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Press Release

March 3, 2022 at 4:10 PM EST

AeroVironment, Inc. Announces Fiscal 2022 Third Quarter Results

ARLINGTON, Va.--(BUSINESS WIRE)--Mar. 3, 2022-- AeroVironment, Inc. (NASDAQ: AVAV), a global leader in intelligent, multi-domain robotic systems, today reported financial results for its fiscal third quarter ended January 29, 2022.

“The Company continued to face several challenges during the third quarter, particularly in terms of supply chain constraints, the ongoing effects from the federal government’s Continuing Resolution, and a tight labor market,” said Wahid Nawabi, AeroVironment chairman, president and chief executive officer. “However, these issues were anticipated, and we made measurable progress in addressing and mitigating such headwinds going forward. The Company’s results were largely in line with our forecast, although certain work was pushed into the fourth quarter, and we are maintaining our guidance for fiscal year 2022.

“We’re actively taking steps to reduce costs, manage working capital, and increase operational efficiency during this challenging operating environment. This includes partnering with suppliers to improve delivery times, consolidating our facilities footprint, and streamlining our workforce. While such actions, in the near term, negatively impact both margins and working capital, they improve product throughput and overall customer satisfaction while positioning us for future success.

“We’re pleased with our solid backlog as well as the many opportunities which lie ahead for AeroVironment. Our focus on winning the US Army’s Future Tactical UAS – FTUAS – Increment 1 serves as the proving ground for our Medium UAS systems which, if all goes well, could lead to significant contracts in the quarters to come. Given this opportunity, and expanding demand from overseas customers, I believe the Company is on the right path for better results in fiscal 2023 – including increased margins, stronger organic growth, and higher cash flow. We’re investing in leading-edge technologies that will provide for years of solid performance and the returns our investors have come to expect.”

FISCAL 2022 THIRD QUARTER RESULTS

Revenue for the third quarter of fiscal 2022 was $90.1 million, an increase of 14% from the third quarter of fiscal 2021 revenue of $78.8 million. The increase in revenue reflects higher service revenue of $27.1 million, partially offset by a decrease in product sales of $15.7 million. The increase in revenue was primarily due to revenue from the Medium Unmanned Aircraft Systems (“MUAS”) segment of $21.2 million and the Unmanned Ground Vehicles product line of $9.6 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 customer-funded research and development revenue of $7.7 million. These increases were partially offset by a decrease in revenue in the Small Unmanned Aircraft Systems (“Small UAS”) segment of $26.2 million.

Gross margin for the third quarter of fiscal 2022 was $21.4 million, a decrease of 25% from the third quarter of fiscal 2021 gross margin of $28.6 million. The decrease in gross margin reflects lower product margin of $9.3 million, partially offset by higher service margin of $2.1 million. As a percentage of revenue, gross margin decreased to 24% from 36%. Gross margin was negatively impacted by $5.1 million of intangible amortization expense and other related non-cash purchase accounting expenses in the third quarter of fiscal 2022 as compared to $0.6 million in the third 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.

Loss from operations for the third quarter of fiscal 2022 was $14.1 million, an increase of $13.5 million from the third quarter of fiscal 2021 loss from operations of $0.6 million. The increase in loss from operations was primarily the result of a decrease in gross margin of $7.2 million and an increase in selling, general and administrative (“SG&A”) expense of $6.9 million, partially offset by a decrease in research and development (“R&D”) expense of $0.6 million. SG&A expense included acquisition-related expenses and intangible amortization expense of $4.8 million in the third quarter of fiscal 2022 as compared to $3.5 million in the third quarter of fiscal 2021. SG&A expense in the current quarter also included additional headcount and support costs associated with the acquisitions of Arcturus, ISG and Telerob.

Other expense, net, for the third quarter of fiscal 2022 was $1.5 million, as compared to other income, net of $0.1 million for the third quarter of fiscal 2021. The increase in other expense, net was primarily due to higher interest expense of $1.5 million resulting from the term debt issued concurrent with the acquisition of Arcturus.

Benefit from income taxes for the third quarter of fiscal 2022 was $15.4 million, as compared to $0.9 million for the third quarter of fiscal 2021. The increase in benefit from income taxes was primarily due to the decrease in income before income taxes and an increase in certain federal income tax credits.

Equity method investment income, net of tax, for the third quarter of fiscal 2022 was $0.2 million, as compared to equity method investment loss, net of tax of $0.1 million for the third quarter of fiscal 2021.

