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Release Details

The Company Announces Q4 2024 Results

AeroVironment Announces Fiscal 2022 Fourth Quarter and Fiscal Year Results

June 28, 2022 at 4:10 PM EDT

ARLINGTON, Va.--(BUSINESS WIRE)--Jun. 28, 2022-- AeroVironment, Inc. (NASDAQ: AVAV), a global leader in intelligent, multi-domain robotic systems, today reported financial results for the fourth quarter and fiscal year ended April 30, 2022.

Fourth Quarter and Fiscal Year Highlights

  • Fourth quarter revenue of $132.6 million and record fiscal year 2022 revenues of $445.7 million, primarily due to higher service revenue and recent acquisitions, which more than offset sales declines in some product segments
  • Fourth quarter gross margin of $48.6 million and $141.2 million for fiscal 2022
  • Fourth quarter net income attributable to AeroVironment of $7.3 million, or $0.29 per diluted share
  • Net loss attributable to AeroVironment for fiscal year 2022 of $4.2 million, or $(0.17) per diluted share

“Our team executed well in the fourth quarter enabling the Company to meet our guidance for fiscal 2022, despite ongoing macroeconomic challenges,” said Wahid Nawabi, AeroVironment president and chief executive officer. “We are confident that fiscal 2023 will be a solid organic growth year for the business.

“During the quarter, the Company continued to face supply chain constraints and a tight labor market, but several factors point to strengthening demand and an overall improving outlook. First, the federal government passed its fiscal 2022 omnibus appropriations bill in March, and contract decision-making has begun to accelerate – which, we believe, will continue through the end of September. At the same time, the war in Ukraine has brought increased awareness of our portfolio of innovative solutions, including the highly relevant Switchblade tactical missile system, and we anticipate benefiting from higher order volume going forward.

“We’re proud of our accomplishments in this difficult year and of the assistance we’ve provided to Ukraine and our allies. We still face continuing macroeconomic challenges in operating the business but opportunities abound for our broad portfolio of unmanned robotic solutions. Our products and services enjoy strong bipartisan support in Congress, and we anticipate orders accelerating heading into calendar 2023. An improving mix of hardware sales should also lead to improved bottom line results. Overall, the future looks bright and I’d like to thank our employees, customers and shareholders for their dedication and continued support.”

FISCAL 2022 FOURTH QUARTER RESULTS

Revenue for the fourth quarter of fiscal 2022 was $132.6 million, a decrease of 2% from the fourth quarter of fiscal 2021 revenue of $136.0 million. The decrease in revenue reflects a decrease in product sales of $22.7 million, partially offset by higher service revenue of $19.3 million. The decrease in revenue was primarily due to a decrease in revenue in the Tactical Missile Systems (“TMS”) segment of $19.0 million and the Small Unmanned Aircraft Systems (“Small UAS”) segment of $11.7 million. These decreases were partially offset by an increase in revenue from the Unmanned Ground Vehicles product line of $8.5 million and the Medium Unmanned Aircraft Systems (“MUAS”) segment of $7.2 million, as a result of our acquisitions of Arcturus UAV (“Arcturus”) and Telerob GmbH (“Telerob”) in February and May 2021, respectively, and an increase in the High Altitude Pseudo-Satellite (“HAPS”) segment of $6.0 million and an increase in customer-funded research and development revenue of $5.5 million.

Gross margin for the fourth quarter of fiscal 2022 was $48.6 million, a decrease of 18% from the fourth quarter of fiscal 2021 gross margin of $59.7 million. The decrease in gross margin reflects lower product margin of $14.8 million, partially offset by higher service margin of $3.8 million. As a percentage of revenue, gross margin decreased to 37% from 44%. Gross margin was negatively impacted by $3.9 million of intangible amortization expense and other related non-cash purchase accounting expenses in the fourth quarter of fiscal 2022 as compared to $2.6 million in the fourth quarter of fiscal 2021. With the acquisitions of Arcturus and the Intelligent Systems Group of Progeny Systems Corp. (“ISG”), we experienced a higher proportion of service revenue, which generally has lower gross margins than product sales.

