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AeroVironment, Inc. Announces Fourth Quarter and Full Fiscal 2021 Year Results

June 29, 2021 GMT
AeroVironment Offers a Portfolio of Intelligent, Multi-Domain Robotic Systems for Defense, Civil and Commercial Customers (Photo: Business Wire)
AeroVironment Offers a Portfolio of Intelligent, Multi-Domain Robotic Systems for Defense, Civil and Commercial Customers (Photo: Business Wire)

ARLINGTON, Va.--(BUSINESS WIRE)--Jun 29, 2021--

AeroVironment, Inc. (NASDAQ: AVAV), a global leader in intelligent, multi-domain robotic systems, today reported financial results for its fourth quarter and full fiscal year ended April 30, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210629005997/en/

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AeroVironment Offers a Portfolio of Intelligent, Multi-Domain Robotic Systems for Defense, Civil and Commercial Customers (Photo: Business Wire)

  • Record fourth quarter and full fiscal year revenue of $136.0 million and $394.9 million
  • Full fiscal year diluted EPS from continuing operations of $0.96 and non-GAAP diluted EPS from continuing operations of $2.10
  • Record funded backlog of $211.8 million
  • Closed two strategic acquisitions in the fourth quarter and a third in May 2021 that expand and enhance our product portfolio

“Our team again delivered record fourth quarter and full fiscal year 2021 revenue, representing a fourth consecutive year of profitable topline growth,” said Wahid Nawabi, AeroVironment president and chief executive officer. “In addition to producing solid financial and operational results despite the continued macroeconomic challenges our industry and economy are experiencing, we expanded our total addressable markets with the strategic acquisitions of Arcturus UAV, Progeny Systems ISG and Telerob. We continued our momentum over the course of the year securing a key initial contract for our new anti-armor Switchblade 600 loitering missile system, completing the fifth successful test flight of the Sunglider solar HAPS and demonstrating broadband LTE communication from the stratosphere. The AeroVironment team also made aviation history by developing critical propulsion and structural elements of the Ingenuity Mars Helicopter, the first aircraft to take flight in the atmosphere of another world.”

“We executed our growth strategy effectively in fiscal year 2021 and are well positioned to achieve significant revenue and adjusted EBITDA growth in fiscal year 2022 with our expanded team, geographic footprint and broad portfolio of intelligent, multi-domain robotic systems,” Mr. Nawabi added.

FISCAL 2021 FOURTH QUARTER RESULTS

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Revenue for the fourth quarter of fiscal 2021 was $136.0 million, representing an increase from the fourth quarter of fiscal 2020 revenue of $135.2 million. The increase was due to an increase in revenue in our Medium Unmanned Aircraft Systems (MUAS) segment of $15.8 million resulting from our acquisition of Arcturus UAV in February 2021, partially offset by a decrease in revenue in our Unmanned Aircraft Systems (UAS) segment of $15.0 million. The decrease in UAS segment revenue was due to a decrease in service revenue of $14.2 million and a decrease in product sales of $0.8 million. Our UAS segment consists of our existing small UAS, tactical missile systems and HAPS product lines and the recently acquired Progeny Systems Corporation’s Intelligent Systems Group (“ISG”).

Gross margin for the fourth quarter of fiscal 2021 was $59.7 million, an increase of 12% from the fourth quarter of fiscal 2020 gross margin of $53.2 million. The increase in gross margin was primarily due to an increase in product margin of $8.8 million, partially offset by a decrease in service margin of $2.3 million. As a percentage of revenue, gross margin increased to 44% from 39%. The increase in gross margin percentage was primarily due to a favorable product and services mix. Cost of sales for the fourth quarter of fiscal 2021 included $2.6 million of intangible amortization expense and other related non-cash purchase accounting expenses as compared to $0.6 million in the fourth quarter of fiscal 2020.

Income from operations for the fourth quarter of fiscal 2021 was $17.8 million, a decrease of $3.5 million from the fourth quarter of fiscal 2020 income from continuing operations of $21.3 million. The decrease in income from operations was primarily a result of an increase in selling, general and administrative (“SG&A”) expense of $8.5 million and an increase in research and development (“R&D”) expense of $1.5 million, partially offset by an increase in gross margin of $6.5 million. The increase in SG&A expense for the fourth quarter of fiscal 2021 was primarily due to an increase in acquisition-related expenses of $3.3 million associated with the acquisitions of Arcturus UAV, ISG and Telerob GmbH (“Telerob”), and an increase in intangible amortization expense of $2.8 million.

