AeroVironment(AVAV) - 2020 Q4 - Annual Report

Financial Performance - Revenue for the year ended April 30, 2020, was $367.3 million, an increase from $314.3 million in 2019, representing a growth of 16.4%[254] - Net income attributable to AeroVironment, Inc. was $41.3 million, compared to $41.9 million in the previous year, reflecting a slight decrease of 1.4%[254] - Basic earnings per share from continuing operations was $1.74, down from $1.77 in 2019, a decrease of 1.7%[254] - Total revenue for the year ended April 30, 2020, was $367,296,000, an increase of 16.9% from $314,274,000 in 2019[369] - Net income from continuing operations was $41,335,000, slightly down from $41,893,000 in 2019, resulting in a net income per share of $1.73[369] - Total comprehensive income for the year was $41,396,000, compared to $47,442,000 in 2019, reflecting a decrease of 12.5%[370] - Net income attributable to AeroVironment, Inc. for the year ended April 30, 2020, was $41,074,000, down from $47,438,000 in 2019, a decline of about 13.5%[448] Assets and Liabilities - Total assets increased to $585.0 million from $508.8 million in 2019, marking a growth of 15.0%[254] - Cash and cash equivalents rose to $255.14 million in 2020, up from $172.71 million in 2019, indicating a significant increase of 47.8%[366] - Total current liabilities increased to $66.95 million in 2020 from $44.87 million in 2019, reflecting a rise of 49.2%[366] - Stockholders' equity grew to $509.90 million in 2020, compared to $462.57 million in 2019, marking an increase of 10.2%[366] - Current assets rose to $67,387,000 in 2020 from $31,746,000 in 2019, while current liabilities increased to $72,505,000 from $11,757,000[489] Revenue Recognition and Contracts - 42% of the total revenue was recognized from contracts satisfied over time, amounting to approximately $154.7 million[353] - The company adopted ASU No. 2014-09 for revenue recognition in fiscal year 2019, changing its accounting method for contracts with customers[361] - The Company recognizes revenue for performance obligations satisfied over time, which accounted for 42% of revenue during the fiscal year ended April 30, 2020[416] - As of April 30, 2020, the Company had approximately $208,063,000 in remaining performance obligations, expecting to recognize about 96% as revenue in fiscal 2021[419] Investments and Acquisitions - The company acquired 100% of Pulse for $21.88 million, with asset allocation including technology valued at $14.95 million, in-process R&D at $0.55 million, and goodwill at $6.34 million[359] - The company made significant investments, including $18,641 for business acquisitions and $14,498 in equity method investments[375] - The company recorded a total of $5,377,000 in inventory reserve charges over the fiscal years 2018 to 2020[481] Expenses and Costs - Research and development expenses increased to $46,477,000, up from $34,234,000 in 2019, indicating a focus on innovation[369] - Stock-based compensation for the fiscal year ending April 30, 2020, was reported at $6.227 million, compared to $7.100 million in the previous year, reflecting a decrease of approximately 12%[373] - The company incurred depreciation and amortization expenses of $9,888, an increase from $7,669 in the previous year[375] - Total lease costs recorded were $5,774,000 in 2020, including operating lease costs of $4,574,000[501] Shareholder Information - The company reported a weighted average of 23,806 basic shares outstanding, an increase from 23,663 in the previous year, reflecting a growth of 0.6%[254] - The weighted average common shares for basic earnings per share increased to 23,806,208 in 2020 from 23,663,410 in 2019, representing an increase of 0.6%[448] - The maximum number of shares that may be issued under the Restated 2006 Plan is 4,884,157, with a limit of 2,000,000 shares per participant per year[507] Taxation - The effective income tax rate for fiscal year 2020 was 11.1%, an increase from 9.2% in fiscal year 2019[525] - The Company recorded a total income tax expense of $5,848,000 for fiscal year 2020, compared to $4,641,000 for fiscal year 2019[527] - The Company had unrecognized tax benefits of approximately $14,347,000 as of April 30, 2020, which would impact the effective tax rate if recognized[531] Operational Insights - The company operates as a single reportable segment, focusing on unmanned aircraft systems for various industries[387] - The company has made significant estimates regarding inventory valuation and deferred tax assets, which could impact future financial results[388] - The Company performs ongoing credit evaluations of its commercial customers and maintains an allowance for potential losses[396] Miscellaneous - The company has not engaged in interest rate derivative financial instruments, indicating no significant interest rate exposure[342] - There have been no significant foreign exchange gains or losses, as a substantial portion of sales and expenses are in U.S. dollars[343] - The company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842), effective May 1, 2019, impacting financial reporting[349]