AeroVironment Announces Fiscal 2024 Third Quarter Results
- Record third-quarter revenue of $186.6 million, up 39% year-over-year
- Net income of $13.9 million and adjusted EBITDA of $28.8 million
- Funded backlog of $462.8 million as of January 27, 2024
- Raised fiscal year revenue guidance for 2024 to between $700 million and $710 million
- Anticipates double-digit revenue growth in fiscal year 2025
- None.
Insights
The reported financial results by AeroVironment reflect a significant increase in revenue and net income, indicating a robust financial performance. The record third-quarter revenue growth of 39% year-over-year is particularly notable, as it outpaces average industry growth rates, suggesting that the company is gaining market share or benefiting from sector-specific tailwinds. The increase in net income of $14.6 million compared to the previous year's quarter is a strong indicator of operational efficiency and could signal improved profitability margins. Furthermore, the raised revenue guidance for the fiscal year 2024 implies management's confidence in continued strong performance and may positively influence investor sentiment.
The growing backlog, now standing at $462.8 million, is a forward-looking indicator of sustained revenue streams. However, investors should be mindful of the company's ability to convert this backlog into recognized revenue while maintaining or improving margins. The increase in gross margin to 36% from 34% is a positive trend, yet it is important to monitor the impact of any unfavorable product mix and the associated risks of cost increases or production inefficiencies.
AeroVironment's growth in the Loitering Munitions Systems (LMS) segment by 140% year-over-year is a reflection of the increasing global demand for advanced military technologies. LMS, which includes drones and other unmanned systems capable of surveillance or attack, are becoming integral to modern warfare and security operations. The company's significant revenue growth in this segment could be attributed to heightened global security tensions and increased defense spending by governments. This trend is expected to continue, given the current geopolitical climate and AeroVironment's position within this niche market could provide a competitive advantage.
However, the decrease in MacCready Works (MW) segment revenue by 13% warrants attention to understand the underlying causes and whether this signals a strategic shift or a temporary setback. Investors should assess the company's research and development investments, which have increased by $9.0 million, to gauge their alignment with future growth areas and the potential for new product development or enhancements to existing offerings.
The strategic outlook provided by AeroVironment indicates an expectation for double-digit revenue growth in fiscal year 2025, which could be driven by both organic growth and potential acquisitions. The company's focus on integrating acquisitions efficiently and on a timely basis is crucial for maintaining momentum and leveraging synergies. As the defense sector evolves with technological advancements, AeroVironment's ability to adapt and innovate will be key to capturing emerging opportunities.
Investors should consider the broader industry context, including competitors' activities, regulatory changes and economic conditions, when evaluating the company's future prospects. The forecasted non-GAAP earnings per diluted share of between $2.69 and $2.83 exclude certain expenses and gains or losses, providing a measure of core operational performance that can be compared against industry peers. Nonetheless, the reliance on non-GAAP measures should be balanced with an understanding of GAAP results to ensure a comprehensive financial assessment.
Third Quarter Highlights:
-
Record third quarter revenue of
$186.6 million 39% year-over-year -
Third quarter net income of
$13.9 million $28.8 million $14.6 million $5.1 million -
