UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): March 9, 2010
AEROVIRONMENT,
INC.
(Exact
name of registrant as specified in its charter)
|
Delaware
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001-33261
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95-2705790
|
||
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(State
or other jurisdiction of
incorporation
or organization)
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(Commission
File Number)
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(I.R.S.
Employer Identification No.)
|
||
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181
W. Huntington Drive, Suite 202
|
||||
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Monrovia,
CA
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91016
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|||
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(Address
of Principal Executive
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(Zip
Code)
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|||
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Offices)
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Registrant’s
telephone number, including area code: (626) 357-9983
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General
Instruction A.2. below):
o Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange ct (17 CFR
240.14d-2(B))
o Pre-commencement
communications pursuant to Rule 13e-4(c)) under the Exchange Act (17 CFR
240.13e-4c))
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Item
2.02.
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Results of Operations and
Financial Condition
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On March
9, 2010, AeroVironment, Inc. issued a press release announcing third quarter
financial results for the period ended January 30, 2010, a copy of which is
attached hereto as Exhibit 99.1.
The
information in this Current Report on Form 8-K, including the exhibit, is
furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes
of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, except
as shall be expressly set forth by specific reference in such
filing.
In
addition to historic information, this report, including the exhibit, contains
forward-looking statements regarding events, performance and financial trends.
Various factors could affect future results and could cause actual results to
differ materially from those expressed in or implied by the forward-looking
statements. Some of those factors are identified in the exhibit, and in our
periodic reports filed with the Securities and Exchange Commission.
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Item
9.01.
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Financial Statements and
Exhibits
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(d) Exhibits.
The
following exhibits are filed herewith:
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Exhibit
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||
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Number
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Description
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99.1
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Press
release issued by AeroVironment, Inc., dated March 9,
2010.
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2
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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AEROVIRONMENT,
INC.
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||
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Date: March
9, 2010
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By:
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/s/
Timothy E. Conver
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Timothy
E. Conver
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||
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Chairman,
President and Chief Executive
Officer
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||
3
AeroVironment,
Inc. Announces Fiscal 2010 Third Quarter Results
MONROVIA,
CA, March 9, 2010 — AeroVironment, Inc. (AV) (NASDAQ: AVAV) today reported
financial results for its third quarter ended January 30, 2010.
“In the
third quarter, our team increased production of digital Raven systems and
digital retrofit kits to satisfy customer demand, and made progress positioning
our major development programs for eventual adoption,” said Tim Conver, AV
chairman and chief executive officer. “The quarter produced 18% sequential
growth over the second quarter, even though severe weather conditions limited
acceptance testing of many Raven systems and the sales those systems would have
generated. Continued weakness in the capital equipment markets for our EES
products and delays in orders for Puma and Wasp unmanned aircraft systems also
adversely impacted the quarter.”
“The
Raven systems that were not shipped in the third quarter have already been
shipped in the fourth quarter, contributing to what we expect to be record
quarterly revenue for the company. However, because of the late signing of the
2010 Defense budget and extended government order processing time, most of the
digital Raven purchase orders we expected to receive are still in the
procurement process, and they are not likely to arrive in time to convert into
fourth quarter revenue. We expect the delayed Raven orders to move into our
fiscal 2011, providing us with a strong foundation for achieving growth next
year. Our fundamental market position, customer relationships and long-term
growth prospects remain strong, yet I acknowledge the impact of order timing on
our short-term results,” Conver added.
Third
Quarter Summary:
|
|
·
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Revenue
of $60.9 million
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|
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·
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Operating
margin of 14%
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·
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Earnings
per diluted share of $0.30
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FISCAL
2010 THIRD QUARTER RESULTS
Revenue
for the third quarter of fiscal 2010 was $60.9 million, up 17% from third
quarter fiscal 2009 revenue of $52.2 million. The increase in revenue was
primarily due to higher sales in our Unmanned Aircraft Systems (UAS) segment of
$11.7 million, partially offset by lower sales from our Efficient Energy Systems
(EES) segment of $3.1 million.
