STOCK TITAN

AeroVironment Announces Fiscal 2024 Second Quarter Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
earnings
Rhea-AI Summary
AeroVironment, Inc. (AVAV) reported a 62% year-over-year increase in revenue to $180.8 million, with net income of $17.8 million and Adjusted EBITDA of $39.5 million. The company raised its fiscal year 2024 revenue guidance to $685-705 million, reflecting strong demand and successful acquisition of Tomahawk Robotics.
Positive
  • 62% increase in revenue
  • 366% increase in net income
  • 481% increase in Adjusted EBITDA
  • Funded backlog of $487.0 million
  • Acquisition of Tomahawk Robotics
Negative
  • None.

ARLINGTON, Va.--(BUSINESS WIRE)-- AeroVironment, Inc. (“AeroVironment” or the “Company”) reported today financial results for the fiscal second quarter ended October 28, 2023.

Second Quarter Highlights:

  • Second quarter revenue of $180.8 million, up 62% year-over-year
  • Second quarter net income of $17.8 million and Adjusted EBITDA of $39.5 million, increases of 366% and 481%, year-over-year, respectively
  • Funded backlog of $487.0 million as of October 28, 2023
  • Increasing fiscal year 2024 revenue guidance to between $685 million and $705 million, including the recently completed acquisition of Tomahawk Robotics

“Our results exceeded expectations, underscored by the highest second quarter revenue in company history combined with strong bottom-line performance,” said Wahid Nawabi, AeroVironment chairman, president and chief executive officer. “Sales rose significantly year-over-year, reflecting increasing demand, strong operational execution and effective supply chain management. At the same time, we successfully completed the acquisition of Tomahawk Robotics, and we are well on our way to fully integrating these two great organizations – leveraging our combined technology to accelerate the implementation of AI and autonomy applications across our portfolio of unmanned platforms through a common operating platform.

“Given our standout performance and solid backlog, along with the addition of Tomahawk, we are again raising our revenue guidance for fiscal year 2024. Our optimism not only reflects near-term demand dynamics but also reflects an ongoing shift in battlefield priorities to the more frequent use of distributed, intelligent, multi-domain unmanned systems.”

FISCAL 2024 SECOND QUARTER RESULTS

Revenue for the second quarter of fiscal 2024 was $180.8 million, an increase of 62% as compared to $111.6 million for the second quarter of fiscal 2023, reflecting higher product sales of $83.4 million, partially offset by lower service revenue of $14.2 million. From a segment standpoint, the year-over-year increase was due to revenue growth in Unmanned Systems (“UMS”) of 115%, partially offset by decreases in MacCready Works (“MW”) of 6% and Loitering Munitions Systems (“LMS”) of 3%.

Gross margin for the second quarter of fiscal 2024 was $75.4 million, an increase of 191% as compared to $25.9 million for the second quarter of fiscal 2023, reflecting higher product margin of $43.8 million and higher service gross margin of $5.6 million. As a percentage of revenue, gross margin increased to 42% from 23%, primarily due to an increase in the proportion of product revenue to total revenue and a favorable product mix. Gross margin was favorably impacted by a decrease in depreciation charges for in-service assets of $7.1 million related to the closure of COCO site locations during fiscal year 2023. Gross margin was negatively impacted by $3.2 million of intangible amortization expense and other related non-cash purchase accounting expenses in the second quarter of fiscal 2024 as compared to $4.0 million in the second quarter of fiscal 2023.

Income from operations for the second quarter of fiscal 2024 was $25.2 million as compared to loss from operations of $(14.3) million for the second quarter of last fiscal year. The increase year-over-year was primarily due higher gross margin of $49.5 million, partially offset by increases in research and development (“R&D”) expense of $5.4 million and selling, general and administrative (“SG&A”) expense of $4.5 million.

Other loss, net, for the second quarter of fiscal 2024 was $4.8 million, as compared to $1.5 million for the second quarter of last fiscal year. The increase in other expense was primarily due to an increase in unrealized losses on investment holdings.

Provision for income taxes for the second quarter of fiscal 2024 was $1.1 million, as compared to a benefit from income taxes of $(10.5) million for the second quarter of last fiscal year. The increase in provision for income taxes was primarily due to the increase in pre-tax income.