Other expense, net, for the fourth quarter of fiscal 2021 was $9.4 million, as compared to other income, net of $1.2 million for the fourth quarter of fiscal 2020. The increase in other expense, net was primarily due to a legal accrual related to our former EES business, an increase in interest expense of $0.9 million resulting from the term debt issued concurrent with the acquisition of Arcturus UAV, and a decrease in interest income due to a combination of a decrease in the average interest rates earned on our investment portfolio and a decrease in the average investment balances.

(Benefit) provision for income taxes for the fourth quarter of fiscal 2021 was a benefit of $2.2 million, as compared to a provision of $2.6 million for the fourth quarter of fiscal 2020. The increase in benefit from income taxes was primarily due to the decrease in income before income taxes and an increase in certain federal income tax credits.

Equity method investment income (loss), net of tax, for the fourth quarter of fiscal 2021 was income of $0.4 million, as compared to loss of $2.1 million for the fourth quarter of fiscal 2020. The equity method income during the fourth quarter of fiscal 2021 resulted from our investment in a limited partnership fund.

Net income attributable to AeroVironment for the fourth quarter of fiscal 2021 was $10.9 million, as compared to $17.5 million for the fourth quarter of fiscal 2020. The fourth quarter of fiscal 2021 included a $9.3 million legal accrual related to our former EES business.

Earnings per diluted share from continuing operations attributable to AeroVironment for the fourth quarter of fiscal 2021 was $0.44, as compared to $0.73 for the fourth quarter of fiscal 2020.

Non-GAAP earnings per diluted share from continuing operations was $1.04 for the fourth quarter of fiscal 2021, as compared to $0.75 for the fourth quarter of fiscal 2020.

FISCAL 2021 FULL YEAR RESULTS

Revenue for fiscal 2021 was $394.9 million, an increase of 8% from fiscal 2020 revenue of $367.3 million. The increase in revenue was due to an increase in product sales of $22.1 million and an increase in service revenue of $5.5 million. Fiscal 2021 revenue in our UAS segment increased $11.8 million from fiscal 2020. Fiscal 2021 included revenue in our MUAS segment of $15.8 million resulting from our acquisition of Arcturus UAV in February 2021.

Gross margin for fiscal 2021 was $164.6 million, an increase of 7% from fiscal 2020 gross margin of $153.1 million. The increase in gross margin was primarily due to an increase in product margin of $11.5 million. As a percentage of revenue, gross margin of 42% was consistent with that of fiscal 2020. Cost of sales for fiscal 2021 included $4.5 million of intangible amortization expense and other related non-cash purchase accounting expenses as compared to $2.4 million for fiscal 2020.

Income from operations for fiscal 2021 was $43.3 million, a decrease of $3.8 million from fiscal 2020 income from operations of $47.1 million. The decrease in income from operations was primarily a result of an increase in SG&A expense of $8.0 million and an increase in R&D expense of $7.3 million, partially offset by an increase in gross margin of $11.5 million. The increase in SG&A expense for fiscal 2021 was primary due to an increase in acquisition-related expenses of $6.5 million associated with the acquisitions of Arcturus UAV, ISG and Telerob, and an increase in intangible amortization expense of $2.8 million.

Other expense, net, for fiscal 2021 was $8.9 million, as compared to other income, net of $5.5 million for fiscal 2020. The increase in other expense, net was primarily due to a legal accrual related to our former EES business, a decrease in interest income due to a combination of a decrease in the average interest rates earned on our investment portfolio and a decrease in the average investment balances, and an increase in interest expense of $0.9 million resulting from the term debt issued concurrent with the acquisition of Arcturus UAV.

Provision for income taxes for fiscal 2021 was $0.5 million, as compared to $5.8 million for fiscal 2020. The decrease in provision for income taxes was primarily due to a decrease in income before income taxes and an increase in certain federal income tax credits.

Equity method investment loss, net of tax, for fiscal 2021 was $10.5 million, as compared to $5.5 million for fiscal 2020. Equity method investment loss, net of tax, for fiscal 2021 included a loss of $8.4 million for our proportionate share of the HAPSMobile Inc. joint venture’s impairment of its investment in Loon LLC.

