Innovative Solutions & Support, Inc. ("IS&S" or the "Company") ISSC today announced its financial results for the first quarter of fiscal 2021, ended December 31, 2020.
For the first quarter of fiscal 2021, the Company reported net sales of $4.9 million, up from net sales of $4.5 million in the first quarter a year ago. The Company reported operating income of $232,000 and net income of $240,000, or $0.01 per share, in the first quarter of fiscal 2021, compared to operating income of $232,000 buoyed by interest income to a net income of $328,000, or $0.02 per share, in the first quarter of fiscal 2020.
Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, "The results for the first quarter of fiscal 2021 reflect revenue growth, and positive cash flow compared to the year ago quarter. I am very pleased with the continued success we are experiencing growing our portfolio of production contracts for both retrofit and new production aircraft in spite of the Pandemic's impact on our anticipated exponential market demand. However, continued demand is providing a solid base of recurring revenue on which to build. We are also experiencing healthy demand for our Boeing 757 and 767 Flat Panel Upgrade system and Eclipse software upgrade. Innovative Solutions and Support remains focused on creating value for our shareholders through the continued development of the industry's leading price-for-performance technology in the Commercial Air Transport, Military and General Aviation markets."
"We've achieved these results while remaining committed to implementing precautions against COVID-19 that seek to ensure the safety of our employees, suppliers and customers. Reflecting our continued confidence, in December we declared a special, $0.50 per share dividend to provide tangible returns to our shareholders. Together with the $0.65 dividend declared in September, over the last six months of calendar 2020 we returned nearly $20 million of cash to our shareholders. Even after these distributions, we remain in excellent financial condition with significant liquidity and no debt."
At December 31, 2020, the Company had $5.6 million of cash on hand. Net cash flows from operating activities were $1.7 million in the quarter.
New orders in the first quarter of fiscal 2021 were $5.4 million, and backlog as of December 31, 2020, was $4.2 million. Backlog excludes potential future sole-source production orders from the Pilatus PC-24, the KC-46A and the Textron King Air 360 and King Air 260 ThrustSense® Autothrottle programs, all of which the Company expects to remain in production for a decade. The Company expects that these contracts will add to production sales already in backlog.
Conference Call
The Company will be hosting a conference call on Thursday, February 11, 2021, at 10:00 a.m. ET to discuss these results, its business outlook and product development. Please use the following dial in number to register your name and company affiliation for the conference call: 844-739-3798. No conference ID is required. The call will also be carried live on the Investor Relations page of the Company web site at www.innovative-ss.com.
About Innovative Solutions & Support, Inc.
Headquartered in Exton, Pa., Innovative Solutions & Support, Inc. (www.innovative-ss.com) is a systems integrator that designs and manufactures flight guidance and cockpit display systems for Original Equipment Manufacturers (OEMs) and retrofit applications. The company supplies integrated Flight Management Systems (FMS), Autothrottle Systems and advanced GPS receivers for precision low carbon footprint navigation.
Certain matters contained herein that are not descriptions of historical facts are "forward-looking" (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. Many of the factors that will determine the Company's future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
| Innovative Solutions and Support, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| December 31, | September 30, | |||||||
2020 |
2020 |
|||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ |
5,608,255 |
|
$ |
12,603,967 |
|
||
| Restricted cash |
|
- |
|
$ |
11,180,900 |
|
||
| Accounts receivable |
|
2,544,529 |
|
|
4,369,111 |
|
||
| Inventories |
|
4,180,743 |
|
|
4,291,335 |
|
||
| Prepaid expenses and other current assets |
|
850,861 |
|
|
675,109 |
|
||
| Total current assets |
|
13,184,388 |
|
|
33,120,422 |
|
||
| Property and equipment, net |
|
8,155,667 |
|
|
8,175,872 |
|
||
| Other assets |
|
208,093 |
|
|
249,543 |
|
||
| Total assets | $ |
21,548,148 |
|
$ |
41,545,837 |
|
||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
727,593 |
|
$ |
790,892 |
|
||
| Dividends payable |
|
- |
|
$ |
11,180,900 |
|
||
| Accrued expenses |
|
1,121,818 |
|
|
1,361,960 |
|
||
| Contract liability |
|
121,473 |
|
|
313,365 |
|
||
| Total current liabilities |
|
1,970,884 |
|
|
13,647,117 |
|
||
| Non-current deferred income taxes |
|
129,689 |
|
|
129,689 |
|
||
| Total liabilities |
|
2,100,573 |
|
|
13,776,806 |
|
||
| Commitments and contingencies | ||||||||
| Shareholders' equity | ||||||||
| Preferred stock, 10,000,000 shares authorized, $.001 par value, of which | ||||||||
| 200,000 shares are authorized as Class A Convertible stock. No shares | ||||||||
| issued and outstanding at December 31, 2019 and September 30, 2019 | $ |
- |
|
$ |
- |
|
||
| Common stock, $.001 par value: 75,000,000 shares authorized, 19,310,835 | ||||||||
| issued at December 31, 2020 and September 30, 2020 |
|
19,311 |
|
|
19,311 |
|
||
| Additional paid-in capital |
|
51,504,378 |
|
|
51,458,787 |
|
||
| (Accumulated deficit) |
|
(10,707,577 |
) |
|
(2,340,530 |
) |
||
| Treasury stock, at cost, 2,096,451 shares at December 31, 2020 and | ||||||||
| September 30, 2020 |
|
(21,368,537 |
) |
|
(21,368,537 |
) |
||
| Total shareholders' equity |
|
19,447,575 |
|
|
27,769,031 |
|
||
| Total liabilities and shareholders' equity | $ |
21,548,148 |
|
$ |
41,545,837 |
|
||
| Innovative Solutions and Support, Inc. | ||||||||
| Consolidated Statements of Operations | ||||||||
| (unaudited) | ||||||||
| Three months ended | ||||||||
| December 31, | ||||||||
2020 |
2019 |
|||||||
| Net sales | $ |
4,869,652 |
$ |
4,511,428 |
||||
| Cost of sales |
|
2,303,829 |
|
1,909,781 |
||||
| Gross profit |
|
2,565,823 |
|
2,601,647 |
||||
| Operating expenses: | ||||||||
| Research and development |
|
600,298 |
|
666,615 |
||||
| Selling, general and administrative |
|
1,733,154 |
|
1,703,274 |
||||
| Total operating expenses |
|
2,333,452 |
|
2,369,889 |
||||
| Operating income |
|
232,371 |
|
231,758 |
||||
| Interest income |
|
879 |
|
78,870 |
||||
| Other income |
|
16,392 |
|
17,280 |
||||
| Income before income taxes |
|
249,642 |
|
327,908 |
||||
| Income tax expense |
|
9,497 |
|
- |
||||
| Net income | $ |
240,145 |
$ |
327,908 |
||||
| Net income per common share: | ||||||||
| Basic | $ |
0.01 |
$ |
0.02 |
||||
| Diluted | $ |
0.01 |
$ |
0.02 |
||||
| Weighted average shares outstanding: | ||||||||
| Basic |
|
17,214,384 |
|
16,909,036 |
||||
| Diluted |
|
17,216,287 |
|
17,081,578 |
||||
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