Net income attributable to AeroVironment for the second quarter of fiscal 2024 was $17.8 million, or $0.66 per diluted share, as compared to net loss attributable to AeroVironment of $(6.7) million, or $(0.27) per diluted share, in the prior-year period, respectively.

Non-GAAP adjusted EBITDA for the second quarter of fiscal 2024 was $39.5 million and non-GAAP earnings per diluted share were $0.97, as compared to $6.8 million and $0.01, respectively, for the second quarter of fiscal 2023.

BACKLOG

As of October 28, 2023, funded backlog (defined as remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $487.0 million, as compared to $424.1 million as of April 30, 2023.

FISCAL 2024 — OUTLOOK FOR THE FULL YEAR

For fiscal year 2024, the Company now expects revenue of between $685 million and $705 million, net income of between $45 million and $51 million, Non-GAAP adjusted EBITDA of between $119 million and $127 million, earnings per diluted share of between $1.66 and $1.90 and non-GAAP earnings per diluted share, which excludes amortization of intangible assets, other non-cash purchase accounting expenses and equity securities investments gains or losses, of between $2.46 and $2.70.

The revised outlook includes the impacts of the recent acquisition of Tomahawk Robotics, Inc. The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, subject to certain risks and uncertainties, including certain assumptions with respect to our ability to efficiently and on a timely basis integrate acquisitions, obtain and retain government contracts, changes in the timing and/or amount of government spending, react to 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, December 5, 2023, at 4:30 pm Eastern Time that will be webcast live. Wahid Nawabi, chairman, president and chief executive officer, Kevin P. McDonnell, chief financial officer and Jonah Teeter-Balin, senior director corporate development and investor relations, will host the call.

Investors may access the call by registering via the following participant registration link up to ten minutes prior to the start time.

Participant registration URL: https://register.vevent.com/register/BI64ffae409eb84e6c946d9347cf5e6c50

Investors may also 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 second quarter fiscal year 2024 can be accessed at https://investor.avinc.com/events-and-presentations.

Audio Replay

An audio replay of the event will be archived on the Investor Relations section of the Company's website at http://investor.avinc.com.

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. Headquartered in Virginia, 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 ability to successfully close and integrate acquisitions into our operations and avoid disruptions from acquisition transactions that will harm our business, including the acquisition of Tomahawk Robotics; the recording of goodwill and other intangible assets as part of acquisitions that are subject to potential impairments in the future and any realization of such impairments; any actual 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, including uncertainties in classification, pricing or potentially burdensome imposed terms for certain types of government contracts; availability of U.S. government funding for defense procurement and R&D programs; changes in the timing and/or amount of government spending, including due to continuing resolutions; adverse impacts of a U.S. government shutdown; our reliance on limited relationships to fund our development of HAPS UAS; 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 and increasing 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 or the risk of unauthorized access to and resulting misuse of our, our customers’ and/or our suppliers’ information and systems; changes in the supply and/or demand and/or prices for our products and services; increased competition; 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; unexpected changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; any increase in litigation activity or unfavorable results in legal proceedings, including pending class actions; our ability to respond and adapt to unexpected legal, regulatory and government budgetary changes, including those resulting from the COVID-19 pandemic or future pandemics, such as supply chain disruptions and delays, potential governmentally-mandated shutdowns, travel restrictions and site access, diversion of government resources to non-defense priorities, and other business restrictions affecting our ability to manufacture and sell our products and provide our services; our ability to comply with the covenants in our loan documents; our ability to attract and retain skilled employees; the impact of inflation; and general economic and business conditions in the United States and elsewhere in the world; and the failure to establish and maintain effective internal control over financial reporting. 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

 

Six Months Ended

 

 

October 28,

 

October 29,

 

October 28,

 

October 29,

 

 

2023

 

2022

 

2023

 

2022

 

 

(Unaudited)

 

(Unaudited)

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

145,779

 

 

$

62,343

 

 

$

265,250

 

 

$

120,317

 

Contract services

 

 

35,037

 

 

 

49,241

 

 

 

67,913

 

 

 

99,783

 

 

 

 

180,816

 

 

 

111,584

 

 

 

333,163

 

 

 

220,100

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

79,032

 

 

 

39,445

 

 

 

140,640

 

 

 

72,344

 

Contract services

 

 

26,434

 

 

 

46,249

 

 

 

51,513

 

 

 

88,152

 

 

 

 

105,466

 

 

 

85,694

 

 

 