Net income attributable to AeroVironment for fiscal 2021 was $23.3 million, as compared to $41.1 million for fiscal 2020. Fiscal 2021 included the impairment loss of $8.4 million related to HAPSMobile Inc.’s investment in Loon LLC and a $9.3 million legal accrual related to our former EES business.

Earnings per diluted share from continuing operations attributable to AeroVironment for fiscal 2021 was $0.96, as compared to $1.72 for fiscal 2020. Fiscal 2021 included the impairment loss of $8.4 million related to HAPSMobile Inc.’s investment in Loon LLC and $9.3 million related to a legal accrual related to our former EES business.

Non-GAAP earnings per diluted share from continuing operations was $2.10 for fiscal 2021, as compared to $1.84 for fiscal 2020.

BACKLOG

As of April 30, 2021, funded backlog (remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $211.8 million, as compared to $208.1 million as of April 30, 2020.

FISCAL 2022 — OUTLOOK FOR THE FULL YEAR

For fiscal year 2022 the Company continues to expect revenue of between $560 million and $580 million, net income of between $32 million and $37 million, adjusted EBITDA of between $105 million and $110 million, earnings per diluted share of between $1.31 and $1.51 and non-GAAP earnings per diluted share, which excludes acquisition-related expenses and amortization of intangible assets, of between $2.50 and $2.70.

The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, subject to certain risks and uncertainties, and including certain assumptions with respect to our ability to efficiently and on a timely basis integrate our acquisitions, 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 the United States and elsewhere in the world. Investors are reminded that actual results may differ materially from these estimates.

CONFERENCE CALL AND PRESENTATION

In conjunction with this release, AeroVironment, Inc. will host a conference call today, Tuesday, June 29, 2021, at 1:30 pm Pacific Time that will be webcast live. Wahid Nawabi, president and chief executive officer, Kevin P. McDonnell, chief financial officer and Steven A. Gitlin, chief marketing officer and 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 by using the following telephone numbers, (877) 561-2749 (U.S.) or (678) 809-1029 (international) and providing the conference ID 5370008 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.

A supplementary investor presentation for the fourth quarter and full fiscal 2021 can be accessed at https://investor.avinc.com/events-and-presentations.

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 29, 2021, at approximately 4:30 p.m. Pacific Time through July 6, 2021, at 4:30 p.m. Pacific Time. Dial (855) 859-2056 (U.S.) or (404) 537-3406 (international) and provide the conference ID 5370008.

ABOUT AEROVIRONMENT, INC.

AeroVironment (NASDAQ: AVAV) provides technology solutions at the intersection of robotics, sensors, software analytics and connectivity that deliver more actionable intelligence so you can Proceed with Certainty. Celebrating 50 years of innovation, AeroVironment is a global leader in intelligent, multi-domain robotic systems, and serves defense, government and commercial customers. For more information, 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, the impact of our recent acquisitions of Arcturus UAV, Telerob and ISG and our ability to successfully integrate them into our operations; the risk that disruptions will occur from the transactions that will harm our business; any disruptions or threatened disruptions to our relationships with our distributors, suppliers, customers and employees, including shortages in components for our products; the ability to timely and sufficiently integrate international operations into our ongoing business and compliance programs; reliance on sales to the U.S. government and related to our development of HAPS UAS; 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 U.S. government and international customers; the consequences to our financial position, business and reputation that could result from failing to comply with such regulatory requirements; unexpected technical and marketing difficulties inherent in major research and product development efforts; the impact of potential security and cyber threats; changes in the supply and/or demand and/or prices for our products and services; the activities of competitors and increased competition; failure of the markets in which we operate to grow; uncertainty in the customer adoption rate of commercial use unmanned aircraft systems; failure to remain a market innovator, to create new market opportunities or to expand into new markets; changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; risk of litigation, including but not limited to pending litigation arising from the sale of our EES business; product liability, infringement and other claims; changes in the regulatory environment; the impact of the outbreak related to the strain of coronavirus known as COVID-19 on our business operations; 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.

NON-GAAP MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. See in the financial tables below the calculation of these measures, the reasons why we believe these measures provide useful information to investors, and a reconciliation of these measures to the most directly comparable GAAP measures.

AeroVironment, Inc.

