AeroVironment, Inc. Announces Fiscal 2019 Third Quarter Results
-
Revenue of
$75.3 million , up 38 percent year-over-year - Gross margin of 40 percent, up 7 percentage points year-over-year
-
Earnings per diluted share from continuing operations of
$0.35 , up$0.37 from one year ago -
Increased full year expectations for diluted earnings per share from
continuing operations to between
$1.60 and $1.80 , including a one-time gain of$0.26 from a litigation settlement
“Our team delivered outstanding financial results in our third fiscal
quarter, including
Mr. Nawabi continued, “We also continue to advance our growth portfolio,
including exercising the one-time option to increase our ownership of
the
FISCAL 2019 THIRD QUARTER RESULTS
Revenue for the third quarter of fiscal 2019 was
Gross margin for the third quarter of fiscal 2019 was
Income from continuing operations for the third quarter of fiscal 2019
was
Other income, net, for the third quarter of fiscal 2019 was
Provision for income taxes for the third quarter of fiscal 2019 was
Equity method investment activity, net of tax, for the third quarter of
fiscal 2019 was a loss of
Loss from discontinued operations, net of tax for the third quarter of
fiscal 2019 was
Net income attributable to
Earnings per diluted share from continuing operations attributable to
FISCAL 2019 YEAR-TO-DATE RESULTS
Revenue for the first nine months of fiscal 2019 was
Gross margin for the first nine months of fiscal 2019 was
Income from continuing operations for the first nine months of fiscal
2019 was
Other income, net, for the first nine months of fiscal 2019 was
Provision for income taxes for the first nine months of fiscal 2019 was
Equity method investment activity, net of tax, for the first nine months
of fiscal 2019 was a loss of
Gain on sale of a business, net of tax for the first nine months of
fiscal 2019 was
Loss from discontinued operations, net of tax for the first nine months
of fiscal 2019 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 continues to expect to generate revenue
from continuing operations 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) 708-4540 (U.S.) and enter the passcode 48266091 or (847) 619-6397 (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 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
- Financial Tables Follow –
| AeroVironment, Inc. | ||||||||||||||||
| Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| (In thousands except share and per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| January 26, | January 27, | January 26, | January 27, | |||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenue: | ||||||||||||||||
| Product sales | $ | 50,024 | $ | 39,447 | $ | 152,393 | $ | 106,647 | ||||||||
| Contract services (inclusive of related party revenue of: $13,586 and $5,420 for the three months ended January 26, 2019 and January 27, 2018, respectively; and $37,981 and $15,042 for the nine months ended January 26, 2019 and January 27, 2018, respectively) | 25,298 | 15,186 | 73,951 | 48,148 | ||||||||||||
| 75,322 | 54,633 | 226,344 | 154,795 | |||||||||||||
| Cost of sales: | ||||||||||||||||
| Product sales | 26,780 | 24,870 | 83,158 | 66,038 | ||||||||||||
| Contract services | 18,150 | 11,513 | 51,806 | 31,666 | ||||||||||||
| 44,930 | 36,383 | 134,964 | 97,704 | |||||||||||||
| Gross margin: | ||||||||||||||||
| Product sales | 23,244 | 14,577 | 69,235 | 40,609 | ||||||||||||
| Contract services | 7,148 | 3,673 | 22,145 | 16,482 | ||||||||||||
| 30,392 | 18,250 | 91,380 | 57,091 | |||||||||||||
| Selling, general and administrative | 14,464 | 11,484 | 40,066 | 35,539 | ||||||||||||
| Research and development | 8,087 | 6,607 | 22,631 | 18,993 | ||||||||||||
| Income from continuing operations | 7,841 | 159 | 28,683 | 2,559 | ||||||||||||
| Other income: | ||||||||||||||||
| Interest income, net | 1,272 | 545 | 3,246 | 1,489 | ||||||||||||
| Other income (expense), net | 962 | (108 | ) | 10,641 | (159 | ) | ||||||||||
| Income from continuing operations before income taxes | 10,075 | 596 | 42,570 | 3,889 | ||||||||||||
