash flow from continuing operations in Q3 2023 and paid $3.8 million in quarterly dividends.
Financial Position
In Q3 2023, Advanced Energy completed a private offering of $575 million aggregate principal amount of 2.50% Convertible Senior Notes due 2028. In conjunction with the offering, the company repurchased $40.0 million of common stock. Total cash on hand at the end of the quarter increased to $985.9 million.
Outlook
For Q4 2023, the company expects revenue to be within the range of $405 million +/- $15 million. GAAP EPS from continuing operations is projected to be $0.69 +/- $0.20, and Non-GAAP EPS is expected to be $1.15 +/- $0.20.
Summary of Financial Statements
The company's balance sheet shows a significant increase in cash and cash equivalents from $458.8 million at the end of 2022 to $985.9 million at the end of Q3 2023. Total assets also increased from $1.99 billion to $2.49 billion over the same period. On the liabilities side, long-term debt increased from $353.3 million to $899.8 million.
The cash flow statement shows a net cash from operating activities of $124.9 million for the first nine months of 2023, compared to $112.9 million for the same period in 2022. The company also reported a net change in cash and cash equivalents of $527.1 million for the first nine months of 2023.
Explore the complete 8-K earnings release (here) from Advanced Energy Industries Inc for further details.