192,153

 

 

 

160,496

 

Gross margin:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

 

66,747

 

 

 

22,898

 

 

 

124,610

 

 

 

47,973

 

Contract services

 

 

8,603

 

 

 

2,992

 

 

 

16,400

 

 

 

11,631

 

 

 

 

75,350

 

 

 

25,890

 

 

 

141,010

 

 

 

59,604

 

Selling, general and administrative

 

 

28,147

 

 

 

23,613

 

 

 

51,974

 

 

 

45,556

 

Research and development

 

 

22,025

 

 

 

16,591

 

 

 

37,491

 

 

 

31,636

 

Income (loss) from operations

 

 

25,178

 

 

 

(14,314

)

 

 

51,545

 

 

 

(17,588

)

Other (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(1,950

)

 

 

(2,309

)

 

 

(3,958

)

 

 

(3,912

)

Other (expense) income, net

 

 

(2,858

)

 

 

810

 

 

 

(3,987

)

 

 

404

 

Income (loss) before income taxes

 

 

20,370

 

 

 

(15,813

)

 

 

43,600

 

 

 

(21,096

)

Provision for (benefit from) income taxes

 

 

1,137

 

 

 

(10,457

)

 

 

2,451

 

 

 

(7,851

)

Equity method investment loss, net of tax

 

 

(1,393

)

 

 

(1,273

)

 

 

(1,414

)

 

 

(1,773

)

Net income (loss)

 

 

17,840

 

 

 

(6,629

)

 

 

39,735

 

 

 

(15,018

)

Net income attributable to noncontrolling interest

 

 

 

 

 

(39

)

 

 

 

 

 

(45

)

Net income (loss) attributable to AeroVironment, Inc.

 

$

17,840

 

 

$

(6,668

)

 

$

39,735

 

 

$

(15,063

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.66

 

 

$

(0.27

)

 

$

1.50

 

 

$

(0.61

)

Diluted

 

$

0.66

 

 

$

(0.27

)

 

$

1.50

 

 

$

(0.61

)

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

26,865,763

 

 

 

24,900,873

 

 

 

26,479,168

 

 

 

24,852,219

 

Diluted

 

 

26,956,806

 

 

 

24,900,873

 

 

 

26,569,267

 

 

 

24,852,219

 

AeroVironment, Inc.

Consolidated Balance Sheets

(In thousands except share data)

 

 

 

 

 

 

 

 

 

October 28,

 

April 30,

 

 

2023

 

2023

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

100,908

 

 

$

132,859

 

Accounts receivable, net of allowance for doubtful accounts of $158 at October 28, 2023 and $156 at April 30, 2023

 

 

73,865

 

 

 

87,633

 

Unbilled receivables and retentions

 

 

141,812

 

 

 

105,653

 

Inventories, net

 

 

181,767

 

 

 

138,814

 

Income taxes receivable

 

 

5,735

 

 

 

 

Prepaid expenses and other current assets

 

 

19,958

 

 

 

12,043

 

Total current assets

 

 

524,045

 

 

 

477,002

 

Long-term investments

 

 

20,611

 

 

 

23,613

 

Property and equipment, net

 

 

43,772

 

 

 

39,795

 

Operating lease right-of-use assets

 

 

30,632

 

 

 

27,363

 

Deferred income taxes

 

 

20,780

 

 

 

27,206

 

Intangibles, net

 

 

82,848

 

 

 

43,577

 

Goodwill

 

 

274,781

 

 

 

180,801

 

Other assets

 

 

9,231

 

 

 

5,220

 

Total assets

 

$

1,006,700

 

 

$

824,577

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

28,834

 

 

$

31,355

 

Wages and related accruals

 

 

26,671

 

 

 

35,637

 

Customer advances

 

 

20,440

 

 

 

16,645

 

Current portion of long-term debt

 

 

5,000

 

 

 

7,500

 

Current operating lease liabilities

 

 

8,818

 

 

 

8,229

 

Income taxes payable

 

 

595

 

 

 

2,342

 

Other current liabilities

 

 

18,946

 

 

 

19,626

 

Total current liabilities

 

 

109,304

 

 

 

121,334

 

Long-term debt, net of current portion

 

 

73,678

 

 

 

125,904

 

Non-current operating lease liabilities

 

 

23,727

 

 

 

21,189

 

Other non-current liabilities

 

