AeroVironment, Inc.
Jun 23, 2009

AeroVironment, Inc. Announces Fiscal 2009 Fourth Quarter and Fiscal Year End Results

MONROVIA, Calif.--(BUSINESS WIRE)--Jun. 23, 2009-- AeroVironment, Inc. (AV) (NASDAQ: AVAV) today reported financial results for its fourth quarter and fiscal year ending April 30, 2009.

“We completed fiscal 2009 with record quarterly revenue, achieving 15% year over year revenue growth, 13% operating margin, and record cash and investments. This performance reflects strength in our customers' continued demand for our market-leading solutions and our team's sustained execution," said Tim Conver, chairman and chief executive officer of AV. "Our development programs, Global Observer, Switchblade, Digital Data Link, and electric vehicle solutions, all moved forward in meaningful ways, positioning us well for delivering more, important solutions to our customers and for long term growth. We, like others, were affected by the global economic downturn. However, the U.S. government’s recent commitments to increase the emphasis on soldier systems and intelligence, surveillance and reconnaissance within the Department of Defense, and electric vehicle infrastructure throughout the country, are positive indications of growing opportunities for the innovative solutions we now provide and are developing in both our segments.”

Fourth Quarter Highlights:

  • Revenue of $76.0 million
  • Operating margin of 12%
  • Earnings per diluted share of $0.27
  • Quarter over quarter revenue growth of 18%
  • Full Fiscal Year Highlights:

  • Revenue of $247.7 million
  • Operating margin of 13%
  • Earnings per diluted share of $1.11
  • Year over year revenue growth of 15%
  • FISCAL 2009 FOURTH QUARTER RESULTS

    Revenue for the fourth quarter of fiscal 2009 was $76.0 million, up 18% over fourth quarter fiscal 2008 revenue of $64.3 million. The increase in revenue resulted from increased sales in our Unmanned Aircraft Systems (UAS) segment of $9.4 million and Efficient Energy Systems (EES) segment of $2.3 million.

    Income from operations for the fourth quarter of fiscal 2009 was $9.0 million, down 2% from fourth quarter fiscal 2008 income from operations of $9.1 million. The decrease in income from operations was caused by higher research and development (R&D) expense of $2.3 million and higher selling, general and administrative (SG&A) expense of $1.2 million, partially offset by higher gross margin of $3.4 million.

    Net income for the fourth quarter of fiscal 2009 was $5.8 million, down 9% from fourth quarter fiscal 2008 net income of $6.4 million.

    Earnings per diluted share for the fourth quarter of fiscal 2009 was $0.27, down from fourth quarter fiscal 2008 earnings per diluted share of $0.30.

    FISCAL 2009 FULL YEAR RESULTS

    Revenue for the fiscal year 2009 was $247.7 million, up 15% over the fiscal year 2008 revenue of $215.7 million. The increase in revenue resulted from increased sales in our UAS segment of $24.8 million and EES segment of $7.2 million.

    Income from operations for the fiscal year 2009 was $32.6 million, up 14% from the fiscal year 2008 income from operations of $28.4 million. The increase in income from operations was caused by increased gross margin of $10.1 million, partially offset by higher R&D expense of $5.3 million and by higher SG&A expense of $0.6 million.

    Net income for fiscal year 2009 was $24.2 million, up 13% from fiscal year 2008 net income of $21.4 million.

    Earnings per diluted share for fiscal year 2009 was $1.11, up 11% from fiscal 2008 earnings per diluted share of $1.00.

    BACKLOG

    As of April 30, 2009, funded backlog (unfilled firm orders for which funding is currently appropriated to us under a customer contract) was $114.8 million compared to $82.0 million as of April 30, 2008.

    FISCAL 2010 — OUTLOOK FOR THE FULL YEAR

    For fiscal year 2010, the Company expects revenue growth of 18% to 22% over fiscal year 2009 and operating income margin of 12% to 14%.

    CONFERENCE CALL

    In conjunction with this release, AeroVironment, Inc. will host a conference call today, Tuesday, June 23, 2009, at 1:30 pm Pacific Time that will be broadcast live over the Internet. Timothy E. Conver, chairman and chief executive officer, Stephen C. Wright, chief financial officer, and Steven A. Gitlin, director of investor relations, will host the call.

    4:30 PM ET
    3:30 PM CT
    2:30 PM MT
    1:30 PM PT

    Investors may dial into the call at (877) 719-9799 (U.S.) or (719) 325-4821 (international) five to ten minutes prior to the start time to allow for registration.

    Investors with access to the Internet may access the conference call live over the Internet at the Investor Relations section of the AeroVironment, Inc. website, http://investor.avinc.com. Please allow fifteen minutes prior to the call to download and install any necessary audio software. An audio replay of the event will be archived on the Investor Relations page of the company’s web site, at http://investor.avinc.com.

