Release Details

MONROVIA, Calif.--(BUSINESS WIRE)-- AeroVironment, Inc. (NASDAQ: AVAV) today reported financial results for its fourth quarter and fiscal year ending April 30, 2012.

"Record fourth quarter revenue of $111 million and earnings per share of $0.80 produced another year of profitable growth. Revenue in 2012 was $325 million, and fully diluted earnings per share this year of $1.36 represents compound annual growth of more than 20 percent since 2010," said Tim Conver, AeroVironment chairman and chief executive officer. "Our team's effective execution continued to help our customers win and delivered annual growth of 11 percent in revenue, 16 percent in earnings per share and 12 percent in funded backlog. We also further enhanced our long-term growth prospects with important new capabilities in our unmanned aircraft systems and efficient energy systems business segments, benefiting our customers and our stakeholders."

FISCAL 2012 FOURTH QUARTER RESULTS

Revenue for the fourth quarter of fiscal 2012 was $110.7 million, up 4% over fourth quarter fiscal 2011 revenue of $106.1 million. The increase in revenue resulted from increased sales in our Unmanned Aircraft Systems (UAS) segment of $6.4 million offset by decreased sales in our Efficient Energy Systems (EES) segment of $1.8 million.

Income from operations for the fourth quarter of fiscal 2012 was $25.7 million, an increase of $0.5 million from fourth quarter fiscal 2011 income from operations of $25.2 million. The increase in income from operations resulted from higher gross margin of $0.3 million and lower research and development (R&D) expense of $3.9 million offset by higher selling, general and administrative (SG&A) expense of $3.7 million.

Net income for the fourth quarter of fiscal 2012 was $17.8 million, an increase of $0.2 million from fourth quarter fiscal 2011 net income of $17.6 million.

Earnings per diluted share for the fourth quarter of fiscal 2012 were $0.80, an increase of $0.01 from fourth quarter fiscal 2011 earnings per diluted share of $0.79.

FISCAL 2012 FULL YEAR RESULTS

Revenue for fiscal 2012 was $325.0 million, up 11% from fiscal 2011 revenue of $292.5 million. The increase in revenue resulted from increased sales in our UAS segment of $24.0 million and EES segment of $8.5 million.

Income from operations for fiscal 2012 was $43.1 million, an increase of $9.1 million from fiscal 2011 income from operations of $34.0 million. The increase in income from operations was caused by higher gross margin of $12.2 million and lower R&D expense of $4.8 million offset by higher SG&A expense of $7.9 million.

Net income for fiscal 2012 was $30.5 million, an increase of $4.6 million from fiscal 2011 net income of $25.9 million.

Earnings per diluted share for fiscal 2012 were $1.36, an increase of $0.19 from fiscal 2011 earnings per diluted share of $1.17.

BACKLOG

As of April 30, 2012, funded backlog (unfilled firm orders for which funding is currently appropriated to us under a customer contract) was $93.2 million compared to $82.9 million as of April 30, 2011.

FISCAL 2013 — OUTLOOK FOR THE FULL YEAR

For fiscal year 2013, the Company expects to generate revenue of $348 million to $370 million, and earnings per share of $1.41 to $1.51 on a fully diluted basis.

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, and general economic and business conditions in the United States and elsewhere in the world. 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 26, 2012, at 1:30 pm Pacific Time that will be broadcast live over the Internet. Timothy E. Conver, chairman and chief executive officer, Jikun Kim, chief financial officer, Tom Herring, chief operating officer and Steven A. Gitlin, vice president 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) 561-2749 (U.S.) or (678) 809-1029 (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 AeroVironment, Inc. website, http://investor.avinc.com. Please allow 15 minutes prior to the call to download and install any necessary audio software.

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 Tuesday, June 26, 2012, at approximately 4:30 p.m. Pacific Time through Tuesday, July 3, at 9:00 p.m. Pacific Time. Dial (855) 859-2056 and enter the passcode 80241237. International callers should dial (404) 537-3406 and enter the same passcode number to access the audio replay.

ABOUT AEROVIRONMENT, INC.

AeroVironment is a technology solutions provider that designs, develops, produces and supports an advanced portfolio of Unmanned Aircraft Systems (UAS) and electric transportation solutions. Agencies of the U.S. Department of Defense and allied military services use the company's electric-powered, hand-launched unmanned aircraft systems extensively to provide situational awareness to tactical operating units through real-time, airborne reconnaissance, surveillance and communication. AeroVironment's electric transportation solutions include a comprehensive suite of electric vehicle (EV) charging systems, installation and network services for consumers, automakers, utilities and government agencies, power cycling and test systems for EV developers and industrial electric vehicle charging systems for commercial fleets. More information about AeroVironment is available at 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
(In thousands except share and per share data)
		Three Months Ended								Twelve Months Ended
		April 30,				April 30,				April 30,				April 30,
		2012				2011				2012				2011
		(Unaudited)
Revenue:
Product sales		$	65,735			$	47,014			$	179,537			$	137,724
Contract services			44,940				59,046				145,471				154,779
			110,675				106,060				325,008				292,503
Cost of sales:
Product sales			34,389				19,642				104,347				74,843
Contract services			26,731				37,207				91,328				100,509
			61,120				56,849				195,675				175,352
Gross margin			49,555				49,211				129,333				117,151
Selling, general and administrative			16,474				12,797				55,280				47,431
Research and development			7,337				11,236				30,977				35,769
Income from operations			25,744				25,178				43,076				33,951
Other income:
Interest income			149				62				462				277
Income before income taxes			25,893				25,240				43,538				34,228
Provision for income taxes			8,099				7,604				13,087				8,319
Net income		$	17,794			$	17,636			$	30,451			$	25,909
Earnings per share data:
Basic		$	0.81			$	0.81			$	1.40			$	1.20
Diluted		$	0.80			$	0.79			$	1.36			$	1.17
Weighted average shares outstanding:
Basic			21,846,811				21,659,960				21,783,496				21,591,333
Diluted			22,348,454				22,190,196				22,315,474				22,081,266