 

1,898

 

 

 

746

 

Liability for uncertain tax positions

 

 

2,705

 

 

 

2,705

 

Deferred income taxes

 

 

1,658

 

 

 

1,729

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value:

 

 

 

 

 

 

Authorized shares—10,000,000; none issued or outstanding at October 28, 2023 and April 30, 2023

 

 

 

 

 

 

Common stock, $0.0001 par value:

 

 

 

 

 

 

Authorized shares—100,000,000

 

 

 

 

 

 

Issued and outstanding shares—28,135,539 shares at October 28, 2023 and 26,216,897 shares at April 30, 2023

 

 

4

 

 

 

4

 

Additional paid-in capital

 

 

589,047

 

 

 

384,397

 

Accumulated other comprehensive loss

 

 

(6,077

)

 

 

(4,452

)

Retained earnings

 

 

210,756

 

 

 

171,021

 

Total stockholders' equity

 

 

793,730

 

 

 

550,970

 

Total liabilities and stockholders’ equity

 

$

1,006,700

 

 

$

824,577

 

AeroVironment, Inc.

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

October 28,

 

October 29,

 

 

2023

 

2022

 

 

(Unaudited)

Operating activities

 

 

 

 

 

Net income (loss)

 

$

39,735

 

 

$

(15,018

)

Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

15,387

 

 

 

32,275

 

Loss from equity method investments

 

 

1,414

 

 

 

1,773

 

Amortization of debt issuance costs

 

 

424

 

 

 

422

 

Provision for doubtful accounts

 

 

4

 

 

 

19

 

Reserve for inventory excess and obsolescence

 

 

8,338

 

 

 

2,859

 

Other non-cash expense, net

 

 

331

 

 

 

565

 

Non-cash lease expense

 

 

4,486

 

 

 

3,775

 

Gain on foreign currency transactions

 

 

(184

)

 

 

(59

)

Unrealized loss (gain) on available-for-sale equity securities, net

 

 

3,463

 

 

 

(928

)

Deferred income taxes

 

 

(1,006

)

 

 

(808

)

Stock-based compensation

 

 

8,244

 

 

 

4,402

 

Loss on disposal of property and equipment

 

 

136

 

 

 

825

 

Amortization of debt securities discount

 

 

 

 

 

125

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

Accounts receivable

 

 

15,553

 

 

 

28,012

 

Unbilled receivables and retentions

 

 

(35,175

)

 

 

11,696

 

Inventories

 

 

(49,329

)

 

 

(26,695

)

Income taxes receivable

 

 

(5,735

)

 

 

(8,539

)

Prepaid expenses and other assets

 

 

(12,720

)

 

 

(1,117

)

Accounts payable

 

 

(6,105

)

 

 

6,823

 

Other liabilities

 

 

(12,851

)

 

 

(8,664

)

Net cash (used in) provided by operating activities

 

 

(25,590

)

 

 

31,743

 

Investing activities

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(10,104

)

 

 

(7,587

)

Equity method investments

 

 

(1,875

)

 

 

(2,774

)

Equity security investments

 

 

 

 

 

(5,100

)

Acquisition of intangibles

 

 

(1,500

)

 

 

 

Business acquisitions, net of cash acquired

 

 

(24,156

)

 

 

(5,105

)

Proceeds from deconsolidation of previously controlled subsidiary, net of cash deconsolidated

 

 

 

 

 

(635

)

Redemptions of available-for-sale investments

 

 

 

 

 

25,945

 

Purchases of available-for-sale investments

 

 

 

 

 

(1,326

)

Net cash (used in) provided by investing activities

 

 

(37,635

)

 

 

3,418

 

Financing activities

 

 

 

 

 

 

Principal payments of term loan

 

 

(55,000

)

 

 

(22,500

)

Holdback and retention payments for business acquisition

 

 

(500

)

 

 

 

Proceeds from shares issued, net of issuance costs

 

 

88,437

 

 

 

11,778

 

Payment of debt issuance costs

 

 

(8

)

 

 

 

Tax withholding payment related to net settlement of equity awards

 

 

(1,370

)

 

 

(853

)

Exercise of stock options

 

 

 

 

 

682

 

Other

 

 

(15

)

 

 

(14

)

Net cash provided by (used in) financing activities

 

 

31,544

 

 

 

(10,907

)

Effects of currency translation on cash and cash equivalents

 

