Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Jun. 19, 2019 | Oct. 28, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | AeroVironment Inc | ||
Entity Central Index Key | 0001368622 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,893.7 | ||
Entity Common Stock, Shares Outstanding | 23,942,558 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS $ in Thousands | Apr. 30, 2019USD ($) |
Current assets: | |
Cash and cash equivalents | $ 172,708 |
Short-term investments | 150,487 |
Accounts receivable, net of allowance for doubtful accounts of $1,041 at April 30, 2019 and $1,080 at April 30, 2018 | 31,051 |
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $9,028 at April 30, 2019 and $3,145 at April 30, 2018) | 53,047 |
Inventories | 54,056 |
Prepaid expenses and other current assets | 7,418 |
Income taxes receivable | 821 |
Total current assets | 469,588 |
Long-term investments | 9,386 |
Property and equipment, net | 16,905 |
Deferred income taxes | 6,685 |
Other assets | 6,280 |
Total assets | 508,844 |
Current liabilities: | |
Accounts payable | 15,972 |
Wages and related accruals | 18,507 |
Customer advances | 2,962 |
Other current liabilities | 7,425 |
Total current liabilities | 44,866 |
Deferred rent | 1,173 |
Other non-current liabilities | 150 |
Deferred tax liability | 29 |
Liability for uncertain tax positions | 51 |
Commitments and contingencies | |
Stockholders' equity: | |
Authorized shares—10,000,000; none issued or outstanding at April 30, 2019 and April 30, 2018 | |
Issued and outstanding shares—23,946,293 shares at April 30, 2019 and 23,908,736 shares at April 30, 2018 | 2 |
Additional paid-in capital | 176,216 |
Accumulated other comprehensive loss | 2 |
Retained earnings | 286,351 |
Total AeroVironment stockholders' equity | 462,571 |
Noncontrolling interest | 4 |
Total equity | 462,575 |
Total liabilities and stockholders' equity | $ 508,844 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,041 | $ 1,080 |
Due from Related Parties | $ 9,028 | $ 3,145 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, Authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, Authorized shares | 100,000,000 | 100,000,000 |
Common stock, Issued shares | 23,946,293 | 23,908,736 |
Common stock, outstanding shares | 23,946,293 | 23,908,736 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 30, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2015 | |
Revenue: | ||||||||||||
Revenue | $ 87,930 | $ 75,322 | $ 72,979 | $ 78,043 | $ 113,629 | $ 54,633 | $ 65,801 | $ 34,361 | $ 314,274 | $ 268,424 | $ 233,105 | |
Cost of sales: | ||||||||||||
Cost of sales | 185,871 | 160,739 | 136,232 | |||||||||
Gross margin: | ||||||||||||
Total gross margin | $ 37,023 | $ 30,392 | $ 28,399 | 32,589 | $ 50,594 | $ 18,250 | $ 30,143 | $ 8,698 | 128,403 | 107,685 | 96,873 | |
Operating Expenses [Abstract] | ||||||||||||
Selling, general and administrative | 60,343 | 50,826 | 47,642 | |||||||||
Research and development | 34,234 | 26,433 | 28,465 | |||||||||
Income from continuing operations | 33,826 | 30,426 | 20,766 | |||||||||
Other income: | ||||||||||||
Interest income, net | 4,672 | 2,240 | 1,618 | |||||||||
Other income (expense), net | 11,980 | (49) | 172 | |||||||||
Income from continuing operations before income taxes | 32,617 | 50,478 | 32,617 | 22,556 | ||||||||
Provision for income taxes | 4,641 | 9,800 | 4,758 | |||||||||
Equity method investment loss, net of tax | $ (1,283) | (3,944) | (1,283) | (119) | ||||||||
Net income from continuing operations | 41,893 | 21,534 | 17,679 | |||||||||
Discontinued operations: | ||||||||||||
Gain on sale of business, net of tax expense of $2,444 for the year ended April 30, 2019 | 8,490 | |||||||||||
Loss from discontinued operations, net of tax | (2,964) | (3,887) | (4,601) | |||||||||
Net income (loss) from discontinued operations | 5,526 | (3,887) | (4,601) | |||||||||
Net income | 47,419 | 17,647 | 13,078 | $ 13,078 | ||||||||
Net loss attributable to noncontrolling interest | 19 | 216 | 22 | |||||||||
Net income attributable to AeroVironment | $ 47,438 | $ 17,863 | $ 13,100 | |||||||||
Net income (loss) per share attributable to AeroVironment—Basic | ||||||||||||
Basic, continuing (in dollars per share) | $ 0.26 | $ 0.35 | $ 0.30 | $ 0.86 | $ 0.80 | $ (0.02) | $ 0.33 | $ (0.19) | $ 1.77 | $ 0.93 | $ 0.77 | |
Basic, discontinuing (in dollars per share) | 0.23 | (0.17) | (0.20) | |||||||||
Net income per share attributable to AeroVironment - Basic (in dollars per share) | 2 | 0.76 | 0.57 | |||||||||
Net income (loss) per share attributable to AeroVironment—Diluted | ||||||||||||
Diluted, continuing (in dollars per share) | $ 0.26 | $ 0.35 | $ 0.29 | $ 0.85 | $ 0.79 | $ (0.02) | $ 0.32 | $ (0.19) | 1.74 | 0.91 | 0.76 | |
Diluted, discontinued (in dollars per share) | 0.23 | (0.16) | (0.20) | |||||||||
Net income per share attributable to AeroVironment - Diluted (in dollars per share) | $ 1.97 | $ 0.75 | $ 0.56 | |||||||||
Weighted average shares outstanding: | ||||||||||||
Basic (in shares) | 23,663,410 | 23,471,241 | 23,059,045 | |||||||||
Diluted (in shares) | 24,071,713 | 23,813,772 | 23,307,738 | |||||||||
Product sales | ||||||||||||
Revenue: | ||||||||||||
Revenue | $ 212,089 | $ 191,712 | $ 158,924 | |||||||||
Cost of sales: | ||||||||||||
Cost of sales | 113,489 | 109,393 | 89,039 | |||||||||
Gross margin: | ||||||||||||
Total gross margin | 98,600 | 82,319 | 69,885 | |||||||||
Contract services | ||||||||||||
Revenue: | ||||||||||||
Revenue | 102,185 | 76,712 | 74,181 | |||||||||
Cost of sales: | ||||||||||||
Cost of sales | 72,382 | 51,346 | 47,193 | |||||||||
Gross margin: | ||||||||||||
Total gross margin | $ 29,803 | $ 25,366 | $ 26,988 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
CONSOLIDATED STATEMENTS OF INCOME | ||
Revenue from Related Parties | $ 55,407 | $ 29,594 |
Tax expense | $ 2,444 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 47,419 | $ 17,647 | $ 13,078 | $ 13,078 |
Other comprehensive income: | ||||
Change in foreign currency translation adjustments | (34) | 36 | ||
Unrealized gain on investments, net of deferred tax expense of $51, $25, and $43 for the fiscal years ended 2019, 2018, and 2017, respectively | 57 | 70 | 74 | 74 |
Total comprehensive income | 47,442 | 17,753 | 13,152 | 13,152 |
Net loss attributable to noncontrolling interest | 19 | 216 | 22 | 22 |
Comprehensive income (loss) attributable to AeroVironment | $ 47,461 | $ 17,969 | $ 13,174 | $ 13,174 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Unrealized gain on investments, net of deferred tax expense | $ 51 | $ 25 | $ 43 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Parent | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total |
Increase (Decrease) in Stockholders' Equity | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 361,260 | ||||||
Balance at Apr. 30, 2016 | $ 361,260 | $ 2 | $ 154,274 | $ 207,185 | $ (201) | ||
Balance (in shares) at Apr. 30, 2016 | 23,359,925 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 13,078 | ||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 13,100 | 13,100 | |||||
Net loss attributable to noncontrolling interest | $ (22) | (22) | |||||
Unrealized gain on investments | 74 | 74 | 74 | ||||
Stock options exercised | 3,865 | 3,865 | 3,865 | ||||
Stock options exercised (in shares) | 204,130 | ||||||
Restricted stock awards (in shares) | 126,557 | ||||||
Restricted stock awards forfeited (in shares) | (60,017) | ||||||
Tax withholding payment related to net share settlement of equity awards | (5) | (5) | (5) | ||||
Tax withholding payment related to net share settlement of equity awards (in shares) | (176) | ||||||
Reclassification from share-based liability compensation to equity | 307 | 307 | 307 | ||||
Business acquisition | 261 | 261 | |||||
Stock-based compensation | 3,709 | 3,709 | 3,709 | ||||
Balance at Apr. 30, 2017 | 383,075 | $ 2 | 162,150 | 221,050 | (127) | 239 | |
Balance (in shares) at Apr. 30, 2017 | 23,630,419 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Adoption of ASU | ASU 2016-09 | 265 | 265 | 265 | ||||
Adoption of ASU | ASU 2014-09 | 500 | 500 | 500 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 383,314 | ||||||
Net income | 17,647 | ||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 17,863 | 17,863 | |||||
Net loss attributable to noncontrolling interest | (216) | (216) | |||||
Unrealized gain on investments | 70 | 70 | 70 | ||||
Foreign currency translation | 36 | 36 | 36 | ||||
Stock options exercised | 2,705 | 2,705 | 2,705 | ||||
Stock options exercised (in shares) | 153,211 | ||||||
Restricted stock awards (in shares) | 140,787 | ||||||
Restricted stock awards forfeited (in shares) | (6,834) | ||||||
Tax withholding payment related to net share settlement of equity awards | (397) | (397) | (397) | ||||
Tax withholding payment related to net share settlement of equity awards (in shares) | (8,847) | ||||||
Reclassification from share-based liability compensation to equity | 384 | 384 | 384 | ||||
Stock-based compensation | 5,297 | 5,297 | 5,297 | ||||
Balance at Apr. 30, 2018 | 409,033 | $ 2 | 170,139 | 238,913 | (21) | 23 | 409,033 |
Balance (in shares) at Apr. 30, 2018 | 23,908,736 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 409,056 | ||||||
Net income | 47,419 | ||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 47,438 | 47,438 | |||||
Net loss attributable to noncontrolling interest | (19) | (19) | |||||
Unrealized gain on investments | 57 | 57 | 57 | ||||
Foreign currency translation | (34) | (34) | (34) | ||||
Stock options exercised | 71 | 71 | 71 | ||||
Stock options exercised (in shares) | 12,725 | ||||||
Restricted stock awards (in shares) | 57,476 | ||||||
Restricted stock awards forfeited (in shares) | (18,023) | ||||||
Tax withholding payment related to net share settlement of equity awards | (1,094) | (1,094) | (1,094) | ||||
Tax withholding payment related to net share settlement of equity awards (in shares) | (14,621) | ||||||
Stock-based compensation | 7,100 | 7,100 | 7,100 | ||||
Balance at Apr. 30, 2019 | $ 462,571 | $ 2 | $ 176,216 | $ 286,351 | $ 2 | $ 4 | 462,571 |
Balance (in shares) at Apr. 30, 2019 | 23,946,293 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 462,575 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jul. 29, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2015 | |
Operating activities | |||||
Net income | $ 47,419 | $ 17,647 | $ 13,078 | $ 13,078 | |
Gain on sale of business, net of tax | (8,490) | ||||
Loss from discontinued operations | 2,964 | 3,887 | 4,601 | ||
Net income from continuing operations | 41,893 | 21,534 | 17,679 | ||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 7,669 | 5,982 | 5,054 | ||
Loss from equity method investments | $ 1,283 | 3,944 | 1,283 | 119 | |
Impairment of long-lived assets | 4,398 | 255 | 46 | ||
Provision for doubtful accounts | (39) | 977 | 48 | ||
Impairment of intangible assets and goodwill | 1,021 | ||||
Gains on foreign currency transactions | 38 | (87) | 284 | ||
Deferred income taxes | 4,792 | 2,853 | 309 | ||
Gain on business acquisition | (584) | ||||
Stock-based compensation | 6,985 | 4,956 | 3,392 | ||
Loss on disposition of property and equipment | 76 | 20 | 44 | ||
Amortization of held-to-maturity investments | (1,506) | 1,424 | 2,382 | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 25,821 | 11,070 | (19,720) | ||
Unbilled receivables and retentions | (36,175) | 2,253 | 615 | ||
Inventories | (16,631) | 1,192 | (16,816) | ||
Income tax receivable | (821) | ||||
Prepaid expenses and other assets | (2,401) | 139 | (1,484) | ||
Accounts payable | (7,054) | 5,736 | 545 | ||
Other liabilities | (4,043) | 9,224 | (166) | ||
Net cash provided by (used in) operating activities of continuing operations | 26,946 | 69,832 | (8,253) | ||
Investing activities | |||||
Acquisition of property and equipment | (8,896) | (9,563) | (9,017) | ||
Equity method investments | (7,598) | (3,267) | |||
Business acquisition, net of cash acquired | (430) | ||||
Proceeds from sale of business | 31,994 | ||||
Redemptions of held-to-maturity investments | 260,918 | 227,663 | 121,522 | ||
Purchases of held-to-maturity investments | (267,122) | (221,680) | (148,991) | ||
Redemptions of available-for-sale investments | 2,250 | 450 | 400 | ||
Net cash provided by (used in) investing activities from continuing operations | 11,546 | (6,397) | (36,516) | ||
Financing activities | |||||
Principal payments of capital lease obligations | (161) | (288) | (390) | ||
Tax withholding payment related to net settlement of equity awards | (1,094) | (397) | (5) | ||
Exercise of stock options | 71 | 2,705 | 3,865 | ||
Net cash (used in) provided by financing activities from continuing operations | (1,184) | 2,020 | 3,470 | ||
Discontinued operations | |||||
Operating activities of discontinued operations | (7,686) | (623) | (2,246) | ||
Investing activities of discontinued operations | (431) | (1,219) | (838) | ||
Net cash used in discontinued operations | (8,117) | (1,842) | (3,084) | ||
Net increase (decrease) in cash and cash equivalents | 29,191 | 63,613 | (44,383) | ||
Cash and cash equivalents at beginning of period | $ 79,904 | 143,517 | 79,904 | 124,287 | |
Cash and cash equivalents at ending of period | 172,708 | 143,517 | 79,904 | ||
Cash paid, net during the period for: | |||||
Income taxes | 6,780 | 1,813 | 1,804 | ||
Non-cash activities | |||||
Unrealized gain on investments, net of deferred tax expense of $51, $25 and $43, respectively | 57 | 70 | 74 | ||
Reclassification from share-based liability compensation to equity | 384 | 307 | |||
Change in foreign currency translation adjustments | (34) | 36 | |||
Acquisitions of property and equipment included in accounts payable | $ 810 | $ 379 | $ 724 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Consolidated Statements of Cash Flows | |||
Unrealized change in fair value on long-term investments recorded in other comprehensive income loss, net of tax expenses (benefit) | $ (51) | $ (25) | $ (43) |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2019 | |
Organization and Significant Accounting Policies | |
Organization and Significant Accounting Policies | 1. Organization and Significant Accounting Policies Organization AeroVironment, Inc., a Delaware corporation, is engaged in the design, development, production, support and operation of unmanned aircraft systems (“UAS”) for various industries and governmental agencies. Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of AeroVironment, Inc. and its wholly‑owned subsidiaries: AeroVironment Rhode Island, LLC, Skytower Inc., AeroVironment, Inc. (Afghanistan), as well as the Company’s Turkish joint venture, Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”) (collectively referred to herein as the “Company”). The Company increased its ownership in Altoy to a controlling interest on February 1, 2017. As a result of the increase in ownership, the consolidated financial statements include the balance sheet and results of operations of Altoy from February 1, 2017 forward. Prior to this date, the Company's investment in Altoy was accounted for under the equity method. Refer to Note 19 - Business Acquisitions for further details. All intercompany balances and transactions have been eliminated in consolidation. In July 2016, the Company dissolved Charger Bicycles, LLC, the results of which were not material to the consolidated financial statements. In October 2016, the Company dissolved Skytower, LLC and Regenerative Fuel Cell Systems, LLC, the results of which were not material to the consolidated financial statements. In February 2018, the Company dissolved AeroVironment GmbH, the results of which were not material to the consolidated financial statements. In February 2019, the Company dissolved AeroVironment International PTE. LTD., the results of which were not material to the consolidated financial statements. On June 29, 2018, the Company completed the sale of substantially all of the assets and related liabilities of its efficient energy systems business segment (“the EES Business”) to Webasto Charging Systems, Inc. (“Webasto”) pursuant to an Asset Purchase Agreement (the “Purchase Agreement”) between Webasto and the Company. The Company determined that the EES Business met the criteria for classification as an asset held for sale at April 30, 2018 and represented a strategic shift in the Company’s operations. Therefore, the assets and liabilities and the results of operations of the EES Business are reported as discontinued operations for all periods presented. Refer to Note 2—Discontinued Operations for further details. Investments in Companies Accounted for Using the Equity or Cost Method Investments in other non‑consolidated entities are accounted for using the equity method or cost basis depending upon the level of ownership and/or the Company’s ability to exercise significant influence over the operating and financial policies of the investee. When the equity method is used, investments are recorded at original cost and adjusted periodically to recognize the Company’s proportionate share of the investees’ net income or losses after the date of investment. When net losses from an investment accounted for under the equity method exceed its carrying amount, the investment balance is reduced to zero and additional losses are not provided for as the Company is not obligated to provide additional capital. The Company resumes accounting for the investment under the equity method if the entity subsequently reports net income and the Company’s share of that net income exceeds the share of net losses not recognized during the period the equity method was suspended. When an investment accounted for using the equity method issues its own shares, the subsequent reduction in the Company’s proportionate interest in the investee is reflected in equity as an adjustment to paid‑in‑capital. The Company evaluates its investments in companies accounted for by the equity or cost method for impairment when there is evidence or indicators that a decrease in value may be other than temporary. In December of 2017, the Company and Softbank Corp. (“Softbank”) formed a joint venture, HAPSMobile Inc. (“HAPSMobile”). As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile, the Company’s investment is accounted as an equity method investment. The Company has presented its proportion of HAPSMobile’s net loss in “Equity method investment loss, net of tax” in the consolidated statement of operations. The carrying value of the investment in HAPSMobile was recorded in “Other assets, long-term.” Refer to Note 8 – Equity Method Investments for further details. Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM, who is the Chief Executive Officer, makes operating decisions, assesses performance and makes resource allocation decisions, including the focus of research and development (“R&D”), on a consolidated basis for the Company’s continuing operations. Accordingly, the Company operates its business as a single reportable segment. Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of: inventory, available‑for‑sale securities, deferred tax assets and liabilities, useful lives of property, plant and equipment, medical and dental liabilities, warranty liabilities, long-term incentive plan liabilities and estimates of anticipated contract costs and transaction price utilized in the revenue recognition process. Actual results could differ from those estimates. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Equity method losses associated with the Company’s investment in Altoy for the fiscal year ended 2017 have been reclassified from other income (expense), net to equity method investment loss, net of tax on the consolidated statement of operations. Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. The Company’s cash equivalents are comprised of money market funds, certificates of deposit of major financial institutions, and U.S. Treasury bills. Investments The Company’s investments are accounted for as held‑to‑maturity and available‑for‑sale and reported at amortized cost and fair value, respectively. Unrealized gains and losses are excluded from earnings and reported as a separate component of stockholders’ equity, net of deferred income taxes for available-for-sale investments. Gains and losses realized on the disposition of investment securities are determined on the specific identification basis and credited or charged to income. Premium and discount on investments are amortized and accreted using the interest method and charged or credited to investment income. Management determines the appropriate classification of securities at the time of purchase and re‑evaluates such designation as of each balance sheet date. Investments are considered to be impaired when a decline in fair value is judged to be other‑than‑temporary. On a quarterly basis, the Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and its intent and ability to hold the investment to maturity. The Company also considers potential adverse conditions related to the financial health of the issuer based on rating agency actions. Once a decline in fair value is determined to be other‑than‑temporary, an impairment charge is recorded in earnings and a new cost basis in the investment is established. Fair Values of Financial Instruments Fair values of cash and cash equivalents, accounts receivable, unbilled receivables, retentions and accounts payable approximate cost due to the short period of time to maturity. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, municipal bonds, U.S. government securities, U.S. government-guaranteed agency securities, U.S. Government sponsored agency debt securities, highly rated commercial paper, highly rated corporate bonds, and accounts receivable. The Company currently invests the majority of its cash in municipal bonds, U.S. government securities, U.S. government-guaranteed agency securities, U.S. Government sponsored agency debt securities and highly rated corporate bonds. The Company’s revenue and accounts receivable are with a limited number of corporations and governmental entities. In the aggregate, 58%, 58% and 65% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2019, 2018 and 2017, respectively. These agencies accounted for 26% and 49% of the accounts receivable balances at April 30, 2019 and 2018, respectively. One such agency, the U.S. Army, accounted for 28%, 19% and 20% of the Company’s consolidated revenue for the years ended April 30, 2019, 2018 and 2017, respectively. The Company performs ongoing credit evaluations of its commercial customers and maintains an allowance for potential losses. Accounts Receivable, Unbilled Receivables and Retentions Accounts receivable represents primarily U.S. government and Foreign government, and to a lesser extent commercial receivables, net of allowances for doubtful accounts. Unbilled receivables represent costs in excess of billings on incomplete contracts and, where applicable, accrued profit related to government long‑term contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables are considered contract assets. Retentions represent amounts withheld by customers until contract completion. At April 30, 2019 and 2018, the retention balances were $1,102,000 and $1,411,000, respectively. The Company determines the allowance for doubtful accounts based on historical customer experience and other currently available evidence. When a specific account is deemed uncollectible, the account is written off against the allowance. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance; such losses have historically been within management’s expectations. An account is deemed past due based on contractual terms rather than on how recently payments have been received. Inventories Inventories are stated at the lower of cost (using the weighted average costing method) or net realizable value. Inventory write‑offs and write‑down provisions are provided to cover risks arising from slow‑moving items or technological obsolescence and for market prices lower than cost. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume. Based on this evaluation, provisions are made to write inventory down to its net realizable value. Long‑Lived Assets Property and equipment are carried at cost. Depreciation of property and equipment, including amortization of leasehold improvements, are provided using the straight‑line method over the following estimated useful lives: Machinery and equipment 2 - 7 years Computer equipment and software 2 - 5 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of useful life or term of lease The Company finances the purchase of certain IT equipment and perpetual software licenses with capital lease arrangements. The assets and liabilities under capital leases are recorded at the lesser of the present value of aggregate future minimum lease payments, including estimated bargain purchase options, or the fair value of the asset under lease. Assets under capital leases are depreciated using the straight-line method over the lesser of the estimated useful life of the asset or the term of the lease. Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and betterments to property and equipment are capitalized at cost. When the Company disposes of assets, the applicable costs and accumulated depreciation and amortization thereon are removed from the accounts and any resulting gain or loss is included in selling, general and administrative (“SG&A”) expense in the period incurred. The Company reviews the recoverability of its long‑lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. During the three months ended April 30, 2019, the Company recorded an impairment loss of $4,398,000 related to the long-lived assets of its commercial UAS Quantix solution. Refer to Note 7 – Property and equipment, net. Intangibles Assets — Acquired in Business Combinations The Company performs valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and allocates the purchase price of the acquired business to the respective net tangible and intangible assets. Acquired intangible assets include customer relationships and trade names. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Intangible assets are amortized over their estimated useful lives using the straight-line method which approximates the pattern in which the economic benefits are consumed. The Company monitors conditions related to these assets to determine whether events and circumstances warrant a revision to the remaining amortization period. The Company tests its intangible assets with finite lives for potential impairment whenever management concludes events or changes in circumstances indicate that the carrying amount may not be recoverable. The original estimate of an asset's useful life and the impact of an event or circumstance on either an asset's useful life or carrying value involve significant judgment. Product Warranty The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred. Product warranty reserves are recorded in other current liabilities. Accrued Sales Commissions As of April 30, 2019 and 2018, the Company accrued sales commissions in other current liabilities of $1,301,000 and $1,293,000, respectively. Self‑Insurance Liability The Company is self-insured for employee medical claims, subject to individual and aggregate stop loss policies. The Company estimates a liability for claims filed and incurred but not reported based upon recent claims experience and an analysis of the average period of time between the occurrence of a claim and the time it is reported to and paid by the Company. As of April 30, 2019 and 2018, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $965,000 and $1,003,000, respectively. Income Taxes Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. The provision for income taxes reflects the taxes to be paid for the period and the change during the period in the deferred income tax assets and liabilities. The Company records a valuation allowance to reduce the deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. For uncertain tax positions, the Company determines whether it is “more likely than not” that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. For those tax positions where it is “not more likely than not” that a tax benefit will be sustained, no tax benefit is recognized. Where applicable, associated interest and penalties are also recorded. