Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Jun. 23, 2021 | Oct. 31, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | AeroVironment Inc | ||
Entity File Number | 001-33261 | ||
Entity Central Index Key | 0001368622 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Apr. 30, 2021 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-2705790 | ||
Amendment Flag | false | ||
Trading Symbol | AVAV | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Address, Address Line One | 241 18th Street South, Suite 415 | ||
Entity Address, City or Town | Arlington | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 22202 | ||
City Area Code | (805) | ||
Local Phone Number | 520-8350 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,663.1 | ||
Entity Common Stock, Shares Outstanding | 24,777,816 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 148,741 | $ 255,142 |
Short-term investments | 31,971 | 47,507 |
Accounts receivable, net of allowance for doubtful accounts of $595 at April 30, 2021 and $1,190 at April 30, 2020 | 62,647 | 73,660 |
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $544 at April 30, 2021 and $15,779 at April 30, 2020) | 71,632 | 75,837 |
Inventories | 71,646 | 45,535 |
Prepaid expenses and other current assets | 15,001 | 6,246 |
Total current assets | 401,638 | 503,927 |
Long-term investments | 12,156 | 15,030 |
Property and equipment, net | 58,896 | 21,694 |
Operating lease right-of-use assets | 22,902 | 8,793 |
Deferred income taxes | 2,061 | 4,928 |
Intangibles, net | 106,268 | 13,637 |
Goodwill | 314,205 | 6,340 |
Other assets | 10,440 | 10,605 |
Total assets | 928,566 | 584,954 |
Current liabilities: | ||
Accounts payable | 24,841 | 19,859 |
Wages and related accruals | 28,068 | 23,972 |
Customer advances | 7,183 | 7,899 |
Current portion of long-term debt | 10,000 | |
Current operating lease liabilities | 6,154 | 3,380 |
Income taxes payable | 861 | 1,065 |
Other current liabilities | 19,078 | 10,778 |
Total current liabilities | 96,185 | 66,953 |
Long-term debt, net of current portion | 187,512 | |
Non-current operating lease liabilities | 19,103 | 6,833 |
Other non-current liabilities | 10,141 | 250 |
Liability for uncertain tax positions | 3,518 | 1,017 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Authorized shares-10,000,000; none issued or outstanding at April 30, 2021 and April 30, 2020 | ||
Issued and outstanding shares-24,777,295 shares at April 30, 2021 and 24,063,639 shares at April 30, 2020 | 2 | 2 |
Additional paid-in capital | 260,327 | 181,481 |
Accumulated other comprehensive income | 343 | 328 |
Retained earnings | 351,421 | 328,090 |
Total AeroVironment, Inc. stockholders' equity | 612,093 | 509,901 |
Noncontrolling interest | 14 | |
Total equity | 612,107 | 509,901 |
Total liabilities and stockholders' equity | $ 928,566 | $ 584,954 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Consolidated Balance Sheets | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 595 | $ 1,190 |
Due from Related Parties | $ 544 | $ 15,779 |
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 | 24,777,295 | 24,063,639 |
Common stock, outstanding shares | 24,777,295 | 24,063,639 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue: | |||
Revenue | $ 394,912 | $ 367,296 | $ 314,274 |
Cost of sales: | |||
Cost of sales | 230,354 | 214,194 | 185,871 |
Gross margin: | |||
Total gross margin | 164,558 | 153,102 | 128,403 |
Selling, general and administrative | 67,481 | 59,490 | 60,343 |
Research and development | 53,764 | 46,477 | 34,234 |
Income from continuing operations | 43,313 | 47,135 | 33,826 |
Other income: | |||
Interest (expense) income, net | (618) | 4,828 | 4,672 |
Other (expense) income, net | (8,330) | 707 | 11,980 |
Income before income taxes | 34,365 | 52,670 | 50,478 |
Provision for income taxes | 539 | 5,848 | 4,641 |
Equity method investment loss, net of tax | (10,481) | (5,487) | (3,944) |
Net income from continuing operations | 23,345 | 41,335 | 41,893 |
(Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively | (265) | 8,490 | |
Loss from discontinued operations, net of tax | (2,964) | ||
Net (loss) income from discontinued operations | (265) | 5,526 | |
Net income | 23,345 | 41,070 | 47,419 |
Net (income) loss attributable to noncontrolling interest | (14) | 4 | 19 |
Net income attributable to AeroVironment, Inc | $ 23,331 | $ 41,074 | $ 47,438 |
Net income (loss) per share attributable to AeroVironment-Basic | |||
Continuing (in dollars per share) | $ 0.97 | $ 1.74 | $ 1.77 |
Discontinued (in dollars per share) | (0.01) | 0.23 | |
Net income per share attributable to AeroVironment, Inc.-Basic | 0.97 | 1.73 | 2 |
Net income (loss) per share attributable to AeroVironment-Diluted | |||
Continuing (in dollars per share) | 0.96 | 1.72 | 1.74 |
Discontinued (in dollars per share) | (0.01) | 0.23 | |
Net income per share attributable to AeroVironment, Inc.-Diluted | $ 0.96 | $ 1.71 | $ 1.97 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 24,049,851 | 23,806,208 | 23,663,410 |
Diluted (in shares) | 24,362,656 | 24,088,167 | 24,071,713 |
Product sales | |||
Revenue: | |||
Revenue | $ 278,888 | $ 256,758 | $ 212,089 |
Cost of sales: | |||
Cost of sales | 149,714 | 139,131 | 113,489 |
Gross margin: | |||
Total gross margin | 129,174 | 117,627 | 98,600 |
Contract services | |||
Revenue: | |||
Revenue | 116,024 | 110,538 | 102,185 |
Cost of sales: | |||
Cost of sales | 80,640 | 75,063 | 72,382 |
Gross margin: | |||
Total gross margin | $ 35,384 | $ 35,475 | $ 29,803 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Consolidated Statements of Operations | |||
Related party revenue | $ 42,426 | $ 60,864 | $ 55,407 |
Tax expense | $ (76) | $ 2,444 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 23,345 | $ 41,070 | $ 47,419 |
Other comprehensive income: | |||
Unrealized (loss) gain on investments, net of deferred tax expense of $1, $14 and $51 for the fiscal years ended 2021, 2020 and 2019, respectively | (60) | 50 | 57 |
Change in foreign currency translation adjustments | 75 | 276 | (34) |
Total comprehensive income | 23,360 | 41,396 | 47,442 |
Net (income) loss attributable to noncontrolling interest | (14) | 4 | 19 |
Comprehensive income attributable to AeroVironment, Inc. | $ 23,346 | $ 41,400 | $ 47,461 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Consolidated Statements of Comprehensive Income | |||
Unrealized (loss) gain on investments, net of deferred tax expense of $1, $14 and $51 for the fiscal years ended 2021, 2020 and 2019, respectively | $ 1 | $ 14 | $ 51 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | ParentAdoption of ASU 2018-09 | Parent | Common Stock | Additional Paid-In Capital | Retained EarningsAdoption of ASU 2018-09 | Retained Earnings | Accumulated Other Comprehensive Income | Non-controlling Interest | Adoption of ASU 2018-09 | Total |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 409,056 | |||||||||
Balance at Apr. 30, 2018 | $ 409,033 | $ 2 | $ 170,139 | $ 238,913 | $ (21) | $ 23 | ||||
Balance (in shares) at Apr. 30, 2018 | 23,908,736 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 47,419 | |||||||||
Net (income) loss attributable to noncontrolling interest | (19) | 19 | ||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 47,438 | 47,438 | ||||||||
Unrealized gain (loss) 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 | |||||||||
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 | $ 665 | 462,571 | $ 2 | 176,216 | $ 665 | 286,351 | 2 | 4 | ||
Balance (in shares) at Apr. 30, 2019 | 23,946,293 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 665 | 462,575 | ||||||||
Net income | 41,070 | |||||||||
Net (income) loss attributable to noncontrolling interest | (4) | 4 | ||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 41,074 | 41,074 | ||||||||
Unrealized gain (loss) on investments | 50 | 50 | 50 | |||||||
Foreign currency translation | 276 | 276 | 276 | |||||||
Stock options exercised | 100 | 100 | 100 | |||||||
Stock options exercised (in shares) | 16,189 | |||||||||
Restricted stock awards (in shares) | 131,991 | |||||||||
Restricted stock awards forfeited (in shares) | 12,541 | |||||||||
Restricted stock awards forfeited (in shares) | (12,541) | |||||||||
Tax withholding payment related to net share settlement of equity awards | (1,062) | (1,062) | (1,062) | |||||||
Tax withholding payment related to net share settlement of equity awards (in shares) | (18,293) | |||||||||
Stock-based compensation | 6,227 | 6,227 | 6,227 | |||||||
Balance at Apr. 30, 2020 | 509,901 | $ 2 | 181,481 | 328,090 | 328 | 509,901 | ||||
Balance (in shares) at Apr. 30, 2020 | 24,063,639 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 509,901 | |||||||||
Net income | 23,345 | |||||||||
Net (income) loss attributable to noncontrolling interest | 14 | (14) | ||||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 23,331 | 23,331 | ||||||||
Unrealized gain (loss) on investments | (60) | (60) | (60) | |||||||
Foreign currency translation | 75 | 75 | 75 | |||||||
Stock options exercised | 1,522 | 1,522 | 1,522 | |||||||
Stock options exercised (in shares) | 53,500 | |||||||||
Restricted stock awards (in shares) | 117,468 | |||||||||
Restricted stock awards forfeited (in shares) | 5,509 | |||||||||
Restricted stock awards forfeited (in shares) | (5,509) | |||||||||
Tax withholding payment related to net share settlement of equity awards | (1,992) | (1,992) | (1,992) | |||||||
Tax withholding payment related to net share settlement of equity awards (in shares) | (25,597) | |||||||||
Business acquisition | 72,384 | 72,384 | 72,384 | |||||||
Business acquisition (in shares) | 573,794 | |||||||||
Stock-based compensation | 6,932 | 6,932 | 6,932 | |||||||
Balance at Apr. 30, 2021 | $ 612,093 | $ 2 | $ 260,327 | $ 351,421 | $ 343 | $ 14 | 612,093 | |||
Balance (in shares) at Apr. 30, 2021 | 24,777,295 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 612,107 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Operating activities | |||
Net income | $ 23,345 | $ 41,070 | $ 47,419 |
Loss (gain) on sale of business, net of tax | 265 | (8,490) | |
Loss from discontinued operations, net of tax | 2,964 | ||
Net income from continuing operations | 23,345 | 41,335 | 41,893 |
Adjustments to reconcile net income from continuing operations to cash provided by operating activities from continuing operations: | |||
Depreciation and amortization | 19,262 | 9,888 | 7,669 |
Losses from equity method investments, net | 10,481 | 5,487 | 3,944 |
Amortization of debt issuance costs | 145 | ||
Realized gain from sale of available-for-sale investments | (11) | (180) | |
Impairment of long-lived assets | 4,398 | ||
Provision for doubtful accounts | (114) | 388 | (39) |
Other non-cash gain, net | (449) | (703) | |
Non-cash lease expense | 5,150 | 4,574 | |
Loss on foreign currency transactions | 1 | 1 | 38 |
Deferred income taxes | (1,694) | 3,419 | 4,792 |
Stock-based compensation | 6,932 | 6,227 | 6,985 |
Loss (gain) on sale of property and equipment | 123 | (71) | 76 |
Amortization of debt securities | 309 | (1,423) | (1,506) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 17,177 | (42,869) | 25,821 |
Unbilled receivables and retentions | 8,381 | (22,790) | (36,175) |
Inventories | (5,179) | 8,855 | (16,631) |
Income tax receivable | 821 | (821) | |
Prepaid expenses and other assets | (6,104) | 831 | (2,401) |
Accounts payable | 2,565 | 3,127 | (7,054) |
Other liabilities | 6,212 | 8,180 | (4,043) |
Net cash provided by operating activities | 86,532 | 25,097 | 26,946 |
Investing activities | |||
Acquisition of property and equipment | (11,263) | (11,220) | (8,896) |
Equity method investments | (2,675) | (14,498) | (7,598) |
Business acquisitions, net of cash acquired | (385,614) | (18,641) | |
Proceeds from sale of business | 31,994 | ||
Proceeds from sale of property and equipment | 81 | ||
Redemptions of held-to-maturity investments | 185,917 | 260,918 | |
Purchases of held-to-maturity investments | (176,757) | (267,122) | |
Redemptions of available-for-sale investments | 146,425 | 200,892 | 2,250 |
Purchases of available-for-sale investments | (125,644) | (106,607) | |
Net cash (used in) provided by investing activities | (378,771) | 59,167 | 11,546 |
Financing activities | |||
Principal payments of capital lease obligations. | (161) | ||
Payment of contingent consideration | (868) | ||
Tax withholding payment related to net settlement of equity awards | (1,992) | (1,062) | (1,094) |
Holdback and retention payments for business acquisition | (1,492) | ||
Exercise of stock options | 1,522 | 100 | 71 |
Payment of debt issuance costs | (3,878) | ||
Proceeds from long-term debt | 200,000 | ||
Net cash used in financing activities | 194,160 | (1,830) | (1,184) |
Discontinued operations | |||
Operating activities of discontinued operations | 0 | 0 | (7,686) |
Investing activities of discontinued operations | 0 | 0 | (431) |
Net cash used in discontinued operations | 0 | 0 | (8,117) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (98,079) | 82,434 | 29,191 |
Cash, cash equivalents and restricted cash at beginning of period | 255,142 | 172,708 | 143,517 |
Cash, cash equivalents and restricted cash at end of period | 157,063 | 255,142 | 172,708 |
Cash paid, net during the period for: | |||
Income taxes | 2,405 | 532 | 6,780 |
Non-cash activities | |||
Unrealized (loss) gain on investments, net of deferred tax expense of $1, $14 and $51 for the fiscal years ended 2021, 2020 and 2019, respectively | (60) | 50 | 57 |
Issuance of common stock for business acquisition | 72,384 | ||
Change in foreign currency translation adjustments | 75 | 276 | (34) |
Issuances of inventory to property and equipment, ISR in-service assets | 769 | ||
Acquisitions of property and equipment included in accounts payable | $ 756 | $ 1,425 | $ 810 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Consolidated Statements of Cash Flows | |||
Unrealized (loss) gain on investments, net of deferred tax expense of $1, $14 and $51 for the fiscal years ended 2021, 2020 and 2019, respectively | $ 1 | $ 14 | $ 51 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2021 | |
Organization and Significant Accounting Policies | |
Organization and Significant Accounting Policies | AEROVIRONMENT, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. Organization and Significant Accounting Policies Organization AeroVironment, Inc., a Delaware corporation, is engaged in the design, development, production, delivery and support of a technologically advanced portfolio of intelligent, multi-domain robotic systems and related services for government agencies and businesses. AeroVironment, Inc. supplies unmanned aircraft systems (“UAS”), tactical missile systems (“TMS”) and related services primarily to organizations within the U.S. Department of Defense (“DoD”) and to international allied governments. Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of AeroVironment, Inc. and its wholly-owned subsidiaries: Arcturus UAV, Inc. (“Arcturus”) and 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”). In February 2019, the Company dissolved AeroVironment International PTE. LTD., the results of which were not material to the consolidated financial statements. In October 2019, the Company dissolved its wholly-owned subsidiary, Skytower, Inc., 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. 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 assets, liabilities and operating results of Pulse have been included in the Company’s consolidated financial statements. In February 2021, the Company dissolved its wholly-owned subsidiary, Pulse Aerospace, LLC, the results of which were not material to the consolidated financial statements. Refer to Note 21—Business Acquisitions for further details. On February 19, 2021, the Company closed its acquisition of Arcturus, a California corporation pursuant to a Stock Purchase Agreement (the “Arcturus Purchase Agreement”) with Arcturus and each of the shareholders and other equity interest holders of Arcturus (collectively, the “Arcturus Sellers”), to purchase 100% of the issued and outstanding equity of Arcturus (the “Arcturus Acquisition”). The assets, liabilities and operating results of Arcturus have been included in the Company’s consolidated financial statements. Refer to Note 21—Business Acquisitions for further details. On February 23, 2021, the Company purchased certain assets of, and assumed certain liabilities of, the Intelligent Systems Group business segment (“ISG”) of Progeny Systems Corporation, a Virginia corporation (the “ISG Seller”), pursuant to the terms of an Asset Purchase Agreement (the “ISG Purchase Agreement”) of the same date by and among the Company, ISG Seller and the sole shareholder of ISG Seller (the “Beneficial Owner,” and such acquisition of ISG, the “ISG Acquisition”). The assets, liabilities and operating results of ISG have been included in the Company’s consolidated financial statements. Refer to Note 21—Business Acquisitions 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. Refer to Note 9 – Equity Method Investments for further details. In July 2019, the Company made its initial capital contribution to a limited partnership fund focusing on highly relevant technologies and start-up companies serving defense and industrial markets. The Company accounts for investments in limited partnerships as equity method investments as the Company is deemed to have influence when it holds more than a minor interest. Refer to Note 9 – 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”), based on UAS and MUAS operating units. Accordingly, the Company operates its business as two reportable segments, UAS and MUAS. 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, acquired intangibles, goodwill, 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. Specifically, the Company’s existing intangible assets have been reclassified from other assets to intangibles, net on the consolidated balance sheet for all periods presented. 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. Restricted Cash The Company classifies cash accounts which are not available for general use as restricted cash. Pursuant to the terms of the Arcturus Purchase Agreement, the Company maintains escrow accounts to address final purchase price adjustments post-Arcturus Closing, if any and to address Arcturus UAV’s and/or the Sellers’ indemnification obligations. The restricted funds in the escrow account are recorded in other assets on the consolidated balance sheet. As of April 30, 2021 restricted cash was $8,322,000. The Company had no restricted cash as of April 30, 2020. Investments The Company’s investments are accounted for as held-to-maturity reported at amortized cost and available-for-sale reported at fair value. 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, 69%, 61% and 58% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2021, 2020 and 2019, respectively. These agencies accounted for 64% and 62% of the accounts receivable balances at April 30, 2021 and 2020, respectively. One such agency, the U.S. Army, accounted for 34%, 32% and 28% of the Company’s consolidated revenue for the years ended April 30, 2021, 2020 and 2019, 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 allied foreign governments, 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, 2021 and 2020, the retention balances were $700,000 and $717,000, respectively. The Company determines the allowance for doubtful accounts based on historical customer experience, age of receivable 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 expected credit losses over the life of the receivable; 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 In-service ISR assets 3 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of useful life or term of 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 fiscal year 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 8 – 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 technology, in-process research and development, customer relationships, trademarks and tradenames, and non-compete agreements. 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 estimated useful life for the Company’s intangible assets are as follows: Technology 3 Licenses 3 years Customer relationships 3 - 5 years In-process research and development 3 years Trademarks and tradenames 6 years Non-compete agreements Contractual term 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. No impairment was recorded for the fiscal years ended April 30, 2021, 2020 or 2019. Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill is tested for impairment annually during the fourth quarter of the Company’s fiscal year or when events or circumstances change in a manner that indicates goodwill might be impaired. Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business or political climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to projected future results of operations. No impairment was recorded for the fiscal years ended April 30, 2021, 2020 or 2019. 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, 2021 and 2020, the Company accrued sales commissions in other current liabilities of $2,716,000 and $2,842,000, 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, 2021 and 2020, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $1,181,000 and $753,000, 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. 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 customer advances 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 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, which accounted for 43% of revenue during our fiscal year ended April 30, 2021, or at a point in time, 57%. 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. Contract services revenue, including ISR services, is recognized over time as services are rendered. The Company elected the right to invoice practical expedient in which if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, such as flight hours for ISR services, the entity may recognize revenue in the amount to which the entity has a right to invoice. 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 and medium 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, 2021, the Company had approximately $211,796,000 of remaining performance obligations under contracts with its customers, which the Company also refers to as backlog. The Company currently expects to recognize approximately 94% of the remaining performance obligations as revenue in fiscal 2022 2023 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, 2021, 2020 or 2019. During the year ended April 30, 2021, the Company revised its estimates of the total expected costs to complete a TMS 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 to revenue of approximately $1,041,000. During the year ended April 30, 2020, the Company revised its estimates of the total expected costs to complete a TMS contract and a contract associated with a design and development agreement. 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 $1,403,000 and an increase of approximately $1,099,000, respectively. No adjustment on any one contract was material to the Company’s consolidated financial statements for the years ended April 30, 2019. 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, Revenue by major product line/program 2021 2020 2019 Small UAS $ 235,854 $ 225,888 $ 183,157 MUAS 15,837 — — TMS 87,268 63,781 65,087 HAPS 42,426 60,864 55,407 Other 13,527 16,763 10,623 Total revenue $ 394,912 $ 367,296 $ 314,274 Year Ended April 30, Revenue by contract type 2021 2020 2019 FFP $ 307,413 $ 269,917 $ 224,090 CPFF 86,719 94,176 89,485 T&M 780 3,203 699 Total revenue $ 394,912 $ 367,296 $ 314,274 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, Revenue by customer category 2021 2020 2019 U.S. government $ 271,273 $ 225,341 $ 182,586 Non-U.S. government 123,639 141,955 131,688 Total revenue $ 394,912 $ 367,296 $ 314,274 Year Ended April 30, Revenue by geographic location 2021 2020 2019 Domestic $ 241,898 $ 201,046 $ 151,124 International 153,014 166,250 163,150 Total revenue $ 394,912 $ 367,296 $ 314,274 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 bal |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Apr. 30, 2021 | |