Income
from operations for the third quarter of fiscal 2010 was $8.5 million, up 107%
from third quarter fiscal 2009 income from operations of $4.1 million. The
increase in income from operations was primarily due to higher gross margin of
$6.8 million, partially offset by higher selling, general and administrative
(SG&A) expense of $1.9 million and higher research and development (R&D)
expense of $0.5 million.
Net
income for the third quarter of fiscal 2010 was $6.5 million, up 43% from third
quarter fiscal 2009 net income of $4.5 million.
Earnings
per diluted share for the third quarter of fiscal 2010 was $0.30, up 43% from
third quarter fiscal 2009 earnings per diluted share of $0.21.
1
FISCAL
2010 YEAR-TO-DATE RESULTS
Revenue
for the first nine months of fiscal 2010 was $150.2 million, down 12% from the
first nine months of fiscal 2009 revenue of $171.6 million. The decrease in
revenue resulted from lower sales in our UAS segment of $13.8 million and EES
segment of $7.6 million.
Income
from operations for the first nine months of fiscal 2010 was $6.4 million, down
73% from the first nine months of fiscal 2009 income from operations of $23.6
million. The decrease in income from operations was caused by lower gross margin
of $8.4 million, higher SG&A expense of $6.9 million and higher R&D
expense of $1.8 million.
Net
income for the first nine months of fiscal 2010 was $5.1 million, down 72% from
the first nine months of fiscal 2009 net income of $18.4 million.
Earnings
per diluted share for the first nine months of fiscal 2010 was $0.23, down 73%
from the first nine months of fiscal 2009 earnings per diluted share of
$0.84.
BACKLOG
As of
January 30, 2010, funded backlog (unfilled firm orders for which funding is
currently appropriated to us under a customer contract) was $98.7 million
compared to $114.8 million as of April 30, 2009.
FISCAL
2010 — OUTLOOK FOR THE FULL YEAR
For fiscal year 2010, the Company
expects revenue of approximately $245 million plus or minus $5 million, and
operating income margin of 9% to 11%. 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 demand for our products and services,
activities of competitors and 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
In
conjunction with this release, AeroVironment, Inc. will host a conference call
today, Tuesday, March 9, 2010, 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) 718-5092 (U.S.) or (719) 325-4595
(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, March 9, at approximately 4:30
p.m. Pacific Time through Tuesday, March 16, at 9:00 p.m. Pacific Time. Dial
(888) 203-1112 and enter the passcode 6035476. International callers should dial
(719) 457-0820 and enter the same passcode number to access the digital
replay.
2
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 battery-powered, hand-launched UAS to
provide situational awareness to tactical operating units through real-time,
airborne reconnaissance, surveillance and target acquisition. AV's clean
transportation solutions include power cycling and test systems and industrial
electric vehicle charging systems for commercial and institutional customers, as
well as EV home chargers and EV fast chargers for consumers. 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.
-
Financial Tables Follow -
3
AeroVironment,
Inc.
