AgEagle Announces 2022 Year-End Financial Results

Rhea-AI Summary

AgEagle Aerial Systems (NYSE American: UAVS) announced a 96% increase in total revenues for the full year ended December 31, 2022, reaching $19.1 million compared to $9.8 million in 2021. Sales of its eBee-branded drones surged 305% to $9.8 million, while sensor sales rose 27% to $8.7 million. However, the company reported a net loss of $58.3 million, primarily due to a $42 million non-cash goodwill impairment charge. Cash on hand decreased to $4.4 million from $14.6 million in the previous year. Looking ahead, the company anticipates continued sales growth and margin expansion in 2023.

Positive

• Total revenues increased 96% to $19.1 million.
• Sales of eBee-branded drones rose 305% to $9.8 million.
• Sensor sales improved by 27% to $8.7 million.
• CFO projects increased sales and margin expansion in 2023.

Negative

• Net loss of $58.3 million, impacted by a $42 million goodwill impairment charge.
• Cash on hand decreased to $4.4 million from $14.6 million in 2021.
• Equity financing activities dropped to $17.9 million compared to $45.6 million in 2021.

Company's Leadership to Host Corporate Update Via Live Audio

Webcast Today at 4:30 PM ET

WICHITA, KS / ACCESSWIRE / April 4, 2023 / AgEagle Aerial Systems Inc. (NYSE American:UAVS) ("AgEagle" or the "Company"), an industry-leading provider of full stack flight hardware, sensors, and software for commercial and government use, today announced its financial results for the full year ended December 31, 2022.

Financial Highlights for the Twelve Months Ended December 31, 2022 Compared to Prior Year

• Total revenues nearly doubled, rising 96% to $19.1 million from $9.8 million.
  • Sales of the Company's proprietary line of eBee^™-branded fixed wing drones and related equipment increased 305% to $9.8 million from $2.4 million.
  • Strong demand for the Company's Altum-PT^™ and RedEdge-P^™ multispectral cameras drove sensor sales up 27% to $8.7 million from $6.8 million.
  • Software-as-a-Services ("SaaS") sales also improved, increasing 11% to approximately $600,000 from approximately $538,000.
• Gross profit margin remained stable at 43% compared to 44%.
• Net loss totaled $58.3 million compared to $30.1 million after factoring a $42 million non-cash goodwill impairment charge in 2022 associated with the Company's SaaS and drone reporting units and a $12 million non-cash impairment charge in 2021 relating to its SaaS reporting unit. In addition, the 2022 net loss was impacted by greater operating and transactional costs as a result of the acquisitions completed during the 2021 fiscal year. This was partially offset by a $6.5 million non-cash gain on debt extinguishment associated with reductions of holdback liabilities realized in the third quarter of 2022 in connection with the Company's acquisitions of senseFly and MicaSense in the prior year.
• Cash on hand as of December 31, 2022 was $4.4 million compared to $14.6 million as of the end of 2021. Cash provided by AgEagle's equity financing activities totaled $17.9 million in 2022 compared to $45.6 million raised in 2021.

For more detailed information on AgEagle's 2022 financial results, please refer to the Company's Annual Report on Form 10-K, which will soon be filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov and on AgEagle's website, www.ageagle.com.

Nicole Fernandez-McGovern, Chief Financial Officer and Executive Vice President of Operations, stated, "2022 marked another year of notable progress with continued momentum in market adoption of our next-generation autonomous solutions, matched by steady execution of our growth strategies. As we look ahead to 2023, we anticipate that AgEagle will continue to increase sales, expand margins and capitalize on the flow through of material cost savings resulting from the consolidation of our operations and business units this past year."

