Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Jun. 22, 2022 | Oct. 31, 2021 | |
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, 2022 | ||
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 | VA | ||
Entity Address, Postal Zip Code | 22202 | ||
City Area Code | 805 | ||
Local Phone Number | 520-8350 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,188.8 | ||
Entity Common Stock, Shares Outstanding | 24,946,880 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | Los Angeles, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 77,231 | $ 148,741 |
Short-term investments | 24,716 | 31,971 |
Accounts receivable, net of allowance for doubtful accounts of $592 at April 30, 2022 and $595 at April 30, 2021 | 60,170 | 62,647 |
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $2,229 at April 30, 2022 and $544 at April 30, 2021) | 104,194 | 71,632 |
Inventories | 90,629 | 71,646 |
Income taxes receivable | 442 | |
Prepaid expenses and other current assets | 11,527 | 15,001 |
Total current assets | 368,909 | 401,638 |
Long-term investments | 15,433 | 12,156 |
Property and equipment, net | 62,296 | 58,896 |
Operating lease right-of-use assets | 26,769 | 22,902 |
Deferred income taxes | 7,290 | 2,061 |
Intangibles, net | 97,224 | 106,268 |
Goodwill | 334,347 | 314,205 |
Other assets | 1,932 | 10,440 |
Total assets | 914,200 | 928,566 |
Current liabilities: | ||
Accounts payable | 19,244 | 24,841 |
Wages and related accruals | 25,398 | 28,068 |
Customer advances | 8,968 | 7,183 |
Current portion of long-term debt | 10,000 | 10,000 |
Current operating lease liabilities | 6,819 | 6,154 |
Income taxes payable | 759 | 861 |
Other current liabilities | 30,203 | 19,078 |
Total current liabilities | 101,391 | 96,185 |
Long-term debt, net of current portion | 177,840 | 187,512 |
Non-current operating lease liabilities | 21,915 | 19,103 |
Other non-current liabilities | 768 | 10,141 |
Liability for uncertain tax positions | 1,450 | 3,518 |
Deferred income taxes | 2,626 | |
Commitments and contingencies | ||
Stockholders' equity: | ||
Authorized shares-10,000,000; none issued or outstanding at April 30, 2022 and April 30, 2021 | ||
Issued and outstanding shares-24,951,287 shares at April 30, 2022 and 24,777,295 shares at April 30, 2021 | 2 | 2 |
Additional paid-in capital | 267,248 | 260,327 |
Accumulated other comprehensive (loss) income | (6,514) | 343 |
Retained earnings | 347,233 | 351,421 |
Total AeroVironment, Inc. stockholders' equity | 607,969 | 612,093 |
Noncontrolling interest | 241 | 14 |
Total equity | 608,210 | 612,107 |
Total liabilities and stockholders' equity | $ 914,200 | $ 928,566 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Consolidated Balance Sheets | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 592 | $ 595 |
Due from Related Parties | $ 2,229 | $ 544 |
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 | 24,951,287 | 24,777,295 |
Common stock, outstanding shares | 24,951,287 | 24,777,295 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Revenue: | |||
Revenue | $ 445,732 | $ 394,912 | $ 367,296 |
Cost of sales: | |||
Cost of sales | 304,496 | 230,354 | 214,194 |
Gross margin: | |||
Total gross margin | 141,236 | 164,558 | 153,102 |
Selling, general and administrative | 96,434 | 67,481 | 59,490 |
Research and development | 54,689 | 53,764 | 46,477 |
(Loss) income from continuing operations | (9,887) | 43,313 | 47,135 |
Other (loss) income: | |||
Interest (expense) income, net | (5,440) | (618) | 4,828 |
Other (expense) income, net | (10,313) | (8,330) | 707 |
Sale of ownership in HAPSMobile Inc. joint venture | 6,497 | ||
(Loss) income from continuing operations before income taxes | (19,143) | 34,365 | 52,670 |
(Benefit from) provision for income taxes | (10,369) | 539 | 5,848 |
Equity method investment income (loss), net of tax | 4,589 | (10,481) | (5,487) |
Net (loss) income from continuing operations | (4,185) | 23,345 | 41,335 |
Discontinued operations: | |||
Loss on sale of business, net of tax benefit of $76 for the year ended April 30, 2020 | (265) | ||
Net loss from discontinued operations | (265) | ||
Net (loss) income | (4,185) | 23,345 | 41,070 |
Net (income) loss attributable to noncontrolling interest | 3 | 14 | (4) |
Net (loss) income attributable to AeroVironment, Inc. | $ (4,188) | $ 23,331 | $ 41,074 |
Net (loss) income per share attributable to AeroVironment, Inc.-Basic | |||
Continuing operations (in dollars per share) | $ (0.17) | $ 0.97 | $ 1.74 |
Discontinued operations (in dollars per share) | (0.01) | ||
Net (loss) income per share attributable to AeroVironment, Inc.-Basic | (0.17) | 0.97 | 1.73 |
Net (loss) income per share attributable to AeroVironment, Inc.-Diluted | |||
Continuing operations (in dollars per share) | (0.17) | 0.96 | 1.72 |
Discontinued operations (in dollars per share) | (0.01) | ||
Net (loss) income per share attributable to AeroVironment, Inc.-Diluted | $ (0.17) | $ 0.96 | $ 1.71 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 24,685,534 | 24,049,851 | 23,806,208 |
Diluted (in shares) | 24,685,534 | 24,362,656 | 24,088,167 |
Product sales | |||
Revenue: | |||
Revenue | $ 240,683 | $ 278,888 | $ 256,758 |
Cost of sales: | |||
Cost of sales | 140,596 | 149,714 | 139,131 |
Gross margin: | |||
Total gross margin | 100,087 | 129,174 | 117,627 |
Contract services | |||
Revenue: | |||
Revenue | 205,049 | 116,024 | 110,538 |
Cost of sales: | |||
Cost of sales | 163,900 | 80,640 | 75,063 |
Gross margin: | |||
Total gross margin | $ 41,149 | $ 35,384 | $ 35,475 |
Consolidated Statements of (L_2
Consolidated Statements of (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Consolidated Statements of (Loss) Income | |||
Related party revenue | $ 43,325 | $ 42,426 | $ 60,864 |
Tax expense | $ 76 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Consolidated Statements of Comprehensive (Loss) Income | |||
Net (loss) income | $ (4,185) | $ 23,345 | $ 41,070 |
Other comprehensive (loss) income: | |||
Unrealized (loss) gain on investments, net of deferred tax expense of $8, $1 and $14 for the fiscal years ended 2021, 2020 and 2019, respectively | (43) | (60) | 50 |
Change in foreign currency translation adjustments | (6,814) | 75 | 276 |
Total comprehensive (loss) income | (11,042) | 23,360 | 41,396 |
Net (income) loss attributable to noncontrolling interest | (3) | (14) | 4 |
Comprehensive (loss) income attributable to AeroVironment, Inc. | $ (11,045) | $ 23,346 | $ 41,400 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Consolidated Statements of Comprehensive (Loss) Income | |||
Unrealized (loss) gain on available-for-sale investments, deferred tax benefit | $ 8 | $ 1 | $ 14 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total AeroVironment, Inc. Equity Adoption of ASU 2018-09 | Total AeroVironment, Inc. Equity | Common Stock | Additional Paid-In Capital | Retained Earnings Adoption of ASU 2018-09 | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interest | Adoption of ASU 2018-09 | Total |
Balance at Apr. 30, 2019 | $ 665 | $ 462,571 | $ 2 | $ 176,216 | $ 665 | $ 286,351 | $ 2 | $ 4 | $ 665 | |
Balance, Beginning at Apr. 30, 2019 | $ 462,575 | |||||||||
Balance (in shares) at Apr. 30, 2019 | 23,946,293 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 41,074 | 41,074 | 41,074 | |||||||
Net loss (income) attributable to noncontrolling interest | (4) | 4 | ||||||||
Net Income (loss) including non-controlling interest | 41,070 | |||||||||
Unrealized (loss) gain 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) | |||||||||
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 | |||||
Balance, Ending at Apr. 30, 2020 | 509,901 | |||||||||
Balance (in shares) at Apr. 30, 2020 | 24,063,639 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 23,331 | 23,331 | 23,331 | |||||||
Net loss (income) attributable to noncontrolling interest | 14 | (14) | ||||||||
Net Income (loss) including non-controlling interest | 23,345 | |||||||||
Unrealized (loss) gain 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) | |||||||||
Business acquisition | 72,384 | 72,384 | 72,384 | |||||||
Business acquisition (in shares) | 573,794 | |||||||||
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) | |||||||||
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, Ending at Apr. 30, 2021 | 612,107 | |||||||||
Balance (in shares) at Apr. 30, 2021 | 24,777,295 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | (4,188) | (4,188) | (4,188) | |||||||
Net loss (income) attributable to noncontrolling interest | 3 | (3) | ||||||||
Net Income (loss) including non-controlling interest | (4,185) | |||||||||
Unrealized (loss) gain on investments | (43) | (43) | (43) | |||||||
Foreign currency translation | (6,814) | (6,814) | (6,814) | |||||||
Stock options exercised | 2,776 | 2,776 | 2,776 | |||||||
Stock options exercised (in shares) | 114,362 | |||||||||
Restricted stock awards (in shares) | 104,402 | |||||||||
Restricted stock awards forfeited (in shares) | (32,120) | |||||||||
Tax withholding payment related to net share settlement of equity awards | (1,245) | (1,245) | (1,245) | |||||||
Tax withholding payment related to net share settlement of equity awards (in shares) | (12,652) | |||||||||
Change in non-controlling interest | 224 | 224 | ||||||||
Stock-based compensation | 5,390 | 5,390 | 5,390 | |||||||
Balance at Apr. 30, 2022 | $ 607,969 | $ 2 | $ 267,248 | $ 347,233 | $ (6,514) | $ 241 | 607,969 | |||
Balance, Ending at Apr. 30, 2022 | $ 608,210 | |||||||||
Balance (in shares) at Apr. 30, 2022 | 24,951,287 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Operating activities | |||
Net (loss) income | $ (4,185,000) | $ 23,345,000 | $ 41,070,000 |
Loss on sale of business, net of tax | 265,000 | ||
Net (loss) income from continuing operations | (4,185,000) | 23,345,000 | 41,335,000 |
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | |||
Depreciation and amortization | 60,825,000 | 19,262,000 | 9,888,000 |
(Income) loss from equity method investments, net | (5,889,000) | 10,481,000 | 5,487,000 |
Amortization of debt issuance costs | 789,000 | 145,000 | |
Realized gain from sale of available-for-sale investments | (11,000) | (180,000) | |
Provision for doubtful accounts | (6,000) | (114,000) | 388,000 |
Other non-cash expense (income) | 649,000 | (449,000) | (703,000) |
Non-cash lease expense | 6,814,000 | 5,150,000 | 4,574,000 |
Loss on foreign currency transactions | 233,000 | 1,000 | 1,000 |
Deferred income taxes | (7,282,000) | (1,694,000) | 3,419,000 |
Stock-based compensation | 5,390,000 | 6,932,000 | 6,227,000 |
Loss (gain) on disposal of property and equipment | 8,277,000 | 123,000 | (71,000) |
Amortization of debt securities | 242,000 | 309,000 | (1,423,000) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 3,084,000 | 17,177,000 | (42,869,000) |
Unbilled receivables and retentions | (31,883,000) | 8,381,000 | (22,790,000) |
Inventories | (27,160,000) | (5,179,000) | 8,855,000 |
Income taxes receivable | (442,000) | 821,000 | |
Prepaid expenses and other assets | (4,534,000) | (6,104,000) | 831,000 |
Accounts payable | (7,044,000) | 2,565,000 | 3,127,000 |
Other liabilities | (7,496,000) | 6,212,000 | 8,180,000 |
Net cash (used in) provided by operating activities | (9,618,000) | 86,532,000 | 25,097,000 |
Investing activities | |||
Acquisition of property and equipment | (22,289,000) | (11,263,000) | (11,220,000) |
Equity method investments | (6,884,000) | (2,675,000) | (14,498,000) |