(In
thousands except share and per share data)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
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January
30,
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January
31,
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January
30,
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January
31,
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|||||||||||||
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2010
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2009
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2010
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2009
|
|||||||||||||
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Revenue:
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||||||||||||||||
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Product
sales
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$
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25,353
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$
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30,160
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$
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52,716
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$
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92,746
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||||||||
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Contract
services
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35,508
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22,065
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97,452
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78,871
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||||||||||||
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60,861
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52,225
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150,168
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171,617
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|||||||||||||
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Cost
of sales:
|
||||||||||||||||
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Product
sales
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15,156
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18,682
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31,796
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55,485
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||||||||||||
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Contract
services
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22,224
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16,866
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64,527
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53,885
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||||||||||||
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37,380
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35,548
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96,323
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109,370
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|||||||||||||
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Gross
margin
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23,481
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16,677
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53,845
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62,247
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||||||||||||
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Selling,
general and administrative
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9,833
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7,950
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30,828
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23,900
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||||||||||||
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Research
and development
|
5,167
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4,625
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16,616
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14,781
|
||||||||||||
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Income
from operations
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8,481
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4,102
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6,401
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23,566
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||||||||||||
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Other
income:
|
||||||||||||||||
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Interest
income
|
38
|
197
|
147
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1,107
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||||||||||||
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Income
before income taxes
|
8,519
|
4,299
|
6,548
|
24,673
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||||||||||||
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Provision
(benefit) for income taxes
|
2,004
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(242
|
)
|
1,404
|
6,264
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|||||||||||
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Net
income
|
$
|
6,515
|
$
|
4,541
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$
|
5,144
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$
|
18,409
|
||||||||
|
Earnings
per share data:
|
||||||||||||||||
|
Basic
|
$
|
0.30
|
$
|
0.21
|
$
|
0.24
|
$
|
0.88
|
||||||||
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Diluted
|
$
|
0.30
|
$
|
0.21
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$
|
0.23
|
$
|
0.84
|
||||||||
|
Weighted
average shares outstanding:
|
||||||||||||||||
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Basic
|
21,394,204
|
21,147,902
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21,352,838
|
20,937,284
|
||||||||||||
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Diluted
|
21,991,067
|
22,030,603
|
21,952,140
|
21,940,482
|
||||||||||||
4
AeroVironment,
Inc.
Selected
Consolidated Balance Sheet Information
(In
thousands except share data)
|
January
30,
2010
|
April
30,
2009
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash
and cash equivalents
|
$ | 52,843 | $ | 116,501 | ||||
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Investments
|
73,654 | 28,679 | ||||||
|
Accounts
receivable, net
|
40,860 | 42,551 | ||||||
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Unbilled
receivables and retentions
|
19,319 | 20,070 | ||||||
|
Inventories,
net
|
29,713 | 11,602 | ||||||
|
Total
assets
|
253,295 | 253,181 | ||||||
|
Stockholders’
equity
|
216,283 | 207,427 | ||||||
|
Shares
issued and outstanding
|
21,649,826 | 21,470,481 | ||||||
Reportable
Segment Results are as Follows (Unaudited):
(In
thousands)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
January
30,
|
January
31,
|
January
30,
|
January
31,
|
|||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
UAS
|
$
|
55,089
|
$
|
43,394
|
$
|
132,089
|
$
|
145,926
|
||||||||
|
EES
|
5,772
|
8,831
|
18,079
|
25,691
|
||||||||||||
|
Total
|
60,861
|
52,225
|
150,168
|
171,617
|
||||||||||||
|
Gross
margin:
|
||||||||||||||||
|
UAS
|
21,125
|
13,461
|
45,926
|
50,050
|
||||||||||||
|
EES
|
2,356
|
3,216
|
7,919
|
12,197
|
||||||||||||
|
Total
|
23,481
|
16,677
|
53,845
|
62,247
|
||||||||||||
|
Selling,
general and administrative
|
9,833
|
7,950
|
30,828
|
23,900
|
||||||||||||
|
Research
and development
|
5,167
|
4,625
|
16,616
|
14,781
|
||||||||||||
|
Income
from operations
|
8,481
|
4,102
|
6,401
|
23,566
|
||||||||||||
|
Interest
income
|
38
|
197
|
147
|
1,107
|
||||||||||||
|
Income
before income taxes
|
$
|
8,519
|
$
|
4,299
|
$
|
6,548
|
$
|
24,673
|
||||||||
##
Additional
AV News: http://www.avinc.com/News.asp
AV Media
Gallery: http://www.avinc.com/media_gallery.asp
Contact:
AeroVironment,
Inc.
Steven
Gitlin
+1 (626)
357-9983
ir@avinc.com
5