    A digital replay of the call will be available on Tuesday, June 23 at approximately 4:30 p.m. Pacific Time through Tuesday, June 30 at 9:00 p.m. Pacific Time. Dial (888) 203-1112 and enter the passcode 9591404. International callers should dial (719) 457-0820 and enter the same passcode number to access the digital replay.

    ABOUT AEROVIRONMENT, INC. (AV)

    Building on a history of technological innovation, AV designs, develops, produces, and supports an advanced portfolio of Unmanned Aircraft Systems (UAS) and efficient electric energy systems. Agencies of the U.S. Department of Defense and allied military services use the company’s hand-launched UAS to provide situational awareness to tactical operating units through real-time, airborne reconnaissance, surveillance, and target acquisition. Commercial and government entities use AV’s clean transportation solutions such as electric vehicle test systems and electric vehicle fast charge systems, as well as its clean energy solutions. More information about AV is available at www.avinc.com.

    FORWARD-LOOKING STATEMENTS

    This press release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, reliance on sales to the U.S. government; changes in the supply and/or demand and/or prices for our products; the activities of competitors; failure of the markets in which we operate to grow; failure to expand into new markets; changes in significant operating expenses, including components and raw materials; failure to develop new products; changes in the regulatory environment; and general economic and business conditions in the United States and elsewhere in the world. For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    AeroVironment, Inc.
    Consolidated Statements of Income
    (In thousands except share and per share data)
         
    Three Months Ended Twelve Months Ended
    April 30,     April 30, April 30,     April 30,
    2009 2008 2009 2008
     
    Revenue:
    Product sales $ 43,427 $ 39,401 $ 136,173 $ 123,074
    Contract services   32,618   24,905   111,489   92,672
    76,045 64,306 247,662 215,746
    Cost of sales:
    Product sales 26,942 24,937 82,427 73,424
    Contract services   22,753   16,419   76,638   63,775
      49,695   41,356   159,065   137,199
    Gross margin 26,350 22,950 88,597 78,547
    Selling, general and administrative 10,346 9,147 34,246 33,662
    Research and development   7,017   4,675   21,798   16,441
    Income from operations 8,987 9,128 32,553 28,444
    Other income (expense):
    Interest income 137 662 1,244 3,796
    Interest expense         (1 )
    Income before income taxes 9,124 9,790 33,797 32,239
    Provision for income taxes   3,288   3,377   9,552   10,853
    Net income $ 5,836 $ 6,413 $ 24,245 $ 21,386
    Earnings per share data:
    Basic $ 0.27 $ 0.32 $ 1.15 $ 1.08
    Diluted $ 0.27 $ 0.30 $ 1.11 $ 1.00
    Weighted average shares outstanding:
    Basic 21,291,239 20,331,877 21,023,590 19,766,881
    Diluted 21,858,097 21,558,363 21,775,727 21,372,405
     
     
    AeroVironment, Inc.
    Selected Consolidated Balance Sheet Information
    (In thousands except share data)
       
    April 30,

    2009

    April 30,

    2008

     
    Cash and cash equivalents $ 116,501 $ 105,064
    Investments 28,679 13,375
    Accounts receivable, net 42,551 29,788
    Unbilled receivables and retentions 20,070 20,590
    Inventories, net 11,602 15,923
    Total assets 253,181 205,211
    Stockholders’ equity 207,427 169,740
    Shares issued and outstanding 21,470,481 20,614,044
     
     
    Reportable Segment Results are as Follows
    (In thousands)
         
    Three Months Ended Twelve Months Ended
    April 30,     April 30, April 30,     April 30,
    2009 2008 2009 2008
    (Restated) (Restated)
    Revenue:
    UAS $ 65,438 $ 55,976 $ 211,364 $ 186,615
    EES   10,607   8,330   36,298   29,131
    Total   76,045   64,306   247,662   215,746
    Gross margin:
    UAS 20,918 20,108 70,968 68,598
    EES   5,432   2,842   17,629   9,949
    Total   26,350   22,950   88,597   78,547
    Selling, general and administrative 10,346 9,147 34,246 33,662
    Research and development   7,017   4,675   21,798   16,441
    Income from operations 8,987 9,128 32,553 28,444
    Interest income   137   662   1,244   3,795
    Income before income taxes $ 9,124 $ 9,790 $ 33,797 $ 32,239
     
     

    Effective May 1, 2008, the Company consolidated the operations of two of its business segments to reflect the change in the management and organizational structure that was implemented on May 1, 2008. PosiCharge Systems and Energy Technology Center were consolidated into one segment named Efficient Energy Systems. As required by Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise and Related Information, the Company has restated its historical segment information for the twelve months ended April 30, 2008, to be consistent with the current reportable segment structure.

    Additional AV News: www.avinc.com/News

    AV Media Gallery: www.avinc.com/media_gallery

    Source: AeroVironment, Inc.

    AeroVironment, Inc.
    Steven Gitlin
    +1 (626) 357-9983
    ir@avinc.com