AeroVironment Announces Fiscal 2025 First Quarter Results

ARLINGTON, Va.--()--AeroVironment, Inc. (“AeroVironment” or the “Company”) reported today financial results for the fiscal first quarter ended July 27, 2024.

First Quarter Highlights:

  • Record first quarter revenue of $189.5 million up 24% year-over-year
  • First quarter net income of $21.2 million and adjusted EBITDA of $37.2 million
  • In August 2024 awarded U.S. Army Lethal Unmanned Systems Indefinite Delivery, Indefinite Quantity (“IDIQ”) with a record contract ceiling value of $990 million and initial funding of $128 million

“AeroVironment has once again delivered excellent results, including record first-quarter revenue that’s 24% higher than the same period last fiscal year,” said Wahid Nawabi, AeroVironment chairman, president and chief executive officer. “Our Loitering Munition Systems segment continues to be the highest growth driver for the company posting first-quarter revenue, 68% higher than the same quarter last year.

“With a growing pipeline and solid operating performance, AeroVironment is working toward achieving another record fiscal year, and we are confident that our success will carry forward into future years.”

FISCAL 2025 FIRST QUARTER RESULTS

Revenue for the first quarter of fiscal 2025 was $189.5 million, an increase of 24% as compared to $152.3 million for the first quarter of fiscal 2024, reflecting higher product sales of $40.0 million, partially offset by a decrease in service revenue of $2.9 million. From a segment standpoint, the year-over-year increase was due to revenue growth in Loitering Munitions Systems (“LMS”) of 68% and UnCrewed Systems (“UxS”) of 22%, partially offset by a decrease in MacCready Works (“MW”) of 24%.

Gross margin for the first quarter of fiscal 2025 was $81.5 million, an increase of 24% as compared to $65.7 million for the first quarter of fiscal 2024, reflecting higher product gross margin of $16.1 million, partially offset by lower service margin of $0.3 million. As a percentage of revenue, gross margin remained consistent at 43%. Gross margin was negatively impacted by an increase of $1.3 million of intangible amortization expense and other related non-cash purchase accounting expenses.

Income from operations for the first quarter of fiscal 2025 was $23.1 million as compared to $26.4 million for the first quarter of last fiscal year. The decrease year-over-year was due to an increase in selling, general and administrative (“SG&A”) expense of $10.0 million and an increase in research and development (“R&D”) expense of $9.1 million, partially offset by higher gross margin of $15.8 million.

Other loss, net, for the first quarter of fiscal 2025 was $0.5 million, as compared to $3.1 million for the first quarter of last fiscal year. The decrease in other loss, net was primarily due to a decrease in net interest expense and a decrease in net unrealized losses on investment holdings.

Provision for income taxes for the first quarter of fiscal 2025 was $1.5 million, as compared to $1.3 million for the first quarter of last fiscal year.

Net income for the first quarter of fiscal 2025 was $21.2 million, or $0.75 per diluted share, as compared to $21.9 million, or $0.84 per diluted share, in the prior-year period, respectively.

Non-GAAP adjusted EBITDA for the first quarter of fiscal 2025 was $37.2 million and non-GAAP earnings per diluted share were $0.89, as compared to $37.3 million and $1.00, respectively, for the first quarter of fiscal 2024.

BACKLOG

As of July 27, 2024, funded backlog (defined as remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $372.9 million, as compared to $400.2 million as of April 30, 2024. Funded backlog as of July 27, 2024 includes only initial funding for Switchblade 300 and 600s for the recently announced program wins such as the Low Altitude Stalking and Strike Ordnance or “LASSO” program, Organic Precision Fires-Light or “OPF-L” program, the Replicator Initiative, Ukraine Aid Initiative and our first Lithuanian order. Funded backlog does not include $128 million of initial funding under the recently announced IDIQ contract to deliver LMS systems for the U.S. Army’s Directed Requirement for Lethal Unmanned Systems with a contract ceiling value of $990 million. Additional funding for each of these programs is anticipated in our full year plan.

FISCAL 2025 — OUTLOOK FOR THE FULL YEAR

For fiscal year 2025, the Company continues to expect revenue of between $790 million and $820 million, net income of between $74 million and $83 million, Non-GAAP adjusted EBITDA of between $143 million and $153 million, earnings per diluted share of between $2.61 and $2.92 and non-GAAP earnings per diluted share, which excludes amortization of intangible assets, other non-cash purchase accounting expenses and equity securities investments gains or losses, of between $3.18 and $3.49.

