Innovative Solutions & Support, Inc. Announces Third Quarter Fiscal 2023 Financial Results
For the third quarter of fiscal 2023, net sales increased
Shahram Askarpour, Chief Executive Officer of IS&S, said, “In the third quarter we successfully executed on both our short- and long-term strategies while delivering attractive returns for our shareholders. Most significantly, we licensed several product lines from Honeywell Aerospace, enhancing our current offering with product lines that can be found on literally thousands of aircraft in our target air transport and business aviation markets, with potential to expand that market to the military platform. We expect this license and asset acquisition, together with continued strong organic revenue such as achieved in this quarter, to represent an important inflection point in our revenue growth rate, which we anticipate will have a one-time annual impact of
Askarpour continued, “Core operations were also strong in the quarter, with
The Company had
New orders in the third quarter of fiscal 2023 were approximately
Conference Call
The Company will be hosting a conference call on Thursday, August 10, 2023 at 10:00 AM ET to discuss these results and the Company’s business outlook and product development. Please use the following dial- in number to register your name and company affiliation for the conference call: 877-451-6152 and ask to join the Innovative Solutions & Support call. The call will also be carried live on the Investor Relations page of the Company web site at www.innovative-ss.com.
About Innovative Solutions & Support, Inc.
Headquartered in
In addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, statements about future revenue, financial performance and profitability, future business opportunities, and the impact of licenses, including the Honeywell license. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions, risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, the Company’s ability to efficiently integrate licensed product lines, including the Honeywell asset licensed products, into its operations; a reduction in anticipated orders; an economic downturn; changes in the competitive marketplace and/or customer requirements; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the economic and business environments in which the Company operates. Such factors are detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and subsequent reports filed with the Securities and Exchange Commission. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Innovative Solutions & Support, Inc. |
||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||
(unaudited) |
||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
Net Sales: | ||||||||||||
Product | $ |
7,893,624 |
$ |
6,935,976 |
$ |
21,383,435 |
$ |
20,279,371 |
||||
Engineering development contracts |
|
65,583 |
|
432,482 |
|
198,203 |
||||||
Returns and allowances |
|
- |
|
- |
|
- |
|
- |
||||
Total net sales |
|
7,959,208 |
|
6,935,976 |
|
21,815,917 |
|
20,477,574 |
||||
Cost of sales: | ||||||||||||
Product |
|
3,202,870 |
|
2,879,462 |
|
8,538,219 |
|
8,253,982 |
||||
Engineering development contracts |
|
21,692 |
|
79,098 |
|
16,748 |
||||||
Total cost of sales |
|
3,224,562 |
|
2,879,462 |
|
8,617,317 |
|
8,270,729 |
||||
Gross profit |
|
4,734,645 |
|
4,056,514 |
|
13,198,600 |
|
12,206,845 |
||||
Operating expenses: | ||||||||||||
Research and development |
|
851,296 |
|
676,381 |
|
2,387,939 |
|
2,062,937 |
||||
Selling, general and administrative |
|
2,395,714 |
|
1,694,233 |
|
7,104,212 |
|
5,226,015 |
||||
Total operating expenses |
|
3,247,010 |
|
2,370,614 |
|
9,492,151 |
|
7,288,952 |
||||
Operating income |
|
1,487,635 |
|
1,685,900 |
|
3,706,449 |
|
4,917,893 |
||||
Interest income |
|
185,651 |
|
10,429 |
|
432,495 |
|
10,871 |
||||
Interest (expense) | ||||||||||||
Other income |
|
90,050 |
|
21,608 |
|
131,504 |
|
49,401 |
||||
Income before income taxes |
|
1,763,337 |
|
1,717,937 |
|
4,270,448 |
|
4,978,165 |
||||
Income tax expense |
|
339,958 |
|
358,763 |
|
877,315 |
|
1,056,363 |
||||
Net income | $ |
1,423,379 |
$ |
1,359,174 |
$ |
3,393,133 |
$ |
3,921,802 |
||||
Net income per common share: | ||||||||||||
Basic | $ |
0.08 |
$ |
0.08 |
$ |
0.20 |
$ |
0.23 |
||||
Diluted | $ |
0.08 |
$ |
0.08 |
$ |
0.20 |
$ |
0.23 |
||||
Cash dividends per share: | $ |
- |
$ |
- |
$ |
- |
$ |
- |
||||
Weighted average shares outstanding: | ||||||||||||
Basic |
|
17,383,815 |
|
17,261,349 |
|
17,383,815 |
|
17,261,349 |
||||
Diluted |
|
17,383,815 |
|
17,261,349 |
|
17,383,815 |
|
17,261,349 |
Innovative Solutions & Support, Inc. | |||||||||||
Consolidated Statements of Cash Flows |
|||||||||||
(unaudited) |
|||||||||||
For the Three Months Ended March 31 , | |||||||||||
2023 |
2022 |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ |
1,423,379 |
|
$ |
1,359,174 |
|
|||||
Adjustments to reconcile net income to net cash | |||||||||||
provided by operating activities: | |||||||||||
Depreciation and amortization |
|
87,503 |
|
|
90,028 |
|
|||||
Share-based compensation expense | |||||||||||
Stock options |
|
110,029 |
|
|
45,089 |
|
|||||
Stock awards |
|
104,054 |
|
|
13,331 |
|
|||||
Loss on disposal of property and equipment |
|
357 |
|
||||||||
Impairment of long-lived aassets |
|
44,400 |
|
||||||||
Deferred income taxes |
|
(50,851 |
) |
|
258,596 |
|
|||||
(Increase) decrease in: | |||||||||||
Accounts receivable |
|
(1,977,368 |
) |
|
1,052,330 |
|
|||||
Unbilled Receivables |
|
(89,420 |
) |
||||||||
Inventories |
|
157,223 |
|
|
(120,920 |
) |
|||||
Prepaid expenses and other current assets |
|
5,513 |
|
|
114,298 |
|
|||||
Other non-current assets |
|
2,601 |
|
||||||||
Income taxes receivable |
|
- |
|
|
- |
|
|||||
Increase (decrease) in: | |||||||||||
Accounts payable |
|
(732,085 |
) |
|
7,788 |
|
|||||
Accrued expenses |
|
(118,189 |
) |
|
290,153 |
|
|||||
Income taxes payable |
|
(152,191 |
) |
|
(179,833 |
) |
|||||
Contract liability |
|
(88,778 |
) |
|
52,388 |
|
|||||
Net cash provided by operating activities |
|
(1,274,181 |
) |
|
2,982,779 |
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment |
|
(84,933 |
) |
|
(76,872 |
) |
|||||
Proceeds from the sale of property and equipment |
|
- |
|
||||||||
Acquisition of a business |
|
(35,860,000 |
) |
||||||||
Net cash used in investing activities |
|
(35,944,933 |
) |
|
(76,872 |
) |
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
- |
|
|
17,154 |
|
|||||
Proceeds from exercise of stock options |
|
- |
|
||||||||
Debt proceeds |
|
20,000,000 |
|
||||||||
Net cash provided by financing activities |
|
20,000,000 |
|
|
17,154 |
|
|||||
Net increase in cash and cash equivalents |
|
(17,219,114 |
) |
|
2,923,061 |
|
|||||
Cash and cash equivalents, beginning of quarter |
|
19,791,346 |
|
|
11,618,840 |
|
|||||
Cash and cash equivalents, end of quarter | $ |
2,572,233 |
|
$ |
14,541,901 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230809383854/en/
Michael Linacre
610-646-0350
mlinacre@innovative-ss.com
Source: Innovative Solutions & Support, Inc.