AgEagle Aerial Systems Reports Second Quarter 2020 Results

Rhea-AI Summary

AgEagle Aerial Systems (NYSE American: UAVS) reported a substantial revenue increase of 516% for the six months ended June 30, 2020, totaling $408,000. However, the revenue for the second quarter declined to $16,000 from $20,000 year-over-year, primarily due to COVID-19 supply chain impacts. Net loss for the six months was $1.7 million, an increase from $1.3 million in 2019. Cash reserves improved to $12.9 million from $718,000 at year-end 2019, reflecting successful equity financing. A corporate update webcast is scheduled for August 18.

Positive

• Revenue increased 516% to $408,000 for the six-month period compared to $66,000 in 2019.
• Gross profit margin for the six-month period rose significantly to 54%, up from 20% in 2019.
• Cash reserves improved to $12.9 million from $718,000 at the end of 2019.

Negative

• Second quarter revenue decreased to $16,000 from $20,000 year-over-year due to supply chain issues.
• Net loss for the six months increased to $1.7 million from $1.3 million in 2019.
• Net loss available to common stockholders reached $10.8 million, a significant rise from $1.4 million in the comparable period of 2019.

NEODESHA, Kan., Aug. 17, 2020 (GLOBE NEWSWIRE) -- AgEagle Aerial Systems Inc. (NYSE American: UAVS) (“AgEagle or the “Company”), an industry leading provider of UAVs and advanced aerial imagery, data collection and analytics solutions, today announced its second quarter financial results for the three and six months ended June 30, 2020.

Key Financial Highlights

• Revenue increased 516% to $408,000 from $66,000 for the six-month comparable periods in 2020 and 2019. For the three months ended June 30, 2020, revenue was $16,000 compared to $20,000 for the same three months in the prior year. This decline was primarily due to the impact of COVID-19 on AgEagle’s supply chain, resulting in the delivery delay of certain parts needed for the manufacturing and assembly of drones and related drone package delivery equipment. Approximately $770,000 in revenue, originally expected to be realized in the second quarter, will now be booked in the third quarter.
   
• Gross profit margin on sales for the six-month period ended June 30, 2020 increased significantly to 54% from 20% for the comparable period in 2019. Likewise, gross profit margin on sales also improved for the comparable three-month periods ended June 30, 2020 and 2019, rising to 8% from 5%, respectively.
   
• The Company’s net loss for the six months ended June 30, 2020 totaled $1.7 million compared to a net loss of $1.3 million reported for the comparable six months in 2019. For the three months ended June 30, 2020, net loss was $1.3 million compared to a net loss of $739,000 for the same three months in 2019. Overall, the increases in net losses were due to higher operating costs associated to the shifts in our long-term growth strategies. 
   
• The net loss available to common stockholders for the current six month reporting period was $10.8 million, or $0.44 loss per share, as a result of non-cash accounting charges relating to our financing activities. This compared to $1.4 million, or $0.10 loss per share, for the comparable six  months in 2019.  For the same reason, net loss totaled $10.3 million, or $0.31 loss per share, compared to $780,000, or $0.05 loss per share, for the three-month periods in 2020 and 2019, respectively.
   
• As of June 30, 2020, the Company’s balance sheet reflected cash of $12.9 million compared to $718,000 as of December 31, 2019. The Company had no long term debt and total stockholders’ equity increased to $16.0 million compared to $4.3 million as of June 30, 2020 and December 31, 2019, respectively. The material strengthening of the balance sheet was largely due to the successful closing of equity financings completed in the first half of 2020.              

Michael Drozd, Chief Executive Officer of AgEagle, stated, “Since joining AgEagle in mid-May, I have been routinely impressed by my team’s commitment and dedication to AgEagle’s purposeful shift in our long-term business strategy. We are well positioned to weather the effects of the global pandemic and its direct impact on our second quarter revenue recognition.  Moreover, we remain focused on the many opportunities for future expansion, buoyed by our strong cash position which has increased to over $25 million due the recent equity financing we recently announced.  We expect 2020 be be a record year for AgEagle’s revenue growth and position us to accomplish several key strategic objectives going forward.”

To review the Company’s detailed financial results for the three and six months ended June 30, 2020, please refer to our Form 10-Q filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov. 

Corporate Update Webcast

The Company’s management  will host a webcast on Tuesday, August 18, beginning at 11:00 AM Eastern time to provide a corporate update and discuss recent operational highlights. The webcast will be broadcast live and available for replay via the link: https://www.webcaster4.com/Webcast/Page/2160/36280. If you encounter any difficulty connecting to the webcast, please contact Gateway Investor Relations at 949-574-3860.

About AgEagle Aerial Systems Inc.
Founded in 2010 and based in Kansas, AgEagle has earned distinction as one of the industry’s leading pioneers of technologically advanced drones  and aerial imagery-based data collection and analytics solutions. We are trusted to help the world’s growers, consumer packaged goods companies, and their supply chain partners to proactively assess and manage the health of commercial crops, reduce the chemicals in produced foods and products and preserve and protect natural resources. In addition, we are at the leading edge of providing state and territorial departments of agriculture, growers and processors with registration, oversight, compliance/enforcement, and reporting solutions relating to the United States’ emerging hemp cultivation industry. In late 2019, we began pursuing expansion opportunities within the emerging Drone Logistics and Transportation market with the manufacture and assembly of UAVs designed to meet specifications for drones that are meant to carry packaged goods in urban and suburban areas. For more information, please visit www.ageagle.com.

Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from management’s current expectations include those risks and uncertainties relating to our competitive position, the industry environment, potential growth opportunities, and the effects of regulation and events outside of our control, such as natural disasters, wars or health epidemics. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.

Contacts:
Investor Relations
Gateway Investor Relations
Sean Mansouri or Cody Cree
Phone: 949-574-3860
Email: UAVS@gatewayIR.com

Press/Media Contact
Primo PR
Tara Coomans or Laura Nystrom
Phone: 424-278-9199
Email: media@ageagle.com

 

FAQ

What were AgEagle Aerial Systems' revenue figures for Q2 2020?

AgEagle reported Q2 2020 revenue of $16,000, a decline from $20,000 in Q2 2019.

How much did AgEagle's net loss increase in the first half of 2020?

AgEagle's net loss for the six months ended June 30, 2020, was $1.7 million, up from $1.3 million in 2019.

What is AgEagle's cash position as of June 30, 2020?

As of June 30, 2020, AgEagle reported cash reserves of $12.9 million.

When will the corporate update webcast for AgEagle be held?

The corporate update webcast is scheduled for August 18, 2020, at 11:00 AM Eastern time.

What caused the delay in revenue recognition for AgEagle in Q2 2020?

The decline in revenue was primarily due to COVID-19 impacting supply chains and causing delays in parts delivery.