AeroVironment, Inc. (NASDAQ:AVAV) Q4 2021 Earnings Conference Call June 29, 2021 4:30 PM ET Company Participants Steven Gitlin - Chief Marketing Officer & Vice President of Investor Relations Wahid Nawabi - President & Chief Executive Officer Kevin McDonnell - Senior Vice President & Chief Financial Officer Conference Call Participants Pete Skibitski - Alembic Global Peter Arment - Baird Joseph DeNardi - Stifel Ken Herbert - Canaccord Genuity Louie DiPalma - William Blair Steven Gitlin Good afternoon, ladie ...

Financial Performance - The company reported third quarter revenue of $78.8 million, a 27% increase year-over-year from $61.9 million [6][17] - Earnings per diluted share were $0.01, up from a loss of $0.04 in the prior year, with non-GAAP earnings per diluted share at $0.14, an increase of $0.15 compared to the prior year [6][23] - Gross margin for the third quarter was $28.6 million or 36% of revenue, down from 38% in the prior year due to an unfavorable product mix [19] - For the first three quarters of fiscal 2021, revenue was $258.9 million, a 12% increase from $232.1 million in the same period last year [18] Business Line Performance - Small unmanned aircraft systems (UAS) represented 64% of total revenue, with a 37% increase year-over-year [12][17] - Tactical missile systems (TMS) accounted for 25% of revenue, showing a significant 148% increase from the previous year [17] - High-altitude pseudo-satellites (HAPS) represented 9% of revenue, with ongoing development and testing [15] Market Data - The international market for small UAS remains strong, contributing to a healthy pipeline despite travel restrictions due to COVID-19 [12] - The company has seen increased demand for ISR solutions from allied nations, particularly in regions where the U.S. military has reduced its presence [30] Company Strategy and Industry Competition - The company is executing a long-term growth strategy through transformative acquisitions, including Telerob, Arcturus UAV, and Progeny Systems Corporation's Intelligent Systems Group [7][9][10] - The acquisitions are expected to enhance the company's capabilities in unmanned systems and artificial intelligence, positioning it for future growth [11][33] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal year 2021 objectives, anticipating revenue between $400 million and $410 million [30][31] - The company expects adjusted EBITDA of $64 million to $69 million and earnings per diluted share of $0.76 to $0.96 for the fiscal year [31] - Preliminary expectations for fiscal year 2022 include revenue of $560 million to $580 million, reflecting strong growth potential [34] Other Important Information - The company reported a strong cash position of $384.3 million at the end of the third quarter, an increase of $66.6 million from the end of fiscal 2020 [25] - Funded backlog at the end of Q3 was $103.9 million, a decrease from the previous year, primarily due to delays caused by the pandemic [28] Q&A Session Summary Question: Insights on fiscal 2022 guidance and operations - Management indicated that the guidance for fiscal 2022 reflects strong demand and the positive impact of recent acquisitions, with a healthy pipeline of opportunities [39][40] Question: Impact of COVID-19 on international small UAS - Management acknowledged delays in contract timing due to COVID-19 but noted a robust pipeline of international opportunities for small UAS [45][46] Question: Competitive landscape for HAPS and patents - Management expressed confidence in the competitive position of the Sunglider and highlighted numerous patents that protect their technology [58][60] Question: Organic revenue growth in fiscal 2022 - Management stated that organic revenue growth would be quantified in future calls, emphasizing a healthy pipeline and strong positioning for long-term growth [66][70]

