AeroVironment,Inc. Announces Fiscal 2014 First Quarter Results Business Wire MONROVIA, Calif. -- August 27, 2013 AeroVironment,Inc. (NASDAQ: AVAV) today reported financial results for its first quarter ended July 27, 2013. "While our first quarter revenue was in-line with our previous expectations, it was adversely impacted by several one-time effects, as well as continued government contracting delays. Despite the current market environment, we have seen a recent pick-up in the number of delayed orders that have been released, contributing to a 29 percent increase in funded backlog compared to last quarter," said Tim Conver, AeroVironment chairman and chief executive officer. "The final increment of government fiscal 2012 Raven orders arrived early in the second quarter, supporting the expectation that demand for our small UAS remains an enduring priority. At the same time, progress on Switchblade tactical missile systems, electric vehicle charging systems and international UAS markets moved us closer to broader adoption and increasing demand in each of those areas, and long-term growth for the company. Overall, our fiscal 2014 plan remains on track, and we continue to operate within our previously announced guidance range." FISCAL 2014 FIRST QUARTER RESULTS Revenue for the first quarter of fiscal 2014 was $44.1million, compared with first quarter fiscal 2013 revenue of $58.7million. The decline in revenue resulted from decreased sales in the Unmanned Aircraft Systems (UAS)segment of $13.6million and in the Efficient Energy Systems (EES) segment of $1.0 million. Loss from operations for the first quarter of fiscal 2014 was $7.1million, compared to loss from operations for the first quarter of fiscal 2013 of $2.3million. The loss from operations was a result of lower revenue, driven by delayed government contracts, and first quarter reduction in force related costs. This contributed to a lower gross margin of $7.0 million, offset by lower selling, general and administrative (SG&A) expense of $1.2 million and research and development (R&D) expense of $0.9 million. Other expense, net, for the first quarter of fiscal 2014 was $3.2 million, compared to other income for the first quarter of fiscal 2013 of $0.2 million. The increase in other expense, net, was primarily due to the decrease in fair value of the conversion option in the amount of $3.4 million of the Company’s CybAero convertible bond investment. Net loss for the first quarter of fiscal 2014 was $7.2million, compared to net loss for the first quarter of fiscal 2013 of $1.4million. Loss per share for the first quarter of fiscal 2014 was $0.32, compared to loss per share for the first quarter of fiscal 2013 of $0.06. BACKLOG As of July 27, 2013, funded backlog (unfilled firm orders for which funding is currently appropriated to AeroVironment under a customer contract) was $76.9million, compared to $59.4 million as of April30, 2013. FISCAL 2014 — OUTLOOK FOR THE FULL YEAR For fiscal 2014, the company expects togenerate revenue of $230 million to $250 million, and earnings per share from operations of $0.35to $0.50 on a fully diluted basis, excluding any change in value of the CybAero convertible bond investment. 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 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, August 27, 2013, 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, August 27, 2013, at approximately 4:30 p.m. Pacific Time through Tuesday, September 3, at 9:00 p.m. Pacific Time. Dial (855) 859-2056 and enter the passcode 32239505. 