Revenue and Income - Revenue for the three months ended October 28, 2023, was $180.8 million, a 62% increase from $111.6 million for the same period in 2022[181]. - Revenue for the six months ended October 28, 2023 was $333.2 million, an increase of $113.1 million or 51% compared to $220.1 million for the same period in 2022[196]. - Net income for the three months ended October 28, 2023, was $17.8 million, compared to a net loss of $6.6 million for the same period in 2022[181]. - Net income for the six months ended October 28, 2023 was $39.7 million, compared to a net loss of $15.0 million for the same period in 2022[194]. - Adjusted income from operations for the three months ended October 28, 2023 was $30.7 million, compared to a loss of $5.9 million for the same period in 2022[184]. Gross Margin and Expenses - Gross margin for the three months ended October 28, 2023, was $75.4 million, compared to $25.9 million for the same period in 2022, reflecting a significant improvement[181]. - Gross margin for the six months ended October 28, 2023 was $141.0 million, an increase of $81.4 million or 137% compared to $59.6 million for the same period in 2022[200]. - Research and development expenses for the three months ended October 28, 2023, were $22.0 million, up from $16.6 million in the same period in 2022[181]. - Selling, general, and administrative expenses for the three months ended October 28, 2023, were $28.1 million, compared to $23.6 million for the same period in 2022[181]. - SG&A expense for the six months ended October 28, 2023 was $52.0 million, or 16% of revenue, down from $45.6 million or 21% of revenue in the prior year[201]. - R&D expense for the six months ended October 28, 2023 was $37.5 million, or 11% of revenue, compared to $31.6 million or 14% of revenue for the same period in 2022[201]. Cash Flow and Backlog - Net cash used in operating activities for the six months ended October 28, 2023 was $(25.6) million, a decrease from net cash provided of $31.9 million in the prior year[218]. - Funded backlog as of October 28, 2023 was approximately $487.0 million, up from $424.1 million as of April 30, 2023[206]. - Unfunded backlog as of October 28, 2023 was $173.2 million, which does not guarantee future orders[207]. Adjustments and Impairments - Favorable cumulative catch-up adjustments for the three months ended October 28, 2023, amounted to $4.1 million, primarily due to final cost adjustments on seven contracts[165]. - Unfavorable cumulative catch-up adjustments for the same period were $1.3 million, related to higher than expected costs on seven contracts[165]. - For the six months ended October 28, 2023, favorable cumulative catch-up adjustments totaled $5.6 million, while unfavorable adjustments were $2.0 million[170]. - The company recognized a goodwill impairment charge of $156.0 million in the MUAS reporting unit during the fiscal year ended April 30, 2023, due to decreased projected future cash flows[176]. - The company has not identified any events that could trigger an impairment review prior to the annual goodwill impairment test as of October 28, 2023[177]. Financing and Investments - The company sold 807,370 shares for total gross proceeds of $91.3 million during the three and six months ended October 28, 2023[209]. - The total purchase price for the Tomahawk acquisition was $134.5 million, consisting of $109.8 million in stock and $24.2 million in cash[216]. - Net cash used in investing activities increased by $41.1 million to $37.6 million for the six months ended October 28, 2023, compared to net cash provided of $3.4 million for the same period in 2022[221]. - Net cash provided by financing activities increased by $42.5 million to $31.5 million for the six months ended October 28, 2023, compared to net cash used of $10.9 million for the same period in 2022[222]. Market Risks and Accounting - The current outstanding balance of the Credit Facilities is $80.0 million, bearing a variable interest rate, which may increase if market interest rates continue to rise[225]. - The company is exposed to various market risk factors, including fluctuations in interest rates and foreign currency exchange rates[224]. - The company has not experienced significant foreign exchange gains or losses, as a significant part of sales and expenses are denominated in U.S. dollars[226]. - The company engages in forward contracts in foreign currencies to limit exposure on non-U.S. dollar transactions[226]. - The company did not adopt any new accounting standards during the six months ended October 28, 2023[223].