Income from operations for the fourth quarter of fiscal 2022 was $13.0 million, a decrease of $4.8 million from the fourth quarter of fiscal 2021 income from operations of $17.8 million. The decrease in income from operations was primarily the result of a decrease in gross margin of $11.0 million, partially offset by a decrease in research and development (“R&D”) expense of $3.4 million and a decrease in selling, general and administrative (“SG&A”) expense of $2.9 million. SG&A expense included acquisition-related expenses and intangible amortization expense of $4.3 million in the fourth quarter of fiscal 2022 as compared to $6.7 million in the fourth quarter of fiscal 2021. SG&A expense in the fourth quarter of fiscal 2022 also included additional headcount and support costs associated with the acquisition of Telerob.

Other income, net, for the fourth quarter of fiscal 2022 was $5.3 million, as compared to other expense, net of $9.4 million for the fourth quarter of fiscal 2021. The increase in other income, net was primarily due to a legal accrual related to our former EES business recorded in the fourth quarter of fiscal 2021, as compared to a $6.5 million gain related to the sale of the Company’s interest in the HAPSMobile joint venture in the fourth quarter of fiscal 2022.

Provision for income taxes for the fourth quarter of fiscal 2022 was $15.5 million, as compared to a benefit from income taxes of $2.2 million for the fourth quarter of fiscal 2021. The increase in provision for income taxes was primarily due to the increase in income before income taxes.

Equity method investment income, net of tax, for the fourth quarter of fiscal 2022 was $4.4 million, as compared to equity method investment income, net of tax of $0.4 million for the fourth quarter of fiscal 2021.

Net income attributable to AeroVironment for the fourth quarter of fiscal 2022 was $7.3 million, or $0.29 per diluted share, as compared to $10.9 million, or $0.44 per diluted share, for the fourth quarter of fiscal 2021.

Non-GAAP earnings per diluted share was $0.30 for the fourth quarter of fiscal 2022, as compared to $1.04 for the fourth quarter of fiscal 2021.

BACKLOG

As of April 30, 2022, funded backlog (defined as remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $210.8 million, as compared to $211.8 million as of April 30, 2021.

FISCAL 2023 — OUTLOOK FOR THE FULL YEAR

For the fiscal year 2023, the Company expects revenue of between $490 million and $520 million, net income of between $11 million and $18 million, Non-GAAP adjusted EBITDA of between $82 million and $92 million, earnings per diluted share of between $0.42 and $0.72 and non-GAAP earnings per diluted share, which excludes amortization of intangible assets, of between $1.35 and $1.65.

The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, subject to certain risks and uncertainties, and including certain assumptions with respect to our ability to efficiently and on a timely basis integrate our acquisitions, obtain and retain government contracts, changes in the timing and/or amount of government spending, changes in the demand for our products and services, activities of competitors, changes in the regulatory environment, and general economic and business conditions in the United States and elsewhere in the world. Investors are reminded that actual results may differ materially from these estimates.

CONFERENCE CALL AND PRESENTATION

In conjunction with this release, AeroVironment, Inc. will host a conference call today, Tuesday, June 28, 2022, at 4:30 pm Eastern Time that will be webcast live. Wahid Nawabi, chairman, president and chief executive officer, Kevin P. McDonnell, chief financial officer and Jonah Teeter-Balin, senior director corporate development and investor relations, will host the call.

Investors may dial into the call by using the following telephone numbers, (877) 561-2749 (U.S.) or (678) 809-1029 (international) and providing the conference ID 1238926 five to ten minutes prior to the start time to allow for registration.

Investors with Internet access may listen to the live audio webcast via the Investor Relations page of the AeroVironment, Inc. website, http://investor.avinc.com. Please allow 15 minutes prior to the call to download and install any necessary audio software.

A supplementary investor presentation for the fourth quarter and full fiscal year 2022 can be accessed at https://investor.avinc.com/events-and-presentations.