AeroVironment, Inc.
Consolidated Balance Sheets
(In thousands except share data)
		April 30,
			2012				2011
Assets
Current assets:
Cash and cash equivalents		$	64,220			$	62,041
Short-term investments			77,152				126,839
Accounts receivable, net of allowance for doubtful accounts of $921 at April 30, 2012 and $639 at April 30, 2011			56,417				44,376
Unbilled receivables and retentions			27,034				21,966
Inventories, net			43,539				38,137
Deferred income taxes			9,377				6,778
Prepaid expenses and other current assets			4,030				2,372
Total current assets			281,769				302,509
Long-term investments			58,457				6,275
Property and equipment, net			23,515				17,498
Deferred income taxes			5,209				5,284
Other assets			201				181
Total assets		$	369,151			$	331,747
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$	20,213			$	31,134
Wages and related accruals			19,076				15,458
Income taxes payable			8,788				7,404
Customer advances			5,124				1,648
Other current liabilities			9,898				5,736
Liability for uncertain tax positions			606				724
Total current liabilities			63,705				62,104
Wages and related accruals			1,203				762
Deferred rent			1,019				1,275
Liability for uncertain tax positions			4,026				4,138
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value:
Authorized shares—10,000,000; none issued or outstanding			—				—
Common stock, $0.0001 par value:
Authorized shares—100,000,000
Issued and outstanding shares—22,243,903 shares at April 30, 2012 and 21,949,884 at April 30, 2011			2				2
Additional paid-in capital			124,954				119,765
Accumulated other comprehensive loss			(694	)			(784	)
Retained earnings			174,936				144,485
Total stockholders' equity			299,198				263,468
Total liabilities and stockholders' equity		$	369,151			$	331,747

AeroVironment, Inc.
Consolidated Statements of Cash Flows
(In thousands)
		Year ended April 30,
			2012				2011				2010
Operating activities
Net income		$	30,451			$	25,909			$	20,716
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			8,973				10,599				8,982
Impairment of long-lived assets			—				2,043				—
Provision for doubtful accounts			291				(105	)			454
Deferred income taxes			(2,579	)			(1,343	)			(253	)
Stock-based compensation			3,196				2,306				1,654
Tax benefit from exercise of stock options			1,239				1,034				2,902
Excess tax benefit from stock-based compensation			(189	)			(204	)			(108	)
(Gain) loss on disposition of property and equipment			(11	)			(51	)			3
Changes in operating assets and liabilities:
Accounts receivable			(12,332	)			(5,626	)			3,452
Unbilled receivables and retentions			(5,068	)			(3,256	)			1,360
Inventories			(5,402	)			(17,209	)			(9,326	)
Income tax receivable			—				—				3,415
Prepaid expenses and other assets			(1,678	)			(543	)			(172	)
Accounts payable			(10,921	)			10,929				(3,785	)
Other liabilities			12,784				9,003				6,690
Net cash provided by operating activities			18,754				33,486				35,984
Investing activities
Acquisition of property and equipment			(14,992	)			(10,173	)			(10,792	)
Net (purchases) sales of held-to-maturity investments			(2,575	)			8,931				(114,247	)
Net sales of available-for-sale investments			225				200				275
Proceeds from sale of property and equipment			13				109				—
Net cash used in investing activities			(17,329	)			(933	)			(124,764	)
Financing activities
Excess tax benefit from stock-based compensation			189				204				108
Exercise of stock options			565				619				836
Net cash provided by financing activities			754				823				944
Net increase (decrease) in cash and cash equivalents			2,179				33,376				(87,836	)
Cash and cash equivalents at beginning of year			62,041				28,665				116,501
Cash and cash equivalents at end of year		$	64,220			$	62,041			$	28,665
Supplemental disclosures of cash flow information
Cash paid during the year for:
Income taxes		$	13,104			$	9,873			$	104
Non-cash investing activities
Unrealized gains (losses) on long-term investments recorded in other comprehensive income (loss), net of deferred tax benefit of $56, $16 and $143, respectively		$	90			$	(24	)		$	(223	)

Reportable Segment Results are as Follows (Unaudited):
(In thousands)
		Three Months Ended						Twelve Months Ended
		April 30,			April 30,			April 30,			April 30,
		2012			2011			2012			2011
Revenue:
UAS		$	97,345		$	90,973		$	273,728		$	249,769
EES			13,330			15,087			51,280			42,734
Total			110,675			106,060			325,008			292,503
Gross margin:
UAS			45,485			42,707			116,065			99,513
EES			4,070			6,504			13,268			17,638
Total			49,555			49,211			129,333			117,151
Selling, general and administrative			16,474			12,797			55,280			47,431
Research and development			7,337			11,236			30,977			35,769
Income from operations			25,744			25,178			43,076			33,951
Interest income			149			62			462			277
Income before income taxes		$	25,893		$	25,240		$	43,538		$	34,228

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AeroVironment, Inc.
Steven Gitlin, +1-626-357-9983
ir@avinc.com

Source: AeroVironment, Inc.

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