Financial Data and Key Metrics Changes - First quarter revenue rose to $152 million, a 40% increase year-over-year, marking the best Q1 in the company's history [6][17] - Funded backlog reached a record $540 million, up from $424 million at the start of fiscal year 2024, reflecting $268 million of new bookings in the first quarter [6][26] - Gross margin for the first quarter was $65.7 million, a 95% increase from $33.7 million in the previous year, with gross margin percentage rising to 43% from 31% [7][21] - Adjusted EBITDA for the first quarter was $37 million, representing a 54% increase year-over-year [22] Business Line Data and Key Metrics Changes - Unmanned Systems segment revenue grew 45% year-over-year to $98.2 million, driven by strong demand for small UAS products [11][18] - Loitering Munitions segment revenue increased 34% year-over-year to $30.9 million, supported by shipments to allied countries [14][19] - MacCready Works segment revenue rose 31% year-over-year to $23.2 million, with strong demand for services from U.S. DoD agencies [16][19] Market Data and Key Metrics Changes - The company continues to see robust demand for unmanned systems both domestically and internationally, particularly in light of geopolitical tensions [29][30] - The backlog for Loitering Munitions is primarily driven by U.S. government contracts, with expectations for continued international demand [45][46] Company Strategy and Development Direction - The company plans to acquire Tomahawk Robotics for $120 million to enhance multi-domain control of unmanned solutions [6][8] - The acquisition aims to simplify the integration of various unmanned systems and improve operational efficiency for customers [9][63] - The company expects to maintain a favorable product mix, with product revenues projected to remain above 70% of total revenue for the fiscal year [20][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revised revenue guidance of $645 million to $675 million for fiscal year 2024, citing strong demand and a record backlog [27][28] - The geopolitical environment is seen as supportive for the company's growth, with expectations for continued U.S. government investment in unmanned systems [30][31] - Management acknowledged potential challenges related to supply chain issues but remains optimistic about meeting production demands [58][60] Other Important Information - The company has consolidated its reporting segments into Unmanned Systems, Loitering Munitions, and MacCready Works [11] - The company welcomed Admiral Phil Davidson to its Board of Directors, enhancing its strategic capabilities [32] Q&A Session Summary Question: What has changed in the revenue outlook since last quarter? - Management highlighted a strong first quarter performance and record backlog as key factors for raising revenue guidance [36] Question: Can you discuss the acquisition of Tomahawk Robotics? - The acquisition is aimed at simplifying the integration of various robotic systems and enhancing AI capabilities, which are critical for modern warfare [39][40] Question: What is the expected product versus service revenue mix going forward? - Management expects a favorable shift towards product sales, which generally yield higher gross margins [43] Question: How is the backlog influenced by Foreign Military Sales (FMS)? - The backlog is strong across all segments, with significant potential for future FMS contracts, particularly for Loitering Munitions [46][50] Question: How is the company positioned for new U.S. government programs? - The company is well-positioned to participate in new U.S. government initiatives, leveraging its extensive portfolio in unmanned systems [52][53] Question: What are the expectations for the Ukraine Puma contract? - Management is engaged in additional contracts and expects continued demand for its systems in Ukraine [55][56] Question: What supply chain challenges is the company facing? - While supply chain issues persist, management has secured long lead items and is working closely with suppliers to meet production demands [58][60] Question: Why acquire Tomahawk instead of partnering? - The acquisition allows for deeper integration and faster growth, providing a competitive edge in delivering advanced solutions to customers [62][63]

First Quarter Fiscal Year 2024 Earnings Presentation September 5, 2023 026250 Slide 1 © 2023 AeroVironment, Inc. Safe Harbor Statement Certain statements in this presentation may constitute "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,” “anticipat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended July 29, 2023 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: 001-33261 AEROVIRONMENT, INC. (Exact name of registrant as specified in its charter) Delaware 95-2705790 (State or other jur ...

AeroVironment, Inc. (NASDAQ:AVAV) Q4 2023 Earnings Conference Call June 27, 2023 4:30 PM ET Company Participants Jonah Teeter-Balin - Senior Director, Corporate Development and Investor Relations Wahid Nawabi - President and Chief Executive Officer Kevin McDonnell - Senior Vice President and Chief Financial Officer Conference Call Participants Kenneth Herbert - RBC Capital Markets Louie DiPalma - William Blair Greg Konrad - Jefferies Jan-Frans Engelbrecht - Baird Operator Good day and thank you for standing ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended April 30, 2023 ☐ 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 001-33261 AEROVIRONMENT, INC. (Exact name of registrant as specified in its charter) Delaware 95-2705790 (State or other jurisdiction of ...

Slide 1 © 2023 AeroVironment, Inc. 052620 Third Quarter Fiscal Year 2023 Earnings Presentation March 6, 2023 Safe Harbor Statement Certain statements in this presentation may constitute "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," ...

