AeroVironment, Inc. Announces Fiscal 2018 Full-Year and Fourth Quarter Results
-
Fiscal 2018 revenue from continuing operations increased 18 percent to
$271 million -
Fiscal 2018 diluted EPS from continuing operations increased 32
percent to
$0.95 -
Record funded backlog of
$174 million increased 146 percent
On
“Our team continued its outstanding execution of our business strategy
and exceeded our revenue and profitability guidance for fiscal 2018,”
said
FISCAL 2018 FULL-YEAR RESULTS
Revenue for fiscal 2018 was
Gross margin for fiscal 2018 was
Income from continuing operations for fiscal 2018 was
Other income, net, for fiscal 2018 was
Provision for income taxes for fiscal 2018 was
Equity method investment activity, net of tax, for fiscal 2018 was a
loss of
Loss from discontinued operations, net of tax for fiscal 2018 was
Net income attributable to
Earnings per diluted share from continuing operations attributable to
FISCAL 2018 FOURTH QUARTER RESULTS
Revenue for the fourth quarter of fiscal 2018 was
Gross margin for the fourth quarter of fiscal 2018 was
Income from continuing operations for the fourth quarter of fiscal 2018
was
Other income, net, for the fourth quarter of fiscal 2018 was
Provision for income taxes for the fourth quarter of fiscal 2018 was
Equity method investment activity, net of tax, for the fourth quarter of
fiscal 2018 was a loss of
Loss from discontinued operations, net of tax for the fourth quarter of
fiscal 2018 was
Net income attributable to
Earnings per diluted share from continuing operations attributable to
BACKLOG
As of
FISCAL 2019 — OUTLOOK FOR THE FULL YEAR
For fiscal 2019, the company expects its continuing operations to
generate revenue of between
The foregoing estimates are forward looking and reflect management's
view of current and future market conditions, including certain
assumptions with respect to our ability to obtain and retain government
contracts, changes in the timing and/or amount of government spending,
changes in the demand for our products and services, activities of
competitors, changes in the regulatory environment, and general economic
and business conditions in
CONFERENCE CALL
In conjunction with this release,
Investors may dial into the call at (800) 708-4539 (U.S.) and enter the passcode 47154122 or (847) 619-6396 (international) five to ten minutes prior to the start time to allow for registration.
Investors with Internet access may listen to the live audio webcast via
the Investor Relations page of the
Audio Replay Options
An audio replay of the event will be archived on the Investor Relations
page of the company's website, at http://investor.avinc.com.
The audio replay will also be available via telephone from
ABOUT AEROVIRONMENT, INC.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements.
Factors that could cause actual results to differ materially from the
forward-looking statements include, but are not limited to, reliance on
sales to the U.S. government; 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, including the asset purchase agreement for the proposed sale
of our EES business, 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
|
AeroVironment, Inc. Consolidated Statements of Operations (Unaudited) (In thousands except share and per share data) |
|||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| April 30, | April 30, | April 30, | April 30, | ||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Revenue: | |||||||||||||||
| Product sales | $ | 88,429 | $ | 102,371 | $ | 195,330 | $ | 159,630 | |||||||
| Contract services (inclusive of related party revenue of $14,497 for the three months ended April 30, 2018 and $29,597 for the fiscal year ended April 30, 2018) | 28,952 | 13,349 | 75,722 | 69,310 | |||||||||||
| 117,381 | 115,720 | 271,052 | 228,940 | ||||||||||||
| Cost of sales: | |||||||||||||||
| Product sales | 45,464 | 49,462 | 111,990 | 88,963 | |||||||||||
| Contract services | 19,738 | 8,816 | 50,174 | 44,792 | |||||||||||
| 65,202 | 58,278 | 162,164 | 133,755 | ||||||||||||
| Gross margin: | |||||||||||||||
| Product sales | 42,965 | 52,909 | 83,340 | 70,667 | |||||||||||
| Contract services | 9,214 | 4,533 | 25,548 | 24,518 | |||||||||||
| 52,179 | 57,442 | 108,888 | 95,185 | ||||||||||||
| Selling, general and administrative | 15,287 | 14,421 | 50,826 | 47,642 | |||||||||||
| Research and development | 7,440 | 6,739 | 26,433 | 28,465 | |||||||||||
| Income from continuing operations | 29,452 | 36,282 | 31,629 | 19,078 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest income, net | 751 | 456 | 2,240 | 1,618 | |||||||||||
