AeroVironment (AVAV) 8-K Summary of Reportable Business Segments Under the New Segment Structure

Exhibit 99.1

Summary of Reportable Business Segments Under the New Segment Structure

The following tables present our segment operating results for our fiscal years ended April 30, 2023 and 2022 and the quarters ended therein under the new segment structure (in thousands):

	Three Months Ended July 30, 2022								Three Months Ended July 31, 2021
	UMS		LMS		MW		Total		UMS		LMS		MW		Total
Revenue	$	67,775	$	23,011	$	17,730	$	108,516	$	67,056	$	19,176	$	14,777	$	101,009
Gross margin		21,504		7,746		4,464		33,714		20,699		5,989		2,035		28,723
(Loss) income from operations		(3,698)		(1,031)		1,455		(3,274)		(9,064)		(463)		(2,586)		(12,113)
Acquisition-related expenses		304		—		31		335		2,248		251		755		3,254
Amortization of intangibles (1)		6,231		—		616		6,847		8,512		—		612		9,124
Adjusted income (loss) from operations	$	2,837	$	(1,031)	$	2,102	$	3,908	$	1,696	$	(212)	$	(1,219)	$	265

	Three Months Ended October 29, 2022								Three Months Ended October 30, 2021
	UMS		LMS		MW		Total		UMS		LMS		MW		Total
Revenue	$	61,634	$	31,101	$	18,849	$	111,584	$	87,840	$	18,418	$	15,750	$	122,008
Gross margin		7,903		12,636		5,351		25,890		31,648		6,222		4,585		42,455
(Loss) income from operations		(17,347)		2,004		1,029		(14,314)		2,759		47		533		3,339
Acquisition-related expenses		569		—		—		569		542		163		143		848
Amortization of intangibles (1)		7,250		—		592		7,842		9,650		—		672		10,322
Adjusted (loss) income from operations	$	(9,528)	$	2,004	$	1,621	$	(5,903)	$	12,951	$	210	$	1,348	$	14,509

	Three Months Ended January 28, 2023								Three Months Ended January 29, 2022
	UMS		LMS		MW		Total		UMS		LMS		MW		Total
Revenue	$	92,329	$	24,015	$	18,051	$	134,395	$	55,091	$	18,603	$	16,399	$	90,093
Gross margin		33,432		7,841		4,237		45,510		11,177		5,209		5,050		21,436
Income (loss) from operations		4,902		(129)		(166)		4,607		(14,182)		(1,289)		1,345		(14,126)
Acquisition-related expenses		286		—		—		286		253		54		61		368
Amortization of intangibles (1)		6,604		—		542		7,146		8,763		—		620		9,383
Adjusted income (loss) from operations	$	11,792	$	(129)	$	376	$	12,039	$	(5,166)	$	(1,235)	$	2,026	$	(4,375)

Exhibit 99.1

	Three Months Ended April 30, 2023								Three Months Ended April 30, 2022
	UMS		LMS		MW		Total		UMS		LMS		MW		Total
Revenue	$	122,172	$	42,497	$	21,372	$	186,041	$	90,757	$	20,217	$	21,648	$	132,622
Gross margin		49,111		14,513		4,776		68,400		33,944		7,065		7,613		48,622
(Loss) income from operations		(171,933)		7,230		(979)		(165,682)		11,461		(1,414)		2,966		13,013
Goodwill impairment (2)		190,166		—		—		190,166		—		—		—		—
Acquisition-related expenses		196		—		—		196		333		—		36		369
Amortization of intangibles (1)		6,925		—		544		7,469		7,267		—		637		7,904
Adjusted income (loss) from operations	$	25,354	$	7,230	$	(435)	$	32,149	$	19,061	$	(1,414)	$	3,639	$	21,286

	Year Ended April 30, 2023								Year Ended April 30, 2022
	UMS		LMS		MW		Total		UMS		LMS		MW		Total
Revenue	$	343,910	$	120,624	$	76,002	$	540,536	$	300,743	$	76,415	$	68,574	$	445,732
Gross margin		111,950		42,736		18,828		173,514		97,467		24,486		19,283		141,236
(Loss) income from continuing operations		(188,076)		8,074		1,339		(178,663)		(9,025)		(3,120)		2,258		(9,887)
Goodwill impairment (2)		190,166		—		—		190,166		—		—		—		—
Acquisition-related expenses		1,354		—		31		1,385		3,562		297		995		4,854
Amortization of intangibles (1)		27,124		—		2,294		29,418		34,166		—		2,541		36,707
Adjusted income (loss) from operations	$	30,568	$	8,074	$	3,664	$	42,306	$	28,703	$	(2,823)	$	5,794	$	31,674

(1) Amortization of intangibles includes amortization of acquired intangible assets and other purchase accounting adjustments.

(2) Goodwill impairment includes impairment of goodwill and accelerated amortization.

Statement Regarding Non-GAAP Measures

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

Exhibit 99.1

Non-GAAP Adjusted Operating Income

Adjusted operating income is defined as operating income before intangible amortization, amortization of non-cash purchase accounting adjustments, and acquisition related expenses.