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, repeal of the corporate alternative minimum tax, repeal of the deduction for domestic production activities, and limitation on the deductibility of certain executive compensation. In accordance with U.S. GAAP as determined by ASC 740, Income Taxes, the Company is required to record the effects of tax law changes in the period enacted. The Company remeasured its existing deferred tax assets and liabilities at the rate the Company expects to be in effect when those deferred taxes will be realized and recorded a one-time deferred tax expense of approximately $3,300,000 during the year ended April 30, 2018. The Company followed the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740 in situations where the Company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Act’s enactment date and ending when the Company has obtained, prepared, and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date. The measurement period under SAB 118 closed during the quarter ended January 31, 2019. AV has finalized its accounting for the impact of the Tax Act during the quarter ended January 31, 2019 and reached conclusions on the previous provisional estimates. AV has concluded that its foreign subsidiaries are in a cumulative earnings and profits deficit and therefore has confirmed that it will not have an income tax payable as a result of the one-time deemed repatriation tax. In relation to the one-time deferred tax remeasurement, AV has concluded that the impact recorded at the date of enactment is appropriate and no changes to the provision estimate of this item. Customer Advances and Amounts in Excess of Cost Incurred The Company receives advances, performance‑based payments and progress payments from customers that may exceed costs incurred on certain contracts, including contracts with agencies of the U.S. government resulting in contract liabilities. These advances are classified as advances from customers and will be offset against billings. Revenue Recognition The Company’s revenue is generated pursuant to written contractual arrangements to design, develop, manufacture and/or modify complex products, and to provide related engineering, technical and other services according to the specifications of the customers. These contracts may be firm fixed price (“FFP”), cost plus fixed fee (“CPFF”), or time and materials (“T&M”). The Company considers all such contracts to be within the scope of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Performance Obligations A performance obligation is a promise in a contract to transfer distinct goods or services to a customer, and it is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and revenue is recognized when each performance obligation under the terms of a contract is satisfied. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using its observable standalone selling price for products and services. When the standalone selling price is not directly observable, the Company uses its best estimate of the standalone selling price of each distinct good or service in the contract using the cost plus reasonable margin approach. This approach estimates the Company’s expected costs of satisfying the performance obligation and then adds an appropriate margin for that distinct good or service. Contract modifications are routine in the performance of the Company’s contracts. In most instances, contract modifications are for additional goods and/or services that are distinct and, therefore, accounted for as new contracts. The Company’s performance obligations are satisfied over time or at a point in time. Performance obligations are satisfied over time if the customer receives the benefits as the Company performs, if the customer controls the asset as it is being developed or produced, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment for the Company’s costs incurred to date plus a reasonable margin. The contractual right to payment is generally supported by termination for convenience clauses that allow the customer to unilaterally terminate the contract for convenience, pay the Company for costs incurred plus a reasonable profit, and take control of any work in process. Revenue for TMS product deliveries and Customer-Funded R&D contracts is recognized over time as costs are incurred. Contract services revenue is composed of revenue recognized on contracts for the provision of services, including repairs and maintenance, training, engineering design, development and prototyping activities, and technical support services. Contract services revenue is recognized over time as services are rendered. Typically, revenue is recognized over time using an input measure (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress. Training services are recognized over time using an output method based on days of training completed. For performance obligations satisfied over time, revenue is generally recognized using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which correspond with, and thereby best depict, transfer of control to the customer. Contract costs include labor, materials, subcontractors’ costs, other direct costs, and indirect costs applicable on government and commercial contracts. For performance obligations which are not satisfied over time per the aforementioned criteria above, revenue is recognized at the point in time in which each performance obligation is fully satisfied. The Company’s small UAS product sales revenue is composed of revenue recognized on contracts for the delivery of small UAS systems and spare parts. Revenue is recognized at the point in time when control transfers to the customer, which generally occurs when title and risk of loss have passed to the customer. On April 30, 2019, the Company had approximately $164,326,000 of remaining performance obligations under contracts with its customers, which the Company also refers to as backlog. The Company currently expects to recognize approximately 92% of the remaining performance obligations as revenue in fiscal 2020, an additional 7% in fiscal 2021, and the balance thereafter. The Company collects sales, value add, and other taxes concurrent with revenue producing activities, which are excluded from revenue when they are both imposed on a specific transaction and collected from a customer. Contract Estimates Accounting for contracts and programs primarily with a duration of less than six months involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the total expected costs to complete the contract and recognizes revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company’s performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors’ costs, other direct costs, and indirect costs applicable on government and commercial contracts. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. The nature of the Company’s contracts gives rise to several types of variable consideration, including penalty fees and incentive awards generally for late delivery and early delivery, respectively. The Company generally estimates such variable consideration as the most likely amount. In addition, the Company includes the estimated variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the related uncertainty is resolved. These estimates are based on historical award experience, anticipated performance and the Company’s best judgment at the time. Because of the certainty in estimating these amounts, they are included in the transaction price of the Company’s contracts and the associated remaining performance obligations. As a significant change in one or more of these estimates could affect the profitability of the Company’s contracts, the Company regularly reviews and updates its contract-related estimates. Changes in cumulative revenue estimates, due to changes in the estimated transaction price or cost estimates, are recorded using a cumulative catch-up adjustment in the period identified for contracts with performance obligations recognized over time. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the quarter it is identified. The impact of adjustments in contract estimates on the Company’s operating earnings can be reflected in either operating costs and expenses or revenue. The aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was not significant for the years ended April 30, 2019, 2018 or 2017. No adjustment on any one contract was material to the Company’s consolidated financial statements for the years ended April 30, 2019 or 2017. During the year ended April 30, 2018, the Company revised its estimates of the total expected costs to complete a TMS variant contract. The aggregate impact of these adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was a decrease of approximately $1,255,000. Revenue by Category The following tables present the Company’s revenue disaggregated by major product line, contract type, customer category and geographic location (in thousands): Year Ended April 30, April 30, April 30, Revenue by major product line/program 2019 2018 2017 Small UAS $ 183,157 $ 167,534 $ 145,760 TMS 65,087 63,406 81,182 HAPS 55,407 29,593 3 Other 10,623 7,891 6,160 Total revenue $ 314,274 $ 268,424 $ 233,105 Year Ended April 30, April 30, April 30, Revenue by contract type 2019 2018 2017 FFP $ 224,090 $ 212,976 $ 177,506 CPFF 89,485 55,203 54,052 T&M 699 245 1,547 Total revenue $ 314,274 $ 268,424 $ 233,105 Each of these contract types presents advantages and disadvantages. Typically, the Company assumes more risk with FFP contracts. However, these types of contracts generally offer additional profits when the Company completes the work for less than originally estimated. CPFF contracts generally subject the Company to lower risk. Accordingly, the associated base fees are usually lower than fees on FFP contracts. Under T&M contracts, the Company’s profit may vary if actual labor hour rates vary significantly from the negotiated rates. Year Ended April 30, April 30, April 30, Revenue by customer category 2019 2018 2017 U.S. government: $ 182,586 $ 156,996 $ 151,595 Non-U.S. government 131,688 111,428 81,510 Total revenue $ 314,274 $ 268,424 $ 233,105 Year Ended April 30, April 30, April 30, Revenue by geographic location 2019 2018 2017 Domestic $ 151,124 $ 142,158 $ 149,698 International 163,150 126,266 83,407 Total revenue $ 314,274 $ 268,424 $ 233,105 Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and customer advances and deposits on the consolidated balance sheet. In the Company’s services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, which is generally monthly, or upon the achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets recorded in “Unbilled receivables and retentions” on the consolidated balance sheet. However, the Company sometimes receives advances or deposits from its customers before revenue is recognized, resulting in contract liabilities recorded in “Customer advances” on the consolidated balance sheet. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. For the Company’s product revenue, the Company generally receives cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. Changes in the contract asset and liability balances during the years ended April 30, 2019 or 2018 were not materially impacted by any other factors. For the Company’s contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration. Revenue recognized for the years ended April 30, 2019, 2018, and 2017 that was included in contract liability balances at the beginning of each year were $1,587,000, $977,000 and $483,000, respectively. Stock‑Based Compensation Stock‑based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period of the respective award. No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. Long‑Term Incentive Awards For long‑term incentive awards outstanding as of April 30, 2019, the awards include time-based awards which vest equally over three years and performance-based awards which vest based on the achievement of a target payout established at the beginning of each performance period. The actual payout at the end of the performance period is calculated based upon the Company’s achievement of such targets. Payouts are made in restricted stock units which become immediately vested upon |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Apr. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 2. Discontinued Operations On June 29, 2018, the Company completed the sale of the EES Business to Webasto. In accordance with the terms of the Purchase Agreement, as amended by a Side Letter Agreement executed at the closing, the Company received cash consideration of $31,994,000 upon closing, which resulted in a gain of $11,420,000 which has been recorded in “Gain on sale of business, net of tax” in the consolidated statements of operations. During year ended April 30, 2019, the Company recorded a reduction to the gain resulting from a working capital adjustment of $486,000. In addition, the Company has disputed $1,085,000 of Webasto’s working capital adjustment claim, which is being submitted to an independent accounting firm for resolution pursuant to the terms of Purchase Agreement. No amounts have been recorded in the consolidated financial statements related to the additional working capital dispute as the Company has assessed the likelihood of a loss to be less than probable. The Company is entitled to receive additional cash consideration of $6,500,000 (the “Holdback”) upon tendering consents to assignment of two remaining customer contracts to Webasto. The Holdback was not recorded in the Company’s consolidated financial statements as the amount was not realized or realizable as of April 30, 2019. The Company’s satisfaction of the requirements for the payment of the Holdback is currently in dispute. On February 22, 2019, Webasto filed a lawsuit alleging several claims against the Company for breach of contract, indemnity, and bad faith, including allegations regarding inaccuracy of certain diligence disclosures, failure to provide certain consents to contract assignments and related to the previously announced recall. Webasto seeks to recover the costs of the recall and other damages totaling a minimum of $6,500,000 in addition to attorneys’ fees, costs, and punitive damages. The Company believes that the allegations are generally meritless and intends to mount a vigorous defense. During the three months ended October 27, 2018, Webasto filed a recall report with the National Highway Traffic Safety Administration that named certain of the Company’s EES products as subject to the recall. The Company is continuing to assess the facts giving rise to the recall. Under the terms of the Purchase Agreement, the Company may be responsible for certain costs of such recall of named products the Company manufactured, sold or serviced prior to the closing of the sale of the EES Business. Concurrent with the execution of the Purchase Agreement, the Company entered into a transition services agreement (the “TSA”) to provide certain general and administrative services to Webasto for a defined period. Income from performing services under the TSA was $2,758,000 and has been recorded in “Other income, net” in the consolidated statements of operations for the year ended April 30, 2019, respectively. The Company determined that the EES Business met the criteria for classification as an asset held for sale as of April 30, 2018 and represents a strategic shift in in the Company’s operations. Therefore, the assets and liabilities and the results of operations of the EES Business are reported as discontinued operations for all periods presented. The table below presents the statements of operations data for the EES Business (in thousands). Year Ended April 30, 2019 2018 2017 Net sales $ 4,256 $ 38,411 $ 36,201 Cost of sales 5,097 33,384 29,983 Gross margin (841) 5,027 6,218 Selling, general and administrative 1,515 7,825 8,895 Research and development 1,072 3,526 4,577 Other income, net 1 (27) 7 Loss from discontinued operations before income taxes (3,427) (6,351) (7,247) Benefit for income taxes (463) (2,464) (2,646) Net loss from discontinued operations $ (2,964) $ (3,887) $ (4,601) Gain on sale of business, net of tax expense of $2,444 for the year ended April 30, 2019 8,490 — — Net income (loss) from discontinued operations $ 5,526 $ (3,887) $ (4,601) The major classes of assets and liabilities included in discontinued operations related to the EES Business are presented in the table below. April 30, 2019 2018 Carrying amount of assets classified as discontinued operations Current assets: Accounts receivable, net of allowance for doubtful accounts of $139 at April 30, 2018 $ — $ 6,889 Inventories, net — 15,494 Prepaid expenses and other current assets — 185 Property and equipment, net — 3,100 Total current assets classified as discontinued operations — 25,668 Property and equipment, net — — Total non-current assets classified as discontinued operations — — Total assets classified as discontinued operations $ — $ 25,668 Carrying amount of liabilities classified as discontinued operations Current liabilities: Accounts payable $ — $ 5,121 Wages and related accruals — 1,946 Customer advances — 1,028 Other current liabilities — 1,199 Total current liabilities — 9,294 Total liabilities classified as discontinued operations $ — $ 9,294 |
Investments
Investments | 12 Months Ended |
Apr. 30, 2019 | |
Investments | |
Investments | 3. Investments Investments consist of the following: April 30, 2019 2018 (In thousands) Short-term investments: Held-to-maturity securities: Municipal securities $ 5,332 $ 35,344 U.S. government securities 63,205 31,620 Corporate bonds 81,950 46,685 Total held-to-maturity and short-term investments $ 150,487 $ 113,649 Long-term investments: Held-to-maturity securities: Municipal securities $ — $ 2,046 U.S. government securities 7,404 27,356 Corporate bonds 1,982 9,112 Total held-to-maturity investments 9,386 38,514 Available-for-sale securities: Auction rate securities — 2,142 Total available-for-sale investments — 2,142 Total long-term investments $ 9,386 $ 40,656 Held‑To‑Maturity Securities As of April 30, 2019 and 2018, the balance of held‑to‑maturity securities consisted of state and local government municipal securities, U.S. government securities, U.S. government agency securities, and corporate bonds. Interest earned from these investments is recorded in interest income. The amortized cost, gross unrealized losses, and estimated fair value of the held‑to‑maturity investments as of April 30, are as follows (in thousands): April 30, 2019 April 30, 2018 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Municipal securities $ 5,332 $ 2 $ (1) $ 5,333 $ 37,390 $ 9 $ (36) $ 37,363 U.S. government securities 70,609 78 (52) 70,635 58,976 — (367) 58,609 Corporate bonds 83,932 20 (5) 83,947 55,797 2 (71) 55,728 Total held-to-maturity investments $ 159,873 $ 100 $ (58) $ 159,915 $ 152,163 $ 11 $ (474) $ 151,700 The amortized cost and fair value of the Company’s held‑to‑maturity securities by contractual maturity at April 30, 2019, are as follows: Cost Fair Value Due within one year $ 150,487 $ 150,498 Due after one year through five years 9,386 9,417 Total $ 159,873 $ 159,915 Available‑For‑Sale Securities Auction Rate Securities As of April 30, 2018, the balance of available-for-sale auction rate securities consisted of two investment grade auction rate municipal bonds with maturities ranging from 1 to 16 years. These investments have characteristics similar to short term investments, because at predetermined intervals, generally ranging from 30 to 35 days, there is a new auction process at which the interest rates for these securities are reset to current interest rates. At the end of such period, the Company chooses whether to roll over its holdings or redeem the investments for cash. A market maker facilitates the redemption of the securities and the underlying issuers are not required to redeem the investment within 365 days. Interest earned from these investments is recorded in interest income. During the three months ended July 28, 2018, the remaining investment grade auction rate municipal bonds were redeemed at par value. The amortized cost, gross unrealized losses, and estimated fair value of the available‑for‑sale auction rate securities are as follows (in thousands): April 30, 2019 2018 Auction rate securities Amortized cost $ - $ 2,250 Gross unrealized losses - (108) Fair value $ - $ 2,142 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | 4. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows: · Level 1—Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. · Level 2—Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. · Level 3—Inputs to the valuation that are unobservable inputs for the asset or liability. The Company did not have any financial assets measured at fair value on a recurring basis at April 30, 2019 as the Company’s remaining auction rate securities were redeemed during the three months ended July 28, 2018 at par value. The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) (in thousands): Fair Value Measurements Using Significant Unobservable Inputs Description (Level 3) Balance at May 1, 2018 $ 2,142 Transfers to Level 3 — Total gains (realized or unrealized) Included in earnings — Included in other comprehensive income 108 Settlements (2,250) Balance at April 30, 2019 $ — The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at April 30, 2019 $ — The auction rate securities were valued using a discounted cash flow model. The analysis considered, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows, and the estimated date upon which the security is expected to have a successful auction. |
Inventories, net
Inventories, net | 12 Months Ended |
Apr. 30, 2019 | |
Inventories, net | |
Inventories, net | 5. Inventories, net Inventories consist of the following: April 30, 2019 2018 Raw materials $ 16,792 $ 12,020 Work in process 19,162 14,780 Finished goods 25,926 14,578 Inventories, gross 61,880 41,378 Reserve for inventory excess and obsolescence (7,824) (3,953) Inventories, net $ 54,056 $ 37,425 |
Intangibles
Intangibles | 12 Months Ended |
Apr. 30, 2019 | |
Intangibles | |
Intangibles | 6. Intangibles Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows: April 30, April 30, 2019 2018 (In thousands) Licenses $ 1,006 $ 818 Customer relationships 733 733 Trademarks and tradenames 28 28 Other 3 3 Intangibles, gross 1,770 1,582 Less accumulated amortization (1,311) (954) Intangibles, net $ 459 $ 628 The Company tests identifiable intangible assets and goodwill for impairment in the fourth quarter of each fiscal year unless there are interim indicators that suggest that it is more likely than not that either the identifiable intangible assets or goodwill may be impaired. Due to the political situation within Turkey and the increased uncertainty in the relations between the U.S. and Turkey, the Company significantly lowered its cash flow expectations for its Altoy operations. As a result of the decline in the Company’s cash flow forecast, the Company performed an interim assessment of impairment of Altoy’s long-lived assets, excluding goodwill during the three months ended October 28, 2017. Based on the analysis, the Company determined that the fair value of Altoy had declined below its carrying value, excluding goodwill. As a result, the Company performed an additional analysis to determine the amount of the impairment loss and recorded an impairment loss totaling $899,000 during the three months ended October 28, 2017, which is included in selling, general and administrative expense on the consolidated statements of operations. The fair value of the Altoy asset group was determined based on a discounted cash flow model reflective of the revised cash flow estimates. The weighted average amortization period at April 30, 2019 and 2018 was one year and three years, respectively. Amortization expense for the years ended April 30, 2019, 2018 and 2017 was $357,000, $296,000 and $139,000, respectively. The customer relationships, trademarks and tradenames, and other intangible assets were recognized in conjunction with the Company’s acquisition of a controlling interest in its Altoy joint venture on February 1, 2017. Refer to Note 19 - Business Combinations for further details. Estimated amortization expense for the next five years is as follows: Year ending April 30, (In thousands) 2020 $ 360 2021 98 2022 1 2023 — 2024 — $ 459 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Apr. 30, 2019 | |
Property and Equipment, net | |
Property and Equipment, net | 7. Property and Equipment, net Property and equipment, net consist of the following: April 30, 2019 2018 (In thousands) Leasehold improvements $ 12,324 $ 10,541 Machinery and equipment 40,432 40,377 Furniture and fixtures 2,145 2,094 Computer equipment and software 35,056 31,895 Construction in process 2,411 3,359 Property and equipment, gross 92,368 88,266 Less accumulated depreciation and amortization (75,463) (69,047) Property and equipment, net $ 16,905 $ 19,219 During the three months ended April 30, 2019, the Company determined that the continued less than forecasted sales of its Quantix commercial UAS solution, which launched during the fourth quarter of fiscal year 2018, was an indicator that the long-lived assets of this asset group may not be recoverable. As a result, the company performed an analysis and concluded that the projected undiscounted cash flows were less than the carrying value of the asset group (Step 1). As a result, the Company performed additional analysis to determine the amount of the impairment loss (Step 2) and recorded an impairment loss totaling $4,398,000 related to the long-lived assets of the commercial UAS Quantix solution, which is included in selling, general and administrative expense on the consolidated statements of operations. The fair value of the asset group was determined based on a discounted cash flow model reflective of the Company’s revised cash flow estimates. Depreciation expense for the years ended April 30, 2019, 2018 and 2017 was $7,311,000, $5,676,000 and $4,939,000, respectively. At April 30, 2019 and 2018, property and equipment includes computer equipment and software under capital leases with a cost basis of $1,836,000 and $1,836,000 and accumulated depreciation of $1,822,000 and $1,687,000, respectively. Depreciation of computer equipment and software under capital leases was $135,000 and $201,000 for the fiscal years ended April 30, 2019 and 2018 respectively. |
Investments in Companies Accoun
Investments in Companies Accounted for Using the Equity Method | 12 Months Ended |
Apr. 30, 2019 | |
Equity Method Investments | |
Investments in Companies Accounted for Using the Equity Method | 8. Investments in Companies Accounted for Using the Equity Method In December of 2017, the Company and Softbank formed a joint venture, HAPSMobile. HAPSMobile is a Japanese corporation that is 10% owned by the Company and 90% owned by SoftBank as of April 30, 2019 and is governed by a Joint Venture Agreement (the “JVA”). The Company purchased a 5% stake in HAPSMobile for 210,000,000 yen ($1,860,000) effective as of December 27, 2017; 150,000,000 yen ($1,407,000) on April 17, 2018; and 209,500,000 yen ($1,926,000) on January 29, 2019 to maintain its 5% ownership stake. On February 9, 2019, the Company elected to purchase 632,800,000 yen ($5,671,000) of additional shares of HAPSMobile to increase the Company’s ownership in the joint venture from 5% to 10%, and on May 10, 2019, the Company purchased 500,000,000 JPY ($4,569,000) of additional shares of HAPSMobile Inc. to maintain its 10% ownership stake which subsequently was diluted to approximately 5%. As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile, the Company’s investment is accounted as an equity method investment. At April 30, 2019 and 2018, the Company recorded its ownership percentage of the net loss of HAPSMobile, or $3,944,000 and $1,283,000, respectively, in “Equity method investment loss, net of tax” in the consolidated statements of income. At April 30, 2019 and 2018, the carrying value of the investment in HAPSMobile was $5,612,000 and $2,020,000, respectively, and was recorded in “Other assets, long-term.” In March of 2014, the Company purchased 49% of the outstanding common stock of Altoy, a Turkish corporation founded in February 2014. During the year ended April 30, 2017, the Company recorded 49% of the net loss of Altoy, or $119,000 in “Equity method investment loss, net of tax” in the consolidated statements of income. On February 1, 2017, the Company acquired an additional 36% interest in Altoy, increasing the Company’s total ownership interest to 85%, for total cash consideration of $625,000. As a result of the Company obtaining a controlling interest in Altoy, Altoy has been consolidated into the consolidated financial statements of the Company as of the date of the acquisition. Refer to Note 19 - Business Acquisitions. |
Warranty Reserves
Warranty Reserves | 12 Months Ended |
Apr. 30, 2019 | |
Warranty Reserves | |
Warranty Reserves | 9. Warranty Reserves Warranty reserve activity is summarized as follows: April 30, 2019 2018 (In thousands) Beginning balance $ 2,090 $ 1,947 Warranty expense 211 1,884 Changes in estimates related to pre-existing warranties 491 — Warranty costs settled (1,088) (1,741) Ending balance $ 1,704 $ 2,090 During the fiscal year ended April 30, 2019, the Company revised its estimates based on the results of additional engineering studies and recorded incremental warranty reserve charges totaling $491,000 related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods. At April 30, 2019, there were $251,000 remaining estimated warranty costs related to the repair of the impacted small UAS. As of April 30, 2019, a total of $240,000 of costs related to this warranty have been incurred. |
Employee Savings Plan
Employee Savings Plan | 12 Months Ended |
Apr. 30, 2019 | |
Employee Savings Plan | |
Employee Savings Plan | 10. Employee Savings Plan The Company has an employee 401(k) savings plan covering all eligible employees. The Company expensed approximately $3,961,000, $2,953,000 and $2,603,000 in contributions to the plan for the years ended April 30, 2019, 2018 and 2017, respectively. |
Severance Charges
Severance Charges | 12 Months Ended |
Apr. 30, 2019 | |
Severance Charges | |