Business acquisitions, net of cash acquired | (46,150,000) | (385,614,000) | (18,641,000) |
Proceeds from sale of ownership in equity method investment | 6,497,000 | ||
Proceeds from loan repayment | 4,345,000 | ||
Proceeds from sale of property and equipment | 81,000 | ||
Redemptions of held-to-maturity investments | 185,917,000 | ||
Purchases of held-to-maturity investments | (176,757,000) | ||
Redemptions of available-for-sale investments | 35,851,000 | 146,425,000 | 200,892,000 |
Purchases of available-for-sale investments | (23,882,000) | (125,644,000) | (106,607,000) |
Other | 224,000 | ||
Net cash (used in) provided by investing activities | (52,288,000) | (378,771,000) | 59,167,000 |
Financing activities | |||
Principal payments of term loan | (10,000,000) | ||
Payment of contingent consideration | (868,000) | ||
Tax withholding payment related to net settlement of equity awards | (1,245,000) | (1,992,000) | (1,062,000) |
Holdback and retention payments for business acquisition | (7,814,000) | (1,492,000) | |
Exercise of stock options | 2,776,000 | 1,522,000 | 100,000 |
Payment of debt issuance costs | (293,000) | (3,878,000) | |
Proceeds from long-term debt | 200,000,000 | ||
Other | (31,000) | ||
Net cash (used in) provided by financing activities | (16,607,000) | 194,160,000 | (1,830,000) |
Effects of currency translation on cash and cash equivalents | (1,319,000) | ||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (79,832,000) | (98,079,000) | 82,434,000 |
Cash, cash equivalents and restricted cash at beginning of period | 157,063,000 | 255,142,000 | 172,708,000 |
Cash, cash equivalents and restricted cash at end of period | 77,231,000 | 157,063,000 | 255,142,000 |
Cash paid, net during the period for: | |||
Income taxes | 1,879,000 | 2,405,000 | 532,000 |
Interest | 5,025,000 | ||
Non-cash activities | |||
Unrealized (loss) gain on investments, net of deferred tax expense of $8, $1 and $14 for the fiscal years ended 2021, 2020 and 2019, respectively | (43,000) | (60,000) | 50,000 |
Issuance of common stock for business acquisition | 72,384,000 | ||
Change in foreign currency translation adjustments | (6,814,000) | 75,000 | 276,000 |
Issuances of inventory to property and equipment, ISR in-service assets | 17,481,000 | 769,000 | |
Acquisitions of property and equipment included in accounts payable | $ 1,117,000 | $ 756,000 | $ 1,425,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Consolidated Statements of Cash Flows | |||
Unrealized (loss) gain on available-for-sale investments, deferred tax benefit | $ 8 | $ 1 | $ 14 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2022 | |
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”), unmanned ground vehicles (“UGV”) 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 Telerob Gesellschaft für Fernhantierungstechnik mbH (“Telerob”), as well as the Company’s Turkish joint venture, Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”) (collectively referred to herein as the “Company”). 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 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. On May 3, 2021, the Company closed its acquisition of Telerob pursuant to its previously announced Share Purchase Agreement (the “Telerob Purchase Agreement”) with Unmanned Systems Investments GmbH, a German limited liability company incorporated under the laws of Germany (the “Telerob Seller”), and each of the unit holders of the Seller (collectively, the “Telerob Shareholders”), to purchase 100% of the issued and outstanding shares of Telerob Seller’s wholly-owned subsidiary Telerob GmbH (the “Telerob Acquisition”). The assets, liabilities and operating results of Telerob GmbH 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”). In March 2022, the Company sold its 7% share of HAPSMobile to Softbank. Following the sale, Softbank owns 100% of HAPSMobile. Prior to the sale, as the Company had 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. In March 2022, the Company entered into a second related limited partnership fund also 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”). Accordingly, the Company identifies four reportable segments. 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. 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 maintained escrow accounts to address final purchase price adjustments post-Arcturus Closing and to address Arcturus UAV’s and/or the Sellers’ indemnification obligations. The restricted funds in the escrow account were recorded in other assets on the consolidated balance sheet. During the fiscal year ended April 30, 2022, the restricted cash was released, and the Company had no restricted cash as of April 30, 2022. As of April 30, 2021 restricted cash was $8,322,000. 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 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, 66%, 69% and 61% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2022, 2021 and 2020, respectively. These agencies accounted for 65% and 64% of the accounts receivable balances at April 30, 2022 and 2021, respectively. One such agency, the U.S. Army, accounted for 21%, 34% and 32% of the Company’s consolidated revenue for the years ended April 30, 2022, 2021 and 2020, 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, 2022 and 2021, the retention balances were $736,000 and $700,000, 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 with the exception of in-service ISR assets which is included in cost of sales 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. 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, backlog, 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 - 12 years Backlog 1 year 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, 2022, 2021 or 2020. Goodwill Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill is tested at the reporting unit level 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. Goodwill is assigned to the reporting units based on specific identification. 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. The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. For the impairment test, the Company first assesses qualitative factors, macroeconomic conditions, industry and market considerations, triggering events, cost factors, and overall financial performance, to determine whether it is necessary to perform a quantitative goodwill impairment test. Alternatively, the Company may bypass the qualitative assessment for some or all of its reporting units and apply the quantitative impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). For the quantitative impairment test the Company estimates the fair value by weighting the results from the income approach and the market approach. These valuation approaches consider a number of factors that include, but are not limited to, prospective financial information, growth rates, terminal value, discount rates, and comparable multiples from publicly traded companies in the Company’s industry and require the Company to make certain assumptions and estimates regarding industry economic factors and future profitability of its business. When performing the income approach for each reporting unit, the Company incorporates the use of projected financial information and a discount rate that are developed using market participant based assumptions. The cash-flow projections are based on seven-year financial forecasts developed by management that include revenue projections, capital spending trends, and investment in working capital to support anticipated revenue growth, which are updated at least annually and reviewed by management. The selected discount rate considers the risk and nature of the respective reporting unit’s cash flows and the rates of return market participants would require to invest their capital in its reporting units. When performing the market approach for each reporting unit, the Company utilizes the guideline public company method and the guideline transaction method. The guideline public company method incorporates revenue and earnings multiples from publicly traded companies with operations and other characteristics similar to each reporting unit. The selected multiples consider each reporting unit’s relative growth, profitability, size, and risk relative to the selected publicly traded companies. The guideline transaction method incorporates implied multiples based on transactions from publicly traded companies with similar characteristics to each reporting unit. No impairment was recorded for the fiscal years ended April 30, 2022, 2021 or 2020. The MUAS reporting unit is considered at higher risk of failing future quantitative impairment tests as the estimated fair value exceeded the carrying value by 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, 2022 and 2021, the Company accrued sales commissions in other current liabilities of $3,219,000 and $2,716,000, 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, 2022 and 2021, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $1,653,000 and $1,181,000, 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 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 57%, 43% and 42% of revenue during its fiscal years ended April 30, 2022, 2021 and 2020, respectively, or at a point in time, 43%, 57% and 58% during its fiscal year ended April 30, 2022, 2021 and 2020, respectively. 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, customization of UGV transport vehicles 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 UAS, MUAS and UGV product sales revenue is composed of revenue recognized on contracts for the delivery of small UAS, MUAS and UGV 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, 2022, the Company had approximately $210,780,000 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 2023 2024 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 p |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Apr. 30, 2022 | |