| Other income (expense), net | 110 | 536 | (49 | ) | 172 | ||||||||||
| Income from continuing operations before income taxes | 30,313 | 37,274 | 33,820 | 20,868 | |||||||||||
| Provision for income taxes | 9,215 | 8,827 | 10,177 | 4,138 | |||||||||||
| Equity method investment activity, net of tax | (865 | ) | — | (1,283 | ) | (119 | ) | ||||||||
| Net income from continuing operations | 20,233 | 28,447 | 22,360 | 16,611 | |||||||||||
| (Loss) income from discontinued operations, net of tax | (1,890 | ) | 2,007 | (2,508 | ) | (4,154 | ) | ||||||||
| Net income | 18,343 | 30,454 | 19,852 | 12,457 | |||||||||||
| Net (income) loss attributable to noncontrolling interest | (22 | ) | 22 | 216 | 22 | ||||||||||
| Net income attributable to AeroVironment | $ | 18,321 | $ | 30,476 | $ | 20,068 | $ | 12,479 | |||||||
| Net income (loss) per share attributable to AeroVironment - Basic | |||||||||||||||
| Continuing operations | $ | 0.86 | $ | 1.23 | $ | 0.97 | $ | 0.72 | |||||||
| Discontinued operations | (0.08 | ) | 0.09 | (0.11 | ) | (0.18 | ) | ||||||||
| Net income per share attributable to AeroVironment | $ | 0.78 | $ | 1.32 | $ | 0.86 | $ | 0.54 | |||||||
| Net income (loss) per share attributable to AeroVironment - Diluted | |||||||||||||||
| Continuing operations | $ | 0.85 | $ | 1.21 | $ | 0.95 | $ | 0.72 | |||||||
| Discontinued operations | (0.08 | ) | 0.09 | (0.11 | ) | (0.18 | ) | ||||||||
| Net income per share attributable to AeroVironment | $ | 0.77 | $ | 1.30 | $ | 0.84 | $ | 0.54 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 23,551,871 | 23,146,580 | 23,471,241 | 23,059,045 | |||||||||||
| Diluted | 23,916,898 | 23,371,432 | 23,813,772 | 23,307,738 | |||||||||||
|
AeroVironment, Inc. Consolidated Balance Sheets (In thousands except share data) |
||||||||
| April 30, | ||||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 143,517 | $ | 79,904 | ||||
| Short-term investments | 113,649 | 119,971 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018 and $104 at April 30, 2017 | 56,813 | 68,719 | ||||||
| Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018) | 13,076 | 14,120 | ||||||
| Inventories, net | 38,640 | 40,908 | ||||||
| Prepaid expenses and other current assets | 5,103 | 5,533 | ||||||
| Current assets of discontinued operations | 28,349 | 24,930 | ||||||
| Total current assets | 399,147 | 354,085 | ||||||
| Long-term investments | 40,656 | 42,096 | ||||||
| Property and equipment, net | 19,219 | 15,962 | ||||||
| Deferred income taxes | 11,168 | 15,089 | ||||||
| Other assets | 2,721 | 2,010 | ||||||
| Long-term assets of discontinued operations | — | 3,258 | ||||||
| Total assets | $ | 472,911 | $ | 432,500 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 21,340 | $ | 15,896 | ||||
| Wages and related accruals | 16,851 | 10,947 | ||||||
| Income taxes payable | 4,085 | 1,418 | ||||||
| Customer advances | 2,145 | 2,057 | ||||||
| Other current liabilities | 6,892 | 8,444 | ||||||
| Current liabilities of discontinued operations | 9,184 | 9,301 | ||||||
| Total current liabilities | 60,497 | 48,063 | ||||||
| Deferred rent | 1,536 | 1,719 | ||||||
| Capital lease obligations - net of current portion | — | 161 | ||||||
| Other non-current liabilities | 622 | 184 | ||||||
| Deferred tax liability | 67 | 116 | ||||||
| Liability for uncertain tax positions | 49 | 64 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.0001 par value: | ||||||||
| Authorized shares—10,000,000; none issued or outstanding at April 30, 2018 and April 30, 2017 | — | — | ||||||
| Common stock, $0.0001 par value: | ||||||||
| Authorized shares—100,000,000 | ||||||||
| Issued and outstanding shares—23,908,736 shares at April 30, 2018 and 23,630,419 at April 30, 2017 | 2 | 2 | ||||||
| Additional paid-in capital | 170,139 | 162,150 | ||||||
| Accumulated other comprehensive loss | (21 | ) | (127 | ) | ||||
| Retained earnings | 239,997 | 219,929 | ||||||
| Total AeroVironment stockholders' equity | 410,117 | 381,954 | ||||||
| Noncontrolling interest | 23 | 239 | ||||||
| Total equity | 410,140 | 382,193 | ||||||
| Total liabilities and stockholders’ equity | $ | 472,911 | $ | 432,500 | ||||
|
AeroVironment, Inc. Consolidated Statements of Cash Flows (In thousands) |
||||||||||||
| Year Ended April 30, | ||||||||||||
| 2018 | 2017 | 2016 | ||||||||||
| Operating activities | ||||||||||||
| Net income | $ | 19,852 | $ | 12,457 | $ | 8,966 | ||||||
| Loss from discontinued operations, net of tax | (2,508 | ) | (4,154 | ) | (6,427 | ) | ||||||
| Net income from continuing operations | 22,360 | 16,611 | 15,393 | |||||||||
| Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||||||||||||
| Depreciation and amortization | 5,982 | 5,054 | 3,855 | |||||||||
| Loss from equity method investments | 1,283 | 119 | 138 | |||||||||
| Impairment of available-for-sale securities | — | — | 2,186 | |||||||||
| Impairment of long-lived assets | 255 | 46 | — | |||||||||
| Provision for doubtful accounts | 977 | 48 | 18 | |||||||||
| Impairment of intangible assets and goodwill | 1,021 | — | — | |||||||||
| (Gains) losses on foreign currency transactions | (87 | ) | 284 | 63 | ||||||||
| Loss on sale of equity securities | — | — | 219 | |||||||||
| Deferred income taxes | 3,835 | (52 | ) | (2,912 | ) | |||||||
| Gain on business acquisition | — | (584 | ) | — | ||||||||
| Stock-based compensation | 4,956 | 3,392 | 4,002 | |||||||||
| Tax benefit from exercise of stock options | — | — | 161 | |||||||||
| Excess tax benefit from exercise of stock options | — | — | (39 | ) | ||||||||
| Loss (Gain) on disposition of property and equipment | 20 | 44 | — | |||||||||
| Amortization of held-to-maturity investments | 1,424 | 2,382 | 3,875 | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | 11,211 | (19,608 | ) | (20,645 | ) | |||||||
| Unbilled receivables and retentions | 903 | 4,667 | (1,555 | ) | ||||||||
| Inventories | 2,268 | (19,225 | ) | 480 | ||||||||
| Prepaid expenses and other assets | 419 | (1,484 | ) | 439 | ||||||||
| Accounts payable | 5,736 | 545 | (2,851 | ) | ||||||||
| Other liabilities | 7,872 | (233 | ) | 3,221 | ||||||||
| Net cash provided by (used in) operating activities of continuing operations | 70,436 | (7,994 | ) | 6,047 | ||||||||
| Investing activities | ||||||||||||
| Acquisition of property and equipment | (9,563 | ) | (9,017 | ) | (6,121 | ) | ||||||
| Equity method investments | (3,267 | ) | — | (295 | ) | |||||||
| Business acquisitions, net of cash acquired | — | (430 | ) | — | ||||||||
| Redemptions of held-to-maturity investments | 227,663 | 121,522 | 84,433 | |||||||||
| Purchases of held-to-maturity investments | (221,680 | ) | (148,991 | ) | (94,954 | ) | ||||||
| Proceeds from the sale of property and equipment | — | — | — | |||||||||
| Redemptions of available-for-sale investments | 450 | 400 | 987 | |||||||||
| Net cash used in investing activities from continuing operations | (6,397 | ) | (36,516 | ) | (15,950 | ) | ||||||
| Financing activities | ||||||||||||
| Purchase and retirement of common stock | — | — | (3,756 | ) | ||||||||
| Principal payments of capital lease obligations | (288 | ) | (390 | ) | (472 | ) | ||||||
| Excess tax benefit from stock-based compensation | — | — | 39 | |||||||||
| Tax withholding payment related to net settlement of equity awards | (397 | ) | (5 | ) | (29 | ) | ||||||
| Exercise of stock options | 2,705 | 3,865 | 1,122 | |||||||||
| Net cash provided by (used in) financing activities from continuing operations | 2,020 | 3,470 | (3,096 | ) | ||||||||
| Discontinued operations | ||||||||||||
| Operating activities of discontinued operations | (1,227 | ) | (2,505 | ) | (5,496 | ) | ||||||
| Investing activities of discontinued operations | (1,219 | ) | (838 | ) | (628 | ) | ||||||
| Financing activities of discontinued operations | — | — | — | |||||||||
| Net cash used in discontinued operations | (2,446 | ) | (3,343 | ) | (6,124 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents | 63,613 | (44,383 | ) | (19,123 | ) | |||||||
| Cash and cash equivalents at beginning of period | 79,904 | 124,287 | 143,410 | |||||||||
| Cash and cash equivalents at end of period | $ | 143,517 | $ | 79,904 | $ | 124,287 | ||||||
| Supplemental disclosures of cash flow information | ||||||||||||
| Cash paid, net during the period for: | ||||||||||||
| Income taxes | $ | 1,813 | $ | 1,804 | $ | 1,576 | ||||||
| Non-cash activities | ||||||||||||
| Unrealized gain on investments, net of deferred tax expense of $25, $43, and $18, respectively | $ | 70 | $ | 74 | $ | 27 | ||||||
| Reclassification from share-based liability compensation to equity | $ | 384 | $ | 307 | $ | 228 | ||||||
| Forfeiture of vested stock-based compensation | $ | — | $ | — | $ | 86 | ||||||
| Acquisitions of property and equipment financed with capital lease obligation | $ | — | $ | — | $ | 932 | ||||||
| Change in foreign currency translation adjustments | $ | 36 | $ | — | $ | — | ||||||
| Acquisitions of property and equipment included in accounts payable | $ | 379 | $ | 724 | $ | 1,045 | ||||||
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Source:
AeroVironment, Inc.
Steven Gitlin
+1 (626) 357-9983
ir@avinc.com