Consolidated Statements of Operations

(In thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

 

April 30,

 

April 30,

 

April 30,

 

April 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

(Unaudited)

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

96,655

 

 

$

97,101

 

 

$

278,888

 

 

$

256,758

 

 

Contract services

 

 

39,360

 

 

 

38,122

 

 

 

116,024

 

 

 

110,538

 

 

 

 

 

136,015

 

 

 

135,223

 

 

 

394,912

 

 

 

367,296

 

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

47,675

 

 

 

56,887

 

 

 

149,714

 

 

 

139,131

 

 

Contract services

 

 

28,685

 

 

 

25,168

 

 

 

80,640

 

 

 

75,063

 

 

 

 

 

76,360

 

 

 

82,055

 

 

 

230,354

 

 

 

214,194

 

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

48,980

 

 

 

40,214

 

 

 

129,174

 

 

 

117,627

 

 

Contract services

 

 

10,675

 

 

 

12,954

 

 

 

35,384

 

 

 

35,475

 

 

 

 

 

59,655

 

 

 

53,168

 

 

 

164,558

 

 

 

153,102

 

 

Selling, general and administrative

 

 

24,841

 

 

 

16,344

 

 

 

67,481

 

 

 

59,490

 

 

Research and development

 

 

17,054

 

 

 

15,529

 

 

 

53,764

 

 

 

46,477

 

 

Income from continuing operations

 

 

17,760

 

 

 

21,295

 

 

 

43,313

 

 

 

47,135

 

 

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest (expense) income, net

 

 

(1,035

)

 

 

1,111

 

 

 

(618

)

 

 

4,828

 

 

Other (expense) income, net

 

 

(8,398

)

 

 

75

 

 

 

(8,330

)

 

 

707

 

 

Income before income taxes

 

 

8,327

 

 

 

22,481

 

 

 

34,365

 

 

 

52,670

 

 

(Benefit from) provision for income taxes

 

 

(2,235

)

 

 

2,645

 

 

 

539

 

 

 

5,848

 

 

Equity method investment income (loss), net of tax

 

 

410

 

 

 

(2,077

)

 

 

(10,481

)

 

 

(5,487

)

 

Net income from continuing operations

 

 

10,972

 

 

 

17,759

 

 

 

23,345

 

 

 

41,335

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of business, net of tax benefit of $76

 

 

 

 

 

(265

)

 

 

 

 

 

(265

)

 

Net loss from discontinued operations

 

 

 

 

 

(265

)

 

 

 

 

 

(265

)

 

Net income

 

 

10,972

 

 

 

17,494

 

 

 

23,345

 

 

 

41,070

 

 

Net (income) loss attributable to noncontrolling interest

 

 

(26

)

 

 

(23

)

 

 

(14

)

 

 

4

 

 

Net income attributable to AeroVironment, Inc.

 

$

10,946

 

 

$

17,471

 

 

$

23,331

 

 

$

41,074

 

 

Net income (loss) per share attributable to AeroVironment, Inc.—Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.45

 

 

$

0.74

 

 

$

0.97

 

 

$

1.74

 

 

Discontinued operations

 

 

 

 

 

(0.01

)

 

 

 

 

 

(0.01

)

 

Net income per share attributable to AeroVironment, Inc.—Basic

 

$

0.45

 

 

$

0.73

 

 

$

0.97

 

 

$

1.73

 

 

Net income (loss) per share attributable to AeroVironment, Inc.—Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.44

 

 

$

0.73

 

 

$

0.96

 

 

$

1.72

 

 

Discontinued operations

 

 

 

 

 

(0.01

)

 

 

 

 

 

(0.01

)

 

Net income per share attributable to AeroVironment, Inc.—Diluted

 

$

0.44

 

 

$

0.72

 

 

$

0.96

 

 

$

1.71

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,434,344

 

 

 

23,849,575

 

 

 

24,049,851

 

 

 

23,806,208

 

 

Diluted

 

 

24,779,877

 

 

 

24,133,809

 

 

 

24,362,656

 

 

 

24,088,167

 

 

AeroVironment, Inc.

