UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |
The |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Accelerated filer ☐ | ||
Non-accelerated filer ☐ | Smaller reporting company | |
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of February 25, 2022, the number of shares outstanding of the registrant’s common stock, $0.0001 par value, was
AeroVironment, Inc.
Table of Contents
| |||
Consolidated Balance Sheets as of January 29, 2022 (Unaudited) and April 30, 2021 | 3 | ||
4 | |||
5 | |||
7 | |||
8 | |||
9 | |||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 37 | ||
48 | |||
48 | |||
50 | |||
50 | |||
53 | |||
54 | |||
54 | |||
54 | |||
55 | |||
56 |
2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AeroVironment, Inc.
Consolidated Balance Sheets
(In thousands except share and per share data)
January 29, |
| April 30, | |||||
2022 | 2021 | ||||||
| (Unaudited) |
| |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | | $ | | |||
Short-term investments | | | |||||
Accounts receivable, net of allowance for doubtful accounts of $ |
| |
| | |||
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $ |
| |
| | |||
Inventories |
| |
| | |||
Income taxes receivable | | — | |||||
Prepaid expenses and other current assets |
| |
| | |||
Total current assets |
| |
| | |||
Long-term investments | | | |||||
Property and equipment, net |
| |
| | |||
Operating lease right-of-use assets | | | |||||
Deferred income taxes |
| |
| | |||
Intangibles, net | | | |||||
Goodwill | | | |||||
Other assets |
| |
| | |||
Total assets | $ | | $ | | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | | $ | | |||
Wages and related accruals |
| |
| | |||
Customer advances |
| |
| | |||
Current portion of long-term debt | | | |||||
Current operating lease liabilities | | | |||||
Income taxes payable | | | |||||
Other current liabilities |
| |
| | |||
Total current liabilities |
| |
| | |||
Long-term debt, net of current portion | | | |||||
Non-current operating lease liabilities | | | |||||
Other non-current liabilities | | | |||||
Liability for uncertain tax positions |
| |
| | |||
Deferred income taxes | | — | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $ | |||||||
Authorized shares— |
|
| |||||
Common stock, $ | |||||||
Authorized shares— | |||||||
and shares— |
| |
| | |||
Additional paid-in capital |
| |
| | |||
Accumulated other comprehensive (loss) income |
| ( |
| | |||
Retained earnings |
| |
| | |||
Total AeroVironment, Inc. stockholders’ equity |
| |
| | |||
Noncontrolling interest | | | |||||
Total equity | | | |||||
Total liabilities and stockholders’ equity | $ | | $ | |
See accompanying notes to consolidated financial statements (unaudited).
3
AeroVironment, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands except share and per share data)
Three Months Ended | Nine Months Ended | ||||||||||||
January 29, | January 30, | January 29, | January 30, | ||||||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| |||||
Revenue: | |||||||||||||
Product sales | $ | | $ | | $ | | $ | | |||||
Contract services (inclusive of related party revenue of $ |
| |
| |
| |
| | |||||
| |
| |
| |
| | ||||||
Cost of sales: | |||||||||||||
Product sales |
| |
| |
| |
| | |||||
Contract services |
| |
| |
| |
| | |||||
| |
| |
| |
| | ||||||
Gross margin: |
|
| |||||||||||
Product sales | | | | | |||||||||
Contract services | | | | | |||||||||
| |
| |
| | ||||||||
Selling, general and administrative |
| |
| |
| |
| | |||||
Research and development |
| |
| |
| |
| | |||||
(Loss) income from operations |
| ( |
| ( |
| ( |
| | |||||
Other (loss) income: | |||||||||||||
Interest (expense) income, net |
| ( |
| |
| ( |
| | |||||
Other income (expense), net |
| |
| ( |
| ( |
| | |||||
(Loss) income before income taxes |
| ( |
| ( |
| ( |
| | |||||
(Benefit from) provision for income taxes | ( | ( |
| ( |
| | |||||||
Equity method investment income (loss), net of tax |
| |
| ( |
| |
| ( | |||||
Net (loss) income | ( | | ( | | |||||||||
Net loss (income) attributable to noncontrolling interest | | ( | ( | | |||||||||
Net income (loss) attributable to AeroVironment, Inc. | $ | | $ | | $ | ( | $ | | |||||
Net income (loss) per share attributable to AeroVironment, Inc. | |||||||||||||
Basic | $ | — | $ | | $ | ( | $ | | |||||
Diluted | $ | — | $ | | $ | ( | $ | | |||||
Weighted-average shares outstanding: | |||||||||||||
Basic |
| |
| |
| |
| | |||||
Diluted |
| |
| |
| |
| |
See accompanying notes to consolidated financial statements (unaudited).
4
AeroVironment, Inc.
Consolidated Statements of Comprehensive (Loss) Income (Unaudited)
(In thousands)
Three Months Ended | Nine Months Ended | ||||||||||||
January 29, | January 30, | January 29, | January 30, | ||||||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 |
| |||||
Net (loss) income | $ | ( | $ | | $ | ( | $ | | |||||
Other comprehensive (loss) income: | |||||||||||||
Unrealized (loss) gain on available-for-sale investments, net of deferred tax benefit of $ |
| ( |
| |
| ( |
| ( | |||||
Change in foreign currency translation adjustments | ( | — | ( | | |||||||||
Total comprehensive (loss) income | ( | | ( | | |||||||||
Net loss (income) attributable to noncontrolling interest | | ( | ( | | |||||||||
Comprehensive (loss) income attributable to AeroVironment, Inc. | $ | ( | $ | | $ | ( | $ | |
See accompanying notes to consolidated financial statements (unaudited).
