AeroVironment,Inc. Announces Fiscal 2013 Second Quarter Results Business Wire MONROVIA, Calif. -- December 04, 2012 AeroVironment,Inc. (NASDAQ: AVAV) today reported financial results for its second quarter ending October 27, 2012. "Strong second quarter performance, including a 30 percent increase in year-over-year diluted earnings per share to $0.39, resulted from continued demand for our market-leading solutions, favorable product mix and our focus on cost management. Revenue of $80 million included a majority, but not all of the international small UAS orders that had been working through the export administrative process," said Tim Conver, AeroVironment chairman and chief executive officer. "Because of contracting delays on key programs, revenue in our second half will be more heavily weighted to our fourth quarter, historically the highest revenue quarter of our year. Looking beyond fiscal 2013, in addition to executing effectively in our current businesses, our team made significant progress during the quarter on development programs such as Switchblade, Mission Services and larger, vertical takeoff UAS, all of which are poised to drive long-term growth in adjacent and new markets." FISCAL 2013 SECOND QUARTER RESULTS Revenue for the second quarter of fiscal 2013 was $80.3million, down $0.1 million from second quarter fiscal 2012 revenue of $80.4million. The decrease in revenue resulted from decreased sales in our Unmanned Aircraft Systems (UAS)segment of $1.5million offset by increased sales in our Efficient Energy Systems (EES) segment of $1.4 million. Income from operations for the second quarter of fiscal 2013 was $13.1million, an increase of 37% from income from operations for the second quarter of fiscal 2012 of $9.6million. The increase in income from operations resulted from higher gross margin of $5.0 million, offset by higher selling, general and administrative (SG&A) expense of $0.9 million and research and development (R&D) expense of $0.6 million. Net income for the second quarter of fiscal 2013 was $8.7million, an increase of $2.1 million from net income for the second quarter of fiscal 2012 of $6.6million. Earnings per diluted share for the second quarter of fiscal 2013 were $0.39, an increase of $0.09 from second quarter fiscal 2012 earnings per diluted share of $0.30. FISCAL 2013 YEAR-TO-DATE RESULTS Revenue for the first six months of fiscal 2013 was $139.0million, down 2% from the first six months of fiscal 2012 revenue of $142.4million. The decrease in revenue resulted from lower sales in our UASsegment of $4.9million, offset by increased sales in our EES segment of $1.5 million. Income from operations for the first six months of fiscal 2013 was $10.8million, an increase of 8% from the first six months of fiscal 2012 income fromoperations of $10.0million. The increase in income from operations resulted from higher gross margin of $2.8 million, offset by higher R&D expense of $1.1 million and SG&A expense of $0.9 million. Net income for the first six months of fiscal 2013 was $7.4million, an increase of $0.5 million from net income for the first six months of fiscal 2012 of $6.9million. Earnings per diluted share for the first six months of fiscal 2013 were $0.33, an increase of $0.02 from the first six months of fiscal 2012 income per share of $0.31. BACKLOG As of October 27, 2012, funded backlog (unfilled firm orders for which funding is currently appropriated to us under a customer contract) was $90.2 million compared to $93.2million as of April30, 2012. 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, December 4, 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, December 4, 2012, at approximately 4:30 p.m. Pacific Time through Tuesday, December 11, at 9:00 p.m. Pacific Time. Dial (855) 859-2056 and enter the passcode 60176611. 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, supports and operates 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 AeroVironment’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 (Unaudited) (In thousands except share and per share data) Three Months Ended Six Months Ended October 27, October 29, October 27, October 29, 2012 2011 2012 2011 Revenue: Product sales $ 52,415 $ 47,858 $ 81,105 $ 77,157 Contract 27,863 32,514 57,850 65,212 services 80,278 80,372 138,955 142,369 Cost of sales: Product sales 28,215 28,499 48,774 46,371 Contract 16,427 21,243 35,040 43,653 services 44,642 49,742 83,814 90,024 Gross margin 35,636 30,630 55,141 52,345 Selling, general and 13,176 12,240 26,797 25,940 administrative Research and 9,386 8,816 17,522 16,402 development Income from 13,074 9,574 10,822 10,003 operations Other income: Interest income 162 106 