Severance Charges | 11. Severance Charges During the fiscal year ended April 30, 2017, the Company recorded severance costs totaling $1,262,000. Of this total, approximately $850,000 was due to two officers who left the Company during the fiscal year ended April 30, 2017. The remaining severance costs were due to certain strategic headcount reductions consisting entirely of severance payments. Of the total, approximately $555,000 was recorded to cost of sales and $707,000 was recorded to SG&A. Of the total, approximately $127,000 was in accrued wages and related accruals at April 30, 2017. The Company did not have significant severance charges during the fiscal years ended April 30, 2019 or 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Apr. 30, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 12. Stock‑Based Compensation For the years ended April 30, 2019, 2018 and 2017, the Company recorded stock‑based compensation expense of approximately $6,985,000, $4,956,000 and $3,392,000, respectively. On January 14, 2007, the stockholders of the Company approved the 2006 Equity Incentive Plan, or 2006 Plan, effective January 21, 2007, for officers, directors, key employees and consultants. On September 29, 2011, the stockholders of the Company approved an amendment and restatement of the 2006 Plan, or Restated 2006 Plan. Under the Restated 2006 Plan, incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation right awards, performance share awards, performance stock unit awards, dividend equivalents awards, stock payment awards, deferred stock awards, restricted stock unit awards, other stock‑based awards, performance bonus awards or performance‑based awards may be granted at the discretion of the compensation committee, which consists of outside directors. A maximum of 4,884,157 shares of stock may be issued pursuant to awards under the Restated 2006 Plan. The maximum number of shares of common stock with respect to one or more awards that may be granted to any one participant during any twelve month period is 2,000,000. A maximum of $5,000,000 may be paid in cash to any one participant as a performance‑based award during any twelve month period. The exercise price for any incentive stock option shall not be less than 100% of the fair market value on the date of grant. Vesting of awards is established at the time of grant. The Company had an equity incentive plan, or 2002 Plan, for officers, directors and key employees. Under the 2002 Plan, incentive stock options or nonqualified stock options were granted, as determined by the administrator at the time of grant. Stock purchase rights were also granted under the 2002 Plan. Options under the 2002 Plan were granted at their fair market value (as determined by the board of directors). The options became exercisable at various times over a five-year period from the grant date. The 2002 Plan was terminated on the effective date of the 2006 Plan. Awards outstanding under the 2002 Plan remain outstanding and exercisable; no additional awards may be made under the 2002 Plan. The Company had a 1992 nonqualified stock option plan, or 1992 Plan, for certain officers and key employees. Options under the 1992 Plan were granted at their fair market value (as determined by the board of directors) at the date of grant and became exercisable at various times over a five-year period from the grant date. The 1992 Plan expired in August 2002. No options were granted during the fiscal years ended April 30, 2019, 2018 and 2017. The fair value of stock options granted previously was estimated at the grant date using the Black‑Scholes option pricing model. Assumptions included in the Black-Scholes option pricing model included the expected term of stock options, the expected volatility, the risk free interest rate, and the expected dividend yield. The expected term of stock options represents the weighted average period the Company expects the stock options to remain outstanding, based on the Company’s historical exercise and post‑vesting cancellation experience and the remaining contractual life of its outstanding options. The expected volatility is based on historical volatility for the Company’s stock. The risk free interest rate is based on the implied yield on a U.S. Treasury zero‑coupon bond with a remaining term that approximates the expected term of the option. The expected dividend yield of zero reflects that the Company has not paid any cash dividends since inception and does not anticipate paying cash dividends in the foreseeable future. Information related to the stock option plans at April 30, 2019, 2018 and 2017, and for the years then ended is as follows: Restated 2006 Plan 2002 Plan 1992 Plan Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at April 30, 2016 678,799 24.46 13,824 11.79 68,604 0.59 Options granted — — — — — — Options exercised (167,310) 22.32 (9,601) 11.79 (25,189) 0.59 Options canceled (64,865) 26.76 (4,223) 11.79 — — Outstanding at April 30, 2017 446,624 24.93 — — 43,415 0.59 Options granted — — — — — — Options exercised (107,598) 23.80 — — (25,113) 0.59 Options canceled — — — — — — Outstanding at April 30, 2018 339,026 25.29 — — 18,302 0.59 Options granted — — — — — — Options exercised (2,000) 32.19 — — (4,000) 0.59 Options canceled — — — — — — Outstanding at April 30, 2019 337,026 25.25 — — 14,302 0.59 Options exercisable at April 30, 2019 297,516 $ 24.94 — $ — 14,302 $ 0.59 The total intrinsic value of all options exercised during the years ended April 30, 2019, 2018 and 2017 was approximately $371,000, $2,407,000, and $1,747,000, respectively. The intrinsic value of all options outstanding at April 30, 2019 and 2018 was $15,569,000 and $10,890,000, respectively. The intrinsic value of all exercisable options at April 30, 2019 and 2018 was $13,950,000 and $8,587,000, respectively. A summary of the status of the Company’s non‑vested stock options as of April 30, 2019 and the year then ended is as follows: Weighted Average Grant Date Non-vested Options Options Fair Value Non-vested at April 30, 2018 83,014 $ 10.97 Granted — — Expired — — Canceled — — Vested (43,504) 11.03 Non-vested at April 30, 2019 39,510 $ 10.90 As of April 30, 2019, there was approximately $6,214,000 of total unrecognized compensation cost related to non‑vested share‑based compensation awards granted under the equity plans. That cost is expected to be recognized over an approximately two‑year period or a weighted average period of approximately 1.9 years. No options were granted during the fiscal years ended April 30, 2019, 2018 and 2017. The total fair value of shares vesting during the years ended April 30, 2019, 2018 and 2017 was $4,756,000, $3,328,000 and $2,942,000, respectively. Proceeds from all option exercises under all stock option plans for the years ended April 30, 2019, 2018 and 2017 were approximately $67,000, $2,576,000 and $3,863,000, respectively. The tax benefit realized from stock‑based compensation during the years ended April 30, 2019, 2018 and 2017 was approximately $0, $0, and $0, respectively. The following tabulation summarizes certain information concerning outstanding and exercisable options at April 30, 2019: Options Outstanding Weighted Average Options Exercisable Remaining Weighted Weighted As of Contractual Average As of Average April 30, Life In Exercise April 30, Exercise Range of Exercise Prices 2019 Years Price 2019 Price $ 0.59 - 19.16 68,302 3.36 $ 14.56 68,302 $ 14.56 - 26.24 58,500 3.86 20.54 58,500 20.54 - 80,000 6.15 26.70 48,000 26.70 - 50,000 4.56 27.27 50,000 27.27 - 31.27 94,526 3.68 29.85 87,016 29.73 $ - 31.27 351,328 4.34 $ 24.24 311,818 $ 23.82 The remaining weighted average contractual life of exercisable options at April 30, 2019 was 4.13 years. Information related to the Company’s restricted stock awards at April 30, 2019 and for the year then ended is as follows: Restated 2006 Plan Weighted Average Grant Date Shares Fair Value Unvested stock at April 30, 2018 341,911 $ 31.13 Stock granted 57,476 74.05 Stock vested (163,839) 29.03 Stock canceled (9,389) 36.19 Unvested stock at April 30, 2019 226,159 $ 43.35 |
Long-Term Incentive Awards
Long-Term Incentive Awards | 12 Months Ended |
Apr. 30, 2019 | |
Long-Term Incentive Awards. | |
Long-Term Incentive Awards | 13. Long‑Term Incentive Awards During the three months ended July 28, 2018, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2019 LTIP”). Awards under the Fiscal 2019 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2019, July 2020 and July 2021, and (ii) performance-based restricted stock units (“PRSUs”) which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2021. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully vested shares of common stock. During the fiscal year ended April 30, 2019, the Company recorded $572,000 of compensation expense related to the Fiscal 2019 LTIP. At April 30, 2019, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2019 LTIP is $3,033,000. During the three months ended July 29, 2017, the Company granted awards under the Restated 2006 Plan to key employees (“Fiscal 2018 LTIP”). Awards under the Fiscal 2018 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2018, July 2019 and July 2020, and (ii) performance-based restricted stock units (“PRSUs”) which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2020. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully vested shares of common stock. During the fiscal years ended April 30, 2019 and 2018, the Company recorded $588,000 and $269,000 of compensation expense related to the Fiscal 2018 LTIP, respectively. During the fiscal year ended April 30, 2017, the Company did not record compensation expense related to the Fiscal 2018 LTIP. At April 30, 2019, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2018 LTIP is $2,275,000. During the three months ended July 29, 2017, the Company also granted awards under the Restated 2006 Plan to key employees (“Fiscal 2017 LTIP”). Awards under the Fiscal 2017 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2017, July 2018 and July 2019, and (ii) PRSUs which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2019. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of common stock. During the fiscal years ended April 30, 2019 and 2018, the Company recorded $301,000 and $159,000 of compensation expense related to the Fiscal 2017 LTIP, respectively. During the fiscal year ended April 30, 2017, the Company did not record compensation expense related to the Fiscal 2017 LTIP. During the first quarter of fiscal 2019, the Company expects to issue a total of 14,814 fully-vested shares of common stock to settle the Fiscal 2017 LTIP. At April 30, 2019 and 2018, the Company recorded cumulative stock-based compensation expense from these long-term incentive awards of $1,889,000 and $428,000, respectively. At each reporting period, the Company reassesses the probability of achieving the performance targets. The estimation of whether the performance targets will be achieved requires judgment, and, to the extent actual results or updated estimates differ from the Company’s current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period estimates are revised. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2019 | |
Income Taxes | |
Income Taxes | 14. Income Taxes The components of income before income taxes are as follows (in thousands): Year Ended April 30, 2019 2018 2017 Domestic $ 50,644 $ 32,651 $ 22,642 Foreign (166) (34) (86) Income from continuing operations before income taxes 50,478 32,617 22,556 Equity method investment loss (3,944) (1,283) (119) Total income from continuing operations before income taxes $ 46,534 $ 31,334 $ 22,437 The Company expects any foreign earnings to be reinvested in such foreign jurisdictions and, therefore, no deferred tax liabilities for U.S. income taxes on undistributed earnings are recorded. The foreign subsidiaries do not have any undistributed earnings. A reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense (benefit) is as follows: Year Ended April 30, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 30.4 % 34.0 % State and local income taxes, net of federal benefit (2.2) (2.2) (1.7) R&D and other tax credits (8.1) (7.0) (10.8) Valuation allowance 3.7 4.9 3.8 Foreign rate differential — 0.1 — Return to provision adjustments (0.3) (0.1) (0.3) Permanent items 0.8 (2.7) (2.3) Foreign derived intangible income (3.7) — — Excess benefit of stock options (3.1) (4.4) (1.0) Tax Act — 10.4 — Other 1.1 0.6 (0.6) Effective income tax rate 9.2 % 30.0 % 21.1 % The components of the provision (benefit) for income taxes are as follows (in thousands): Year Ended April 30, 2019 2018 2017 Current: Federal $ 1,953 $ 6,010 $ 4,336 State 228 900 243 Foreign — — — 2,181 6,910 4,579 Deferred: Federal 1,945 3,272 (66) State 551 (330) 280 Foreign (36) (52) (35) 2,460 2,890 179 Total income tax expense (benefit) $ 4,641 $ 9,800 $ 4,758 Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands): April 30, 2019 2018 Deferred income tax assets: Accrued expenses $ 5,206 $ 5,771 Allowances, reserves, and other 2,729 2,100 Unrealized loss on securities — 25 Net operating loss and credit carry-forwards 13,208 12,361 Intangibles basis 125 94 Total deferred income tax assets 21,268 20,351 Deferred income tax liabilities: Fixed asset basis (425) (682) Revenue recognition (2,909) 326 Total deferred income tax liabilities (3,334) (356) Valuation allowance (11,278) (8,568) Net deferred tax assets $ 6,656 $ 11,427 At April 30, 2019 and 2018 the Company recorded a valuation allowance of $11,278,000 and $8,568,000, respectively, against state R&D credits as the Company is currently generating more tax credits than it will utilize in future years and against the outside basis difference in an equity method investee. The valuation allowance increased by $2,710,000 and $3,152,000 for April 30, 2019 and April 30, 2018, respectively. At April 30, 2019 the Company had state credit carryforwards of $23,832,000 that do not expire and federal tax credit carryforwards of $4,727,000 that expire in 2039. At April 30, 2019, the Company had a state and foreign net operating loss carryforward of approximately $10,000 and $205,000, respectively. The state net operating loss carryforwards carry forward indefinitely. $73,000 of the foreign loss carryforwards expire in fiscal 2020. At April 30, 2019 and 2018, the Company had approximately $12,593,000 and $11,170,000, respectively, of unrecognized tax benefits all of which would impact the Company’s effective tax rate if recognized. The Company estimates that $224,000 of its unrecognized tax benefits will decrease in the next twelve months due to statute of limitation expiration. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended April 30, 2019 and 2018 (in thousands): April 30, 2019 2018 Balance as of May 1 $ 11,170 $ 9,856 Increases related to prior year tax positions 216 228 Decreases related to prior year tax positions — — Increases related to current year tax positions 1,756 1,347 Decreases related to lapsing of statute of limitations (549) (261) Balance as of April 30 $ 12,593 $ 11,170 The Company records interest and penalties on uncertain tax positions to income tax expense. As of April 30, 2019 and 2018, the Company had accrued approximately $18,000 and $16,000, respectively, of interest and penalties related to uncertain tax positions. The Company is currently under audit by various state jurisdictions but does not anticipate any material adjustments from these examinations. The tax years 2016 to 2017 remain open to examination by the IRS for federal income taxes. The tax years 2011 to 2017 remain open for major state taxing jurisdictions. During the fiscal year ended April 30, 2019, the Company recorded a reversal of a $549,000 reserve, including the related interest, for uncertain tax positions due to the lapse of prior year statue. On December 22, 2017, the Tax Act was signed into law, which resulted in significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, repeal of the corporate alternative minimum tax, repeal of the deduction for domestic production activities, a deduction for certain Foreign Derived Intangible Income (“FDII”), and limitation on the deductibility of certain executive compensation. In accordance with ASC 740, Income Taxes, the Company is required to record the effects of tax law changes in the period enacted. As the Company has an April 30 fiscal year end, its U.S. federal corporate income tax rate was blended in fiscal 2018, resulting in a statutory federal rate of approximately 30.4% (8 months at 35% and 4 months at 21%), and 21% for subsequent fiscal years. The Company remeasured its existing deferred tax assets and liabilities at the rate the Company expected to be in effect when those deferred taxes will be realized and recorded a one-time deferred tax expense of approximately $3,300,000 during the fiscal year ended April 30, 2018. The Company followed the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provided additional clarification regarding the application of ASC Topic 740 in situations where the Company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Act’s enactment date and ending when the Company has obtained, prepared, and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date. The measurement period under SAB 118 closed during the year ended April 30, 2019. The Company has finalized its accounting for the impact of the Tax Act during and reached the following conclusions on the previous provisional estimates. The Company has concluded it will be eligible to claim the FDII deduction and has reflected a rate benefit in the provision for income taxes. The Company expects the IRS will be issuing additional guidance that could ultimately impact the size of the benefit. In addition, the Company has concluded that its foreign subsidiaries are in a cumulative earnings and profits deficit and, therefore, has confirmed that it will not have an income tax payable as a result of the one-time deemed repatriation tax. |
AOCI (Loss) and Reclassificatio
AOCI (Loss) and Reclassifications Adjustments | 12 Months Ended |
Apr. 30, 2019 | |
AOCI (Loss) and Reclassifications Adjustments | |
Accumulated Other Comprehensive Loss and Reclassifications | 15. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows (in thousands): Total Accumulated Other Available-for-Sale Foreign Currency Comprehensive Securities Translation Adjustments Loss Total accumulated other comprehensive loss balance as of April 30, 2018 $ (57) $ 36 $ (21) Changes in foreign currency translation adjustments, net of $0 taxes — (34) (34) Unrealized gains, net of $51 of taxes 57 — 57 Total accumulated other comprehensive loss balance as of April 30, 2019 $ — $ 2 $ 2 |
Changes in Accounting Estimates
Changes in Accounting Estimates | 12 Months Ended |
Apr. 30, 2019 | |
Changes in Accounting Estimates | |
Changes in Accounting Estimates | 16. Changes in Accounting Estimates During the years ended April 30, 2019, 2018 and 2017, the Company revised its estimates at completion of various fixed-price contracts recognized using the over time method, which resulted in cumulative catch up adjustments during the year in which the change in estimate occurred. The change in estimate was a result of the Company changing the total costs required to complete the contracts due to having more accurate cost information as work progressed in subsequent periods on the various contracts. The changes in estimates resulted in cumulative catch-up adjustments to revenue for the years ended April 30, 2019 and 2017 were not material. During the year ended April 30, 2018, the Company revised its estimates of the total expected costs to complete a TMS variant contract. The aggregate impact of these adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was a decrease of approximately $1,255,000. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2019 | |
Related Party Transactions | |
Related Party Transactions | 17. Related Party Transactions Pursuant to a consulting agreement, the Company paid a board member approximately $55,000, $48,000 and $80,000 for fiscal years ended April 30, 2019, 2018 and 2017, respectively, for consulting services independent of his board service. Concurrent with the formation of HAPSMobile, the Company executed a Design and Development Agreement (the “DDA”) with HAPSMobile. Under the DDA and related efforts, the Company will use its best efforts, up to a maximum value of $133,360,000, to design and build prototype solar powered high altitude aircraft and ground control stations for HAPSMobile and conduct low altitude and high altitude flight tests of the prototype aircraft. The Company recorded revenue under the DDA and preliminary design agreements between the Company and SoftBank of $55,407,000 and $29,594,000 for the fiscal years ended April 30, 2019 and 2018, respectively. At April 30, 2019 and 2018, the Company had unbilled related party receivables from HAPSMobile of $9,028,000 and $3,145,000 recorded in “Unbilled receivables and retentions” on the consolidated balance sheet, respectively. As of April 30, 2019, the Company owned a 10% stake in accordance with the JVA which was diluted to approximately 5% during the first fiscal quarter of fiscal year 2020. Refer to Note 8 – Equity Method Investments for further details. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 18. Commitments and Contingencies Commitments The Company’s operations are conducted in leased facilities. The Company finances the purchase of certain IT equipment and perpetual software licenses under capital lease arrangements. As of April 30, 2019, the Company has no future commitments related to capital lease arrangements as final payments were made during fiscal year 2019. Following is a summary of non‑cancelable operating commitments: April 30, 2019 (In thousands) Operating leases 2020 $ 5,298 2021 3,527 2022 2,723 2023 1,554 2024 953 Thereafter — $ 14,055 Rental expense under operating leases was approximately $4,609,000, $4,011,000 and $3,849,000 for the years ended April 30, 2019, 2018 and 2017, respectively. Contingencies The Company is subject to legal proceedings and claims which arise out of the ordinary course of its business. Although adverse decisions or settlements may occur, the Company, in consultation with legal counsel, believes that the final disposition of such matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company. At April 30, 2019 and 2018, the Company had outstanding letters of credit totaling $7,079,000 and $6,389,000, respectively. Contract Cost Audits Payments to the Company on government cost reimbursable contracts are based on provisional, or estimated indirect rates, which are subject to an annual audit by the Defense Contract Audit Agency (“DCAA”). The cost audits result in the negotiation and determination of the final indirect cost rates that the Company may use for the period(s) audited. The final rates, if different from the provisional rates, may create an additional receivable or liability for the Company. For example, during the course of its audits, the DCAA may question the Company’s incurred costs, and if the DCAA believes the Company has accounted for such costs in a manner inconsistent with the requirements under Federal Acquisition Regulations, the DCAA auditor may recommend to the Company’s administrative contracting officer to disallow such costs. Historically, the Company has not experienced material disallowed costs as a result of government audits. However, the Company can provide no assurance that the DCAA or other government audits will not result in material disallowances for incurred costs in the future. The Company’s revenue recognition policy calls for revenue recognized on all cost reimbursable government contracts to be recorded at actual rates unless collectability is not reasonably assured. During the fiscal year ended April 30, 2017, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2011 through 2014 without payment of any consideration. During the fiscal year ended April 30, 2019, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2016 and 2017 without payment of any consideration. At April 30, 2019 and 2018, the Company had $93,000 and $77,000 reserved for open incurred cost claim audits, respectively. The Company is also currently undergoing an escheat examination by the state of Delaware. The amount of any potential loss is currently not estimable, and therefore, no reserve has been recorded. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | 19. Business Acquisitions On February 1, 2017, the Company completed the acquisition of 36% of the common shares of Altoy for cash consideration of $625,000, which increased its interest from 49% to 85% and provided the Company with control over Altoy. As a result, Altoy became a consolidated subsidiary of the Company on the date of the acquisition. Altoy aims to market and distribute small UAS in Turkey. The Company previously accounted for its 49% interest in Altoy as an equity method investment. As a result of the acquisition, the Company is expected to expand the sales of its small UAS and related services in Turkey. The following table summarizes the consideration transferred to acquire Altoy and the amounts of identified assets acquired and liabilities assumed at the acquisition date, as well as the fair value of the noncontrolling interest in Altoy at the acquisition date (in thousands): Customer relationships $ 1,600 Goodwill 122 Trademark and trade names 60 Deferred tax liability (332) Other assets and liabilities assumed 286 Total net identified assets acquired $ 1,736 Fair value of consideration transferred: Cash $ 625 Fair value of the Company's investment in Altoy prior to the acquisition 851 Fair value of the noncontrolling interest in Altoy 260 Total $ 1,736 As a result of the Company obtaining control over Altoy, the Company’s previously held 49% interest was remeasured to fair value, resulting in a gain of $584,000 which has been recognized in “other income (loss), net” on the consolidated statement of income. The fair value of the noncontrolling interest of $260,000 and the fair value of the previously held equity interest of $851,000 in Altoy, immediately prior to the acquisition, were estimated by applying an income approach. These fair value measurements of the noncontrolling interest and the previously held equity interest are based on significant inputs not observable in the market, and thus represent Level 3 measurements. The goodwill is attributable to the workforce of Altoy and expected future customers in the Turkey market. Goodwill is not tax deductible for tax purposes. All of the goodwill was assigned to the Company’s UAS segment. The Company tests identifiable intangible assets and goodwill for impairment in the fourth quarter of each fiscal year unless there are interim indicators that suggest that it is more likely than not that either the identifiable intangible assets or goodwill may be impaired. Due to the current political situation within Turkey and the increased uncertainty in the relations between the U.S. and Turkey, the Company significantly lowered its cash flow expectations for its Altoy operations. As a result of the decline in the Company’s cash flow forecast, the Company performed an interim assessment of impairment of Altoy’s long-lived assets, excluding goodwill during the three months ended October 28, 2017. Based on the analysis, the Company determined that the fair value of Altoy had declined below its carrying value, excluding goodwill. As a result, the Company performed additional analysis to determine the amount of the impairment loss and recorded an impairment loss totaling $899,000 during the three months ended October 28, 2017, which is included in selling, general and administrative expense on the consolidated statements of operations. The fair value of the Altoy asset group was determined based on a discounted cash flow model reflective of the revised cash flow estimates. Supplemental Pro Forma Information (unaudited) Altoy contributed revenues of $0 and a net loss of $122,000 to the Company for the period from February 1, 2017 to April 30, 2017. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on May 1, 2015 (in thousands) : Fiscal year ended April 30, 2017 2016 Revenue $ 229,287 $ 233,941 Net income from continuing operations $ 15,808 $ 15,595 Net income attributable to AeroVironment $ 15,888 $ 15,666 The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. These pro forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Altoy to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from May 1, 2015, with the consequential tax effects. The Company incurred approximately $74,000 of acquisition-related costs. These expenses are included in selling, general and administrative expense on the Company’s consolidated income statement for the fiscal year ended April 30, 2017. The unaudited pro forma supplemental information is based on estimates and assumptions which the Company believes are reasonable and are not necessarily indicative of the results that have been realized had the acquisitions been consolidated in the tables above as of May 1, 2015. |
Geographic Information
Geographic Information | 12 Months Ended |
Apr. 30, 2019 | |
Geographic Information | |
Geographic Information | 20. Geographic Information Sales to non‑U.S. customers accounted for 52%, 47% and 36% of revenue for each of the fiscal years ended April 30, 2019, 2018 and 2017, respectively. |
Impact of Adoption of New Accou
Impact of Adoption of New Accounting Standards | 12 Months Ended |
Apr. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Abstract] | |