Revenue and Gross Margin - Revenue for the three months ended January 30, 2021 increased by $16.9 million (27%) to $78.8 million compared to $61.9 million in the same period last year, driven by a $21.9 million increase in product revenue partially offset by a $5.0 million decrease in service revenue[167] - Revenue for the nine months ended January 30, 2021 increased by $26.8 million (12%) to $258.9 million compared to $232.1 million in the same period last year, driven by higher product and service revenue[176] - Gross margin for the three months ended January 30, 2021 increased by $5.1 million (22%) to $28.6 million compared to $23.5 million in the same period last year, primarily due to higher product sales[170] - Gross margin increased by $5.0 million to $104.9 million, but as a percentage of revenue, it decreased from 43% to 41% due to an unfavorable product mix[178] Cost of Sales and Expenses - Cost of sales for the three months ended January 30, 2021 increased by $11.7 million (31%) to $50.1 million compared to $38.4 million in the same period last year, primarily due to higher product sales and unfavorable product mix[168] - Cost of sales increased by $21.9 million (17%) to $154.0 million for the nine months ended January 30, 2021, primarily due to higher product and service costs[177] - SG&A expense for the three months ended January 30, 2021 increased to $15.7 million (20% of revenue) compared to $13.2 million (21% of revenue) in the same period last year, primarily due to acquisition-related expenses[171] - SG&A expenses decreased to $42.6 million (16% of revenue) from $43.1 million (19% of revenue), primarily due to lower COVID-19 related expenses[179] - R&D expense for the three months ended January 30, 2021 increased by $2.3 million (20%) to $13.6 million compared to $11.4 million in the same period last year, driven by development activities for enhanced product capabilities and new product lines[171] - R&D expenses increased by $5.8 million (19%) to $36.7 million, driven by enhanced product capabilities and new product line development[180] Net Income and Adjustments - Net income for the three months ended January 30, 2021 was $0.3 million compared to a net loss of $1.0 million in the same period last year[169] - Net income for the nine months ended January 30, 2021 was $12.4 million compared to $23.6 million in the same period last year[174] - Gross favorable adjustments for the three months ended January 30, 2021 were $0.4 million compared to $1.4 million in the same period last year[162] - Net favorable adjustments for the nine months ended January 30, 2021 were $0.8 million compared to $1.2 million in the same period last year[164] Backlog and Financial Commitments - Funded backlog as of January 30, 2021 was $103.9 million, with an additional $116.1 million in unfunded backlog[183][184] - The company committed $2.1 million to a limited partnership fund, with a total commitment of $10.0 million, of which $2.9 million remains[192] Acquisitions and Financing - The company entered into a $300 million Credit Facility, including a $100 million revolving credit facility and a $200 million term loan, to finance the Arcturus Acquisition[186] - The company entered into a share purchase agreement to acquire Telerob for €51 million, including contingent consideration payments[203] Cash Flow - Net cash provided by operating activities increased by $63.9 million to $79.0 million, primarily due to improved collections of receivables[194] - Net cash used in investing activities decreased by $44.2 million to $6.2 million, mainly due to reduced business acquisition costs[195]

AeroVironment, Inc. (NASDAQ:AVAV) Q2 2021 Earnings Conference Call December 8, 2020 4:30 PM ET Company Participants Steven Gitlin - Chief Marketing Officer and Vice President of Investor Relations Wahid Nawabi - President and Chief Executive Officer Kevin McDonnell - SVP and Chief Financial Officer Conference Call Participants Ken Herbert - Canaccord Genuity Pete Skibitski - Alembic Global Advisors Peter Arment - Baird Joseph De Nardi - Stifel, Nicolaus & Company Louie DiPalma - William Blair Steven Gitlin ...

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 October 31, 2020 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 ...

AeroVironment, Inc. (NASDAQ:AVAV) Q1 2021 Results Earnings Conference Call September 9, 2020 4:30 PM ET Company Participants Steven Gitlin - Chief Marketing Officer and Vice President of Investor Relations Wahid Nawabi - President and Chief Executive Officer Kevin McDonnell - SVP and Chief Financial Officer Conference Call Participants Ken Herbert - Canaccord Genuity Joseph De Nardi - Stifel, Nicolaus & Company Pete Skibitski - Alembic Global Advisors Peter Arment - Baird Louie DiPalma - William Blair Steve ...