Audio Replay

An audio replay of the event will be archived on the Investor Relations section of the Company's website at http://investor.avinc.com.

ABOUT AEROVIRONMENT, INC.

AeroVironment (NASDAQ: AVAV) provides technology solutions at the intersection of robotics, sensors, software analytics and connectivity that deliver more actionable intelligence so you can Proceed with Certainty. Headquartered in Virginia, AeroVironment is a global leader in intelligent, multi-domain robotic systems, and serves defense, government and commercial customers. For more information, visit 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, the impact of our recent acquisitions of Arcturus UAV, Telerob and ISG and our ability to successfully integrate them into our operations; the risk that disruptions will occur from the transactions that will harm our business; any disruptions or threatened disruptions to our relationships with our distributors, suppliers, customers and employees, including shortages in components for our products; the ability to timely and sufficiently integrate international operations into our ongoing business and compliance programs; reliance on sales to the U.S. government and related to our development of HAPS UAS; availability of U.S. government funding for defense procurement and R&D programs; changes in the timing and/or amount of government spending; our ability to perform under existing contracts and obtain new contracts; risks related to our international business, including compliance with export control laws; potential need for changes in our long-term strategy in response to future developments; the extensive regulatory requirements governing our contracts with the U.S. government and international customers; the consequences to our financial position, business and reputation that could result from failing to comply with such regulatory requirements; unexpected technical and marketing difficulties inherent in major research and product development efforts; the impact of potential security and cyber threats or the risk of unauthorized access to our, our customers’ and/or our suppliers’ information and systems; changes in the supply and/or demand and/or prices for our products and services; increased competition; uncertainty in the customer adoption rate of commercial use unmanned aircraft systems; failure to remain a market innovator, to create new market opportunities or to expand into new markets; unexpected changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; unfavorable results in legal proceedings; our ability to respond and adapt to unexpected legal, regulatory and government budgetary changes, including those resulting from the ongoing COVID-19 pandemic, such as supply chain disruptions, vaccine mandates, the threat of future variants and potential governmentally-mandated shutdowns, quarantine policies, travel restrictions and social distancing, curtailment of trade, diversion of government resources to non-defense priorities, and other business restrictions affecting our ability to manufacture and sell our products and provide our services; our ability to comply with the covenants in our loan documents; our ability to attract and retain skilled employees; the impact of inflation; and general economic and business conditions in the United States and elsewhere in the world; and the failure to establish and maintain effective internal control over financial reporting. 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.

NON-GAAP MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. See in the financial tables below the calculation of these measures, the reasons why we believe these measures provide useful information to investors, and a reconciliation of these measures to the most directly comparable GAAP measures.

AeroVironment, Inc.

Consolidated Statements of Operations (Unaudited)

(In thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

 

April 30,

 

April 30,

 

April 30,

 

April 30,

 

 

 

2022

 

2021

 

2022

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

73,970

 

 

$

96,655

 

 

$

240,683

 

 

$

278,888

 

 

Contract services

 

 

58,652

 

 

 

39,360

 

 

 

205,049

 

 

 

116,024

 

 

 

 

 

132,622

 

 

 

136,015

 

 

 

445,732

 

 

 

394,912

 

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

39,775

 

 

 

47,675

 

 

 

140,596

 

 

 

149,714

 

 

Contract services

 

 

44,225

 

 

 

28,685

 

 

 

163,900

 

 

 

80,640

 

 

 

 

 

84,000

 

 

 

76,360

 

 

 

304,496

 

 

 

230,354

 

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

34,195

 

 

 

48,980

 

 

 

100,087

 

 

 

129,174

 

 

Contract services

 

 

14,427

 

 

 

10,675

 

 

 

41,149

 

 

 

35,384

 

 

 

 

 

48,622

 

 

 

59,655

 

 

 

141,236

 

 

 

164,558

 

 

Selling, general and administrative

 

 

21,938

 

 

 

24,841

 

 

 

96,434

 

 

 

67,481

 

 

Research and development

 

 

13,671

 

 

 

17,054

 

 

 