Consolidated Balance Sheets

(In thousands except share data)

 

 

 

 

 

 

 

 

 

 

April 30,

 

 

 

2021

 

2020

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

148,741

 

$

255,142

 

Short-term investments

 

 

31,971

 

 

47,507

 

Accounts receivable, net of allowance for doubtful accounts of $595 at April 30, 2021 and $1,190 at April 30, 2020

 

 

62,647

 

 

73,660

 

Unbilled receivables and retentions

 

 

71,632

 

 

75,837

 

Inventories

 

 

71,646

 

 

45,535

 

Prepaid expenses and other current assets

 

 

15,001

 

 

6,246

 

Total current assets

 

 

401,638

 

 

503,927

 

Long-term investments

 

 

12,156

 

 

15,030

 

Property and equipment, net

 

 

58,896

 

 

21,694

 

Operating lease right-of-use assets

 

 

22,902

 

 

8,793

 

Deferred income taxes

 

 

2,061

 

 

4,928

 

Intangibles, net

 

 

106,268

 

 

13,637

 

Goodwill

 

 

314,205

 

 

6,340

 

Other assets

 

 

10,440

 

 

10,605

 

Total assets

 

$

928,566

 

$

584,954

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

24,841

 

$

19,859

 

Wages and related accruals

 

 

28,068

 

 

23,972

 

Customer advances

 

 

7,183

 

 

7,899

 

Current portion of long-term debt

 

 

10,000

 

 

 

Current operating lease liabilities

 

 

6,154

 

 

3,380

 

Income taxes payable

 

 

861

 

 

1,065

 

Other current liabilities

 

 

19,078

 

 

10,778

 

Total current liabilities

 

 

96,185

 

 

66,953

 

Long-term debt, net of current portion

 

 

187,512

 

 

 

Non-current operating lease liabilities

 

 

19,103

 

 

6,833

 

Other non-current liabilities

 

 

10,141

 

 

250

 

Liability for uncertain tax positions

 

 

3,518

 

 

1,017

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—10,000,000; none issued or outstanding at April 30, 2021 and April 30, 2020

 

 

 

 

 

Common stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—100,000,000

 

 

 

 

 

 

 

Issued and outstanding shares—24,777,295 shares at April 30, 2021 and 24,063,639 shares at April 30, 2020

 

 

2

 

 

2

 

Additional paid-in capital

 

 

260,327

 

 

181,481

 

Accumulated other comprehensive income

 

 

343

 

 

328

 

Retained earnings

 

 

351,421

 

 

328,090

 

Total AeroVironment, Inc. stockholders’ equity

 

 

612,093

 

 

509,901

 

Noncontrolling interest

 

 

14

 

 

 

Total equity

 

 

612,107

 

 

509,901

 

Total liabilities and stockholders’ equity

 

$

928,566

 

$

584,954

 

AeroVironment, Inc.

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended April 30,

 

 

 

2021

 

 

2020

 

 

2019

 

 

Operating activities

 

 

 

 

 

 

 

 

Net income

 

$

23,345

 

 

$

41,070

 

 

$

47,419

 

 

Loss (gain) on sale of business, net of tax

 

 

 

 

 

265

 

 

 

(8,490

)

 

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

 

2,964

 

 

Net income from continuing operations

 

 

23,345

 

 

 

41,335

 

 

 

41,893

 

 

Adjustments to reconcile net income from continuing operations to cash provided by operating activities from continuing operations:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

19,262

 

 

 

9,888

 

 

 

7,669

 

 

Losses from equity method investments, net

 

 

10,481

 

 

 

5,487

 

 

 

3,944

 

 

Amortization of debt issuance costs

 

 

145

 

 

 

 

 

 

 

 

Realized gain from sale of available-for-sale investments

 

 

(11

)

 

 

(180

)

 

 

 

 

Impairment of long-lived assets

 

 

 

 

 

 

 

 

4,398

 

 

Provision for doubtful accounts

 

 

(114

)

 

 

388

 

 

 

(39

)

 

Other non-cash gain, net

 

 

(449

)

 

 

(703

)

 

 

 

 

Non-cash lease expense

 

 

5,150

 

 

 

4,574

 

 

 

 

 

Loss on foreign currency transactions

 

 

1

 

 

 

1

 

 

 

38

 

 

Deferred income taxes

 

 

(1,694

)

 

 

3,419

 

 

 

4,792

 

 

Stock-based compensation

 

 

6,932

 

 

 

6,227

 

 

 

6,985

 

 

Loss (gain) on sale of property and equipment

 

 

123

 

 

 

(71

)

 

 

76

 

 

Amortization of debt securities

 

 

309

 

 

 

(1,423

)

 

 

(1,506

)

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

17,177

 

 

 

(42,869

)

 

 

25,821

 

 

Unbilled receivables and retentions

 

 

8,381

 

 

 

(22,790

)

 

 

(36,175

)

 

Inventories

 

 