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 EES Business to Webasto pursuant to a 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. During the year ended April 30, 2020, the Company and Webasto engaged an independent accounting firm to resolve a working capital dispute. 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 was 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, 2022. 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. 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. 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 and 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. On June 2, 2021, the Company filed an answer to Webasto’s second amended complaint filed in May 2021. In order to avoid the future cost, expense, and distraction of continued litigation, the Company engaged in settlement negotiations with Webasto in May 2021. While the negotiations did not result in a settlement of any of the Company’s or Webasto’s claims at such time, as a result of the settlement negotiations, the Company established a litigation reserve, which reflected 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; 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) income on the consolidated statements of (loss) income and in other current liabilities on the consolidated balance sheet. On December 2, 2021, the Company agreed in principle, subject to formal documentation with Webasto, to settle all existing claims related to the sale of its former EES business for $20,000,000 and Webasto keeping the Holdback. As a result of the agreement in principle to settle the litigation, the Company recorded additional litigation reserve expenses in the amount of $10,000,000 during the three months ended October 30, 2021 in other (expense) income on the consolidated statements of operations and in other current liabilities on the consolidated balance sheet. The Company executed a written settlement agreement with Webasto effective December 16, 2021 to officially and fully settle all claims in the lawsuit. Under the terms of the written settlement agreement, the Company’s payment of the settlement amount of $20,000,000 will occur over a 24 month period from the effective date of the settlement agreement and Webasto will retain the Holdback. As of April 30, 2022, $5,000,000 of the settlement has been paid. 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 $0, $38,000 and $551,000 and has been recorded in other income, net in the consolidated statements of (loss) income for the fiscal years ended April 30, 2022, 2021 and 2020, 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, 2022 2021 2020 Net sales $ — $ — $ — Cost of sales — — — Gross margin — — — Selling, general and administrative — — — Research and development — — — Other income, net — — — Loss from discontinued operations before income taxes — — — Benefit for income taxes — - - Net loss from discontinued operations $ — $ — $ — Loss on sale of business, net of tax benefit of $76 for the year ended April 30, 2020 — — (265) Net loss from discontinued operations $ — $ — $ (265) |
Investments
Investments | 12 Months Ended |
Apr. 30, 2022 | |
Investments | |
Investments | 3. Investments Investments consist of the following: April 30, 2022 2021 Short-term investments: Available-for-sale securities: Municipal securities 19,725 22,245 U.S. government securities 4,991 4,009 Corporate bonds — 5,717 Total short-term investments $ 24,716 $ 31,971 Long-term investments: Available-for-sale securities: Municipal securities — 988 U.S. government securities — 4,000 Total long-term available-for-sale investments — 4,988 Equity method investments Investment in limited partnership fund 15,433 7,168 Total equity method investments 15,433 7,168 Total long-term investments $ 15,433 $ 12,156 Available-For-Sale Securities As of April 30, 2022 and 2021, 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 (expense) income. Realized gains on sales of these investments on the basis of specific identification is recorded in interest (expense) 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, 2022 April 30, 2021 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Municipal securities $ 19,756 $ — $ (31) $ 19,725 $ 23,227 $ 8 $ (2) $ 23,233 U.S. government securities 4,995 — (4) 4,991 8,008 1 — 8,009 Corporate bonds — — — — 5,718 — (1) 5,717 Total available-for-sale investments $ 24,751 $ — $ (35) $ 24,716 $ 36,953 $ 9 $ (3) $ 36,959 The amortized cost and fair value of the Company’s available-for-sale securities by contractual maturity at April 30, 2022, are as follows: Cost Fair Value Due within one year $ 24,751 $ 24,716 Due after one year through five years — — Total $ 24,751 $ 24,716 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022, 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 $ — $ 24,716 $ — $ 24,716 Contingently returnable consideration — — 143 143 Total $ — $ 24,716 $ 143 $ 24,859 The Company’s financial liabilities measured at fair value on a recurring basis at April 30, 2022, 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 Contingent consideration $ — $ — $ 1,084 $ 1,084 Total $ — $ — $ 1,084 $ 1,084 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 Contingently returnable consideration — — 479 479 Total $ — $ 36,959 $ 479 $ 37,438 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 Fair Value Measurements Using Measurements Using Significant Significant Unobservable Inputs Unobservable Inputs Assets Liabilities Description (Level 3) (Level 3) Balance at May 1, 2021 $ 479 $ — Business acquisition — 889 Transfers to Level 3 — — Total losses (realized or unrealized) Included in selling, general and administrative 336 195 Settlements — — Balance at April 30, 2022 $ 143 $ 1,084 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, 2022 $ — $ — The fair value measurement tables above have been corrected to present the fair value of the contingently returnable consideration associated with the acquisition of ISG of $479,000 as of April 30, 2021 and subsequent changes in fair value, which is recorded in other assets on the consolidated balance sheet. The tables previously included the fair value of the contingent consideration, rather than the returnable contingent consideration. The returnable contingent consideration represents the difference between the $6,000,000 cash consideration paid to the sellers in escrow and the fair value of the contingent consideration of $5,857,000 as of April 30, 2022. 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. During the fiscal year ended April 30, 2022, the target for the first and second years were achieved, and the related consideration of $2,000,000 for the first year was released from an escrow account that is not controlled by the Company and, therefore, not recorded on the consolidated balance sheet. The related consideration of $2,000,000 for the second year is in an escrow account not controlled by the Company and is expected to be released during the three months ended July 30, 2022. The fair value of the contingently returnable consideration is equal to the difference between the maximum value of the contingent consideration and the fair value of the contingent consideration and is recorded in other assets on the consolidated balance sheet. Pursuant to the Telerob Purchase Agreement, the Telerob Sellers may receive up to a maximum of €6,000,000 (approximately $7,272,000) in additional cash consideration if specific revenue and contract award targets for Telerob are achieved during the 36 month period after closing. The contingent consideration was valued using a Black-Scholes option-pricing model. The analysis considered, among other items, contractual terms of the Telerob Purchase Agreement, the Company’s discount rate, the timing of expected future cash flows and the probability that the revenue and contract award targets required for payment of the contingent consideration will be achieved. The first year earnout of €2,000,000 was not achieved. The fair value of the contingent consideration is recorded in other current liabilities on the consolidated balance sheet. See Note 21—Business Acquisitions. |
Inventories, net
Inventories, net | 12 Months Ended |
Apr. 30, 2022 | |
Inventories, net | |
Inventories, net | 5. Inventories, net Inventories consist of the following (in thousands): April 30, 2022 2021 (In thousands) Raw materials $ 42,310 $ 23,997 Work in process 28,034 13,825 Finished goods 32,619 44,113 Inventories, gross 102,963 81,935 Reserve for inventory excess and obsolescence (12,334) (10,289) Inventories, net $ 90,629 $ 71,646 For the fiscal years ended April 30, 2022, 2021 and 2020, the Company recorded inventory reserve charges of $2,271,000, $1,178,000 and $5,377,000, 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, 2022 | |
Intangibles, net | |
Intangibles, net | 6. Intangibles, net The components of intangibles are as follows (in thousands): April 30, April 30, 2022 2021 Technology $ 56,913 $ 46,850 Licenses 1,008 1,008 Customer relationships 72,448 68,073 Backlog 2,100 — In-process research and development 550 550 Non-compete agreements 320 320 Trademarks and tradenames 68 68 Other 144 3 Intangibles, gross 133,551 116,872 Less accumulated amortization (36,327) (10,604) Intangibles, net $ 97,224 $ 106,268 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, 2022 and 2021 was four years and five years, respectively. Amortization expense for the years ended April 30, 2022, 2021 and 2020 was $26,558,000, $6,469,000 and $2,822,000, respectively. Technology, backlog and customer relationship intangible assets were recognized in conjunction with the Company’s acquisition of Telerob on May 3, 2021. 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, 2023 $ 27,760 2024 26,870 2025 18,156 2026 13,114 2027 2,485 $ 88,385 |
Goodwill
Goodwill | 12 Months Ended |
Apr. 30, 2022 | |
Goodwill. | |
Goodwill | 7. Goodwill The following table presents the changes in the Company’s goodwill balance (in thousands): Small UAS TMS MUAS HAPS All other Total Balance at April 30, 2021 $ 6,340 $ — $ 288,611 $ — $ 19,254 $ 314,205 Additions to goodwill — — 1,546 — 18,596 20,142 Balance at April 30, 2022 $ 6,340 $ — $ 290,157 $ — $ 37,850 $ 334,347 Small UAS TMS MUAS HAPS All other Total Balance at April 30, 2020 $ 6,340 $ — $ — $ — $ — $ 6,340 Additions to goodwill — — 288,611 — 19,254 307,865 Balance at April 30, 2021 $ 6,340 $ — $ 288,611 $ — $ 19,254 $ 314,205 The addition during the fiscal year ended April 30, 2022 to the MUAS segment relates to measurement period adjustments for pre-acquisition tax returns. The addition to All other goodwill is attributable to the Telerob acquisition, which was recorded in Euros and translated to dollars at each reporting date. The addition during the fiscal year ended April 30, 2021 to the MUAS segment is attributable to the Arcturus Acquisition, and the addition to All other is attributable to the ISG acquisition. The goodwill balance at April 30, 2020 is attributable to the acquisition of Pulse. Refer to Note 21—Business Acquisitions for further details. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Apr. 30, 2022 | |
Property and Equipment, net | |
Property and Equipment, net | 8. Property and Equipment, net Property and equipment, net consist of the following: April 30, 2022 2021 (In thousands) In-service ISR assets $ 48,496 $ 36,047 Leasehold improvements 20,842 18,703 Machinery and equipment 64,759 53,943 Furniture and fixtures 4,239 3,698 Computer equipment and software 41,476 36,618 Construction in process 4,618 2,689 Property and equipment, gross 184,430 151,698 Less accumulated depreciation and amortization (122,134) (92,802) Property and equipment, net $ 62,296 $ 58,896 Depreciation expense for the years ended April 30, 2022, 2021 and 2020 was $30,493,000, $12,793,000 and $7,066,000, respectively. During the fiscal year ended April 30, 2022, the Company recorded losses on the disposal of in-service ISR assets which included the write-off of $1,378,000 of non-cash purchase accounting fair value adjustments. |
Investments in Companies Accoun
Investments in Companies Accounted for Using the Equity Method | 12 Months Ended |
Apr. 30, 2022 | |