54,689

 

 

 

53,764

 

 

Income (loss) from continuing operations

 

 

13,013

 

 

 

17,760

 

 

 

(9,887

)

 

 

43,313

 

 

Other (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(1,276

)

 

 

(1,035

)

 

 

(5,440

)

 

 

(618

)

 

Other income (expense), net

 

 

47

 

 

 

(8,398

)

 

 

(10,313

)

 

 

(8,330

)

 

Sale of ownership in HAPSMobile Inc. joint venture

 

 

6,497

 

 

 

 

 

 

6,497

 

 

 

-

 

 

Income (loss) continuing operations before income taxes

 

 

18,281

 

 

 

8,327

 

 

 

(19,143

)

 

 

34,365

 

 

Provision for (benefit from) income taxes

 

 

15,495

 

 

 

(2,235

)

 

 

(10,369

)

 

 

539

 

 

Equity method investment income (loss), net of tax

 

 

4,426

 

 

 

410

 

 

 

4,589

 

 

 

(10,481

)

 

Net income (loss)

 

 

7,212

 

 

 

10,972

 

 

 

(4,185

)

 

 

23,345

 

 

Net income attributable to noncontrolling interest

 

 

46

 

 

 

(26

)

 

 

(3

)

 

 

(14

)

 

Net income (loss) attributable to AeroVironment, Inc.

 

$

7,258

 

 

$

10,946

 

 

$

(4,188

)

 

$

23,331

 

 

Net income (loss) per share attributable to AeroVironment, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.29

 

 

$

0.45

 

 

$

(0.17

)

 

$

0.97

 

 

Diluted

 

$

0.29

 

 

$

0.44

 

 

$

(0.17

)

 

$

0.96

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,768,901

 

 

 

24,434,344

 

 

 

24,685,534

 

 

 

24,049,851

 

 

Diluted

 

 

24,936,176

 

 

 

24,779,877

 

 

 

24,685,534

 

 

 

24,362,656

 

 

AeroVironment, Inc.

Consolidated Balance Sheets

(In thousands except share data)

 

 

 

 

 

 

 

 

 

 

April 30,

 

 

 

2022

 

2021

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

77,231

 

 

$

148,741

 

Short-term investments

 

 

24,716

 

 

 

31,971

 

Accounts receivable, net of allowance for doubtful accounts of $592 at April 30, 2022 and $595 at April 30, 2021

 

 

60,170

 

 

 

62,647

 

Unbilled receivables and retentions

 

 

104,194

 

 

 

71,632

 

Inventories

 

 

90,629

 

 

 

71,646

 

Income taxes receivable

 

 

442

 

 

 

 

Prepaid expenses and other current assets

 

 

11,527

 

 

 

15,001

 

Total current assets

 

 

368,909

 

 

 

401,638

 

Long-term investments

 

 

15,433

 

 

 

12,156

 

Property and equipment, net

 

 

62,296

 

 

 

58,896

 

Operating lease right-of-use assets

 

 

26,769

 

 

 

22,902

 

Deferred income taxes

 

 

7,290

 

 

 

2,061

 

Intangibles, net

 

 

97,224

 

 

 

106,268

 

Goodwill

 

 

334,347

 

 

 

314,205

 

Other assets

 

 

1,932

 

 

 

10,440

 

Total assets

 

$

914,200

 

 

$

928,566

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

19,244

 

 

$

24,841

 

Wages and related accruals

 

 

25,398

 

 

 

28,068

 

Customer advances

 

 

8,968

 

 

 

7,183

 

Current portion of long-term debt

 

 

10,000

 

 

 

10,000

 

Current operating lease liabilities

 

 

6,819

 

 

 

6,154

 

Income taxes payable

 

 

759

 

 

 

861

 

Other current liabilities

 

 

30,203

 

 

 

19,078

 

Total current liabilities

 

 

101,391

 

 

 

96,185

 

Long-term debt, net of current portion

 

 

177,840

 

 

 

187,512

 

Non-current operating lease liabilities

 

 

21,915

 