Funded backlog of
$462.8 million
“Once again, AeroVironment has delivered outstanding results, including a record for third quarter revenue that’s nearly
“With the increased global demand for our solutions, strong backlog and growing pipeline, AeroVironment remains well positioned for continued growth. As such, we are raising and narrowing our fiscal year revenue guidance for 2024 to between
FISCAL 2024 THIRD QUARTER RESULTS
Revenue for the third quarter of fiscal 2024 was
Gross margin for the third quarter of fiscal 2024 was
Income from operations for the third quarter of fiscal 2024 was
Other income, net, for the third quarter of fiscal 2024 was
Provision for income taxes for the third quarter of fiscal 2024 was
Net income attributable to AeroVironment for the third quarter of fiscal 2024 was
Non-GAAP adjusted EBITDA for the third quarter of fiscal 2024 was
BACKLOG
As of January 27, 2024, funded backlog (defined as remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was
FISCAL 2024 — OUTLOOK FOR THE FULL YEAR
For fiscal year 2024, the Company now expects revenue of between
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
CONFERENCE CALL AND PRESENTATION
In conjunction with this release, AeroVironment, Inc. will host a conference call today, Monday, March 4, 2024, 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/BI2e69517f68da41c0ade849312a1992e2
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 third 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) is a global leader in intelligent multi-domain robotic systems, uncrewed aircraft and ground systems, sensors, software analytics and connectivity. Headquartered in
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
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) |
||||||||||||||||
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Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
January 27, |
|
January 28, |
|
January 27, |
|
January 28, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product sales |
|
$ |
155,923 |
|
|
$ |
91,216 |
|
|
$ |
421,173 |
|
|
$ |
211,533 |
|
Contract services |
|
|
30,655 |
|
|
|
43,179 |
|
|
|
98,568 |
|
|
|
142,962 |
|
|
|
|
186,578 |
|
|
|
134,395 |
|
|
|
519,741 |
|
|
|
354,495 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product sales |
|
|
99,486 |
|
|
|
54,866 |
|
|
|
240,126 |
|
|
|
127,210 |
|
Contract services |
|
|
19,805 |
|
|
|
34,019 |
|
|
|
71,318 |
|
|
|
122,171 |
|
|
|
|
119,291 |
|
|
|
88,885 |
|
|
|
311,444 |
|
|
|
249,381 |
|
Gross margin: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product sales |
|
|
56,437 |
|
|
|
36,350 |
|
|
|
181,047 |
|
|
|
84,323 |
|
Contract services |
|
|
10,850 |
|
|
|
9,160 |
|
|
|
27,250 |
|
|
|
20,791 |
|
|
|
|
67,287 |
|
|
|
45,510 |
|
|
|
208,297 |
|
|
|
105,114 |
|
Selling, general and administrative |
|
|
27,826 |
|
|
|
24,746 |
|
|
|
79,800 |
|
|
|
70,302 |
|
Research and development |
|
|
25,127 |
|
|
|
16,157 |
|
|
|
62,618 |
|
|
|
47,793 |
|
Income (loss) from operations |
|
|
14,334 |
|
|
|
4,607 |
|
|
|
65,879 |
|
|
|
(12,981 |
) |
Other income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
(114 |
) |
|
|
(2,810 |
) |
|
|
(4,072 |
) |
|
|
(6,722 |
) |
Other income (expense), net |
|
|
1,004 |
|
|
|
(2,587 |
) |
|
|
(2,983 |
) |
|
|
(2,183 |
) |
Income (loss) before income taxes |
|
|
15,224 |
|
|
|
(790 |
) |
|
|
58,824 |
|
|
|
(21,886 |
) |
Provision for (benefit from) income taxes |
|
|
1,259 |
|
|
|
(531 |
) |
|
|
3,710 |
|
|
|
(8,382 |
) |
Equity method investment loss, net of tax |
|
|
(80 |
) |
|
|
(417 |
) |
|
|
(1,494 |
) |
|
|
(2,190 |
) |
Net income (loss) |
|
|
13,885 |
|
|
|
(676 |
) |
|
|
53,620 |
|
|
|
(15,694 |
) |
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(45 |
) |
Net income (loss) attributable to AeroVironment, Inc. |
|
$ |
13,885 |
|
|
$ |
(676 |
) |
|
$ |
53,620 |
|
|
$ |
(15,739 |
) |
Net income (loss) per share attributable to AeroVironment, Inc. |
