UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
N/A
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Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |
The |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Accelerated filer ☐ | ||
Non-accelerated filer ☐ | Smaller reporting company | |
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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As of February 28, 2024, the number of shares outstanding of the registrant’s common stock, $0.0001 par value, was
AeroVironment, Inc.
Table of Contents
2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AeroVironment, Inc.
Condensed Consolidated Balance Sheets
(In thousands except share and per share data)
January 27, |
| April 30, | |||||
2024 | 2023 | ||||||
| (Unaudited) |
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Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | | $ | | |||
Accounts receivable, net of allowance for doubtful accounts of $ |
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Unbilled receivables and retentions |
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Inventories, net |
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Income taxes receivable | | — | |||||
Prepaid expenses and other current assets |
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Total current assets |
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Long-term investments | | | |||||
Property and equipment, net |
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Operating lease right-of-use assets | | | |||||
Deferred income taxes |
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Intangibles, net | | | |||||
Goodwill | | | |||||
Other assets |
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Total assets | $ | | $ | | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | | $ | | |||
Wages and related accruals |
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Customer advances |
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Current portion of long-term debt | | | |||||
Current operating lease liabilities | | | |||||
Income taxes payable | | | |||||
Other current liabilities |
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Total current liabilities |
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Long-term debt, net of current portion | | | |||||
Non-current operating lease liabilities | | | |||||
Other non-current liabilities | | | |||||
Liability for uncertain tax positions |
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Deferred income taxes | | | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $ | |||||||
Authorized shares— |
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Common stock, $ | |||||||
Authorized shares— | |||||||
and shares— |
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Additional paid-in capital |
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Accumulated other comprehensive loss |
| ( |
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Retained earnings |
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Total stockholders' equity | | | |||||
Total liabilities and stockholders’ equity | $ | | $ | |
See accompanying notes to condensed consolidated financial statements (unaudited).
3
AeroVironment, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands except share and per share data)
Three Months Ended | Nine Months Ended | ||||||||||||
January 27, | January 28, | January 27, | January 28, | ||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 |
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Revenue: | |||||||||||||
Product sales | $ | | $ | | $ | | $ | | |||||
Contract services |
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Cost of sales: | |||||||||||||
Product sales |
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Contract services |
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Gross margin: |
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Product sales | | | | | |||||||||
Contract services | | | | | |||||||||
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Selling, general and administrative |
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Research and development |
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Income (loss) from operations |
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Other income (loss): | |||||||||||||
Interest expense, net |
| ( |
| ( |
| ( |
| ( | |||||
Other income (expense), net |
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| ( |
| ( |
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Income (loss) before income taxes |
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| ( |
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Provision for (benefit from) income taxes | | ( |
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Equity method investment loss, net of tax |
| ( |
| ( |
| ( |
| ( | |||||
Net income (loss) | | ( | | ( | |||||||||
Net income attributable to noncontrolling interest | — | — | — | ( | |||||||||
Net income (loss) attributable to AeroVironment, Inc. | $ | | $ | ( | $ | | $ | ( | |||||
Net income (loss) per share attributable to AeroVironment, Inc. | |||||||||||||
Basic | $ | | $ | ( | $ | | $ | ( | |||||
Diluted | $ | | $ | ( | $ | | $ | ( | |||||
Weighted-average shares outstanding: | |||||||||||||
Basic |
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Diluted |
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See accompanying notes to condensed consolidated financial statements (unaudited).
4
AeroVironment, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(In thousands)
Three Months Ended | Nine Months Ended | ||||||||||||
January 27, | January 28, | January 27, | January 28, | ||||||||||
| 2024 |
| 2023 |
| 2024 |
| 2023 |
| |||||
Net income (loss) | $ | | $ | ( | $ | | $ | ( | |||||
Other comprehensive income (loss): | |||||||||||||
Unrealized gain on available-for-sale investments, net of deferred tax expense of $ |
| — |
| — |
| — |
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Change in foreign currency translation adjustments | | | ( | | |||||||||
Total comprehensive income (loss) | | | | ( | |||||||||
Net income attributable to noncontrolling interest | — | — | — | ( | |||||||||
Comprehensive income (loss) attributable to AeroVironment, Inc. | $ | | $ | | $ | | $ | ( |
See accompanying notes to condensed consolidated financial statements (unaudited).