 

 

19,103

 

Other non-current liabilities

 

 

768

 

 

 

10,141

 

Liability for uncertain tax positions

 

 

1,450

 

 

 

3,518

 

Deferred income taxes

 

 

2,626

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—10,000,000; none issued or outstanding at April 30, 2022 and April 30, 2021

 

 

 

 

 

 

Common stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—100,000,000

 

 

 

 

 

 

 

Issued and outstanding shares—24,951,287 shares at April 30, 2022 and 24,777,295 shares at April 30, 2021

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

267,248

 

 

 

260,327

 

Accumulated other comprehensive (loss) income

 

 

(6,514

)

 

 

343

 

Retained earnings

 

 

347,233

 

 

 

351,421

 

Total AeroVironment, Inc. stockholders’ equity

 

 

607,969

 

 

 

612,093

 

Noncontrolling interest

 

 

241

 

 

 

14

 

Total equity

 

 

608,210

 

 

 

612,107

 

Total liabilities and stockholders’ equity

 

$

914,200

 

 

$

928,566

 

AeroVironment, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 

2022

 

2021

 

2020

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(4,185

)

 

$

23,345

 

 

$

41,070

 

 

Loss on sale of business, net of tax

 

 

 

 

 

 

 

 

265

 

 

Net (loss) income from continuing operations

 

 

(4,185

)

 

 

23,345

 

 

 

41,335

 

 

Adjustments to reconcile net (loss) income from continuing operations to cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

60,825

 

 

 

19,262

 

 

 

9,888

 

 

(Income) loss from equity method investments, net

 

 

(5,889

)

 

 

10,481

 

 

 

5,487

 

 

Amortization of debt issuance costs

 

 

789

 

 

 

145

 

 

 

 

 

Realized gain from sale of available-for-sale investments

 

 

 

 

 

(11

)

 

 

(180

)

 

Provision for doubtful accounts

 

 

(6

)

 

 

(114

)

 

 

388

 

 

Other non-cash expense (income)

 

 

649

 

 

 

(449

)

 

 

(703

)

 

Non-cash lease expense

 

 

6,814

 

 

 

5,150

 

 

 

4,574

 

 

Loss on foreign currency transactions

 

 

233

 

 

 

1

 

 

 

1

 

 

Deferred income taxes

 

 

(7,282

)

 

 

(1,694

)

 

 

3,419

 

 

Stock-based compensation

 

 

5,390

 

 

 

6,932

 

 

 

6,227

 

 

Loss (gain) on disposal of property and equipment

 

 

8,277

 

 

 

123

 

 

 

(71

)

 

Amortization of debt securities

 

 

242

 

 

 

309

 

 

 

(1,423

)

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

3,084

 

 

 

17,177

 

 

 

(42,869

)

 

Unbilled receivables and retentions

 

 

(31,883

)

 

 

8,381

 

 

 

(22,790

)

 

Inventories

 

 

(27,160

)

 

 

(5,179

)

 

 

8,855

 

 

Income taxes receivable

 

 

(442

)

 

 

 

 

 

821

 

 

Prepaid expenses and other assets

 

 

(4,534

)

 

 

(6,104

)

 

 

831

 

 

Accounts payable

 

 

(7,044

)

 

 

2,565

 

 

 

3,127

 

 

Other liabilities

 

 

(7,496

)

 

 

6,212

 

 

 

8,180

 

 

Net cash (used in) provided by operating activities

 

 

(9,618

)

 

 

86,532

 

 

 

25,097

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(22,289

)

 

 

(11,263

)

 

 

(11,220

)

 

Equity method investments

 

 

(6,884

)

 

 

(2,675

)

 

 

(14,498

)

 

Business acquisitions, net of cash acquired

 

 

(46,150

)

 

 

(385,614

)

 

 

(18,641

)

 

Proceeds from sale of ownership in equity method investment

 

 

6,497

 

 

 

 

 

 

 

 

Proceeds from loan repayment

 

 

4,345

 

 

 

 

 

 

 

 