Net income attributable to AeroVironment for the third quarter of fiscal 2022 was $10 thousand, or $0 per diluted share, as compared to $0.2 million, or $0.01 per diluted share, for the third quarter of fiscal 2021.

Non-GAAP earnings per diluted share was $0.32 for the third quarter of fiscal 2022, as compared to $0.14 for the third quarter of fiscal 2021.

BACKLOG

As of January 29, 2022, funded backlog (remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $226.3 million, as compared to $211.8 million as of April 30, 2021.

FISCAL 2022 — REVISED OUTLOOK FOR THE FULL YEAR (UNCHANGED)

For the fiscal year 2022, the Company continues to expect revenue of between $440 million and $460 million, net loss of between $12 million and $8 million, Non-GAAP adjusted EBITDA of between $59 million and $65 million, loss per diluted share of between $(0.47) and $(0.33) and non-GAAP earnings per diluted share, which excludes litigation settlement expenses, acquisition-related expenses and amortization of intangible assets, of between $1.23 and $1.37.

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, Thursday, March 3, 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 9080614 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 second quarter fiscal 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; changes in the supply and/or demand and/or prices for our products and services; the activities of competitors and increased competition; failure of the markets in which we operate to grow; 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; changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; risk of litigation; product liability, infringement and other claims; changes in the regulatory environment; the impact of the outbreak related to the strain of coronavirus known as COVID-19 on our business; 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. 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

 

Nine Months Ended

 

 

 

January 29,

 

January 30,

 

January 29,

 

January 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

42,599

 

 

$

58,348

 

 

$

166,713

 

 

$

182,233

 

 

Contract services

 

 

47,494

 

 

 

20,434

 

 

 

146,397

 

 

 

76,664

 

 

 

 

 

90,093

 

 

 

78,782

 

 

 

313,110

 

 

 

258,897

 

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

29,294

 

 

 

35,746

 

 

 

100,821

 

 

 

102,039

 

 

Contract services

 

 

39,363

 

 

 

14,395

 

 

 

119,675

 

 

 

51,955

 

 

 

 

 

68,657

 

 

 

50,141

 

 

 

220,496

 

 

 

153,994

 

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

13,305

 

 

 

22,602

 

 

 

65,892

 

 

 

80,194

 

 

Contract services

 

 

8,131

 

 

 

6,039

 

 

 

26,722

 

 

 

24,709

 

 

 

 

 

21,436

 

 

 

28,641

 

 

 

92,614

 

 

 

104,903

 

 

Selling, general and administrative

 

 

22,549

 

 

 

15,652

 

 

 

74,496

 

 

 

42,640

 

 

Research and development

 

 

13,013

 

 

 

13,631

 

 

 

41,018

 

 

 

36,710

 

 

(Loss) income from operations

 

 

(14,126

)

 

 

(642

)

 

 

(22,900

)

 

 

25,553

 

 

Other (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest (expense) income, net

 

 

(1,510

)

 

 

94

 

 

 

(4,164

)

 

 

417

 

 

Other income (expense), net

 

 

34

 

 

 

(37

)

 

 

(10,360

)

 

 

68

 

 

(Loss) income before income taxes

 

 

(15,602

)

 

 

(585

)

 

 

(37,424

)

 

 

26,038

 

 

(Benefit from) provision for income taxes

 

 

(15,396

)

 

 

(924

)

 

 

(25,864

)

 

 

2,774

 

 

Equity method investment income (loss), net of tax

 

 

171

 

 

 

(81

)

 

 

163

 

 

 

(10,891

)

 

Net (loss) income

 

 

(35

)

 

 

258

 

 

 

(11,397

)

 

 

12,373

 

 

Net loss (income) attributable to noncontrolling interest

 

 

45

 

 

 

(47

)

 

 

(49

)

 

 

12

 

 

Net income (loss) attributable to AeroVironment, Inc.

 

$

10

 

 

$

211

 

 

$

(11,446

)

 

$

12,385

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

 

$

0.01

 

 

$

(0.46

)

 

$

0.52

 

 

Diluted

 

$

 

 

$

0.01

 

 

$

(0.46

)

 

$

0.51

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,710,991

 

 

 

23,942,782

 

 

 

24,657,846

 

 

 

23,924,017

 

 

Diluted

 

 

24,879,643

 

 

 

24,260,874

 

 

 

24,657,846

 

 

 

24,216,371

 

 

AeroVironment, Inc.