Impact of Adoption of New Accounting Standards | 21. Impact of Adoption of New Accounting Standards During the year ended April 30, 2019, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The impact to the Company’s balance sheet as a result of adopting the standard was as follows (in thousands). Effect of the April 30, 2018 Adoption of April 30, 2018 As Reported ASC Topic 606 As Adjusted Assets Current assets: Cash and cash equivalents $ 143,517 $ — $ 143,517 Short-term investments 113,649 — 113,649 Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018 56,813 — 56,813 Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018) 13,076 3,796 16,872 Inventories, net 38,640 (1,215) 37,425 Prepaid expenses and other current assets 5,103 — 5,103 Current assets of discontinued operations 28,349 (2,681) 25,668 Total current assets 399,147 (100) 399,047 Long-term investments 40,656 — 40,656 Property and equipment, net 19,219 — 19,219 Deferred income taxes 11,168 326 11,494 Other assets 2,721 281 3,002 Total assets $ 472,911 $ 507 $ 473,418 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 21,340 $ — $ 21,340 Wages and related accruals 16,851 — 16,851 Income taxes payable 4,085 — 4,085 Customer advances 2,145 1,419 3,564 Other current liabilities 6,892 62 6,954 Current liabilities of discontinued operations 9,184 110 9,294 Total current liabilities 60,497 1,591 62,088 Deferred rent 1,536 — 1,536 Other non-current liabilities 622 — 622 Deferred tax liability 67 — 67 Liability for uncertain tax positions 49 — 49 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.0001 par value: Authorized shares—10,000,000; none issued or outstanding at April 30, 2018 — — — Common stock, $0.0001 par value: Authorized shares—100,000,000 Issued and outstanding shares—23,908,736 at April 30, 2018 2 — 2 Additional paid-in capital 170,139 — 170,139 Accumulated other comprehensive loss (21) — (21) Retained earnings 239,997 (1,084) 238,913 Total AeroVironment stockholders’ equity 410,117 (1,084) 409,033 Noncontrolling interest 23 — 23 Total equity 410,140 (1,084) 409,056 Total liabilities and stockholders’ equity $ 472,911 $ 507 $ 473,418 The tables below presents the impact of adoption on the Company’s statement of operations for the fiscal years ended April 30, 2018 and 2017 (in thousands except share and per share data). Year Ended April 30, 2018 As Reported ASC Topic 606 Impact As Adjusted Revenue: Product sales $ 195,330 $ (3,618) $ 191,712 Contract services (inclusive of related party revenue of $29,594 for the year ended April 30, 2018) 75,722 990 76,712 271,052 (2,628) 268,424 Cost of sales: Product sales 111,990 (2,597) 109,393 Contract services 50,174 1,172 51,346 162,164 (1,425) 160,739 Gross margin: Product sales 83,340 (1,021) 82,319 Contract services 25,548 (182) 25,366 108,888 (1,203) 107,685 Selling, general and administrative 50,826 — 50,826 Research and development 26,433 — 26,433 Loss (income) from continuing operations 31,629 (1,203) 30,426 Other income (expense): Interest income, net 2,240 — 2,240 Other expense, net (49) — (49) Income from continuing operations before income taxes 33,820 (1,203) 32,617 Provision for income taxes 10,177 (377) 9,800 Equity method investment loss, net of tax (1,283) — (1,283) Net (loss) income from continuing operations 22,360 (826) 21,534 Discontinued operations: Gain on sale of business, net of tax — — — Income (loss) from discontinued operations, net of tax (2,508) (1,379) (3,887) Net income (loss) from discontinued operations (2,508) (1,379) (3,887) Net (loss) income 19,852 (2,205) 17,647 Net loss attributable to noncontrolling interest 216 — 216 Net (loss) income attributable to AeroVironment $ 20,068 $ (2,205) $ 17,863 Net (loss) income per share attributable to AeroVironment—Basic Continuing operations $ 0.97 $ (0.03) $ 0.93 Discontinued operations (0.11) (0.06) (0.17) Net loss per share attributable to AeroVironment—Basic $ 0.86 $ (0.09) $ 0.76 Net (loss) income per share attributable to AeroVironment—Diluted Continuing operations $ 0.95 $ (0.03) $ 0.91 Discontinued operations (0.11) (0.06) (0.16) Net (loss) per share attributable to AeroVironment—Diluted $ 0.84 $ (0.09) $ 0.75 Weighted-average shares outstanding: Basic 23,471,241 23,471,241 23,471,241 Diluted 23,813,772 23,813,772 23,813,772 Year Ended April 30, 2017 As Reported ASC Topic 606 Impact As Adjusted Revenue: Product sales $ 159,630 $ (706) $ 158,924 Contract services 69,310 4,871 74,181 228,940 4,165 233,105 Cost of sales: Product sales 88,963 76 89,039 Contract services 44,792 2,401 47,193 133,755 2,477 136,232 Gross margin: Product sales 70,667 (782) 69,885 Contract services 24,518 2,470 26,988 95,185 1,688 96,873 Selling, general and administrative 47,642 — 47,642 Research and development 28,465 — 28,465 Loss (income) from continuing operations 19,078 1,688 20,766 Other income (expense): Interest income, net 1,618 — 1,618 Other expense, net 172 — 172 Income from continuing operations before income taxes 20,868 1,688 22,556 Provision for income taxes 4,138 620 4,758 Equity method investment loss, net of tax (119) — (119) Net (loss) income from continuing operations 16,611 1,068 17,679 Discontinued operations: Gain on sale of business, net of tax — — — Income (loss) from discontinued operations, net of tax (4,154) (447) (4,601) Net income (loss) from discontinued operations (4,154) (447) (4,601) Net (loss) income 12,457 621 13,078 Net loss attributable to noncontrolling interest 22 — 22 Net (loss) income attributable to AeroVironment $ 12,479 $ 621 $ 13,100 Net (loss) income per share attributable to AeroVironment—Basic Continuing operations $ 0.72 $ 0.05 $ 0.77 Discontinued operations (0.18) (0.02) (0.20) Net loss per share attributable to AeroVironment—Basic $ 0.54 $ 0.03 $ 0.57 Net (loss) income per share attributable to AeroVironment—Diluted Continuing operations $ 0.72 $ 0.05 $ 0.76 Discontinued operations (0.18) (0.02) (0.20) Net (loss) per share attributable to AeroVironment—Diluted $ 0.54 $ 0.03 $ 0.56 Weighted-average shares outstanding: Basic 23,059,045 23,059,045 23,059,045 Diluted 23,307,738 23,307,738 23,307,738 The tables below presents the impact of adoption on the Company’s statement of comprehensive (loss) income for the fiscal years ended April 30, 2018 and 2017 (in thousands). Year Ended April 30, 2018 As Reported ASC Topic 606 Impact As Adjusted Net (loss) income $ 19,852 $ (2,205) $ 17,647 Other comprehensive income: Change in foreign currency translation adjustments 36 — 36 Unrealized gain on investments, net of deferred tax expense of $25 and $43 for the fiscal years ended 2018 and 2017 70 — 70 Total comprehensive (loss) income 19,958 (2,205) $ 17,753 Net loss attributable to noncontrolling interest 216 — 216 Comprehensive (loss) income attributable to AeroVironment $ 20,174 $ (2,205) $ 17,969 Year Ended April 30, 2017 As Reported ASC Topic 606 Impact As Adjusted Net (loss) income $ 12,457 $ 621 $ 13,078 Other comprehensive income: Change in foreign currency translation adjustments — — — Unrealized gain on investments, net of deferred tax expense of $25 and $43 for the fiscal years ended 2018 and 2017 74 — 74 Total comprehensive (loss) income 12,531 621 $ 13,152 Net loss attributable to noncontrolling interest 22 — 22 Comprehensive (loss) income attributable to AeroVironment $ 12,553 $ 621 $ 13,174 The table below presents the impact of adoption on the Company’s statement of cash flows for the fiscal years ended April 30, 2018 and 2017 (in thousands). Year Ended April 30, 2018 As Reported ASC Topic 606 Impact As Adjusted Operating activities Net income (loss) $ 19,852 $ (2,205) $ 17,647 Gain on sale of business, net of tax — — — Loss from discontinued operations, net of tax 2,508 1,379 3,887 Net income from continuing operations 22,360 (826) 21,534 Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 5,982 — 5,982 Loss from equity method investments 1,283 — 1,283 Impairment of long-lived assets 255 — 255 Provision for doubtful accounts 977 — 977 Impairment of intangible assets and goodwill 1,021 — 1,021 Gains on foreign currency transactions (87) — (87) Deferred income taxes 3,835 (982) 2,853 Gain on business acquisition — — — Stock-based compensation 4,956 — 4,956 Loss on disposition of property and equipment 20 — 20 Amortization of held-to-maturity investments 1,424 — 1,424 Changes in operating assets and liabilities: Accounts receivable 11,211 (141) 11,070 Unbilled receivables and retentions 903 1,350 2,253 Inventories 2,268 (1,076) 1,192 Income tax receivable — — — Prepaid expenses and other assets 419 (280) 139 Accounts payable 5,736 — 5,736 Other liabilities 7,873 1,351 9,224 Net cash provided by (used in) operating activities of continuing operations 70,436 (604) 69,832 Investing activities Acquisition of property and equipment (9,563) — (9,563) Equity method investments (3,267) — (3,267) Business acquisitions, net of tax — — — Proceeds from sale of business — — — Redemptions of held-to-maturity investments 227,663 — 227,663 Purchases of held-to-maturity investments (221,680) — (221,680) Redemptions of available-for-sale investments 450 — 450 Net cash provided by investing activities from continuing operations (6,397) — (6,397) Financing activities Principal payments of capital lease obligations (288) — (288) Tax withholding payment related to net settlement of equity awards (397) — (397) Exercise of stock options 2,705 — 2,705 Net cash provided by financing activities from continuing operations 2,020 — 2,020 Discontinued operations Operating activities of discontinued operations (1,227) 604 (623) Investing activities of discontinued operations (1,219) — (1,219) Financing activities of discontinued operations — — — Net cash (used in) provided by discontinued operations (2,446) 604 (1,842) Net increase in cash and cash equivalents 63,613 — 63,613 Cash and cash equivalents at beginning of period 79,904 — 79,904 Cash and cash equivalents at end of period $ 143,517 $ — $ 143,517 Supplemental disclosures of cash flow information Cash paid, net during the period for: Income taxes $ 1,813 — $ 1,813 Non-cash activities Unrealized gain on investments, net of deferred tax expense of $25 and $43 $ 70 — $ 70 Reclassification from share-based liability compensation to equity $ 384 — $ 384 Change in foreign currency translation adjustments $ 36 — $ 36 Acquisitions of property and equipment included in accounts payable $ 379 — $ 379 Year Ended April 30, 2017 As Reported ASC Topic 606 Impact As Adjusted Operating activities Net income (loss) $ 12,457 $ 621 $ 13,078 Gain on sale of business, net of tax — — — Loss from discontinued operations, net of tax 4,154 447 4,601 Net income from continuing operations 16,611 1,068 17,679 Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 5,054 — 5,054 Loss from equity method investments 119 — 119 Impairment of long-lived assets 46 — 46 Provision for doubtful accounts 48 — 48 Impairment of intangible assets and goodwill — — — Gains on foreign currency transactions 284 — 284 Deferred income taxes (52) 361 309 Gain on business acquisition (584) — (584) Stock-based compensation 3,392 — 3,392 Loss on disposition of property and equipment 44 — 44 Amortization of held-to-maturity investments 2,382 — 2,382 Changes in operating assets and liabilities: Accounts receivable (19,608) (112) (19,720) Unbilled receivables and retentions 4,667 (4,052) 615 Inventories (19,225) 2,409 (16,816) Income tax receivable — — — Prepaid expenses and other assets (1,484) — (1,484) Accounts payable 545 — 545 Other liabilities (233) 67 (166) Net cash provided by (used in) operating activities of continuing operations (7,994) (259) (8,253) Investing activities Acquisition of property and equipment (9,017) — (9,017) Equity method investments — — — Business acquisitions, net of tax (430) — (430) Proceeds from sale of business — — — Redemptions of held-to-maturity investments 121,522 — 121,522 Purchases of held-to-maturity investments (148,991) — (148,991) Redemptions of available-for-sale investments 400 — 400 Net cash provided by investing activities from continuing operations (36,516) — (36,516) Financing activities Principal payments of capital lease obligations (390) — (390) Tax withholding payment related to net settlement of equity awards (5) — (5) Exercise of stock options 3,865 — 3,865 Net cash provided by financing activities from continuing operations 3,470 — 3,470 Discontinued operations Operating activities of discontinued operations (2,505) 259 (2,246) Investing activities of discontinued operations (838) — (838) Financing activities of discontinued operations — — — Net cash (used in) provided by discontinued operations (3,343) 259 (3,084) Net increase in cash and cash equivalents (44,383) — (44,383) Cash and cash equivalents at beginning of period 124,287 — 124,287 Cash and cash equivalents at end of period $ 79,904 $ — $ 79,904 Supplemental disclosures of cash flow information Cash paid, net during the period for: Income taxes $ 1,804 — $ 1,804 Non-cash activities Unrealized gain on investments, net of deferred tax expense of $25 and $43 $ 74 — $ 74 Reclassification from share-based liability compensation to equity $ 307 — $ 307 Change in foreign currency translation adjustments $ — — $ — Acquisitions of property and equipment included in accounts payable $ 724 — $ 724 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2019 | |
Subsequent Events. | |
Subsequent Events | 22. Subsequent Events On June 10, 2019, the Company purchased 100% of the issued and outstanding member units of Pulse Aerospace, LLC (“Pulse”) pursuant to the terms of a Unit Purchase Agreement (the “Pulse Purchase Agreement”). The Company’s acquisition of Pulse’s Vertical Takeoff and Landing (VTOL) product family strengthens AeroVironment’s leading family of fixed-wing small unmanned aircraft systems and increases the mission capabilities of AeroVironment’s family of systems. Pursuant to the Pulse Purchase Agreement, at closing, the Company paid $20,650,000 in cash, less closing indebtedness and transaction costs as defined in the Pulse Purchase Agreement, less a $250,000 retention to cover any post-closing indemnification claims, and less a $1,250,000 holdback amount, with the retention and holdback to be released to the member unit holders of Pulse Aerospace, less any amounts paid or reserved, 18 months after the closing of the transactions in accordance with the terms of the Pulse Purchase Agreement. The closing cash consideration included the payoff of the outstanding indebtedness of Pulse Aerospace as of the closing date. In addition to the consideration paid at closing, the Sellers may receive up to a maximum of $5,000,000 in additional cash consideration, which amount has been placed into escrow, if specific research and development milestones are achieved by December 10, 2021. The Company financed the acquisition entirely from available cash on hand. Due to the timing of the acquisition, the purchase accounting for the business combination is incomplete at the time of this filing. As a result, the Company is unable to provide the amounts recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed, pre-acquisition contingencies and goodwill. In addition, the Company is unable to provide pro forma revenues and earnings of the combined entity. All required disclosures will be included in the Company's Quarterly Report on Form 10-Q for the quarter ended July 27, 2019. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Apr. 30, 2019 | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SUPPLEMENTARY DATA SCHEDULE II— Additions Balance at Charged to Charged to Balance at Beginning Costs and Other End of Description of Period Expenses Accounts Deductions Period (In thousands) Allowance for doubtful accounts for the year ended April 30: 2017 $ 56 $ 56 $ — $ (8) $ 104 2018 $ 104 $ 976 $ — $ — $ 1,080 2019 $ 1,080 $ 198 $ — $ (237) $ 1,041 Warranty reserve for the year ended April 30: 2017 $ 3,094 $ 1,838 $ — $ (2,985) $ 1,947 2018 $ 1,947 $ 1,884 $ — $ (1,741) $ 2,090 2019 $ 2,090 $ 702 $ — $ (1,088) $ 1,704 Reserve for inventory excess and obsolescence for the year ended April 30: 2017 $ 2,542 $ 1,115 $ — $ (901) $ 2,756 2018 $ 2,756 $ 2,758 $ — $ (1,561) $ 3,953 2019 $ 3,953 $ 5,054 $ — $ (1,183) $ 7,824 Reserve for self-insured medical claims for the year ended April 30: 2017 $ 979 $ 7,037 $ — $ (6,883) $ 1,133 2018 $ 1,133 $ 9,100 $ — $ (9,230) $ 1,003 2019 $ 1,003 $ 10,808 $ — $ (10,867) $ 944 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2019 | |
Organization and Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of AeroVironment, Inc. and its wholly‑owned subsidiaries: AeroVironment Rhode Island, LLC, Skytower Inc., AeroVironment, Inc. (Afghanistan), as well as the Company’s Turkish joint venture, Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”) (collectively referred to herein as the “Company”). The Company increased its ownership in Altoy to a controlling interest on February 1, 2017. As a result of the increase in ownership, the consolidated financial statements include the balance sheet and results of operations of Altoy from February 1, 2017 forward. Prior to this date, the Company's investment in Altoy was accounted for under the equity method. Refer to Note 19 - Business Acquisitions for further details. All intercompany balances and transactions have been eliminated in consolidation. In July 2016, the Company dissolved Charger Bicycles, LLC, the results of which were not material to the consolidated financial statements. In October 2016, the Company dissolved Skytower, LLC and Regenerative Fuel Cell Systems, LLC, the results of which were not material to the consolidated financial statements. In February 2018, the Company dissolved AeroVironment GmbH, the results of which were not material to the consolidated financial statements. In February 2019, the Company dissolved AeroVironment International PTE. LTD., the results of which were not material to the consolidated financial statements. On June 29, 2018, the Company completed the sale of substantially all of the assets and related liabilities of its efficient energy systems business segment (“the EES Business”) to Webasto Charging Systems, Inc. (“Webasto”) pursuant to an Asset Purchase Agreement (the “Purchase Agreement”) between Webasto and the Company. The Company determined that the EES Business met the criteria for classification as an asset held for sale at April 30, 2018 and represented a strategic shift in the Company’s operations. Therefore, the assets and liabilities and the results of operations of the EES Business are reported as discontinued operations for all periods presented. Refer to Note 2—Discontinued Operations for further details. |
Investments in Companies Accounted for Using the Equity or Cost Method | Investments in Companies Accounted for Using the Equity or Cost Method Investments in other non‑consolidated entities are accounted for using the equity method or cost basis depending upon the level of ownership and/or the Company’s ability to exercise significant influence over the operating and financial policies of the investee. When the equity method is used, investments are recorded at original cost and adjusted periodically to recognize the Company’s proportionate share of the investees’ net income or losses after the date of investment. When net losses from an investment accounted for under the equity method exceed its carrying amount, the investment balance is reduced to zero and additional losses are not provided for as the Company is not obligated to provide additional capital. The Company resumes accounting for the investment under the equity method if the entity subsequently reports net income and the Company’s share of that net income exceeds the share of net losses not recognized during the period the equity method was suspended. When an investment accounted for using the equity method issues its own shares, the subsequent reduction in the Company’s proportionate interest in the investee is reflected in equity as an adjustment to paid‑in‑capital. The Company evaluates its investments in companies accounted for by the equity or cost method for impairment when there is evidence or indicators that a decrease in value may be other than temporary. In December of 2017, the Company and Softbank Corp. (“Softbank”) formed a joint venture, HAPSMobile Inc. (“HAPSMobile”). As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile, the Company’s investment is accounted as an equity method investment. The Company has presented its proportion of HAPSMobile’s net loss in “Equity method investment loss, net of tax” in the consolidated statement of operations. The carrying value of the investment in HAPSMobile was recorded in “Other assets, long-term.” Refer to Note 8 – Equity Method Investments for further details. |
Segments | Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM, who is the Chief Executive Officer, makes operating decisions, assesses performance and makes resource allocation decisions, including the focus of research and development (“R&D”), on a consolidated basis for the Company’s continuing operations. Accordingly, the Company operates its business as a single reportable segment. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of: inventory, available‑for‑sale securities, deferred tax assets and liabilities, useful lives of property, plant and equipment, medical and dental liabilities, warranty liabilities, long-term incentive plan liabilities and estimates of anticipated contract costs and transaction price utilized in the revenue recognition process. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Equity method losses associated with the Company’s investment in Altoy for the fiscal year ended 2017 have been reclassified from other income (expense), net to equity method investment loss, net of tax on the consolidated statement of operations. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. The Company’s cash equivalents are comprised of money market funds, certificates of deposit of major financial institutions, and U.S. Treasury bills. |
Investments | Investments The Company’s investments are accounted for as held‑to‑maturity and available‑for‑sale and reported at amortized cost and fair value, respectively. Unrealized gains and losses are excluded from earnings and reported as a separate component of stockholders’ equity, net of deferred income taxes for available-for-sale investments. Gains and losses realized on the disposition of investment securities are determined on the specific identification basis and credited or charged to income. Premium and discount on investments are amortized and accreted using the interest method and charged or credited to investment income. Management determines the appropriate classification of securities at the time of purchase and re‑evaluates such designation as of each balance sheet date. Investments are considered to be impaired when a decline in fair value is judged to be other‑than‑temporary. On a quarterly basis, the Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and its intent and ability to hold the investment to maturity. The Company also considers potential adverse conditions related to the financial health of the issuer based on rating agency actions. Once a decline in fair value is determined to be other‑than‑temporary, an impairment charge is recorded in earnings and a new cost basis in the investment is established. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments Fair values of cash and cash equivalents, accounts receivable, unbilled receivables, retentions and accounts payable approximate cost due to the short period of time to maturity. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, municipal bonds, U.S. government securities, U.S. government-guaranteed agency securities, U.S. Government sponsored agency debt securities, highly rated commercial paper, highly rated corporate bonds, and accounts receivable. The Company currently invests the majority of its cash in municipal bonds, U.S. government securities, U.S. government-guaranteed agency securities, U.S. Government sponsored agency debt securities and highly rated corporate bonds. The Company’s revenue and accounts receivable are with a limited number of corporations and governmental entities. In the aggregate, 58%, 58% and 65% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2019, 2018 and 2017, respectively. These agencies accounted for 26% and 49% of the accounts receivable balances at April 30, 2019 and 2018, respectively. One such agency, the U.S. Army, accounted for 28%, 19% and 20% of the Company’s consolidated revenue for the years ended April 30, 2019, 2018 and 2017, respectively. The Company performs ongoing credit evaluations of its commercial customers and maintains an allowance for potential losses. |
Accounts Receivable, Unbilled Receivables and Retentions | Accounts Receivable, Unbilled Receivables and Retentions Accounts receivable represents primarily U.S. government and Foreign government, and to a lesser extent commercial receivables, net of allowances for doubtful accounts. Unbilled receivables represent costs in excess of billings on incomplete contracts and, where applicable, accrued profit related to government long‑term contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables are considered contract assets. Retentions represent amounts withheld by customers until contract completion. At April 30, 2019 and 2018, the retention balances were $1,102,000 and $1,411,000, respectively. The Company determines the allowance for doubtful accounts based on historical customer experience and other currently available evidence. When a specific account is deemed uncollectible, the account is written off against the allowance. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance; such losses have historically been within management’s expectations. An account is deemed past due based on contractual terms rather than on how recently payments have been received. |
Inventories | Inventories Inventories are stated at the lower of cost (using the weighted average costing method) or net realizable value. Inventory write‑offs and write‑down provisions are provided to cover risks arising from slow‑moving items or technological obsolescence and for market prices lower than cost. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume. Based on this evaluation, provisions are made to write inventory down to its net realizable value. |
Long-Lived Assets | Long‑Lived Assets Property and equipment are carried at cost. Depreciation of property and equipment, including amortization of leasehold improvements, are provided using the straight‑line method over the following estimated useful lives: Machinery and equipment 2 - 7 years Computer equipment and software 2 - 5 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of useful life or term of lease The Company finances the purchase of certain IT equipment and perpetual software licenses with capital lease arrangements. The assets and liabilities under capital leases are recorded at the lesser of the present value of aggregate future minimum lease payments, including estimated bargain purchase options, or the fair value of the asset under lease. Assets under capital leases are depreciated using the straight-line method over the lesser of the estimated useful life of the asset or the term of the lease. Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and betterments to property and equipment are capitalized at cost. When the Company disposes of assets, the applicable costs and accumulated depreciation and amortization thereon are removed from the accounts and any resulting gain or loss is included in selling, general and administrative (“SG&A”) expense in the period incurred. The Company reviews the recoverability of its long‑lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. During the three months ended April 30, 2019, the Company recorded an impairment loss of $4,398,000 related to the long-lived assets of its commercial UAS Quantix solution. Refer to Note 7 – Property and equipment, net. |
Intangible Assets-Acquired in Business Combinations | Intangibles Assets — Acquired in Business Combinations The Company performs valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and allocates the purchase price of the acquired business to the respective net tangible and intangible assets. Acquired intangible assets include customer relationships and trade names. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Intangible assets are amortized over their estimated useful lives using the straight-line method which approximates the pattern in which the economic benefits are consumed. The Company monitors conditions related to these assets to determine whether events and circumstances warrant a revision to the remaining amortization period. The Company tests its intangible assets with finite lives for potential impairment whenever management concludes events or changes in circumstances indicate that the carrying amount may not be recoverable. The original estimate of an asset's useful life and the impact of an event or circumstance on either an asset's useful life or carrying value involve significant judgment. |
Product Warranty | Product Warranty The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred. Product warranty reserves are recorded in other current liabilities. |
Accrued Sales Commissions | Accrued Sales Commissions As of April 30, 2019 and 2018, the Company accrued sales commissions in other current liabilities of $1,301,000 and $1,293,000, respectively. |