334 184 Income before 13,236 9,680 11,156 10,187 income taxes Provision for 4,498 3,093 3,804 3,274 income taxes Net income $ 8,738 $ 6,587 $ 7,352 $ 6,913 Earnings per share data: Basic $ 0.40 $ 0.30 $ 0.33 $ 0.32 Diluted $ 0.39 $ 0.30 $ 0.33 $ 0.31 Weighted average shares outstanding: Basic 22,030,330 21,763,927 21,980,453 21,743,990 Diluted 22,383,791 22,255,943 22,353,434 22,244,697 AeroVironment,Inc. Consolidated Balance Sheets (In thousands except share and per share data) October 27, April 30, 2012 2012 (Unaudited) Assets Current assets: Cash and cash equivalents $ 70,770 $ 64,220 Short-term investments 64,694 77,152 Accounts receivable, net of allowance for doubtful accounts of $1,185 at October 27, 48,330 56,417 2012 and $921 at April 30, 2012 Unbilled receivables and retentions 21,064 27,034 Inventories, net 44,747 43,539 Deferred income taxes 9,508 9,377 Prepaid expenses and other current assets 4,837 4,030 Total current assets 263,950 281,769 Long-term investments 64,798 58,457 Property and equipment, net 22,137 23,515 Deferred income taxes 5,191 5,209 Other assets 230 201 Total assets $ 356,306 $ 369,151 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 15,430 $ 20,213 Wages and related accruals 13,405 19,076 Income taxes payable 1,485 8,788 Customer advances 4,079 5,124 Other current liabilities 6,129 9,898 Liability for uncertain tax positions 606 606 Total current liabilities 41,134 63,705 Wages and other accruals — 1,203 Deferred rent 909 1,019 Liability for uncertain tax positions 4,026 4,026 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 — 22,417,977 at October 27, 2012 and 22,243,903 at April 30, 2 2 2012 Additional paid-in capital 128,614 124,954 Accumulated other comprehensive loss (667 ) (694 ) Retained earnings 182,288 174,936 Total stockholders’ equity 310,237 299,198 Total liabilities and stockholders’ equity $ 356,306 $ 369,151 AeroVironment,Inc. Consolidated Statements of Cash Flows (Unaudited) (In thousands) Six Months Ended October 27, October 29, 2012 2011 Operating activities Net income $ 7,352 $ 6,913 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 5,937 4,141 Provision for doubtful accounts 566 246 Deferred income taxes (130 ) (296 ) Stock-based compensation 1,642 1,535 Tax benefit from exercise of stock options 1,529 376 Excess tax benefit from stock-based — (90 ) compensation Changes in operating assets and liabilities: Accounts receivable 7,521 18,559 Unbilled receivables and retentions 5,970 290 Inventories (1,208 ) (3,298 ) Other assets (836 ) (607 ) Accounts payable (4,783 ) (11,517 ) Other liabilities (18,772 ) (6,481 ) Net cash provided by operating activities 4,788 9,771 Investing activities Acquisitions of property and equipment (4,559 ) (5,484 ) Net sales of held-to-maturity investments 5,911 31,623 Net sales of available-for-sale investments 250 225 Net cash provided by investing activities 1,602 26,364 Financing activities Excess tax benefit from stock-based — 90 compensation Exercise of stock options 160 323 Net cash provided by financing activities 160 413 Net increase in cash and cash equivalents 6,550 36,548 Cash and cash equivalents at beginning of 64,220 62,041 period Cash and cash equivalents at end of period $ 70,770 $ 98,589 Supplemental disclosure: Unrealized gains on long-term investments recorded in other comprehensive (loss) $ 27 $ 43 income, net of deferred taxes of $17 and $30, respectively Reclassification from share-based liability $ 401 $ — compensation to equity Reportable Segment Results are as Follows (Unaudited): (In thousands) Three Months Ended Six Months Ended October October October 27, October 29, 27, 29, 2012 2011 2012 2011 Revenue: UAS $ 65,433 $ 66,931 $ 114,239 $ 119,136 EES 14,845 13,441 24,716 23,233 Total 80,278 80,372 138,955 142,369 Cost of sales: UAS 35,279 39,707 68,035 71,707 EES 9,363 10,035 15,779 18,317 Total 44,642 49,742 83,814 90,024 Gross margin: UAS 30,154 27,224 46,204 47,429 EES 5,482 3,406 8,937 4,916 Total 35,636 30,630 55,141 52,345 Selling, general and 13,176 12,240 26,797 25,940 administrative Research and 9,386 8,816 17,522 16,402 development Income from 13,074 9,574 10,822 10,003 operations Interest income 162 106 334 184 Income before $ 13,236 $ 9,680 $ 11,156 $ 10,187 income taxes Additional AV News: http://avinc.com/resources/news/ AV Media Gallery: http://avinc.com/media_gallery/ Follow us: www.twitter.com/aerovironment Facebook: http://www.facebook.com/#!/pages/AeroVironment-Inc/91762492182 Contact: AeroVironment,Inc. Steven Gitlin +1 (626) 357-9983 firstname.lastname@example.org
AeroVironment, Inc. Announces Fiscal 2013 Second Quarter Results
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