Discontinued Operations. | |
Discontinued Operations | 2. Discontinued Operations 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. 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 and has been recorded in gain on sale of business, net of tax in the consolidated statements of income. During the year ended April 30, 2019, the Company recorded a reduction to the gain resulting from a working capital adjustment of $486,000. During the year ended April 30, 2020, the Company and Webasto engaged an independent accounting firm to resolve a working capital dispute with a maximum exposure of $922,000 pursuant to the terms of the Purchase Agreement. In June 2020, the independent accounting firm determined the final adjustment to the working capital dispute to be $341,000 which has been recorded net of tax as a loss of discontinued operations in the consolidated statements of income for the year ended April 30, 2020. 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, 2021. 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, which was amended in April 2019, 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 a previously announced product 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. On August 16, 2019, the Company filed a counterclaim against Webasto seeking payment of the Holdback and declaratory relief regarding Webasto’s cancellation of an assigned contract. Webasto again amended the complaint in May 2021 to include additional claims. The Company has not filed an answer to Webasto’s amended complaint filed in May 2021. The Company believes that the allegations are generally meritless and is mounting a vigorous defense. In order to avoid the future cost, expense, and distraction of continued litigation, the Company engaged in settlement negotiations with Webasto, however, the negotiations did not result in a settlement of any of the Company’s or Webasto’s claims. As a result of the settlement negotiations, the Company established a litigation reserve, which reserve reflects the scope of a rejected offer intended to communicate the Company’s serious and good faith intention to attempt to reach a settlement for the stated purposes. The offer did not reflect the Company’s view of the merits of the claims made, and the Company continues to vigorously defend all claims. However, as a result of the preparation of the good faith offer and the Company’s willingness to pursue settlement for that amount, the Company recorded litigation reserve expenses in the amount of $9,300,000 during the year ended April 30, 2021 recorded in other expense on the consolidated statements of operations. 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. On August 14, 2019, Benchmark Electronics, Inc. (“Benchmark”), the company that assembled the products subject to the recall, served a demand for arbitration to the Company and Webasto, and a third-party part supplier pursuant to its contracts with the Company and Webasto, respectively. The Company filed a responsive pleading in the Benchmark arbitration on October 29, 2019, consisting of a general denial, affirmative defenses, and a reservation of the right to file counter-claims at a later date. Webasto challenged the validity of the Benchmark arbitration by filing an action in New York Superior Court. In December 2019, Webasto and Benchmark reached a settlement of their disputed claims. Benchmark withdrew its Notice of Arbitration against Webasto and the Company, but reserved its right to pursue indemnity claims against suppliers. The recall remains a significant part of the Webasto lawsuit. 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 $38,000, $551,000 and $2,758,000 and has been recorded in other income, net in the consolidated statements of income for the fiscal years ended April 30, 2021, 2020 and 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 the Company’s operations. Therefore, the results of operations of the EES Business are reported as discontinued operations for all periods presented. The table below presents the statements of income data for the EES Business (in thousands). Year Ended April 30, 2021 2020 2019 Net sales $ — $ — $ 4,256 Cost of sales — — 5,097 Gross margin — — (841) Selling, general and administrative — — 1,515 Research and development — — 1,072 Other income, net — — 1 Loss from discontinued operations before income taxes — — (3,427) Benefit for income taxes — - (463) Net loss from discontinued operations $ — $ — $ (2,964) (Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively — (265) 8,490 Net (loss) income from discontinued operations $ — $ (265) $ 5,526 |
Investments
Investments | 12 Months Ended |
Apr. 30, 2021 | |
Investments | |
Investments | 3. Investments Investments consist of the following: April 30, 2021 2020 Short-term investments: Available-for-sale securities: Municipal securities 22,245 5,244 U.S. government securities 4,009 33,771 Corporate bonds 5,717 8,492 Total short-term investments $ 31,971 $ 47,507 Long-term investments: Available-for-sale securities: Municipal securities 988 1,592 U.S. government securities 4,000 8,996 Total available-for-sale investments 4,988 10,588 Equity method investments Investment in limited partnership fund 7,168 4,442 Total equity method investments 7,168 4,442 Total long-term investments $ 12,156 $ 15,030 Available-For-Sale Securities As of April 30, 2021 and 2020, the balance of available-for-sale securities consisted of state and local government municipal securities, U.S. government securities, U.S. government agency securities, and investment grade corporate bonds. Interest earned from these investments is recorded in interest income. Realized gains on sales of these investments on the basis of specific identification is recorded in interest income. The following table is a summary of the activity related to the available-for-sale investments recorded in short-term and long-term investments as of April 30, (in thousands): April 30, 2021 April 30, 2020 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Municipal securities $ 23,227 $ 8 $ (2) $ 23,233 $ 6,807 $ 29 $ — $ 6,836 U.S. government securities 8,008 1 — 8,009 42,730 41 (4) 42,767 Corporate bonds 5,718 — (1) 5,717 8,495 — (3) 8,492 Total available-for-sale investments $ 36,953 $ 9 $ (3) $ 36,959 $ 58,032 $ 70 $ (7) $ 58,095 The amortized cost and fair value of the Company’s available-for-sale securities by contractual maturity at April 30, 2021, are as follows: Cost Fair Value Due within one year $ 31,968 $ 31,971 Due after one year through five years 4,985 4,988 Total $ 36,953 $ 36,959 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2021 | |
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’s financial assets measured at fair value on a recurring basis at April 30, 2021, were as follows (in thousands): Fair Value Measurement Using Significant Quoted prices in other Significant active markets for observable unobservable identical assets inputs inputs Description (Level 1) (Level 2) (Level 3) Total Available-for-sale securities $ — $ 36,959 $ — $ 36,959 Contingent consideration — — 5,521 5,521 Total $ — $ 36,959 $ 5,521 $ 42,480 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, 2020 $ — Business acquisition 5,521 Transfers to Level 3 — Total (gains) losses (realized or unrealized) — Settlements — Balance at April 30, 2021 $ 5,521 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 or liabilities still held at April 30, 2021 $ — Pursuant to the ISG Purchase Agreement, the sellers may receive up to a maximum of $6,000,000 in additional cash consideration (“contingent consideration”), if certain revenue targets are achieved during the 3 years following closing. The contingent consideration was valued using a Black-Scholes option-pricing model. The analysis considered, among other items, contractual terms of the ISG Purchase Agreement, the Company’s discount rate, the timing of expected future cash flows and the probability that the revenue targets required for payment of the contingent consideration will be achieved. See Note 21—Business Acquisitions. |
Inventories, net
Inventories, net | 12 Months Ended |
Apr. 30, 2021 | |
Inventories, net | |
Inventories, net | 5. Inventories, net Inventories consist of the following (in thousands): April 30, 2021 2020 Raw materials $ 23,997 $ 15,988 Work in process 13,825 10,340 Finished goods 44,113 29,439 Inventories, gross 81,935 55,767 Reserve for inventory excess and obsolescence (10,289) (10,232) Inventories, net $ 71,646 $ 45,535 For the fiscal years ended April 30, 2021, 2020 and 2019, the Company recorded inventory reserve charges of $1,178,000, $5,377,000 and $5,054,000, respectively. Of the $5,377,000 inventory reserve recorded during fiscal year ended April 30, 2020, approximately $2,600,000 related to an impairment of the remaining net book value of the Company’s Quantix commercial UAS solution. |
Intangibles, net
Intangibles, net | 12 Months Ended |
Apr. 30, 2021 | |
Intangibles, net | |
Intangibles, net | 6. Intangibles, net Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows (in thousands): April 30, April 30, 2021 2020 Technology $ 46,850 $ 14,950 Licenses 1,008 1,006 Customer relationships 68,073 873 In-process research and development 550 550 Non-compete agreements 320 320 Trademarks and tradenames 68 68 Other 3 3 Intangibles, gross 116,872 17,770 Less accumulated amortization (10,604) (4,133) Intangibles, net $ 106,268 $ 13,637 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. The weighted average amortization period at April 30, 2021 and 2020 was five years and four years, respectively. Amortization expense for the years ended April 30, 2021, 2020 and 2019 was $6,469,000, $2,822,000 and $357,000, respectively. Technology and customer relationship intangible assets were recognized in conjunction with the Company’s acquisition of Arcturus on February 19, 2021. Technology and customer relationship intangible assets were recognized in conjunction with the Company’s acquisition of ISG on February 23, 2021. Technology, in-process research and development, customer relationships, trademarks and tradenames, and non-compete agreements were recognized in conjunction with the Company’s acquisition of Pulse on June 10, 2019. Refer to Note 21 - Business Combinations for further details. Estimated amortization expense for the next five years is as follows (in thousands): Year ending April 30, 2022 $ 24,553 2023 24,409 2024 23,560 2025 16,513 2026 11,471 $ 100,506 |
Goodwill
Goodwill | 12 Months Ended |
Apr. 30, 2021 | |
Goodwill. | |
Goodwill | 7. Goodwill The following table presents the changes in the Company’s goodwill balance (in thousands): UAS MUAS Total Balance at April 30, 2020 $ 6,340 $ — $ 6,340 Additions to goodwill 19,254 288,611 307,865 Impairment of goodwill — — — Balance at April 30, 2021 $ 25,594 $ 288,611 $ 314,205 The goodwill balance at April 30, 2020 is attributable to the acquisition of Pulse. The UAS segment goodwill addition is attributable to the ISG acquisition. The MUAS goodwill addition is attributable to the Arcturus acquisition. Refer to Note 21—Business Acquisitions for further details. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Apr. 30, 2021 | |
Property and Equipment, net | |
Property and Equipment, net | 8. Property and Equipment, net Property and equipment, net consist of the following: April 30, 2021 2020 (In thousands) In-service ISR assets $ 36,047 $ — Leasehold improvements 18,703 16,387 Machinery and equipment 53,943 46,519 Furniture and fixtures 3,698 3,031 Computer equipment and software 36,618 33,242 Construction in process 2,689 2,508 Property and equipment, gross 151,698 101,687 Less accumulated depreciation and amortization (92,802) (79,993) Property and equipment, net $ 58,896 $ 21,694 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 income. 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, 2021, 2020 and 2019 was $12,793,000, $7,066,000 and $7,311,000, respectively. |
Investments in Companies Accoun
Investments in Companies Accounted for Using the Equity Method | 12 Months Ended |
Apr. 30, 2021 | |
Investments in Companies Accounted for Using the Equity Method | |
Investments in Companies Accounted for Using the Equity Method | 9. Investments in Companies Accounted for Using the Equity Method In December of 2017, the Company and SoftBank formed a joint venture, HAPSMobile, which is a Japanese corporation. As of April 30, 2021, the Company’s ownership stake in HAPSMobile was approximately 7%, with the remaining 93% held by SoftBank. In connection with the formation of the joint venture on December 27, 2017, the Company initially purchased shares of HAPSMobile representing a 5% ownership interest in exchange for an investment of 210,000,000 yen ($1,860,000). The Company subsequently purchased additional shares of HAPSMobile in order to maintain a 5% ownership stake in the joint venture. The first such purchase occurred on April 17, 2018, at which time the Company invested 150,000,000 yen ($1,407,000) for the purchase of additional shares of HAPSMobile. On January 29, 2019, the Company invested an additional 209,500,000 yen ($1,926,000) 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 yen ($4,569,000) of additional shares of HAPSMobile to maintain its 10% ownership stake. The Company’s ownership percentage was subsequently diluted from 10% to approximately 5%. On December 4, 2019, the Company purchased 540,050,000 yen ($4,982,000) of additional shares of HAPSMobile to increase its ownership stake to approximately 7%. As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile pursuant to the applicable Joint Venture Agreement and related organizational documents, the Company’s investment is accounted for as an equity method investment. At April 30, 2021, 2020 and 2019, the Company recorded its ownership percentage of the net loss of HAPSMobile, or $10,530,000, $4,982,000 and $3,944,000, respectively, in equity method investment loss, net of tax in the consolidated statements of income. During the fiscal year ended April 30, 2021, the Company recorded its proportion of a loss for HAPSMobile’s impairment of its investment in Loon LLC in the amount of $8,363,000. HAPSMobile initially made its investment in Loon LLC in April 2019. The impairment recorded by HAPSMobile is included in realized and unrealized losses on investments in the summarized financial information shown below. At April 30, 2021 and 2020, the carrying value of the investment in HAPSMobile of $0 and $10,455,000, respectively, was recorded in other assets, long-term. Investment in Limited Partnership Fund In July 2019, the Company made its initial capital contribution to a limited partnership fund focusing on highly relevant technologies and start-up companies serving defense and industrial markets. The Company made additional contributions of $1,173,000, $977,000 and $525,000 on July 15, 2020, January 4, 2021 and March 24, 2021, respectively. Under the terms of the limited partnership agreement, the Company has committed to make additional capital contributions of $2,377,000 to the fund. The Company accounts for investments in limited partnerships as equity method investments as the Company is deemed to have influence when it holds more than a minor interest. At April 30, 2021 and 2020, the Company recorded its ownership percentage of the net (gain) loss of the limited partnership, or $(49,000) and $394,000, respectively, in equity method investment loss, net of deferred taxes of $11 and $111,000, respectively, in the consolidated statements of income. At April 30, 2021 and 2020, the carrying value of the investment in the limited partnership of $7,168,000 and $4,442,000, respectively, was recorded in available-for-sale long-term investments. Summarized financial information of the equity method investments are as follows: April 30, 2021 2020 (In thousands) Current assets $ 9,106 $ 67,387 Noncurrent assets 65,717 170,602 Current liabilities 76,492 72,505 Year Ended April 30, 2021 2020 2019 (In thousands) Revenues $ 159 $ 25 $ — Gross loss (1,241) (1,331) — Realized and unrealized losses on investments (131,971) (7,028) — Net loss (190,454) (85,818) (63,107) |
Warranty Reserves
Warranty Reserves | 12 Months Ended |
Apr. 30, 2021 | |
Warranty Reserves | |
Warranty Reserves | 10. Warranty Reserves Warranty reserve activity is summarized as follows: April 30, 2021 2020 (In thousands) Beginning balance $ 2,015 $ 1,704 Warranty expense 1,650 2,258 Changes in estimates related to pre-existing warranties — (189) Warranty costs settled (1,324) (1,758) Ending balance $ 2,341 $ 2,015 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. During the fiscal year ended April 30, 2020, the Company revised its estimates based on the results of additional engineering studies to $302,000. As of April 30, 2020 and 2019, the Company had no remaining warranty reserve related to the estimated costs to repair the impacted UAS and $251,000, respectively. During the fiscal year ended April 30, 2020, the Company incurred total costs related to this warranty of $288,000. |
Employee Savings Plan
Employee Savings Plan | 12 Months Ended |
Apr. 30, 2021 | |
Employee Savings Plan | |
Employee Savings Plan | 11. Employee Savings Plan The Company has an employee 401(k) savings plan covering all eligible employees. The Company expensed approximately $5,764,000, $4,744,000 and $3,961,000 in contributions to the plan for the years ended April 30, 2021, 2020 and 2019, respectively. |
Debt
Debt | 12 Months Ended |
Apr. 30, 2021 | |
Debt | |
Debt | 12. Debt In connection with the consummation of the Arcturus Acquisition on February 19, 2021, the Company, as borrower, and Arcturus, as guarantor, entered into a Credit Agreement with certain lenders, letter of credit issuers, Bank of America, N.A., as the administrative agent and the swingline lender, and BofA Securities, Inc., JPMorgan Chase Bank, N.A., and U.S. Bank National Association, as joint lead arrangers and joint bookrunners (the “Credit Agreement”). The Credit Agreement and its associated Security and Pledge Agreement set forth the terms and conditions for (i) a five-year $100 million revolving credit facility, which includes a $10 million sublimit for the issuance of standby and commercial letters of credit (the “Revolving Facility”), and (ii) a five-year amortized $200 million term A loan (the “Term Loan Facility”, and together with the Revolving Facility, the “Credit Facilities”). Certain existing letters of credit issued by JPMorgan Chase Bank were reserved for under the Revolving Facility at closing and remain outstanding under the terms thereof. Upon execution of the Credit Agreement, the Company drew the full principal of the Term Loan Facility for use in the acquisition of Arcturus. The Term Loan Facility requires payment of 5% of the outstanding obligations in each of the first four loan years, with the remaining 80% payable in loan year five, consisting of three quarterly payments of 1.25% each, with the remaining outstanding principal amount of the Term Loan Facility due and payable on the final maturity date. Proceeds from the Term Loan Facility were used in part to finance a portion of the cash consideration for the Arcturus acquisition. Borrowings under the Revolving Facility may be used for working capital and other general corporate purposes. The Credit Facilities provide the Company with a choice of interest rates between (a) LIBOR (with a 0% floor) plus the Applicable Margin; or (b) Base Rate (defined as the highest of (a) the Federal Funds Rate plus one-half percent (0.50%), (b) the Bank of America prime rate, and (c) the one (1) month LIBOR plus one percent (1.00%)) plus the Applicable Margin. The Applicable Margin is based upon the Consolidated Leverage Ratio (as defined in the Credit Agreement) and whether the Company elects LIBOR (ranging from 1.50 - 2.25%) or Base Rate (ranging from 0.50 - 1.25%). The Company is also responsible for certain commitment fees from 0.20-0.35% depending on the Consolidated Leverage Ratio, and administrative agent expenses incurred in relation to the Credit Facilities. In the event of a default, an additional 2% default interest rate in addition to the applicable rate if specified or the Base Rate plus Applicable Margin if an applicable rate is not specified. Any borrowing under the Credit Agreement may be repaid, in whole or in part, at any time and from time to time without premium or penalty other than customary breakage costs, and any amounts repaid under the Revolving Facility may be reborrowed. Mandatory prepayments are required under the revolving loans when borrowings and letter of credit usage exceed the aggregate revolving commitments of all lenders. Mandatory prepayments are also required in connection with the disposition of assets to the extent not reinvested and unpermitted debt transactions. In support of its obligations pursuant to the Credit Facilities, the Company has granted security interests in substantially all of the personal property of the Company and its domestic subsidiaries, including a pledge of the equity interests in its subsidiaries (limited to 65% of outstanding equity interests in the case of foreign subsidiaries), and the proceeds thereof, with customary exclusions and exceptions. The Company’s existing and future domestic subsidiaries, including Arcturus (as of the closing of its acquisition by the Company), will be guarantors for the Credit Facilities. The Credit Agreement contains certain customary representations and warranties and affirmative and negative covenants, including certain restrictions on the ability of the Company and its Subsidiaries (as defined in the Credit Agreement) to incur any additional indebtedness or guarantee indebtedness of others, to create liens on properties or assets, or to enter into certain asset and stock-based transactions. In addition, the Credit Agreement includes certain financial maintenance covenants, requiring that (x) the Consolidated Leverage Ratio (as defined in the Credit Agreement) shall not be more than 3.00 to 1.00 as of the end of any fiscal quarter and (y) the Consolidated Fixed Charge Coverage Ratio (as defined in the Credit Agreement) shall not be less than 1.25 to 1.00 as of the end of any fiscal quarter. As of April 30, 2021, the Company is in compliance with all covenants. The Credit Agreement contains certain customary events of default, which include failure to make payments when due thereunder, the material inaccuracy of representations or warranties, failure to observe or perform certain covenants, cross-defaults, bankruptcy and insolvency-related events, certain judgments, certain ERISA-related events, invalidity of loan documents, or a Change of Control (as defined in the Credit Agreement). Upon the occurrence and continuation of an event of default, the Lenders may cease making future loans under the Credit Agreement and may declare all amounts owing under the Credit Agreement to be immediately due and payable. Long-term debt and the current period interest rates were as follows: Year Ended April 30, 2021 (In thousands) Term loans $ 200,000 Revolving credit facility — Total debt 200,000 Less current portion 10,000 Total long-term debt, less current portion 190,000 Less unamortized debt issuance costs - term loans 2,488 Total long-term debt, net of unamortized debt issuance costs - term loans $ 187,512 Unamortized debt issuance costs - revolving credit facility $ 1,244 Future long-term debt principle payments at April 30, 2021 were as follows: (In thousands) 2022 $ 10,000 2023 10,000 2024 10,000 2025 10,000 2026 160,000 $ 200,000 |