|
|
|
|
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||||
Basic |
|
$ |
0.50 |
|
|
$ |
(0.03 |
) |
|
$ |
1.99 |
|
|
$ |
(0.63 |
) |
Diluted |
|
$ |
0.50 |
|
|
$ |
(0.03 |
) |
|
$ |
1.98 |
|
|
$ |
(0.63 |
) |
Weighted-average shares outstanding: |
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|
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|
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|
||||
Basic |
|
|
27,907,568 |
|
|
|
25,012,412 |
|
|
|
26,957,061 |
|
|
|
24,906,977 |
|
Diluted |
|
|
28,044,127 |
|
|
|
25,012,412 |
|
|
|
27,061,409 |
|
|
|
24,906,977 |
|
AeroVironment, Inc. Consolidated Balance Sheets (In thousands except share data) |
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January 27, |
|
April 30, |
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|
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
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|
|||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
107,694 |
|
|
$ |
132,859 |
|
Accounts receivable, net of allowance for doubtful accounts of |
|
|
53,236 |
|
|
|
87,633 |
|
Unbilled receivables and retentions |
|
|
148,588 |
|
|
|
105,653 |
|
Inventories, net |
|
|
161,384 |
|
|
|
138,814 |
|
Income taxes receivable |
|
|
8,081 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
21,708 |
|
|
|
12,043 |
|
Total current assets |
|
|
500,691 |
|
|
|
477,002 |
|
Long-term investments |
|
|
21,282 |
|
|
|
23,613 |
|
Property and equipment, net |
|
|
45,053 |
|
|
|
39,795 |
|
Operating lease right-of-use assets |
|
|
28,904 |
|
|
|
27,363 |
|
Deferred income taxes |
|
|
21,378 |
|
|
|
27,206 |
|
Intangibles, net |
|
|
77,597 |
|
|
|
43,577 |
|
Goodwill |
|
|
275,189 |
|
|
|
180,801 |
|
Other assets |
|
|
10,205 |
|
|
|
5,220 |
|
Total assets |
|
$ |
980,299 |
|
|
$ |
824,577 |
|
Liabilities and stockholders’ equity |
|
|
|
|
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|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
26,969 |
|
|
$ |
31,355 |
|
Wages and related accruals |
|
|
28,443 |
|
|
|
35,637 |
|
Customer advances |
|
|
17,536 |
|
|
|
16,645 |
|
Current portion of long-term debt |
|
|
7,500 |
|
|
|
7,500 |
|
Current operating lease liabilities |
|
|
8,934 |
|
|
|
8,229 |
|
Income taxes payable |
|
|
797 |
|
|
|
2,342 |
|
Other current liabilities |
|
|
17,352 |
|
|
|
19,626 |
|
Total current liabilities |
|
|
107,531 |
|
|
|
121,334 |
|
Long-term debt, net of current portion |
|
|
31,292 |
|
|
|
125,904 |
|
Non-current operating lease liabilities |
|
|
21,978 |
|
|
|
21,189 |
|
Other non-current liabilities |
|
|
2,105 |
|
|
|
746 |
|
Liability for uncertain tax positions |
|
|
2,705 |
|
|
|
2,705 |
|
Deferred income taxes |
|
|
1,703 |
|
|
|
1,729 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
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|
||
Preferred stock, |
|
|
|
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|
|
||
Authorized shares—10,000,000; none issued or outstanding at January 27, 2024 and April 30, 2023 |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
|
|
|
|
||
Authorized shares—100,000,000 |
|
|
|
|
|
|
||
Issued and outstanding shares—28,136,735 shares at January 27, 2024 and 26,216,897 shares at April 30, 2023 |
|
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
593,228 |
|
|
|
384,397 |
|
Accumulated other comprehensive loss |
|
|
(4,888 |
) |
|
|
(4,452 |
) |
Retained earnings |
|
|
224,641 |
|
|
|
171,021 |
|
Total stockholders' equity |
|
|
812,985 |
|
|
|
550,970 |
|
Total liabilities and stockholders’ equity |
|
$ |
980,299 |
|
|
$ |
824,577 |
|
AeroVironment, Inc. Consolidated Statements of Cash Flows (In thousands) |
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|
|
|
|
|
||
|
|
Nine Months Ended |
||||||
|
|
January 27, |
|
January 28, |
||||
|
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
||||||
Operating activities |
|
|
|
|
|
|||
Net income (loss) |
|
$ |