Self-Insurance Liability | Self‑Insurance Liability The Company is self-insured for employee medical claims, subject to individual and aggregate stop loss policies. The Company estimates a liability for claims filed and incurred but not reported based upon recent claims experience and an analysis of the average period of time between the occurrence of a claim and the time it is reported to and paid by the Company. As of April 30, 2019 and 2018, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $965,000 and $1,003,000, respectively. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. The provision for income taxes reflects the taxes to be paid for the period and the change during the period in the deferred income tax assets and liabilities. The Company records a valuation allowance to reduce the deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. For uncertain tax positions, the Company determines whether it is “more likely than not” that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. For those tax positions where it is “not more likely than not” that a tax benefit will be sustained, no tax benefit is recognized. Where applicable, associated interest and penalties are also recorded. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, repeal of the corporate alternative minimum tax, repeal of the deduction for domestic production activities, and limitation on the deductibility of certain executive compensation. In accordance with U.S. GAAP as determined by ASC 740, Income Taxes, the Company is required to record the effects of tax law changes in the period enacted. The Company remeasured its existing deferred tax assets and liabilities at the rate the Company expects to be in effect when those deferred taxes will be realized and recorded a one-time deferred tax expense of approximately $3,300,000 during the year ended April 30, 2018. The Company followed the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740 in situations where the Company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Act’s enactment date and ending when the Company has obtained, prepared, and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date. The measurement period under SAB 118 closed during the quarter ended January 31, 2019. AV has finalized its accounting for the impact of the Tax Act during the quarter ended January 31, 2019 and reached conclusions on the previous provisional estimates. AV has concluded that its foreign subsidiaries are in a cumulative earnings and profits deficit and therefore has confirmed that it will not have an income tax payable as a result of the one-time deemed repatriation tax. In relation to the one-time deferred tax remeasurement, AV has concluded that the impact recorded at the date of enactment is appropriate and no changes to the provision estimate of this item. |
Customer Advances and Amounts in Excess of Cost Incurred | Customer Advances and Amounts in Excess of Cost Incurred The Company receives advances, performance‑based payments and progress payments from customers that may exceed costs incurred on certain contracts, including contracts with agencies of the U.S. government resulting in contract liabilities. These advances are classified as advances from customers and will be offset against billings. |
Revenue Recognition | Revenue Recognition The Company’s revenue is generated pursuant to written contractual arrangements to design, develop, manufacture and/or modify complex products, and to provide related engineering, technical and other services according to the specifications of the customers. These contracts may be firm fixed price (“FFP”), cost plus fixed fee (“CPFF”), or time and materials (“T&M”). The Company considers all such contracts to be within the scope of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Performance Obligations A performance obligation is a promise in a contract to transfer distinct goods or services to a customer, and it is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and revenue is recognized when each performance obligation under the terms of a contract is satisfied. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using its observable standalone selling price for products and services. When the standalone selling price is not directly observable, the Company uses its best estimate of the standalone selling price of each distinct good or service in the contract using the cost plus reasonable margin approach. This approach estimates the Company’s expected costs of satisfying the performance obligation and then adds an appropriate margin for that distinct good or service. Contract modifications are routine in the performance of the Company’s contracts. In most instances, contract modifications are for additional goods and/or services that are distinct and, therefore, accounted for as new contracts. The Company’s performance obligations are satisfied over time or at a point in time. Performance obligations are satisfied over time if the customer receives the benefits as the Company performs, if the customer controls the asset as it is being developed or produced, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment for the Company’s costs incurred to date plus a reasonable margin. The contractual right to payment is generally supported by termination for convenience clauses that allow the customer to unilaterally terminate the contract for convenience, pay the Company for costs incurred plus a reasonable profit, and take control of any work in process. Revenue for TMS product deliveries and Customer-Funded R&D contracts is recognized over time as costs are incurred. Contract services revenue is composed of revenue recognized on contracts for the provision of services, including repairs and maintenance, training, engineering design, development and prototyping activities, and technical support services. Contract services revenue is recognized over time as services are rendered. Typically, revenue is recognized over time using an input measure (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress. Training services are recognized over time using an output method based on days of training completed. For performance obligations satisfied over time, revenue is generally recognized using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which correspond with, and thereby best depict, transfer of control to the customer. Contract costs include labor, materials, subcontractors’ costs, other direct costs, and indirect costs applicable on government and commercial contracts. For performance obligations which are not satisfied over time per the aforementioned criteria above, revenue is recognized at the point in time in which each performance obligation is fully satisfied. The Company’s small UAS product sales revenue is composed of revenue recognized on contracts for the delivery of small UAS systems and spare parts. Revenue is recognized at the point in time when control transfers to the customer, which generally occurs when title and risk of loss have passed to the customer. On April 30, 2019, the Company had approximately $164,326,000 of remaining performance obligations under contracts with its customers, which the Company also refers to as backlog. The Company currently expects to recognize approximately 92% of the remaining performance obligations as revenue in fiscal 2020, an additional 7% in fiscal 2021, and the balance thereafter. The Company collects sales, value add, and other taxes concurrent with revenue producing activities, which are excluded from revenue when they are both imposed on a specific transaction and collected from a customer. Contract Estimates Accounting for contracts and programs primarily with a duration of less than six months involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the total expected costs to complete the contract and recognizes revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company’s performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors’ costs, other direct costs, and indirect costs applicable on government and commercial contracts. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. The nature of the Company’s contracts gives rise to several types of variable consideration, including penalty fees and incentive awards generally for late delivery and early delivery, respectively. The Company generally estimates such variable consideration as the most likely amount. In addition, the Company includes the estimated variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the related uncertainty is resolved. These estimates are based on historical award experience, anticipated performance and the Company’s best judgment at the time. Because of the certainty in estimating these amounts, they are included in the transaction price of the Company’s contracts and the associated remaining performance obligations. As a significant change in one or more of these estimates could affect the profitability of the Company’s contracts, the Company regularly reviews and updates its contract-related estimates. Changes in cumulative revenue estimates, due to changes in the estimated transaction price or cost estimates, are recorded using a cumulative catch-up adjustment in the period identified for contracts with performance obligations recognized over time. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the quarter it is identified. The impact of adjustments in contract estimates on the Company’s operating earnings can be reflected in either operating costs and expenses or revenue. The aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was not significant for the years ended April 30, 2019, 2018 or 2017. No adjustment on any one contract was material to the Company’s consolidated financial statements for the years ended April 30, 2019 or 2017. During the year ended April 30, 2018, the Company revised its estimates of the total expected costs to complete a TMS variant contract. The aggregate impact of these adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was a decrease of approximately $1,255,000. Revenue by Category The following tables present the Company’s revenue disaggregated by major product line, contract type, customer category and geographic location (in thousands): Year Ended April 30, April 30, April 30, Revenue by major product line/program 2019 2018 2017 Small UAS $ 183,157 $ 167,534 $ 145,760 TMS 65,087 63,406 81,182 HAPS 55,407 29,593 3 Other 10,623 7,891 6,160 Total revenue $ 314,274 $ 268,424 $ 233,105 Year Ended April 30, April 30, April 30, Revenue by contract type 2019 2018 2017 FFP $ 224,090 $ 212,976 $ 177,506 CPFF 89,485 55,203 54,052 T&M 699 245 1,547 Total revenue $ 314,274 $ 268,424 $ 233,105 Each of these contract types presents advantages and disadvantages. Typically, the Company assumes more risk with FFP contracts. However, these types of contracts generally offer additional profits when the Company completes the work for less than originally estimated. CPFF contracts generally subject the Company to lower risk. Accordingly, the associated base fees are usually lower than fees on FFP contracts. Under T&M contracts, the Company’s profit may vary if actual labor hour rates vary significantly from the negotiated rates. Year Ended April 30, April 30, April 30, Revenue by customer category 2019 2018 2017 U.S. government: $ 182,586 $ 156,996 $ 151,595 Non-U.S. government 131,688 111,428 81,510 Total revenue $ 314,274 $ 268,424 $ 233,105 Year Ended April 30, April 30, April 30, Revenue by geographic location 2019 2018 2017 Domestic $ 151,124 $ 142,158 $ 149,698 International 163,150 126,266 83,407 Total revenue $ 314,274 $ 268,424 $ 233,105 Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and customer advances and deposits on the consolidated balance sheet. In the Company’s services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, which is generally monthly, or upon the achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets recorded in “Unbilled receivables and retentions” on the consolidated balance sheet. However, the Company sometimes receives advances or deposits from its customers before revenue is recognized, resulting in contract liabilities recorded in “Customer advances” on the consolidated balance sheet. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. For the Company’s product revenue, the Company generally receives cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. Changes in the contract asset and liability balances during the years ended April 30, 2019 or 2018 were not materially impacted by any other factors. For the Company’s contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration. Revenue recognized for the years ended April 30, 2019, 2018, and 2017 that was included in contract liability balances at the beginning of each year were $1,587,000, $977,000 and $483,000, respectively. |
Stock-Based Compensation | Stock‑Based Compensation Stock‑based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period of the respective award. No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. |
Long-Term Incentive Awards | Long‑Term Incentive Awards For long‑term incentive awards outstanding as of April 30, 2019, the awards include time-based awards which vest equally over three years and performance-based awards which vest based on the achievement of a target payout established at the beginning of each performance period. The actual payout at the end of the performance period is calculated based upon the Company’s achievement of such targets. Payouts are made in restricted stock units which become immediately vested upon issuance. At each reporting period, the Company reassesses the probability of achieving the performance targets. The estimation of whether the performance targets will be achieved requires judgment, and, to the extent actual results or updated estimates differ from the Company’s current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period estimates are revised. |
Research and Development | Research and Development Internally funded research and development costs (“IRAD”), sponsored by the Company relate to both U.S. government products and services and those for commercial and foreign customers. IRAD costs for the Company are recoverable and allocable under government contracts in accordance with U.S. government procurement regulations. Customer‑funded research and development costs are incurred pursuant to contracts (revenue arrangements) to perform research and development activities according to customer specifications. These costs are direct contract costs and are expensed to cost of sales when the corresponding revenue is recognized, which is generally as the research and development services are performed. Revenue from customer‑funded research and development was approximately $76,407,000, $52,489,000 and $43,329,000 for the years ended April 30, 2019, 2018 and 2017, respectively. The related cost of sales for customer‑funded research and development totaled approximately $54,824,000, $36,855,000 and $29,527,000 for the years ended April 30, 2019, 2018 and 2017, respectively. In January 2017, the Company executed a cost sharing Other Transaction Agreement type contract funded by the US Federal Government to perform certain system design, development and functional testing activities specific to a new prototype UAS on a best-efforts basis. The total estimated costs of the project are approximately $21,933,000, of which the Company is responsible for funding $11,225,000. The remaining $10,708,000 will be reimbursed to the Company as the activities are performed. The term of the agreement is through June 2020. The Company has determined that the contract meets the criteria of ASC 912-730-05 Contractors – Federal Government and, therefore, all reimbursements are recorded as an offset to research and development expense in the consolidated statements of operations. Reimbursements under the contract were $5,936,000, $4,188,000 and $233,000 for the fiscal years ended April 30, 2019, 2018 and 2017, respectively. |
Lease Accounting | Lease Accounting The Company accounts for its leases and subsequent amendments as operating leases or capital leases for financial reporting purposes. Certain operating leases contain rent escalation clauses, which are recorded on a straight‑line basis over the initial term of the lease with the difference between the rent paid and the straight‑line rent recorded as a deferred rent liability. Lease incentives received from landlords are recorded as deferred rent liabilities and are amortized on a straight‑line basis over the lease term as a reduction to rent expense. Deferred rent liabilities were approximately $1,173,000 and $1,536,000 as of April 30, 2019 and 2018, respectively. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expenses included in SG&A expenses were approximately $897,000, $526,000 and $227,000 for the years ended April 30, 2019, 2018 and 2017, respectively. |
Foreign Currency Transactions | Foreign Currency Transactions Foreign currency transaction gains and losses are charged or credited to earnings as incurred. For the fiscal years ended April 30, 2019, 2018 and 2017, foreign currency transaction gains and losses that are included in other income (expense) in the accompanying statements of operations were $(38,000), $87,000, and $(284,000), respectively. |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed using the weighted‑average number of common shares outstanding and excludes any anti‑dilutive effects of options, restricted stock and restricted stock units. The dilutive effect of potential common shares outstanding is included in diluted earnings per share. The reconciliation of diluted to basic shares is as follows: Year Ended April 30, 2019 2018 2017 Continuing operations attributable to AeroVironment $ 41,912,000 $ 21,750,000 $ 17,701,000 Discontinued operations, net of tax 5,526,000 (3,887,000) (4,601,000) Net income attributable to AeroVironment $ 47,438,000 $ 17,863,000 $ 13,100,000 Denominator for basic earnings per share: Weighted average common shares 23,663,410 23,471,241 23,059,045 Dilutive effect of employee stock options, restricted stock and restricted stock units 408,303 342,531 248,693 Denominator for diluted earnings per share 24,071,713 23,813,772 23,307,738 During the years ended April 30, 2019, 2018 and 2017, certain options, shares of restricted stock and restricted stock units were not included in the computation of diluted earnings per share because their inclusion would have been anti‑dilutive. The number of options, restricted stock and restricted stock units which met this anti‑dilutive criterion was approximately 18,000, 22,000 and 86,000 for the years ended April 30, 2019, 2018 and 2017, respectively. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments (Topic 230). This ASU adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The Company’s adoption of ASU No. 2017-01 effective May 1, 2018 did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations—Clarifying the definition of a business (Topic 805). This ASU clarifies the definition of a business with the objective of providing a more robust framework to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company’s adoption of ASU No. 2017-01 effective May 1, 2018 did not have a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718). This ASU reduces the diversity in practice and cost and complexity when applying the guidance in Topic 718 to a change in terms or conditions of a share-based payment award. The Company’s adoption of ASU No. 2017-09 effective May 1, 2018 did not have a material impact on its consolidated financial statements. In the first quarter of its fiscal 2019, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), using the full retrospective method. Topic 606 requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue for small UAS product contracts with both the U.S. government and foreign governments under the new standard will be recognized at the point in time when the transfer of control passes to the customer, which is generally when title and risk of loss transfer. Revenue for Tactical Missile Systems (“TMS”) contracts will now be recognized under the new standard over time as costs are incurred. Under previous U.S. GAAP, revenue was generally recognized when deliveries of the related TMS products were made. The new standard accelerates the timing of when the revenue is recognized; however, it does not change the total amount of revenue recognized on these contracts. The new standard does not affect revenue recognition for the Company’s Customer-Funded Research and Development (“R&D”) contracts. The Company continues to recognize revenue for these contracts over time as costs are incurred. The adoption of Topic 606 resulted in a cumulative adjustment to increase retained earnings by $500,000 at May 1, 2016 relating to both the Company’s continuing and discontinued operations. For the Company’s continuing operations, the adoption of Topic 606 resulted in a cumulative adjustment to increase retained earnings by $564,000 at May 1, 2016. The Company applied the standard’s practical expedient that permits the omission of prior-period information about the Company’s remaining performance obligations, the practical expedient that permits the Company to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset the entity otherwise would have recognized is one year or less, and the practical expedient that permits the Company to not retrospectively restate contracts which were modified prior to the Company’s initial date of adoption, or May 1, 2016. Instead the Company reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price. No other practical expedients were applied. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires the lessee to recognize the assets and liabilities for the rights and obligations created by leases. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. The Company currently does not hold a large number of leases that are classified as operating leases under the existing lease standard, with the only significant leases being its various property leases. The Company plans to adopt Topic 842 using the required modified retrospective approach with the election to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As part of adoption, the Company plans to elect the package of practical expedients which allows us to not reassess existing or expired contracts for existence of a lease, lease classification, or amortization of previously capitalized initial direct leasing cost. Additionally, the Company also plans to elect the short-term lease exception to not record right-of-use assets and lease liabilities for leases with a term less than 12 months, the hindsight practical expedient to utilize latest information in determining lease term, and the practical expedient to not separate lease and non-lease components for most asset classes. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326). This ASU is intended to replace the incurred loss impairment methodology under GAAP with a methodology that reflects using a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments, and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The guidance is effective for fiscal years beginning after December 15, 2019 and the interim periods therein, with early adoption permitted. Entities are required to apply the amendments in this update using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220). This ASU permits, but does not require, the Company to reclassify the disproportionate income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on items within AOCI to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820). This ASU removes or modifies current disclosures while adding certain new disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods therein, with early adoption permitted for the removed or modified disclosures. The removed and modified disclosures can be adopted retrospectively, and the added disclosures should be adopted prospectively. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Topic 350-40). This ASU allows for capitalization of implementation costs associated with certain cloud computing arrangements. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Organization and Significant Accounting Policies | |
Schedule of estimated useful lives of property and equipment | Machinery and equipment 2 - 7 years Computer equipment and software 2 - 5 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of useful life or term of lease |
Schedule of revenue by category | Year Ended April 30, April 30, April 30, Revenue by major product line/program 2019 2018 2017 Small UAS $ 183,157 $ 167,534 $ 145,760 TMS 65,087 63,406 81,182 HAPS 55,407 29,593 3 Other 10,623 7,891 6,160 Total revenue $ 314,274 $ 268,424 $ 233,105 Year Ended April 30, April 30, April 30, Revenue by contract type 2019 2018 2017 FFP $ 224,090 $ 212,976 $ 177,506 CPFF 89,485 55,203 54,052 T&M 699 245 1,547 Total revenue $ 314,274 $ 268,424 $ 233,105 Year Ended April 30, April 30, April 30, Revenue by customer category 2019 2018 2017 U.S. government: $ 182,586 $ 156,996 $ 151,595 Non-U.S. government 131,688 111,428 81,510 Total revenue $ 314,274 $ 268,424 $ 233,105 Year Ended April 30, April 30, April 30, Revenue by geographic location 2019 2018 2017 Domestic $ 151,124 $ 142,158 $ 149,698 International 163,150 126,266 83,407 Total revenue $ 314,274 $ 268,424 $ 233,105 |
Schedule of reconciliation of basic to diluted shares | Year Ended April 30, 2019 2018 2017 Continuing operations attributable to AeroVironment $ 41,912,000 $ 21,750,000 $ 17,701,000 Discontinued operations, net of tax 5,526,000 (3,887,000) (4,601,000) Net income attributable to AeroVironment $ 47,438,000 $ 17,863,000 $ 13,100,000 Denominator for basic earnings per share: Weighted average common shares 23,663,410 23,471,241 23,059,045 Dilutive effect of employee stock options, restricted stock and restricted stock units 408,303 342,531 248,693 Denominator for diluted earnings per share 24,071,713 23,813,772 23,307,738 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of statements of operations data for the EES Business | Year Ended April 30, 2019 2018 2017 Net sales $ 4,256 $ 38,411 $ 36,201 Cost of sales 5,097 33,384 29,983 Gross margin (841) 5,027 6,218 Selling, general and administrative 1,515 7,825 8,895 Research and development 1,072 3,526 4,577 Other income, net 1 (27) 7 Loss from discontinued operations before income taxes (3,427) (6,351) (7,247) Benefit for income taxes (463) (2,464) (2,646) Net loss from discontinued operations $ (2,964) $ (3,887) $ (4,601) Gain on sale of business, net of tax expense of $2,444 for the year ended April 30, 2019 8,490 — — Net income (loss) from discontinued operations $ 5,526 $ (3,887) $ (4,601) |
Major classes of assets and liabilities | April 30, 2019 2018 Carrying amount of assets classified as discontinued operations Current assets: Accounts receivable, net of allowance for doubtful accounts of $139 at April 30, 2018 $ — $ 6,889 Inventories, net — 15,494 Prepaid expenses and other current assets — 185 Property and equipment, net — 3,100 Total current assets classified as discontinued operations — 25,668 Property and equipment, net — — Total non-current assets classified as discontinued operations — — Total assets classified as discontinued operations $ — $ 25,668 Carrying amount of liabilities classified as discontinued operations Current liabilities: Accounts payable $ — $ 5,121 Wages and related accruals — 1,946 Customer advances — 1,028 Other current liabilities — 1,199 Total current liabilities — 9,294 Total liabilities classified as discontinued operations $ — $ 9,294 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Investments | |
Schedule of investments | April 30, 2019 2018 (In thousands) Short-term investments: Held-to-maturity securities: Municipal securities $ 5,332 $ 35,344 U.S. government securities 63,205 31,620 Corporate bonds 81,950 46,685 Total held-to-maturity and short-term investments $ 150,487 $ 113,649 Long-term investments: Held-to-maturity securities: Municipal securities $ — $ 2,046 U.S. government securities 7,404 27,356 Corporate bonds 1,982 9,112 Total held-to-maturity investments 9,386 38,514 Available-for-sale securities: Auction rate securities — 2,142 Total available-for-sale investments — 2,142 Total long-term investments $ 9,386 $ 40,656 |
Held to maturity securities | |
Investments | |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of held-to-maturity investments | The amortized cost, gross unrealized losses, and estimated fair value of the held‑to‑maturity investments as of April 30, are as follows (in thousands): April 30, 2019 April 30, 2018 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Municipal securities $ 5,332 $ 2 $ (1) $ 5,333 $ 37,390 $ 9 $ (36) $ 37,363 U.S. government securities 70,609 78 (52) 70,635 58,976 — (367) 58,609 Corporate bonds 83,932 20 (5) 83,947 55,797 2 (71) 55,728 Total held-to-maturity investments $ 159,873 $ 100 $ (58) $ 159,915 $ 152,163 $ 11 $ (474) $ 151,700 |
Schedule of amortized cost and fair value by contractual maturity | The amortized cost and fair value of the Company’s held‑to‑maturity securities by contractual maturity at April 30, 2019, are as follows: Cost Fair Value Due within one year $ 150,487 $ 150,498 Due after one year through five years 9,386 9,417 Total $ 159,873 $ 159,915 |
Available-for-sale securities | |
Investments | |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of available-for-sale investments | April 30, 2019 2018 Auction rate securities Amortized cost $ - $ 2,250 Gross unrealized losses - (108) Fair value $ - $ 2,142 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Fair Value Measurements | |
Schedule of reconciliation between beginning and ending balances of items measured at fair value on recurring basis that used significant unobservable inputs (Level 3) | The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) (in thousands): Fair Value Measurements Using Significant Unobservable Inputs Description (Level 3) Balance at May 1, 2018 $ 2,142 Transfers to Level 3 — Total gains (realized or unrealized) Included in earnings — Included in other comprehensive income 108 Settlements (2,250) Balance at April 30, 2019 $ — The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at April 30, 2019 $ — |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Inventories, net | |