Leases
Leases | 12 Months Ended |
Apr. 30, 2021 | |
Leases | |
Leases | 13. Leases The Company leases certain buildings, land and equipment. At contract inception the Company determines whether the contract is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are recorded in operating lease right-of-use assets, current operating lease liabilities and non-current operating lease liabilities. The Company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses its incremental borrowing rate based on the information available at commencement date to determine the present value of future payments and the appropriate lease classification. The Company defines the initial lease term to include renewal options determined to be reasonably certain. The Company’s leases have remaining lease terms of less than one year to nine years, some of which may include options to extend the lease for up to 10 years, and some of which may include options to terminate the lease after two years. If the Company determines it is reasonably certain of exercising an option to extend or terminate, the option is included in the Company’s determination of lease assets and liabilities. For operating leases, the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Many of the Company’s real estate lease agreements contain incentives for tenant improvements, rent holidays, or rent escalation clauses. For tenant improvement incentives, if the incentive is determined to be a leasehold improvement owned by the lessee, the Company generally records incentive as a reduction to fixed lease payments thereby reducing rent expense. For rent holidays and rent escalation clauses during the lease term, the Company records rental expense on a straight-line basis over the term of the lease. For these lease incentives, the Company uses the date of initial possession as the commencement date, which is generally when the Company is given the right of access to the space and begins to make improvements in preparation for intended use. The Company does not have any finance leases. The Company does not have any material restrictions or covenants in its lease agreements, sale-leaseback transactions, land easements or residual value guarantees. In determining the inputs to the incremental borrowing rate calculation, the Company makes judgments about the value of the leased asset, its credit rating and the lease term including the probability of its exercising options to extend or terminate the underlying lease. Additionally, the Company makes judgments around contractual asset substitution rights in determining whether a contract contains a lease. The components of lease costs recorded in cost of sales for product sales and contract services and selling, general and administrative (“SG&A”) expense were as follows (in thousands): Year Ended Year Ended April 30, April 30, 2021 2020 Operating lease cost $ 5,150 $ 4,574 Short term lease cost 602 500 Variable lease cost 23 987 Sublease income (91) (287) Total lease costs, net $ 5,684 $ 5,774 Supplemental lease information was as follows: Year Ended Year Ended April 30, April 30, 2021 2020 (In thousands) (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 5,070 $ 3,897 Right-of-use assets obtained in exchange for new lease liabilities $ 18,729 $ 13,022 Weighted average remaining lease term 71 months 34 months Weighted average discount rate 3.6% 3.7% Maturities of operating lease liabilities as of April 30, 2021 were as follows (in thousands): 2022 $ 6,711 2023 5,185 2024 4,496 2025 3,530 2026 2,329 Thereafter 6,572 Total lease payments 28,823 Less: imputed interest (3,566) Total present value of operating lease liabilities $ 25,257 Rental expense under operating leases was approximately $4,609,000 for the year ended April 30, 2019. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Apr. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 14. Stock-Based Compensation For the years ended April 30, 2021, 2020 and 2019, the Company recorded stock-based compensation expense of approximately $6,932,000, $6,227,000 and $6,985,000, respectively. On January 14, 2007, the stockholders of the Company approved the 2006 Equity Incentive Plan (“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 (“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 (“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 (“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, 2021, 2020 and 2019. 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, 2021, 2020 and 2019, 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, 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 granted — — — — — — Options exercised (3,000) 31.15 — — (13,189) 0.59 Options canceled — — — — — — Outstanding at April 30, 2020 334,026 25.19 — — 1,113 0.59 Options granted — — — — — — Options exercised (53,500) 28.45 — — (1,113) 0.59 Options canceled — — — — — — Outstanding at April 30, 2021 280,526 24.57 — — — — Options exercisable at April 30, 2021 280,526 $ 24.57 — $ — — $ — The total intrinsic value of all options exercised during the years ended April 30, 2021, 2020 and 2019 was approximately $4,828,000, $833,000, and $371,000, respectively. The intrinsic value of all options outstanding at April 30, 2021 and 2020 was $24,068,000 and $11,779,000, respectively. The intrinsic value of all exercisable options at April 30, 2021 and 2020 was $24,068,000 and $11,242,000, respectively. A summary of the status of the Company’s non-vested stock options as of April 30, 2021 and the year then ended is as follows: Weighted Average Grant Date Non-vested Options Options Fair Value Non-vested at April 30, 2020 16,000 $ 10.16 Granted — — Expired — — Canceled — — Vested (16,000) 10.16 Non-vested at April 30, 2021 — $ — As of April 30, 2021, there was approximately $11,737,000 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 2.4 years. No options were granted during the fiscal years ended April 30, 2021, 2020 and 2019. The total fair value of shares vesting during the years ended April 30, 2021, 2020 and 2019 was $5,312,000, $4,900,000 and $4,756,000, respectively. Proceeds from all option exercises under all stock option plans for the years ended April 30, 2021, 2020 and 2019 were approximately $1,522,000, $101,000 and $67,000, respectively. The tax benefit realized from stock-based compensation was $0 during the years ended April 30, 2021, 2020 and 2019, respectively. The following tabulation summarizes certain information concerning outstanding and exercisable options at April 30, 2021: 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 2021 Years Price 2021 Price $ 18.07 - 19.16 54,000 1.98 $ 18.26 54,000 $ 18.26 19.17 - 26.24 55,000 2.04 20.29 55,000 20.29 26.25 - 26.99 80,000 4.15 26.70 80,000 26.70 27.00 - 28.53 50,000 2.56 27.27 50,000 27.27 28.54 - 31.27 41,526 2.94 31.13 41,526 31.13 $ 18.07 - 31.27 280,526 2.86 $ 24.57 280,526 $ 24.57 The remaining weighted average contractual life of exercisable options at April 30, 2021 was 2.86 years. Information related to the Company’s restricted stock awards at April 30, 2021 and for the year then ended is as follows: Restated 2006 Plan Weighted Average Grant Date Shares Fair Value Unvested stock at April 30, 2020 201,647 $ 55.84 Stock granted 117,468 79.96 Stock vested (133,578) 39.77 Stock canceled (5,509) 72.03 Unvested stock at April 30, 2021 180,028 $ 83.02 |
Long-Term Incentive Awards
Long-Term Incentive Awards | 12 Months Ended |
Apr. 30, 2021 | |
Long-Term Incentive Awards. | |
Long-Term Incentive Awards | 15. Long-Term Incentive Awards During the three months ended August 1, 2020, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2021 LTIP”). Awards under the Fiscal 2021 LTIP consist of: (i) time-based restricted stock awards, which vest in equal tranches in July 2021, July 2022 and July 2023, 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, 2023. 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 250% 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, 2021, the Company recorded $1,072,000 of compensation expense related to the Fiscal 2021 LTIP. At April 30, 2021, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2021 LTIP is $7,784,000. During the three months ended July 27, 2019, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2020 LTIP”). Awards under the Fiscal 2020 LTIP consist of: (i) time-based restricted stock awards, which vest in equal tranches in July 2020, July 2021 and July 2022, 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, 2022. 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, 2021 and 2020, the Company recorded $620,000 and $649,000 of compensation expense related to the Fiscal 2020 LTIP. At April 30, 2021, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2020 LTIP is $4,188,000. During the three months ended July 28, 2018, the Company granted awards under 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) 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 years ended April 30, 2021, 2020 and 2019, the Company recorded $368,000, $386,000 and $572,000 of compensation expense related to the Fiscal 2019 LTIP, respectively. During the first quarter of fiscal 2022, the Company expects to issue a total of 18,541 fully-vested shares of common stock to settle the Fiscal 2019 LTIP. 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) 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 three months ended August 1, 2020, the Company issued a total of 16,228 fully-vested shares of common stock to settle the PRSUs in the Fiscal 2018 LTIP. No compensation expense was recorded during fiscal year ended April 30, 2021 for the Fiscal 2018 LTIP. 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 vested in equal tranches in July 2017, July 2018 and July 2019, and (ii) PRSUs, which vested based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2019. During the three months ended July 27, 2019, the Company issued a total of 14,814 fully-vested shares of common stock to settle the PRSUs in the Fiscal 2017 LTIP. No compensation expense was recorded during fiscal year ended April 30, 2021 for the Fiscal 2017 LTIP. At April 30, 2021 and 2020, the Company recorded cumulative stock-based compensation expense from these long-term incentive awards of $3,667,000 and $2,657,000, 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, 2021 | |
Income Taxes | |
Income Taxes | 16. Income Taxes The components of income before income taxes are as follows (in thousands): Year Ended April 30, 2021 2020 2019 Domestic $ 34,274 $ 52,730 $ 50,644 Foreign 91 (60) (166) Income from continuing operations before income taxes 34,365 52,670 50,478 Equity method investment loss (10,481) (5,487) (3,944) Total income from continuing operations before income taxes $ 23,884 $ 47,183 $ 46,534 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 is as follows: Year Ended April 30, 2021 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit (1.4) (2.1) (2.2) R&D and other tax credits (11.5) (6.8) (8.1) Valuation allowance 3.2 3.4 3.7 Return to provision adjustments (0.3) 0.1 (0.3) Permanent items 3.6 0.7 0.8 Foreign derived intangible income (7.6) (3.9) (3.7) Excess benefit of equity awards (5.7) (1.5) (3.1) Other 0.3 0.2 1.1 Effective income tax rate 1.6 % 11.1 % 9.2 % The components of the provision for income taxes are as follows (in thousands): Year Ended April 30, 2021 2020 2019 Current: Federal $ 3,094 $ 3,005 $ 1,953 State 448 390 228 Foreign — — — 3,542 3,395 2,181 Deferred: Federal (3,247) 2,063 1,945 State 244 421 551 Foreign — (31) (36) (3,003) 2,453 2,460 Total income tax expense $ 539 $ 5,848 $ 4,641 Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands): April 30, 2021 2020 Deferred income tax assets: Accrued expenses $ 4,422 $ 3,337 Stock based compensation 2,492 2,259 Allowances, reserves, and other 1,482 1,784 Outside basis difference 4,617 2,264 Unrealized loss on securities 110 9 Net operating loss and credit carry-forwards 33,155 12,832 Intangibles basis — 605 Lease liability 5,645 2,282 Total deferred income tax assets 51,923 25,372 Deferred income tax liabilities: Fixed asset basis (10,286) (1,218) Revenue recognition — (3,112) Right-of-use asset (5,119) (1,965) Intangibles basis (17,004) — Total deferred income tax liabilities (32,409) (6,295) Valuation allowance (17,453) (14,149) Net deferred tax assets $ 2,061 $ 4,928 At April 30, 2021 and 2020 the Company recorded a valuation allowance of $17,453,000 and $14,149,000, 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 $3,304,000 and $2,871,000 for April 30, 2021 and April 30, 2020, respectively. At April 30, 2021 the Company had state credit carryforwards of $28,530,000 that do not expire and federal tax credit carryforwards of $2,260,000 that expire in 2041. At April 30, 2021, the Company had federal, state and foreign net operating loss carryforwards of approximately $88,719,000, $24,685,000 At April 30, 2021 and 2020, the Company had approximately $17,556,000 and $14,347,000, respectively, of unrecognized tax benefits all of which would impact the Company’s effective tax rate if recognized. The Company estimates that $1,324,000 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, 2021 and 2020 (in thousands): April 30, 2021 2020 Balance as of May 1 $ 14,347 $ 12,593 Increases related to prior year tax positions 1,305 62 Decreases related to prior year tax positions (116) — Increases related to current year tax positions 2,074 1,971 Decreases related to lapsing of statute of limitations (54) (279) Balance as of April 30 $ 17,556 $ 14,347 The Company records interest and penalties on uncertain tax positions to income tax expense. As of April 30, 2021 and 2020, the Company had accrued approximately $23,000 and $21,000, respectively, of interest and penalties related to uncertain tax positions. The Company is currently under audit by various state jurisdictions. The 2017 to 2020 tax years remain open to examination by the IRS for federal income taxes. The tax years 2010 to 2012 and 2016 to 2020 remain open for major state taxing jurisdictions. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, a $2 trillion relief package comprising a combination of tax provisions and other stimulus measures. The CARES Act broadly provides entities tax payment relief and significant business incentives and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act, or the Tax Act. The tax relief measures for entities include a five-year net operating loss carry back, increases interest expense deduction limits, acceleration of alternative minimum tax credit refunds, payroll tax relief, and a technical correction to allow accelerated deductions for qualified improvement property. The Act also provides other non-income tax benefits, including federal funding for a range of stabilization measures and emergency funding to assist those impacted by the COVID-19 pandemic. Similar legislation is being enacted in other jurisdictions in which the Company operates. ASC Topic 740, Income Taxes, requires the effect of changes in tax rates and laws on deferred tax balances to be recognized in the period in which new legislation is enacted. The enactment of the CARES Act and similar legislation in other jurisdictions in which the Company operates was not material to the Company’s income tax benefit for the year ended April 30, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Apr. 30, 2021 | |
Accumulated Other Comprehensive Income. | |
Accumulated Other Comprehensive Income | 17. Accumulated Other Comprehensive Income The components of accumulated other comprehensive income are as follows (in thousands): Total Accumulated Other Available-for-Sale Foreign Currency Comprehensive Securities Translation Adjustments Income Total accumulated other comprehensive income balance as of April 30, 2020 $ 50 $ 278 $ 328 Changes in foreign currency translation adjustments — 75 75 Unrealized losses, net of $1 of taxes (60) — (60) Total accumulated other comprehensive income balance as of April 30, 2021 $ (10) $ 353 $ 343 |
Changes in Accounting Estimates
Changes in Accounting Estimates | 12 Months Ended |
Apr. 30, 2021 | |
Changes in Accounting Estimates | |
Changes in Accounting Estimates | 18. Changes in Accounting Estimates During the years ended April 30, 2021, 2020 and 2019, the Company revised its estimates at completion of various 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. During the year ended April 30, 2021, 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 to revenue of approximately $1,041,000. During the year ended April 30, 2020, the Company revised its estimates of the total expected costs to complete a TMS contract and a contract associated with a design and development agreement. 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 $1,403,000 and an increase of approximately $1,099,000, respectively. The changes in estimates resulted in cumulative catch-up adjustments to revenue for the years ended April 30, 2019 were not material. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2021 | |
Related Party Transactions | |
Related Party Transactions | 19. Related Party Transactions Pursuant to a consulting agreement, the Company paid a board member approximately $29,000, $59,000 and $55,000 for fiscal years ended April 30, 2021, 2020 and 2019, 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 $180,806,000, 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 $42,426,000, $60,864,000 and $55,407,000 for the fiscal years ended April 30, 2021, 2020 and 2019, respectively. At April 30, 2021 and 2020, the Company had unbilled related party receivables from HAPSMobile of $544,000 and $15,779,000 recorded in unbilled receivables and retentions on the consolidated balance sheet, respectively. As of April 30, 2021, the Company owned approximately a 7% stake. Refer to Note 9 – Equity Method Investments for further details. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 20. Commitments and Contingencies Commitments The Company’s operations are conducted in leased facilities. Refer to Note 13—Leases for additional information. 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. The Company has recorded a litigation reserve related to the settlement offer made to Webasto. Refer to Note 2—Discontinued Operations for further details. At April 30, 2021 and 2020, the Company had outstanding letters of credit totaling $5,029,000 and $2,716,000, 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, 2019, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2016 and 2017 without payment of any consideration. During the fiscal year ended April 30, 2020, the Company settled rates for its incurred cost claims with the DCAA for fiscal year 2015 for an amount not significant. At April 30, 2021 and 2020, the Company had no reserve for open incurred cost claim audits. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Apr. 30, 2021 | |
Business Acquisitions | |