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 timing and/or amount of government spending; changes in the supply and/or demand and/or prices for our products and services; 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 Operations (In thousands except share and per share data) Three Months Ended July 27, July 28, 2013 2012 Revenue: Product sales $ 27,174 $ 28,690 Contract services 16,943 29,987 44,117 58,677 Cost of sales: Product sales 20,555 20,559 Contract services 11,017 18,613 31,572 39,172 Gross margin 12,545 19,505 Selling, general and administrative 12,459 13,621 Research and development 7,190 8,136 Loss from operations (7,104 ) (2,252 ) Other income (expense): Interest income 205 172 Other expense (3,394 ) — Loss before income taxes (10,293 ) (2,080 ) Benefit for income taxes (3,083 ) (694 ) Net loss $ (7,210 ) $ (1,386 ) Loss per share data: Basic $ (0.32 ) $ (0.06 ) Diluted $ (0.32 ) $ (0.06 ) Weighted average shares outstanding: Basic 22,238,363 21,929,455 Diluted 22,238,363 21,929,455 AeroVironment,Inc. Consolidated Balance Sheets (In thousands except share data) July 27, April 30, 2013 2013 (Unaudited) Assets Current assets: Cash and cash equivalents $ 64,339 $ 75,332 Short-term investments 64,474 73,241 Accounts receivable, net of allowance for doubtful accounts of $731 at July 27, 2013 19,604 19,770 and $936 at April 30, 2013 Unbilled receivables and retentions 9,719 11,304 Inventories, net 68,663 62,561 Income tax receivable 14,812 11,777 Deferred income taxes 5,189 5,166 Prepaid expenses and other current assets 3,765 4,303 Total current assets 250,565 263,454 Long-term investments 67,595 68,916 Property and equipment, net 26,725 24,429 Deferred income taxes 5,638 5,606 Other assets 1,036 1,060 Total assets $ 351,559 $ 363,465 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 13,545 $ 16,144 Wages and related accruals 9,109 12,116 Customer advances 7,005 7,519 Other current liabilities 7,194 6,408 Total current liabilities 36,853 42,187 Deferred rent 696 771 Liability for uncertain tax positions 5,211 5,321 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 — 22,672,762 at July 27, 2013 and 22,614,315 at April 2 2 30, 2013 Additional paid-in capital 131,398 130,527 Accumulated other comprehensive loss (753 ) (705 ) Retained earnings 178,152 185,362 Total stockholders’ equity 308,799 315,186 Total liabilities and stockholders’ equity $ 351,559 $ 363,465 AeroVironment,Inc. Consolidated Statements of Cash Flows (In thousands) Three Months Ended July 27, July 28, 2013 2012 Operating activities Net loss $ (7,210 ) $ (1,386 ) Adjustments to reconcile net loss to cash used in operating activities: Depreciation and amortization 2,185 2,932 Provision for doubtful accounts 122 240 Deferred income taxes (23 ) 42 Stock-based compensation 910 840 Change in fair value of conversion feature of 3,391 — convertible bonds Tax benefit from exercise of stock options 28 88 Changes in operating assets and liabilities: Accounts receivable 44 6,297 Unbilled receivables and retentions 1,585 3,776 Inventories (6,102 ) (966 ) Income tax receivable (3,035 ) (1,755 ) Other assets 538 433 Accounts payable (2,599 ) (7,128 ) Other liabilities (3,010 ) (21,183 ) Net cash used in operating activities (13,176 ) (17,770 ) Investing activities Acquisitions of property and equipment (4,457 ) (2,548 ) Net redemptions of held-to-maturity 6,442 9,064 investments Net sales of available-for-sale investments 175 175 Net cash provided by investing activities 2,160 6,691 Financing activities Exercise of stock options 23 69 Net cash provided by financing activities 23 69 Net decrease in cash and cash equivalents (10,993 ) (11,010 ) Cash and cash equivalents at beginning of 75,332 64,220 period Cash and cash equivalents at end of period $ 64,339 $ 53,210 Supplemental disclosure: Unrealized (loss) gain on long-term investments recorded in other comprehensive $ (48 ) $ 37 (loss) income, net of deferred taxes of $32 and $24, respectively Reclassification from share-based liability $ — $ 401 compensation to equity Reportable Segment Results are as Follows (Unaudited): (In thousands) Three Months Ended July 27, July 28, 2013 2012 Revenue: UAS $ 35,211 $ 48,806 EES 8,906 9,871 Total 44,117 58,677 Cost of sales: UAS 24,599 32,756 EES 6,973 6,416 Total 31,572 39,172 Gross margin: UAS 10,612 16,050 EES 1,933 3,455 Total 12,545 19,505 Selling, general and administrative 12,459 13,621 Research and development 7,190 8,136 Loss from operations (7,104 ) (2,252 ) Other income (expense): Interest income 205 172 Other expense (3,394 ) — Loss before income taxes $ (10,293 ) $ (2,080 ) 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 email@example.com
AeroVironment, Inc. Announces Fiscal 2014 First Quarter Results
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