Press Release
INNOVATIVE SOLUTIONS & SUPPORT, INC. ANNOUNCES EPS GROWTH OF 170% IN 3RD QUARTER
TO A RECORD $0.27/SHARE.
Exton, PA.--(BUSINESS WIRE)--July 28, 2004--Innovative Solutions & Support, Inc.
(NASDAQ:ISSC-news) today announced the following results for the 3rd quarter and
year to date periods ended June 30, 2004:
Q3 FY 2004
o Sales up 88% to a record $12.3 million.
o Net income up 167% to a record $3.3 million.
o EPS, diluted up 170% to a record $0.27
o Released Backlog up 22% to a record $27.9 million
o Cash Flow $5.6 million
Year-To-Date FY2004
o Sales up 75% to $31.7 million
o Net Income up 174% to $7.5 million
o EPS, diluted up 186% to $0.63
o Cash Flow $9.8 million
Please refer to the accompanying schedules highlighting our Statement of
Operations and Balance Sheet.
A Company spokesman commented: "The demand for our Air Data equipment has
materialized as anticipated and is expected to continue beyond the FAA's RVSM
compliance date of January 20, 2005. Continued demand for the replacement of
obsolete and troublesome equipment will augment installations on aircraft that
missed the FAA compliance date."
At June 30, 2004 the Company's backlog of released business reached a
quarter-end record $27.9 million. This reflects a 22% increase from the June 30,
2003 backlog of $22.8 million. In addition the Company has an additional $17
million in follow-on options for release in subsequent periods that has not yet
been recognized in firm backlog.
Along with our sales increase, the Company increased its investment in
Engineering & Product Development by over 100% in the current quarter and by 59%
for the year-to-date period. This investment was substantially linked to the
issuance of the Cockpit/IP(TM) TSO certification received on July 2nd from the
FAA. Further, this investment assures that new Flat Panel and Air Data Systems
will come to market at the end of calendar 2004.
The company will host a conference call tomorrow morning, July 29, 2004 at 10:00
am local time to discuss these results. Please call in to participate at (888)
792-8459. Also, our web site (www.innovative-ss.com) will carry the conference
call live and have it available for subsequent listening for a period of 30
days.
Headquartered in Exton, PA. Innovative Solutions & Support, Inc.
(www.innovative-ss.com) designs, manufactures and markets Air Data flight
information computers, flat panel displays and advanced monitoring systems that
measure and display critical flight information. This includes data relative to
aircraft separation, airspeed and altitude as well as engine and fuel
measurements.
Certain matters discussed in this news release, including operating and
financial results for future periods, are forward-looking statements that are
subject to risks and uncertainties that could cause actual results to differ
materially, either better or worse, from those discussed including other risks
and uncertainties reflected in the Company's prospectus and Form 10-K annual
report on file with the SEC.
Contact Mr. James Reilly at (610) 646-9800
INNOVATIVE SOLUTIONS AND SUPPORT, INC.
BALANCE SHEET
ACTUAL ACTUAL
SEPTEMBER 30, 2003 JUNE 30, 2004
------------------ -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 48,789,744 $ 58,627,694
Accounts receivable 6,955,207 4,991,335
Inventories 2,840,648 4,697,647
Deferred income taxes 673,134 673,134
Prepaid expenses 660,430 615,241
------------ ------------
Total current assets 59,919,163 69,605,051
------------ ------------
Property and equipment, net 9,548,491 9,595,895
------------ ------------
Other assets 408,971 140,113
------------ ------------
TOTAL ASSETS $ 69,876,625 $ 79,341,059
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of note payable $ 100,000 $ 100,000
Current portion of capitalized lease obligation - 7,257
Accounts payable 578,306 779,794
Accrued expenses 3,146,409 3,270,660
Deferred revenue 98,036 153,180
------------ ------------
Total current liabilities 3,922,751 4,310,891
------------ ------------
Note payable 4,235,000 4,235,000
------------ ------------
Capitalized lease obligation - 22,524
------------ ------------
Deferred revenue 332,407 279,552
------------ ------------
Deferred income taxes 328,177 320,089
------------ ------------
SHAREHOLDERS' EQUITY:
Common stock 13,081 13,462
Additional paid-in capital 46,248,224 47,895,517
Retained earnings 25,410,742 32,877,781
Treasury stock (10,613,757) (10,613,757)
------------ ------------
Total shareholders' equity 61,058,290 70,173,003
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 69,876,625 $ 79,341,059
============ ============
INNOVATIVE SOLUTIONS AND SUPPORT, INC.
STATEMENT OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30, JUNE 30,
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2003 2004 2003 2004
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Revenues $6,519,628 $12,269,653 $18,064,848 $31,688,276
Cost of Sales 2,744,729 4,056,372 7,752,467 11,200,624
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Gross profit 3,774,899 8,213,281 10,312,381 20,487,652
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Research and development 658,259 1,363,143 2,424,147 3,861,311
Selling, general and administrative 1,598,011 2,090,357 4,330,342 5,600,461
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Operating income 1,518,629 4,759,781 3,557,892 11,025,880
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Interest income 134,142 116,110 463,383 345,985
Interest expense (33,090) (31,197) (101,680) (94,201)
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Income before income taxes 1,619,681 4,844,694 3,919,595 11,277,664
Income tax expense 388,723 1,559,086 1,193,694 3,810,625
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Net Income $1,230,958 $ 3,285,608 $ 2,725,901 $ 7,467,039
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Net Income per Common Share
Basic $ 0.10 $ 0.28 $ 0.22 $ 0.65
Diluted $ 0.10 $ 0.27 $ 0.22 $ 0.63
Weighted Average Shares Outstanding
Basic 11,982,569 11,666,639 12,437,036 11,530,994
Diluted 12,204,971 11,960,746 12,660,902 11,867,818