Business Acquisitions | 21. Business Acquisitions Arcturus Acquisition On February 19, 2021, the Company closed its acquisition of Arcturus pursuant to the terms of the Arcturus Purchase Agreement. Arcturus, headquartered in Petaluma, California, designs, engineers, tools, and manufactures unmanned aerial and aircraft systems including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related generally to unmanned aircraft systems. Pursuant to the Arcturus Purchase Agreement, at the closing of the Arcturus Acquisition, the Company paid approximately $422,602,000, net of cash acquired (subject to certain customary adjustments and escrow arrangements set forth in the Arcturus Purchase Agreement), financed with a combination of approximately $150,218,000 of cash-on-hand, $200,000,000 of financing pursuant to the Term Loan Facility and the issuance of approximately $72,384,000 of unregistered, restricted shares of common stock. As specified in the Arcturus Purchase agreement, the number of shares issued was determined based on a value of $50,000,000 and a calculated average price as of the last business day prior to execution of the Arcturus Purchase Agreement. The final cash consideration is subject to certain customary adjustments, including for net working capital, cash, debt and unpaid transaction expenses (including change in control related payments triggered by the transaction) of Arcturus at the Arcturus closing, less $6,500,000 to be held in escrow to address final purchase price adjustments post-Arcturus closing, if any (the “Adjustment Escrow”), and $1,822,500 to be held in escrow to address Arcturus’s and/or the Sellers’ indemnification obligations (the “Indemnification Escrow”). The Adjustment Escrow, less any negative post-closing adjustment to the cash consideration paid at closing, is to be released to the Arcturus Sellers upon completion of the post-Arcturus closing purchase price adjustment process; the Indemnification Escrow, less any amounts paid or reserved, is to be released to the Arcturus Sellers 12 months following the Arcturus closing. To further address potential breaches of Arcturus’s and the Sellers’ representations and warranties beyond the application of the Indemnification Escrow, the Company also obtained representation and warranty insurance policies providing $40,000,000 in coverage, subject to customary terms, exclusions and retention amounts. The following table summarizes the provisional allocation of the purchase price over the estimated fair value of the assets and liabilities assumed in the acquisition of Arcturus (in thousands): February 19, 2021 Fair value of assets acquired: Accounts receivable 6,050 Unbilled receivable 4,176 Inventories, net 21,701 Prepaid and other current assets 3,076 Property and equipment, net 38,739 Operating lease assets 11,429 Other assets 136 Technology 20,500 Customer relationships 62,700 Goodwill 288,611 Total assets acquired 457,118 Fair value of liabilities assumed: Accounts payable 3,085 Wages and related accruals 1,698 Customer advances 1,818 Other current liabilities 8,534 Operating lease liabilities 12,297 Other non-current liabilities 1,190 Deferred income taxes, net 5,869 Total liabilities assumed 34,491 Total identifiable net assets 422,627 Fair value of consideration transferred: Cash consideration, net of cash acquired $ 350,243 Equity consideration 72,384 Total consideration 422,627 Determining the fair value of the intangible assets acquired requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. The fair value of the intangibles assets was determined using a discounted cash flow analysis, which were based on the Company’s preliminary estimates of future sales, earnings and cash flows after considering such factors as general market conditions, anticipated customer demand, changes in working capital, long term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. The goodwill is attributable to the synergies the Company expects to achieve through leveraging the acquired technology to its existing customers, the workforce of Arcturus and expected future customers in the MUAS market. For tax purposes the acquisition was treated as a stock purchase and the goodwill is not deductible. Supplemental Pro Forma Information (unaudited) Arcturus revenue and loss from operations for the year ended April 30, 2021 since acquisition on February 19, 2021 was $15,837,000 and $1,869,000, respectively. The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2019 (in thousands): Year Ended April 30, April 30, 2021 2020 Revenue $ 478,579 $ 454,769 Net income attributable to AeroVironment, Inc. $ 27,572 $ 31,264 The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings. These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 27, 2019, reflecting the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from May 1, 2019 with the consequential tax effects, and including the results of Arcturus prior to acquisition. The Company incurred approximately $6,015,000 acquisition-related expenses for the year ended April 30, 2021. These expenses are included in selling, general and administrative expense on the Company’s consolidated statement of operations. 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, 2019, nor are they indicative of results of operations that may occur in the future. ISG Acquisition On February 23, 2021, the Company purchased certain assets of, and assumed certain liabilities of, ISG pursuant to the terms of the ISG Purchase Agreement. ISG is engaged in development of artificial intelligence-enabled computer vision, machine learning and perceptive autonomy technologies and provides related services to United States government customers. In connection with the ISG Acquisition, the Company (i) paid a base purchase price of $29,700,000 in cash at closing and (ii) may pay additional cash consideration of up to $6,000,000, which is held in escrow account not controlled by the Company, based on the achievement of certain revenue targets by ISG during the 3 years following closing, in each case, subject to the terms and conditions of the ISG Purchase Agreement, including certain customary adjustments. As a condition to closing pursuant to the ISG Purchase Agreement, the Company and the ISG Seller entered into certain ancillary agreements, including a transition services agreement and two subleases pursuant to which the ISG Seller will provide the Company certain services and facilities space to accommodate the transition of ISG to the Company. The parties to the ISG Purchase Agreement have made representations, warranties, and covenants that are customary for a transaction of this type, including, among other things, restrictions on the ISG Seller and the Beneficial Owner from engaging in certain competitive activities, as well as mutual indemnification obligations between the Company and the ISG Seller. To supplement certain indemnifications provided by the ISG Seller, the Company obtained a representation and warranty insurance policy. The following table summarizes the provisional allocation of the purchase price over the estimated fair value of the assets and liabilities assumed in the ISG Acquisition (in thousands): February 23, 2021 Technology $ 11,400 Customer relationships 4,500 Other assets 217 Goodwill 19,254 Total net identified assets acquired $ 35,371 Fair value of consideration: Cash $ 29,700 Holdback 150 Contingent consideration 5,521 Total $ 35,371 Determining the fair value of the intangible assets acquired requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. The fair value of the intangibles assets was determined using a discounted cash flow analysis, which were based on the Company’s preliminary estimates of future sales, earnings and cash flows after considering such factors as general market conditions, anticipated customer demand, changes in working capital, long term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. The goodwill is attributable to the synergies the Company expects to achieve through leveraging the acquired technology to its existing customers. For tax purposes the acquisition was treated as an asset purchase and the goodwill is deductible ratably over a period of fifteen years. Supplemental Pro Forma Information (unaudited) ISG revenue for the year ended April 30, 2021 since acquisition on February 23, 2021 was $1,724,000. Other than the aforementioned revenue and intangible asset amortization expense of $474,000 for the year ended April 30, 2021 since the acquisition on February 23, 2021, the ISG financial results were not significant. The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2019 (in thousands): Year Ended April 30, April 30, 2021 2020 Revenue $ 406,444 $ 379,627 Net income attributable to AeroVironment, Inc. $ 23,787 $ 39,025 The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings. These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 27, 2019, reflecting the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from May 1, 2019 with the consequential tax effects, and including the results of ISG prior to acquisition. The Company incurred approximately $954,000 acquisition-related expenses for the year ended April 30, 2021. These expenses are included in selling, general and administrative expenses on the Company’s consolidated statement of operations. 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, 2019, nor are they indicative of results of operations that may occur in the future. Pulse Acquisition On June 10, 2019, the Company purchased 100% of the issued and outstanding member units of Pulse pursuant to the terms of the Pulse Purchase Agreement. The Company’s acquisition of Pulse’s helicopter UAS 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, 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 as of the closing date. The Company financed the acquisition entirely from available cash on hand. During fiscal year ended April 30, 2021, the Company paid a total of $1,492,000 in holdback and retention payments. In addition to the consideration paid at closing, the acquisition of Pulse included contingent consideration arrangements that required additional consideration to be paid by the Company to the sellers of Pulse if two specified research and development milestones were achieved by December 10, 2021 and the continued employment of specified employees. Amounts were payable upon the achievement of the milestones. The range of the undiscounted amounts the Company could pay under each of the contingent consideration agreements was zero or $2,500,000 ($5,000,000 in total if both milestones are achieved and specific key employees continued employment). The fair value of the contingent consideration recognized on the acquisition date of $1,703,000 was estimated by applying the income approach. That measure was based on significant Level 3 inputs not observable in the market. Key assumptions include (1) a discount rate of 4.5% and (2) the probability that each of the milestones would be achieved. During the year ended April 30, 2020, one of the research and development milestones was achieved, and the requirements for the payout of remaining contingent consideration were concluded to not have been met. As a result, the Company recorded a gain of $832,000 which was recorded in selling, general, and administrative expense in the consolidated statements of income. On February 26, 2020, $2,500,000 of contingent consideration was paid to the sellers for the achieved milestone. During the fiscal year ended April 30, 2020, the Company finalized its determination of the fair value of the assets and liabilities assumed as of the acquisition date, which is summarized in the following table (in thousands): June 10, 2019 Technology $ 14,950 Goodwill 6,340 In-process R&D 550 Inventory 334 Non-compete agreements 320 Other assets, net of liabilities assumed (614) Total net identified assets acquired $ 21,880 Fair value of consideration: Cash $ 18,677 Holdback 1,250 Retention 250 Contingent consideration 1,703 Total $ 21,880 Determining the fair value of the intangible assets acquired requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. The fair value of the intangibles assets was determined using a discounted cash flow analysis, which were based on the Company’s best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, anticipated customer demand, changes in working capital, long term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. The goodwill is attributable to the synergies the Company expects to achieve through leveraging the acquired technology to its existing customers, the workforce of Pulse and expected future customers in the helicopter UAS market. For tax purposes the acquisition was treated as an asset purchase and the goodwill is deductible ratably over a period of fifteen years. Supplemental Pro Forma Information (unaudited) Pulse revenue for the year ended April 30, 2020 since acquisition on June 10, 2019 was $6,607,000. Other than the aforementioned revenue and intangible asset amortization expense of $2,461,000 for the year ended April 30, 2020 since the acquisition on June 10, 2019, the Pulse financial results were not significant. The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2018 (in thousands): Year Ended April 30, April 30, 2020 2019 Revenue $ 367,523 $ 316,878 Net income attributable to AeroVironment, Inc. $ 41,481 $ 43,204 The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings. These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 28, 2018, reflecting the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from May 1, 2018 with the consequential tax effects, and including the results of Pulse prior to acquisition. The Company did not incur significant acquisition-related expenses for the year ended April 30, 2020. These expenses are included in selling, general and administrative, research and development, and product cost of sales on the Company’s consolidated statement of operations. 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, 2018, nor are they indicative of results of operations that may occur in the future. |
Segments
Segments | 12 Months Ended |
Apr. 30, 2021 | |
Segments | |
Segments | 22. Segments The Company’s product segments are as follows: Unmanned Aircraft Systems—The UAS segment focuses primarily on the design, development, production, delivery and support of a technologically advanced portfolio of intelligent, multi-domain robotic systems and related services for government agencies and businesses. AeroVironment, Inc. supplies unmanned aircraft systems (“UAS”), tactical missile systems (“TMS”) and related services primarily to organizations within the U.S. Department of Defense (“DoD”) and to international allied governments. Medium Unmanned Aircraft Systems—The MUAS segment, which originates with the acquisition of Arcturus, focuses on designs, engineers, tools, and manufactures unmanned aerial and aircraft systems including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related generally to unmanned aircraft systems including ISR services. The accounting policies of the segments are the same as those described in Note 1, “Organization and Significant Accounting Policies.” The operating segments do not make sales to each other. The segment results are as follows (in thousands): Year Ended April 30, 2021 2020 2019 Revenue: UAS $ 379,075 $ 367,296 $ 314,274 MUAS 15,837 — — Total 394,912 367,296 314,274 Gross margin: UAS 161,593 153,102 128,403 MUAS 2,965 — — Total 164,558 153,102 128,403 Income (loss) from continuing operations: UAS 45,182 47,135 33,826 MUAS (1,869) — — Total 43,313 47,135 33,826 Total assets UAS 439,320 584,954 508,844 MUAS 489,246 — — Total 928,566 584,954 508,844 |
Geographic Information
Geographic Information | 12 Months Ended |
Apr. 30, 2021 | |
Geographic Information | |
Geographic Information | 23. Geographic Information Sales to non-U.S. customers, including U.S. government foreign military sales in which an end user is a foreign government, accounted for 39%, 45% and 52% of revenue for each of the fiscal years ended April 30, 2021, 2020 and 2019, respectively. With the acquisition of Arcturus, the Company deploys in-service assets internationally, which as of April 30, 2020 was $36,047,000. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2021 | |
Subsequent Events. | |
Subsequent Events | 24. Subsequent Events Telerob Acquisition On May 3, 2021, the Company closed its acquisition of Telerob Gesellschaft für Fernhantierungstechnik mbH, a German company based in Ostfildern (near Stuttgart), Germany (“Telerob”), including Telerob’s wholly owned subsidiary, Telerob USA, Inc. (“Telerob USA,” and collectively with Telerob, the “Telerob Group”) pursuant to its previously announced Share Purchase Agreement (the “Purchase Agreement”) with Unmanned Systems Investments GmbH, a German limited liability company incorporated under the laws of Germany (the “Seller”), and each of the unit holders of the Seller (collectively, the “Shareholders”), to purchase 100% of the issued and outstanding shares of Seller’s wholly-owned subsidiary Telerob (the “Acquisition”). Upon closing of the transactions contemplated by the Purchase Agreement, Telerob became a wholly-owned subsidiary of the Company. Pursuant to the Purchase Agreement at closing, the Company paid €37,455,000 (approximately $45,400,000) in cash to the Seller (subject to certain purchase price adjustments as set forth in the Purchase Agreement), less (a) €3,000,000 (approximately $3,636,000) to be held in escrow for breaches of the Seller’s fundamental warranties or any other of Seller’s warranties to the extent not covered by a representation and warranty insurance policy (the “RWI Policy”) obtained by the Company in support of certain indemnifications provided by the Seller; (b) transaction-related fees and costs incurred by the Seller, including change in control payments triggered by the transaction; and (c) 50% of the cost of obtaining the RWI Policy. In addition, at closing the Company paid off approximately €7,811,000 (approximately $9,468,000), of certain indebtedness of the Telerob Group, which amount was paid in combination to the Seller and the lender under an agreement between Telerob and the lender providing for a reduced payoff amount. This indebtedness was offset by cash on hand at the Telerob Group at closing. The escrow amount is to be released to the Seller, less any amounts paid or reserved, 30 months following the closing date. In addition to the consideration paid at closing, the Seller may receive €2,000,000 (approximately $2,424,000) in additional cash consideration if specific revenue targets for the Telerob Group are achieved during the 12 month period after closing beginning on the first day of the calendar month following the closing (the “First Earnout Year”) and an additional €2,000,000 (approximately $2,424,000) in cash consideration if specific revenue targets for the Telerob Group are achieved in the 12 month period following the First Earnout Year. The Seller may also receive up to €2,000,000 (approximately $2,424,000) in additional cash consideration if specific awards and/or orders from the U.S. military are achieved prior to the end of a 36-month post-closing period. SoftBank Agreement On May 29, 2021, the Company entered into an amendment to the DDA with HAPSMobile. The parties agreed to the amendment in anticipation of the Company and SoftBank entering into a Master Design and Development Agreement with each other to continue the design and development of the Solar HAPS aircraft developed under the DDA. On May 29, 2021, the Company and SoftBank entered into a Master Design and Development Agreement (“MDDA”) to continue the development of Solar HAPS. Pursuant to the MDDA, which has a five-year term, SoftBank will issue orders to the Company for the Company to perform design and development services and produce deliverables as specified in the applicable order(s). Upon the execution of the MDDA, SoftBank issued to the Company, and the Company accepted, the first order under the MDDA which has a maximum value of approximately $51,200,000. Concurrent with the execution of the MDDA, each of SoftBank and the Company agreed to lend HAPSMobile JPY500,000,000 ($4,600,000), which loans are convertible into shares of HAPSMobile under certain conditions, and to cooperate with each other to explore restructuring and financing options for HAPSMobile to continue the development of Solar HAPS. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Apr. 30, 2021 | |
Quarterly Results of Operations (Unaudited) | |
Quarterly Results of Operations (Unaudited) | 25. Quarterly Results of Operations (Unaudited ) The following tables present selected unaudited consolidated financial data for each of the eight quarters in the two-year period ended April 30, 2021. In the Company’s opinion, this unaudited information has been prepared on the same basis as the audited information and includes all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of the financial information for the period presented. The Company’s fiscal year ends on April 30. Due to the fixed year end date of April 30, the first and fourth quarters each consist of approximately 13 weeks. The second and third quarters each consist of exactly 13 weeks. The first three quarters end on a Saturday. Three Months Ended August 1, 2020 October 31, 2020 January 30, 2021 April 30, 2021 (In thousands except per share data) Year ended April 30, 2021 Revenue $ 87,450 $ 92,665 $ 78,782 $ 136,015 Gross margin $ 35,411 $ 40,851 $ 28,641 $ 59,655 Net income attributable to AeroVironment, Inc. from continuing operations $ 10,080 $ 2,094 (1) $ 211 $ 10,946 (2) Net income per share attributable to AeroVironment, Inc. from continuing operations—basic(3) $ 0.42 $ 0.09 (1) $ 0.01 $ 0.45 (2) Net income per share attributable to AeroVironment, Inc. from continuing operations—diluted(3) $ 0.42 $ 0.09 (1) $ 0.01 $ 0.44 (2) Three Months Ended July 27, October 26, January 25, April 30, 2019 2019 2020 2020 (In thousands except per share data) Year ended April 30, 2020 Revenue $ 86,911 $ 83,271 $ 61,891 $ 135,223 Gross margin $ 41,272 $ 35,166 $ 23,496 $ 53,168 Net (loss) income attributable to AeroVironment, Inc. from continuing operations $ 17,110 $ 7,501 $ (1,008) $ 17,736 Net (loss) income per share attributable to AeroVironment, Inc. from continuing operations—basic(3) $ 0.72 $ 0.32 $ (0.04) $ 0.74 Net (loss) income per share attributable to AeroVironment, Inc. from continuing operations—diluted(3) $ 0.71 $ 0.31 $ (0.04) $ 0.73 (1) Includes a loss of $8.4 million for the Company’s proportionate share of the HAPSMobile Inc. joint venture’s impairment of its investment in Loon LLC recorded to “Equity method investment loss, net of tax” in the consolidated statement of operations. (2) Includes a $9.3 million legal accrual related to our former EES Business recorded to “Other (expense) income, net” in the consolidated statement of operations. (3) Earnings per share is computed independently for each of the quarters presented. The sum of the quarterly earnings per share may not equal the total earnings per share computed for the year due to rounding. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Apr. 30, 2021 | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SUPPLEMENTARY DATA SCHEDULE II— VALUATION AND QUALIFYING ACCOUNTS Additions Balance at Balance Charged to Charged to Balance at Beginning Acquired from Costs and Other End of Description of Period Acquisition Expenses Accounts Deductions Period (In thousands) Allowance for doubtful accounts for the year ended April 30: 2019 $ 1,080 $ — $ 198 $ — $ (237) $ 1,041 2020 $ 1,041 $ — $ 219 $ — $ (70) $ 1,190 2021 $ 1,190 $ — $ 82 $ — $ (677) $ 595 Warranty reserve for the year ended April 30: 2019 $ 2,090 $ — $ 702 $ — $ (1,088) $ 1,704 2020 $ 1,704 $ — $ 2,069 $ — $ (1,758) $ 2,015 2021 $ 2,015 $ — $ 1,650 $ — $ (1,324) $ 2,341 Reserve for inventory excess and obsolescence for the year ended April 30: 2019 $ 3,953 $ — $ 5,054 $ — $ (1,183) $ 7,824 2020 $ 7,824 $ — $ 5,377 $ — $ (2,969) $ 10,232 2021 $ 10,232 $ 1,415 $ 1,178 $ — $ (2,536) $ 10,289 Reserve for self-insured medical claims for the year ended April 30: 2019 $ 1,003 $ — $ 10,808 $ — $ (10,867) $ 944 2020 $ 944 $ — $ 13,031 $ — $ (13,222) $ 753 2021 $ 753 $ — $ 11,329 $ — $ (10,789) $ 1,293 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2021 | |