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 2017, the Company and SoftBank formed a joint venture, HAPSMobile, which is a Japanese corporation. Concurrent with the formation of HAPSMobile, the Company executed a Design and Development Agreement (the “DDA”) with HAPSMobile. 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%. In March 2022, the Company sold it’s 7% equity interest in HAPSMobile to SoftBank, for 808,008,000 yen ($6,497,000) and a gain was recorded in sale of ownership in HAPSMobile Inc. joint venture. Following the sale, SoftBank owns 100% of HAPSMobile. As of April 30, 2022, the Company had no ownership stake in HAPSMobile. 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 (“MDDA”) with each other to continue the design and development of the Solar High Altitude Pseudo-Satellite (“Solar HAPS”) aircraft developed under the DDA. On May 29, 2021, the Company and SoftBank entered into a 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 loans which 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. The Company committed to lend 500,000,000 yen. On June 7, 2021 the Company funded 130,000,000 yen ($1,195,000) of the loan agreement. On August 13, 2021, the Company made the second payment of the loan agreement in the amount of 180,000,000 yen ($1,638,000). On October 29, 2021, the Company made the final payment under the loan agreement in the amount of 190,000,000 yen ($1,674,000). On March 1, 2022, HAPSMobile repaid the Company the loan in full plus accrued interest in the amount of 503,832,000 yen ($4,345,000). The repayment resulted in equity method income during the fiscal year ended April 30, 2022 up to the extent of the previously recognized equity method losses associate with the loan. Prior to the sale of the equity interest, the Company had 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, and therefore, the Company’s investment was accounted for as an equity method investment. At April 30, 2022, 2021 and 2020, the Company recorded its ownership percentage of the net loss of HAPSMobile, or $0, $10,530,000 and $4,982,000, 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, 2022 and 2021, the carrying value of the investment in HAPSMobile of $0 was recorded in other assets, long-term. Investment in Limited Partnership Fund In July 2019, the Company made its initial capital contributions totaling $4,948,000 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 $2,377,000 and $2,675,000 during the fiscal years ended April 30, 2022 and 2021, respectively. Under the terms of the limited partnership agreement, there are no further contribution commitments to the fund as of April 30, 2022. 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, 2022, 2021 and 2020, the Company recorded its ownership percentage of the net gain (loss) of the limited partnership, or $5,889,000 $49,000 and $(394,000), respectively, in equity method investment income (loss), net of deferred taxes of $1,300,000, $11 and $111,000, respectively, in the consolidated statements of income. At April 30, 2022 and 2021, the carrying value of the investment in the limited partnership of $15,433,000 and $7,168,000, respectively, was recorded in available-for-sale long-term investments. In March 2022, the Company entered into a limited partnership agreement with a second limited partnership fund also focusing on highly relevant technologies and start-up companies serving defense and industrial markets. Under the terms of the limited partnership agreement, the Company is committed to contributions totaling $20,000,000 over an expected five year period. In May 2022, the Company made its initial capital contribution to the second fund of $2,774,000. 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. Summarized financial information of the equity method investments, including HAPSMobile for the period of fiscal year 2022 prior to the sale of equity interest, are as follows: April 30, 2022 2021 (In thousands) Current assets $ 3,243 $ 9,106 Noncurrent assets 140,178 65,717 Current liabilities $ 683 $ 76,492 Year Ended April 30, 2022 2021 2020 (In thousands) Revenues $ 187 $ 159 $ 25 Gross loss (13,113) (1,241) (1,331) Realized and unrealized losses on investments 63,314 (131,971) (7,028) Net loss $ 40,349 $ (190,454) $ (85,818) |
Warranty Reserves
Warranty Reserves | 12 Months Ended |
Apr. 30, 2022 | |
Warranty Reserves | |
Warranty Reserves | 10. Warranty Reserves Warranty reserve activity is summarized as follows: April 30, 2022 2021 (In thousands) Beginning balance $ 2,341 $ 2,015 Balance acquired from acquisition 256 — Warranty expense 1,089 1,650 Warranty costs settled (1,496) (1,324) Ending balance $ 2,190 $ 2,341 |
Employee Savings Plan
Employee Savings Plan | 12 Months Ended |
Apr. 30, 2022 | |
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 $6,842,000, $5,764,000 and $4,744,000 in contributions to the plan for the years ended April 30, 2022, 2021 and 2020, respectively. |
Debt
Debt | 12 Months Ended |
Apr. 30, 2022 | |
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. 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, are 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. On February 4, 2022, the Company entered into a First Amendment to Credit Agreement and Waiver relating to its existing Credit Agreement (the “First Amendment to Credit Agreement”). The First Amendment to Credit Agreement waives any event of default that may have occurred as a result of the potential failure by the Company to comply with the consolidated leverage ratio covenant set forth in the Credit Agreement for the fiscal quarter ended January 29, 2022. In addition, the parties amended the maximum permitted Consolidated Leverage Ratio, such that such ratio may not exceed 4.00 to 1.00 for the Company’s fiscal quarters ended January 29, 2022 and April 30, 2022; 3.50 to 1.00 for any of the Company’s fiscal quarters ending during the period from May 1, 2022 to October 31, 2022; and 3.00 to 1.00 for any fiscal quarter ending thereafter. The Credit Agreement, as amended by the First Amendment to 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. The First Amendment to Credit Agreement also implemented certain secured overnight financing rate (SOFR) interest rate mechanics and interest rate reference benchmark replacement provisions in order to effectuate the transition from LIBOR as a reference interest rate. Following the First Amendment to Credit Agreement, the Company has a choice of interest rates between (a) Term SOFR (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 SOFR plus one percent (1.00%)) plus the Applicable Margin. The Applicable Margin is based upon the Consolidated Leverage Ratio (as defined in the First Amendment to Credit Agreement) and whether the Company elects SOFR (ranging from 1.50 - 2.50%) or Base Rate (ranging from 0.50 - 1.50%). The Company may choose interest periods of one, three or six months with respect to Term SOFR and all such rates will include a 0.10% SOFR adjustment. The Company also remains 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. As of April 30, 2022, the Company is in compliance with all amended covenants. Long-term debt and the current period interest rates were as follows: Year Ended Year Ended April 30, April 30, 2022 2021 (In thousands) (In thousands) Term loans $ 190,000 $ 200,000 Revolving credit facility — — Total debt 190,000 200,000 Less current portion 10,000 10,000 Total long-term debt, less current portion 180,000 190,000 Less unamortized debt issuance costs - term loans 2,160 2,488 Total long-term debt, net of unamortized debt issuance costs - term loans $ 177,840 $ 187,512 Unamortized debt issuance costs - revolving credit facility $ 1,076 $ 1,244 Current period interest rate 2.6% 2.2% Future long-term debt principal payments at April 30, 2022 were as follows: (In thousands) 2023 $ 10,000 2024 10,000 2025 10,000 2026 160,000 2027 — $ 190,000 |
Leases
Leases | 12 Months Ended |
Apr. 30, 2022 | |
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 eight 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 material finance leases, 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 SG&A expense were as follows (in thousands): Year Ended Year Ended April 30, April 30, 2022 2021 Operating lease cost $ 6,814 $ 5,150 Short term lease cost 840 602 Variable lease cost 653 23 Sublease income (176) (91) Total lease costs, net $ 8,131 $ 5,684 Supplemental lease information was as follows: Year Ended Year Ended April 30, April 30, 2022 2021 (In thousands) (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 6,925 $ 5,070 Right-of-use assets obtained in exchange for new lease liabilities $ 10,238 $ 18,729 Weighted average remaining lease term 62 months 71 months Weighted average discount rate 3.4% 3.6% Maturities of operating lease liabilities as of April 30, 2022 were as follows (in thousands): 2022 $ 6,819 2023 6,980 2024 6,070 2025 3,675 2026 2,540 Thereafter 5,484 Total lease payments 31,568 Less: imputed interest (2,834) Total present value of operating lease liabilities $ 28,734 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Apr. 30, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 14. Stock-Based Compensation For the years ended April 30, 2022, 2021 and 2020, the Company recorded stock-based compensation expense of approximately $5,390,000, $6,932,000 and $6,227,000, respectively. On September 24, 2021, the stockholders of the Company approved the 2021 Equity Incentive Plan (“2021 Plan”) effective September 24, 2021, for officers, directors, key employees and consultants. Under the 2021 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. The sum of any cash compensation, or other compensation, and the value of awards granted to a non-employee director as compensation for services as a non-employee director during any fiscal year may not exceed $500,000, which amount is increased to $700,000 in the fiscal year of a non-employee director’s initial year of service as a non-employee director. 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. 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 Restated 2006 Plan expired in July 2021. 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. 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. 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, 2022, 2021 and 2020, 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, 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 granted — — — — — — Options exercised (114,362) 24.28 — — — — Options canceled — — — — — — Outstanding at April 30, 2022 166,164 24.78 — — — — Options exercisable at April 30, 2022 166,164 $ 24.78 — $ — — $ — The total intrinsic value of all options exercised during the years ended April 30, 2022, 2021 and 2020 was approximately $4,785,000, $4,828,000, and $833,000, respectively. The intrinsic value of all options outstanding at April 30, 2022 and 2021 was $9,229,000 and $24,068,000, respectively. The intrinsic value of all exercisable options at April 30, 2022 and 2021 was $9,229,000 and $24,068,000, respectively. The Company had zero non-vested stock options as of April 30, 2022 and the year then ended. As of April 30, 2022, there was approximately $10,583,000 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 2.1 years. No options were granted during the fiscal years ended April 30, 2022, 2021 and 2020. The total fair value of shares vesting during the years ended April 30, 2022, 2021 and 2020 was $5,901,000, $5,312,000 and $4,900,000, respectively. Proceeds from all option exercises under all stock option plans for the years ended April 30, 2022, 2021 and 2020 were approximately $2,776,000, $1,522,000 and $100,000, respectively. The tax benefit realized from stock-based compensation was $0 during the years ended April 30, 2022, 2021 and 2020, respectively. The following tabulation summarizes certain information concerning outstanding and exercisable options at April 30, 2022: 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 2022 Years Price 2022 Price $ 18.07 - 18.32 30,000 0.98 $ 18.07 30,000 $ 18.07 18.33 - 22.64 20,000 0.98 18.57 20,000 18.57 22.65 - 26.99 50,000 3.15 26.70 50,000 26.70 27.00 - 29.27 50,000 1.56 27.27 50,000 27.27 29.28 - 31.27 16,164 2.26 31.27 16,164 31.27 $ 18.07 - 31.27 166,164 1.93 $ 24.78 166,164 $ 24.78 The remaining weighted average contractual life of exercisable options at April 30, 2022 was 1.93 years. Information related to the Company’s restricted stock awards at April 30, 2022 and for the year then ended is as follows: 2021 Plan Restated 2006 Plan Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested stock at April 30, 2021 — $ — 180,028 $ 83.02 Stock granted 47,026 75.66 57,376 66.10 Stock vested — — (94,389) 62.52 Stock canceled (1,950) 74.27 (30,170) 89.58 Unvested stock at April 30, 2022 45,076 $ 75.71 112,845 $ 89.80 Information related to the Company’s restricted stock units at April 30, 2022 and for the year then ended is as follows: Restated 2006 Plan Weighted Average Grant Date Shares Fair Value Unvested stock at April 30, 2021 — $ — Stock granted 4,395 97.96 Stock vested — — Stock canceled — — Unvested stock at April 30, 2022 4,395 $ 97.69 |