Consolidated Balance Sheets

(In thousands except share data)

 

 

 

 

 

 

 

 

 

 

January 29,

 

April 30,

 

 

 

2022

 

 

2021

 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

82,528

 

 

$

148,741

 

Short-term investments

 

 

3,969

 

 

 

31,971

 

Accounts receivable, net of allowance for doubtful accounts of $577 at January 29, 2022 and $595 at April 30, 2021

 

 

41,739

 

 

 

62,647

 

Unbilled receivables and retentions

 

 

97,993

 

 

 

71,632

 

Inventories

 

 

89,616

 

 

 

71,646

 

Income taxes receivable

 

 

26,578

 

 

 

 

Prepaid expenses and other current assets

 

 

12,099

 

 

 

15,001

 

Total current assets

 

 

354,522

 

 

 

401,638

 

Long-term investments

 

 

12,388

 

 

 

12,156

 

Property and equipment, net

 

 

65,377

 

 

 

58,896

 

Operating lease right-of-use assets

 

 

24,848

 

 

 

22,902

 

Deferred income taxes

 

 

3,258

 

 

 

2,061

 

Intangibles, net

 

 

103,825

 

 

 

106,268

 

Goodwill

 

 

335,164

 

 

 

314,205

 

Other assets

 

 

5,881

 

 

 

10,440

 

Total assets

 

$

905,263

 

 

$

928,566

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

15,118

 

 

$

24,841

 

Wages and related accruals

 

 

21,207

 

 

 

28,068

 

Customer advances

 

 

6,864

 

 

 

7,183

 

Current portion of long-term debt

 

 

10,000

 

 

 

10,000

 

Current operating lease liabilities

 

 

6,150

 

 

 

6,154

 

Income taxes payable

 

 

247

 

 

 

861

 

Other current liabilities

 

 

27,897

 

 

 

19,078

 

Total current liabilities

 

 

87,483

 

 

 

96,185

 

Long-term debt, net of current portion

 

 

180,398

 

 

 

187,512

 

Non-current operating lease liabilities

 

 

20,678

 

 

 

19,103

 

Other non-current liabilities

 

 

5,273

 

 

 

10,141

 

Liability for uncertain tax positions

 

 

3,518

 

 

 

3,518

 

Deferred income taxes

 

 

5,198

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—10,000,000; none issued or outstanding at January 29, 2022 and April 30, 2021

 

 

 

 

 

 

Common stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—100,000,000

 

 

 

 

 

 

 

Issued and outstanding shares—24,915,105 shares at January 29, 2022 and 24,777,295 shares at April 30, 2021

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

265,885

 

 

 

260,327

 

Accumulated other comprehensive (loss) income

 

 

(3,434

)

 

 

343

 

Retained earnings

 

 

339,975

 

 

 

351,421

 

Total AeroVironment, Inc. stockholders’ equity

 

 

602,428

 

 

 

612,093

 

Noncontrolling interest

 

 

287

 

 

 

14

 

Total equity

 

 

602,715

 

 

 

612,107

 

Total liabilities and stockholders’ equity

 

$

905,263

 

 

$

928,566

 

AeroVironment, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

January 29,

 

January 30,

 

 

 

2022

 

 

2021

 

 

Operating activities

 

 

 

 

 

 

Net (loss) income

 

$

(11,397

)

 

$

12,373

 

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

47,437

 

 

 

8,650

 

 

(Income) loss from equity method investments, net

 

 

(799

)

 

 

10,891

 

 

Amortization of debt issuance costs

 

 

386

 

 

 

 

 

Realized gain from sale of available-for-sale investments

 

 

 

 

 

(11

)

 

Provision for doubtful accounts

 

 

(20

)

 

 

(145

)

 

Other non-cash expense (income)

 

 

440

 

 

 

(473

)

 

Non-cash lease expense

 

 

5,033

 

 

 

3,592

 

 

Loss on foreign currency transactions

 

 

34

 

 

 

1

 

 

Deferred income taxes

 

 

(1,195

)

 

 

(897

)

 

Stock-based compensation

 

 

3,957

 

 

 

4,754

 

 

Loss on disposal of property and equipment

 

 

5,063

 

 

 

2

 

 

Amortization of debt securities

 

 

117

 

 

 

143

 

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

Accounts receivable

 

 

21,901

 

 

 

47,184

 

 

Unbilled receivables and retentions

 

 

(25,597

)

 

 

14,753

 

 

