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form8-k.htm


 
 
 
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):  June 26, 2007


 
AEROVIRONMENT, INC.
(Exact name of registrant as specified in its charter)

Delaware
001-33261
95-2705790
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
 
______________________
 
  
181 W. Huntington Drive, Suite 202
    
Monrovia, CA
  
91016
(Address of Principal Executive Offices)
  
(Zip Code)

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):
 
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange ct (17 CFR 240.14d-2(B))
 
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c)) under the Exchange Act (17 CFR 240.13e-4c))
 

 



 
Item 2.02
Results of Operations and Financial Condition.
 

On June 26, 2007, AeroVironment, Inc. issued a press release announcing fourth quarter and full year financial results for the period ending April 30, 2007. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
 
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, as amended, 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.

Item 9.01
Financial Statements and Exhibits.
 

(c)           Exhibits.
 
The following exhibits are filed herewith:
 
Exhibit
Number                      Description
 
                99.1  
    Press release issued by AeroVironment, Inc., dated June 26, 2007.
 

 


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.
 

                                      AEROVIRONMENT, INC.
 

 
Date:           June 26, 2007                                                                By:           /s/ Timothy E. Conver                                                      
         Timothy E. Conver
         President and Chief Executive Officer
 


 


ex99-1.htm



AeroVironment, Inc. Announces Fiscal 2007 Fourth Quarter and Fiscal Year End Financial Results

MONROVIA, CA, June 26, 2007 — AeroVironment, Inc. (AV) (NASDAQ: AVAV) today reported financial results for its fourth quarter and fiscal year ended April 30, 2007.  Results for both periods showed significant growth in revenue and income from operations.  Highlights of the fourth quarter and full fiscal year include:

§  
Fourth quarter net revenue up 66% to $50.7 million; Full year net revenue up 25% to $173.7 million;
§  
Fourth quarter income from operations of $7.5 million, compared to an operating loss of $0.9 million in the fourth quarter of 2006; Full year income from operations up 92% to $30.5 million;
§  
Fourth quarter net income of $5.6 million compared to a net loss of $0.5 million in the fourth quarter of 2006; Full year net income up 85% to $20.7 million; and
§  
Fourth quarter earnings per diluted share of $0.27 compared to a loss of $0.04 per share in the fourth quarter of 2006; Full year earnings per diluted share up $0.47 to $1.22.

“Strong performance from our UAS business in the fourth quarter and throughout the year resulted in full year revenue of $174 million, up 25% from the prior year and at the high end of our guidance range of 20 to 25% revenue growth.  Operating margin of 18% for the full year exceeded our annual operating profit margin guidance range of 15 to 16%,” said Tim Conver, chief executive officer and president of AV.  “This growth indicates the increasing adoption of our solutions by our customers to help improve their productivity, safety and efficiency, as well as the continued, successful execution of our plans by our team,” he added.

FISCAL 2007 FOURTH QUARTER RESULTS
Revenue for the fourth quarter of fiscal 2007 was $50.7 million, an increase of 66% over fourth quarter fiscal 2006 revenue of $30.6 million. The increase in revenue was a result of increased sales in our Unmanned Aircraft Systems (UAS) segment of $20.3 million and in our Energy Technology Center segment of $0.9 million, partially offset by lower revenue from our PosiCharge Systems segment of $1.1 million.

Income from operations for the fourth quarter of fiscal 2007 was $7.5 million, up $8.4 million from fourth quarter fiscal 2006 loss from operations of $0.9 million. The growth in income from operations was caused by increased gross margin of $6.7 million, lower selling, general and administrative (SG&A) expense of $0.8 million, and lower research and development (R&D) expense of $0.8 million.

Net income for the fourth quarter of fiscal 2007 was $5.6 million, an increase of $6.1 million over a fourth quarter fiscal 2006 net loss of $0.5 million.  Earnings per share for the fourth quarter of fiscal 2007 was $0.27 per diluted share, an increase of $0.31 per diluted share over fourth quarter fiscal 2006 loss of $0.04 per share.

