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 24, 2008
AEROVIRONMENT,
INC.
(Exact
name of registrant as specified in its charter)
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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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______________________
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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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(Address
of Principal Executive Offices)
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(Zip
Code)
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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):
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange ct (17 CFR
240.14d-2(B))
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¨
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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 June
24, 2008, AeroVironment, Inc. issued a press release announcing fourth
quarter and full year financial results for the year ended April 30,
2008, 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:
Exhibit
Number Description
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99.1
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Press release issued by AeroVironment, Inc., dated June
24, 2008.
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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
24,
2008 By: /s/ Timothy E.
Conver
Timothy E.
Conver
Chairman, President
and Chief Executive Officer
181 W.
Huntington Drive, Suite 202 ▪ Monrovia, CA 91016
Tel.
+1.626.357.9983 ▪ Fax. +1.626.359.9628
www.avinc.com
▪ NASDAQ: AVAV
Press
Release
AeroVironment,
Inc. Announces Fiscal 2008 Fourth Quarter and Fiscal Year End Financial
Results
MONROVIA,
CA, June 24, 2008 — AeroVironment, Inc.
(AV) (NASDAQ: AVAV) today reported financial results for its fourth
quarter and fiscal year ended April 30, 2008.
“We
completed our second fiscal year-end as a public company and once again achieved
our financial objectives, generating revenue growth of 24% and an operating
margin of 13%. This places us within both our fiscal 2008 revenue
guidance range of 20% to 25%, and our operating margin guidance range of 12% to
14%,” said Tim Conver, chairman and chief executive officer of
AV. “Strength in the demand for our unmanned aircraft systems and
their support drove growth over last year as our systems became increasingly
embedded into the way our customers operate. Our record fourth
quarter performance was an indicator of the demand for our solutions and the
ability of our team to execute successfully.”
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Fourth
Quarter Highlights:
· Revenue
of $64.3 million
· Operating
margin of 14%
· Earnings
per diluted share of $0.30
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Full
Fiscal Year Highlights:
· Revenue
of $215.7 million
· Operating
margin of 13%
· Earnings
per diluted share of $1.00
|
FISCAL
2008 FOURTH QUARTER RESULTS
Revenue
for the fourth quarter of fiscal 2008 was $64.3 million, an increase of 27%
over fourth quarter fiscal 2007 revenue of $50.7 million. The increase in
revenue was a result of increased sales in our Unmanned Aircraft Systems
(UAS) segment of $11.1 million, PosiCharge Systems segment of $1.2
million and in our Energy Technology Center segment of
$1.3 million.
Income
from operations for the fourth quarter of fiscal 2008 was $9.1 million, up
$1.6 million from fourth quarter fiscal 2007 income from operations of
$7.5 million. The growth in income from operations was caused by increased
gross margin of $3.8 million partially offset by higher selling, general
and administrative (SG&A) expense of $2.2 million.
Net
income for the fourth quarter of fiscal 2008 was $6.4 million, an increase
of $0.8 million over fourth quarter fiscal 2007 net income of
$5.6 million. Earnings per share for the fourth quarter of
fiscal 2008 was $0.30 per diluted share, an increase of $0.03 per diluted
share over fourth quarter fiscal 2007 earnings of $0.27 per diluted
share.
FULL
YEAR RESULTS
Revenue
for fiscal 2008 was $215.7 million, an increase of 24% over revenue of $173.7
million for fiscal 2007. The increase in revenue was caused by higher sales in
our UAS segment of $40.1 million, PosiCharge Systems segment of $1.0 million,
and Energy Technology Center segment of $0.9 million.
Income
from operations for fiscal 2008 was $28.4 million, down 7% from income from
operations of $30.5 million for fiscal 2007. The decrease in income from
operations was caused by higher SG&A expense of $9.6 million and higher
R&D expense of $2.5 million partially offset by increased gross margin of
$10.0 million.
Net
income for fiscal 2008 was $21.4 million, an increase of 3%, over net
income of $20.7 million for fiscal 2007. Earnings per share for
fiscal 2008 was $1.00 per diluted share, a decrease of $0.22 per diluted
share over fiscal 2007 earnings of $1.22 per diluted share.
BACKLOG
As of
April 30, 2008, funded backlog (unfilled firm orders for which funding is
currently appropriated to us under a customer contract) was $82.0 million
compared to $60.9 million as of April 30, 2007.
FISCAL
2009 — OUTLOOK FOR THE FULL YEAR
For
fiscal year 2009 the Company expects to achieve revenue growth of between 20%
and 25% over fiscal year 2008, 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.