5
AeroVironment, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
For the three months ended January 27, 2024 and January 28, 2023 (Unaudited)
(In thousands except share data)
Accumulated | |||||||||||||||||||||||
Additional | Other | Total | Non- | ||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | AeroVironment, Inc. | Controlling | ||||||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| Loss | Equity | Interest |
| Total | ||||||||||
Balance at October 28, 2023 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | — | $ | | |||||||
Net income |
| — |
| — |
| — |
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| — | | — |
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Foreign currency translation | — | — | — | — | | | — | | |||||||||||||||
Restricted stock awards | | — | — | — | — | — | — | — | |||||||||||||||
Restricted stock awards forfeited |
| ( |
| — |
| — |
| — | — | — | — |
| — | ||||||||||
Stock based compensation |
| — |
| — |
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| — | — | | — |
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Balance at January 27, 2024 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | — | $ | | |||||||
Accumulated | |||||||||||||||||||||||
Additional | Other | Total | Non- | ||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | AeroVironment, Inc. | Controlling | ||||||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| Loss | Equity | Interest |
| Total | ||||||||||
Balance at October 29, 2022 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | — | $ | | |||||||
Net loss |
| — |
| — |
| — |
| ( |
| — | ( | — |
| ( | |||||||||
Foreign currency translation | — | — | — | — | | | — | | |||||||||||||||
Stock options exercised | | — | | — | — | | — | | |||||||||||||||
Restricted stock awards | | — | — | — | — | — | — | — | |||||||||||||||
Restricted stock awards forfeited |
| ( |
| — |
| — |
| — | — | — | — |
| — | ||||||||||
Shares issued, net of issuance costs | | — | | — | — | | — | | |||||||||||||||
Stock based compensation | — |
| — |
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| — | — | | — |
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Balance at January 28, 2023 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | — | $ | |
6
AeroVironment, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
For the nine months ended January 27, 2024 and January 28, 2023 (Unaudited)
(In thousands except share data)
Accumulated |
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Additional | Other | Total | Non- |
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Common Stock | Paid-In | Retained | Comprehensive | AeroVironment, Inc. | Controlling |
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| Shares |
| Amount |
| Capital |
| Earnings |
| Loss | Equity | Interest |
| Total |
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Balance at April 30, 2023 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | — | $ | | ||||||||
Net income |
| — |
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| — |
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| — | | — |
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Foreign currency translation | — |
| — |
| — |
| — |
| ( | ( | — |
| ( | |||||||||||
Restricted stock awards |
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| — |
| — |
| — | — | — | — |
| — | |||||||||||
Restricted stock awards forfeited |
| ( |
| — |
| — |
| — | — | — | — |
| — | |||||||||||
Tax withholding payment related to net share settlement of equity awards |
| ( |
| — |
| ( |
| — | — | ( | — |
| ( | |||||||||||
Shares issued, net of issuance costs | | — | | — | — | | — | | ||||||||||||||||
Issuance of common stock for business acquisition | | — | | — | — | | — | | ||||||||||||||||
Stock based compensation |
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| — | — | | — |
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Balance at January 27, 2024 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | — | $ | | ||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | Total | Non- | |||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | AeroVironment, Inc. | Controlling | |||||||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| Loss | Equity | Interest |
| Total | |||||||||||
Balance at April 30, 2022 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | | $ | | ||||||||
Net (loss) income |
| — |
| — |
| — |
| ( |
| — | ( | |
| ( | ||||||||||
Unrealized gain on investments | — |
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Foreign currency translation | — |
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| — |
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Stock options exercised |
| | — | | — | — | | — |
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Restricted stock awards |
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| — |
| — |
| — | — | — | — |
| — | |||||||||||
Restricted stock awards forfeited |
| ( |
| — |
| — |
| — | — | — | — |
| — | |||||||||||
Tax withholding payment related to net share settlement of equity awards |
| ( |
| — |
| ( |
| — | — | ( | — |
| ( | |||||||||||
Shares issued, net of issuance costs | | | | — | — | | — | | ||||||||||||||||
Deconsolidation of previously controlled subsidiary | — | — | — | — | — | — | ( | ( | ||||||||||||||||
Stock based compensation | — |
| — |
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| — | — | | — |
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Balance at January 28, 2023 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | — | $ | |
7
AeroVironment, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Nine Months Ended | |||||||
| January 27, |
| January 28, |
| |||
2024 | 2023 | ||||||
Operating activities | |||||||
Net income (loss) | $ | | $ | ( | |||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||
Depreciation and amortization |
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Loss from equity method investments | | | |||||
Loss on deconsolidation of previously controlled subsidiary | — | | |||||
Amortization of debt issuance costs | | | |||||
Provision for doubtful accounts |
| ( |
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Reserve for inventory excess and obsolescence | |