FULL YEAR RESULTS
Revenue for the twelve-month period ended April 30, 2007 was $173.7 million, an increase of 25% over revenue of $139.4 million for the twelve-month period ended April 30, 2006. The increase in revenue was caused by higher sales in our UAS segment of $35.4 million and in our Energy Technology Center segment of $1.3 million, but was partially offset by lower sales in our PosiCharge segment of $2.4 million. The decline in PosiCharge revenue resulted from continued weakness in our U.S. automotive market sales, although we experienced a substantial increase in revenue and new customers in non-auto segments.

Income from operations for the twelve-month period ended April 30, 2007 was $30.5 million, up 92% from income from operations of $15.9 million for the twelve-month period ended April 30, 2006. The growth in income from operations was caused by increased gross margin of $11.7 million, lower SG&A expense of $0.8 million, and lower R&D expense of $2.2 million.

Net income for the twelve-month period ended April 30, 2007 was $20.7 million, an increase of 85%, over net income of $11.2 million for the twelve-month period ended April 30, 2006.
Earnings per share for the twelve-month period ended April 30, 2007 was $1.22 per diluted share, an increase of $0.47 per diluted share over fiscal 2006 earnings of $0.75 per diluted share.

Cash, cash equivalents, and short-term investments increased by $93.8 million to $109.2 million at April 30, 2007 from $15.4 million at April 30, 2006. The increase was primarily due to the net proceeds of $80.5 million from the initial public offering of our common stock in January 2007 and cash from operations for the year of $15.0 million.

BACKLOG
As of April 30, 2007, funded backlog (unfilled firm orders for which funding is currently appropriated to us under a customer contract) was $60.9 million compared to $79.7 million as of April 30, 2006.

FISCAL 2008 — OUTLOOK FOR THE FULL YEAR
For fiscal year 2008 the Company expects to achieve revenue growth of between 20% and 25% over fiscal year 2007, with an operating income margin of between 12% and 14%.  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. Investors are reminded that actual results may differ materially from these estimates.  The Company's three to five year compound annual growth target for revenue is between 20% and 25%, with 12% to 14% operating income margin.
 
CONFERENCE CALL
In conjunction with this release, AeroVironment, Inc. will host a conference call today, Tuesday, June 26, 2007, at 1:30 pm Pacific Time that will be broadcast live over the Internet. Timothy E. Conver, chief executive officer and president, 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 (800) 299-9086 (U.S.) or (617) 786-2903 (international) five to ten minutes prior to the start time to allow for registration. The passcode for the call is 32416466.

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

A digital replay of the call will be available on Tuesday, June 26 at approximately 3:30 p.m. Pacific Time through Tuesday, July 3 at 9:00 p.m. Pacific Time.  Dial (888) 286-8010 and enter the passcode 15317564.  International callers should dial (617) 801-6888 and enter the same passcode number to access the digital replay.

About AeroVironment, Inc. (AV)
Building on a history of technological innovation, AV designs, develops, produces, and supports an advanced portfolio of Unmanned Aircraft Systems (UAS) and efficient electric energy systems. The Company’s small UAS are used extensively by agencies of the U.S. Department of Defense and increasingly by allied military forces to deliver real-time reconnaissance, surveillance, and target acquisition to tactical operating units. AV’s PosiCharge ® fast charge systems eliminate battery changing for electric industrial vehicles in factories, airports, and distribution centers. For more information about AV, please 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, 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 -
 
 
AeroVironment, Inc.
 
Condensed Consolidated Statements of Operations
 
(In thousands except share and per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
 
Twelve months ended
 
 
 
April 30,
 
 
April 30,
 
 
April 30,
 
 
April 30,
 
 
 
2007
 
 
2006
 
 
2007
 
 
2006
 
   
 (Unaudited)
    
 (Unaudited)
              
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product sales
 
$
28,935
 
 
$
15,551
 
 
$
116,361
 
 
$
98,664
 
Contract services
 
 
21,765
 
 
 
15,037
 
 
 
57,360
 
 
 
40,693
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,700
 
 
 
30,588
 
 
 
173,721
 
 
 
139,357
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product sales
 
 
17,184
 
 
 
8,862
 
 
 
67,410
 
 
 