(5,179

)

 

 

8,855

 

 

 

(16,631

)

 

Income tax receivable

 

 

 

 

 

821

 

 

 

(821

)

 

Prepaid expenses and other assets

 

 

(6,104

)

 

 

831

 

 

 

(2,401

)

 

Accounts payable

 

 

2,565

 

 

 

3,127

 

 

 

(7,054

)

 

Other liabilities

 

 

6,212

 

 

 

8,180

 

 

 

(4,043

)

 

Net cash provided by operating activities

 

 

86,532

 

 

 

25,097

 

 

 

26,946

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(11,263

)

 

 

(11,220

)

 

 

(8,896

)

 

Equity method investments

 

 

(2,675

)

 

 

(14,498

)

 

 

(7,598

)

 

Business acquisitions, net of cash acquired

 

 

(385,614

)

 

 

(18,641

)

 

 

 

 

Proceeds from sale of business

 

 

 

 

 

 

 

 

31,994

 

 

Proceeds from sale of property and equipment

 

 

 

 

 

81

 

 

 

 

 

Redemptions of held-to-maturity investments

 

 

 

 

 

185,917

 

 

 

260,918

 

 

Purchases of held-to-maturity investments

 

 

 

 

 

(176,757

)

 

 

(267,122

)

 

Redemptions of available-for-sale investments

 

 

146,425

 

 

 

200,892

 

 

 

2,250

 

 

Purchases of available-for-sale investments

 

 

(125,644

)

 

 

(106,607

)

 

 

 

 

Net cash (used in) provided by investing activities

 

 

(378,771

)

 

 

59,167

 

 

 

11,546

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

Principal payments of capital lease obligations

 

 

 

 

 

 

 

 

(161

)

 

Payment of contingent consideration

 

 

 

 

 

(868

)

 

 

 

 

Tax withholding payment related to net settlement of equity awards

 

 

(1,992

)

 

 

(1,062

)

 

 

(1,094

)

 

Holdback and retention payments for business acquisition

 

 

(1,492

)

 

 

 

 

 

 

 

Exercise of stock options

 

 

1,522

 

 

 

100

 

 

 

71

 

 

Payment of debt issuance costs

 

 

(3,878

)

 

 

 

 

 

 

 

Proceeds from long-term debt

 

 

200,000

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

 

194,160

 

 

 

(1,830

)

 

 

(1,184

)

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

Operating activities of discontinued operations

 

 

 

 

 

 

 

 

(7,686

)

 

Investing activities of discontinued operations

 

 

 

 

 

 

 

 

(431

)

 

Net cash used in discontinued operations

 

 

 

 

 

 

 

 

(8,117

)

 

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

 

(98,079

)

 

 

82,434

 

 

 

29,191

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

255,142

 

 

 

172,708

 

 

 

143,517

 

 

Cash, cash equivalents and restricted cash at end of period

 

$

157,063

 

 

$

255,142

 

 

$

172,708

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

 

 

 

Cash paid, net during the period for:

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$

2,405

 

 

$

532

 

 

$

6,780

 

 

Non-cash activities

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) gain on investments, net of deferred tax expense of $1, $14 and $51 for the fiscal years ended 2021, 2020 and 2019, respectively

 

$

(60

)

 

$

50

 

 

$

57

 

 

Issuance of common stock for business acquisition

 

$

72,384

 

 

$

 

 

$

 

 

Change in foreign currency translation adjustments

 

$

75

 

 

$

276

 

 

$

(34

)

 

Issuances of inventory to property and equipment, ISR in-service assets

 

$

769

 

 

$

 

 

$

 

 

Acquisitions of property and equipment included in accounts payable

 

$

756

 

 

$

1,425

 

 

$

810

 

 

AeroVironment, Inc.

Reportable Segment Results

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

April 30,

 

April 30,

 

April 30,

 

April 30,

 

 

 

2021

 

 

2020

 

2021

 

 

2020

 

 

 

(Unaudited)

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

UAS

 

$

120,178

 

 

$

135,223

 

$

379,075

 

 

$

367,296

 

MUAS

 

 

15,837

 

 

 

 

 

15,837

 

 

 

 

Total

 

 

136,015

 

 

 

135,223

 

 

394,912

 

 

 

367,296

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

UAS

 

 

56,690

 

 

 

53,168

 

 

161,593

 

 

 

153,102

 

MUAS

 

 

2,965

 

 

 

 

 

2,965

 

 

 

 

Total

 

 

59,655

 

 

 

53,168

 

 

164,558

 

 

 

153,102

 

Income (loss) from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

UAS

 

 

19,629

 

 

 

21,295

 

 

45,182

 

 

 

47,135

 

MUAS

 

 

(1,869

)

 

 

 

 

(1,869

)

 

 

 

Total

 

 

17,760

 

 

 

21,295

 

 

43,313

 

 

 

47,135

 

 

AeroVironment, Inc.