 

(270

)

 

 

(257

)

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

 

 

(31,951

)

 

 

23,997

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

132,859

 

 

 

77,231

 

Cash, cash equivalents and restricted cash at end of period

 

$

100,908

 

 

$

101,228

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

Cash paid, net during the period for:

 

 

 

 

 

 

Income taxes

 

$

11,054

 

 

$

718

 

Interest

 

$

4,818

 

 

$

3,398

 

Non-cash activities

 

 

 

 

 

 

Issuance of common stock for business acquisition

 

$

109,820

 

 

$

 

Unrealized gain on available-for-sale investments, net of deferred tax expense of $0 for the six months ended October 28, 2023 and October 29, 2022, respectively

 

$

 

 

$

(26

)

Change in foreign currency translation adjustments

 

$

(1,625

)

 

$

(1,992

)

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

 

$

 

 

$

4,085

 

Acquisitions of property and equipment included in accounts payable

 

$

915

 

 

$

810

 

AeroVironment, Inc.

Reportable Segment Results (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended October 28, 2023

 

 

UMS

 

LMS

 

MW

 

Total

Revenue

 

$

132,773

 

$

30,249

 

 

$

17,794

 

 

$

180,816

Gross margin

 

 

62,742

 

 

 

9,343

 

 

 

3,265

 

 

 

75,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

33,859

 

 

 

(1,189

)

 

 

(7,492

)

 

 

25,178

 

Acquisition-related expenses

 

 

1,000

 

 

 

67

 

 

 

26

 

 

 

1,093

 

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

3,744

 

 

 

 

 

 

669

 

 

 

4,413

 

Adjusted income (loss) from operations

 

$

38,603

 

 

$

(1,122

)

 

$

(6,797

)

 

$

30,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended October 29, 2022

 

 

UMS

 

LMS

 

MW

 

Total

Revenue

 

$

61,634

 

 

$

31,101

 

$

18,849

 

$

111,584

 

Gross margin

 

 

7,903

 

 

 

12,636

 

 

 

5,351

 

 

 

25,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

 

(17,347

)

 

 

2,004

 

 

 

1,029

 

 

 

(14,314

)

Acquisition-related expenses

 

 

569

 

 

 

 

 

 

 

 

 

569

 

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

7,250

 

 

 

 

 

 

592

 

 

 

7,842

 

Adjusted (loss) income from operations

 

$

(9,528

)

 

$

2,004

 

 

$

1,621

 

 

$

(5,903

)

AeroVironment, Inc.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Six Months Ended

 

Six Months Ended

 

 

October 28, 2023

 

October 29, 2022

 

October 28, 2023

 

October 29, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per diluted share

 

$

0.66

 

$

(0.27

)

 

$

1.50

 

$

(0.61

)

Acquisition-related expenses

 

 

0.03

 

 

 

0.02

 

 

 

0.05

 

 

 

0.03

 

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

0.13

 

 

 

0.25

 

 

 

0.23

 

 

 

0.47

 

Equity method and equity securities investments activity, net

 

 

0.15

 

 

 

0.01

 

 

 

0.18

 

 

 

0.03

 

Earnings (loss) per diluted share as adjusted (Non-GAAP)

 

$

0.97

 

 

$

0.01

 

 

$

1.96

 

 

$

(0.08

)

Reconciliation of non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Six Months Ended

 

Six Months Ended

(in millions)

 

October 28, 2023

 

October 29, 2022

 

October 28, 2023

 

October 29, 2022

Net income (loss)

 

$

17.8

 

$

(6.7

)

 

$

39.7

 

$

(15.1

)

Interest expense, net

 

 

2.0

 

 

 

2.3

 

 

 

4.0

 

 

 

3.9

 

Provision for (benefit from) income taxes

 

 

1.1

 

 

 

(10.5

)

 

 

2.5

 

 

 

(7.9

)

Depreciation and amortization

 

 

8.4

 

 

 

18.4

 

 

 

15.4

 

 

 

32.3

 

EBITDA (Non-GAAP)

 

 

29.3

 

 

 

3.5

 

 

 

61.6

 

 

 

13.2

 

Stock-based compensation

 

 

5.0

 

 

 

2.2

 

 

 

8.2

 

 

 

4.4

 

Equity method and equity securities investments activity, net

 

 

3.9

 

 

 