2022 Operational Highlights and Recent Developments

• In March 2022, AgEagle's NDAA compliant eBee TAC^™ was the first approved small unmanned aerial system ("UAS") to be designated as Blue UAS cleared by the Defense Innovation Unit ("DIU") for procurement by the U.S. Department of Defense, including all branches of the military, as well as by other U.S. government agencies.
• In June 2022, the Company's eBee^™ X was the industry's first drone to receive a Design Verification Report from the European Union Aviation Safety Agency, paving the way for European drone operators in 27 European Union Member States, Iceland, Liechtenstein, Norway and Switzerland to seek approvals from their applicable national aviation authorities to use the eBee X to fly Beyond Visual Line of Sight ("BVLOS") missions and conduct Operations Over People ("OOP").
• In July 2022, AgEagle entered into waiver agreements pursuant to which the Company was released from 50% of its payment obligations relating to holdback amounts in connection with the acquisitions of MicaSense and senseFly in 2021, thereby settling more than $7.4 million in debt obligations at a significant and beneficial discount.
• In October 2022, the Company announced that is eBee X series of drones were the first and only Category 3 Small Unmanned Aerial Systems (sUAS) to be approved by the U.S. Federal Aviation Administration for OOP and Operations Over Moving Vehicles in the United States.
• In December 2022, AgEagle introduced its new eBee VISION UAS, providing next generation, real-time, 4K resolution video surveillance capabilities to military, public safety and commercial drone operators worldwide. Last week, AgEagle announced that three branches of European Armed Forces took delivery of eBee VISION units. The Company further revealed that it is currently conducting on-site demonstrations of the eBee VISION for military forces and government agencies in the United States and NATO countries in anticipation of scaled commercial availability in mid-2023.
• In February 2023, AgEagle's value added reseller FEDS, one of the leading drone services companies in the Middle East, won a tender for multiple eBee X drones and sensors for use in environmental mapping operations in the Kingdom of Saudi Arabia.
• Earlier this week, the Company unveiled its new Field Check solution for its Measure Ground Control mobile app and announced new pricing tiers for the software. Field Check's unique feature set enable users to review and validate the quality of their drone-captured imagery on-site. It saves users time and mitigates the costs of project reworks by ensuring data capture that is complete and ready for processing into high-resolution outputs before leaving a site.

"AgEagle continues to make great strides in earning distinction as a drone company that commercial and government organizations worldwide rely on to supply them with numerous competitive advantages and operational benefits afforded by advanced unmanned aerial systems," said Barrett Mooney, AgEagle Chairman and CEO. "Our hard work during the past year, our global network of resellers and business partners, and continued innovation of our full stack of leading-edge UAS solutions are enabling AgEagle to meet the needs of our customers and the evolving demands of a growing industry. As we further consolidate our operations and continue to capitalize on sales momentum in the commercial and government markets, we believe AgEagle is well-positioned for continued success in 2023 and beyond."

Corporate Update Webcast Details

As a reminder, AgEagle's leadership will host the Company's 2022 Year-End Corporate Update via live audio webcast today, April 4, 2023, beginning at 4:30 p.m. ET/1:30 p.m. PT. To access the webcast, please go to https://www.webcaster4.com/Webcast/Page/2160/47760. If you have any difficulty connecting to the webcast, please contact Gateway Group at 949-574-3860. A replay of the discussion will be available on the Company's website at https://ageagle.com/investors/presentations/ within 24 hours following the conclusion of the live event.

About AgEagle Aerial Systems Inc.

Through its three centers of excellence, AgEagle is actively engaged in designing and delivering best-in-class flight hardware, sensors and software that solve important problems for its customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, AgEagle is a leading provider of full stack drone solutions for customers worldwide in the energy, construction, agriculture, and government verticals. For additional information, please visit our website at 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.

AgEagle Aerial Systems Contacts:

Investor Relations:

Gateway Investor Relations
Matt Glover or Cody Cree
Phone: 949-574-3860
Email: UAVS@gatewayir.com

Media:

Email: media@ageagle.com

SOURCE: AgEagle Aerial Systems, Inc.

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FAQ

What were AgEagle's total revenues for 2022?

AgEagle's total revenues for 2022 were $19.1 million, a 96% increase from $9.8 million in 2021.

How much did AgEagle lose in 2022?

AgEagle reported a net loss of $58.3 million for the year ended December 31, 2022.

What is the outlook for AgEagle in 2023?

AgEagle anticipates continued sales growth and margin expansion in 2023.

How much cash did AgEagle have at the end of 2022?

As of December 31, 2022, AgEagle had $4.4 million in cash on hand.

What drove the revenue growth for AgEagle in 2022?

The significant revenue growth was driven by a 305% increase in eBee drone sales and a 27% rise in sensor sales.