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: Arcturus UAV, Inc. (“Arcturus”) and 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”). In February 2019, the Company dissolved AeroVironment International PTE. LTD., the results of which were not material to the consolidated financial statements. In October 2019, the Company dissolved its wholly-owned subsidiary, Skytower, Inc., 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. 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 assets, liabilities and operating results of Pulse have been included in the Company’s consolidated financial statements. In February 2021, the Company dissolved its wholly-owned subsidiary, Pulse Aerospace, LLC, the results of which were not material to the consolidated financial statements. Refer to Note 21—Business Acquisitions for further details. On February 19, 2021, the Company closed its acquisition of Arcturus, a California corporation pursuant to a Stock Purchase Agreement (the “Arcturus Purchase Agreement”) with Arcturus and each of the shareholders and other equity interest holders of Arcturus (collectively, the “Arcturus Sellers”), to purchase 100% of the issued and outstanding equity of Arcturus (the “Arcturus Acquisition”). The assets, liabilities and operating results of Arcturus have been included in the Company’s consolidated financial statements. Refer to Note 21—Business Acquisitions for further details. On February 23, 2021, the Company purchased certain assets of, and assumed certain liabilities of, the Intelligent Systems Group business segment (“ISG”) of Progeny Systems Corporation, a Virginia corporation (the “ISG Seller”), pursuant to the terms of an Asset Purchase Agreement (the “ISG Purchase Agreement”) of the same date by and among the Company, ISG Seller and the sole shareholder of ISG Seller (the “Beneficial Owner,” and such acquisition of ISG, the “ISG Acquisition”). The assets, liabilities and operating results of ISG have been included in the Company’s consolidated financial statements. Refer to Note 21—Business Acquisitions 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. Refer to Note 9 – Equity Method Investments for further details. In July 2019, the Company made its initial capital contribution to a limited partnership fund focusing on highly relevant technologies and start-up companies serving defense and industrial markets. The Company accounts for investments in limited partnerships as equity method investments as the Company is deemed to have influence when it holds more than a minor interest. Refer to Note 9 – 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”), based on UAS and MUAS operating units. Accordingly, the Company operates its business as two reportable segments, UAS and MUAS. |
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, acquired intangibles, goodwill, 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. Specifically, the Company’s existing intangible assets have been reclassified from other assets to intangibles, net on the consolidated balance sheet for all periods presented. |
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. |
Restricted Cash | Restricted Cash The Company classifies cash accounts which are not available for general use as restricted cash. Pursuant to the terms of the Arcturus Purchase Agreement, the Company maintains escrow accounts to address final purchase price adjustments post-Arcturus Closing, if any and to address Arcturus UAV’s and/or the Sellers’ indemnification obligations. The restricted funds in the escrow account are recorded in other assets on the consolidated balance sheet. As of April 30, 2021 restricted cash was $8,322,000. The Company had no restricted cash as of April 30, 2020. |
Investments | Investments The Company’s investments are accounted for as held-to-maturity reported at amortized cost and available-for-sale reported at fair value. 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, 69%, 61% and 58% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2021, 2020 and 2019, respectively. These agencies accounted for 64% and 62% of the accounts receivable balances at April 30, 2021 and 2020, respectively. One such agency, the U.S. Army, accounted for 34%, 32% and 28% of the Company’s consolidated revenue for the years ended April 30, 2021, 2020 and 2019, 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 allied foreign governments, 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, 2021 and 2020, the retention balances were $700,000 and $717,000, respectively. The Company determines the allowance for doubtful accounts based on historical customer experience, age of receivable 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 expected credit losses over the life of the receivable; 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 In-service ISR assets 3 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of useful life or term of 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 fiscal year 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 8 – 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 technology, in-process research and development, customer relationships, trademarks and tradenames, and non-compete agreements. 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 estimated useful life for the Company’s intangible assets are as follows: Technology 3 Licenses 3 years Customer relationships 3 - 5 years In-process research and development 3 years Trademarks and tradenames 6 years Non-compete agreements Contractual term 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. No impairment was recorded for the fiscal years ended April 30, 2021, 2020 or 2019. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill is tested for impairment annually during the fourth quarter of the Company’s fiscal year or when events or circumstances change in a manner that indicates goodwill might be impaired. Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business or political climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to projected future results of operations. No impairment was recorded for the fiscal years ended April 30, 2021, 2020 or 2019. |
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, 2021 and 2020, the Company accrued sales commissions in other current liabilities of $2,716,000 and $2,842,000, 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, 2021 and 2020, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $1,181,000 and $753,000, 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. |
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 customer advances 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 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, which accounted for 43% of revenue during our fiscal year ended April 30, 2021, or at a point in time, 57%. 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. Contract services revenue, including ISR services, is recognized over time as services are rendered. The Company elected the right to invoice practical expedient in which if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, such as flight hours for ISR services, the entity may recognize revenue in the amount to which the entity has a right to invoice. 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 and medium 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, 2021, the Company had approximately $211,796,000 of remaining performance obligations under contracts with its customers, which the Company also refers to as backlog. The Company currently expects to recognize approximately 94% of the remaining performance obligations as revenue in fiscal 2022 2023 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, 2021, 2020 or 2019. During the year ended April 30, 2021, the Company revised its estimates of the total expected costs to complete a TMS 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 to revenue of approximately $1,041,000. During the year ended April 30, 2020, the Company revised its estimates of the total expected costs to complete a TMS contract and a contract associated with a design and development agreement. 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 $1,403,000 and an increase of approximately $1,099,000, respectively. No adjustment on any one contract was material to the Company’s consolidated financial statements for the years ended April 30, 2019. 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, Revenue by major product line/program 2021 2020 2019 Small UAS $ 235,854 $ 225,888 $ 183,157 MUAS 15,837 — — TMS 87,268 63,781 65,087 HAPS 42,426 60,864 55,407 Other 13,527 16,763 10,623 Total revenue $ 394,912 $ 367,296 $ 314,274 Year Ended April 30, Revenue by contract type 2021 2020 2019 FFP $ 307,413 $ 269,917 $ 224,090 CPFF 86,719 94,176 89,485 T&M 780 3,203 699 Total revenue $ 394,912 $ 367,296 $ 314,274 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, Revenue by customer category 2021 2020 2019 U.S. government $ 271,273 $ 225,341 $ 182,586 Non-U.S. government 123,639 141,955 131,688 Total revenue $ 394,912 $ 367,296 $ 314,274 Year Ended April 30, Revenue by geographic location 2021 2020 2019 Domestic $ 241,898 $ 201,046 $ 151,124 International 153,014 166,250 163,150 Total revenue $ 394,912 $ 367,296 $ 314,274 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, 2021 or 2020 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, 2021, 2020, and 2019 that was included in contract liability balances at the beginning of each year were $5,468,000, $1,670,000 and $1,587,000, respectively. Cost to Fulfill a Contract with a Customer The Company recognizes assets for the costs to fulfill a contract with a customer if the costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered in accordance with ASC 340-40 Other Assets and Deferred Costs: Contracts with Customers |
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, 2021, 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 shares of restricted stock 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 $74,218,000, $80,934,000 and $76,407,000 for the years ended April 30, 2021, 2020 and 2019, respectively. The related cost of sales for customer-funded research and development totaled approximately $51,395,000, $56,440,000 and $54,824,000 for the years ended April 30, 2021, 2020 and 2019, 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 term of the agreement was completed as of December 2020. Costs of $21,833,000 have been reimbursed to the Company as the activities were performed, while the Company was responsible for funding a minimum of $11,225,000. 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 income. Reimbursements under the contract were $3,424,000, $8,102,000 and $5,936,000 for the fiscal years ended April 30, 2021, 2020 and 2019, respectively. |
Lease Accounting | Lease Accounting The Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), along with several additional clarification ASU’s issued during 2018 (“New Lease Standard”) effective May 1, 2019. The New Lease Standard requires the lessee to recognize the assets and liabilities for the rights and obligations created by leases. At contract inception the Company determines whether the contract is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are recorded in operating lease right-of-use assets, current operating lease liabilities and non-current operating lease liabilities. The Company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses its incremental borrowing rate based on the information available at commencement date to determine the present value of future payments and the appropriate lease classification. The Company defines the initial lease term to include renewal options determined to be reasonably certain. The Company’s leases have remaining lease terms of less than one year to six years, some of which may include options to extend the lease for up to 10 years, and some of which may include options to terminate the lease after two years. None of the Company’s options to extend or terminate are reasonably certain of being exercised, and are therefore not included in the Company’s determination of lease assets and liabilities. For operating leases, the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Many of the Company’s real estate lease agreements contain incentives for tenant improvements, rent holidays, or rent escalation clauses. For tenant improvement incentives, if the incentive is determined to be a leasehold improvement owned by the lessee, the Company generally records incentive as a reduction to fixed lease payments thereby reducing rent expense. For rent holidays and rent escalation clauses during the lease term, the Company records rental expense on a straight-line basis over the term of the lease. For these lease incentives, the Company uses the date of initial possession as the commencement date, which is generally when the Company is given the right of access to the space and begins to make improvements in preparation for intended use. The Company does not have any finance leases. The Company does not have any material restrictions or covenants in its lease agreements, sale-leaseback transactions, land easements or residual value guarantees. In determining the inputs to the incremental borrowing rate calculation, the Company makes judgments about the value of the leased asset, its credit rating and the lease term including the probability of its exercising options to extend or terminate the underlying lease. Additionally, the Company makes judgments around contractual asset substitution rights in determining whether a contract contains a lease. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expenses included in SG&A expenses were approximately $675,000, $934,000 and $897,000 for the years ended April 30, 2021, 2020 and 2019, 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, 2021, 2020 and 2019, foreign currency transaction losses that are included in other (expense) income, net in the accompanying statements of income were $1,000, $1,000, and $38,000, 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, 2021 2020 2019 Continuing operations attributable to AeroVironment, Inc. $ 23,331,000 $ 41,339,000 $ 41,912,000 Discontinued operations, net of tax — (265,000) 5,526,000 Net income attributable to AeroVironment, Inc. $ 23,331,000 $ 41,074,000 $ 47,438,000 Denominator for basic earnings per share: Weighted average common shares 24,049,851 23,806,208 23,663,410 Dilutive effect of employee stock options, restricted stock and restricted stock units 312,805 281,959 408,303 Denominator for diluted earnings per share 24,362,656 24,088,167 24,071,713 During the years ended April 30, 2021, 2020 and 2019, 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 3,000, 3,000 and 18,000 for the years ended April 30, 2021, 2020 and 2019, respectively. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards Effective May 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Effective May 1, 2020, the Company adopted ASU 2018-15, “ Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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 In-service ISR assets 3 years Furniture and fixtures 3 - 7 years Leasehold improvements Lesser of useful life or term of lease |
Schedule of estimated useful life for the Company's intangible assets | Technology 3 Licenses 3 years Customer relationships 3 - 5 years In-process research and development 3 years Trademarks and tradenames 6 years Non-compete agreements Contractual term |
Schedule of revenue by category | Year Ended April 30, Revenue by major product line/program 2021 2020 2019 Small UAS $ 235,854 $ 225,888 $ 183,157 MUAS 15,837 — — TMS 87,268 63,781 65,087 HAPS 42,426 60,864 55,407 Other 13,527 16,763 10,623 Total revenue $ 394,912 $ 367,296 $ 314,274 Year Ended April 30, Revenue by contract type 2021 2020 2019 FFP $ 307,413 $ 269,917 $ 224,090 CPFF 86,719 94,176 89,485 T&M 780 3,203 699 Total revenue $ 394,912 $ 367,296 $ 314,274 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, Revenue by customer category 2021 2020 2019 U.S. government $ 271,273 $ 225,341 $ 182,586 Non-U.S. government 123,639 141,955 131,688 Total revenue $ 394,912 $ 367,296 $ 314,274 Year Ended April 30, Revenue by geographic location 2021 2020 2019 Domestic $ 241,898 $ 201,046 $ 151,124 International 153,014 166,250 163,150 Total revenue $ 394,912 $ 367,296 $ 314,274 |
Schedule of reconciliation of basic to diluted shares | Year Ended April 30, 2021 2020 2019 Continuing operations attributable to AeroVironment, Inc. $ 23,331,000 $ 41,339,000 $ 41,912,000 Discontinued operations, net of tax — (265,000) 5,526,000 Net income attributable to AeroVironment, Inc. $ 23,331,000 $ 41,074,000 $ 47,438,000 Denominator for basic earnings per share: Weighted average common shares 24,049,851 23,806,208 23,663,410 Dilutive effect of employee stock options, restricted stock and restricted stock units 312,805 281,959 408,303 Denominator for diluted earnings per share 24,362,656 24,088,167 24,071,713 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Discontinued Operations. | |
Schedule of statements of operations data for the EES Business | Year Ended April 30, 2021 2020 2019 Net sales $ — $ — $ 4,256 Cost of sales — — 5,097 Gross margin — — (841) Selling, general and administrative — — 1,515 Research and development — — 1,072 Other income, net — — 1 Loss from discontinued operations before income taxes — — (3,427) Benefit for income taxes — - (463) Net loss from discontinued operations $ — $ — $ (2,964) (Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively — (265) 8,490 Net (loss) income from discontinued operations $ — $ (265) $ 5,526 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Investments | |
Schedule of investments | April 30, 2021 2020 Short-term investments: Available-for-sale securities: Municipal securities 22,245 5,244 U.S. government securities 4,009 33,771 Corporate bonds 5,717 8,492 Total short-term investments $ 31,971 $ 47,507 Long-term investments: Available-for-sale securities: Municipal securities 988 1,592 U.S. government securities 4,000 8,996 Total available-for-sale investments 4,988 10,588 Equity method investments Investment in limited partnership fund 7,168 4,442 Total equity method investments 7,168 4,442 Total long-term investments $ 12,156 $ 15,030 |
Schedule of activity related to available-for-sale investments recorded in short-term and long-term investments | The following table is a summary of the activity related to the available-for-sale investments recorded in short-term and long-term investments as of April 30, (in thousands): April 30, 2021 April 30, 2020 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Municipal securities $ 23,227 $ 8 $ (2) $ 23,233 $ 6,807 $ 29 $ — $ 6,836 U.S. government securities 8,008 1 — 8,009 42,730 41 (4) 42,767 Corporate bonds 5,718 — (1) 5,717 8,495 — (3) 8,492 Total available-for-sale investments $ 36,953 $ 9 $ (3) $ 36,959 $ 58,032 $ 70 $ (7) $ 58,095 |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of available-for-sale investments | The amortized cost and fair value of the Company’s available-for-sale securities by contractual maturity at April 30, 2021, are as follows: Cost Fair Value Due within one year $ 31,968 $ 31,971 Due after one year through five years 4,985 4,988 Total $ 36,953 $ 36,959 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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 Company’s financial assets measured at fair value on a recurring basis at April 30, 2021, were as follows (in thousands): Fair Value Measurement Using Significant Quoted prices in other Significant active markets for observable unobservable identical assets inputs inputs Description (Level 1) (Level 2) (Level 3) Total Available-for-sale securities $ — $ 36,959 $ — $ 36,959 Contingent consideration — — 5,521 5,521 Total $ — $ 36,959 $ 5,521 $ 42,480 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, 2020 $ — Business acquisition 5,521 Transfers to Level 3 — Total (gains) losses (realized or unrealized) — Settlements — Balance at April 30, 2021 $ 5,521 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 or liabilities still held at April 30, 2021 $ — |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Inventories, net | |
Schedule of inventories, net | Inventories consist of the following (in thousands): April 30, 2021 2020 Raw materials $ 23,997 $ 15,988 Work in process 13,825 10,340 Finished goods 44,113 29,439 Inventories, gross 81,935 55,767 Reserve for inventory excess and obsolescence (10,289) (10,232) Inventories, net $ 71,646 $ 45,535 |
Intangibles, net (Tables)
Intangibles, net (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Intangibles, net | |
Schedule of components of intangibles | Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows (in thousands): April 30, April 30, 2021 2020 Technology $ 46,850 $ 14,950 Licenses 1,008 1,006 Customer relationships 68,073 873 In-process research and development 550 550 Non-compete agreements 320 320 Trademarks and tradenames 68 68 Other 3 3 Intangibles, gross 116,872 17,770 Less accumulated amortization (10,604) (4,133) Intangibles, net $ 106,268 $ 13,637 |
Schedule of estimated amortization expense for the next five years | Estimated amortization expense for the next five years is as follows (in thousands): Year ending April 30, 2022 $ 24,553 2023 24,409 2024 23,560 2025 16,513 2026 11,471 $ 100,506 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Goodwill. | |
Schedule of the changes in goodwill balances | The following table presents the changes in the Company’s goodwill balance (in thousands): UAS MUAS Total Balance at April 30, 2020 $ 6,340 $ — $ 6,340 Additions to goodwill 19,254 288,611 307,865 Impairment of goodwill — — — Balance at April 30, 2021 $ 25,594 $ 288,611 $ 314,205 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Property and Equipment, net | |
Schedule of property and equipment | April 30, 2021 2020 (In thousands) In-service ISR assets $ 36,047 $ — Leasehold improvements 18,703 16,387 Machinery and equipment 53,943 46,519 Furniture and fixtures 3,698 3,031 Computer equipment and software 36,618 33,242 Construction in process 2,689 2,508 Property and equipment, gross 151,698 101,687 Less accumulated depreciation and amortization (92,802) (79,993) Property and equipment, net $ 58,896 $ 21,694 |
Investments in Companies Acco_2
Investments in Companies Accounted for Using the Equity Method (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Investments in Companies Accounted for Using the Equity Method | |
