Press Release
INNOVATIVE SOLUTIONS & SUPPORT, INC. ANNOUNCES RECORD 1ST QUARTER FULLY DILUTED
EPS GROWTH OF 264% TO $0.51/SHARE FOR THE THREE MONTHS ENDED DECEMBER 31, 2004.
Exton, PA.--(BUSINESS WIRE)--January 19, 2005--Innovative Solutions & Support,
Inc. (NASDAQ:ISSC-news) today announced the following record results for the 1st
quarter ended December 31, 2004:
Q1 FY 2005
o Sales up 123% to a record $19.0 million.
o Net income up 285% to a record $6.2 million.
o EPS, diluted up 264% to a record $0.51 a share
o Backlog up 39% to a record $36.2 million
o Cash Flow Record $7.5 million
Please refer to the accompanying schedules highlighting our Statement of
Operations and Balance Sheet.
A Company spokesperson commented: "In the 1st quarter we experienced strong
demand for our Air Data equipment as compliance for Domestic Reduced Vertical
Separation Minimum (DRVSM) approaches its effective date of January 20, 2005. We
also expect demand for our Air Data equipment beyond the compliance date as a
result of delayed DRVSM installations. According to a January 10, 2005 article
in Aviation Week & Space Technology magazine, 'only 6,100 business jets or 62%
of the eligible fleet have been outfitted'. Beyond DRVSM, we expect on going
demand for the replacement of aged, obsolete and troublesome Air Data
equipment."
The General Aviation market (business jets) currently represents the largest
demand for DRVSM solutions. In this market, Innovative Solutions is a leading
supplier of Air Data equipment with certified solutions for Falcon, Cessna
Citation, Learjet, Gulfstream, Sabreliner, Raytheon King Air, Beechjet,
Westwind, Hawker and Challenger business aircraft. The Company also has
certified solutions for a wide variety of commercial air transport aircraft
including DC-8's, DC-9's, B-707's, B-727's and B-737's, and Military aircraft
including A-10's, KC-135's, RC-135's and C-130's.
At December 31, 2004 the Company's backlog reached a record $36.2 million. This
reflects a 39% increase from the December 31, 2003 backlog of $26 million.
The company will host a conference call tomorrow morning, January 20, 2005 at
10:00 am local time (EST) to discuss these results and our business outlook.
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 display systems and advanced monitoring
systems that measure and display critical flight information. This includes data
relative to aircraft separation, airspeed and altitude as well as 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 & SUPPORT, INC.
BALANCE SHEET
ACTUAL ACTUAL
SEPTEMBER 30, 2004 DECEMBER 31, 2004
------------------ -----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 65,867,167 $ 73,340,686
Accounts receivable 5,003,100 5,196,164
Inventories 5,191,628 5,543,742
Deferred income taxes 984,111 984,111
Prepaid expenses 665,276 580,648
------------ ------------
Total current assets 77,711,282 85,645,351
------------ ------------
Property and equipment, net 9,620,231 9,552,118
------------ ------------
Other assets 137,114 134,114
------------ ------------
TOTAL ASSETS $ 87,468,627 $ 95,331,583
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of note payable $ 100,000 $ 100,000
Current portion of capitalized lease obligation 7,257 7,257
Accounts payable 1,696,247 1,347,804
Accrued expenses 4,754,641 6,381,509
Deferred revenue 526,023 523,732
------------ ------------
Total current liabilities 7,084,168 8,360,302
------------ ------------
Note payable 4,235,000 4,235,000
------------ ------------
Capitalized lease obligation 20,681 18,819
------------ ------------
Deferred revenue 261,934 244,316
------------ ------------
Deferred income taxes 411,857 411,857
------------ ------------
SHAREHOLDERS' EQUITY:
Common stock 13,515 13,536
Additional paid-in capital 48,712,289 49,125,767
Retained earnings 37,342,940 43,535,743
Treasury stock (10,613,757) (10,613,757)
------------ ------------
Total shareholders' equity 75,454,987 82,061,289
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 87,468,627 $ 95,331,583
============ ============
INNOVATIVE SOLUTIONS & SUPPORT, INC.
STATEMENT OF OPERATIONS
THREE MONTHS ENDED
DECEMBER 31,
-------------------------------------
2003 2004
-------------------------------------
Revenues $ 8,523,336 $ 18,978,804
Cost of Sales 3,481,411 6,182,143
-------------------------------------
Gross profit 5,041,925 12,796,661
-------------------------------------
Research and development 1,009,275 1,271,531
Selling, general and administrative 1,640,620 2,028,467
-------------------------------------
Operating income 2,392,030 9,496,663
-------------------------------------
Interest income 112,671 283,250
Interest expense (31,855) (39,738)
-------------------------------------
Income before income taxes 2,472,846 9,740,175
Income tax expense 865,496 3,547,372
-------------------------------------
Net Income $ 1,607,350 $ 6,192,803
-------------------------------------
Net Income per Common Share
Basic $ 0.14 $ 0.52
Diluted $ 0.14 $ 0.51
Weighted Average Shares Outstanding
Basic 11,412,614 11,835,138
Diluted 11,776,015 12,180,275