Long-Term Incentive Awards
Long-Term Incentive Awards | 12 Months Ended |
Apr. 30, 2022 | |
Long-Term Incentive Awards. | |
Long-Term Incentive Awards | 15. Long-Term Incentive Awards During the three months ended July 31, 2021, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2022 LTIP”). Awards under the Fiscal 2022 LTIP consist of: (i) time-based restricted stock awards and time-based restricted stock units, which vest in equal tranches in July 2022, July 2023 and July 2024, 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, 2024. 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, 2022, the Company recorded $752,000 of compensation expense related to the Fiscal 2022 LTIP. At April 30, 2022, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2022 LTIP is $10,473,000. 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, 2022, the Company recorded a reversal of $(634,000) compensation expense related to the Fiscal 2021 LTIP. 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, 2022, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2021 LTIP is $6,021,000. 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 year ended April 30, 2022, the Company recorded a reversal of $(701,000) compensation expense related to the Fiscal 2020 LTIP. 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, respectively. At April 30, 2022, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2020 LTIP is $3,335,000. 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. During the three months ended July 31, 2021, the Company issued a total of 12,101 fully-vested shares of common stock to settle the PRSUs in the Fiscal 2019 LTIP. No compensation expense was recorded during fiscal year ended April 30, 2022 for the Fiscal 2019 LTIP. During the fiscal years ended April 30, 2021 and 2020, the Company recorded $368,000, and $386,000 of compensation expense related to the Fiscal 2019 LTIP, respectively. 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. 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 years ended April 30, 2022 or 2021 for the Fiscal 2018 LTIP. During the fiscal years ended April 30, 2020, the Company recorded $193,000 of compensation expense related to the Fiscal 2018 LTIP At April 30, 2022 and 2021, the Company recorded cumulative stock-based compensation expense from these long-term incentive awards of $4,594,000 and $5,177,000, 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, 2022 | |
Income Taxes | |
Income Taxes | 16. Income Taxes The components of income before income taxes are as follows (in thousands): Year Ended April 30, 2022 2021 2020 Domestic $ (10,187) $ 34,274 $ 52,730 Foreign (8,956) 91 (60) Income from continuing operations before income taxes (19,143) 34,365 52,670 Equity method investment loss 5,889 (10,481) (5,487) Total income from continuing operations before income taxes $ (13,254) $ 23,884 $ 47,183 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, 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rate differential 4.9 — — State and local income taxes, net of federal benefit 40.8 (1.4) (2.1) R&D and other tax credits 23.0 (11.5) (6.8) Valuation allowance (37.4) 3.2 3.4 Return to provision adjustments (0.9) (0.3) 0.1 Permanent items (3.3) 3.6 0.7 Foreign derived intangible income — (7.6) (3.9) Excess benefit of equity awards 5.2 (5.7) (1.5) Other 0.9 0.3 0.2 Effective income tax rate 54.2 % 1.6 % 11.1 % The components of the provision for income taxes are as follows (in thousands): Year Ended April 30, 2022 2021 2020 Current: Federal $ (3,025) $ 3,094 $ 3,005 State 165 448 390 Foreign 279 — — (2,581) 3,542 3,395 Deferred: Federal (5,764) (3,247) 2,063 State 483 244 421 Foreign (2,507) — (31) (7,788) (3,003) 2,453 Total income tax expense $ (10,369) $ 539 $ 5,848 Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands): April 30, 2022 2021 Deferred income tax assets: Accrued expenses $ 3,399 $ 4,422 Stock based compensation 1,892 2,492 Allowances, reserves, and other 4,455 1,482 Outside basis difference 89 4,617 Unrealized loss on securities 3,229 110 Net operating loss and credit carry-forwards 41,931 33,155 Intangibles basis — — Lease liability 6,303 5,645 Total deferred income tax assets 61,298 51,923 Deferred income tax liabilities: Fixed asset basis (10,413) (10,286) Right-of-use asset (5,878) (5,119) Intangibles basis (15,503) (17,004) Total deferred income tax liabilities (31,794) (32,409) Valuation allowance (24,840) (17,453) Net deferred tax assets $ 4,664 $ 2,061 At April 30, 2022 and 2021 the Company recorded a valuation allowance of $24,840,000 and $17,453,000, respectively, primarily against state R&D credits as the Company is currently generating more tax credits than it will utilize in future years and against capital loss carryforward. The valuation allowance increased by $7,387,000 and $3,304,000 for April 30, 2022 and April 30, 2021, respectively. At April 30, 2022 the Company had state credit carryforwards of $31,379,000 that do not expire and federal tax credit carryforwards of $5,875,000 that begin to expire in 2041. At April 30, 2022, the Company had federal, state and foreign net operating loss carryforwards of approximately $88,863,000, $93,485,000 At April 30, 2022 and 2021, the Company had approximately $17,806,000 and $17,556,000, respectively, of unrecognized tax benefits of which $4,969,000 would impact the Company’s rate and $9,956,000 would result in an increase in valuation allowance. The Company estimates that $3,263,000 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, 2022 and 2021 (in thousands): April 30, 2022 2021 Balance as of May 1 $ 17,556 $ 14,347 Increases related to prior year tax positions 415 1,305 Decreases related to prior year tax positions (239) (116) Increases related to current year tax positions 1,398 2,074 Decreases related to lapsing of statute of limitations (1,324) (54) Balance as of April 30 $ 17,806 $ 17,556 The Company records interest and penalties on uncertain tax positions to income tax expense. As of April 30, 2022 and 2021, the Company had accrued approximately $302,000 and $23,000, respectively, of interest and penalties related to uncertain tax positions. The Company is currently under audit by various state jurisdictions. The 2018 to 2021 tax years remain open to examination by the IRS for federal income taxes. The tax years 2010 to 2012 and 2018 to 2021 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 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Apr. 30, 2022 | |
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, 2021 $ (10) $ 353 $ 343 Unrealized losses, net of $8 of taxes (43) — (43) Changes in foreign currency translation adjustments — (6,471) (6,471) Amounts reclassified to other (expense) income, net — (343) (343) Total accumulated other comprehensive income balance as of April 30, 2022 $ (53) $ (6,461) $ (6,514) |
Changes in Accounting Estimates
Changes in Accounting Estimates | 12 Months Ended |
Apr. 30, 2022 | |
Changes in Accounting Estimates. | |
Changes in Accounting Estimates | 18. Changes in Accounting Estimates During the year ended April 30, 2022, the Company revised its estimates of the achievement of the performance metrics of the Company’s long term incentive plans, which resulted in a cumulative adjustment to reduce previously recognized compensation expense of $1,602,000. During the years ended April 30, 2022, 2021 and 2020, 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, 2022, 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 $1,124,000. 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2022 | |
Related Party Transactions | |
Related Party Transactions | 19. Related Party Transactions Pursuant to a consulting agreement, the Company paid a board member approximately $36,000, $29,000 and $59,000 for fiscal years ended April 30, 2022, 2021 and 2020, respectively, for consulting services independent of his board service. Under the DDA and related efforts with HAPSMobile, the Company designed and built prototype solar powered high altitude aircraft and ground control stations for HAPSMobile and conducted low altitude and high altitude flight tests of the prototype aircraft on a best efforts basis, up to a maximum net value of $185,202,000. The Company will continue the development of Solar HAPS with SoftBank under the MDDA. Upon the execution of the MDDA, SoftBank issued the first order under the MDDA, which has a maximum value of approximately $51,200,000. The Company recorded revenue under both the MDDA and DDA and preliminary design agreements between the Company and SoftBank of $43,325,000, $42,426,000 and $60,864,000 for the fiscal years ended April 30, 2022, 2021 and 2020, respectively. At April 30, 2022 and 2021, the Company had unbilled related party receivables from HAPSMobile of $2,229,000 and $544,000 recorded in unbilled receivables and retentions on the consolidated balance sheet, respectively. As of April 30, 2022, the Company had no ownership stake in HAPSMobile and SoftBank and HAPSMobile are no longer considered related parties. Refer to Note 9 – Equity Method Investments for further details. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2022 | |
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. During the fiscal year ended April 30, 2022 the Company entered into a settlement agreement with Webasto to settle all claims. Refer to Note 2—Discontinued Operations for further details. At April 30, 2022 and 2021, the Company had outstanding letters of credit totaling $5,968,000 and $5,029,000, 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, 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, 2022 and 2021, the Company had no reserve for open incurred cost claim audits. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Apr. 30, 2022 | |
Business Acquisitions | |