| Provision for income taxes | 946 | 834 | 4,724 | 971 | ||||||||||||
| Equity method investment activity, net of tax | (717 | ) | (418 | ) | (2,071 | ) | (418 | ) | ||||||||
| Net income (loss) from continuing operations | 8,412 | (656 | ) | 35,775 | 2,500 | |||||||||||
| Discontinued operations: | ||||||||||||||||
| Gain on sale of business, net of tax expense of $2,463 for the nine months ended January 26, 2019 | — | — | 8,452 | — | ||||||||||||
| Loss from discontinued operations, net of tax | (62 | ) | (129 | ) | (2,511 | ) | (1,650 | ) | ||||||||
| Net (loss) income from discontinued operations | (62 | ) | (129 | ) | 5,941 | (1,650 | ) | |||||||||
| Net income (loss) | 8,350 | (785 | ) | 41,716 | 850 | |||||||||||
| Net loss attributable to noncontrolling interest | 19 | 9 | 40 | 238 | ||||||||||||
| Net income (loss) attributable to AeroVironment | $ | 8,369 | $ | (776 | ) | $ | 41,756 | $ | 1,088 | |||||||
| Net income (loss) per share attributable to AeroVironment—Basic | ||||||||||||||||
| Continuing operations | $ | 0.35 | $ | (0.02 | ) | $ | 1.52 | $ | 0.12 | |||||||
| Discontinued operations | — | (0.01 | ) | 0.25 | (0.07 | ) | ||||||||||
| Net income (loss) per share attributable to AeroVironment—Basic | $ | 0.35 | $ | (0.03 | ) | $ | 1.77 | $ | 0.05 | |||||||
| Net income (loss) per share attributable to AeroVironment—Diluted | ||||||||||||||||
| Continuing operations | $ | 0.35 | $ | (0.02 | ) | $ | 1.49 | $ | 0.12 | |||||||
| Discontinued operations | — | (0.01 | ) | 0.25 | (0.07 | ) | ||||||||||
| Net income (loss) per share attributable to AeroVironment—Diluted | $ | 0.35 | $ | (0.03 | ) | $ | 1.74 | $ | 0.05 | |||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 23,687,672 | 23,515,622 | 23,643,866 | 23,443,673 | ||||||||||||
| Diluted | 24,081,819 | 23,515,622 | 24,064,008 | 23,774,946 | ||||||||||||
| AeroVironment, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands except share data) | ||||||||
| January 26, | April 30, | |||||||
| 2019 | 2018 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 149,369 | $ | 143,517 | ||||
| Short-term investments | 144,815 | 113,649 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $1,046 at January 26, 2019 and $1,080 at April 30, 2018 | 34,064 | 56,813 | ||||||
| Unbilled receivables and retentions (inclusive of related party unbilled receivables of $13,638 at January 26, 2019 and $3,145 at April 30, 2018) | 51,632 | 16,872 | ||||||
| Inventories, net | 50,379 | 37,425 | ||||||
| Prepaid expenses and other current assets | 6,616 | 5,103 | ||||||
| Current assets of discontinued operations | — | 25,668 | ||||||
| Total current assets | 436,875 | 399,047 | ||||||
| Long-term investments | 27,954 | 40,656 | ||||||
| Property and equipment, net | 20,542 | 19,219 | ||||||
| Deferred income taxes | 12,708 | 11,494 | ||||||
| Other assets | 884 | 3,002 | ||||||
| Total assets | $ | 498,963 | $ | 473,418 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 11,629 | $ | 21,340 | ||||
| Wages and related accruals | 14,363 | 16,851 | ||||||
| Income taxes payable | 4,857 | 4,085 | ||||||
| Customer advances | 2,875 | 3,564 | ||||||
| Other current liabilities | 8,062 | 6,954 | ||||||
| Current liabilities of discontinued operations | — | 9,294 | ||||||
| Total current liabilities | 41,786 | 62,088 | ||||||
| Deferred rent | 1,352 | 1,536 | ||||||
| Other non-current liabilities | 160 | 622 | ||||||
| Deferred tax liability | 67 | 67 | ||||||
| Liability for uncertain tax positions | 49 | 49 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.0001 par value: | ||||||||
| Authorized shares—10,000,000; none issued or outstanding at January 26, 2019 and April 30, 2018 | — | — | ||||||
| Common stock, $0.0001 par value: | ||||||||
| Authorized shares—100,000,000 | ||||||||
| Issued and outstanding shares—23,932,460 shares at January 26, 2019 and 23,908,736 shares at April 30, 2018 | 2 | 2 | ||||||
| Additional paid-in capital | 174,891 | 170,139 | ||||||
| Accumulated other comprehensive income (loss) | 4 | (21 | ) | |||||