The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, subject to certain risks and uncertainties, including certain assumptions with respect to our ability to efficiently and on a timely basis integrate acquisitions, obtain and retain government contracts, changes in the timing and/or amount of government spending, react to changes in the demand for our products and services, activities of competitors, changes in the regulatory environment, and general economic and business conditions in the United States and elsewhere in the world. Investors are reminded that actual results may differ materially from these estimates.

CONFERENCE CALL AND PRESENTATION

In conjunction with this release, AeroVironment, Inc. will host a conference call today, Wednesday, September 4, 2024, at 4:30 pm Eastern Time that will be webcast live. Wahid Nawabi, chairman, president and chief executive officer, Kevin P. McDonnell, chief financial officer and Jonah Teeter-Balin, vice president corporate development and investor relations, will host the call.

Investors may access the call by registering via the following participant registration link up to ten minutes prior to the start time.

Participant registration URL: https://register.vevent.com/register/BIabc39fbc6b534eb4aac7d5fda54c1d33

Investors may also listen to the live audio webcast via the Investor Relations page of the AeroVironment, Inc. website, http://investor.avinc.com. Please allow 15 minutes prior to the call to download and install any necessary audio software.

A supplementary investor presentation for the first quarter fiscal year 2025 can be accessed at https://investor.avinc.com/events-and-presentations.

Audio Replay

An audio replay of the event will be archived on the Investor Relations section of the Company's website at http://investor.avinc.com.

ABOUT AEROVIRONMENT, INC.

AeroVironment (NASDAQ: AVAV) provides technology solutions at the intersection of robotics, sensors, software analytics and connectivity that deliver more actionable intelligence so you can Proceed with Certainty. Headquartered in Virginia, AeroVironment is a global leader in intelligent, multi-domain robotic systems, and serves defense, government and commercial customers. For more information, visit www.avinc.com.

FORWARD-LOOKING STATEMENTS

This press release contains "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,” “expect,” “estimate,” “intend,” “project,” “plan,” or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements.

Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the impact of our ability to successfully close and integrate acquisitions into our operations and avoid disruptions from acquisition transactions that will harm our business; the recording of goodwill and other intangible assets as part of acquisitions that are subject to potential impairments in the future and any realization of such impairments; any actual or threatened disruptions to our relationships with our distributors, suppliers, customers and employees, including shortages in components for our products; the ability to timely and sufficiently integrate international operations into our ongoing business and compliance programs; reliance on sales to the U.S. government, including uncertainties in classification, pricing or potentially burdensome imposed terms for certain types of government contracts; availability of U.S. government funding for defense procurement and R&D programs; our ability to win U.S. and international government R&D and procurement programs; changes in the timing and/or amount of government spending, including due to continuing resolutions; adverse impacts of a U.S. government shutdown; our reliance on limited relationships to fund our development of HAPS UAS; our ability to execute contracts for anticipated sales, perform under such contracts and other existing contracts and obtain new contracts; risks related to our international business, including compliance with export control laws; the extensive and increasing regulatory requirements governing our contracts with the U.S. government and international customers; the consequences to our financial position, business and reputation that could result from failing to comply with such regulatory requirements; unexpected technical and marketing difficulties inherent in major research and product development efforts; the impact of potential security and cyber threats or the risk of unauthorized access to and resulting misuse of our, our customers’ and/or our suppliers’ information and systems; failure to remain a market innovator, to create new market opportunities or to expand into new markets; our ability to increase production capacity to support anticipated growth; unexpected changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; any increase in litigation activity or unfavorable results in legal proceedings, including pending class actions; our ability to respond and adapt to legal, regulatory and government budgetary changes, including those resulting from the impact of pandemics and similar outbreaks; our ability to comply with the covenants in our loan documents; our ability to attract and retain skilled employees; the impact of inflation; and general economic and business conditions in the United States and elsewhere in the world; and the failure to establish and maintain effective internal control over financial reporting. For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.

NON-GAAP MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. See in the financial tables below the calculation of these measures, the reasons why we believe these measures provide useful information to investors, and a reconciliation of these measures to the most directly comparable GAAP measures.

AeroVironment, Inc.