AeroVironment, Inc. (NASDAQ:AVAV) Q3 2023 Earnings Conference Call March 6, 2023 4:30 PM ET Company Participants Jonah Teeter-Balin - Senior Director-Corporate Development & IR Wahid Nawabi - President and Chief Executive Officer Kevin McDonnell - Senior Vice President and Chief Financial Officer Conference Call Participants Peter Arment - R.W. Baird Austin Moeller - Canaccord Genuity Louie DiPalma - William Blair Ken Herbert - RBC Capital Markets Brian Ruttenbur - Imperial Capital Pete Skibitski - Alembic ...

Revenue and Profitability - Revenue for the three months ended January 28, 2023, was $134.4 million, compared to $90.1 million for the same period in 2022, representing a 49% increase[192]. - Revenue for the three months ended January 28, 2023, was $134.4 million, an increase of $44.3 million, or 49%, compared to $90.1 million for the same period in 2022[196]. - Gross margin for the three months ended January 28, 2023, was $45.5 million, up from $21.4 million in the prior year, indicating a significant improvement in profitability[192]. - Gross margin for the three months ended January 28, 2023, was $45.5 million, representing an increase of $24.1 million, or 112%, compared to $21.4 million for the same period in 2022[198]. - Gross margin for the nine months ended January 28, 2023, was $105.1 million, a 13% increase from $92.6 million in the previous year, maintaining a gross margin percentage of 30%[217]. Expenses - Research and development expenses for the three months ended January 28, 2023, were $16.2 million, compared to $13.0 million for the same period in 2022, reflecting a 24% increase[192]. - Selling, general, and administrative expenses for the three months ended January 28, 2023, were $24.7 million, slightly higher than $22.5 million in the prior year[192]. - Selling, General and Administrative (SG&A) expenses for the three months ended January 28, 2023, were $24.7 million, or 18% of revenue, compared to $22.5 million, or 25% of revenue, for the same period in 2022[201]. - Research and Development (R&D) expenses for the three months ended January 28, 2023, were $16.2 million, or 12% of revenue, compared to $13.0 million, or 14% of revenue, for the same period in 2022[202]. - SG&A expenses decreased to $70.3 million, or 20% of revenue, compared to $74.5 million, or 24% of revenue, for the same period in 2022[218]. - R&D expenses increased to $47.8 million, or 13% of revenue, from $41.0 million, also 13% of revenue, due to enhanced product capabilities and new product line development[218]. Net Loss and Adjusted Income - The company reported a net loss of $0.7 million for the three months ended January 28, 2023, compared to a net loss of $35,000 for the same period in 2022[192]. - Adjusted income from operations for the three months ended January 28, 2023, was $12.0 million, compared to an adjusted loss of $4.4 million for the same period in 2022[196]. Cash Flow and Backlog - Net cash provided by operating activities increased by $32.0 million to $8.8 million for the nine months ended January 28, 2023, compared to a net cash used of $23.2 million in the prior year[236]. - Funded backlog as of January 28, 2023, was approximately $413.9 million, up from $210.8 million as of April 30, 2022[224]. - Unfunded backlog was $387.0 million as of January 28, 2023, including a $235.2 million contract pending export license approval[225]. Interest Expense and Tax Rate - Interest expense, net for the three months ended January 28, 2023, was $2.8 million, compared to $1.5 million for the same period in 2022, primarily due to higher interest rates[202]. - Interest expense, net for the nine months ended January 28, 2023, was $6.7 million, an increase from $4.2 million in the same period in 2022, primarily due to higher interest rates[219]. - The effective income tax rate for the three months ended January 28, 2023, was 67.2%, down from 98.7% for the same period in 2022[204]. - Effective income tax rate decreased to 38.3% for the nine months ended January 28, 2023, from 69.1% in the prior year, influenced by expected federal R&D tax credits[220]. Risks and Future Outlook - The MUAS reporting unit is at an increased risk of failing future quantitative goodwill impairment tests, with its estimated fair value exceeding its carrying value by approximately 10%[188]. - The company expects lower levels of MUAS service revenues to continue into fiscal 2024 due to the completion of certain MUAS site locations[196]. - The company anticipates inflationary and supply chain constraints to continue impacting gross margin throughout fiscal year 2023[201]. Foreign Exchange and Financing Activities - The company has not experienced significant foreign exchange gains or losses, as a significant part of sales and expenses are in U.S. dollars[243]. - The acquisition of Telerob for $46.2 million impacted cash flows, with a portion of cash now denominated in Euros[237][243]. - The current outstanding balance of the Credit Facilities is $167.5 million, bearing a variable interest rate, which may increase if market interest rates continue to rise[241]. - The market interest rate has increased significantly, which could lead to higher interest payments on the Credit Facilities[241].