Summarized financial information of the equity method investments | April 30, 2021 2020 (In thousands) Current assets $ 9,106 $ 67,387 Noncurrent assets 65,717 170,602 Current liabilities 76,492 72,505 Year Ended April 30, 2021 2020 2019 (In thousands) Revenues $ 159 $ 25 $ — Gross loss (1,241) (1,331) — Realized and unrealized losses on investments (131,971) (7,028) — Net loss (190,454) (85,818) (63,107) |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Warranty Reserves | |
Summary of warranty reserve activity | April 30, 2021 2020 (In thousands) Beginning balance $ 2,015 $ 1,704 Warranty expense 1,650 2,258 Changes in estimates related to pre-existing warranties — (189) Warranty costs settled (1,324) (1,758) Ending balance $ 2,341 $ 2,015 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Debt | |
Schedule of long-term debt and the current period interest rates | Year Ended April 30, 2021 (In thousands) Term loans $ 200,000 Revolving credit facility — Total debt 200,000 Less current portion 10,000 Total long-term debt, less current portion 190,000 Less unamortized debt issuance costs - term loans 2,488 Total long-term debt, net of unamortized debt issuance costs - term loans $ 187,512 Unamortized debt issuance costs - revolving credit facility $ 1,244 |
Schedule of Future long-term debt principle payments | Future long-term debt principle payments at April 30, 2021 were as follows: (In thousands) 2022 $ 10,000 2023 10,000 2024 10,000 2025 10,000 2026 160,000 $ 200,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Leases | |
Schedule of components of lease costs | Year Ended Year Ended April 30, April 30, 2021 2020 Operating lease cost $ 5,150 $ 4,574 Short term lease cost 602 500 Variable lease cost 23 987 Sublease income (91) (287) Total lease costs, net $ 5,684 $ 5,774 |
Schedule of supplemental lease information | Supplemental lease information was as follows: Year Ended Year Ended April 30, April 30, 2021 2020 (In thousands) (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 5,070 $ 3,897 Right-of-use assets obtained in exchange for new lease liabilities $ 18,729 $ 13,022 Weighted average remaining lease term 71 months 34 months Weighted average discount rate 3.6% 3.7% |
Schedule of maturities of operating lease liabilities | Maturities of operating lease liabilities as of April 30, 2021 were as follows (in thousands): 2022 $ 6,711 2023 5,185 2024 4,496 2025 3,530 2026 2,329 Thereafter 6,572 Total lease payments 28,823 Less: imputed interest (3,566) Total present value of operating lease liabilities $ 25,257 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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, 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 granted — — — — — — Options exercised (3,000) 31.15 — — (13,189) 0.59 Options canceled — — — — — — Outstanding at April 30, 2020 334,026 25.19 — — 1,113 0.59 Options granted — — — — — — Options exercised (53,500) 28.45 — — (1,113) 0.59 Options canceled — — — — — — Outstanding at April 30, 2021 280,526 24.57 — — — — Options exercisable at April 30, 2021 280,526 $ 24.57 — $ — — $ — |
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, 2020 16,000 $ 10.16 Granted — — Expired — — Canceled — — Vested (16,000) 10.16 Non-vested at April 30, 2021 — $ — |
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 2021 Years Price 2021 Price $ 18.07 - 19.16 54,000 1.98 $ 18.26 54,000 $ 18.26 19.17 - 26.24 55,000 2.04 20.29 55,000 20.29 26.25 - 26.99 80,000 4.15 26.70 80,000 26.70 27.00 - 28.53 50,000 2.56 27.27 50,000 27.27 28.54 - 31.27 41,526 2.94 31.13 41,526 31.13 $ 18.07 - 31.27 280,526 2.86 $ 24.57 280,526 $ 24.57 |
Schedule of Company's restricted stock awards | Information related to the Company’s restricted stock awards at April 30, 2021 and for the year then ended is as follows: Restated 2006 Plan Weighted Average Grant Date Shares Fair Value Unvested stock at April 30, 2020 201,647 $ 55.84 Stock granted 117,468 79.96 Stock vested (133,578) 39.77 Stock canceled (5,509) 72.03 Unvested stock at April 30, 2021 180,028 $ 83.02 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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, 2021 2020 2019 Domestic $ 34,274 $ 52,730 $ 50,644 Foreign 91 (60) (166) Income from continuing operations before income taxes 34,365 52,670 50,478 Equity method investment loss (10,481) (5,487) (3,944) Total income from continuing operations before income taxes $ 23,884 $ 47,183 $ 46,534 |
Schedule of reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense | Year Ended April 30, 2021 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit (1.4) (2.1) (2.2) R&D and other tax credits (11.5) (6.8) (8.1) Valuation allowance 3.2 3.4 3.7 Return to provision adjustments (0.3) 0.1 (0.3) Permanent items 3.6 0.7 0.8 Foreign derived intangible income (7.6) (3.9) (3.7) Excess benefit of equity awards (5.7) (1.5) (3.1) Other 0.3 0.2 1.1 Effective income tax rate 1.6 % 11.1 % 9.2 % |
Schedule of components of the provision for income taxes | The components of the provision for income taxes are as follows (in thousands): Year Ended April 30, 2021 2020 2019 Current: Federal $ 3,094 $ 3,005 $ 1,953 State 448 390 228 Foreign — — — 3,542 3,395 2,181 Deferred: Federal (3,247) 2,063 1,945 State 244 421 551 Foreign — (31) (36) (3,003) 2,453 2,460 Total income tax expense $ 539 $ 5,848 $ 4,641 |
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, 2021 2020 Deferred income tax assets: Accrued expenses $ 4,422 $ 3,337 Stock based compensation 2,492 2,259 Allowances, reserves, and other 1,482 1,784 Outside basis difference 4,617 2,264 Unrealized loss on securities 110 9 Net operating loss and credit carry-forwards 33,155 12,832 Intangibles basis — 605 Lease liability 5,645 2,282 Total deferred income tax assets 51,923 25,372 Deferred income tax liabilities: Fixed asset basis (10,286) (1,218) Revenue recognition — (3,112) Right-of-use asset (5,119) (1,965) Intangibles basis (17,004) — Total deferred income tax liabilities (32,409) (6,295) Valuation allowance (17,453) (14,149) Net deferred tax assets $ 2,061 $ 4,928 |
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, 2021 and 2020 (in thousands): April 30, 2021 2020 Balance as of May 1 $ 14,347 $ 12,593 Increases related to prior year tax positions 1,305 62 Decreases related to prior year tax positions (116) — Increases related to current year tax positions 2,074 1,971 Decreases related to lapsing of statute of limitations (54) (279) Balance as of April 30 $ 17,556 $ 14,347 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Accumulated Other Comprehensive Income. | |
Schedule of components of accumulated other comprehensive income | The components of accumulated other comprehensive income are as follows (in thousands): Total Accumulated Other Available-for-Sale Foreign Currency Comprehensive Securities Translation Adjustments Income Total accumulated other comprehensive income balance as of April 30, 2020 $ 50 $ 278 $ 328 Changes in foreign currency translation adjustments — 75 75 Unrealized losses, net of $1 of taxes (60) — (60) Total accumulated other comprehensive income balance as of April 30, 2021 $ (10) $ 353 $ 343 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Arcturus UAV Inc. | |
Schedule of the fair value of the assets acquired and liabilities assumed at the acquisition date | The following table summarizes the provisional allocation of the purchase price over the estimated fair value of the assets and liabilities assumed in the acquisition of Arcturus (in thousands): February 19, 2021 Fair value of assets acquired: Accounts receivable 6,050 Unbilled receivable 4,176 Inventories, net 21,701 Prepaid and other current assets 3,076 Property and equipment, net 38,739 Operating lease assets 11,429 Other assets 136 Technology 20,500 Customer relationships 62,700 Goodwill 288,611 Total assets acquired 457,118 Fair value of liabilities assumed: Accounts payable 3,085 Wages and related accruals 1,698 Customer advances 1,818 Other current liabilities 8,534 Operating lease liabilities 12,297 Other non-current liabilities 1,190 Deferred income taxes, net 5,869 Total liabilities assumed 34,491 Total identifiable net assets 422,627 Fair value of consideration transferred: Cash consideration, net of cash acquired $ 350,243 Equity consideration 72,384 Total consideration 422,627 |
Schedule of unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred | The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2019 (in thousands): Year Ended April 30, April 30, 2021 2020 Revenue $ 478,579 $ 454,769 Net income attributable to AeroVironment, Inc. $ 27,572 $ 31,264 |
Intelligent Systems Group | |
Schedule of the fair value of the assets acquired and liabilities assumed at the acquisition date | The following table summarizes the provisional allocation of the purchase price over the estimated fair value of the assets and liabilities assumed in the ISG Acquisition (in thousands): February 23, 2021 Technology $ 11,400 Customer relationships 4,500 Other assets 217 Goodwill 19,254 Total net identified assets acquired $ 35,371 Fair value of consideration: Cash $ 29,700 Holdback 150 Contingent consideration 5,521 Total $ 35,371 |
Schedule of unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred | The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2019 (in thousands): Year Ended April 30, April 30, 2021 2020 Revenue $ 406,444 $ 379,627 Net income attributable to AeroVironment, Inc. $ 23,787 $ 39,025 |
Pulse Aerospace, LLC | |
Schedule of the fair value of the assets acquired and liabilities assumed at the acquisition date | During the fiscal year ended April 30, 2020, the Company finalized its determination of the fair value of the assets and liabilities assumed as of the acquisition date, which is summarized in the following table (in thousands): June 10, 2019 Technology $ 14,950 Goodwill 6,340 In-process R&D 550 Inventory 334 Non-compete agreements 320 Other assets, net of liabilities assumed (614) Total net identified assets acquired $ 21,880 Fair value of consideration: Cash $ 18,677 Holdback 1,250 Retention 250 Contingent consideration 1,703 Total $ 21,880 |
Schedule of unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred | The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2018 (in thousands): Year Ended April 30, April 30, 2020 2019 Revenue $ 367,523 $ 316,878 Net income attributable to AeroVironment, Inc. $ 41,481 $ 43,204 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Segments | |
Schedule of segment results | Year Ended April 30, 2021 2020 2019 Revenue: UAS $ 379,075 $ 367,296 $ 314,274 MUAS 15,837 — — Total 394,912 367,296 314,274 Gross margin: UAS 161,593 153,102 128,403 MUAS 2,965 — — Total 164,558 153,102 128,403 Income (loss) from continuing operations: UAS 45,182 47,135 33,826 MUAS (1,869) — — Total 43,313 47,135 33,826 Total assets UAS 439,320 584,954 508,844 MUAS 489,246 — — Total 928,566 584,954 508,844 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Quarterly Results of Operations (Unaudited) | |
Schedule of selected unaudited consolidated financial data | Three Months Ended August 1, 2020 October 31, 2020 January 30, 2021 April 30, 2021 (In thousands except per share data) Year ended April 30, 2021 Revenue $ 87,450 $ 92,665 $ 78,782 $ 136,015 Gross margin $ 35,411 $ 40,851 $ 28,641 $ 59,655 Net income attributable to AeroVironment, Inc. from continuing operations $ 10,080 $ 2,094 (1) $ 211 $ 10,946 (2) Net income per share attributable to AeroVironment, Inc. from continuing operations—basic(3) $ 0.42 $ 0.09 (1) $ 0.01 $ 0.45 (2) Net income per share attributable to AeroVironment, Inc. from continuing operations—diluted(3) $ 0.42 $ 0.09 (1) $ 0.01 $ 0.44 (2) Three Months Ended July 27, October 26, January 25, April 30, 2019 2019 2020 2020 (In thousands except per share data) Year ended April 30, 2020 Revenue $ 86,911 $ 83,271 $ 61,891 $ 135,223 Gross margin $ 41,272 $ 35,166 $ 23,496 $ 53,168 Net (loss) income attributable to AeroVironment, Inc. from continuing operations $ 17,110 $ 7,501 $ (1,008) $ 17,736 Net (loss) income per share attributable to AeroVironment, Inc. from continuing operations—basic(3) $ 0.72 $ 0.32 $ (0.04) $ 0.74 Net (loss) income per share attributable to AeroVironment, Inc. from continuing operations—diluted(3) $ 0.71 $ 0.31 $ (0.04) $ 0.73 (1) Includes a loss of $8.4 million for the Company’s proportionate share of the HAPSMobile Inc. joint venture’s impairment of its investment in Loon LLC recorded to “Equity method investment loss, net of tax” in the consolidated statement of operations. (2) Includes a $9.3 million legal accrual related to our former EES Business recorded to “Other (expense) income, net” in the consolidated statement of operations. (3) Earnings per share is computed independently for each of the quarters presented. The sum of the quarterly earnings per share may not equal the total earnings per share computed for the year due to rounding. |
Organization and Significant _4
Organization and Significant Accounting Policies - Pulse Aerospace, LLC (Details) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2021USD ($)segment | Feb. 19, 2021 | Apr. 30, 2020USD ($) | Jun. 10, 2019 | |
Number of reportable segments | segment | 2 | |||
Restricted cash | $ | $ 8,322,000 | $ 0 | ||
Pulse Aerospace, LLC | ||||
Ownership interest acquired | 100.00% | |||
Arcturus UAV Inc. | ||||
Ownership interest acquired | 100.00% |
Organization and Significant _5
Organization and Significant Accounting Policies - Concentration of Credit Risk (Details) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Customer concentration | Sales Revenue | US Government Agencies | |||
Concentration of Credit Risk | |||
Concentration Risk, Percentage | 69.00% | 61.00% | 58.00% |
Customer concentration | Sales Revenue | US Army | |||
Concentration of Credit Risk | |||
Concentration Risk, Percentage | 34.00% | 32.00% | 28.00% |
Credit concentration | Accounts receivable balances | US Government Agencies | |||
Concentration of Credit Risk | |||
Concentration Risk, Percentage | 64.00% | 62.00% |
Organization and Significant _6
Organization and Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Accounts Receivable , Unbilled Receivables and Retentions | ||
Retentions | $ 700 | $ 717 |
Organization and Significant _7
Organization and Significant Accounting Policies - Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2019 | |
Long-Lived Assets | ||
Impairment loss | $ 4,398 | |
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 | |
In-service ISR assets | ||
Long-Lived Assets | ||
Estimated useful life | 3 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 | |
UAS Quantix Solution | ||
Long-Lived Assets | ||
Impairment loss | $ 4,398 |
Organization and Significant _8
Organization and Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Intangibles, net | |||
Impairment recorded | $ 0 | $ 0 | $ 0 |
Technology | |||
Intangibles, net | |||
Weighted average amortization period | 12 years | ||
Licenses | |||
Intangibles, net | |||
Weighted average amortization period | 3 years | ||
In-process research and development | |||
Intangibles, net | |||
Weighted average amortization period | 3 years | ||
Trademarks and tradenames | |||
Intangibles, net | |||
Weighted average amortization period | 6 years | ||
Minimum | Technology | |||
Intangibles, net | |||
Weighted average amortization period | 3 years | ||
Minimum | Customer relationships | |||
Intangibles, net | |||
Weighted average amortization period | 3 years | ||
Maximum | Customer relationships | |||
Intangibles, net | |||
Weighted average amortization period | 5 years |
Organization and Significant _9
Organization and Significant Accounting Policies - Accrued Sales Commission (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Self-Insurance Liability | ||
Estimated self-insurance liability of employee medical claim | $ 1,181 | $ 753 |
Other current liabilities | ||
Accrued liabilities | ||
Accrued sales commission | $ 2,716 | $ 2,842 |
Organization and Significant_10
Organization and Significant Accounting Policies - Performance Obligations (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2021USD ($) | |
Organization and Significant Accounting Policies | |
Remaining performance obligations satisfied over time (as a percentage) | 43.00% |
Remaining performance obligations at a point in time (as a percentage) | 57.00% |
Performance Obligations | |
Remaining performance obligations | $ 211,796 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-30 | |
Performance Obligations | |
Year of performance obligations | 1 year |
Remaining performance obligations (as a percentage) | 94.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-30 | |
Performance Obligations | |
Year of performance obligations | 1 year |
Remaining performance obligations (as a percentage) | 6.00% |
Organization and Significant_11
Organization and Significant Accounting Policies - Contract Estimates (Details) | 12 Months Ended | ||
Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($)contract | |
Material adjustment to any one contract | $ 0 | ||
Amount of revised aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ 1,041,000 | ||
Number of active contracts | contract | 1 | ||
TMS contract | |||
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | (1,041,000) | ||
Revision of estimate of total costs required to complete the contracts | Cumulative catch-up adjustment | Design and development agreement | |||
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ 1,099,000 | ||
Revision of estimate of total costs required to complete the contracts | Cumulative catch-up adjustment | TMS contract | |||
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ (1,403,000) | $ (1,099,000) |
Organization and Significant_12
Organization and Significant Accounting Policies - Revenue by Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | Apr. 30, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Disaggregation of revenue | |||||||||||
Revenue | $ 136,015 | $ 78,782 | $ 92,665 | $ 87,450 | $ 135,223 | $ 61,891 | $ 83,271 | $ 86,911 | $ 394,912 | $ 367,296 | $ 314,274 |
Contract Liability | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 5,468 | 1,670 | 1,587 | ||||||||
Domestic | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 241,898 | 201,046 | 151,124 | ||||||||
International | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 153,014 | 166,250 | 163,150 | ||||||||
U.S. government | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 271,273 | 225,341 | 182,586 | ||||||||
Non-U.S. government | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 123,639 | 141,955 | 131,688 | ||||||||
FFP | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 307,413 | 269,917 | 224,090 | ||||||||
CPFF | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 86,719 | 94,176 | 89,485 | ||||||||
T&M | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 780 | 3,203 | 699 | ||||||||
Small UAS | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 235,854 | 225,888 | 183,157 | ||||||||
MUAS | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 15,837 | ||||||||||
TMS | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 87,268 | 63,781 | 65,087 | ||||||||
HAPS | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | 42,426 | 60,864 | 55,407 | ||||||||
Other | |||||||||||
Disaggregation of revenue | |||||||||||
Revenue | $ 13,527 | $ 16,763 | $ 10,623 |
Organization and Significant_13
Organization and Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Stock-Based Compensation | |||
Performance period | 3 years | ||
Research and Development | |||
Revenue from customer funded research and development | $ 74,218 | $ 80,934 | $ 76,407 |
Cost of sales | 51,395 | 56,440 | 54,824 |
Research and Development With Federal Government | |||
Funding | 11,225 | ||
Reimbursement amount | 21,833 | ||
Reimbursements under the contract | $ 3,424 | 8,102 | 5,936 |
Lease Accounting | |||
Option to terminate period (in years) | 2 years | ||
Advertising Costs | |||
Advertising expenses | $ 675 | 934 | 897 |
Foreign currency transactions | |||
Foreign currency losses | 1 | 1 | 38 |
Numerator for basic earnings per share: | |||
Continuing operations attributable to AeroVironment | 23,331 | 41,339 | 41,912 |
Discontinued operations, net of tax | (265) | 5,526 | |
Net income attributable to AeroVironment | $ 23,331 | $ 41,074 | $ 47,438 |
Denominator for basic earnings per share: | |||
Weighted average common shares | 24,049,851 | 23,806,208 | 23,663,410 |
Dilutive effect of employee stock options, restricted stock and restricted stock units | 312,805 | 281,959 | 408,303 |
Denominator for diluted earnings per share | 24,362,656 | 24,088,167 | 24,071,713 |
Number of shares reserved for issuance that are anti-dilutive | 3,000 | 3,000 | 18,000 |
Prepaid expenses and other current assets | |||
Cost to Fulfill a Contract with a Customer | |||
Costs to fulfill future performance obligations | $ 1,729 | $ 0 | |
Minimum | |||
Lease Accounting | |||
Remaining lease terms (in years) | 1 year | ||
Maximum | |||
Lease Accounting | |||
Remaining lease terms (in years) | 9 years | ||
Option to extend period (in years) | 10 years |
Discontinued Operations (Detail
Discontinued Operations (Details) | Feb. 22, 2019USD ($) | Jun. 29, 2018USD ($) | Apr. 30, 2021USD ($)contract | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) |
Discontinued operations | |||||
Amount of alleged damages | $ 6,500,000 | ||||
Statement of operations | |||||
Loss from discontinued operations, net of tax | $ (2,964,000) | ||||
(Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively | $ (265,000) | 8,490,000 | |||
Tax expense | (76,000) | 2,444,000 | |||
Net (loss) income from discontinued operations | (265,000) | 5,526,000 | |||
Other expense | |||||
Discontinued operations | |||||
Litigation reserve expense | $ 9,300,000 | ||||
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 | 922,000 | ||||
Amounts recorded in the consolidated financial statements | 341,000 | ||||
Statement of operations | |||||
Tax expense | (76,000) | 2,444,000 | |||
EES Business | Disposed of by sale | Other income, net | |||||
Statement of operations | |||||
Net Sales | 38,000 | 551,000 | 2,758,000 | ||
EES Business | Discontinued Operations | |||||
Statement of operations | |||||
Net Sales | 4,256,000 | ||||
Cost of sales | 5,097,000 | ||||
Gross margin | (841,000) | ||||
Selling, general and administrative | 1,515,000 | ||||
Research and development | 1,072,000 | ||||
Other income, net | 1,000 | ||||
Loss from discontinued operations before income taxes | (3,427,000) | ||||
Benefit for income taxes | (463,000) | ||||
Loss from discontinued operations, net of tax | (2,964,000) | ||||
(Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively | (265,000) | 8,490,000 | |||
Net (loss) income from discontinued operations | $ (265,000) | $ 5,526,000 | |||
Holdback | Disposed of by sale | |||||