Consolidated Statements of Operations

(In thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

July 27,

 

July 29,

 

 

 

2024

 

2023

 

 

 

(Unaudited)

 

Revenue:

 

 

 

 

 

 

 

Product sales

 

$

159,504

 

 

$

119,471

 

 

Contract services

 

 

29,979

 

 

 

32,876

 

 

 

 

 

189,483

 

 

 

152,347

 

 

Cost of sales:

 

 

 

 

 

 

 

Product sales

 

 

85,519

 

 

 

61,608

 

 

Contract services

 

 

22,497

 

 

 

25,079

 

 

 

 

 

108,016

 

 

 

86,687

 

 

Gross margin:

 

 

 

 

 

 

 

Product sales

 

 

73,985

 

 

 

57,863

 

 

Contract services

 

 

7,482

 

 

 

7,797

 

 

 

 

 

81,467

 

 

 

65,660

 

 

Selling, general and administrative

 

 

33,795

 

 

 

23,827

 

 

Research and development

 

 

24,613

 

 

 

15,466

 

 

Income from operations

 

 

23,059

 

 

 

26,367

 

 

Other loss:

 

 

 

 

 

 

 

Interest expense, net

 

 

(239

)

 

 

(2,008

)

 

Other (expense) income, net

 

 

(234

)

 

 

(1,129

)

 

Income before income taxes

 

 

22,586

 

 

 

23,230

 

 

Provision for income taxes

 

 

1,485

 

 

 

1,314

 

 

Equity method investment loss, net of tax

 

 

65

 

 

 

(21

)

 

Net income

 

 

21,166

 

 

 

21,895

 

 

Net income per share

 

 

 

 

 

 

 

Basic

 

$

0.76

 

 

$

0.84

 

 

Diluted

 

$

0.75

 

 

$

0.84

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

 

 

27,959,692

 

 

 

26,088,277

 

 

Diluted

 

 

28,281,827

 

 

 

26,179,042

 

 

AeroVironment, Inc.

Consolidated Balance Sheets

(In thousands except share data)

 

 

 

 

 

 

 

 

 

 

July 27,

 

April 30,

 

 

 

2024

 

2024

 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

81,162

 

 

$

73,301

 

 

Accounts receivable, net of allowance for doubtful accounts of $58 at July 27, 2024 and $159 at April 30, 2024

 

 

35,487

 

 

 

70,305

 

 

Unbilled receivables and retentions

 

 

219,766

 

 

 

199,474

 

 

Inventories, net

 

 

143,835

 

 

 

150,168

 

 

Income taxes receivable

 

 

338

 

 

 

 

 

Prepaid expenses and other current assets

 

 

19,758

 

 

 

22,333

 

 

Total current assets

 

 

500,346

 

 

 

515,581

 

 

Long-term investments

 

 

21,887

 

 

 

20,960

 

 

Property and equipment, net

 

 

48,071

 

 

 

46,602

 

 

Operating lease right-of-use assets

 

 

28,283

 

 

 

30,033

 

 

Deferred income taxes

 

 

41,303

 

 

 

41,303

 

 

Intangibles, net

 

 

67,521

 

 

 

72,224

 

 

Goodwill

 

 

275,932

 

 

 

275,652

 

 

Other assets

 

 

15,826

 

 

 

13,505

 

 

Total assets

 

$

999,169

 

 

$

1,015,860

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

43,596

 

 

$

48,298

 

 

Wages and related accruals

 

 

20,413

 

 

 

44,312

 

 

Customer advances

 

 

10,993

 

 

 

11,192

 

 

Current portion of long-term debt

 

 

10,000

 

 

 

10,000

 

 

Current operating lease liabilities

 

 

9,428

 

 

 

9,841

 

 

Income taxes payable

 

 

5,597

 

 

 

4,162

 

 

Other current liabilities

 

 

17,331

 

 

 

17,074

 

 

Total current liabilities

 

 

117,358

 

 

 

144,879

 

 

Long-term debt, net of current portion

 

 

6,788

 

 

 

17,092

 

 

Non-current operating lease liabilities

 

 

21,086

 

 

 

22,745

 

 

Other non-current liabilities

 

 

2,123

 

 

 

2,132

 

 

Liability for uncertain tax positions

 

 

5,603

 

 

 

5,603

 

 

Deferred income taxes

 

 

673

 

 

 

664

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—10,000,000; none issued or outstanding at July 27, 2024 and April 30, 2024

 

 

 

 

 

 

 

Common stock, $0.0001 par value:

 

 

 

 

 

 

 

Authorized shares—100,000,000

 

 

 

 

 

 

 

Issued and outstanding shares—28,206,480 shares at July 27, 2024 and 28,134,438 shares at April 30, 2024

 

 

4

 

 

 

4

 

 

Additional paid-in capital

 

 

598,735

 

 

 

597,646

 

 

Accumulated other comprehensive loss

 

 

(5,054

)

 

 

(5,592

)

 

Retained earnings

 

 

251,853

 

 

 

230,687

 

 

Total stockholders’ equity

 

 

845,538

 

 

 

822,745

 

 

Total liabilities and stockholders’ equity

 

$

999,169

 

 

$

1,015,860

 

 

AeroVironment, Inc.