5
AeroVironment, Inc.
Consolidated Statements of Stockholders’ Equity
For the nine months ended January 29, 2022 and January 30, 2021 (Unaudited)
(In thousands except share data)
Accumulated |
| |||||||||||||||||||||||
Additional | Other | Total | Non- |
| ||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | AeroVironment, Inc. | Controlling |
| ||||||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| Income (Loss) | Equity | Interest |
| Total |
| ||||||||||
Balance at April 30, 2021 |
| | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||
Net (loss) income |
| — |
| — |
| — |
| ( |
| — | ( | |
| ( | ||||||||||
Unrealized loss on investments | — |
| — |
| — |
| — |
| ( | ( | — |
| ( | |||||||||||
Foreign currency translation | — |
| — |
| — |
| — |
| ( | ( | — |
| ( | |||||||||||
Stock options exercised |
| |
| — |
| |
| — | — | | — |
| | |||||||||||
Restricted stock awards |
| |
| — |
| — |
| — | — | — | — |
| — | |||||||||||
Restricted stock awards forfeited |
| ( |
| — |
| — |
| — | — | — | — |
| — | |||||||||||
Tax withholding payment related to net share settlement of equity awards |
| ( |
| — |
| ( |
| — | — | ( | — |
| ( | |||||||||||
Change in non-controlling interest | — | — | — | — | — | — | | | ||||||||||||||||
Stock based compensation |
| — |
| — |
| |
| — | — | | — |
| | |||||||||||
Balance at January 29, 2022 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | | $ | | ||||||||
Accumulated | ||||||||||||||||||||||||
Additional | Other | Total | Non- | |||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | AeroVironment, Inc. | Controlling | |||||||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| Income (Loss) | Equity | Interest |
| Total | |||||||||||
Balance at April 30, 2020 |
| | $ | | $ | | $ | | $ | | $ | | $ | — | $ | | ||||||||
Net income (loss) |
| — |
| — |
| — |
| |
| — | | ( |
| | ||||||||||
Unrealized loss on investments | — |
| — |
| — |
| — |
| ( | ( | — |
| ( | |||||||||||
Foreign currency translation | — |
| — |
| — |
| — |
| | | — |
| | |||||||||||
Stock options exercised |
| |
| — |
| |
| — | — | | — |
| | |||||||||||
Restricted stock awards |
| |
| — |
| — |
| — | — | — | — |
| — | |||||||||||
Restricted stock awards forfeited |
| ( |
| — |
| — |
| — | — | — | — |
| — | |||||||||||
Tax withholding payment related to net share settlement of equity awards |
| ( |
| — |
| ( |
| — | — | ( | — |
| ( | |||||||||||
Stock based compensation | — |
| — |
| |
| — | — | | — |
| | ||||||||||||
Balance at January 30, 2021 |
| | $ | | $ | | $ | | $ | | $ | | $ | ( | $ | |
6
AeroVironment, Inc.
Consolidated Statements of Stockholders’ Equity
For the three months ended January 29, 2022 and January 30, 2021 (Unaudited)
(In thousands except share data)
Accumulated | |||||||||||||||||||||||
Additional | Other | Total | Non- | ||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | AeroVironment, Inc. | Controlling | ||||||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| (Loss) Income | Equity | Interest |
| Total | ||||||||||
Balance at October 30, 2021 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | | $ | | |||||||
Net income (loss) |
| — |
| — |
| — |
| |
| — | | ( |
| ( | |||||||||
Unrealized loss on investments |
| — |
| — |
| — |
| — |
| ( | ( | — |
| ( | |||||||||
Foreign currency translation | — | — | — | — | ( | ( | — | ( | |||||||||||||||
Stock options exercised | |
| — |
| |
| — |
| — | | — |
| | ||||||||||
Restricted stock awards | | — | — | — | — | — | — | — | |||||||||||||||
Restricted stock awards forfeited |
| ( |
| — |
| — |
| — | — | — | — |
| — | ||||||||||
Stock based compensation |
| — |
| — |
| |
| — | — | | — |
| | ||||||||||
Balance at January 29, 2022 |
| | $ | | $ | | $ | | $ | ( | $ | | $ | | $ | | |||||||
Accumulated | |||||||||||||||||||||||
Additional | Other | Total | Non- | ||||||||||||||||||||
Common Stock | Paid-In | Retained | Comprehensive | AeroVironment, Inc. | Controlling | ||||||||||||||||||
| Shares |
| Amount |
| Capital |
| Earnings |
| Income (Loss) | Equity | Interest |
| Total | ||||||||||
Balance at October 31, 2020 |
| | | | | | | ( | | ||||||||||||||
Net income |
| — |
| — |
| — |
| |
| — | | |
| | |||||||||
Unrealized gain on investments | — | — | — | — | | | — | | |||||||||||||||
Restricted stock awards | | — | — | — | — | — | — | — | |||||||||||||||
Restricted stock awards forfeited |
| ( | — |
| — |
| — | — | — | — |
| — | |||||||||||
Tax withholding payment related to net share settlement of equity awards |
| ( |
| — |
| ( |
| — | — | ( | — |
| ( | ||||||||||
Stock based compensation | — |
| — |
| |
| — | — | | — |
| | |||||||||||
Balance at January 30, 2021 |
| | $ | | $ | | $ | | $ | | $ | | $ | ( | $ | |
See accompanying notes to consolidated financial statements (unaudited).
7