Inventories

 

 

(21,590

)

 

 

(7,569

)

 

Income taxes receivable

 

 

(26,208

)

 

 

 

 

Prepaid expenses and other assets

 

 

1,789

 

 

 

(1,622

)

 

Accounts payable

 

 

(10,720

)

 

 

(3,346

)

 

Other liabilities

 

 

(11,807

)

 

 

(9,318

)

 

Net cash (used in) provided by operating activities

 

 

(23,176

)

 

 

78,962

 

 

Investing activities

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(17,064

)

 

 

(8,472

)

 

Equity method investments

 

 

(6,884

)

 

 

(2,150

)

 

Business acquisitions, net of cash acquired

 

 

(46,150

)

 

 

 

 

Redemptions of available-for-sale investments

 

 

35,851

 

 

 

130,066

 

 

Purchases of available-for-sale investments

 

 

(2,987

)

 

 

(125,644

)

 

Other

 

 

225

 

 

 

 

 

Net cash used in investing activities

 

 

(37,009

)

 

 

(6,200

)

 

Financing activities

 

 

 

 

 

 

 

Principal payments of loan

 

 

(7,500

)

 

 

 

 

Holdback and retention payments for business acquisition

 

 

(5,991

)

 

 

(1,492

)

 

Tax withholding payment related to net settlement of equity awards

 

 

(1,176

)

 

 

(1,955

)

 

Exercise of stock options

 

 

2,776

 

 

 

86

 

 

Other

 

 

(23

)

 

 

 

 

Net cash used in financing activities

 

 

(11,914

)

 

 

(3,361

)

 

Effects of currency translation on cash and cash equivalents

 

 

(613

)

 

 

 

 

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

 

 

(72,712

)

 

 

69,401

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

157,063

 

 

 

255,142

 

 

Cash, cash equivalents and restricted cash at end of period

 

$

84,351

 

 

$

324,543

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

Cash paid, net during the period for:

 

 

 

 

 

 

 

Income taxes

 

$

1,923

 

 

$

2,364

 

 

Interest

 

$

3,465

 

 

$

 

 

Non-cash activities

 

 

 

 

 

 

 

Unrealized loss on available-for-sale investments, net of deferred tax benefit of $1 and $2 for the nine months ended January 29, 2022 and January 30, 2021, respectively

 

$

6

 

 

$

56

 

 

Change in foreign currency translation adjustments

 

$

(3,771

)

 

$

75

 

 

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

 

$

16,680

 

 

$

 

 

Acquisitions of property and equipment included in accounts payable

 

$

626

 

 

$

746

 

 

AeroVironment, Inc.

Reportable Segment Results (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended January 29, 2022

 

 

Small UAS

 

TMS

 

MUAS

 

All other

 

Total

Revenue

 

$

24,366

 

 

$

18,603

 

 

$

21,168

 

 

$

25,956

 

 

$

90,093

 

Gross margin

 

 

8,656

 

 

 

5,209

 

 

 

335

 

 

 

7,236

 

 

 

21,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

(3,606

)

 

 

(1,289

)

 

 

(8,623

)

 

 

(608

)

 

 

(14,126

)

Acquisition-related expenses

 

 

99

 

 

 

54

 

 

 

41

 

 

 

174

 

 

 

368

 

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

707

 

 

 

-

 

 

 

5,641

 

 

 

3,035

 

 

 

9,383

 

Adjusted income (loss) from operations

 

$

(2,800

)

 

$

(1,235

)

 

$

(2,941

)

 

$

2,601

 

 

$

(4,375

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended January 30, 2021

 

 

Small UAS

 

TMS

 

MUAS

 

All other

 

Total

Revenue

 

$

50,536

 

$

19,598

 

 

$

-

 

$

8,648

 

 

$

78,782

 

Gross margin

 

 

22,017

 

 

4,889

 

 

 

-

 

 

1,735

 

 

 

28,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

6,702

 

 

(2,314

)

 

 

-

 

 

(5,030

)

 

 

(642

)

Acquisition-related expenses

 

 

1,408

 

 

773

 

 

 

477

 

 

750

 

 

 

3,408

 

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

661

 

 

-

 

 

 

-

 

 

1

 

 

 

662

 

Adjusted income (loss) from operations

 

$

8,771

 

$

(1,541

)

 

$

477

 

$

(4,279

)

 

$

3,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended January 29, 2022

 

 

Small UAS

 

TMS

 

MUAS

 