Consolidated Statements of Cash Flows

(In thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

July 27,

 

July 29,

 

2024

2023

 

Operating activities

 

 

 

 

 

 

Net income

 

$

21,166

 

 

$

21,895

 

 

Adjustments to reconcile net income to cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

8,852

 

 

 

6,951

 

 

(Gain) loss from equity method investments

 

 

(65

)

 

 

21

 

 

Amortization of debt issuance costs

 

 

266

 

 

 

214

 

 

Provision for doubtful accounts

 

 

(101

)

 

 

(15

)

 

Reserve for inventory excess and obsolescence

 

 

2,667

 

 

 

3,330

 

 

Other non-cash expense, net

 

 

616

 

 

 

173

 

 

Non-cash lease expense

 

 

2,430

 

 

 

2,184

 

 

Loss on foreign currency transactions

 

 

142

 

 

 

132

 

 

Unrealized loss on available-for-sale equity securities, net

 

 

321

 

 

 

1,013

 

 

Deferred income taxes

 

 

(1

)

 

 

(427

)

 

Stock-based compensation

 

 

4,536

 

 

 

3,204

 

 

Loss on disposal of property and equipment

 

 

143

 

 

 

116

 

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

Accounts receivable

 

 

34,993

 

 

 

8,207

 

 

Unbilled receivables and retentions

 

 

(20,274

)

 

 

(1,603

)

 

Inventories

 

 

3,867

 

 

 

(40,004

)

 

Income taxes receivable

 

 

(336

)

 

 

 

 

Prepaid expenses and other assets

 

 

(814

)

 

 

(4,401

)

 

Accounts payable

 

 

(4,976

)

 

 

(2,780

)

 

Other liabilities

 

 

(25,081

)

 

 

(15,272

)

 

Net cash provided by (used in) operating activities

 

 

28,351

 

 

 

(17,062

)

 

Investing activities

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(5,430

)

 

 

(3,632

)

 

Contributions in equity method investments

 

 

(1,183

)

 

 

 

 

Net cash used in investing activities

 

 

(6,613

)

 

 

(3,632

)

 

Financing activities

 

 

 

 

 

 

 

Principal payments of term loan

 

 

(10,500

)

 

 

(5,000

)

 

Payment of debt issuance costs

 

 

 

 

 

(9

)

 

Tax withholding payment related to net settlement of equity awards

 

 

(3,953

)

 

 

(1,298

)

 

Exercise of stock options

 

 

506

 

 

 

 

 

Other

 

 

(7

)

 

 

(8

)

 

Net cash used in financing activities

 

 

(13,954

)

 

 

(6,315

)

 

Effects of currency translation on cash and cash equivalents

 

 

77

 

 

 

21

 

 

Net increase (decrease) in cash and cash equivalents

 

 

7,861

 

 

 

(26,988

)

 

Cash and cash equivalents at beginning of period

 

 

73,301

 

 

 

132,859

 

 

Cash and cash equivalents at end of period

 

$

81,162

 

 

$

105,871

 

 

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

Cash paid (refunded), net during the period for:

 

 

 

 

 

 

 

Income taxes

 

$

(101

)

 

$

35

 

 

Interest

 

$

370

 

 

$

1,782

 

 

Non-cash activities

 

 

 

 

 

 

 

Change in foreign currency translation adjustments

 

$

538

 

 

$

(63

)

 

Acquisitions of property and equipment included in accounts payable

 

$

1,208

 

 

$

969

 

 

AeroVironment, Inc.

Reportable Segment Results (Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 27, 2024

 

 

UxS

 

LMS

 

MW

 

Total

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

112,301

 

$

47,180

 

$

23

 

$

159,504

Contract services

 

 

7,675

 

 

4,793

 

 

17,511

 

 

29,979

 

 

$

119,976

 

$

51,973

 

$

17,534

 

$

189,483

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment adjusted gross margin

 

$

67,252

 

$

13,272

 

$

4,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended July 29, 2023

 

 

UxS

 

LMS

 

MW

 

Total

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

93,231

 

$

25,325

 

$

915

 

$

119,471

Contract services

 

 

4,976

 

 

5,592

 

 

22,308

 

 

32,876

 

 

$

98,207

 

$

30,917

 

$

23,223

 

$

152,347

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment adjusted gross margin

 

$

50,426

 

$

12,323

 

$

5,308

 

 

 

AeroVironment, Inc.