55,483
 
Contract services
 
 
14,426
 
 
 
9,312
 
 
 
37,829
 
 
 
27,115
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31,610
 
 
 
18,174
 
 
 
105,239
 
 
 
82,598
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross margin
 
 
19,090
 
 
 
12,414
 
 
 
68,482
 
 
 
56,759
 
Research and development
 
 
4,679
 
 
 
5,495
 
 
 
13,940
 
 
 
16,098
 
Selling, general and administrative
 
 
6,950
 
 
 
7,784
 
 
 
24,041
 
 
 
24,810
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
 
 
7,461
  
 
 
(865
)
 
 
30,501
 
 
 
15,851
 
Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
1,181
 
 
 
192
 
 
 
1,707
 
 
 
333
 
Interest expense
 
 
---
  
 
 
(33
)
 
 
(6
)
 
 
(127
)
Income (loss) before income taxes
 
 
8,642
  
 
 
(706
)
 
 
32,202
 
 
 
16,057
 
Provision (benefit) for income taxes
 
 
3,072
  
 
 
(174
)
 
 
11,484
 
 
 
4,849
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
5,570
  
 
$
(532
)
 
$
20,718
 
 
$
11,208
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
.30
 
 
$
(.04
)
 
$
1.39
 
 
$
.86
 
Diluted
 
$
.27
 
 
$
(.04
)
 
$
1.22
 
 
$
.75
 
 
  
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
18,875,957
 
 
 
13,187,295
 
 
 
14,946,502
 
 
 
13,011,639
 
Diluted
 
 
21,004,465
 
 
 
13,187,295
 
 
 
16,992,012
 
 
 
14,873,651
 
 
  
 


 



 
 

 
Selected Consolidated Balance Sheet Information
 
(in thousands)
 
Selected Consolidated Balance Sheet Information
 
 
 
 
 
 
 
 
 
 
 
April 30, 2007
 
April 30, 2006
 
 
  
 
 
 
 
Cash and cash equivalents
 
$
20,920
 
 
$
15,388
 
Short-term investments
    
88,325
      
--
  
Accounts receivable, net
 
 
7,691
 
 
 
21,582
 
Unbilled receivables and retentions
    
26,494
      
4,843
  
Inventory, net
 
 
14,015
 
 
 
11,453
 
Total assets
 
 
168,177
 
 
 
64,950
 
Stockholders’ equity
 
 
136,423
 
 
 
34,303
 
Shares issued and outstanding
 
 
18,875,957
 
 
 
13,283,770
 
 
 
Reportable segment results are as follows:
 
 (in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three
 
 
For the Twelve
 
 
 
Months Ended
 
 
Months Ended
 
 
 
April 30,
 
 
April 30,
 
 
April 30,
 
 
April 30,
 
 
 
2007
 
 
2006
 
 
2007
 
 
2006
 
   
 (Unaudited)
    
  (Unaudited)
              
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UAS
 
$
44,917
 
 
$
24,593
 
 
$
146,538
 
 
$
111,104
 
PosiCharge
 
 
2,686
 
 
 
3,807
 
 
 
17,575
 
 
 
19,928
 
Energy Technology Center
 
 
3,097
 
 
 
2,188
 
 
 
9,608
 
 
 
8,325
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
50,700
 
 
 
30,588
 
 
 
173,721
 
 
 
139,357
 
Gross margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UAS
 
 
17,109
 
 
 
9,642
 
 
 
57,591
 
 
 
44,558
 
PosiCharge
 
 
417
 
 
 
1,521
 
 
 
6,096
 
 
 
8,062
 
Energy Technology Center
 
 
1,564
 
 
 
1,251
 
 
 
4,795
 
 
 
4,139
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
19,090
 
 
$
12,414
 
 
$
68,482
 
 
$
56,759
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
###
 
Contact:
Steven Gitlin
Director of Investor Relations
AeroVironment, Inc
+1 (626) 357-9983
ir@avinc.com
 
Mark Collinson
CCG Investor Relations and Strategic Communication
For AeroVironment, Inc.
+1 (310) 477-9800, ext. 117
mark.collinson@ccgir.com