0.3

 

 

 

4.9

 

 

 

0.8

 

Amortization of cloud computing arrangement implementation

 

 

0.2

 

 

 

0.2

 

 

 

0.3

 

 

 

0.6

 

Acquisition-related expenses

 

 

1.1

 

 

 

0.6

 

 

 

1.8

 

 

 

0.9

 

Adjusted EBITDA (Non-GAAP)

 

$

39.5

 

 

$

6.8

 

 

$

76.8

 

 

$

19.9

 

Reconciliation of Forecast Earnings per Diluted Share (Unaudited)

 

 

 

 

 

 

Fiscal year ending

 

 

April 30, 2024

Forecast earnings per diluted share

 

$

1.66 - 1.90

 

Acquisition-related expenses

 

 

0.05

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

0.55

 

Equity method and equity securities investments activity, net

 

 

0.20

 

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

 

$

2.46 - 2.70

 

Reconciliation of 2024 Forecast and Fiscal Year 2023 Actual Non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

Fiscal year ending

 

Fiscal year ended

(in millions)

 

April 30, 2024

 

April 30, 2023

Net income (loss)

 

$

45 - 51

 

 

$

(176

)

Interest expense, net

 

 

7

 

 

9

 

Provision for (benefit from) income taxes

 

 

1 - 3

 

 

 

(15

)

Depreciation and amortization

 

 

38

 

 

 

100

 

EBITDA (Non-GAAP)

 

 

91 - 99

 

 

 

(82

)

Amortization of cloud computing arrangement implementation

 

 

1

 

 

 

1

 

Stock-based compensation

 

 

20

 

 

 

11

 

Equity method and equity securities investments activity, net

 

 

5

 

 

 

3

 

Acquisition-related expenses

 

 

2

 

 

 

1

 

Goodwill impairment

 

 

 

 

 

156

 

Adjusted EBITDA (Non-GAAP)

$

119 - 127

 

 

$

90

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 Adjusted Operating Income

Adjusted operating income is defined as operating income before intangible amortization, amortization of non-cash purchase accounting adjustments, goodwill impairment and acquisition related expenses.

Non-GAAP Earnings per Diluted Share

We exclude the acquisition-related expenses, amortization of acquisition-related intangible assets, equity securities investments gains or losses, goodwill impairment 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 non-cash items, including amortization of implementation of cloud computing arrangements, stock-based compensation, acquisition related expenses, equity method investment gains or losses, equity securities investments gains or losses, goodwill impairment 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.

For additional media and information, please follow us:

Twitter
Facebook
Instagram
YouTube
LinkedIn

Jonah Teeter-Balin

+1 (805) 520-8350 x4114

https://investor.avinc.com/contact-and-faq/contact-us

Source: AeroVironment, Inc.

AeroVironment, Inc.'s second quarter revenue for fiscal year 2024 was $180.8 million, marking a 62% year-over-year increase.

AeroVironment, Inc. expects revenue of between $685 million and $705 million for fiscal year 2024.

AeroVironment, Inc.'s funded backlog as of October 28, 2023, was $487.0 million.

AeroVironment, Inc. recently completed the acquisition of Tomahawk Robotics.

The chairman, president, and CEO of AeroVironment, Inc. is Wahid Nawabi.
AeroVironment Inc.

NASDAQ:AVAV

AVAV Rankings

AVAV Latest News

AVAV Stock Data

Small Arms Ammunition Manufacturing
Manufacturing
Link
Electronic Technology, Aerospace & Defense, Manufacturing, Small Arms Ammunition Manufacturing
US
Simi Valley

About AVAV

since aerovironment's beginnings more than 45 years ago, our scientists and engineers have sought innovative solutions to many of our most difficult security, energy and infrastructure management challenges. but as remarkable as our products are, it's the actionable intelligence they provide our customers that most clearly defines our company. from the moment we developed our breakthrough unmanned aircraft systems, we understood their primary benefit—giving people the ability to see the situation ahead. with aerovironment's sophisticated eyes in the sky, we could provide life-saving intelligence, reconnaissance and surveillance for our troops on the battlefield. today, aerovironment has become the acknowledged expert and largest supplier of small, unmanned aircraft systems (uas) to the pentagon and to dozens of allied nations. as effective as our small uas have become on the battlefront, they promise to be equally life-saving on the home front. aerovironment's family of integrated and