Schedule of inventories | April 30, 2019 2018 Raw materials $ 16,792 $ 12,020 Work in process 19,162 14,780 Finished goods 25,926 14,578 Inventories, gross 61,880 41,378 Reserve for inventory excess and obsolescence (7,824) (3,953) Inventories, net $ 54,056 $ 37,425 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Intangibles | |
Schedule of components of intangibles | Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows: April 30, April 30, 2019 2018 (In thousands) Licenses $ 1,006 $ 818 Customer relationships 733 733 Trademarks and tradenames 28 28 Other 3 3 Intangibles, gross 1,770 1,582 Less accumulated amortization (1,311) (954) Intangibles, net $ 459 $ 628 |
Schedule of estimated amortization expense for the next five years | Year ending April 30, (In thousands) 2020 $ 360 2021 98 2022 1 2023 — 2024 — $ 459 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Property and Equipment, net | |
Schedule of property and equipment | April 30, 2019 2018 (In thousands) Leasehold improvements $ 12,324 $ 10,541 Machinery and equipment 40,432 40,377 Furniture and fixtures 2,145 2,094 Computer equipment and software 35,056 31,895 Construction in process 2,411 3,359 Property and equipment, gross 92,368 88,266 Less accumulated depreciation and amortization (75,463) (69,047) Property and equipment, net $ 16,905 $ 19,219 |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Warranty Reserves | |
Summary of warranty reserve activity | April 30, 2019 2018 (In thousands) Beginning balance $ 2,090 $ 1,947 Warranty expense 211 1,884 Changes in estimates related to pre-existing warranties 491 — Warranty costs settled (1,088) (1,741) Ending balance $ 1,704 $ 2,090 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Stock-Based Compensation | |
Schedule of stock option plans | Restated 2006 Plan 2002 Plan 1992 Plan Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at April 30, 2016 678,799 24.46 13,824 11.79 68,604 0.59 Options granted — — — — — — Options exercised (167,310) 22.32 (9,601) 11.79 (25,189) 0.59 Options canceled (64,865) 26.76 (4,223) 11.79 — — Outstanding at April 30, 2017 446,624 24.93 — — 43,415 0.59 Options granted — — — — — — Options exercised (107,598) 23.80 — — (25,113) 0.59 Options canceled — — — — — — Outstanding at April 30, 2018 339,026 25.29 — — 18,302 0.59 Options granted — — — — — — Options exercised (2,000) 32.19 — — (4,000) 0.59 Options canceled — — — — — — Outstanding at April 30, 2019 337,026 25.25 — — 14,302 0.59 Options exercisable at April 30, 2019 297,516 $ 24.94 — $ — 14,302 $ 0.59 |
Schedule of the status of the Company's non-vested stock options | Weighted Average Grant Date Non-vested Options Options Fair Value Non-vested at April 30, 2018 83,014 $ 10.97 Granted — — Expired — — Canceled — — Vested (43,504) 11.03 Non-vested at April 30, 2019 39,510 $ 10.90 |
Schedule of information concerning outstanding and exercisable options | Options Outstanding Weighted Average Options Exercisable Remaining Weighted Weighted As of Contractual Average As of Average April 30, Life In Exercise April 30, Exercise Range of Exercise Prices 2019 Years Price 2019 Price $ 0.59 - 19.16 68,302 3.36 $ 14.56 68,302 $ 14.56 - 26.24 58,500 3.86 20.54 58,500 20.54 - 80,000 6.15 26.70 48,000 26.70 - 50,000 4.56 27.27 50,000 27.27 - 31.27 94,526 3.68 29.85 87,016 29.73 $ - 31.27 351,328 4.34 $ 24.24 311,818 $ 23.82 |
Schedule of Company's restricted stock awards | Information related to the Company’s restricted stock awards at April 30, 2019 and for the year then ended is as follows: Restated 2006 Plan Weighted Average Grant Date Shares Fair Value Unvested stock at April 30, 2018 341,911 $ 31.13 Stock granted 57,476 74.05 Stock vested (163,839) 29.03 Stock canceled (9,389) 36.19 Unvested stock at April 30, 2019 226,159 $ 43.35 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Income Taxes | |
Schedule of components of income before income taxes | The components of income before income taxes are as follows (in thousands): Year Ended April 30, 2019 2018 2017 Domestic $ 50,644 $ 32,651 $ 22,642 Foreign (166) (34) (86) Income from continuing operations before income taxes 50,478 32,617 22,556 Equity method investment loss (3,944) (1,283) (119) Total income from continuing operations before income taxes $ 46,534 $ 31,334 $ 22,437 |
Schedule of reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense (benefit) | Year Ended April 30, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 30.4 % 34.0 % State and local income taxes, net of federal benefit (2.2) (2.2) (1.7) R&D and other tax credits (8.1) (7.0) (10.8) Valuation allowance 3.7 4.9 3.8 Foreign rate differential — 0.1 — Return to provision adjustments (0.3) (0.1) (0.3) Permanent items 0.8 (2.7) (2.3) Foreign derived intangible income (3.7) — — Excess benefit of stock options (3.1) (4.4) (1.0) Tax Act — 10.4 — Other 1.1 0.6 (0.6) Effective income tax rate 9.2 % 30.0 % 21.1 % |
Schedule of components of the provision (benefit) for income taxes | The components of the provision (benefit) for income taxes are as follows (in thousands): Year Ended April 30, 2019 2018 2017 Current: Federal $ 1,953 $ 6,010 $ 4,336 State 228 900 243 Foreign — — — 2,181 6,910 4,579 Deferred: Federal 1,945 3,272 (66) State 551 (330) 280 Foreign (36) (52) (35) 2,460 2,890 179 Total income tax expense (benefit) $ 4,641 $ 9,800 $ 4,758 |
Schedule of components of the Company's deferred income tax assets and liabilities | Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands): April 30, 2019 2018 Deferred income tax assets: Accrued expenses $ 5,206 $ 5,771 Allowances, reserves, and other 2,729 2,100 Unrealized loss on securities — 25 Net operating loss and credit carry-forwards 13,208 12,361 Intangibles basis 125 94 Total deferred income tax assets 21,268 20,351 Deferred income tax liabilities: Fixed asset basis (425) (682) Revenue recognition (2,909) 326 Total deferred income tax liabilities (3,334) (356) Valuation allowance (11,278) (8,568) Net deferred tax assets $ 6,656 $ 11,427 |
Summary of activity related to gross unrecognized tax benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended April 30, 2019 and 2018 (in thousands): April 30, 2019 2018 Balance as of May 1 $ 11,170 $ 9,856 Increases related to prior year tax positions 216 228 Decreases related to prior year tax positions — — Increases related to current year tax positions 1,756 1,347 Decreases related to lapsing of statute of limitations (549) (261) Balance as of April 30 $ 12,593 $ 11,170 |
AOCI (Loss) and Reclassificat_2
AOCI (Loss) and Reclassifications Adjustments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
AOCI (Loss) and Reclassifications Adjustments | |
Schedule of components of accumulated other comprehensive loss | The components of accumulated other comprehensive loss are as follows (in thousands): Total Accumulated Other Available-for-Sale Foreign Currency Comprehensive Securities Translation Adjustments Loss Total accumulated other comprehensive loss balance as of April 30, 2018 $ (57) $ 36 $ (21) Changes in foreign currency translation adjustments, net of $0 taxes — (34) (34) Unrealized gains, net of $51 of taxes 57 — 57 Total accumulated other comprehensive loss balance as of April 30, 2019 $ — $ 2 $ 2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies | |
Summary of non-cancellable operating and capital lease commitments | April 30, 2019 (In thousands) Operating leases 2020 $ 5,298 2021 3,527 2022 2,723 2023 1,554 2024 953 Thereafter — $ 14,055 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of the fair value of the assets acquired and liabilities assumed at the acquisition date | The following table summarizes the consideration transferred to acquire Altoy and the amounts of identified assets acquired and liabilities assumed at the acquisition date, as well as the fair value of the noncontrolling interest in Altoy at the acquisition date (in thousands): Customer relationships $ 1,600 Goodwill 122 Trademark and trade names 60 Deferred tax liability (332) Other assets and liabilities assumed 286 Total net identified assets acquired $ 1,736 Fair value of consideration transferred: Cash $ 625 Fair value of the Company's investment in Altoy prior to the acquisition 851 Fair value of the noncontrolling interest in Altoy 260 Total $ 1,736 |
Schedule of unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred | Fiscal year ended April 30, 2017 2016 Revenue $ 229,287 $ 233,941 Net income from continuing operations $ 15,808 $ 15,595 Net income attributable to AeroVironment $ 15,888 $ 15,666 |
Impact of Adoption of New Acc_2
Impact of Adoption of New Accounting Standards (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Effect of the April 30, 2018 Adoption of April 30, 2018 As Reported ASC Topic 606 As Adjusted Assets Current assets: Cash and cash equivalents $ 143,517 $ — $ 143,517 Short-term investments 113,649 — 113,649 Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018 56,813 — 56,813 Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018) 13,076 3,796 16,872 Inventories, net 38,640 (1,215) 37,425 Prepaid expenses and other current assets 5,103 — 5,103 Current assets of discontinued operations 28,349 (2,681) 25,668 Total current assets 399,147 (100) 399,047 Long-term investments 40,656 — 40,656 Property and equipment, net 19,219 — 19,219 Deferred income taxes 11,168 326 11,494 Other assets 2,721 281 3,002 Total assets $ 472,911 $ 507 $ 473,418 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 21,340 $ — $ 21,340 Wages and related accruals 16,851 — 16,851 Income taxes payable 4,085 — 4,085 Customer advances 2,145 1,419 3,564 Other current liabilities 6,892 62 6,954 Current liabilities of discontinued operations 9,184 110 9,294 Total current liabilities 60,497 1,591 62,088 Deferred rent 1,536 — 1,536 Other non-current liabilities 622 — 622 Deferred tax liability 67 — 67 Liability for uncertain tax positions 49 — 49 Commitments and contingencies Stockholders’ equity: Preferred stock, $0.0001 par value: Authorized shares—10,000,000; none issued or outstanding at April 30, 2018 — — — Common stock, $0.0001 par value: Authorized shares—100,000,000 Issued and outstanding shares—23,908,736 at April 30, 2018 2 — 2 Additional paid-in capital 170,139 — 170,139 Accumulated other comprehensive loss (21) — (21) Retained earnings 239,997 (1,084) 238,913 Total AeroVironment stockholders’ equity 410,117 (1,084) 409,033 Noncontrolling interest 23 — 23 Total equity 410,140 (1,084) 409,056 Total liabilities and stockholders’ equity $ 472,911 $ 507 $ 473,418 The tables below presents the impact of adoption on the Company’s statement of operations for the fiscal years ended April 30, 2018 and 2017 (in thousands except share and per share data). Year Ended April 30, 2018 As Reported ASC Topic 606 Impact As Adjusted Revenue: Product sales $ 195,330 $ (3,618) $ 191,712 Contract services (inclusive of related party revenue of $29,594 for the year ended April 30, 2018) 75,722 990 76,712 271,052 (2,628) 268,424 Cost of sales: Product sales 111,990 (2,597) 109,393 Contract services 50,174 1,172 51,346 162,164 (1,425) 160,739 Gross margin: Product sales 83,340 (1,021) 82,319 Contract services 25,548 (182) 25,366 108,888 (1,203) 107,685 Selling, general and administrative 50,826 — 50,826 Research and development 26,433 — 26,433 Loss (income) from continuing operations 31,629 (1,203) 30,426 Other income (expense): Interest income, net 2,240 — 2,240 Other expense, net (49) — (49) Income from continuing operations before income taxes 33,820 (1,203) 32,617 Provision for income taxes 10,177 (377) 9,800 Equity method investment loss, net of tax (1,283) — (1,283) Net (loss) income from continuing operations 22,360 (826) 21,534 Discontinued operations: Gain on sale of business, net of tax — — — Income (loss) from discontinued operations, net of tax (2,508) (1,379) (3,887) Net income (loss) from discontinued operations (2,508) (1,379) (3,887) Net (loss) income 19,852 (2,205) 17,647 Net loss attributable to noncontrolling interest 216 — 216 Net (loss) income attributable to AeroVironment $ 20,068 $ (2,205) $ 17,863 Net (loss) income per share attributable to AeroVironment—Basic Continuing operations $ 0.97 $ (0.03) $ 0.93 Discontinued operations (0.11) (0.06) (0.17) Net loss per share attributable to AeroVironment—Basic $ 0.86 $ (0.09) $ 0.76 Net (loss) income per share attributable to AeroVironment—Diluted Continuing operations $ 0.95 $ (0.03) $ 0.91 Discontinued operations (0.11) (0.06) (0.16) Net (loss) per share attributable to AeroVironment—Diluted $ 0.84 $ (0.09) $ 0.75 Weighted-average shares outstanding: Basic 23,471,241 23,471,241 23,471,241 Diluted 23,813,772 23,813,772 23,813,772 Year Ended April 30, 2017 As Reported ASC Topic 606 Impact As Adjusted Revenue: Product sales $ 159,630 $ (706) $ 158,924 Contract services 69,310 4,871 74,181 228,940 4,165 233,105 Cost of sales: Product sales 88,963 76 89,039 Contract services 44,792 2,401 47,193 133,755 2,477 136,232 Gross margin: Product sales 70,667 (782) 69,885 Contract services 24,518 2,470 26,988 95,185 1,688 96,873 Selling, general and administrative 47,642 — 47,642 Research and development 28,465 — 28,465 Loss (income) from continuing operations 19,078 1,688 20,766 Other income (expense): Interest income, net 1,618 — 1,618 Other expense, net 172 — 172 Income from continuing operations before income taxes 20,868 1,688 22,556 Provision for income taxes 4,138 620 4,758 Equity method investment loss, net of tax (119) — (119) Net (loss) income from continuing operations 16,611 1,068 17,679 Discontinued operations: Gain on sale of business, net of tax — — — Income (loss) from discontinued operations, net of tax (4,154) (447) (4,601) Net income (loss) from discontinued operations (4,154) (447) (4,601) Net (loss) income 12,457 621 13,078 Net loss attributable to noncontrolling interest 22 — 22 Net (loss) income attributable to AeroVironment $ 12,479 $ 621 $ 13,100 Net (loss) income per share attributable to AeroVironment—Basic Continuing operations $ 0.72 $ 0.05 $ 0.77 Discontinued operations (0.18) (0.02) (0.20) Net loss per share attributable to AeroVironment—Basic $ 0.54 $ 0.03 $ 0.57 Net (loss) income per share attributable to AeroVironment—Diluted Continuing operations $ 0.72 $ 0.05 $ 0.76 Discontinued operations (0.18) (0.02) (0.20) Net (loss) per share attributable to AeroVironment—Diluted $ 0.54 $ 0.03 $ 0.56 Weighted-average shares outstanding: Basic 23,059,045 23,059,045 23,059,045 Diluted 23,307,738 23,307,738 23,307,738 The tables below presents the impact of adoption on the Company’s statement of comprehensive (loss) income for the fiscal years ended April 30, 2018 and 2017 (in thousands). Year Ended April 30, 2018 As Reported ASC Topic 606 Impact As Adjusted Net (loss) income $ 19,852 $ (2,205) $ 17,647 Other comprehensive income: Change in foreign currency translation adjustments 36 — 36 Unrealized gain on investments, net of deferred tax expense of $25 and $43 for the fiscal years ended 2018 and 2017 70 — 70 Total comprehensive (loss) income 19,958 (2,205) $ 17,753 Net loss attributable to noncontrolling interest 216 — 216 Comprehensive (loss) income attributable to AeroVironment $ 20,174 $ (2,205) $ 17,969 Year Ended April 30, 2017 As Reported ASC Topic 606 Impact As Adjusted Net (loss) income $ 12,457 $ 621 $ 13,078 Other comprehensive income: Change in foreign currency translation adjustments — — — Unrealized gain on investments, net of deferred tax expense of $25 and $43 for the fiscal years ended 2018 and 2017 74 — 74 Total comprehensive (loss) income 12,531 621 $ 13,152 Net loss attributable to noncontrolling interest 22 — 22 Comprehensive (loss) income attributable to AeroVironment $ 12,553 $ 621 $ 13,174 The table below presents the impact of adoption on the Company’s statement of cash flows for the fiscal years ended April 30, 2018 and 2017 (in thousands). Year Ended April 30, 2018 As Reported ASC Topic 606 Impact As Adjusted Operating activities Net income (loss) $ 19,852 $ (2,205) $ 17,647 Gain on sale of business, net of tax — — — Loss from discontinued operations, net of tax 2,508 1,379 3,887 Net income from continuing operations 22,360 (826) 21,534 Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 5,982 — 5,982 Loss from equity method investments 1,283 — 1,283 Impairment of long-lived assets 255 — 255 Provision for doubtful accounts 977 — 977 Impairment of intangible assets and goodwill 1,021 — 1,021 Gains on foreign currency transactions (87) — (87) Deferred income taxes 3,835 (982) 2,853 Gain on business acquisition — — — Stock-based compensation 4,956 — 4,956 Loss on disposition of property and equipment 20 — 20 Amortization of held-to-maturity investments 1,424 — 1,424 Changes in operating assets and liabilities: Accounts receivable 11,211 (141) 11,070 Unbilled receivables and retentions 903 1,350 2,253 Inventories 2,268 (1,076) 1,192 Income tax receivable — — — Prepaid expenses and other assets 419 (280) 139 Accounts payable 5,736 — 5,736 Other liabilities 7,873 1,351 9,224 Net cash provided by (used in) operating activities of continuing operations 70,436 (604) 69,832 Investing activities Acquisition of property and equipment (9,563) — (9,563) Equity method investments (3,267) — (3,267) Business acquisitions, net of tax — — — Proceeds from sale of business — — — Redemptions of held-to-maturity investments 227,663 — 227,663 Purchases of held-to-maturity investments (221,680) — (221,680) Redemptions of available-for-sale investments 450 — 450 Net cash provided by investing activities from continuing operations (6,397) — (6,397) Financing activities Principal payments of capital lease obligations (288) — (288) Tax withholding payment related to net settlement of equity awards (397) — (397) Exercise of stock options 2,705 — 2,705 Net cash provided by financing activities from continuing operations 2,020 — 2,020 Discontinued operations Operating activities of discontinued operations (1,227) 604 (623) Investing activities of discontinued operations (1,219) — (1,219) Financing activities of discontinued operations — — — Net cash (used in) provided by discontinued operations (2,446) 604 (1,842) Net increase in cash and cash equivalents 63,613 — 63,613 Cash and cash equivalents at beginning of period 79,904 — 79,904 Cash and cash equivalents at end of period $ 143,517 $ — $ 143,517 Supplemental disclosures of cash flow information Cash paid, net during the period for: Income taxes $ 1,813 — $ 1,813 Non-cash activities Unrealized gain on investments, net of deferred tax expense of $25 and $43 $ 70 — $ 70 Reclassification from share-based liability compensation to equity $ 384 — $ 384 Change in foreign currency translation adjustments $ 36 — $ 36 Acquisitions of property and equipment included in accounts payable $ 379 — $ 379 Year Ended April 30, 2017 As Reported ASC Topic 606 Impact As Adjusted Operating activities Net income (loss) $ 12,457 $ 621 $ 13,078 Gain on sale of business, net of tax — — — Loss from discontinued operations, net of tax 4,154 447 4,601 Net income from continuing operations 16,611 1,068 17,679 Adjustments to reconcile net loss to cash provided by operating activities: Depreciation and amortization 5,054 — 5,054 Loss from equity method investments 119 — 119 Impairment of long-lived assets 46 — 46 Provision for doubtful accounts 48 — 48 Impairment of intangible assets and goodwill — — — Gains on foreign currency transactions 284 — 284 Deferred income taxes (52) 361 309 Gain on business acquisition (584) — (584) Stock-based compensation 3,392 — 3,392 Loss on disposition of property and equipment 44 — 44 Amortization of held-to-maturity investments 2,382 — 2,382 Changes in operating assets and liabilities: Accounts receivable (19,608) (112) (19,720) Unbilled receivables and retentions 4,667 (4,052) 615 Inventories (19,225) 2,409 (16,816) Income tax receivable — — — Prepaid expenses and other assets (1,484) — (1,484) Accounts payable 545 — 545 Other liabilities (233) 67 (166) Net cash provided by (used in) operating activities of continuing operations (7,994) (259) (8,253) Investing activities Acquisition of property and equipment (9,017) — (9,017) Equity method investments — — — Business acquisitions, net of tax (430) — (430) Proceeds from sale of business — — — Redemptions of held-to-maturity investments 121,522 — 121,522 Purchases of held-to-maturity investments (148,991) — (148,991) Redemptions of available-for-sale investments 400 — 400 Net cash provided by investing activities from continuing operations (36,516) — (36,516) Financing activities Principal payments of capital lease obligations (390) — (390) Tax withholding payment related to net settlement of equity awards (5) — (5) Exercise of stock options 3,865 — 3,865 Net cash provided by financing activities from continuing operations 3,470 — 3,470 Discontinued operations Operating activities of discontinued operations (2,505) 259 (2,246) Investing activities of discontinued operations (838) — (838) Financing activities of discontinued operations — — — Net cash (used in) provided by discontinued operations (3,343) 259 (3,084) Net increase in cash and cash equivalents (44,383) — (44,383) Cash and cash equivalents at beginning of period 124,287 — 124,287 Cash and cash equivalents at end of period $ 79,904 $ — $ 79,904 Supplemental disclosures of cash flow information Cash paid, net during the period for: Income taxes $ 1,804 — $ 1,804 Non-cash activities Unrealized gain on investments, net of deferred tax expense of $25 and $43 $ 74 — $ 74 Reclassification from share-based liability compensation to equity $ 307 — $ 307 Change in foreign currency translation adjustments $ — — $ — Acquisitions of property and equipment included in accounts payable $ 724 — $ 724 |
Organization and Significant _4
Organization and Significant Accounting Policies (Details) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Sales Revenue | Customer concentration | Agencies of U.S. Government | |||
Concentration risk (as a percent) | 58.00% | 58.00% | 65.00% |
Sales Revenue | Customer concentration | U.S. Army | |||
Concentration risk (as a percent) | 28.00% | 19.00% | 20.00% |
Accounts receivable balances | Credit concentration | Agencies of U.S. Government | |||
Concentration risk (as a percent) | 26.00% | 49.00% |
Organization and Significant _5
Organization and Significant Accounting Policies Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Accounts Receivable , Unbilled Receivables and Retentions | ||
Retentions | $ 1,102 | $ 1,411 |
Organization and Significant _6
Organization and Significant Accounting Policies Long-Lived Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2019 | Apr. 30, 2019 | |
UAS Quantix Solution | ||
Long-Lived Assets | ||
Impairment loss | $ 4,398,000 | |
Machinery and equipment | Minimum | ||
Long-Lived Assets | ||
Estimated useful life | 2 years | |
Machinery and equipment | Maximum | ||
Long-Lived Assets | ||
Estimated useful life | 7 years | |
Computer equipment and software | Minimum | ||
Long-Lived Assets | ||
Estimated useful life | 2 years | |
Computer equipment and software | Maximum | ||
Long-Lived Assets | ||
Estimated useful life | 5 years | |
Furniture and fixtures | Minimum | ||
Long-Lived Assets | ||
Estimated useful life | 3 years | |
Furniture and fixtures | Maximum | ||
Long-Lived Assets | ||
Estimated useful life | 7 years |
Organization and Significant _7
Organization and Significant Accounting Policies Accrued Sales Commission (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Other current liabilities | ||
Accrued liabilities | ||
Accrued sales commission | $ 1,301 | $ 1,293 |
Organization and Significant _8
Organization and Significant Accounting Policies Self-Insurance Liability (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Jan. 27, 2018 | Apr. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 |
Self-Insurance Liability | ||||||||
Estimated self-insurance liability of employee medical claim | $ 1,003,000 | $ 965,000 | $ 1,003,000 | |||||
Income Taxes | ||||||||
U.S. federal statutory income tax rate (as a percent) | 21.00% | 35.00% | 21.00% | 35.00% | 21.00% | 30.40% | 34.00% | |
Deferred tax expense | $ 3,100,000 | $ 3,300,000 | $ 3,300,000 |
Organization and Significant _9
Organization and Significant Accounting Policies Performance Obligations (Details) $ in Thousands | Apr. 30, 2019USD ($) |
Organization and Significant Accounting Policies | |
Remaining performance obligations | $ 164,326 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-30 | |
Organization and Significant Accounting Policies | |
Remaining performance obligations (as a percentage) | 92.00% |
Performance Obligations | |
Year of performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-30 | |
Organization and Significant Accounting Policies | |
Remaining performance obligations (as a percentage) | 7.00% |
Performance Obligations | |
Year of performance obligations | 1 year |
Organization and Significant_10
Organization and Significant Accounting Policies Contract Estimates (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2017 | Apr. 30, 2018 | |
Material adjustment to any one contract | $ 0 | $ 0 | |
Revision of estimate of total costs required to complete the contracts | Cumulative catch-up adjustment | |||
Amount of revised aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ 1,255,000 |
Organization and Significant_11
Organization and Significant Accounting Policies Revenue by Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 30, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Disaggregation of revenue | |||||||||||
Revenue | $ 87,930 | $ 75,322 | $ 72,979 | $ 78,043 | $ 113,629 | $ 54,633 | $ 65,801 | $ 34,361 | $ 314,274 | $ 268,424 | $ 233,105 |
Contract Liability | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 1,587 | 977 | 483 | ||||||||
Domestic | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 151,124 | 142,158 | 149,698 | ||||||||
International | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 163,150 | 126,266 | 83,407 | ||||||||
U.S. government | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 182,586 | 156,996 | 151,595 | ||||||||
Non-U.S. government | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 131,688 | 111,428 | 81,510 | ||||||||
FFP | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 224,090 | 212,976 | 177,506 | ||||||||
CPFF | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 89,485 | 55,203 | 54,052 | ||||||||
T&M | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 699 | 245 | 1,547 | ||||||||
Small UAS | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 183,157 | 167,534 | 145,760 | ||||||||
TMS | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 65,087 | 63,406 | 81,182 | ||||||||
HAPS | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 55,407 | 29,593 | 3 | ||||||||
Other | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | $ 10,623 | $ 7,891 | $ 6,160 |
Organization and Significant_12
Organization and Significant Accounting Policies Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Research and Development | |||
Revenue from customer funded research and development | $ 76,407 | $ 52,489 | $ 43,329 |
Cost of sales | 54,824 | 36,855 | 29,527 |
Research and Development With Federal Government | |||
Total estimated costs | 21,933 | ||
Funding | 11,225 | ||
Reimbursement amount | 10,708 | ||
Reimbursements under the contract | 5,936 | 4,188 | 233 |
Foreign currency transactions | |||
Foreign currency gain (loss) | (38) | 87 | (284) |
Lease Accounting | |||
Deferred rent liabilities | 1,173 | 1,536 | |
Advertising Costs | |||
Advertising expenses | 897 | 526 | 227 |
Numerator for basic earnings per share: | |||
Continuing operations attributable to AeroVironment | 41,912 | 21,750 | 17,701 |
Discontinued operations, net of tax | 5,526 | (3,887) | (4,601) |
Net income attributable to AeroVironment | $ 47,438 | $ 17,863 | $ 13,100 |
Denominator for basic (loss) earnings per share: | |||
Weighted-average common shares outstanding, excluding unvested restricted stock (in shares) | 23,663,410 | 23,471,241 | 23,059,045 |
Dilutive effect of employee stock options and unvested restricted stock (in shares) | 408,303 | 342,531 | 248,693 |
Denominator for diluted (loss) earnings per share (in shares) | 24,071,713 | 23,813,772 | 23,307,738 |
Number of shares reserved for issuance that are anti-dilutive | 18,000 | 22,000 | 86,000 |
Organization and Significant_13
Organization and Significant Accounting Policies Other - Recently Adopted Accounting Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | May 01, 2018 | Apr. 30, 2018 | |
Revenue recognition | |||
Retained earnings | $ 286,351 | $ 238,913 | |
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true | ||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | ||
Revenue, Practical Expedient, Initial Application and Transition, Completed Contract, Same Reporting Period [true false] | true | ||
Leases | |||
Lease, Practical Expedient, Use of Hindsight [true false] | true | ||
ASU 2014-09 | Effect of the Adoption of ASC Topic 606 | |||
Revenue recognition | |||
Retained earnings | $ 500 | ||
Retained earnings, continuing operations | $ 564 |
Discontinued Operations (Detail
Discontinued Operations (Details) | Feb. 22, 2019USD ($) | Jun. 29, 2018USD ($) | Apr. 30, 2019USD ($)contract | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) |
Discontinued operations | |||||
Amount of recall and other damages sought | $ 6,500,000 | ||||
Statement of operations | |||||
Net loss from discontinued operations | $ (2,964,000) | $ (3,887,000) | $ (4,601,000) | ||
Gain on sale of business, net of tax expense of $2,444 for the year ended April 30, 2019 | 8,490,000 | ||||
Tax expense | 2,444,000 | ||||
Net income (loss) from discontinued operations | 5,526,000 | (3,887,000) | (4,601,000) | ||
EES Business | Disposed of by sale | |||||
Discontinued operations | |||||