Business Acquisitions | 21. Business Acquisitions Telerob Acquisition On May 3, 2021, the Company closed its acquisition of Telerob pursuant to the terms of the Telerob Purchase Agreement. Telerob develops, manufactures, sells, and services remote-controlled unmanned ground robots and transport vehicles for civil and defense applications. Pursuant to the Telerob Purchase Agreement at closing, the Company paid €37,455,000 (approximately $45,400,000) in cash to the Telerob Seller (subject to certain purchase price adjustments as set forth in the Telerob Purchase Agreement), less (a) €3,000,000 (approximately $3,636,000) to be held in escrow for breaches of the Telerob Seller’s fundamental warranties or any other of Telerob 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 Telerob Seller; (b) transaction-related fees and costs incurred by the Telerob 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 Telerob, which amount was paid in combination to the Telerob Seller and the lender under an agreement between Telerob GmbH and the lender providing for a reduced payoff amount. This indebtedness was offset by cash on hand at Telerob at closing. The escrow amount is to be released to the Telerob Seller, less any amounts paid or reserved, 30 months following the closing date. In addition to the consideration paid at closing, the Telerob Seller may receive €2,000,000 (approximately $2,424,000) in additional cash consideration if specific revenue targets for Telerob 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 Telerob are achieved in the 12 month period following the First Earnout Year. The Telerob 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 The Company accounted for the acquisition under the acquisition method of accounting for business combinations. During the fiscal year ended April 30, 2022, 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): May 3, 2021 Fair value of assets acquired: Accounts receivable $ 1,045 Unbilled receivable 829 Inventories, net 15,074 Prepaid and other current assets 314 Property and equipment, net 1,571 Operating lease assets 1,508 Other assets 494 Technology 11,500 Backlog 2,400 Customer relationships 5,000 Other intangible assets 102 Goodwill 20,800 Total assets acquired $ 60,637 Fair value of liabilities assumed: Accounts payable $ 1,136 Wages and related accruals 560 Customer advances 1,243 Current operating lease liabilities 361 Other current liabilities 3,310 Non-current operating lease liabilities 1,147 Other non-current liabilities 224 Deferred income taxes 5,617 Total liabilities assumed 13,598 Total identifiable net assets $ 47,039 Fair value of consideration: Cash consideration, net of cash acquired $ 46,150 Contingent consideration 889 Total $ 47,039 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 Telerob and expected future customers in the UGV market. For tax purposes the acquisition was treated as a stock purchase and the goodwill is not deductible. Supplemental Pro Forma Information (unaudited) Year Ended April 30, April 30, 2022 2021 Revenue $ 445,732 $ 428,353 Net (loss) income attributable to AeroVironment, Inc. $ 2,334 $ 17,345 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 August 1, 2020, reflecting the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from May 1, 2020 with the consequential tax effects and including the results of Telerob prior to acquisition. The Company incurred approximately $1,186,000 of acquisition-related expenses for the fiscal year ended April 30, 2022. These expenses are included in selling, general and administrative 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 acquisition been consolidated in the tables above as of May 1, 2020, nor are they indicative of results of operations that may occur in the future. 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”). During the fiscal year ended April 30, 2022, the Adjustment Escrow of $6,500,000, less $509,000 of post-closing adjustments, and Indemnification Escrow of $1,822,500 was released to the Arcturus Sellers. 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 Company accounted for the acquisition under the acquisition method of accounting for business combinations. During the fiscal year ended April 30, 2022, 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): 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 2,709 Property and equipment, net 38,739 Operating lease assets 11,429 Other assets 136 Technology 20,500 Customer relationships 62,700 Goodwill 290,006 Total assets acquired $ 458,146 Fair value of liabilities assumed: Accounts payable $ 3,085 Wages and related accruals 1,698 Customer advances 1,818 Other current liabilities 9,562 Operating lease liabilities 12,297 Other non-current liabilities 1,190 Deferred income taxes, net 5,869 Total liabilities assumed 35,519 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 acquisition 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. During the fiscal year ended April 30, 2022, the target for the first year was achieved and the related consideration of $2,000,000 was released from an escrow account that is not controlled by the Company and, therefore, not recorded on the consolidated balance sheet. 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 through February 2023 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 Company accounted for the acquisition under the acquisition method of accounting for business combinations. During the fiscal year ended April 30, 2022, 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): February 23, 2021 Fair value of assets acquired: Technology $ 11,400 Customer relationships 4,500 Other assets 217 Goodwill 19,254 Total identifiable net assets $ 35,371 Fair value of consideration transferred: Cash $ 29,700 Holdback 150 Contingent consideration 5,521 Total consideration $ 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. The Company accounted for the acquisition under the acquisition method of accounting for business combinations. 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 acquisition 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. |
Pension
Pension | 12 Months Ended |
Apr. 30, 2022 | |
Pension | |
Pension | 22. Pension Projected benefit obligation $ (3,322) Fair value of plan assets 3,395 Funded status of the plan $ 73 Pension benefit obligation balance as of May 3, 2021 $ (4,126) Interest cost (39) Actuarial gain 179 Benefits paid 176 Foreign currency exchange rate changes 488 Pension benefit obligation balance as of April 30, 2022 $ (3,322) Fair value of plan assets as of May 3, 2021 $ 3,951 Expected return on plan assets 108 Benefits paid (176) Foreign currency exchange rate changes (488) Fair value of plan assets as of April 30, 2022 $ 3,395 2023 $ 161 2024 164 2025 165 2026 165 2027 166 2028-2032 828 Total expected benefit payments $ 1,649 Year Ended April 30, 2022 (In thousands) Expected return on plan assets $ 108 Interest cost (39) Actuarial gain 179 Net periodic benefit cost $ 248 |
Segments
Segments | 12 Months Ended |
Apr. 30, 2022 | |
Segments | |
Segments | 23. Segments The Company’s reportable segments are as follows: Small Unmanned Aircraft Systems —The Small UAS segment focuses primarily on products designed to operate reliably at very low altitudes in a wide range of environmental conditions, providing a vantage point from which to collect and deliver valuable information as well as related support services including training, spare parts, product repair, product replacement, and the customer contracted operation. Tactical Missile Systems – The TMS segment focuses primarily on TMS products, which are tube-launched aircraft that deploy with the push of a button, fly at higher speeds than small UAS products, and perform either effects delivery or reconnaissance missions, and related support services including training, spare parts, product repair, and product replacement. The TMS segment also includes customer-funded research and development programs. 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. High Altitude Pseudo-Satellite Unmanned Aircraft Systems (“HAPS”)—The HAPS segment consists of the Company’s existing development of High Altitude Pseudo-Satellite systems in conjunction with SoftBank. All other—All other segments include MacCready Works and the recently acquired ISG and Telerob businesses. 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 following table (in thousands) sets forth segment revenue, gross margin, operating (loss) income and adjusted operating (loss) income from operations for the periods indicated. Adjusted operating (loss) income is defined as operating (loss) income before intangible amortization, amortization of purchase accounting adjustment related to increasing the carrying value of certain assets to fair value, and acquisition related expenses. Year Ended April 30, 2022 Small UAS TMS MUAS HAPS All other Total Revenue $ 178,201 $ 76,415 $ 93,156 $ 43,325 $ 54,635 $ 445,732 Gross margin 83,759 24,486 6,155 15,533 11,303 141,236 Income (loss) from continuing operations 28,980 (3,120) (27,715) 8,056 (16,088) (9,887) Acquisition-related expenses 502 297 1,994 123 1,938 4,854 Amortization of acquired intangible assets and other purchase accounting adjustments 2,828 - 22,170 - 11,709 36,707 Adjusted income (loss) from operations $ 32,310 $ (2,823) $ (3,551) $ 8,179 $ (2,441) $ 31,674 Year Ended April 30, 2021 Small UAS TMS MUAS HAPS All other Total Revenue $ 235,854 $ 87,268 $ 15,837 $ 42,426 $ 13,527 $ 394,912 Gross margin 119,062 26,675 2,965 13,038 2,818 164,558 Income (loss) from continuing operations 58,194 (3,131) (1,869) 268 (10,149) 43,313 Acquisition-related expenses 3,026 1,661 1,682 593 1,019 7,981 Amortization of acquired intangible assets and other purchase accounting adjustments 2,649 - 4,356 - 453 7,458 Adjusted income (loss) from operations $ 63,869 $ (1,470) $ 4,169 $ 861 $ (8,677) $ 58,752 Year Ended April 30, 2020 Small UAS TMS MUAS HAPS All other Total Revenue $ 225,888 $ 63,781 $ - $ 60,864 $ 16,763 $ 367,296 Gross margin 117,538 18,082 - 17,436 46 153,102 Income (loss) from continuing operations 64,680 (15,822) - 9,744 (11,467) 47,135 Acquisition-related expenses 537 336 - 134 112 1,119 Amortization of acquired intangible assets and other purchase accounting adjustments 2,467 - - - - 2,467 Adjusted income (loss) from operations $ 67,684 $ (15,486) $ - $ 9,878 $ (11,355) $ 50,721 April 30, 2022 Small UAS TMS MUAS HAPS All other Corporate Total Identifiable assets $ 110,286 $ 91,862 $ 388,058 $ 8,148 $ 86,617 $ 229,229 $ 914,200 April 30, 2021 Small UAS TMS MUAS HAPS All other Corporate Total Identifiable assets $ 115,156 $ 72,073 $ 400,901 $ 598 $ 37,677 $ 302,161 $ 928,566 |
Geographic Information
Geographic Information | 12 Months Ended |
Apr. 30, 2022 | |
Geographic Information | |
Geographic Information | 24. 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 41%, 39% and 45% of revenue for each of the fiscal years ended April 30, 2022, 2021 and 2020, respectively. With the acquisition of Arcturus and Telerob, the Company deploys in-service assets internationally, which as of April 30, 2022 was $48,496,000 and $1,601,000, respectively. As of April 30, 2021, the Company deployed in-service assets internationally for Arcturus of $36,047,000. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Apr. 30, 2022 | |
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: 2020 $ 1,041 $ — $ 219 $ — $ (70) $ 1,190 2021 $ 1,190 $ — $ 82 $ — $ (677) $ 595 2022 $ 595 $ 5 $ 52 $ — $ (60) $ 592 Warranty reserve for the year ended April 30: 2020 $ 1,704 $ — $ 2,069 $ — $ (1,758) $ 2,015 2021 $ 2,015 $ — $ 1,650 $ — $ (1,324) $ 2,341 2022 $ 2,341 $ 256 $ 1,089 $ — $ (1,496) $ 2,190 Reserve for inventory excess and obsolescence for the year ended April 30: 2020 $ 7,824 $ — $ 5,377 $ — $ (2,969) $ 10,232 2021 $ 10,232 $ 1,415 $ 1,178 $ — $ (2,536) $ 10,289 2022 $ 10,289 $ 1,561 $ 2,271 $ — $ (1,787) $ 12,334 Reserve for self-insured medical claims for the year ended April 30: 2020 $ 944 $ — $ 13,031 $ — $ (13,222) $ 753 2021 $ 753 $ — $ 11,329 $ — $ (10,789) $ 1,293 2022 $ 1,293 $ — $ 14,724 $ — $ (14,364) $ 1,653 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2022 | |