Reconciliation of non-GAAP Earnings per Diluted Share (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months
Ended

 

Three Months
Ended

 

Year Ended

 

Year Ended

 

 

April 30, 2021

 

April 30, 2020

 

April 30, 2021

 

April 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share

 

$

0.44

 

$

0.73

 

$

0.96

 

$

1.72

Acquisition-related expenses

 

 

0.12

 

 

 

 

0.26

 

 

0.04

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

0.18

 

 

0.02

 

 

0.24

 

 

0.08

Legal accrual related to our former EES business

 

 

0.30

 

 

 

 

0.30

 

 

HAPSMobile Inc. JV impairment of investment in Loon LLC

 

 

 

 

 

 

0.34

 

 

Earnings per diluted share as adjusted (Non-GAAP)

 

$

1.04

 

 

0.75

 

$

2.10

 

$

1.84

Reconciliation of Forecast Earnings per Diluted Share (Unaudited)

 

 

 

 

 

 

Fiscal year ending

 

 

April 30, 2022

Forecast earnings per diluted share

 

$

1.31 - 1.51

Acquisition-related expenses

 

 

0.13

Amortization of acquired intangible assets

 

 

1.06

Forecast earnings per diluted share as adjusted (Non-GAAP)

 

$

2.50 - 2.70

Reconciliation of Fiscal Year 2021 Actual and 2022 Forecast Non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

Fiscal year ending

 

Fiscal year ending

(in millions)

 

April 30, 2021

 

April 30, 2022

Net income from continuing operations

 

$

23

 

$

32 - 37

Interest expense, net

 

 

1

 

 

5

Provision for income taxes

 

 

1

 

 

3

Depreciation and amortization

 

 

19

 

 

61

EBITDA (Non-GAAP)

 

 

44

 

 

101 - 106

HAPSMobile Inc. JV impairment of investment in Loon LLC

 

 

10

 

 

Legal accrual related to our former EES business

 

 

9

 

 

Acquisition-related expenses

 

 

9

 

 

4

Adjusted EBITDA (Non-GAAP)

 

$

72

 

$

105 - 110

Statement Regarding Non-GAAP Measures

The non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing our results that, when reconciled to the corresponding GAAP measures, help our investors to understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. In addition, management uses these non-GAAP measures to evaluate our operating and financial performance.

Non-GAAP Earnings per Diluted Share

We exclude the acquisition-related expenses, amortization of acquisition-related intangible assets and one-time non-operating items because we believe this facilitates more consistent comparisons of operating results over time between our newly acquired and existing businesses, and with our peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation and that intangible asset amortization will recur in future periods until such intangible assets have been fully amortized.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITDA is defined as net income before interest income, interest expense, income tax expense (benefit) and depreciation and amortization including amortization of purchase accounting adjustments, adjusted for the impact of certain other items, including acquisition related expenses, equity method investment gains or losses, and one-time non-operating gains or losses. We present Adjusted EBITDA, which is not a recognized financial measure under U.S. GAAP, because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe this facilitates more consistent comparisons of operating results over time between our newly acquired and existing businesses, and with our peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation, intangible asset amortization will recur in future periods until such intangible assets have been fully amortized and that interest and income tax expenses will recur in future periods. In addition, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210629005997/en/

CONTACT: AeroVironment, Inc.

Steven Gitlin

+1 (805) 520-8350

ir@avinc.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA VIRGINIA

INDUSTRY KEYWORD: TECHNOLOGY SECURITY OTHER TECHNOLOGY AEROSPACE MANUFACTURING ALTERNATIVE ENERGY SOFTWARE ENERGY HARDWARE

SOURCE: AeroVironment, Inc.

Copyright Business Wire 2021.

PUB: 06/29/2021 04:10 PM/DISC: 06/29/2021 04:11 PM

http://www.businesswire.com/news/home/20210629005997/en