| Retained earnings | 280,669 | 238,913 | ||||||
| Total AeroVironment stockholders’ equity | 455,566 | 409,033 | ||||||
| Noncontrolling interest | (17 | ) | 23 | |||||
| Total equity | 455,549 | 409,056 | ||||||
| Total liabilities and stockholders’ equity | $ | 498,963 | $ | 473,418 | ||||
| AeroVironment, Inc. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (In thousands) | ||||||||
| Nine Months Ended | ||||||||
| January 26, | January 27, | |||||||
| 2019 | 2018 | |||||||
| Operating activities | ||||||||
| Net income | $ | 41,716 | $ | 850 | ||||
| Gain on sale of business, net of tax | (8,452 | ) | — | |||||
| Loss from discontinued operations, net of tax | 2,511 | 1,650 | ||||||
| Net income from continuing operations | 35,775 | 2,500 | ||||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
| Depreciation and amortization | 5,530 | 4,277 | ||||||
| Loss from equity method investment | 2,071 | 418 | ||||||
| Impairment of long-lived assets | — | 255 | ||||||
| Provision for doubtful accounts | (33 | ) | 940 | |||||
| Impairment of intangible assets and goodwill | — | 1,021 | ||||||
| Gains on foreign currency transactions | (10 | ) | (36 | ) | ||||
| Deferred income taxes | (1,214 | ) | 174 | |||||
| Stock-based compensation | 5,599 | 3,702 | ||||||
| Loss on disposition of property and equipment | 51 | 15 | ||||||
| Amortization of held-to-maturity investments | (941 | ) | 1,250 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 22,817 | 48,871 | ||||||
| Unbilled receivables and retentions | (34,760 | ) | (12,068 | ) | ||||
| Inventories | (12,954 | ) | (15,308 | ) | ||||
| Income tax receivable | — | (720 | ) | |||||
| Prepaid expenses and other assets | (1,791 | ) | 417 | |||||
| Accounts payable | (10,645 | ) | (4,451 | ) | ||||
| Other liabilities | (2,598 | ) | 575 | |||||
| Net cash provided by operating activities of continuing operations | 6,897 | 31,832 | ||||||
| Investing activities | ||||||||
| Acquisition of property and equipment | (6,806 | ) | (7,713 | ) | ||||
| Equity method investments | — | (1,860 | ) | |||||
| Proceeds from sale of business | 31,994 | — | ||||||
| Redemptions of held-to-maturity investments | 191,455 | 163,813 | ||||||
| Purchases of held-to-maturity investments | (211,120 | ) | (151,740 | ) | ||||
| Redemptions of available-for-sale investments | 2,250 | 450 | ||||||
| Net cash provided by investing activities from continuing operations | 7,773 | 2,950 | ||||||
| Financing activities | ||||||||
| Principal payments of capital lease obligations | (154 | ) | (231 | ) | ||||
| Tax withholding payment related to net settlement of equity awards | (1,033 | ) | (389 | ) | ||||
| Exercise of stock options | 71 | 2,691 | ||||||
| Net cash (used in) provided by financing activities from continuing operations | (1,116 | ) | 2,071 | |||||
| Discontinued operations | ||||||||
| Operating activities of discontinued operations | (7,250 | ) | (3,716 | ) | ||||
| Investing activities of discontinued operations | (452 | ) | (737 | ) | ||||
| Financing activities of discontinued operations | — | — | ||||||
| Net cash used in discontinued operations | (7,702 | ) | (4,453 | ) | ||||
| Net increase in cash and cash equivalents | 5,852 | 32,400 | ||||||
| Cash and cash equivalents at beginning of period | 143,517 | 79,904 | ||||||
| Cash and cash equivalents at end of period | $ | 149,369 | $ | 112,304 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash paid, net during the period for: | ||||||||
| Income taxes | $ | 6,777 | $ | 1,812 | ||||
| Non-cash activities | ||||||||
| Unrealized gain on investments, net of deferred tax expense of $51 and $29, respectively | $ | 57 | $ | 42 | ||||
| Reclassification from share-based liability compensation to equity | $ | — | $ | 384 | ||||
| Change in foreign currency translation adjustments | $ | (32 | ) | $ | 62 | |||
| Acquisitions of property and equipment included in accounts payable | $ | 58 | $ | 332 | ||||
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Source:
AeroVironment, Inc.
Steven Gitlin
+1 (805) 520-8350
ir@avinc.com