53,620 |
|
|
$ |
(15,694 |
) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
24,969 |
|
|
|
48,109 |
|
Loss from equity method investments |
|
|
1,494 |
|
|
|
2,190 |
|
Amortization of debt issuance costs |
|
|
638 |
|
|
|
634 |
|
Provision for doubtful accounts |
|
|
(67 |
) |
|
|
5 |
|
Reserve for inventory excess and obsolescence |
|
|
11,668 |
|
|
|
3,787 |
|
Other non-cash expense, net |
|
|
783 |
|
|
|
935 |
|
Non-cash lease expense |
|
|
6,923 |
|
|
|
5,866 |
|
Loss on foreign currency transactions |
|
|
54 |
|
|
|
38 |
|
Unrealized loss on available-for-sale equity securities, net |
|
|
2,712 |
|
|
|
1,798 |
|
Deferred income taxes |
|
|
(1,604 |
) |
|
|
(1,250 |
) |
Stock-based compensation |
|
|
12,425 |
|
|
|
7,108 |
|
Loss on disposal of property and equipment |
|
|
115 |
|
|
|
1,193 |
|
Amortization of debt securities discount |
|
|
— |
|
|
|
125 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
36,387 |
|
|
|
6,847 |
|
Unbilled receivables and retentions |
|
|
(41,950 |
) |
|
|
(5,098 |
) |
Inventories |
|
|
(31,901 |
) |
|
|
(43,111 |
) |
Income taxes receivable |
|
|
(8,081 |
) |
|
|
(9,388 |
) |
Prepaid expenses and other assets |
|
|
(15,896 |
) |
|
|
(3,114 |
) |
Accounts payable |
|
|
(10,003 |
) |
|
|
7,789 |
|
Other liabilities |
|
|
(15,321 |
) |
|
|
(157 |
) |
Net cash provided by operating activities |
|
|
26,965 |
|
|
|
8,612 |
|
Investing activities |
|
|
|
|
|
|
||
Acquisition of property and equipment |
|
|
(13,901 |
) |
|
|
(10,116 |
) |
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 |
|
|
(41,432 |
) |
|
|
889 |
|
Financing activities |
|
|
|
|
|
|
||
Principal payments of term loan |
|
|
(95,000 |
) |
|
|
(22,500 |
) |
Holdback and retention payments for business acquisition |
|
|
(500 |
) |
|
|
— |
|
Payment of contingent consideration |
|
|
(2,132 |
) |
|
|
— |
|
Proceeds from shares issued, net of issuance costs |
|
|
88,437 |
|
|
|
20,104 |
|
Payment of debt issuance costs |
|
|
(37 |
) |
|
|
— |
|
Tax withholding payment related to net settlement of equity awards |
|
|
(1,370 |
) |
|
|
(853 |
) |
Exercise of stock options |
|
|
— |
|
|
|
868 |
|
Other |
|
|
(19 |
) |
|
|
(21 |
) |
Net cash used in financing activities |
|
|
(10,621 |
) |
|
|
(2,402 |
) |
Effects of currency translation on cash and cash equivalents |
|
|
(77 |
) |
|
|
695 |
|
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(25,165 |
) |
|
|
7,794 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
132,859 |
|
|
|
77,231 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
107,694 |
|
|
$ |
85,025 |
|
Supplemental disclosures of cash flow information |
|
|
|
|
|
|
||
Cash paid, net during the period for: |
|
|
|
|
|
|
||
Income taxes |
|
$ |
15,195 |
|
|
$ |
1,192 |
|
Interest |
|
$ |
5,850 |
|
|
$ |
5,697 |
|
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 |
|
$ |
— |
|
|
$ |
(26 |
) |
Change in foreign currency translation adjustments |
|
$ |
(436 |
) |
|
$ |
1,433 |
|
Issuances of inventory to property and equipment, ISR in-service assets |
|
$ |
— |
|
|
$ |
4,677 |
|
Acquisitions of property and equipment included in accounts payable |
|
$ |
2,519 |
|
|
$ |
731 |
|
AeroVironment, Inc. Reportable Segment Results (Unaudited) (In thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended January 27, 2024 |
||||||||||||||
|
|
UMS |
|
LMS |
|
MW |
|
Total |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product sales |
|
$ |
104,522 |
|
$ |
51,338 |
|
$ |
63 |
|
|
$ |
155,923 |
|||
Contract services |
|
|
8,768 |
|
|
|
6,320 |
|
|
|
15,567 |
|
|
|
30,655 |
|
|
|
$ |
113,290 |
|
|
$ |
57,658 |
|
|
$ |
15,630 |
|
|
$ |
186,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment adjusted income (loss) from operations |
|
$ |
20,417 |
|
|
$ |
7,562 |
|
|
$ |
(8,103 |
) |
|
|
|
|
|
|
Three Months Ended January 28, 2023 |
||||||||||||||
|
|
UMS |
|
LMS |
|
MW |
|
Total |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product sales |
|
$ |
74,966 |
