AeroVironment, Inc. Announces Fiscal 2013 Fourth Quarter and Fiscal Year End Results
AeroVironment, Inc. Announces Fiscal 2013 Fourth Quarter and Fiscal Year End Results
"Fiscal 2013 performance met our revised guidance, with full year revenue of $240 million and fully diluted EPS of $0.47, including non-operating items," said Tim Conver, AeroVironment chairman and chief executive officer. "Government contracting delays for unmanned aircraft systems combined with lower than expected electric vehicle adoption rates to reduce annual revenue by 26 percent compared to fiscal 2012. Despite these market headwinds, we maintained market leadership in each business area and strengthened our cash position by $11 million, further enhancing our ability to move quickly and decisively when growth opportunities arise."
"We reduced recurring costs early in the first quarter of fiscal 2014 to increase operating profit over last year. Significant fiscal 2013 revenue growth on Switchblade and international small UAS, along with an organization better aligned with our customers and end markets, positions us to build on our leading market positions as we develop new pathways to long term growth."
FISCAL 2013 FOURTH QUARTER RESULTS
Revenue for the fourth quarter of fiscal 2013 was $54.1 million, down 51% from fourth quarter fiscal 2012 revenue of $110.7 million. The decrease in revenue resulted from decreased sales in our Unmanned Aircraft Systems (UAS) segment of $55.0 million and in our Efficient Energy Systems (EES) segment of $1.6 million.
Loss from operations for the fourth quarter of fiscal 2013 was $6.0 million compared to income from operations for the fourth quarter of fiscal 2012 of $25.7 million. The loss from operations was a result of lower gross margin of $31.8 million and higher research and development (R&D) expense of $2.0 million, offset by lower selling, general and administrative (SG&A) expense of $2.2 million.
Other income for the fourth quarter of fiscal 2013 was $6.2 million compared to other income for the fourth quarter of fiscal 2012 of $0. The increase was primarily due to the increase in fair value of the conversion option in the amount of $6.2 million of our CybAero convertible bond investment.
Net loss for the fourth quarter of fiscal 2013 was $0.8 million compared to net income for the fourth quarter of fiscal 2012 of $17.8 million.
Loss per share for the fourth quarter of fiscal 2013 was $0.04 compared to earnings per diluted share for the fourth quarter of fiscal 2012 of $0.80.
FISCAL 2013 FULL YEAR RESULTS
Revenue for fiscal 2013 was $240.2 million, down 26% from fiscal 2012 revenue of $325.0 million. The decrease in revenue resulted from decreased sales in our UAS segment of $79.4 million and EES segment of $5.4 million.
Income from operations for fiscal 2013 was $3.8 million, a decrease of $39.3 million from fiscal 2012 income from operations of $43.1 million. The decrease in income from operations was caused by lower gross margin of $36.8 million and higher R&D expense of $6.2 million, offset by lower SG&A expense of $3.8 million.
Other income for fiscal 2013 was $6.2 million compared to other income for fiscal 2012 of $0. The increase was primarily due to the increase in fair value of the conversion option in the amount of $6.2 million of our CybAero convertible bond investment.
Net income for fiscal 2013 was $10.4 million, a decrease of $20.1 million from fiscal 2012 net income of $30.5 million.
Earnings per diluted share for fiscal 2013 were $0.47, a decrease of $0.89 from fiscal 2012 earnings per diluted share of $1.36. Fiscal 2013 earnings per diluted share included $0.13 from operations, $0.17 from the increase in fair value of our CybAero convertible bond investment and $0.17 from a lower tax rate.
As of April 30, 2013, funded backlog (unfilled firm orders for which funding is currently appropriated to us under a customer contract) was $59.4 million compared to $93.2 million as of April 30, 2012.
FISCAL 2014 — OUTLOOK FOR THE FULL YEAR
For fiscal 2014, the company expects to generate revenue of $230 million to $250 million, and earnings per share from operations of $0.35 to $0.50 on a fully diluted basis, excluding any change in value of our 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.
In conjunction with this release, AeroVironment, Inc. will host a conference call today, Tuesday, June 25, 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, June 25, 2013, at approximately 4:30 p.m. Pacific Time through Tuesday, July 2, at 9:00 p.m. Pacific Time. Dial (855) 859-2056 and enter the passcode 94653686. 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.
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 -
|Consolidated Statements of Operations|
|(In thousands except share and per share data)|
|Three Months Ended||Twelve Months Ended|
|April 30,||April 30,||April 30,||April 30,|
|Cost of sales:|
|Selling, general and administrative||14,290||16,474||51,520||55,280|
|Research and development||9,386||7,337||37,214||30,977|
|(Loss) income from operations||(5,954||)||25,744||3,802||43,076|
|Income before income taxes||470||25,893||10,773||43,538|
|Provision for income taxes||1,265||8,099||347||13,087|
|Net (loss) income||$||(795||)||$||17,794||$||10,426||$||30,451|
|(Loss) earnings per share data:|
|Weighted average shares outstanding:|
|Consolidated Balance Sheets|
|(In thousands except share data)|
|Cash and cash equivalents||$||75,332||$||64,220|
Accounts receivable, net of allowance for doubtful accounts of $936 at April 30, 2013 and $921 at April 30, 2012
|Unbilled receivables and retentions||11,304||27,034|
|Income tax receivable||11,777||—|
|Deferred income taxes||5,166||7,886|
|Prepaid expenses and other current assets||4,303||4,030|
|Total current assets||263,454||280,278|
|Property and equipment, net||24,429||23,515|
|Deferred income taxes||5,606||6,700|
|Liabilities and stockholders' equity|
|Wages and related accruals||12,116||19,076|
|Income taxes payable||—||8,788|
|Other current liabilities||6,408||9,898|
|Total current liabilities||42,187||63,099|
|Wages and related accruals||—||1,203|
|Liability for uncertain tax positions||5,321||4,632|
|Commitments and contingencies|
|Preferred stock, $0.0001 par value:|
|Authorized shares—10,000,000; none issued or outstanding||—||—|
|Common stock, $0.0001 par value:|
Issued and outstanding shares—22,614,315 shares at April 30, 2013 and 22,243,903 at April 30, 2012
|Additional paid-in capital||130,527||124,954|
|Accumulated other comprehensive loss||(705||)||(694||)|
|Total stockholders' equity||315,186||299,198|
|Total liabilities and stockholders' equity||$||363,465||$||369,151|
|Consolidated Statements of Cash Flows|
|Year ended April 30,|
|Adjustments to reconcile net income to cash provided by operating activities:|
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