Discontinued operations | |||||
Cash consideration received | $ 6,500,000 | ||||
Number of remaining contracts | contract | 2 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Short-term investments: | ||
Total short-term investments | $ 31,971 | $ 47,507 |
Long-term investments: | ||
Equity Method Investments. | 7,168 | 4,442 |
Total long-term investments | 12,156 | 15,030 |
Investment in limited partnership fund | ||
Long-term investments: | ||
Equity Method Investments. | 7,168 | 4,442 |
Available-for-sale securities | ||
Short-term investments: | ||
Total short-term investments | 31,971 | 47,507 |
Long-term investments: | ||
Total long-term investments | 4,988 | 10,588 |
Available-for-sale securities | Municipal securities | ||
Short-term investments: | ||
Total short-term investments | 22,245 | 5,244 |
Long-term investments: | ||
Total long-term investments | 988 | 1,592 |
Available-for-sale securities | U.S. government securities | ||
Short-term investments: | ||
Total short-term investments | 4,009 | 33,771 |
Long-term investments: | ||
Total long-term investments | 4,000 | 8,996 |
Available-for-sale securities | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | $ 5,717 | $ 8,492 |
Investments - Available For Sal
Investments - Available For Sale Securities (Details) - Available-for-sale securities - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Available-For-Sale Securities. | ||
Amortized Cost | $ 36,953 | $ 58,032 |
Gross Unrealized Gains | 9 | 70 |
Gross Unrealized Losses | (3) | (7) |
Total | 36,959 | 58,095 |
Municipal securities | ||
Available-For-Sale Securities. | ||
Amortized Cost | 23,227 | 6,807 |
Gross Unrealized Gains | 8 | 29 |
Gross Unrealized Losses | (2) | |
Total | 23,233 | 6,836 |
U.S. government securities | ||
Available-For-Sale Securities. | ||
Amortized Cost | 8,008 | 42,730 |
Gross Unrealized Gains | 1 | 41 |
Gross Unrealized Losses | (4) | |
Total | 8,009 | 42,767 |
Corporate bonds | ||
Available-For-Sale Securities. | ||
Amortized Cost | 5,718 | 8,495 |
Gross Unrealized Losses | (1) | (3) |
Total | $ 5,717 | $ 8,492 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of the Held-to-Maturity Securities by Contractual Maturity (Details) $ in Thousands | Apr. 30, 2021USD ($) |
Amortized cost of held-to-maturity securities by contractual maturity | |
Due within one year | $ 31,968 |
Due after one year through five years | 4,985 |
Total | 36,953 |
Fair value of held-to-maturity securities by contractual maturity | |
Due within one year | 31,971 |
Due after one year through five years | 4,988 |
Total | $ 36,959 |
Fair Value Measurements - (Deta
Fair Value Measurements - (Details) - Recurring basis $ in Thousands | Apr. 30, 2021USD ($) |
Fair Value Measurement | |
Available for sale securities | $ 36,959 |
Contingent consideration | 5,521 |
Total | 42,480 |
Significant other observable inputs (Level 2) | |
Fair Value Measurement | |
Available for sale securities | 36,959 |
Total | 36,959 |
Significant unobservable inputs (Level 3) | |
Fair Value Measurement | |
Contingent consideration | 5,521 |
Total | $ 5,521 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation (Details) - Significant unobservable inputs (Level 3) $ in Thousands | 12 Months Ended |
Apr. 30, 2021USD ($) | |
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis | |
Business acquisition | $ 5,521 |
Balance at the end of the period | $ 5,521 |
Fair Value Measurements - Pulse
Fair Value Measurements - Pulse purchase agreement (Details) $ in Thousands | 9 Months Ended |
Jan. 25, 2020USD ($) | |
Pulse Aerospace, LLC | Maximum | |
Fair Value Measurement | |
Total paid | $ 6,000 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Inventories, net | |||
Raw materials | $ 23,997 | $ 15,988 | |
Work in process | 13,825 | 10,340 | |
Finished goods | 44,113 | 29,439 | |
Inventories, gross | 81,935 | 55,767 | |
Reserve for inventory excess and obsolescence | (10,289) | (10,232) | |
Inventories, net | 71,646 | 45,535 | |
Inventory reserve charge | 1,178 | $ 5,377 | $ 5,054 |
UAS Quantix Solution | |||
Inventories, net | |||
Inventory reserve charge | $ 2,600 |
Intangibles, net - Intangibles
Intangibles, net - Intangibles included in other assets on the balance sheet (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Intangibles, net | ||
Intangibles, net | $ 106,268 | $ 13,637 |
Other assets, long term | ||
Intangibles, net | ||
Intangibles, gross | 116,872 | 17,770 |
Less accumulated amortization | (10,604) | (4,133) |
Intangibles, net | 106,268 | 13,637 |
Other assets, long term | Technology | ||
Intangibles, net | ||
Intangibles, gross | 46,850 | 14,950 |
Other assets, long term | Licenses | ||
Intangibles, net | ||
Intangibles, gross | 1,008 | 1,006 |
Other assets, long term | Customer relationships | ||
Intangibles, net | ||
Intangibles, gross | 68,073 | 873 |
Other assets, long term | In-process research and development | ||
Intangibles, net | ||
Intangibles, gross | 550 | 550 |
Other assets, long term | Non-compete agreements | ||
Intangibles, net | ||
Intangibles, gross | 320 | 320 |
Other assets, long term | Trademarks and tradenames | ||
Intangibles, net | ||
Intangibles, gross | 68 | 68 |
Other assets, long term | Other | ||
Intangibles, net | ||
Intangibles, gross | $ 3 | $ 3 |
Intangibles, net (Details)
Intangibles, net (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Intangibles, net | |||
Amortization expense | $ 6,469,000 | $ 2,822,000 | $ 357,000 |
Weighted average | |||
Intangibles, net | |||
Weighted average amortization period | 5 years | 4 years |
Intangibles, net - Estimated Am
Intangibles, net - Estimated Amortization Expense (Details) $ in Thousands | Apr. 30, 2021USD ($) |
Estimated amortization expense | |
2022 | $ 24,553 |
2023 | 24,409 |
2024 | 23,560 |
2025 | 16,513 |
2026 | 11,471 |
Total | $ 100,506 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2021USD ($) | |
Goodwill | |
Goodwill, Beginning Balance | $ 6,340 |
Additions to goodwill | 307,865 |
Goodwill, Ending Balance | 314,205 |
UAS | |
Goodwill | |
Goodwill, Beginning Balance | 6,340 |
Additions to goodwill | 19,254 |
Goodwill, Ending Balance | 25,594 |
MUAS | |
Goodwill | |
Additions to goodwill | 288,611 |
Goodwill, Ending Balance | $ 288,611 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Property and equipment, net | |||
Property and equipment, gross | $ 151,698,000 | $ 101,687,000 | |
Less accumulated depreciation and amortization | (92,802,000) | (79,993,000) | |
Property and equipment, net | 58,896,000 | 21,694,000 | |
Depreciation expense | 12,793,000 | 7,066,000 | $ 7,311,000 |
Impairment loss | 4,398,000 | ||
In-service ISR assets | |||
Property and equipment, net | |||
Property and equipment, gross | 36,047,000 | ||
Leasehold improvements | |||
Property and equipment, net | |||
Property and equipment, gross | 18,703,000 | 16,387,000 | |
Machinery and equipment | |||
Property and equipment, net | |||
Property and equipment, gross | 53,943,000 | 46,519,000 | |
Furniture and fixtures | |||
Property and equipment, net | |||
Property and equipment, gross | 3,698,000 | 3,031,000 | |
Computer equipment and software | |||
Property and equipment, net | |||
Property and equipment, gross | 36,618,000 | 33,242,000 | |
Construction in process | |||
Property and equipment, net | |||
Property and equipment, gross | $ 2,689,000 | $ 2,508,000 | |
UAS Quantix Solution | |||
Property and equipment, net | |||
Impairment loss | $ 4,398,000 |
Investments in Companies Acco_3
Investments in Companies Accounted for Using the Equity Method (Details) | 12 Months Ended | ||||||||||||||||
Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | Dec. 04, 2019USD ($) | Dec. 04, 2019JPY (¥) | May 11, 2019 | May 10, 2019USD ($) | May 10, 2019JPY (¥) | Feb. 09, 2019USD ($) | Feb. 09, 2019JPY (¥) | Feb. 08, 2019 | Jan. 29, 2019USD ($) | Jan. 29, 2019JPY (¥) | Apr. 17, 2018USD ($) | Apr. 17, 2018JPY (¥) | Dec. 27, 2017USD ($) | Dec. 27, 2017JPY (¥) | |
Equity Method Investments | |||||||||||||||||
Equity method investment loss, net of tax | $ (10,481,000) | $ (5,487,000) | $ (3,944,000) | ||||||||||||||
Carrying value of investment | $ 7,168,000 | 4,442,000 | |||||||||||||||
SoftBank | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Ownership percentage | 93.00% | ||||||||||||||||
Payments for purchase of interest | ¥ | ¥ 209,500,000 | ||||||||||||||||
HAPSMobile | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Ownership percentage | 7.00% | 7.00% | 7.00% | 5.00% | 10.00% | 10.00% | 10.00% | 10.00% | 5.00% | 5.00% | 5.00% | ||||||
Payments for purchase of interest | $ 4,982,000 | ¥ 540,050,000 | $ 4,569,000 | ¥ 500,000,000 | $ 1,926,000 | ¥ 209,500,000 | $ 1,407,000 | ¥ 150,000,000 | $ 1,860,000 | ¥ 210,000,000 | |||||||
HAPSMobile | Equity method investment loss, net of tax | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Equity method investment loss, net of tax | $ 10,530,000 | 4,982,000 | $ 3,944,000 | ||||||||||||||
HAPSMobile | Other assets, long term | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Carrying value of investment | 0 | $ 10,455,000 | |||||||||||||||
HAPSMobile | SoftBank | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Payments for purchase of interest | $ 5,671,000 | ¥ 632,800,000 | |||||||||||||||
LOON LLC | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
Amount of loss from impairment of investment | $ 8,363,000 |
Investments in Companies Acco_4
Investments in Companies Accounted for Using the Equity Methods - Investment in Limited Partnership Fund (Details) - USD ($) | Mar. 24, 2021 | Jan. 04, 2021 | Jul. 15, 2020 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 |
Equity Method Investments | |||||||
Equity method investment loss, net of tax | $ (10,481,000) | $ (5,487,000) | $ (3,944,000) | ||||
Provision for income taxes | 539,000 | 5,848,000 | 4,641,000 | ||||
Carrying value of investment | 7,168,000 | 4,442,000 | |||||
Limited Partnership Fund | |||||||
Equity Method Investments | |||||||
Capital contributions | $ 525,000 | $ 977,000 | $ 1,173,000 | $ 2,377,000 | |||
Equity method investment loss, net of tax | (49,000) | 394,000 | |||||
Provision for income taxes | 11,000 | 111,000 | |||||
Limited Partnership Fund | Long term investments | |||||||
Equity Method Investments | |||||||
Carrying value of investment | 7,168,000 | 4,442,000 | |||||
HAPSMobile | Equity method investment loss, net of tax | |||||||
Equity Method Investments | |||||||
Equity method investment loss, net of tax | $ 10,530,000 | $ 4,982,000 | $ 3,944,000 |
Investments in Companies Acco_5
Investments in Companies Accounted for Using the Equity Methods - Summarized financial information of equity method investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | Apr. 30, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Equity Method Investments | |||||||||||
Current assets | $ 401,638 | $ 503,927 | $ 401,638 | $ 503,927 | |||||||
Noncurrent assets | 10,440 | 10,605 | 10,440 | 10,605 | |||||||
Current liabilities | 96,185 | 66,953 | 96,185 | 66,953 | |||||||
Gross loss | 59,655 | $ 28,641 | $ 40,851 | $ 35,411 | 53,168 | $ 23,496 | $ 35,166 | $ 41,272 | 164,558 | 153,102 | $ 128,403 |
Net income | 23,345 | 41,070 | 47,419 | ||||||||
Limited Partnership Fund | |||||||||||
Equity Method Investments | |||||||||||
Current assets | 9,106 | 67,387 | 9,106 | 67,387 | |||||||
Noncurrent assets | 65,717 | 170,602 | 65,717 | 170,602 | |||||||
Current liabilities | $ 76,492 | $ 72,505 | 76,492 | 72,505 | |||||||
Revenue | 159 | 25 | |||||||||
Gross loss | (1,241) | (1,331) | |||||||||
Realized and unrealized losses on investments | (131,971) | (7,028) | |||||||||
Net income | $ (190,454) | $ (85,818) | $ (63,107) |
Warranty Reserves (Details)
Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Warranty Reserves | ||
Beginning balance | $ 2,015 | $ 1,704 |
Warranty expense | 1,650 | 2,258 |
Changes in estimates related to pre-existing warranties | (189) | |
Warranty costs settled | (1,324) | (1,758) |
Ending balance | $ 2,341 | $ 2,015 |
Warranty Reserves Estimated Cos
Warranty Reserves Estimated Cost (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Warranty Reserves | ||
Changes in estimates related to pre-existing warranties | $ (189,000) | |
Product Warranty Expense | 288,000 | |
UAS | ||
Warranty Reserves | ||
Product Warranty Expense | 0 | $ 251,000 |
UAS | Warranty reserve. | ||
Warranty Reserves | ||
Changes in estimates related to pre-existing warranties | $ 491,000 | |
Revised warranty reserve charges | $ 302,000 |
Employee Savings Plan (Details)
Employee Savings Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Employee Savings Plan | |||
Amount of expense in contribution to the plan | $ 5,764 | $ 4,744 | $ 3,961 |
Debt - (Details)
Debt - (Details) | Feb. 19, 2021USD ($)payment |
Arcturus UAV Inc. | Maximum | |
Debt | |
Percentage of outstanding equity interests in foreign subsidiaries | 65.00% |
Revolving credit facility | |
Debt | |
Additional interest rate if default occurs (as a percentage) | 2.00% |
Revolving credit facility | Minimum | |
Debt | |
Commitment fees (as a percentage) | 0.20% |
Revolving credit facility | Maximum | |
Debt | |
Commitment fees (as a percentage) | 0.35% |
Revolving credit facility | London Interbank Offered Rate (LIBOR) | |
Debt | |
Interest rate | 1.00% |
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Minimum | |
Debt | |
Interest rate | 0.00% |
Revolving credit facility | Base Rate | |
Debt | |
Interest rate | 0.50% |
Revolving credit facility | Arcturus UAV Inc. | |
Debt | |
Term of loan | 5 years |
Amount of loan | $ 100,000,000 |
Standby Letters of Credit | Arcturus UAV Inc. | |
Debt | |
Amount of sublimit | $ 10,000,000 |
Term loans | Period Five | |
Debt | |
Amount of annual required payment expressed as a percent of the outstanding obligation | 80.00% |
Term loans | Arcturus UAV Inc. | |
Debt | |
Amount of loan | $ 200,000,000 |
Term of amortization | 5 years |
Term loans | Arcturus UAV Inc. | Period One Through Four | |
Debt | |
Amount of annual required payment expressed as a percent of the outstanding obligation | 5.00% |
Term loans | Arcturus UAV Inc. | Period Five | |
Debt | |
Number of quarterly payments | payment | 3 |
Amount of quarterly required payment expressed as a percentage of outstanding obligation | 1.25% |
Debt - Long-term debt (Details)
Debt - Long-term debt (Details) $ in Thousands | Apr. 30, 2021USD ($) |
Long-term debt | |
Total debt | $ 200,000 |
Less current portion | 10,000 |
Total long-term debt, less current portion | 190,000 |
Total long-term debt, net of unamortized debt issuance costs - term loans | 187,512 |
Term loans | |
Long-term debt | |
Total debt | 200,000 |
Less unamortized debt issuance costs | 2,488 |
Revolving credit facility | |
Long-term debt | |
Less unamortized debt issuance costs | $ 1,244 |
Debt - Future principle payment
Debt - Future principle payments (Details) $ in Thousands | Apr. 30, 2021USD ($) |
Future principle payments | |
2022 | $ 10,000 |
2023 | 10,000 |
2024 | 10,000 |
2025 | 10,000 |
2026 | 160,000 |
Total | $ 200,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2019 | |
Leases | ||
Option to extend | true | |
Option to terminate | true | |
Option to terminate period (in years) | 2 years | |
Rental expense under operating leases | $ 4,609 | |
Minimum | ||
Leases | ||
Remaining lease terms (in years) | 1 year | |
Maximum | ||
Leases | ||
Remaining lease terms (in years) | 9 years | |
Option to extend period (in years) | 10 years |
Leases - Components of lease co
Leases - Components of lease costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Components of lease costs | ||
Operating lease cost | $ 5,150 | $ 4,574 |
Short term lease cost | 602 | 500 |
Variable lease cost | 23 | 987 |
Sublease income | (91) | (287) |
Total lease costs, net | $ 5,684 | $ 5,774 |
Leases - Supplemental lease inf
Leases - Supplemental lease information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Leases | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 5,070 | $ 3,897 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 18,729 | $ 13,022 |
Weighted average remaining lease term | 71 months | 34 months |
Weighted average discount rate | 3.60% | 3.70% |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) $ in Thousands | Apr. 30, 2021USD ($) |
Maturities of operating lease liabilities: | |
2022 | $ 6,711 |
2023 | 5,185 |
2024 | 4,496 |
2025 | 3,530 |
2026 | 2,329 |
Thereafter | 6,572 |
Total lease payments | 28,823 |
Less: imputed interest | (3,566) |
Total present value of operating lease liabilities | $ 25,257 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jul. 30, 2017 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2017 | |
Stock Based Compensation | |||||
Stock based compensation expense | $ 6,932,000 | $ 6,227,000 | $ 6,985,000 | ||
Exercisable period from grant date | 3 years | ||||
Options granted (in shares) | 0 | 0 | 0 | ||
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 | $ 0 | ||||
Exercisable period from grant date | 3 years | ||||
Fiscal 2017 LTIP | Performance based restricted stock units | |||||
Stock Based Compensation | |||||
Stock based compensation expense | $ 0 | $ 0 | |||
Exercisable period from grant date | 3 years |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Shares | |||
Options granted (in shares) | 0 | 0 | 0 |
Stock options | |||
Intrinsic value of options | |||
Intrinsic value of options exercised | $ 4,828 | $ 833 | $ 371 |
Intrinsic value of options outstanding | 24,068 | 11,779 | |
Intrinsic value of exercisable options | $ 24,068 | $ 11,242 | |
Restated 2006 Plan | Stock options | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 334,026 | 337,026 | 339,026 |
Options exercised (in shares) | (53,500) | (3,000) | (2,000) |
Outstanding at the end of the year (in shares) | 280,526 | 334,026 | 337,026 |
Options exercisable (in shares) | 280,526 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the year (in dollars per share) | $ 25.19 | $ 25.25 | $ 25.29 |
Options exercised (in dollars per share) | 28.45 | 31.15 | 32.19 |
Outstanding at the end of the year (in dollars per share) | 24.57 | $ 25.19 | $ 25.25 |
Options exercisable (in dollars per share) | $ 24.57 | ||
1992 Plan | Stock options | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 1,113 | 14,302 | 18,302 |
Options exercised (in shares) | (1,113) | (13,189) | (4,000) |
Outstanding at the end of the year (in shares) | 1,113 | 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 |
Stock-Based Compensation Non-Ve
Stock-Based Compensation Non-Vested Stock Options (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Options | |||
Options granted (in shares) | 0 | 0 | 0 |
Weighted Average Grant Date Fair value | |||
Unrecognized compensation cost related to non-vested stock awards | $ 11,737,000 | ||
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 | 2 years 4 months 24 days | ||
Exercise of stock options | $ 1,522,000 | $ 100,000 | $ 71,000 |
Excess tax benefit from stock-based compensation | $ 0 | $ 0 | 0 |
Stock options | |||
Options | |||
Non-vested at beginning of year (in shares) | 16,000 | ||
Vested (in shares) | (16,000) | ||
Non-vested at end of year (in shares) | 16,000 | ||
Weighted Average Grant Date Fair value | |||
Non-vested at beginning of year (in dollars per share) | $ 10.16 | ||
Vested (in dollars per share) | $ 10.16 | ||
Non-vested at end of year (in dollars per share) | $ 10.16 | ||
Exercise of stock options | $ 1,522,000 | $ 101,000 | 67,000 |
Fair value of shares vested | $ 5,312,000 | $ 4,900,000 | $ 4,756,000 |
Stock-Based Compensation Other
Stock-Based Compensation Other (Details) | 12 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Options Exercisable | |
Weighted Average Remaining Contractual Life | 2 years 10 months 9 days |
18.07 - 19.16 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | $ 18.07 |
Range of Exercise Price, high end of range (in dollars per share) | $ 19.16 |
Options Outstanding | |
Number of Options (in shares) | shares | 54,000 |
Weighted Average Remaining Contractual Life In Years | 1 year 11 months 23 days |
Weighted Average Exercise Price (in dollars per share) | $ 18.26 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 54,000 |
Weighted Average Exercise Price (in dollars per share) | $ 18.26 |
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 | 55,000 |
Weighted Average Remaining Contractual Life In Years | 2 years 14 days |
Weighted Average Exercise Price (in dollars per share) | $ 20.29 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 55,000 |
Weighted Average Exercise Price (in dollars per share) | $ 20.29 |
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 | 4 years 1 month 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 26.70 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 80,000 |
Weighted Average Exercise Price (in dollars per share) | $ 26.70 |
27.00 - 28.53 | |
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) | $ 28.53 |
Options Outstanding | |
Number of Options (in shares) | shares | 50,000 |
Weighted Average Remaining Contractual Life In Years | 2 years 6 months 21 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 |
28.54 - 31.27 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 28.54 |
Range of Exercise Price, high end of range (in dollars per share) | $ 31.27 |
Options Outstanding | |
Number of Options (in shares) | shares | 41,526 |
Weighted Average Remaining Contractual Life In Years | 2 years 11 months 8 days |
Weighted Average Exercise Price (in dollars per share) | $ 31.13 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 41,526 |
Weighted Average Exercise Price (in dollars per share) | $ 31.13 |
18.07 - 31.27 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 18.07 |
Range of Exercise Price, high end of range (in dollars per share) | $ 31.27 |
Options Outstanding | |
Number of Options (in shares) | shares | 280,526 |
Weighted Average Remaining Contractual Life In Years | 2 years 10 months 9 days |
Weighted Average Exercise Price (in dollars per share) | $ 24.57 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 280,526 |
Weighted Average Exercise Price (in dollars per share) | $ 24.57 |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Awards (Details) - Restricted stock awards shares in Thousands | 12 Months Ended |
Apr. 30, 2021$ / sharesshares | |
Shares | |
Unvested stock at beginning of year (in shares) | shares | 201,647 |
Stock granted (in shares) | shares | 117,468 |
Stock vested (in shares) | shares | (133,578) |
Stock canceled (in shares) | shares | (5,509) |
Unvested stock at end of year (in shares) | shares | 180,028 |
Weighted Average Grant Date Fair Value | |
Unvested stock at beginning of year (in dollars per share) | $ / shares | $ 55.84 |
Stock granted (in dollars per shares) | $ / shares | 79.96 |