Reconciliation of non-GAAP Earnings per Diluted Share (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

 

July 27, 2024

 

July 29, 2023

 

 

 

 

 

 

 

Earnings per diluted share

 

$

0.75

 

$

0.84

Acquisition-related expenses

 

 

 

 

0.02

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

0.13

 

 

0.10

Equity method and equity securities investments activity, net

 

 

0.01

 

 

0.04

Earnings per diluted share as adjusted (Non-GAAP)

 

$

0.89

 

$

1.00

Reconciliation of non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

(in millions)

 

July 27, 2024

 

July 29, 2023

Net income

 

$

21.2

 

$

21.9

Interest expense, net

 

 

0.2

 

 

2.0

Provision for income taxes

 

 

1.5

 

 

1.3

Depreciation and amortization

 

 

8.9

 

 

7.0

EBITDA (Non-GAAP)

 

 

31.8

 

 

32.2

Stock-based compensation

 

 

4.5

 

 

3.2

Equity method and equity securities investments activity, net

 

 

0.3

 

 

1.0

Amortization of cloud computing arrangement implementation

 

 

0.6

 

 

0.2

Acquisition-related expenses

 

 

 

 

0.7

Adjusted EBITDA (Non-GAAP)

 

$

37.2

 

$

37.3

Reconciliation of Forecast Earnings per Diluted Share (Unaudited)

 

 

 

 

 

 

 

 

 

 

Fiscal year ending

 

 

April 30, 2025

Forecast earnings per diluted share

 

$

2.61 - 2.92

Amortization of acquired intangible assets and other purchase accounting adjustments

 

 

0.51

Equity method and equity securities investments activity, net

 

 

0.06

Forecast earnings per diluted share as adjusted (Non-GAAP)

 

$

3.18 - 3.49

Reconciliation of 2025 Forecast and Fiscal Year 2024 Actual Non-GAAP adjusted EBITDA (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal year ending

 

Fiscal year ended

(in millions)

 

April 30, 2025

 

April 30, 2024

Net income

 

$

74 - 83

 

$

60

Interest expense, net

 

 

 

 

4

Provision for income taxes

 

 

7 - 8

 

 

2

Depreciation and amortization

 

 

39

 

 

36

EBITDA (Non-GAAP)

 

 

120 - 130

 

 

102

Stock-based compensation

 

 

20

 

 

17

Equity method and equity securities investments activity, net

 

 

1

 

 

6

Amortization of cloud computing arrangement implementation

 

 

2

 

 

2

Acquisition-related expenses

 

 

 

 

2

Adjusted EBITDA (Non-GAAP)

$

143 - 153

$

128

Statement Regarding Non-GAAP Measures

The non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing our results that, when reconciled to the corresponding GAAP measures, help our investors to understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers. In addition, management uses these non-GAAP measures to evaluate our operating and financial performance.

Non-GAAP Adjusted Gross Margin

Adjusted gross margin is defined as gross margin before intangible amortization and amortization of non-cash purchase accounting adjustments.

Non-GAAP Earnings per Diluted Share

We exclude the acquisition-related expenses, amortization of acquisition-related intangible assets, equity securities investments gains or losses, goodwill impairment and one-time non-operating items because we believe this facilitates more consistent comparisons of operating results over time between our newly acquired and existing businesses, and with our peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation and that intangible asset amortization will recur in future periods until such intangible assets have been fully amortized.

Adjusted EBITDA (Non-GAAP)

Adjusted EBITDA is defined as net income before interest income, interest expense, income tax expense (benefit) and depreciation and amortization including amortization of purchase accounting adjustments, adjusted for the impact of certain other non-cash items, including amortization of implementation of cloud computing arrangements, stock-based compensation, acquisition related expenses, equity method investment gains or losses, equity securities investments gains or losses, goodwill impairment and one-time non-operating gains or losses. We present Adjusted EBITDA, which is not a recognized financial measure under U.S. GAAP, because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe this facilitates more consistent comparisons of operating results over time between our newly acquired and existing businesses, and with our peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation, intangible asset amortization will recur in future periods until such intangible assets have been fully amortized and that interest and income tax expenses will recur in future periods. In addition, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

Contacts

Jonah Teeter-Balin
+1 (805) 520-8350 x4278
https://investor.avinc.com/contact-and-faq/contact-us