|
$ |
16,203 |
|
|
$ |
47 |
|
$ |
91,216 |
|||
Contract services |
|
|
17,363 |
|
|
|
7,812 |
|
|
|
18,004 |
|
|
|
43,179 |
|
|
|
$ |
92,329 |
|
|
$ |
24,015 |
|
|
$ |
18,051 |
|
|
$ |
134,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment adjusted income (loss) from operations |
|
$ |
11,792 |
|
|
$ |
(129 |
) |
|
$ |
376 |
|
|
|
|
|
AeroVironment, Inc. Reconciliation of non-GAAP Earnings per Diluted Share (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Nine Months Ended |
|
Nine Months Ended |
||||||||
|
|
January 27, 2024 |
|
January 28, 2023 |
|
January 27, 2024 |
|
January 28, 2023 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per diluted share |
|
$ |
0.50 |
|
|
$ |
(0.03 |
) |
|
$ |
1.98 |
|
$ |
(0.63 |
) |
|
Acquisition-related expenses |
|
|
— |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.04 |
|
Amortization of acquired intangible assets and other purchase accounting adjustments |
|
|
0.16 |
|
|
|
0.22 |
|
|
|
0.38 |
|
|
|
0.69 |
|
Equity method and equity securities investments activity, net |
|
|
(0.03 |
) |
|
|
0.13 |
|
|
|
0.16 |
|
|
|
0.16 |
|
Earnings per diluted share as adjusted (Non-GAAP) |
|
$ |
0.63 |
|
|
$ |
0.33 |
|
|
$ |
2.57 |
|
|
$ |
0.26 |
|
Reconciliation of non-GAAP adjusted EBITDA (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Nine Months Ended |
|
Nine Months Ended |
||||||||
(in millions) |
|
January 27, 2024 |
|
January 28, 2023 |
|
January 27, 2024 |
|
January 28, 2023 |
||||||||
Net income (loss) |
|
$ |
13.9 |
|
|
$ |
(0.7 |
) |
|
$ |
53.6 |
|
$ |
(15.7 |
) |
|
Interest expense, net |
|
|
0.1 |
|
|
|
2.8 |
|
|
|
4.1 |
|
|
|
6.7 |
|
Provision for (benefit from) income taxes |
|
|
1.3 |
|
|
|
(0.5 |
) |
|
|
3.7 |
|
|
|
(8.4 |
) |
Depreciation and amortization |
|
|
9.6 |
|
|
|
15.8 |
|
|
|
25.0 |
|
|
|
48.1 |
|
EBITDA (Non-GAAP) |
|
|
24.9 |
|
|
|
17.4 |
|
|
|
86.4 |
|
|
|
30.7 |
|
Stock-based compensation |
|
|
4.2 |
|
|
|
2.7 |
|
|
|
12.4 |
|
|
|
7.1 |
|
Equity method and equity securities investments activity, net |
|
|
(0.7 |
) |
|
|
3.2 |
|
|
|
4.2 |
|
|
|
4.0 |
|
Amortization of cloud computing arrangement implementation |
|
|
0.5 |
|
|
|
0.1 |
|
|
|
0.9 |
|
|
|
0.4 |
|
Acquisition-related expenses |
|
|
(0.1 |
) |
|
|
0.3 |
|
|
|
1.7 |
|
|
|
1.2 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
28.8 |
|
|
$ |
23.7 |
|
|
$ |
105.6 |
|
|
$ |
43.4 |
|
Reconciliation of Forecast Earnings per Diluted Share (Unaudited) |
||||
|
|
|
|
|
|
|
Fiscal year ending |
||
|
|
April 30, 2024 |
||
Forecast earnings per diluted share |
|
$ |
1.86 - 2.00 |
|
Acquisition-related expenses |
|
|
0.05 |
|
Amortization of acquired intangible assets and other purchase accounting adjustments |
|
|
0.54 |
|
Equity method and equity securities investments activity, net |
|
|
0.24 |
|
Forecast earnings per diluted share as adjusted (Non-GAAP) |
|
$ |
2.69 - 2.83 |
|
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) |
|
$ |
51 - 55 |
|
$ |
(176 |
) |
|
Interest expense, net |
|
|
5 |
|
|
|
9 |
|
Provision for (benefit from) income taxes |
|
|
3 - 4 |
|
|
|
(15 |
) |
Depreciation and amortization |
|
|
36 |
|
|
|
100 |
|
EBITDA (Non-GAAP) |
|
|
95 - 100 |
|
|
|
(82 |
) |
Amortization of cloud computing arrangement implementation |
|
|
1 |
|
|
|
1 |
|
Stock-based compensation |
|
|
17 |
|
|
|
11 |
|
Equity method and equity securities investments activity, net |
|
|
7 |
|
|
|
3 |
|
Acquisition-related expenses |
|
|
2 |
|
|
|
1 |
|
Goodwill impairment |
|
|
— |
|
|
|
156 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
122 - 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240304516443/en/
INVESTOR CONTACT
Jonah Teeter-Balin
Sr. Director, Corporate Development and Investor Relations
AeroVironment, Inc.
https://investor.avinc.com/contact-and-faq/contact-us
MEDIA CONTACT
Ashley Riser
Public Relations Manager
AeroVironment, Inc.
pr@avinc.com
Source: AeroVironment, Inc.
FAQ
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