Proceeds from sale of property and equipment

 

 

 

 

 

 

 

 

81

 

 

Redemptions of held-to-maturity investments

 

 

 

 

 

 

 

 

185,917

 

 

Purchases of held-to-maturity investments

 

 

 

 

 

 

 

 

(176,757

)

 

Redemptions of available-for-sale investments

 

 

35,851

 

 

 

146,425

 

 

 

200,892

 

 

Purchases of available-for-sale investments

 

 

(23,882

)

 

 

(125,644

)

 

 

(106,607

)

 

Other

 

 

224

 

 

 

 

 

 

 

 

Net cash (used in) provided by investing activities

 

 

(52,288

)

 

 

(378,771

)

 

 

59,167

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

Principal payments of term loan

 

 

(10,000

)

 

 

 

 

 

 

 

Payment of contingent consideration

 

 

 

 

 

 

 

 

(868

)

 

Tax withholding payment related to net settlement of equity awards

 

 

(1,245

)

 

 

(1,992

)

 

 

(1,062

)

 

Holdback and retention payments for business acquisition

 

 

(7,814

)

 

 

(1,492

)

 

 

 

 

Exercise of stock options

 

 

2,776

 

 

 

1,522

 

 

 

100

 

 

Payment of debt issuance costs

 

 

(293

)

 

 

(3,878

)

 

 

 

 

Proceeds from long-term debt

 

 

 

 

 

200,000

 

 

 

 

 

Other

 

 

(31

)

 

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(16,607

)

 

 

194,160

 

 

 

(1,830

)

 

Effects of currency translation on cash and cash equivalents

 

 

(1,319

)

 

 

 

 

 

 

 

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

 

(79,832

)

 

 

(98,079

)

 

 

82,434

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

157,063

 

 

 

255,142

 

 

 

172,708

 

 

Cash, cash equivalents and restricted cash at end of period

 

$

77,231

 

 

$

157,063

 

 

$

255,142

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

 

 

Cash paid, net during the period for:

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$

1,879

 

 

$

2,405

 

 

$

532

 

 

Interest

 

$

5,025

 

 

$

 

 

$

 

 

Non-cash activities

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) gain on investments, net of deferred tax expense of $8, $1 and $14 for the fiscal years ended 2021, 2020 and 2019, respectively

 

$

(43

)

 

$

(60

)

 

$

50

 

 

Issuance of common stock for business acquisition

 

$

 

 

$

72,384

 

 

$

 

 

Change in foreign currency translation adjustments

 

$

(6,814

)

 

$

75

 

 

$

276

 

 

Issuances of inventory to property and equipment, ISR in-service assets

 

$

17,481

 

 

$

769

 

 

$

 

 

Acquisitions of property and equipment included in accounts payable

 

$

1,117

 

 

$

756

 

 

$

1,425

 

 

AeroVironment, Inc.

Reportable Segment Results (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended April 30, 2022

 

 

Small UAS

 

TMS

 

MUAS

 

HAPS

 

All other

 

Total

Revenue

 

$

59,198

 

$

20,217

 

 

$

23,083

 

 

$

13,087

 

$

17,037

 

 

$

132,622

Gross margin

 

 

30,429

 

 

7,065

 

 

 

416

 

 

 

5,242

 

 

5,470

 

 

 

48,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

17,251

 

 

(1,414

)

 

 

(5,710

)

 

 

3,306

 

 

(420

)

 

 

13,013

Acquisition-related expenses

 

 

-

 

 

-

 

 

 

221

 

 

 

-

 

 

148

 

 

 

369

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

707

 

 

-

 

 

 

4,986

 

 

 

-

 

 

2,211

 

 

 

7,904

Adjusted income (loss) from operations

 

$

17,958

 

$

(1,414

)

 

$

(503

)

 

$

3,306

 

$

1,939

 

 

$

21,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended April 30, 2021

 

 

Small UAS

 

TMS

 

MUAS

 

HAPS

 

All other

 

Total

Revenue

 

$

70,851

 

$

39,175

 

