AeroVironment, Inc. Announces Fiscal 2015 Second Quarter Results
"Strong second quarter order flow in our small UAS business increased
funded backlog by 50 percent sequentially to
FISCAL 2015 SECOND QUARTER RESULTS
Revenue for the second quarter of fiscal 2015 was
Gross margin for the second quarter of fiscal 2015 was
Loss from operations for the second quarter of fiscal 2015 was
Other expense, net, for the second quarter of fiscal 2015 was
Net loss for the second quarter of fiscal 2015 was
Loss per share for the second quarter of fiscal 2015 was
FISCAL 2015 YEAR-TO-DATE RESULTS
Revenue for the first six months of fiscal 2015 was
Gross margin for the first six months of fiscal 2015 was
Loss from operations for the first six months of fiscal 2015 was
Other income, net, for the first six months of fiscal 2015 was
Net loss for the first six months of fiscal 2015 was
Loss per share for the first six months of fiscal 2015 was
BACKLOG
As of
FISCAL 2015 — OUTLOOK FOR THE FULL YEAR
For fiscal 2015, the company continues to expect to generate revenue of
between
The foregoing estimates are forward looking and reflect management's
view of current and future market conditions, including certain
assumptions with respect to our ability to 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
CONFERENCE CALL
In conjunction with this release,
Investors may dial into the call at (877) 561-2749 (U.S.) or (678) 809-1029 (international) 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
Audio Replay Options
An audio replay of the event will be archived on the Investor Relations
page of the company's website, at http://investor.avinc.com.
The audio replay will also be available via telephone from
ABOUT AEROVIRONMENT, INC.
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 timing and/or amount of government
spending; changes in the supply and/or demand and/or prices for our
products and services; 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
AeroVironment, Inc. Consolidated Statements of Operations (Unaudited) (In thousands except share and per share data) |
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Three Months Ended | Six Months Ended | ||||||||||||
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2014 | 2013 | 2014 | 2013 | ||||||||||
Revenue: | |||||||||||||
Product sales | $ | 42,874 | $ | 51,537 | $ | 85,685 | $ | 78,711 | |||||
Contract services | 9,790 | 13,330 | 18,845 | 30,273 | |||||||||
52,664 | 64,867 | 104,530 | 108,984 | ||||||||||
Cost of sales: | |||||||||||||
Product sales | 27,779 | 32,143 | 58,576 | 52,698 | |||||||||
Contract services | 7,014 | 8,846 | 14,029 | 19,863 | |||||||||
34,793 | 40,989 | 72,605 | 72,561 | ||||||||||
Gross margin: | |||||||||||||
Product sales | 15,095 | 19,394 | 27,109 | 26,013 | |||||||||
Contract services | 2,776 | 4,484 | 4,816 | 10,410 | |||||||||
17,871 | 23,878 | 31,925 | 36,423 | ||||||||||
Selling, general and administrative | 13,470 | 13,084 | 26,873 | 25,543 | |||||||||
Research and development | 8,531 | 6,861 | 15,655 | 14,051 | |||||||||
(Loss) income from operations | (4,130 | ) | 3,933 | (10,603 | ) | (3,171 | ) | ||||||
Other income (expense): | |||||||||||||
Interest income | 193 | 195 | 405 | 400 | |||||||||
Other (expense) income | (583 | ) | (2,307 | ) | 8 | (5,701 | ) | ||||||
(Loss) income before income taxes | (4,520 | ) | 1,821 | (10,190 | ) | (8,472 | ) | ||||||
(Benefit) provision for income taxes | (1,619 | ) | 166 | (3,680 | ) | (2,917 | ) | ||||||
Net (loss) income | $ | (2,901 | ) | $ | 1,655 | $ | (6,510 | ) | $ | (5,555 | ) | ||
(Loss) earnings per share data: | |||||||||||||
Basic | $ | (0.13 | ) | $ | 0.07 | $ | (0.29 | ) | $ | (0.25 | ) | ||
Diluted | $ | (0.13 | ) | $ | 0.07 | $ | (0.29 | ) | $ | (0.25 | ) | ||
Weighted average shares outstanding: | |||||||||||||
Basic | 22,878,410 | 22,273,629 | 22,840,465 | 22,256,292 | |||||||||
Diluted | 22,878,410 | 22,697,590 | 22,840,465 | 22,256,292 | |||||||||
AeroVironment, Inc. Reconciliation of (Loss) Earnings per Share (Unaudited) |
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Three Months Ended | Six Months Ended | |||||||||||||||
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2014 | 2013 | 2014 | 2013 | |||||||||||||
(Loss) earnings per diluted share as adjusted | $ | (0.12 | ) | $ | 0.14 | $ | (0.30 | ) | $ | (0.06 | ) | |||||
(Decrease) increase in fair value of CybAero investment | (0.01 | ) | (0.07 | ) | 0.01 | (0.19 | ) | |||||||||
(Loss) earnings per diluted share as reported | $ | (0.13 | ) | $ | 0.07 | $ | (0.29 | ) | $ | (0.25 | ) | |||||
AeroVironment, Inc. Consolidated Balance Sheets (In thousands except share data) |
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2014 |
2014 |
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(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 126,339 | $ | 126,969 | |||
Short-term investments | 81,120 | 70,639 | |||||
Accounts receivable, net of allowance for doubtful accounts of |
31,096 | 31,739 | |||||
Unbilled receivables and retentions | 7,103 | 10,929 | |||||
Inventories, net | 51,804 | 50,699 | |||||
Income tax receivable | 4,876 | 6,584 | |||||
Deferred income taxes | 4,996 | 5,038 | |||||