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 Telerob Gesellschaft für Fernhantierungstechnik mbH (“Telerob”), as well as the Company’s Turkish joint venture, Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”) (collectively referred to herein as the “Company”). 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 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. On May 3, 2021, the Company closed its acquisition of Telerob pursuant to its previously announced Share Purchase Agreement (the “Telerob Purchase Agreement”) with Unmanned Systems Investments GmbH, a German limited liability company incorporated under the laws of Germany (the “Telerob Seller”), and each of the unit holders of the Seller (collectively, the “Telerob Shareholders”), to purchase 100% of the issued and outstanding shares of Telerob Seller’s wholly-owned subsidiary Telerob GmbH (the “Telerob Acquisition”). The assets, liabilities and operating results of Telerob GmbH 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”). In March 2022, the Company sold its 7% share of HAPSMobile to Softbank. Following the sale, Softbank owns 100% of HAPSMobile. Prior to the sale, as the Company had 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. In March 2022, the Company entered into a second related limited partnership fund also 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”). Accordingly, the Company identifies four reportable segments. |
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. |
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 maintained escrow accounts to address final purchase price adjustments post-Arcturus Closing and to address Arcturus UAV’s and/or the Sellers’ indemnification obligations. The restricted funds in the escrow account were recorded in other assets on the consolidated balance sheet. During the fiscal year ended April 30, 2022, the restricted cash was released, and the Company had no restricted cash as of April 30, 2022. As of April 30, 2021 restricted cash was $8,322,000. |
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 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, 66%, 69% and 61% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2022, 2021 and 2020, respectively. These agencies accounted for 65% and 64% of the accounts receivable balances at April 30, 2022 and 2021, respectively. One such agency, the U.S. Army, accounted for 21%, 34% and 32% of the Company’s consolidated revenue for the years ended April 30, 2022, 2021 and 2020, 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, 2022 and 2021, the retention balances were $736,000 and $700,000, 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 with the exception of in-service ISR assets which is included in cost of sales 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. |
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, backlog, 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 - 12 years Backlog 1 year 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, 2022, 2021 or 2020. |
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 at the reporting unit level 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. Goodwill is assigned to the reporting units based on specific identification. 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. The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. For the impairment test, the Company first assesses qualitative factors, macroeconomic conditions, industry and market considerations, triggering events, cost factors, and overall financial performance, to determine whether it is necessary to perform a quantitative goodwill impairment test. Alternatively, the Company may bypass the qualitative assessment for some or all of its reporting units and apply the quantitative impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). For the quantitative impairment test the Company estimates the fair value by weighting the results from the income approach and the market approach. These valuation approaches consider a number of factors that include, but are not limited to, prospective financial information, growth rates, terminal value, discount rates, and comparable multiples from publicly traded companies in the Company’s industry and require the Company to make certain assumptions and estimates regarding industry economic factors and future profitability of its business. When performing the income approach for each reporting unit, the Company incorporates the use of projected financial information and a discount rate that are developed using market participant based assumptions. The cash-flow projections are based on seven-year financial forecasts developed by management that include revenue projections, capital spending trends, and investment in working capital to support anticipated revenue growth, which are updated at least annually and reviewed by management. The selected discount rate considers the risk and nature of the respective reporting unit’s cash flows and the rates of return market participants would require to invest their capital in its reporting units. When performing the market approach for each reporting unit, the Company utilizes the guideline public company method and the guideline transaction method. The guideline public company method incorporates revenue and earnings multiples from publicly traded companies with operations and other characteristics similar to each reporting unit. The selected multiples consider each reporting unit’s relative growth, profitability, size, and risk relative to the selected publicly traded companies. The guideline transaction method incorporates implied multiples based on transactions from publicly traded companies with similar characteristics to each reporting unit. No impairment was recorded for the fiscal years ended April 30, 2022, 2021 or 2020. The MUAS reporting unit is considered at higher risk of failing future quantitative impairment tests as the estimated fair value exceeded the carrying value by |
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, 2022 and 2021, the Company accrued sales commissions in other current liabilities of $3,219,000 and $2,716,000, 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, 2022 and 2021, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $1,653,000 and $1,181,000, 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 | Customer Advances 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 57%, 43% and 42% of revenue during its fiscal years ended April 30, 2022, 2021 and 2020, respectively, or at a point in time, 43%, 57% and 58% during its fiscal year ended April 30, 2022, 2021 and 2020, respectively. 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, customization of UGV transport vehicles 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 UAS, MUAS and UGV product sales revenue is composed of revenue recognized on contracts for the delivery of small UAS, MUAS and UGV 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, 2022, the Company had approximately $210,780,000 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 2023 2024 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, 2022, 2021 or 2020. During the year ended April 30, 2022, 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 $1,124,000. 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. Revenue by Category The following tables present the Company’s revenue disaggregated by segment, contract type, customer category and geographic location (in thousands): Year Ended April 30, Revenue by segment 2022 2021 2020 Small UAS $ 178,201 $ 235,854 $ 225,888 TMS 76,415 87,268 63,781 MUAS 93,156 15,837 — HAPS 43,325 42,426 60,864 Other 54,635 13,527 16,763 Total revenue $ 445,732 $ 394,912 $ 367,296 Year Ended April 30, Revenue by contract type 2022 2021 2020 FFP $ 346,092 $ 307,413 $ 269,917 CPFF 93,428 86,719 94,176 T&M 6,212 780 3,203 Total revenue $ 445,732 $ 394,912 $ 367,296 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 2022 2021 2020 U.S. government $ 294,941 $ 271,273 $ 225,341 Non-U.S. government 150,791 123,639 141,955 Total revenue $ 445,732 $ 394,912 $ 367,296 Year Ended April 30, Revenue by geographic location 2022 2021 2020 Domestic $ 262,258 $ 241,898 $ 201,046 International 183,474 153,014 166,250 Total revenue $ 445,732 $ 394,912 $ 367,296 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, 2022 or 2021 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, 2022, 2021, and 2020 that was included in contract liability balances at the beginning of each year were $3,144,000, $5,468,000 and $1,670,000, 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, 2022, 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 $84,247,000, $74,218,000 and $80,934,000 for the years ended April 30, 2022, 2021 and 2020, respectively. The related cost of sales for customer-funded research and development totaled approximately $59,054,000, $51,395,000 and $56,440,000 for the years ended April 30, 2022, 2021 and 2020, 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 |
Lease Accounting | Lease Accounting 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 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 $451,000, $675,000 and $934,000 for the years ended April 30, 2022, 2021 and 2020, 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, 2022, 2021 and 2020, foreign currency transaction losses that are included in other (expense) income, net in the accompanying statements of income were $242,000, $1,000, and $1,000, respectively. |
(Loss) Earnings Per Share | (Loss) Earnings Per Share Basic (loss) 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 (loss) earnings per share. The reconciliation of diluted to basic shares is as follows: Year Ended April 30, 2022 2021 2020 Continuing operations attributable to AeroVironment, Inc. $ (4,188,000) $ 23,331,000 $ 41,339,000 Discontinued operations, net of tax — — (265,000) Net (loss) income attributable to AeroVironment, Inc. $ (4,188,000) $ 23,331,000 $ 41,074,000 Denominator for basic earnings per share: Weighted average common shares 24,685,534 24,049,851 23,806,208 Dilutive effect of employee stock options, restricted stock and restricted stock units — 312,805 281,959 Denominator for diluted earnings per share 24,685,534 24,362,656 24,088,167 During the years ended April 30, 2022, 2021 and 2020, 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. Due to the net loss for the fiscal year ended April 30, 2022, no shares reserved for issuance upon exercise of stock options or shares of unvested restricted stock were included in the computation of diluted loss per share as 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 224,000, 3,000 and 3,000 for the years ended April 30, 2022, 2021 and 2020, respectively. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards Effective May 1, 2021, the Company adopted ASU 2019-12, Simplifying the Accounting for Income Taxes Recently Issued Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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 - 12 years Backlog 1 year 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 segment 2022 2021 2020 Small UAS $ 178,201 $ 235,854 $ 225,888 TMS 76,415 87,268 63,781 MUAS 93,156 15,837 — HAPS 43,325 42,426 60,864 Other 54,635 13,527 16,763 Total revenue $ 445,732 $ 394,912 $ 367,296 Year Ended April 30, Revenue by contract type 2022 2021 2020 FFP $ 346,092 $ 307,413 $ 269,917 CPFF 93,428 86,719 94,176 T&M 6,212 780 3,203 Total revenue $ 445,732 $ 394,912 $ 367,296 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 2022 2021 2020 U.S. government $ 294,941 $ 271,273 $ 225,341 Non-U.S. government 150,791 123,639 141,955 Total revenue $ 445,732 $ 394,912 $ 367,296 Year Ended April 30, Revenue by geographic location 2022 2021 2020 Domestic $ 262,258 $ 241,898 $ 201,046 International 183,474 153,014 166,250 Total revenue $ 445,732 $ 394,912 $ 367,296 |