Stock vested (in dollars per shares) | $ / shares | 39.77 |
Stock canceled (in dollars per shares) | $ / shares | 72.03 |
Unvested stock at end of year (in dollars per share) | $ / shares | $ 83.02 |
Long-Term Incentive Awards (Det
Long-Term Incentive Awards (Details) - USD ($) | Aug. 01, 2020 | Jul. 30, 2021 | Aug. 01, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | Jul. 30, 2017 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2017 |
Stock Based Compensation | ||||||||||
Stock based compensation expense | $ 6,932,000 | $ 6,227,000 | $ 6,985,000 | |||||||
Exercisable period from grant date | 3 years | |||||||||
LTIP | ||||||||||
Stock Based Compensation | ||||||||||
Stock based compensation expense | $ 3,667,000 | 2,657,000 | ||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | ||||||||||
Stock Based Compensation | ||||||||||
Stock based compensation expense | 1,072,000 | |||||||||
Exercisable period from grant date | 3 years | |||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | 100% Vested | ||||||||||
Stock Based Compensation | ||||||||||
Vesting (as a percentage) | 100.00% | |||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | 50% Vested | ||||||||||
Stock Based Compensation | ||||||||||
Vesting (as a percentage) | 50.00% | |||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | 250% Vested | ||||||||||
Stock Based Compensation | ||||||||||
Vesting (as a percentage) | 250.00% | |||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | Maximum | ||||||||||
Stock Based Compensation | ||||||||||
Stock based compensation expense | 7,784,000 | |||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | ||||||||||
Stock Based Compensation | ||||||||||
Stock based compensation expense | 620,000 | 649,000 | ||||||||
Exercisable period from grant date | 3 years | |||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | 100% Vested | ||||||||||
Stock Based Compensation | ||||||||||
Vesting (as a percentage) | 100.00% | |||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | 50% Vested | ||||||||||
Stock Based Compensation | ||||||||||
Vesting (as a percentage) | 50.00% | |||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | 200% Vested | ||||||||||
Stock Based Compensation | ||||||||||
Vesting (as a percentage) | 200.00% | |||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | Maximum | ||||||||||
Stock Based Compensation | ||||||||||
Stock based compensation expense | 4,188,000 | |||||||||
Fiscal 2019 LTIP | Performance based restricted stock units | ||||||||||
Stock Based Compensation | ||||||||||
Stock based compensation expense | 368,000 | $ 386,000 | $ 572,000 | |||||||
Exercisable period from grant date | 3 years | |||||||||
Issue of fully-vested shares of common stock to settle | 18,541 | |||||||||
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 2018 LTIP | Performance based restricted stock units | ||||||||||
Stock Based Compensation | ||||||||||
Stock based compensation expense | 0 | |||||||||
Exercisable period from grant date | 3 years | |||||||||
Issue of fully-vested shares of common stock to settle | 16,228 | |||||||||
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 2017 LTIP | Performance based restricted stock units | ||||||||||
Stock Based Compensation | ||||||||||
Stock based compensation expense | $ 0 | $ 0 | ||||||||
Exercisable period from grant date | 3 years | |||||||||
Issue of fully-vested shares of common stock to settle | 14,814 |
Income Tax (Details)
Income Tax (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Taxes | |||
Domestic | $ 34,274,000 | $ 52,730,000 | $ 50,644,000 |
Foreign | 91,000 | (60,000) | (166,000) |
Income before income taxes | 34,365,000 | 52,670,000 | 50,478,000 |
Equity method investment loss, net of tax | (10,481,000) | (5,487,000) | (3,944,000) |
Income (loss) before income taxes | 23,884,000 | $ 47,183,000 | $ 46,534,000 |
Deferred tax liabilities for income taxes on undistributed earnings | $ 0 |
Income Taxes Reconciliation (De
Income Taxes Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Taxes | |||
U.S. federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
State and local income taxes, net of federal benefit (as a percent) | (1.40%) | (2.10%) | (2.20%) |
R&D and other tax credits (as a percent) | (11.50%) | (6.80%) | (8.10%) |
Valuation allowance (as a percent) | 3.20% | 3.40% | 3.70% |
Return to provision adjustments (as a percent) | (0.30%) | 0.10% | (0.30%) |
Permanent items (as a percent) | 3.60% | 0.70% | 0.80% |
Foreign derived intangible income (as a percent) | (7.60%) | (3.90%) | (3.70%) |
Excess benefit of stock options (as a percent) | (5.70%) | (1.50%) | (3.10%) |
Other (as a percent) | 0.30% | 0.20% | 1.10% |
Effective income tax rate (as a percent) | 1.60% | 11.10% | 9.20% |
Current: | |||
Federal | $ 3,094,000 | $ 3,005,000 | $ 1,953,000 |
State | 448,000 | 390,000 | 228,000 |
Current | 3,542,000 | 3,395,000 | 2,181,000 |
Deferred: | |||
Federal | (3,247,000) | 2,063,000 | 1,945,000 |
State | 244,000 | 421,000 | 551,000 |
Foreign | (31,000) | (36,000) | |
Deferred | (3,003,000) | 2,453,000 | 2,460,000 |
Total income tax expense (benefit) | 539,000 | 5,848,000 | $ 4,641,000 |
Deferred income tax assets: | |||
Accrued expenses | 4,422,000 | 3,337,000 | |
Stock based compensation | 2,492,000 | 2,259,000 | |
Allowances, reserves, and other | 1,482,000 | 1,784,000 | |
Outside basis difference | 4,617,000 | 2,264,000 | |
Unrealized loss on securities | 110,000 | 9,000 | |
Net operating loss and credit carry-forwards | 33,155,000 | 12,832,000 | |
Intangibles basis | 605,000 | ||
Lease liability | 5,645,000 | 2,282,000 | |
Total deferred income tax assets | 51,923,000 | 25,372,000 | |
Deferred income tax liabilities: | |||
Fixed asset basis | (10,286,000) | (1,218,000) | |
Revenue recognition | (3,112,000) | ||
Right of use assets | (5,119,000) | (1,965,000) | |
Intangible basis | (17,004,000) | ||
Total deferred income tax liabilities | (32,409,000) | (6,295,000) | |
Valuation allowance | (17,453,000) | (14,149,000) | |
Net deferred tax assets | $ 2,061,000 | $ 4,928,000 |
Income Taxes Carryforward (Deta
Income Taxes Carryforward (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Tax Credit Carryforward | ||
Valuation allowance | $ 17,453,000 | $ 14,149,000 |
Increase in valuation allowance | 3,304,000 | $ 2,871,000 |
State | ||
Tax Credit Carryforward | ||
Tax credit carryforwards | 28,530,000 | |
IRS | ||
Tax Credit Carryforward | ||
Tax credit carryforwards | $ 2,260,000 |
Income Taxes Other (Details)
Income Taxes Other (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Unrecognized tax benefits | ||
Federal net operating loss carryforwards | $ 88,719,000 | |
State net operating loss carryforwards | 24,685,000 | |
Foreign net operating loss carryforwards | 341,000 | |
Operating loss not subject to expiration | 8,754,000 | |
Operating losses subject to expiration | 15,931,000 | |
Activity related to gross unrecognized tax benefits | ||
Beginning balance | 14,347,000 | $ 12,593,000 |
Increases related to prior year tax positions | 1,305,000 | 62,000 |
Decreases related to prior year tax positions | (116,000) | |
Increases related to current year tax positions | 2,074,000 | 1,971,000 |
Decreases related to lapsing of statute of limitations | (54,000) | (279,000) |
Ending balance | 17,556,000 | 14,347,000 |
Accrued interest and penalties related to unrecognized tax positions | 23,000 | 21,000 |
Statute of limitations expiration | ||
Unrecognized tax benefits | ||
Unrecognized tax benefits which would impact the Company's effective tax rate if recognized | 17,556,000 | $ 14,347,000 |
Estimated decrease in unrecognized tax benefits in the next twelve months | $ (1,324,000) |
Income Taxes - Tax Cuts and Job
Income Taxes - Tax Cuts and Jobs Act (Details) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Taxes | |||
U.S. federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Accumulated other comprehensive loss | |||
Beginning Balance | $ 328 | ||
Ending Balance | 343 | $ 328 | |
Unrealized losses, tax portion | 1 | 14 | $ 51 |
Available-For-Sale Securities | |||
Accumulated other comprehensive loss | |||
Beginning Balance | 50 | ||
Unrealized losses, net of $1 of taxes | (60) | ||
Ending Balance | (10) | 50 | |
Foreign Currency Translation Adjustments | |||
Accumulated other comprehensive loss | |||
Beginning Balance | 278 | ||
Changes in foreign currency translation adjustments | 75 | ||
Ending Balance | 353 | 278 | |
Accumulated Other Comprehensive Income | |||
Accumulated other comprehensive loss | |||
Beginning Balance | 328 | ||
Changes in foreign currency translation adjustments | 75 | ||
Unrealized losses, net of $1 of taxes | (60) | ||
Ending Balance | $ 343 | $ 328 |
Changes in Accounting Estimat_2
Changes in Accounting Estimates (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Amount of revised aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ 1,041,000 | |
Design and development agreement | Revision of estimate of total costs required to complete the contracts | Cumulative catch-up adjustment | ||
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ 1,099,000 | |
TMS contract | ||
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | (1,041,000) | |
TMS contract | Revision of estimate of total costs required to complete the contracts | Cumulative catch-up adjustment | ||
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ (1,403,000) | $ (1,099,000) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | Dec. 04, 2019 | May 11, 2019 | May 10, 2019 | Feb. 09, 2019 | Feb. 08, 2019 | Dec. 27, 2017 | |
Long-Term Incentive Awards | |||||||||
Revenue | $ 42,426 | $ 60,864 | $ 55,407 | ||||||
Unbilled related party receivables | 544 | 15,779 | |||||||
Design and Development Agreement | |||||||||
Long-Term Incentive Awards | |||||||||
Maximum net value | 180,806 | ||||||||
Revenue | 42,426 | 60,864 | 55,407 | ||||||
Board member | Consulting agreement | |||||||||
Long-Term Incentive Awards | |||||||||
Amount paid to related party | $ 29 | 59 | $ 55 | ||||||
HAPSMobile | |||||||||
Long-Term Incentive Awards | |||||||||
Ownership percentage | 7.00% | 7.00% | 5.00% | 10.00% | 10.00% | 5.00% | 5.00% | ||
Unbilled receivables and retention | HAPSMobile | |||||||||
Long-Term Incentive Awards | |||||||||
Unbilled related party receivables | $ 544 | $ 15,779 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Apr. 30, 2021 | Apr. 30, 2020 |
Commitments and Contingencies | ||
Letters of credit outstanding | $ 5,029,000 | $ 2,716,000 |
Reserve for incurred cost claim audits | $ 0 | $ 0 |
Business Acquisitions - Arcturu
Business Acquisitions - Arcturus (Details) - USD ($) | Feb. 19, 2021 | Apr. 30, 2021 | Apr. 30, 2021 | Apr. 30, 2020 |
Fair value of assets acquired: | ||||
Goodwill | $ 314,205,000 | $ 314,205,000 | $ 6,340,000 | |
Arcturus UAV Inc. | ||||
Business Acquisition [Line Items] | ||||
Total paid | $ 422,602,000 | |||
Cash on hand | 150,218,000 | |||
Value of shares issued | $ 72,384,000 | |||
Fair market value of shares issued | $50,000,000 | |||
Amount of representation and warranty insurance coverage | $ 40,000,000 | |||
Revenue | 15,837,000 | |||
Loss from operations | $ 1,869,000 | |||
Acquisition-related costs | 6,015,000 | |||
Fair value of assets acquired: | ||||
Accounts receivable | 6,050,000 | |||
Unbilled receivable | 4,176,000 | |||
Inventories, net | 21,701,000 | |||
Prepaid and other current assets | 3,076,000 | |||
Property and equipment, net | 38,739,000 | |||
Operating lease assets | 11,429,000 | |||
Other assets | 136,000 | |||
Goodwill | 288,611,000 | |||
Total assets acquired | 457,118,000 | |||
Fair value of liabilities assumed: | ||||
Accounts payable | 3,085,000 | |||
Wages and related accruals | 1,698,000 | |||
Customer advances | 1,818,000 | |||
Other current liabilities | 8,534,000 | |||
Operating lease liabilities | 12,297,000 | |||
Other non-current liabilities | 1,190,000 | |||
Deferred income taxes, net | 5,869,000 | |||
Total liabilities assumed | 34,491,000 | |||
Total identifiable net assets | 422,627,000 | |||
Fair value of consideration transferred: | ||||
Cash consideration, net of cash acquired | 350,243,000 | |||
Equity consideration | 72,384,000 | |||
Total | 422,627,000 | |||
Supplemental Pro Forma Information (unaudited) | ||||
Revenue | 478,579,000 | 454,769,000 | ||
Net income (loss) | $ 27,572,000 | $ 31,264,000 | ||
Arcturus UAV Inc. | Technology | ||||
Fair value of assets acquired: | ||||
Intangible assets | 20,500,000 | |||
Arcturus UAV Inc. | Customer relationships | ||||
Fair value of assets acquired: | ||||
Intangible assets | 62,700,000 | |||
Arcturus UAV Inc. | Adjustment Escrow | ||||
Business Acquisition [Line Items] | ||||
Amount held in escrow | 6,500,000 | |||
Arcturus UAV Inc. | Indemnification Escrow | ||||
Business Acquisition [Line Items] | ||||
Amount held in escrow | 1,822,500 | |||
Revolving credit facility | Arcturus UAV Inc. | ||||
Business Acquisition [Line Items] | ||||
Amount of loan | 100,000,000 | |||
Term loans | Arcturus UAV Inc. | ||||
Business Acquisition [Line Items] | ||||
Amount of loan | $ 200,000,000 |
Business Acquisitions - ISG (De
Business Acquisitions - ISG (Details) - USD ($) | Feb. 23, 2021 | Apr. 30, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 |
Business Acquisition [Line Items] | |||||
Amortization expense | $ 6,469,000 | $ 2,822,000 | $ 357,000 | ||
Goodwill | $ 314,205,000 | 314,205,000 | 6,340,000 | ||
Intelligent Systems Group | |||||
Business Acquisition [Line Items] | |||||
Period of goodwill deduction | 15 years | ||||
Total paid | $ 29,700,000 | ||||
Contingent consideration paid | $ 6,000,000 | ||||
Number of years to reach revenue targets | 3 years | ||||
Revenue | 1,724,000 | ||||
Amortization expense | $ 474,000 | ||||
Acquisition-related costs | 954,000 | ||||
Other assets | $ 217,000 | ||||
Goodwill | 19,254,000 | ||||
Total assets acquired | 35,371,000 | ||||
Fair value of consideration transferred: | |||||
Cash | 29,700,000 | ||||
Holdback | 150,000 | ||||
Contingent consideration | 5,521,000 | ||||
Total | 35,371,000 | ||||
Supplemental Pro Forma Information (unaudited) | |||||
Revenue | 406,444,000 | 379,627,000 | |||
Net income (loss) | $ 23,787,000 | $ 39,025,000 | |||
Intelligent Systems Group | Technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 11,400,000 | ||||
Intelligent Systems Group | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 4,500,000 |
Business Acquisitions - Pulse (
Business Acquisitions - Pulse (Details) | Feb. 26, 2020USD ($) | Jun. 10, 2019USD ($)item | Jan. 25, 2020USD ($) | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) |
Business Acquisitions | ||||||
Holdback and retention payments | $ 1,492,000 | |||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | ||||||
Goodwill | 314,205,000 | $ 6,340,000 | ||||
Supplemental Pro forma Information | ||||||
Amortization of Intangible Assets | 6,469,000 | 2,822,000 | $ 357,000 | |||
Altoy | ||||||
Business Acquisitions | ||||||
Amount of retention to cover post closing indemnification claims | $ 250,000 | |||||
Amount of holdback | 1,250,000 | |||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | ||||||
Goodwill | 6,340,000 | |||||
Inventory | 334,000 | |||||
Other assets, net of liabilities assumed | (614,000) | |||||
Total assets acquired | 21,880,000 | |||||
Fair value of consideration transferred: | ||||||
Cash | 18,677,000 | |||||
Holdback | 1,250,000 | |||||
Retention | 250,000 | |||||
Contingent consideration | 1,703,000 | |||||
Total | 21,880,000 | |||||
Supplemental Pro forma Information | ||||||
Revenue | 367,523,000 | 316,878,000 | ||||
Net income (loss) | 41,481,000 | $ 43,204,000 | ||||
Altoy | Technology | ||||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | ||||||
Intangible assets | 14,950,000 | |||||
Altoy | In-process research and development | ||||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | ||||||
Intangible assets | 550,000 | |||||
Altoy | Non-compete agreements | ||||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | ||||||
Intangible assets | $ 320,000 | |||||
Pulse Aerospace, LLC | ||||||
Business Acquisitions | ||||||
Ownership interest acquired | 100.00% | |||||
Amount of cash less closing indebtedness and transaction costs | $ 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 | |||||
Holdback and retention payments | 1,492,000 | |||||
Number of research and development milestones | item | 2 | |||||
Each milestone achievement | $ 2,500,000 | |||||
Total milestone achievement | $ 5,000,000 | |||||
Additional consideration | $ 1,703,000 | |||||
Period of goodwill deduction | 15 years | |||||
Fair value of consideration transferred: | ||||||
Holdback | $ 1,250,000 | |||||
Retention | $ 250,000 | |||||
Supplemental Pro forma Information | ||||||
Revenue | 6,607,000 | |||||
Amortization of Intangible Assets | $ 2,461,000 | |||||
Pulse Aerospace, LLC | Discount rate | ||||||
Business Acquisitions | ||||||
Measurement input | 4.5 | |||||
Pulse Aerospace, LLC | SG&A | ||||||
Business Acquisitions | ||||||
Business acquisitions gain | $ 832,000 | |||||
Pulse Aerospace, LLC | Minimum | ||||||
Business Acquisitions | ||||||
Each milestone achievement | $ 0 | |||||
Pulse Aerospace, LLC | Maximum | ||||||
Business Acquisitions | ||||||
Each milestone achievement | $ 2,500,000 | |||||
Fair value of consideration transferred: | ||||||
Cash | $ 6,000,000 |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | Apr. 30, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Segments | |||||||||||
Gross margin | $ 59,655 | $ 28,641 | $ 40,851 | $ 35,411 | $ 53,168 | $ 23,496 | $ 35,166 | $ 41,272 | $ 164,558 | $ 153,102 | $ 128,403 |
Income (loss) from operations | 43,313 | 47,135 | 33,826 | ||||||||
Total assets | 928,566 | 584,954 | 928,566 | 584,954 | |||||||
Product segments | |||||||||||
Segments | |||||||||||
Revenue | 394,912 | 367,296 | 314,274 | ||||||||
Gross margin | 164,558 | 153,102 | 128,403 | ||||||||
Income (loss) from operations | 43,313 | 47,135 | 33,826 | ||||||||
Total assets | 928,566 | 584,954 | 928,566 | 584,954 | 508,844 | ||||||
UAS | Product segments | |||||||||||
Segments | |||||||||||
Revenue | 379,075 | 367,296 | 314,274 | ||||||||
Gross margin | 161,593 | 153,102 | 128,403 | ||||||||
Income (loss) from operations | 45,182 | 47,135 | 33,826 | ||||||||
Total assets | 439,320 | $ 584,954 | 439,320 | $ 584,954 | $ 508,844 | ||||||
MUAS | Product segments | |||||||||||
Segments | |||||||||||
Revenue | 15,837 | ||||||||||
Gross margin | 2,965 | ||||||||||
Income (loss) from operations | (1,869) | ||||||||||
Total assets | $ 489,246 | $ 489,246 |
Geographic Information (Details
Geographic Information (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Product Information | |||
Deploys in-service assets | $ 36,047,000 | ||
Non-U.S. customers | |||
Product Information | |||
Percentage of revenue | 39.00% | 45.00% | 52.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | May 29, 2021USD ($) | May 03, 2021USD ($) | May 03, 2021EUR (€) | May 29, 2021JPY (¥) | May 03, 2021EUR (€) |
Master Design and Development Agreement [Member] | |||||
Subsequent Events | |||||
Term of MDDA | 5 years | ||||
Maximum value under MDDA | $ 51,200,000 | ||||
Execution of MDDA | $ 4,600,000 | ¥ 500,000,000 | |||
Telerob | |||||
Subsequent Events | |||||
Ownership interest acquired | 100.00% | 100.00% | |||
Total paid | $ 45,400,000 | € 37,455,000 | |||
Amount held in escrow | 3,636,000 | € 3,000,000 | |||
Amount of indebtedness paid | $ 9,468,000 | € 7,811,000 | |||
Number of months until escrow will be release | 30 months | 30 months | |||
Telerob | Business Combination, Specific Revenue Targets Achieved In First Earnout Year [Member] | |||||
Subsequent Events | |||||
Contingent consideration paid | $ 2,424,000 | € 2,000,000 | |||
Period to obtain target | 12 months | 12 months | |||
Telerob | Business Combination, Specific Revenue Targets Achieved Following The First Earnout Year [Member] | |||||
Subsequent Events | |||||
Contingent consideration paid | $ 2,424,000 | € 2,000,000 | |||
Period to obtain target | 12 months | 12 months | |||
Telerob | Business Combination, Specific Awards Or Orders From US Military Are Achieved Prior To 36 Month Post Closing Period [Member] | |||||
Subsequent Events | |||||
Contingent consideration paid | $ 2,424,000 | € 2,000,000 | |||
Period to obtain target | 36 months | 36 months |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | Apr. 30, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Selected Quarterly Financial Information | |||||||||||
Revenue | $ 136,015 | $ 78,782 | $ 92,665 | $ 87,450 | $ 135,223 | $ 61,891 | $ 83,271 | $ 86,911 | $ 394,912 | $ 367,296 | $ 314,274 |
Gross margin | 59,655 | 28,641 | 40,851 | 35,411 | 53,168 | 23,496 | 35,166 | 41,272 | $ 164,558 | $ 153,102 | $ 128,403 |
Net (loss) income attributable to AeroVironment, Inc. from continuing operations | $ 10,946 | $ 211 | $ 2,094 | $ 10,080 | $ 17,736 | $ (1,008) | $ 7,501 | $ 17,110 | |||
Net (loss) income per share attributable to AeroVironment, Inc. from continuing operations-basic | $ 0.45 | $ 0.01 | $ 0.09 | $ 0.42 | $ 0.74 | $ (0.04) | $ 0.32 | $ 0.72 | $ 0.97 | $ 1.74 | $ 1.77 |
Net (loss) income per share attributable to AeroVironment, Inc. from continuing operations-diluted | $ 0.44 | $ 0.01 | $ 0.09 | $ 0.42 | $ 0.73 | $ (0.04) | $ 0.31 | $ 0.71 | $ 0.96 | $ 1.72 | $ 1.74 |
Number of weeks | 91 days | ||||||||||
LOON LLC | |||||||||||
Selected Quarterly Financial Information | |||||||||||
Amount of loss from impairment of investment | $ 8,363 | ||||||||||
Other expense | |||||||||||
Selected Quarterly Financial Information | |||||||||||
Legal accrual | $ 9,300 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Allowance for doubtful accounts | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | $ 1,190 | $ 1,041 | $ 1,080 |
Charged to Cost and Expenses | 82 | 219 | 198 |
Deductions | (677) | (70) | (237) |
Balance at End of Period | 595 | 1,190 | 1,041 |
Warranty reserve | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 2,015 | 1,704 | 2,090 |
Charged to Cost and Expenses | 1,650 | 2,069 | 702 |
Deductions | (1,324) | (1,758) | (1,088) |
Balance at End of Period | 2,341 | 2,015 | 1,704 |
Reserve for inventory excess and obsolescence | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 10,232 | 7,824 | 3,953 |
Balance Acquired from Acquisition | 1,415 | ||
Charged to Cost and Expenses | 1,178 | 5,377 | 5,054 |
Deductions | (2,536) | (2,969) | (1,183) |
Balance at End of Period | 10,289 | 10,232 | 7,824 |
Reserve for self-insured medical claims | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 753 | 944 | 1,003 |
Charged to Cost and Expenses | 11,329 | 13,031 | 10,808 |
Deductions | (10,789) | (13,222) | (10,867) |
Balance at End of Period | $ 1,293 | $ 753 | $ 944 |