Cash consideration received | $ 31,994,000 | ||||
Gain on sale of business | $ 11,420,000 | (486,000) | |||
Working capital dispute | 1,085,000 | ||||
Amounts recorded in the consolidated financial statements | 0 | ||||
EES Business | Disposed of by sale | Other income (expense) | |||||
Statement of operations | |||||
Net Sales | 2,758,000 | ||||
EES Business | Discontinued Operations | |||||
Statement of operations | |||||
Net Sales | 4,256,000 | 38,411,000 | 36,201,000 | ||
Cost of sales | 5,097,000 | 33,384,000 | 29,983,000 | ||
Gross margin | (841,000) | 5,027,000 | 6,218,000 | ||
Selling, general and administrative | 1,515,000 | 7,825,000 | 8,895,000 | ||
Research and development | 1,072,000 | 3,526,000 | 4,577,000 | ||
Other (expense), net | (27,000) | ||||
Other income, net | 1,000 | 7,000 | |||
Loss from discontinued operations before income taxes | (3,427,000) | (6,351,000) | (7,247,000) | ||
Benefit for income taxes | (463,000) | (2,464,000) | (2,646,000) | ||
Net loss from discontinued operations | (2,964,000) | (3,887,000) | (4,601,000) | ||
Gain on sale of business, net of tax expense of $2,444 for the year ended April 30, 2019 | 8,490,000 | ||||
Tax expense | 2,444,000 | ||||
Net income (loss) from discontinued operations | 5,526,000 | $ (3,887,000) | $ (4,601,000) | ||
Holdback | Disposed of by sale | |||||
Discontinued operations | |||||
Cash consideration received | $ 6,500,000 | ||||
Number of remaining contracts | contract | 2 |
Discontinued Operations - Asset
Discontinued Operations - Assets and liabilities (Details) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,041,000 | $ 1,080,000 |
Total current assets classified as discontinued operations | 25,668,000 | |
Current liabilities: | ||
Total current liabilities | 9,294,000 | |
EES Business | Discontinued Operations | ||
Current assets: | ||
Accounts receivable, net of allowance for doubtful accounts of $139 at April 30, 2018 | 6,889,000 | |
Accounts receivable, allowance for doubtful accounts (in dollars) | 139,000 | |
Inventories, net | 15,494,000 | |
Prepaid expenses and other current assets | 185,000 | |
Property and equipment, current net | 3,100,000 | |
Total current assets classified as discontinued operations | 25,668,000 | |
Total assets classified as discontinued operations | 25,668,000 | |
Current liabilities: | ||
Accounts payable | 5,121,000 | |
Wages and related accruals | 1,946,000 | |
Customer advances | 1,028,000 | |
Other current liabilities | 1,199,000 | |
Total current liabilities | 9,294,000 | |
Total liabilities classified as discontinued operations | $ 9,294,000 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Short-term investments: | ||
Total held-to-maturity and short-term investments | $ 150,487 | $ 113,649 |
Long-term investments: | ||
Total long-term investments | 9,386 | 40,656 |
Held to maturity securities | ||
Short-term investments: | ||
Total held-to-maturity and short-term investments | 150,487 | 113,649 |
Long-term investments: | ||
Total long-term investments | 9,386 | 38,514 |
Held to maturity securities | Municipal securities | ||
Short-term investments: | ||
Total held-to-maturity and short-term investments | 5,332 | 35,344 |
Long-term investments: | ||
Total long-term investments | 2,046 | |
Held to maturity securities | U.S. government securities | ||
Short-term investments: | ||
Total held-to-maturity and short-term investments | 63,205 | 31,620 |
Long-term investments: | ||
Total long-term investments | 7,404 | 27,356 |
Held to maturity securities | Corporate bonds | ||
Short-term investments: | ||
Total held-to-maturity and short-term investments | 81,950 | 46,685 |
Long-term investments: | ||
Total long-term investments | $ 1,982 | 9,112 |
Available-for-sale securities | ||
Long-term investments: | ||
Total long-term investments | 2,142 | |
Available-for-sale securities | Auction rate securities | ||
Long-term investments: | ||
Total long-term investments | $ 2,142 |
Investments - Held-To-Maturity
Investments - Held-To-Maturity Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Held To Maturity Securities | ||
Amortized Cost | $ 159,873 | $ 152,163 |
Gross Unrealized Gains | 100 | 11 |
Gross Unrealized Losses | (58) | (474) |
Fair Value | 159,915 | 151,700 |
Municipal securities | ||
Held To Maturity Securities | ||
Amortized Cost | 5,332 | 37,390 |
Gross Unrealized Gains | 2 | 9 |
Gross Unrealized Losses | (1) | (36) |
Fair Value | 5,333 | 37,363 |
U.S. government securities | ||
Held To Maturity Securities | ||
Amortized Cost | 70,609 | 58,976 |
Gross Unrealized Gains | 78 | |
Gross Unrealized Losses | (52) | (367) |
Fair Value | 70,635 | 58,609 |
Corporate bonds | ||
Held To Maturity Securities | ||
Amortized Cost | 83,932 | 55,797 |
Gross Unrealized Gains | 20 | 2 |
Gross Unrealized Losses | (5) | (71) |
Fair Value | $ 83,947 | $ 55,728 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of the Held-to-Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Amortized cost of held-to-maturity securities by contractual maturity | ||
Due within one year | $ 150,487 | |
Due after one year through five years | 9,386 | |
Total | 159,873 | $ 152,163 |
Fair value of held-to-maturity securities by contractual maturity | ||
Due within one year | 150,498 | |
Due after one year through five years | 9,417 | |
Fair Value | $ 159,915 | $ 151,700 |
Investments - Auction rate secu
Investments - Auction rate securities (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2018USD ($)item | |
Available-For-Sale Securities | |
Amortized Cost | $ 2,250 |
Gross unrealized losses | (108) |
Fair value | $ 2,142 |
Auction rate securities | |
Investments | |
Number of available-for-sale securities | item | 2 |
Available For Sale Securities | |
Period for which the issuer of securities is not required to redeem the securities | 365 days |
Auction rate securities | Minimum | |
Available For Sale Securities | |
Maturity period of available-for-sale securities | 1 year |
Pre-determined interval to reset interest rates to current rates | 30 days |
Auction rate securities | Maximum | |
Available For Sale Securities | |
Maturity period of available-for-sale securities | 16 years |
Pre-determined interval to reset interest rates to current rates | 35 days |
Fair Value Measurements Reconci
Fair Value Measurements Reconciliation (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2019USD ($) | |
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis | |
Balance at the beginning of the period | $ 2,142 |
Total gains (realized or unrealized) included in other comprehensive income | 108 |
Purchases, issuances and settlements, net | $ (2,250) |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Inventories, net | ||
Raw materials | $ 16,792 | $ 12,020 |
Work in process | 19,162 | 14,780 |
Finished goods | 25,926 | 14,578 |
Inventories, gross | 61,880 | 41,378 |
Reserve for inventory excess and obsolescence | (7,824) | (3,953) |
Inventories, net | $ 54,056 | $ 37,425 |
Intangibles (Details)
Intangibles (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Intangibles | |||
Intangibles, net | $ 459,000 | ||
Amortization expense | $ 357,000 | $ 296,000 | $ 139,000 |
Weighted average | |||
Intangibles | |||
Weighted average amortization period | 1 year | 3 years | |
Other assets, long term | |||
Intangibles | |||
Intangibles, gross | $ 1,770,000 | $ 1,582,000 | |
Less accumulated amortization | (1,311,000) | (954,000) | |
Intangibles, net | 459,000 | 628,000 | |
Licenses | Other assets, long term | |||
Intangibles | |||
Intangibles, gross | 1,006,000 | 818,000 | |
Customer relationships | Other assets, long term | |||
Intangibles | |||
Intangibles, gross | 733,000 | 733,000 | |
Trademarks and tradenames | Other assets, long term | |||
Intangibles | |||
Intangibles, gross | 28,000 | 28,000 | |
Other | Other assets, long term | |||
Intangibles | |||
Intangibles, gross | $ 3,000 | $ 3,000 |
Intangibles Estimated Amortizat
Intangibles Estimated Amortization Expense (Details) $ in Thousands | Apr. 30, 2019USD ($) |
Estimated amortization expense | |
2020 | $ 360 |
2021 | 98 |
2022 | 1 |
Intangibles, net | $ 459 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Property and equipment, net | ||
Property and equipment, gross | $ 92,368 | $ 88,266 |
Less accumulated depreciation and amortization | (75,463) | (69,047) |
Property and equipment, net | 16,905 | 19,219 |
Leasehold improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 12,324 | 10,541 |
Machinery and equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 40,432 | 40,377 |
Furniture and fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 2,145 | 2,094 |
Computer equipment and software | ||
Property and equipment, net | ||
Property and equipment, gross | 35,056 | 31,895 |
Construction in process | ||
Property and equipment, net | ||
Property and equipment, gross | $ 2,411 | $ 3,359 |
Property and Equipment, net Oth
Property and Equipment, net Other (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Depreciation expense | $ 7,311,000 | $ 5,676,000 | $ 4,939,000 | |
Computer equipment and software | ||||
Depreciation expense | 135,000 | 201,000 | ||
Property and equipment under capital lease, cost | $ 1,836,000 | 1,836,000 | 1,836,000 | |
Accumulated depreciation of asset under capital lease | 1,822,000 | $ 1,822,000 | $ 1,687,000 | |
UAS Quantix Solution | ||||
Impairment loss | $ 4,398,000 |
Investments in Companies Acco_2
Investments in Companies Accounted for Using the Equity Method (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 29, 2017USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2020 | May 10, 2019JPY (¥) | May 10, 2019USD ($) | Feb. 09, 2019JPY (¥) | Feb. 09, 2019USD ($) | Feb. 08, 2019 | Jan. 29, 2019JPY (¥) | Jan. 29, 2019USD ($) | Apr. 17, 2018JPY (¥) | Apr. 17, 2018USD ($) | Dec. 31, 2017 | Dec. 27, 2017JPY (¥) | Dec. 27, 2017USD ($) | |
Equity Method Investments | |||||||||||||||||
Equity method investment loss, net of tax | $ (1,283,000) | $ (3,944,000) | $ (1,283,000) | $ (119,000) | |||||||||||||
SoftBank | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Ownership percentage | 90.00% | ||||||||||||||||
Payments for purchase of interest | ¥ 209,500,000 | $ 1,926,000 | ¥ 150,000,000 | $ 1,407,000 | |||||||||||||
HAPSMobile | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Ownership percentage | 10.00% | 5.00% | 10.00% | 10.00% | 10.00% | 10.00% | 5.00% | 10.00% | |||||||||
Payments for purchase of interest | ¥ 210,000,000 | $ 1,860,000 | |||||||||||||||
HAPSMobile | Equity method investment loss, net of tax | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Equity method investment loss, net of tax | $ 3,944,000 | 1,283,000 | |||||||||||||||
HAPSMobile | Other assets, long term | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Carrying value of investment | $ 5,612,000 | $ 2,020,000 | |||||||||||||||
HAPSMobile | SoftBank | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Payments for purchase of interest | ¥ 500,000,000 | $ 4,569,000 | ¥ 632,800,000 | $ 5,671,000 |
Investments in Companies Acco_3
Investments in Companies Accounted for Using the Equity Method - Altoy (Details) - USD ($) $ in Thousands | Feb. 01, 2017 | Jul. 29, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Mar. 31, 2014 |
Equity Method Investments | ||||||
Entity's share of net loss | $ (1,283) | $ (3,944) | $ (1,283) | $ (119) | ||
Altoy | ||||||
Equity Method Investments | ||||||
Total ownership interest | 85.00% | |||||
Altoy | ||||||
Equity Method Investments | ||||||
Ownership percentage | 49.00% | |||||
Ownership interest acquired | 36.00% | |||||
Cash | $ 625 | |||||
Altoy | Other income (expense) | ||||||
Equity Method Investments | ||||||
Entity's share of net loss | $ (119) |
Warranty Reserves (Details)
Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Warranty Reserves | ||
Beginning balance | $ 2,090 | $ 1,947 |
Warranty expense | 211 | 1,884 |
Changes in estimates related to pre-existing warranties | 491 | |
Warranty costs settled | (1,088) | (1,741) |
Ending balance | $ 1,704 | $ 2,090 |
Warranty Reserves Estimated Cos
Warranty Reserves Estimated Cost (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2017 | |
Warranty Reserves | ||
Standard Product Warranty Accrual, Preexisting, Increase (Decrease) | $ 491,000 | |
Product Warranty Expense | 240,000 | |
UAS | ||
Warranty Reserves | ||
Product Warranty Expense | $ 251,000 | |
UAS | Warranty reserve. | ||
Warranty Reserves | ||
Standard Product Warranty Accrual, Preexisting, Increase (Decrease) | $ 491,000 |
Employee Savings Plan (Details)
Employee Savings Plan (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Employee Savings Plan | |||
Amount of expense in contribution to the plan | $ 3,961,000 | $ 2,953,000 | $ 2,603,000 |
Severance Charges (Details)
Severance Charges (Details) | 12 Months Ended |
Apr. 30, 2017USD ($) | |
Severance Charges | |
Severance costs | $ 1,262,000 |
Accrued wages and related accruals | 127,000 |
Officer | |
Severance Charges | |
Severance costs | 850,000 |
Cost of sales | |
Severance Charges | |
Severance costs | 555,000 |
SG&A | |
Severance Charges | |
Severance costs | $ 707,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Stock Based Compensation | |||
Stock based compensation expense | $ 6,985,000 | $ 4,956,000 | $ 3,392,000 |
Restated 2006 Plan | |||
Stock Based Compensation | |||
Maximum number of shares that may be granted to one participant during any twelve month period | 2,000,000 | ||
Maximum amount that may be paid in cash as a performance-based award to one participant during any twelve month period | $ 5,000,000 | ||
Restated 2006 Plan | Maximum | |||
Stock Based Compensation | |||
Number of shares authorized to be issued pursuant to awards | 4,884,157 | ||
Restated 2006 Plan | Incentive stock options | Minimum | |||
Stock Based Compensation | |||
Percentage of the fair market value on date of grant | 100.00% | ||
2002 Plan | Stock options | |||
Stock Based Compensation | |||
Exercisable period from grant date | 5 years | ||
Number of awards that may be granted | 0 | ||
1992 Plan | Stock options | |||
Stock Based Compensation | |||
Exercisable period from grant date | 5 years | ||
Fiscal 2018 LTIP | Performance based restricted stock units | |||
Stock Based Compensation | |||
Stock based compensation expense | $ 588,000 | 269,000 | |
Fiscal 2018 LTIP | Performance based restricted stock units | Maximum | |||
Stock Based Compensation | |||
Stock based compensation expense | 2,275,000 | ||
Fiscal 2017 LTIP | Performance based restricted stock units | |||
Stock Based Compensation | |||
Stock based compensation expense | $ 301,000 | $ 159,000 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Shares | |||
Options granted (in shares) | 0 | 0 | 0 |
Stock options | |||
Intrinsic value of options | |||
Intrinsic value of options exercised | $ 371 | $ 2,407 | $ 1,747 |
Intrinsic value of options outstanding | 15,569 | 10,890 | |
Intrinsic value of exercisable options | $ 13,950 | $ 8,587 | |
Restated 2006 Plan | Stock options | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 339,026 | 446,624 | 678,799 |
Options exercised (in shares) | (2,000) | (107,598) | (167,310) |
Options canceled (in shares) | (64,865) | ||
Outstanding at the end of the year (in shares) | 337,026 | 339,026 | 446,624 |
Options exercisable (in shares) | 297,516 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the year (in dollars per share) | $ 25.29 | $ 24.93 | $ 24.46 |
Options exercised (in dollars per share) | 32.19 | 23.80 | 22.32 |
Options canceled (in dollars per share) | 26.76 | ||
Outstanding at the end of the year (in dollars per share) | 25.25 | $ 25.29 | $ 24.93 |
Options exercisable (in dollars per share) | $ 24.94 | ||
2002 Plan | Stock options | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 13,824 | ||
Options exercised (in shares) | (9,601) | ||
Options canceled (in shares) | (4,223) | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the year (in dollars per share) | $ 11.79 | ||
Options exercised (in dollars per share) | 11.79 | ||
Options canceled (in dollars per share) | $ 11.79 | ||
1992 Plan | Stock options | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 18,302 | 43,415 | 68,604 |
Options exercised (in shares) | (4,000) | (25,113) | (25,189) |
Outstanding at the end of the year (in shares) | 14,302 | 18,302 | 43,415 |
Options exercisable (in shares) | 14,302 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the year (in dollars per share) | $ 0.59 | $ 0.59 | $ 0.59 |
Options exercised (in dollars per share) | 0.59 | 0.59 | 0.59 |
Outstanding at the end of the year (in dollars per share) | 0.59 | $ 0.59 | $ 0.59 |
Options exercisable (in dollars per share) | $ 0.59 |
Stock-Based Compensation Non-Ve
Stock-Based Compensation Non-Vested Stock Options (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Options | |||
Options granted (in shares) | 0 | 0 | 0 |
Weighted Average Grant Date Fair value | |||
Unrecognized compensation cost related to non-vested stock awards | $ 6,214,000 | ||
Period over which unrecognized compensation cost is expected to be recognized | 2 years | ||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 1 year 10 months 24 days | ||
Exercise of stock options | $ 71,000 | $ 2,705,000 | $ 3,865,000 |
Excess tax benefit from stock-based compensation | $ 0 | $ 0 | 0 |
Stock options | |||
Options | |||
Non-vested at beginning of year (in shares) | 83,014 | ||
Vested (in shares) | (43,504) | ||
Non-vested at end of year (in shares) | 39,510 | 83,014 | |
Weighted Average Grant Date Fair value | |||
Non-vested at beginning of year (in dollars per share) | $ 10.97 | ||
Vested (in dollars per share) | 11.03 | ||
Non-vested at end of year (in dollars per share) | $ 10.90 | $ 10.97 | |
Exercise of stock options | $ 67,000 | $ 2,576,000 | 3,863,000 |
Fair value of shares vested | $ 4,756,000 | $ 3,328,000 | $ 2,942,000 |
Stock-Based Compensation Other
Stock-Based Compensation Other (Details) | 12 Months Ended |
Apr. 30, 2019$ / sharesshares | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | $ 0.59 |
Range of Exercise Price, high end of range (in dollars per share) | $ 31.27 |
Options Outstanding | |
Number of Options (in shares) | shares | 351,328 |
Weighted Average Remaining Contractual Life In Years | 4 years 4 months 2 days |
Weighted Average Exercise Price (in dollars per share) | $ 24.24 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 311,818 |
Weighted Average Exercise Price (in dollars per share) | $ 23.82 |
Weighted Average Remaining Contractual Life | 4 years 1 month 17 days |
0.59 - 19.16 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | $ 0.59 |
Range of Exercise Price, high end of range (in dollars per share) | $ 19.16 |
Options Outstanding | |
Number of Options (in shares) | shares | 68,302 |
Weighted Average Remaining Contractual Life In Years | 3 years 4 months 10 days |
Weighted Average Exercise Price (in dollars per share) | $ 14.56 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 68,302 |
Weighted Average Exercise Price (in dollars per share) | $ 14.56 |
19.17 - 26.24 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 19.17 |
Range of Exercise Price, high end of range (in dollars per share) | $ 26.24 |
Options Outstanding | |
Number of Options (in shares) | shares | 58,500 |
Weighted Average Remaining Contractual Life In Years | 3 years 10 months 10 days |
Weighted Average Exercise Price (in dollars per share) | $ 20.54 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 58,500 |
Weighted Average Exercise Price (in dollars per share) | $ 20.54 |
26.25 - 26.99 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 26.25 |
Range of Exercise Price, high end of range (in dollars per share) | $ 26.99 |
Options Outstanding | |
Number of Options (in shares) | shares | 80,000 |
Weighted Average Remaining Contractual Life In Years | 6 years 1 month 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 26.70 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 48,000 |
Weighted Average Exercise Price (in dollars per share) | $ 26.70 |
27.00 - 27.99 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 27 |
Range of Exercise Price, high end of range (in dollars per share) | $ 27.99 |
Options Outstanding | |
Number of Options (in shares) | shares | 50,000 |
Weighted Average Remaining Contractual Life In Years | 4 years 6 months 22 days |
Weighted Average Exercise Price (in dollars per share) | $ 27.27 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 50,000 |
Weighted Average Exercise Price (in dollars per share) | $ 27.27 |
28.00 - 32.19 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 28 |
Range of Exercise Price, high end of range (in dollars per share) | $ 31.27 |
Options Outstanding | |
Number of Options (in shares) | shares | 94,526 |
Weighted Average Remaining Contractual Life In Years | 3 years 8 months 5 days |
Weighted Average Exercise Price (in dollars per share) | $ 29.85 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 87,016 |
Weighted Average Exercise Price (in dollars per share) | $ 29.73 |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Awards (Details) - Restricted stock awards shares in Thousands | 12 Months Ended |
Apr. 30, 2019$ / sharesshares | |
Shares | |
Unvested stock at beginning of year (in shares) | shares | 341,911 |
Stock granted (in shares) | shares | 57,476 |
Stock vested (in shares) | shares | (163,839) |
Stock canceled (in shares) | shares | (9,389) |
Unvested stock at end of year (in shares) | shares | 226,159 |
Weighted Average Grant Date Fair Value | |
Unvested stock at beginning of year (in dollars per share) | $ / shares | $ 31.13 |
Stock granted (in dollars per shares) | $ / shares | 74.05 |
Stock vested (in dollars per shares) | $ / shares | 29.03 |
Stock canceled (in dollars per shares) | $ / shares | 36.19 |
Unvested stock at end of year (in dollars per share) | $ / shares | $ 43.35 |
Long-Term Incentive Awards (Det
Long-Term Incentive Awards (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jul. 28, 2018 | Jul. 29, 2017 | Apr. 30, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Stock Based Compensation | ||||||
Stock based compensation expense | $ 6,985,000 | $ 4,956,000 | $ 3,392,000 | |||
LTIP | ||||||
Stock Based Compensation | ||||||
Stock based compensation expense | 1,889,000 | 428,000 | ||||
Fiscal 2019 LTIP | Performance based restricted stock units | ||||||
Stock Based Compensation | ||||||
Stock based compensation expense | 572,000 | |||||
Fiscal 2019 LTIP | Performance based restricted stock units | 100% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 100.00% | |||||
Fiscal 2019 LTIP | Performance based restricted stock units | 50% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 50.00% | |||||
Fiscal 2019 LTIP | Performance based restricted stock units | 200% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 200.00% | |||||
Fiscal 2019 LTIP | Performance based restricted stock units | Maximum | ||||||
Stock Based Compensation | ||||||
Stock based compensation expense | 3,033,000 | |||||
Fiscal 2018 LTIP | Performance based restricted stock units | ||||||
Stock Based Compensation | ||||||
Stock based compensation expense | 588,000 | 269,000 | ||||
Fiscal 2018 LTIP | Performance based restricted stock units | 100% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 100.00% | |||||
Fiscal 2018 LTIP | Performance based restricted stock units | 50% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 50.00% | |||||
Fiscal 2018 LTIP | Performance based restricted stock units | 200% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 200.00% | |||||
Fiscal 2018 LTIP | Performance based restricted stock units | Maximum | ||||||
Stock Based Compensation | ||||||
Stock based compensation expense | 2,275,000 | |||||
Fiscal 2017 LTIP | Performance based restricted stock units | ||||||
Stock Based Compensation | ||||||
Stock based compensation expense | $ 301,000 | $ 159,000 | ||||
Issue of fully-vested shares of common stock to settle | 14,814 | |||||
Fiscal 2017 LTIP | Performance based restricted stock units | 100% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 100.00% | |||||
Fiscal 2017 LTIP | Performance based restricted stock units | 50% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 50.00% | |||||
Fiscal 2017 LTIP | Performance based restricted stock units | 200% Vested | ||||||
Stock Based Compensation | ||||||
Vesting (as a percentage) | 200.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 29, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Taxes | ||||
Domestic | $ 32,651,000 | $ 50,644,000 | $ 22,642,000 | |
Foreign | (34,000) | (166,000) | (86,000) | |
Income from continuing operations before income taxes | 32,617,000 | 50,478,000 | $ 32,617,000 | 22,556,000 |
Equity method investment loss, net of tax | (1,283,000) | (3,944,000) | $ (1,283,000) | (119,000) |
Income (loss) before income taxes | $ 31,334,000 | 46,534,000 | $ 22,437,000 | |
Deferred tax liabilities for income taxes on undistributed earnings | $ 0 |
Income Taxes Reconciliation (De
Income Taxes Reconciliation (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Apr. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 |
Income Taxes | |||||||
U.S. federal statutory income tax rate (as a percent) | 21.00% | 35.00% | 21.00% | 35.00% | 21.00% | 30.40% | 34.00% |
State and local income taxes, net of federal benefit (as a percent) | (2.20%) | (2.20%) | (1.70%) | ||||
R&D and other tax credits (as a percent) | (8.10%) | (7.00%) | (10.80%) | ||||
Valuation allowance (as a percent) | 3.70% | 4.90% | 3.80% | ||||
Foreign rate differential | 0.10% | ||||||
Return to provision adjustments (as a percent) | (0.30%) | (0.10%) | (0.30%) | ||||
Permanent items (as a percent) | 0.80% | (2.70%) | (2.30%) | ||||
Foreign derived intangible income (as a percent) | (3.70%) | ||||||
Excess benefit of stock options (as a percent) | (3.10%) | (4.40%) | (1.00%) | ||||
Tax Act (as a percent) | 10.40% | ||||||
Other (as a percent) | 1.10% | 0.60% | (0.60%) | ||||
Effective income tax rate (as a percent) | 9.20% | 30.00% | 21.10% | ||||
Current: | |||||||
Federal | $ 1,953 | $ 6,010 | $ 4,336 | ||||
State | 228 | 900 | 243 | ||||
Current | 2,181 | 6,910 | 4,579 | ||||
Deferred: | |||||||
Federal | 1,945 | 3,272 | (66) | ||||
State | 551 | (330) | 280 | ||||
Foreign | (36) | (52) | (35) | ||||
Deferred | 2,460 | 2,890 | 179 | ||||
Total income tax expense (benefit) | 4,641 | 9,800 | $ 4,758 | ||||
Deferred income tax assets: | |||||||
Accrued expenses | $ 5,771 | 5,206 | 5,771 | ||||
Allowances, reserves, and other | 2,100 | 2,729 | 2,100 | ||||
Unrealized loss on securities | 25 | 25 | |||||
Net operating loss and credit carry-forwards | 12,361 | 13,208 | 12,361 | ||||
Intangibles basis | 94 | 125 | 94 | ||||
Total deferred income tax assets | 20,351 | 21,268 | 20,351 | ||||
Deferred income tax liabilities: | |||||||
Fixed asset basis | (682) | (425) | (682) | ||||
Revenue recognition | 326 | (2,909) | 326 | ||||
Total deferred income tax liabilities | (356) | (3,334) | (356) | ||||
Valuation allowance | (8,568) | (11,278) | (8,568) | ||||
Net deferred tax assets | $ 11,427 | $ 6,656 | $ 11,427 |
Income Taxes Carryforward (Deta
Income Taxes Carryforward (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Tax Credit Carryforward | ||
Increase in valuation allowance | $ 2,710,000 | $ 3,152,000 |
State | ||
Tax Credit Carryforward | ||
Tax credit carryforwards | 23,832,000 | |
IRS | ||
Tax Credit Carryforward | ||
Tax credit carryforwards | $ 4,727,000 |
Income Taxes Other (Details)
Income Taxes Other (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Unrecognized tax benefits | ||
State net operating loss carryforwards | $ 10,000 | |
Foreign net operating loss carryforwards | 205,000 | |
Foreign net operating losses subject to expiration | 73,000 | |
Activity related to gross unrecognized tax benefits | ||
Beginning balance | 11,170,000 | $ 9,856,000 |
Increases related to prior year tax positions | 216,000 | 228,000 |
Increases related to current year tax positions | 1,756,000 | 1,347,000 |
Decreases related to lapsing of statute of limitations | (549,000) | (261,000) |
Ending balance | 12,593,000 | 11,170,000 |
Reversal of uncertain tax position reserve, including interest | 549,000 | |
Accrued interest and penalties related to unrecognized tax positions | 18,000 | $ 16,000 |
Statute of limitations expiration | ||
Unrecognized tax benefits | ||
Estimated decrease in unrecognized tax benefits in the next twelve months | $ (224,000) |
Income Taxes - Tax Cuts and Job
Income Taxes - Tax Cuts and Jobs Act (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Jan. 27, 2018 | Apr. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 |
Income Taxes | ||||||||
U.S. federal statutory income tax rate (as a percent) | 21.00% | 35.00% | 21.00% | 35.00% | 21.00% | 30.40% | 34.00% | |
Deferred tax expense | $ 3,100,000 | $ 3,300,000 | $ 3,300,000 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Accumulated other comprehensive loss | |||
Balance, net of $76 of taxes, as of April 30, 2018 | $ (21) | ||
Balance, net of $0 of taxes, as of January 26, 2019 | 2 | $ (21) | |
Unrealized gain, tax portion | 51 | 25 | $ 43 |
Other comprehensive income, tax | 0 | ||
Available-For-Sale Securities. | |||
Accumulated other comprehensive loss | |||
Balance, net of $76 of taxes, as of April 30, 2018 | (57) | ||
Unrealized gains, net of $51 of taxes | 57 | ||
Balance, net of $0 of taxes, as of January 26, 2019 | (57) | ||
Foreign Currency Translation Adjustments | |||
Accumulated other comprehensive loss | |||
Balance, net of $76 of taxes, as of April 30, 2018 | 36 | ||
Change in foreign currency translation adjustments, net of $0 taxes | (34) | ||