$

15,837

 

 

$

7,108

 

 

$

3,044

 

 

$

136,015

Gross margin

 

 

39,867

 

 

13,924

 

 

2,965

 

 

 

3,461

 

 

 

(562

)

 

 

59,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

20,908

 

 

4,323

 

 

(1,869

)

 

 

(711

)

 

 

(4,891

)

 

 

17,760

Acquisition-related expenses

 

 

1,289

 

 

708

 

 

1,094

 

 

 

253

 

 

 

434

 

 

 

3,778

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

661

 

 

-

 

 

4,356

 

 

 

-

 

 

 

453

 

 

 

5,470

Adjusted income (loss) from operations

 

$

22,858

 

$

5,031

 

$

3,581

 

 

$

(458

)

 

$

(4,004

)

 

$

27,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30, 2022

 

 

Small UAS

 

TMS

 

MUAS

 

HAPS

 

All other

 

Total

Revenue

 

$

178,201

 

$

76,415

 

 

$

93,156

 

 

$

43,325

 

$

54,635

 

 

$

445,732

 

Gross margin

 

 

83,759

 

 

24,486

 

 

 

6,155

 

 

 

15,533

 

 

11,303

 

 

 

141,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

28,980

 

 

(3,120

)

 

 

(27,715

)

 

 

8,056

 

 

(16,088

)

 

 

(9,887

)

Acquisition-related expenses

 

 

502

 

 

297

 

 

 

1,994

 

 

 

123

 

 

1,938

 

 

 

4,854

 

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

2,828

 

 

-

 

 

 

22,170

 

 

 

-

 

 

11,709

 

 

 

36,707

 

Adjusted income (loss) from operations

 

$

32,310

 

$

(2,823

)

 

$

(3,551

)

 

$

8,179

 

$

(2,441

)

 

$

31,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30, 2021

 

 

Small UAS

 

TMS

 

MUAS

 

HAPS

 

All other

 

Total

Revenue

 

$

235,854

 

$

87,268

 

 

$

15,837

 

 

$

42,426

 

$

13,527

 

 

$

394,912

Gross margin

 

 

119,062

 

 

26,675

 

 

 

2,965

 

 

 

13,038

 

 

2,818

 

 

 

164,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

58,194

 

 

(3,131

)

 

 

(1,869

)

 

 

268

 

 

(10,149

)

 

 

43,313

Acquisition-related expenses

 

 

3,026

 

 

1,661

 

 

 

1,682

 

 

 

593

 

 

1,019

 

 

 

7,981

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

2,649

 

 

-

 

 

 

4,356

 

 

 

-

 

 

453

 

 

 

7,458

Adjusted income (loss) from operations

 

$

63,869

 

$

(1,470

)

 

$

4,169

 

 

$

861

 

$

(8,677

)

 

$

58,752

AeroVironment, Inc.

Reconciliation of non-GAAP Earnings per Diluted Share (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months
Ended

 

Three Months
Ended

 

Year Ended

 

Year Ended

 

 

April 30, 2022

 

April 30, 2021

 

April 30, 2022

 

April 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per diluted share

 

$

0.29

 

 

$

0.44

 

$

(0.17

)

 

$

0.96

Acquisition-related expenses

 

 

0.02

 

 

 

0.12

 

 

0.18

 

 

 

0.26

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

0.25

 

 

 

0.18

 

 

1.17

 

 

 

0.24

Sale of ownership in HAPSMobile Inc. joint venture

 

 

(0.26

)

 

 

 

 

(0.25

)

 

 

HAPSMobile Inc. JV impairment of investment in Loon LLC

 

 

 

 

 

 

 

 

 

 

0.34

Legal accrual related to our former EES business

 

 

 

 

 

0.30

 

 

0.32

 

 

 

0.30

Earnings per diluted share as adjusted (Non-GAAP)

 

$

0.30

 

 

 

1.04

 

$

1.25

 

 

$

2.10

Reconciliation of non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

Year Ended

 

Year Ended

(in millions)

 

April 30, 2022

 