All other

 

Total

Revenue

 

$

119,004

 

$

56,197

 

 

$

70,072

 

 

$

67,837

 

 

$

313,110

 

Gross margin

 

 

53,330

 

 

17,420

 

 

 

5,739

 

 

 

16,125

 

 

 

92,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

11,729

 

 

(1,705

)

 

 

(22,004

)

 

 

(10,920

)

 

 

(22,900

)

Acquisition-related expenses

 

 

819

 

 

468

 

 

 

1,533

 

 

 

1,649

 

 

 

4,469

 

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

2,121

 

 

-

 

 

 

17,190

 

 

 

9,526

 

 

 

28,837

 

Adjusted income (loss) from operations

 

$

14,669

 

$

(1,237

)

 

$

(3,281

)

 

$

255

 

 

$

10,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended January 30, 2021

 

 

Small UAS

 

TMS

 

MUAS

 

All other

 

Total

Revenue

 

$

165,003

 

$

48,093

 

 

$

-

 

$

45,801

 

 

$

258,897

Gross margin

 

 

79,195

 

 

12,752

 

 

 

-

 

 

12,956

 

 

 

104,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

37,285

 

 

(7,454

)

 

 

-

 

 

(4,278

)

 

 

25,553

Acquisition-related expenses

 

 

1,579

 

 

867

 

 

 

535

 

 

841

 

 

 

3,822

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

2,037

 

 

-

 

 

 

-

 

 

-

 

 

 

2,037

Adjusted income (loss) from operations

 

$

40,901

 

$

(6,587

)

 

$

535

 

$

(3,437

)

 

$

31,412

AeroVironment, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

 

January 29, 2022

 

January 30, 2021

 

January 29, 2022

 

January 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per diluted share

 

$

 

$

0.01

 

$

(0.46

)

 

$

0.51

Acquisition-related expenses

 

 

0.02

 

 

0.11

 

 

0.16

 

 

 

0.14

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

0.30

 

 

0.02

 

 

0.92

 

 

 

0.06

HAPSMobile Inc. JV impairment of investment in Loon LLC

 

 

 

 

 

 

 

 

 

0.35

Legal accrual related to our former EES business

 

 

 

 

 

 

0.32

 

 

 

Earnings per diluted share as adjusted (Non-GAAP)

 

$

0.32

 

 

0.14

 

$

0.94

 

 

$

1.06

Reconciliation of non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

Nine Months Ended

(in millions)

 

January 29, 2022

 

January 30, 2021

Net (loss) income

 

$

(11

)

 

$

12

Interest expense, net

 

 

4

 

 

 

Benefit from income taxes

 

 

(26

)

 

 

3

Depreciation and amortization

 

 

48

 

 

 

9

EBITDA (Non-GAAP)

 

 

15

 

 

 

24

HAPSMobile Inc. JV impairment of investment in Loon LLC

 

 

 

 

 

10

Legal accrual related to our former EES business

 

 

10

 

 

 

Acquisition-related expenses

 

 

5

 

 

 

4

Adjusted EBITDA (Non-GAAP)

 

$

30

 

 

$

38

Reconciliation of Forecast Earnings per Diluted Share (Unaudited)

 

 

 

 

 

 

Fiscal year ending

 

 

April 30, 2022

Forecast loss per diluted share

 

$

(0.47) - (0.33)

Acquisition-related expenses

 

 

0.16

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

1.22

Legal accrual related to our former EES business

 

 

0.32

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

 

$

1.23 - 1.37

Reconciliation of 2022 Forecast and Fiscal Year 2021 Actual Non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

Fiscal year ending

 

Fiscal year ending

(in millions)

 

April 30, 2022

 

April 30, 2021

Net (loss) income

 

$

(12) - (8

)

 

$

23

Interest expense, net

 

 

5

 

 

 

1

Benefit from income taxes

 

 

(12) - (9

)

 

 

1

Depreciation and amortization

 

 

65

 

 

 

19

EBITDA (Non-GAAP)

 

 

46 - 53

 

 

 

44

HAPSMobile Inc. JV impairment of investment in Loon LLC

 

 

 

 

 

10

Equity method investment gain

 

 

(2

)

 

 

Legal accrual related to our former EES business

 

 

10

 

 

 

9

Acquisition-related expenses

 

 

5 - 4

 

 

 

9

Adjusted EBITDA (Non-GAAP)

 

$

59 - 65

 

 

$

72

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 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.