Balance, net of $0 of taxes, as of January 26, 2019 | 2 | 36 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive loss | |||
Balance, net of $76 of taxes, as of April 30, 2018 | (21) | ||
Change in foreign currency translation adjustments, net of $0 taxes | (34) | ||
Unrealized gains, net of $51 of taxes | 57 | ||
Balance, net of $0 of taxes, as of January 26, 2019 | $ 2 | $ (21) |
Changes in Accounting Estimat_2
Changes in Accounting Estimates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jul. 29, 2017 | Apr. 30, 2019 | Apr. 30, 2017 | Apr. 30, 2018 | |
Income from continuing operations | $ 31,334 | $ 46,534 | $ 22,437 | |
Revision of estimate of total costs required to complete the contracts | Cumulative catch-up adjustment | ||||
Amount of revised aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ 1,255 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |||||||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2020 | May 10, 2019 | Feb. 09, 2019 | Feb. 08, 2019 | Dec. 31, 2017 | |
Long-Term Incentive Awards | ||||||||
Revenue | $ 55,407,000 | $ 29,594,000 | ||||||
Unbilled related party receivables | 9,028,000 | 3,145,000 | ||||||
Design and Development Agreement | ||||||||
Long-Term Incentive Awards | ||||||||
Maximum net value | 133,360,000 | |||||||
Revenue | 55,407,000 | 29,594,000 | ||||||
Board member | Consulting agreement | ||||||||
Long-Term Incentive Awards | ||||||||
Amount paid to related party | $ 55,000 | 48,000 | $ 80,000 | |||||
HAPSMobile | ||||||||
Long-Term Incentive Awards | ||||||||
Ownership percentage | 10.00% | 5.00% | 10.00% | 10.00% | 5.00% | 10.00% | ||
Unbilled receivables and retention | HAPSMobile | ||||||||
Long-Term Incentive Awards | ||||||||
Unbilled related party receivables | $ 9,028,000 | $ 3,145,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Future minimum lease payments under noncancelable operating leases | |||
2020 | $ 5,298,000 | ||
2021 | 3,527,000 | ||
2022 | 2,723,000 | ||
2023 | 1,554,000 | ||
2024 | 953,000 | ||
Total | 14,055,000 | ||
Rental expense under operating leases | 4,609,000 | $ 4,011,000 | $ 3,849,000 |
Letters of credit outstanding | 7,079,000 | 6,389,000 | |
Reserve for incurred cost claim audits | $ 93,000 | $ 77,000 |
Business Acquisitions (Details)
Business Acquisitions (Details) - Altoy - USD ($) $ in Thousands | Feb. 01, 2017 | Apr. 30, 2017 | Apr. 30, 2019 | Apr. 30, 2017 | Apr. 30, 2016 | Jan. 31, 2017 |
Business Acquisitions | ||||||
Ownership interest acquired | 36.00% | |||||
Ownership percentage | 85.00% | 49.00% | ||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | ||||||
Goodwill | $ 122 | |||||
Deferred tax liabilities | (332) | |||||
Other assets and liabilities assumed | 286 | |||||
Total net identified assets acquired | 1,736 | |||||
Fair value of consideration transferred: | ||||||
Cash | 625 | |||||
Fair value of the Company's investment in Altoy prior to the acquisition | 851 | |||||
Fair value of the noncontrolling interest in Altoy | 260 | |||||
Cash consideration received | 1,736 | |||||
Supplemental Pro forma Information | ||||||
Revenue | $ 0 | $ 229,287 | $ 233,941 | |||
Net income from continuing operations | $ 122 | 15,808 | 15,595 | |||
Net income attributable to AeroVironment | $ 15,888 | $ 15,666 | ||||
Other income (expense) | ||||||
Fair value of consideration transferred: | ||||||
Gain recognized | 584 | |||||
SG&A | ||||||
Supplemental Pro forma Information | ||||||
Acquisition-related costs | $ 74 | |||||
Customer relationships | ||||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | ||||||
Intangible assets | 1,600 | |||||
Trademark and trade names | ||||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | ||||||
Intangible assets | $ 60 |
Geographic Information (Details
Geographic Information (Details) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Non-U.S. customers | |||
Product Information | |||
Percentage of revenue | 52.00% | 47.00% | 36.00% |
Impact of Adoption of New Acc_3
Impact of Adoption of New Accounting Standards - Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 172,708 | $ 143,517 | ||
Short-term investments | 150,487 | 113,649 | ||
Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018 | 31,051 | 56,813 | ||
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018) | 53,047 | 16,872 | ||
Inventories, net | 54,056 | 37,425 | ||
Prepaid expenses and other current assets | 7,418 | 5,103 | ||
Current assets of discontinued operations | 25,668 | |||
Total current assets | 469,588 | 399,047 | ||
Long-term investments | 9,386 | 40,656 | ||
Property and equipment, net | 16,905 | 19,219 | ||
Deferred income taxes | 6,685 | 11,494 | ||
Other assets | 6,280 | 3,002 | ||
Total assets | 508,844 | 473,418 | ||
Current liabilities: | ||||
Accounts payable | 15,972 | 21,340 | ||
Wages and related accruals | 18,507 | 16,851 | ||
Income taxes payable | 4,085 | |||
Customer advances | 2,962 | 3,564 | ||
Other current liabilities | 7,425 | 6,954 | ||
Current liabilities of discontinued operations | 9,294 | |||
Total current liabilities | 44,866 | 62,088 | ||
Deferred rent | 1,173 | 1,536 | ||
Other non-current liabilities | 150 | 622 | ||
Deferred tax liability | 29 | 67 | ||
Liability for uncertain tax positions | 51 | 49 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Authorized shares—10,000,000; none issued or outstanding at April 30, 2018 | ||||
Issued and outstanding shares—23,908,736 at April 30, 2018 | 2 | 2 | ||
Additional paid-in capital | 176,216 | 170,139 | ||
Accumulated other comprehensive loss | 2 | (21) | ||
Retained earnings | 286,351 | 238,913 | ||
Total AeroVironment stockholders' equity | 462,571 | 409,033 | ||
Noncontrolling interest | 4 | 23 | ||
Total equity | 462,575 | 409,056 | $ 383,314 | $ 361,260 |
Total liabilities and stockholders' equity | $ 508,844 | 473,418 | ||
ASU 2014-09 | As Reported. | ||||
Current assets: | ||||
Cash and cash equivalents | 143,517 | |||
Short-term investments | 113,649 | |||
Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018 | 56,813 | |||
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018) | 13,076 | |||
Inventories, net | 38,640 | |||
Prepaid expenses and other current assets | 5,103 | |||
Current assets of discontinued operations | 28,349 | |||
Total current assets | 399,147 | |||
Long-term investments | 40,656 | |||
Property and equipment, net | 19,219 | |||
Deferred income taxes | 11,168 | |||
Other assets | 2,721 | |||
Total assets | 472,911 | |||
Current liabilities: | ||||
Accounts payable | 21,340 | |||
Wages and related accruals | 16,851 | |||
Income taxes payable | 4,085 | |||
Customer advances | 2,145 | |||
Other current liabilities | 6,892 | |||
Current liabilities of discontinued operations | 9,184 | |||
Total current liabilities | 60,497 | |||
Deferred rent | 1,536 | |||
Other non-current liabilities | 622 | |||
Deferred tax liability | 67 | |||
Liability for uncertain tax positions | 49 | |||
Stockholders' equity: | ||||
Issued and outstanding shares—23,908,736 at April 30, 2018 | 2 | |||
Additional paid-in capital | 170,139 | |||
Accumulated other comprehensive loss | (21) | |||
Retained earnings | 239,997 | |||
Total AeroVironment stockholders' equity | 410,117 | |||
Noncontrolling interest | 23 | |||
Total equity | 410,140 | |||
Total liabilities and stockholders' equity | 472,911 | |||
ASU 2014-09 | Adjustment | ||||
Current assets: | ||||
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018) | 3,796 | |||
Inventories, net | (1,215) | |||
Current assets of discontinued operations | (2,681) | |||
Total current assets | (100) | |||
Deferred income taxes | 326 | |||
Other assets | 281 | |||
Total assets | 507 | |||
Current liabilities: | ||||
Customer advances | 1,419 | |||
Other current liabilities | 62 | |||
Current liabilities of discontinued operations | 110 | |||
Total current liabilities | 1,591 | |||
Stockholders' equity: | ||||
Retained earnings | (1,084) | |||
Total AeroVironment stockholders' equity | (1,084) | |||
Total equity | (1,084) | |||
Total liabilities and stockholders' equity | $ 507 |
Impact of Adoption of New Acc_4
Impact of Adoption of New Accounting Standards - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,041 | $ 1,080 |
Due from Related Parties | $ 9,028 | $ 3,145 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, Authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, Authorized shares | 100,000,000 | 100,000,000 |
Common stock, Issued shares | 23,946,293 | 23,908,736 |
Common stock, outstanding shares | 23,946,293 | 23,908,736 |
Impact of Adoption of New Acc_5
Impact of Adoption of New Accounting Standards - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 30, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2015 | |
Revenue: | ||||||||||||
Revenue | $ 87,930 | $ 75,322 | $ 72,979 | $ 78,043 | $ 113,629 | $ 54,633 | $ 65,801 | $ 34,361 | $ 314,274 | $ 268,424 | $ 233,105 | |
Cost of sales: | ||||||||||||
Cost of sales | 185,871 | 160,739 | 136,232 | |||||||||
Gross margin: | ||||||||||||
Total gross margin | $ 37,023 | $ 30,392 | $ 28,399 | 32,589 | $ 50,594 | $ 18,250 | $ 30,143 | $ 8,698 | 128,403 | 107,685 | 96,873 | |
Selling, general and administrative | 60,343 | 50,826 | 47,642 | |||||||||
Research and development | 34,234 | 26,433 | 28,465 | |||||||||
Income from continuing operations | 33,826 | 30,426 | 20,766 | |||||||||
Other income (expense): | ||||||||||||
Interest income, net | 4,672 | 2,240 | 1,618 | |||||||||
Other expense, net | 11,980 | (49) | 172 | |||||||||
Income from continuing operations before income taxes | 32,617 | 50,478 | 32,617 | 22,556 | ||||||||
Provision for income taxes | 4,641 | 9,800 | 4,758 | |||||||||
Equity method investment loss, net of tax | $ (1,283) | (3,944) | (1,283) | (119) | ||||||||
Net income from continuing operations | 41,893 | 21,534 | 17,679 | |||||||||
Discontinued operations: | ||||||||||||
Gain on sale of business, net of tax | 8,490 | |||||||||||
Income (loss) from discontinued operations, net of tax | (2,964) | (3,887) | (4,601) | |||||||||
Net income (loss) from discontinued operations | 5,526 | (3,887) | (4,601) | |||||||||
Net income | 47,419 | 17,647 | 13,078 | $ 13,078 | ||||||||
Net loss attributable to noncontrolling interest | 19 | 216 | 22 | |||||||||
Net income attributable to AeroVironment | $ 47,438 | $ 17,863 | $ 13,100 | |||||||||
Net income (loss) per share attributable to AeroVironment—Basic | ||||||||||||
Basic, continuing (in dollars per share) | $ 0.26 | $ 0.35 | $ 0.30 | $ 0.86 | $ 0.80 | $ (0.02) | $ 0.33 | $ (0.19) | $ 1.77 | $ 0.93 | $ 0.77 | |
Basic, discontinuing (in dollars per share) | 0.23 | (0.17) | (0.20) | |||||||||
Net income per share attributable to AeroVironment - Basic (in dollars per share) | 2 | 0.76 | 0.57 | |||||||||
Net income (loss) per share attributable to AeroVironment—Diluted | ||||||||||||
Diluted, continuing (in dollars per share) | $ 0.26 | $ 0.35 | $ 0.29 | $ 0.85 | $ 0.79 | $ (0.02) | $ 0.32 | $ (0.19) | 1.74 | 0.91 | 0.76 | |
Diluted, discontinued (in dollars per share) | 0.23 | (0.16) | (0.20) | |||||||||
Net income per share attributable to AeroVironment - Diluted (in dollars per share) | $ 1.97 | $ 0.75 | $ 0.56 | |||||||||
Weighted average shares outstanding: | ||||||||||||
Basic (in shares) | 23,663,410 | 23,471,241 | 23,059,045 | |||||||||
Diluted (in shares) | 24,071,713 | 23,813,772 | 23,307,738 | |||||||||
ASU 2014-09 | As Reported. | ||||||||||||
Revenue: | ||||||||||||
Revenue | $ 271,052 | $ 228,940 | ||||||||||
Cost of sales: | ||||||||||||
Cost of sales | 162,164 | 133,755 | ||||||||||
Gross margin: | ||||||||||||
Total gross margin | 108,888 | 95,185 | ||||||||||
Selling, general and administrative | 50,826 | 47,642 | ||||||||||
Research and development | 26,433 | 28,465 | ||||||||||
Income from continuing operations | 31,629 | 19,078 | ||||||||||
Other income (expense): | ||||||||||||
Interest income, net | 2,240 | 1,618 | ||||||||||
Other expense, net | (49) | 172 | ||||||||||
Income from continuing operations before income taxes | 33,820 | 20,868 | ||||||||||
Provision for income taxes | 10,177 | 4,138 | ||||||||||
Equity method investment loss, net of tax | (1,283) | (119) | ||||||||||
Net income from continuing operations | 22,360 | 16,611 | ||||||||||
Discontinued operations: | ||||||||||||
Income (loss) from discontinued operations, net of tax | (2,508) | (4,154) | ||||||||||
Net income (loss) from discontinued operations | (2,508) | (4,154) | ||||||||||
Net income | 19,852 | 12,457 | ||||||||||
Net loss attributable to noncontrolling interest | 216 | 22 | ||||||||||
Net income attributable to AeroVironment | $ 20,068 | $ 12,479 | ||||||||||
Net income (loss) per share attributable to AeroVironment—Basic | ||||||||||||
Basic, continuing (in dollars per share) | $ 0.97 | $ 0.72 | ||||||||||
Basic, discontinuing (in dollars per share) | (0.11) | (0.18) | ||||||||||
Net income per share attributable to AeroVironment - Basic (in dollars per share) | 0.86 | 0.54 | ||||||||||
Net income (loss) per share attributable to AeroVironment—Diluted | ||||||||||||
Diluted, continuing (in dollars per share) | 0.95 | 0.72 | ||||||||||
Diluted, discontinued (in dollars per share) | (0.11) | (0.18) | ||||||||||
Net income per share attributable to AeroVironment - Diluted (in dollars per share) | $ 0.84 | $ 0.54 | ||||||||||
Weighted average shares outstanding: | ||||||||||||
Basic (in shares) | 23,471,241 | 23,059,045 | ||||||||||
Diluted (in shares) | 23,813,772 | 23,307,738 | ||||||||||
ASU 2014-09 | Adjustment | ||||||||||||
Revenue: | ||||||||||||
Revenue | $ (2,628) | $ 4,165 | ||||||||||
Cost of sales: | ||||||||||||
Cost of sales | (1,425) | 2,477 | ||||||||||
Gross margin: | ||||||||||||
Total gross margin | (1,203) | 1,688 | ||||||||||
Income from continuing operations | (1,203) | 1,688 | ||||||||||
Other income (expense): | ||||||||||||
Income from continuing operations before income taxes | (1,203) | 1,688 | ||||||||||
Provision for income taxes | (377) | 620 | ||||||||||
Net income from continuing operations | (826) | 1,068 | ||||||||||
Discontinued operations: | ||||||||||||
Income (loss) from discontinued operations, net of tax | (1,379) | (447) | ||||||||||
Net income (loss) from discontinued operations | (1,379) | (447) | ||||||||||
Net income | (2,205) | 621 | ||||||||||
Net income attributable to AeroVironment | $ (2,205) | $ 621 | ||||||||||
Net income (loss) per share attributable to AeroVironment—Basic | ||||||||||||
Basic, continuing (in dollars per share) | $ (0.03) | $ 0.05 | ||||||||||
Basic, discontinuing (in dollars per share) | (0.06) | (0.02) | ||||||||||
Net income per share attributable to AeroVironment - Basic (in dollars per share) | (0.09) | 0.03 | ||||||||||
Net income (loss) per share attributable to AeroVironment—Diluted | ||||||||||||
Diluted, continuing (in dollars per share) | (0.03) | 0.05 | ||||||||||
Diluted, discontinued (in dollars per share) | (0.06) | (0.02) | ||||||||||
Net income per share attributable to AeroVironment - Diluted (in dollars per share) | $ (0.09) | $ 0.03 | ||||||||||
Weighted average shares outstanding: | ||||||||||||
Basic (in shares) | 23,471,241 | 23,059,045 | ||||||||||
Diluted (in shares) | 23,813,772 | 23,307,738 | ||||||||||
Product sales | ||||||||||||
Revenue: | ||||||||||||
Revenue | $ 212,089 | $ 191,712 | $ 158,924 | |||||||||
Cost of sales: | ||||||||||||
Cost of sales | 113,489 | 109,393 | 89,039 | |||||||||
Gross margin: | ||||||||||||
Total gross margin | 98,600 | 82,319 | 69,885 | |||||||||
Product sales | ASU 2014-09 | As Reported. | ||||||||||||
Revenue: | ||||||||||||
Revenue | 195,330 | 159,630 | ||||||||||
Cost of sales: | ||||||||||||
Cost of sales | 111,990 | 88,963 | ||||||||||
Gross margin: | ||||||||||||
Total gross margin | 83,340 | 70,667 | ||||||||||
Product sales | ASU 2014-09 | Adjustment | ||||||||||||
Revenue: | ||||||||||||
Revenue | (3,618) | (706) | ||||||||||
Cost of sales: | ||||||||||||
Cost of sales | (2,597) | 76 | ||||||||||
Gross margin: | ||||||||||||
Total gross margin | (1,021) | (782) | ||||||||||
Contract services | ||||||||||||
Revenue: | ||||||||||||
Revenue | 102,185 | 76,712 | 74,181 | |||||||||
Cost of sales: | ||||||||||||
Cost of sales | 72,382 | 51,346 | 47,193 | |||||||||
Gross margin: | ||||||||||||
Total gross margin | $ 29,803 | 25,366 | 26,988 | |||||||||
Contract services | ASU 2014-09 | As Reported. | ||||||||||||
Revenue: | ||||||||||||
Revenue | 75,722 | 69,310 | ||||||||||
Cost of sales: | ||||||||||||
Cost of sales | 50,174 | 44,792 | ||||||||||
Gross margin: | ||||||||||||
Total gross margin | 25,548 | 24,518 | ||||||||||
Contract services | ASU 2014-09 | Adjustment | ||||||||||||
Revenue: | ||||||||||||
Revenue | 990 | 4,871 | ||||||||||
Cost of sales: | ||||||||||||
Cost of sales | 1,172 | 2,401 | ||||||||||
Gross margin: | ||||||||||||
Total gross margin | $ (182) | $ 2,470 |
Impact of Adoption of New Acc_6
Impact of Adoption of New Accounting Standards - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue from Related Parties | $ 55,407 | $ 29,594 |
Impact of Adoption of New Acc_7
Impact of Adoption of New Accounting Standards - Comprehensive (loss) income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2015 | |
Impact of Adoption of New Accounting Standards | ||||
Net income | $ 47,419 | $ 17,647 | $ 13,078 | $ 13,078 |
Other comprehensive income: | ||||
Change in foreign currency translation adjustments | (34) | 36 | ||
Unrealized gain on investments | 57 | 70 | 74 | 74 |
Total comprehensive income | 47,442 | 17,753 | 13,152 | 13,152 |
Net loss attributable to noncontrolling interest | 19 | 216 | 22 | 22 |
Comprehensive income (loss) attributable to AeroVironment | $ 47,461 | 17,969 | 13,174 | $ 13,174 |
ASU 2014-09 | As Reported. | ||||
Impact of Adoption of New Accounting Standards | ||||
Net income | 19,852 | 12,457 | ||
Other comprehensive income: | ||||
Change in foreign currency translation adjustments | 36 | |||
Unrealized gain on investments | 70 | 74 | ||
Total comprehensive income | 19,958 | 12,531 | ||
Net loss attributable to noncontrolling interest | 216 | 22 | ||
Comprehensive income (loss) attributable to AeroVironment | 20,174 | 12,553 | ||
ASU 2014-09 | Adjustment | ||||
Impact of Adoption of New Accounting Standards | ||||
Net income | (2,205) | 621 | ||
Other comprehensive income: | ||||
Total comprehensive income | (2,205) | 621 | ||
Comprehensive income (loss) attributable to AeroVironment | $ (2,205) | $ 621 |
Impact of Adoption of New Acc_8
Impact of Adoption of New Accounting Standards - Comprehensive (loss) income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Abstract] | |||
Unrealized gain on investments, net of deferred tax expense | $ 51 | $ 25 | $ 43 |
Impact of Adoption of New Acc_9
Impact of Adoption of New Accounting Standards - Cash flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jul. 29, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2015 | |
Operating activities | |||||
Net income (loss) | $ 47,419 | $ 17,647 | $ 13,078 | $ 13,078 | |
Gain on sale of business, net of tax | (8,490) | ||||
Loss from discontinued operations | 2,964 | 3,887 | 4,601 | ||
Net income from continuing operations | 41,893 | 21,534 | 17,679 | ||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 7,669 | 5,982 | 5,054 | ||
Loss from equity method investments | $ 1,283 | 3,944 | 1,283 | 119 | |
Impairment of long-lived assets | 4,398 | 255 | 46 | ||
Provision for doubtful accounts | (39) | 977 | 48 | ||
Impairment of intangible assets and goodwill | 1,021 | ||||
Gains on foreign currency transactions | 38 | (87) | 284 | ||
Deferred income taxes | 4,792 | 2,853 | 309 | ||
Gain on business acquisition | (584) | ||||
Stock-based compensation | 6,985 | 4,956 | 3,392 | ||
Loss on disposition of property and equipment | 76 | 20 | 44 | ||
Amortization of held-to-maturity investments | (1,506) | 1,424 | 2,382 | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 25,821 | 11,070 | (19,720) | ||
Unbilled receivables and retentions | (36,175) | 2,253 | 615 | ||
Inventories | (16,631) | 1,192 | (16,816) | ||
Income tax receivable | (821) | ||||
Prepaid expenses and other assets | (2,401) | 139 | (1,484) | ||
Accounts payable | (7,054) | 5,736 | 545 | ||
Other liabilities | (4,043) | 9,224 | (166) | ||
Net cash provided by (used in) operating activities of continuing operations | 26,946 | 69,832 | (8,253) | ||
Investing activities | |||||
Acquisition of property and equipment | (8,896) | (9,563) | (9,017) | ||
Equity method investments | (7,598) | (3,267) | |||
Business acquisitions, net of tax | (430) | ||||
Proceeds from sale of business | 31,994 | ||||
Redemptions of held-to-maturity investments | 260,918 | 227,663 | 121,522 | ||
Purchases of held-to-maturity investments | (267,122) | (221,680) | (148,991) | ||
Redemptions of available-for-sale investments | 2,250 | 450 | 400 | ||
Net cash provided by (used in) investing activities from continuing operations | 11,546 | (6,397) | (36,516) | ||
Financing activities | |||||
Principal payments of capital lease obligations | (161) | (288) | (390) | ||
Tax withholding payment related to net settlement of equity awards | (1,094) | (397) | (5) | ||
Exercise of stock options | 71 | 2,705 | 3,865 | ||
Net cash (used in) provided by financing activities from continuing operations | (1,184) | 2,020 | 3,470 | ||
Discontinued operations | |||||
Operating activities of discontinued operations | (7,686) | (623) | (2,246) | ||
Investing activities of discontinued operations | (431) | (1,219) | (838) | ||
Net cash used in discontinued operations | (8,117) | (1,842) | (3,084) | ||
Net increase (decrease) in cash and cash equivalents | 29,191 | 63,613 | (44,383) | ||
Cash and cash equivalents at beginning of period | 79,904 | 143,517 | 79,904 | 124,287 | |
Cash and cash equivalents at ending of period | 172,708 | 143,517 | 79,904 | ||
Cash paid, net during the period for: | |||||
Income taxes | 6,780 | 1,813 | 1,804 | ||
Non-cash activities | |||||
Unrealized gain on investments, net of deferred tax expense of $25 and $43 | 57 | 70 | 74 | ||
Reclassification from share-based liability compensation to equity | 384 | 307 | |||
Change in foreign currency translation adjustments | (34) | 36 | |||
Acquisitions of property and equipment included in accounts payable | 810 | 379 | 724 | ||
ASU 2014-09 | As Reported. | |||||
Operating activities | |||||
Net income (loss) | 19,852 | 12,457 | |||
Loss from discontinued operations | 2,508 | 4,154 | |||
Net income from continuing operations | 22,360 | 16,611 | |||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 5,982 | 5,054 | |||
Loss from equity method investments | 1,283 | 119 | |||
Impairment of long-lived assets | 255 | 46 | |||
Provision for doubtful accounts | 977 | 48 | |||
Impairment of intangible assets and goodwill | 1,021 | ||||
Gains on foreign currency transactions | (87) | 284 | |||
Deferred income taxes | 3,835 | (52) | |||
Gain on business acquisition | (584) | ||||
Stock-based compensation | 4,956 | 3,392 | |||
Loss on disposition of property and equipment | 20 | 44 | |||
Amortization of held-to-maturity investments | 1,424 | 2,382 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 11,211 | (19,608) | |||
Unbilled receivables and retentions | 903 | 4,667 | |||
Inventories | 2,268 | (19,225) | |||
Prepaid expenses and other assets | 419 | (1,484) | |||
Accounts payable | 5,736 | 545 | |||
Other liabilities | 7,873 | (233) | |||
Net cash provided by (used in) operating activities of continuing operations | 70,436 | (7,994) | |||
Investing activities | |||||
Acquisition of property and equipment | (9,563) | (9,017) | |||
Equity method investments | (3,267) | ||||
Business acquisitions, net of tax | (430) | ||||
Redemptions of held-to-maturity investments | 227,663 | 121,522 | |||
Purchases of held-to-maturity investments | (221,680) | (148,991) | |||
Redemptions of available-for-sale investments | 450 | 400 | |||
Net cash provided by (used in) investing activities from continuing operations | (6,397) | (36,516) | |||
Financing activities | |||||
Principal payments of capital lease obligations | (288) | (390) | |||
Tax withholding payment related to net settlement of equity awards | (397) | (5) | |||
Exercise of stock options | 2,705 | 3,865 | |||
Net cash (used in) provided by financing activities from continuing operations | 2,020 | 3,470 | |||
Discontinued operations | |||||
Operating activities of discontinued operations | (1,227) | (2,505) | |||
Investing activities of discontinued operations | (1,219) | (838) | |||
Net cash used in discontinued operations | (2,446) | (3,343) | |||
Net increase (decrease) in cash and cash equivalents | 63,613 | (44,383) | |||
Cash and cash equivalents at beginning of period | $ 79,904 | $ 143,517 | 79,904 | 124,287 | |
Cash and cash equivalents at ending of period | 143,517 | 79,904 | |||
Cash paid, net during the period for: | |||||
Income taxes | 1,813 | 1,804 | |||
Non-cash activities | |||||
Unrealized gain on investments, net of deferred tax expense of $25 and $43 | 70 | 74 | |||
Reclassification from share-based liability compensation to equity | 384 | 307 | |||
Change in foreign currency translation adjustments | 36 | ||||
Acquisitions of property and equipment included in accounts payable | 379 | 724 | |||
ASU 2014-09 | Adjustment | |||||
Operating activities | |||||
Net income (loss) | (2,205) | 621 | |||
Loss from discontinued operations | 1,379 | 447 | |||
Net income from continuing operations | (826) | 1,068 | |||
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||||
Deferred income taxes | (982) | 361 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (141) | (112) | |||
Unbilled receivables and retentions | 1,350 | (4,052) | |||
Inventories | (1,076) | 2,409 | |||
Prepaid expenses and other assets | (280) | ||||
Other liabilities | 1,351 | 67 | |||
Net cash provided by (used in) operating activities of continuing operations | (604) | (259) | |||
Discontinued operations | |||||
Operating activities of discontinued operations | 604 | 259 | |||
Net cash used in discontinued operations | $ 604 | $ 259 |
Impact of Adoption of New Ac_10
Impact of Adoption of New Accounting Standards - Cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Abstract] | |||
Unrealized change in fair value of investments recorded in other comprehensive income (loss), net of deferred taxes | $ 51 | $ 25 | $ 43 |
Subsequent Events (Details)
Subsequent Events (Details) - Pulse Aerospace, LLC - Subsequent Event | Jun. 10, 2019USD ($) |
Subsequent Event [Line Items] | |
Ownership interest acquired | 100.00% |
Cash | $ 20,650,000 |
Amount of retention to cover post closing indemnification claims | 250,000 |
Amount of holdback | $ 1,250,000 |
Number of months after closing holdback will be paid | 18 months |
Maximum | |
Subsequent Event [Line Items] | |
Contingent consideration | $ 5,000,000 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Apr. 30, 2019 | Jul. 28, 2018 | Apr. 30, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 30, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Selected Quarterly Financial Information | |||||||||||||
Revenue | $ 87,930,000 | $ 75,322,000 | $ 72,979,000 | $ 78,043,000 | $ 113,629,000 | $ 54,633,000 | $ 65,801,000 | $ 34,361,000 | $ 314,274,000 | $ 268,424,000 | $ 233,105,000 | ||
Gross margin | 37,023,000 | 30,392,000 | 28,399,000 | 32,589,000 | 50,594,000 | 18,250,000 | 30,143,000 | 8,698,000 | $ 128,403,000 | $ 107,685,000 | $ 96,873,000 | ||
Net (loss) income from attributable to AeroVironment from continuing operations | $ 6,097,000 | $ 8,431,000 | $ 7,047,000 | $ 20,337,000 | $ 19,012,000 | $ (647,000) | $ 7,756,000 | $ (4,371,000) | |||||
Net (loss) income per share attributable to AeroVironment from continuing operations—basic | $ 0.26 | $ 0.35 | $ 0.30 | $ 0.86 | $ 0.80 | $ (0.02) | $ 0.33 | $ (0.19) | $ 1.77 | $ 0.93 | $ 0.77 | ||
Net (loss) income per share attributable to AeroVironment from continuing operations—diluted | $ 0.26 | $ 0.35 | $ 0.29 | $ 0.85 | $ 0.79 | $ (0.02) | $ 0.32 | $ (0.19) | $ 1.74 | $ 0.91 | $ 0.76 | ||
Number of weeks | 91 days | ||||||||||||
Impairment of intangible assets and goodwill | $ 1,021,000 | ||||||||||||
Deferred tax expense | $ 3,100,000 | $ 3,300,000 | $ 3,300,000 | ||||||||||
Other income (expense) | |||||||||||||
Selected Quarterly Financial Information | |||||||||||||
One time gain on litigation settlement | $ 260,000 | ||||||||||||
Altoy | SG&A | |||||||||||||
Selected Quarterly Financial Information | |||||||||||||
Impairment of intangible assets and goodwill | $ 1,000,000 | ||||||||||||
UAS Quantix Solution | SG&A | |||||||||||||
Selected Quarterly Financial Information | |||||||||||||
Impairment loss related to long lived assets | $ 4,400,000 | ||||||||||||
Pre-tax impairment charge | $ 4,400,000 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Allowance for doubtful accounts | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | $ 1,080 | $ 104 | $ 56 |
Charged to Cost and Expenses | 198 | 976 | 56 |
Deductions | (237) | (8) | |
Balance at End of Period | 1,041 | 1,080 | 104 |
Warranty reserve | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 2,090 | 1,947 | 3,094 |
Charged to Cost and Expenses | 702 | 1,884 | 1,838 |
Deductions | (1,088) | (1,741) | (2,985) |
Balance at End of Period | 1,704 | 2,090 | 1,947 |
Reserve for inventory excess and obsolescence | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 3,953 | 2,756 | 2,542 |
Charged to Cost and Expenses | 5,054 | 2,758 | 1,115 |
Deductions | (1,183) | (1,561) | (901) |
Balance at End of Period | 7,824 | 3,953 | 2,756 |
Reserve for self-insured medical claims | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 1,003 | 1,133 | 979 |
Charged to Cost and Expenses | 10,808 | 9,100 | 7,037 |
Deductions | (10,867) | (9,230) | (6,883) |
Balance at End of Period | $ 944 | $ 1,003 | $ 1,133 |