Prepaid expenses and other current assets | 4,233 | 4,260 | |||||
Total current assets | 311,567 | 306,857 | |||||
Long-term investments | 49,718 | 50,505 | |||||
Property and equipment, net | 16,889 | 19,997 | |||||
Deferred income taxes | 7,118 | 6,721 | |||||
Other assets | 837 | 874 | |||||
Total assets | $ | 386,129 | $ | 384,954 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 18,988 | $ | 13,906 | |||
Wages and related accruals | 9,889 | 14,083 | |||||
Customer advances | 4,655 | 2,984 | |||||
Other current liabilities | 9,709 | 6,762 | |||||
Total current liabilities | 43,241 | 37,735 | |||||
Deferred rent | 1,231 | 1,239 | |||||
Liability for uncertain tax positions | 3,513 | 3,513 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock, |
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Authorized shares — 10,000,000; none issued or outstanding | — | — | |||||
Common stock, |
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Authorized shares — 100,000,000 | |||||||
Issued and outstanding shares — 23,324,276 at |
2 | 2 | |||||
Additional paid-in capital | 146,431 | 143,648 | |||||
Accumulated other comprehensive loss | (859 | ) | (263 | ) | |||
Retained earnings | 192,570 | 199,080 | |||||
Total stockholders' equity | 338,144 | 342,467 | |||||
Total liabilities and stockholders' equity | $ | 386,129 | $ | 384,954 | |||
AeroVironment, Inc. Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
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Six Months Ended | ||||||||
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Operating activities | ||||||||
Net loss | $ | (6,510 | ) | $ | (5,555 | ) | ||
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 4,303 | 4,504 | ||||||
Provision for doubtful accounts | (105 | ) | 309 | |||||
Deferred income taxes | 42 | (233 | ) | |||||
Realized gain on sale of equity securities | (347 | ) | — | |||||
Stock-based compensation | 1,745 | 1,840 | ||||||
Foreign currency losses | 281 | — | ||||||
(Increase) decrease in fair value of conversion feature of convertible bonds | (73 | ) | 5,711 | |||||
Tax benefit from exercise of stock options | 11 | 151 | ||||||
Excess tax benefit from stock-based compensation | (348 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 748 | (16,777 | ) | |||||
Unbilled receivables and retentions | 3,826 | 4,048 | ||||||
Inventories | (1,105 | ) | 1,932 | |||||
Income tax receivable | 1,708 | 3,657 | ||||||
Other assets | (61 | ) | 9 | |||||
Accounts payable | 5,082 | (4,370 | ) | |||||
Other liabilities | 764 | (4,899 | ) | |||||
Net cash provided by (used in) operating activities | 9,961 | (9,673 | ) | |||||
Investing activities | ||||||||
Acquisitions of property and equipment | (1,070 | ) | (6,047 | ) | ||||
Acquisitions of distribution and licensing rights | — | (750 | ) | |||||
Net (purchases) redemptions of held-to-maturity investments | (19,586 | ) | 6,934 | |||||
Net sales of available-for-sale investments | 9,038 | 175 | ||||||
Net cash (used in) provided by investing activities | (11,618 | ) | 312 | |||||
Financing activities | ||||||||
Excess tax benefit from exercise of stock options | 348 | — | ||||||
Exercise of stock options | 679 | 155 | ||||||
Net cash provided by financing activities | 1,027 | 155 | ||||||
Net decrease in cash and cash equivalents | (630 | ) | (9,206 | ) | ||||
Cash and cash equivalents at beginning of period | 126,969 | 75,332 | ||||||
Cash and cash equivalents at end of period | $ | 126,339 | $ | 66,126 | ||||
Supplemental disclosure: | ||||||||
Unrealized loss (gain) on available-for-sale investments recorded in
other comprehensive (loss) income, net of deferred taxes of |
$ | 596 | $ | (29 | ) | |||
Reportable Segment Results are as Follows (Unaudited): (In thousands) |
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Three Months Ended | Six Months Ended | ||||||||||||
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2014 | 2013 | 2014 | 2013 | ||||||||||
Revenue: | |||||||||||||
UAS | $ | 43,045 | $ | 56,079 | $ | 84,231 | $ | 91,290 | |||||
EES | 9,619 | 8,788 | 20,299 | 17,694 | |||||||||
Total | 52,664 | 64,867 | 104,530 | 108,984 | |||||||||
Cost of sales: | |||||||||||||
UAS | 27,575 | 35,280 | 58,590 | 59,879 | |||||||||
EES | 7,218 | 5,709 | 14,015 | 12,682 | |||||||||
Total | 34,793 | 40,989 | 72,605 | 72,561 | |||||||||
Gross margin: | |||||||||||||
UAS | 15,470 | 20,799 | 25,641 | 31,411 | |||||||||
EES | 2,401 | 3,079 | 6,284 | 5,012 | |||||||||
Total | 17,871 | 23,878 | 31,925 | 36,423 | |||||||||
Selling, general and administrative | 13,470 | 13,084 | 26,873 | 25,543 | |||||||||
Research and development | 8,531 | 6,861 | 15,655 | 14,051 | |||||||||
(Loss) income from operations | (4,130 | ) | 3,933 | (10,603 | ) | (3,171 | ) | ||||||
Other income (expense): | |||||||||||||
Interest income | 193 | 195 | 405 | 400 | |||||||||
Other (expense) income | (583 | ) | (2,307 | ) | 8 | (5,701 | ) | ||||||
(Loss) income before income taxes | $ | (4,520 | ) | $ | 1,821 | $ | (10,190 | ) | $ | (8,472 | ) | ||
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AeroVironment, Inc.
ir@avinc.com
Source: AeroVironment, Inc.
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