April 30, 2021

Net (loss) income

 

$

(4

)

 

$

23

Interest expense, net

 

 

5

 

 

 

1

(Benefit from) provision for income taxes

 

 

(10

)

 

 

1

Depreciation and amortization

 

 

61

 

 

 

19

EBITDA (Non-GAAP)

 

 

52

 

 

 

44

Amortization of purchase accounting adjustment included in loss on disposal of property and equipment

 

 

1

 

 

 

Stock-based compensation

 

 

5

 

 

 

7

HAPSMobile Inc. joint venture impairment of investment in Loon LLC

 

 

 

 

 

10

Sale of ownership in HAPSMobile Inc. joint venture

 

 

(6

)

 

 

Equity method investment gain

 

 

(5

)

 

 

Legal accrual related to our former EES business

 

 

10

 

 

 

9

Acquisition-related expenses

 

 

5

 

 

 

8

Adjusted EBITDA (Non-GAAP)

 

$

62

 

 

$

78

Reconciliation of Forecast Earnings per Diluted Share (Unaudited)

 

 

 

 

 

 

Fiscal year ending

 

 

April 30, 2023

Forecast earnings per diluted share

 

$

0.42 - 0.72

Acquisition-related expenses

 

 

0.01

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

0.92

Forecast earnings per diluted share as adjusted (Non-GAAP)

 

$

1.35 - 1.65

Reconciliation of 2023 Forecast and Fiscal Year 2022 Actual Non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

Fiscal year ending

 

Fiscal year ended

(in millions)

 

April 30, 2023

 

April 30, 2022

Net income (loss)

 

$

11 - 18

 

 

$

(4

)

Interest expense, net

 

 

8

 

 

 

5

 

Benefit from income taxes

 

 

(5) - (2

)

 

 

(10

)

Depreciation and amortization

 

 

60

 

 

 

61

 

EBITDA (Non-GAAP)

 

 

74 - 84

 

 

 

52

 

Amortization of purchase accounting adjustment included in loss on disposal of property and equipment

 

 

 

 

 

1

 

Stock-based compensation

 

 

7

 

 

 

5

 

Sale of ownership in HAPSMobile Inc. joint venture

 

 

 

 

 

(6

)

Equity method investment gain

 

 

 

 

 

(5

)

Legal accrual related to our former EES business

 

 

 

 

 

10

 

Acquisition-related expenses

 

 

1

 

 

 

5

 

Adjusted EBITDA (Non-GAAP)

 

$

82 - 92

 

 

$

62

Statement Regarding Non-GAAP Measures

The non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing our results that, when reconciled to the corresponding GAAP measures, help our investors to understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. In addition, management uses these non-GAAP measures to evaluate our operating and financial performance.

Non-GAAP Adjusted Operating Income

Adjusted operating income is defined as operating income before intangible amortization, amortization of non-cash purchase accounting adjustments, and acquisition related expenses.

Non-GAAP Earnings per Diluted Share

We exclude the acquisition-related expenses, amortization of acquisition-related intangible assets and one-time non-operating items because we believe this facilitates more consistent comparisons of operating results over time between our newly acquired and existing businesses, and with our peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation and that intangible asset amortization will recur in future periods until such intangible assets have been fully amortized.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITDA is defined as net income before interest income, interest expense, income tax expense (benefit) and depreciation and amortization including amortization of purchase accounting adjustments, adjusted for the impact of certain other items, including stock-based compensation, acquisition related expenses, equity method investment gains or losses, and one-time non-operating gains or losses. We present Adjusted EBITDA, which is not a recognized financial measure under U.S. GAAP, because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe this facilitates more consistent comparisons of operating results over time between our newly acquired and existing businesses, and with our peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation, intangible asset amortization will recur in future periods until such intangible assets have been fully amortized and that interest and income tax expenses will recur in future periods. In addition, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

Jonah Teeter-Balin
+1 (805) 520-8350 x4278
https://investor.avinc.com/contact-us

Source: AeroVironment, Inc.