CONFERENCE
CALL
In
conjunction with this release, AeroVironment, Inc. will host a conference call
today, Tuesday, June 24, 2008, 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) 397-0291 (U.S.) or (719) 325-4896
(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, June 24 at approximately 4:30
p.m. Pacific Time through Tuesday, July 1 at 9:00 p.m. Pacific
Time. Dial (888) 203-1112 and enter the passcode
8411674. International callers should dial (719) 457-0820 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.
Consolidated
Statements of Income
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Three
Months Ended
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Twelve
Months Ended
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|||||||||||||||
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April
30,
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April
30,
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April
30,
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April
30,
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|||||||||||||
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2008
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2007
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2008
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2007
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|||||||||||||
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Revenue:
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||||||||||||||||
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Product
sales
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$
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39,401
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$
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28,935
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$
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123,074
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$
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116,361
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||||||||
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Contract
services
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24,905
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21,765
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92,672
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57,360
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||||||||||||
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64,306
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50,700
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215,746
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173,721
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|||||||||||||
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Cost
of sales:
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||||||||||||||||
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Product
sales
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24,937
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17,184
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73,424
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67,410
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||||||||||||
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Contract
services
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16,419
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14,426
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63,775
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37,829
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||||||||||||
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41,356
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31,610
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137,199
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105,239
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|||||||||||||
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Gross
margin
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22,950
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19,090
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78,547
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68,482
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||||||||||||
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Selling,
general and administrative
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9,147
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6,950
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33,662
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24,041
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||||||||||||
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Research
and development
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4,675
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4,679
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16,441
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13,940
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||||||||||||
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Income
from operations
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9,128
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7,461
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28,444
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30,501
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||||||||||||
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Other
income (expense)
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||||||||||||||||
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Interest
income
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662
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1,187
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3,796
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1,707
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||||||||||||
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Interest
expense
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---
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(6
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)
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(1
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)
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(6
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)
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|||||||||
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Income
before income taxes
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9,790
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8,642
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32,239
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32,202
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||||||||||||
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Provision
for income taxes
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3,377
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3,072
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10,853
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11,484
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||||||||||||
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Net
income
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$
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6,413
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$
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5,570
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$
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21,386
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$
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20,718
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||||||||
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Earnings
per share data:
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||||||||||||||||
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Net
income
|
||||||||||||||||
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Basic
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$
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0.32
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$
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0.30
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$
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1.08
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$
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1.39
|
||||||||
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Diluted
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$
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0.30
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$
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0.27
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$
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1.00
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$
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1.22
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||||||||
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Weighted
average shares outstanding:
|
||||||||||||||||
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Basic
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20,331,877
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18,875,957
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19,766,881
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14,946,502
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||||||||||||
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Diluted
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21,558,363
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21,004,465
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21,372,405
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16,992,012
|
||||||||||||
(in
thousands)
Selected
Consolidated Balance Sheet Information
|
April
30, 2008
|
April
30, 2007
|
|||||||
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Cash
and cash equivalents
|
$
|
105,064
|
$
|
20,920
|
||||
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Investments
|
13,375
|
88,325
|
||||||
|
Accounts
receivable, net
|
29,788
|
7,691
|
||||||
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Unbilled
receivables and retentions
|
20,590
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26,494
|
||||||
|
Inventory,
net
|
15,923
|
14,015
|
||||||
|
Total
assets
|
202,779
|
168,177
|
||||||
|
Stockholders’
equity
|
169,740
|
136,423
|
||||||
|
Shares
issued and outstanding
|
20,614,044
|
18,875,957
|
||||||
|
For
the Three
|
For
the Twelve
|
|||||||||||||||
|
Months
Ended
|
Months
Ended
|
|||||||||||||||
|
April
30,
|
April
30,
|
April
30,
|
April
30,
|
|||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Revenue
|
||||||||||||||||
|
UAS
|
$
|
55,976
|
$
|
44,917
|
$
|
186,615
|
$
|
146,538
|
||||||||
|
PosiCharge
Systems
|
3,908
|
2,686
|
18,613
|
17,575
|
||||||||||||
|
Energy
Technology Center
|
4,422
|
3,097
|
10,518
|
9,608
|
||||||||||||
|
Total
|
64,306
|
50,700
|
215,746
|
173,721
|
||||||||||||
|
Gross
margin
|
||||||||||||||||
|
UAS
|
20,108
|
17,109
|
68,598
|
57,591
|
||||||||||||
|
PosiCharge
Systems
|
739
|
417
|
5,464
|
6,096
|
||||||||||||
|
Energy
Technology Center
|
2,103
|
1,564
|
4,485
|
4,795
|
||||||||||||
|
Total
|
$
|
22,950
|
$
|
19,090
|
$
|
78,547
|
$
|
68,482
|
||||||||
###
Contact:
Steven
Gitlin
Director
of Investor Relations
AeroVironment,
Inc
+1
(626) 357-9983
ir@avinc.com