Schedule of reconciliation of basic to diluted shares | Year Ended April 30, 2022 2021 2020 Continuing operations attributable to AeroVironment, Inc. $ (4,188,000) $ 23,331,000 $ 41,339,000 Discontinued operations, net of tax — — (265,000) Net (loss) income attributable to AeroVironment, Inc. $ (4,188,000) $ 23,331,000 $ 41,074,000 Denominator for basic earnings per share: Weighted average common shares 24,685,534 24,049,851 23,806,208 Dilutive effect of employee stock options, restricted stock and restricted stock units — 312,805 281,959 Denominator for diluted earnings per share 24,685,534 24,362,656 24,088,167 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Discontinued Operations. | |
Schedule of statements of operations data for the EES Business | Year Ended April 30, 2022 2021 2020 Net sales $ — $ — $ — Cost of sales — — — Gross margin — — — Selling, general and administrative — — — Research and development — — — Other income, net — — — Loss from discontinued operations before income taxes — — — Benefit for income taxes — - - Net loss from discontinued operations $ — $ — $ — Loss on sale of business, net of tax benefit of $76 for the year ended April 30, 2020 — — (265) Net loss from discontinued operations $ — $ — $ (265) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Investments | |
Schedule of investments | April 30, 2022 2021 Short-term investments: Available-for-sale securities: Municipal securities 19,725 22,245 U.S. government securities 4,991 4,009 Corporate bonds — 5,717 Total short-term investments $ 24,716 $ 31,971 Long-term investments: Available-for-sale securities: Municipal securities — 988 U.S. government securities — 4,000 Total long-term available-for-sale investments — 4,988 Equity method investments Investment in limited partnership fund 15,433 7,168 Total equity method investments 15,433 7,168 Total long-term investments $ 15,433 $ 12,156 |
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, 2022 April 30, 2021 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Municipal securities $ 19,756 $ — $ (31) $ 19,725 $ 23,227 $ 8 $ (2) $ 23,233 U.S. government securities 4,995 — (4) 4,991 8,008 1 — 8,009 Corporate bonds — — — — 5,718 — (1) 5,717 Total available-for-sale investments $ 24,751 $ — $ (35) $ 24,716 $ 36,953 $ 9 $ (3) $ 36,959 |
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, 2022, are as follows: Cost Fair Value Due within one year $ 24,751 $ 24,716 Due after one year through five years — — Total $ 24,751 $ 24,716 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022, 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 $ — $ 24,716 $ — $ 24,716 Contingently returnable consideration — — 143 143 Total $ — $ 24,716 $ 143 $ 24,859 The Company’s financial liabilities measured at fair value on a recurring basis at April 30, 2022, 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 Contingent consideration $ — $ — $ 1,084 $ 1,084 Total $ — $ — $ 1,084 $ 1,084 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 Contingently returnable consideration — — 479 479 Total $ — $ 36,959 $ 479 $ 37,438 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 Fair Value Measurements Using Measurements Using Significant Significant Unobservable Inputs Unobservable Inputs Assets Liabilities Description (Level 3) (Level 3) Balance at May 1, 2021 $ 479 $ — Business acquisition — 889 Transfers to Level 3 — — Total losses (realized or unrealized) Included in selling, general and administrative 336 195 Settlements — — Balance at April 30, 2022 $ 143 $ 1,084 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, 2022 $ — $ — |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Inventories, net | |
Schedule of inventories, net | Inventories consist of the following (in thousands): April 30, 2022 2021 (In thousands) Raw materials $ 42,310 $ 23,997 Work in process 28,034 13,825 Finished goods 32,619 44,113 Inventories, gross 102,963 81,935 Reserve for inventory excess and obsolescence (12,334) (10,289) Inventories, net $ 90,629 $ 71,646 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Intangibles, net | |
Schedule of components of intangibles | The components of intangibles are as follows (in thousands): April 30, April 30, 2022 2021 Technology $ 56,913 $ 46,850 Licenses 1,008 1,008 Customer relationships 72,448 68,073 Backlog 2,100 — In-process research and development 550 550 Non-compete agreements 320 320 Trademarks and tradenames 68 68 Other 144 3 Intangibles, gross 133,551 116,872 Less accumulated amortization (36,327) (10,604) Intangibles, net $ 97,224 $ 106,268 |
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, 2023 $ 27,760 2024 26,870 2025 18,156 2026 13,114 2027 2,485 $ 88,385 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Goodwill. | |
Schedule of the changes in goodwill balances | The following table presents the changes in the Company’s goodwill balance (in thousands): Small UAS TMS MUAS HAPS All other Total Balance at April 30, 2021 $ 6,340 $ — $ 288,611 $ — $ 19,254 $ 314,205 Additions to goodwill — — 1,546 — 18,596 20,142 Balance at April 30, 2022 $ 6,340 $ — $ 290,157 $ — $ 37,850 $ 334,347 Small UAS TMS MUAS HAPS All other Total Balance at April 30, 2020 $ 6,340 $ — $ — $ — $ — $ 6,340 Additions to goodwill — — 288,611 — 19,254 307,865 Balance at April 30, 2021 $ 6,340 $ — $ 288,611 $ — $ 19,254 $ 314,205 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Property and Equipment, net | |
Schedule of property and equipment | April 30, 2022 2021 (In thousands) In-service ISR assets $ 48,496 $ 36,047 Leasehold improvements 20,842 18,703 Machinery and equipment 64,759 53,943 Furniture and fixtures 4,239 3,698 Computer equipment and software 41,476 36,618 Construction in process 4,618 2,689 Property and equipment, gross 184,430 151,698 Less accumulated depreciation and amortization (122,134) (92,802) Property and equipment, net $ 62,296 $ 58,896 |
Investments in Companies Acco_2
Investments in Companies Accounted for Using the Equity Method (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Investments in Companies Accounted for Using the Equity Method | |
Summarized financial information of the equity method investments | April 30, 2022 2021 (In thousands) Current assets $ 3,243 $ 9,106 Noncurrent assets 140,178 65,717 Current liabilities $ 683 $ 76,492 Year Ended April 30, 2022 2021 2020 (In thousands) Revenues $ 187 $ 159 $ 25 Gross loss (13,113) (1,241) (1,331) Realized and unrealized losses on investments 63,314 (131,971) (7,028) Net loss $ 40,349 $ (190,454) $ (85,818) |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Warranty Reserves | |
Summary of warranty reserve activity | April 30, 2022 2021 (In thousands) Beginning balance $ 2,341 $ 2,015 Balance acquired from acquisition 256 — Warranty expense 1,089 1,650 Warranty costs settled (1,496) (1,324) Ending balance $ 2,190 $ 2,341 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Debt | |
Schedule of long-term debt and the current period interest rates | Year Ended Year Ended April 30, April 30, 2022 2021 (In thousands) (In thousands) Term loans $ 190,000 $ 200,000 Revolving credit facility — — Total debt 190,000 200,000 Less current portion 10,000 10,000 Total long-term debt, less current portion 180,000 190,000 Less unamortized debt issuance costs - term loans 2,160 2,488 Total long-term debt, net of unamortized debt issuance costs - term loans $ 177,840 $ 187,512 Unamortized debt issuance costs - revolving credit facility $ 1,076 $ 1,244 Current period interest rate 2.6% 2.2% |
Schedule of Future long-term debt principle payments | Future long-term debt principal payments at April 30, 2022 were as follows: (In thousands) 2023 $ 10,000 2024 10,000 2025 10,000 2026 160,000 2027 — $ 190,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Leases | |
Schedule of components of lease costs | Year Ended Year Ended April 30, April 30, 2022 2021 Operating lease cost $ 6,814 $ 5,150 Short term lease cost 840 602 Variable lease cost 653 23 Sublease income (176) (91) Total lease costs, net $ 8,131 $ 5,684 |
Schedule of supplemental lease information | Supplemental lease information was as follows: Year Ended Year Ended April 30, April 30, 2022 2021 (In thousands) (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 6,925 $ 5,070 Right-of-use assets obtained in exchange for new lease liabilities $ 10,238 $ 18,729 Weighted average remaining lease term 62 months 71 months Weighted average discount rate 3.4% 3.6% |
Schedule of maturities of operating lease liabilities | Maturities of operating lease liabilities as of April 30, 2022 were as follows (in thousands): 2022 $ 6,819 2023 6,980 2024 6,070 2025 3,675 2026 2,540 Thereafter 5,484 Total lease payments 31,568 Less: imputed interest (2,834) Total present value of operating lease liabilities $ 28,734 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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, 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 granted — — — — — — Options exercised (114,362) 24.28 — — — — Options canceled — — — — — — Outstanding at April 30, 2022 166,164 24.78 — — — — Options exercisable at April 30, 2022 166,164 $ 24.78 — $ — — $ — |
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 2022 Years Price 2022 Price $ 18.07 - 18.32 30,000 0.98 $ 18.07 30,000 $ 18.07 18.33 - 22.64 20,000 0.98 18.57 20,000 18.57 22.65 - 26.99 50,000 3.15 26.70 50,000 26.70 27.00 - 29.27 50,000 1.56 27.27 50,000 27.27 29.28 - 31.27 16,164 2.26 31.27 16,164 31.27 $ 18.07 - 31.27 166,164 1.93 $ 24.78 166,164 $ 24.78 |
Schedule of Company's restricted stock awards | Information related to the Company’s restricted stock awards at April 30, 2022 and for the year then ended is as follows: 2021 Plan Restated 2006 Plan Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Unvested stock at April 30, 2021 — $ — 180,028 $ 83.02 Stock granted 47,026 75.66 57,376 66.10 Stock vested — — (94,389) 62.52 Stock canceled (1,950) 74.27 (30,170) 89.58 Unvested stock at April 30, 2022 45,076 $ 75.71 112,845 $ 89.80 Information related to the Company’s restricted stock units at April 30, 2022 and for the year then ended is as follows: Restated 2006 Plan Weighted Average Grant Date Shares Fair Value Unvested stock at April 30, 2021 — $ — Stock granted 4,395 97.96 Stock vested — — Stock canceled — — Unvested stock at April 30, 2022 4,395 $ 97.69 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022 2021 2020 Domestic $ (10,187) $ 34,274 $ 52,730 Foreign (8,956) 91 (60) Income from continuing operations before income taxes (19,143) 34,365 52,670 Equity method investment loss 5,889 (10,481) (5,487) Total income from continuing operations before income taxes $ (13,254) $ 23,884 $ 47,183 |
Schedule of reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense | 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, 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rate differential 4.9 — — State and local income taxes, net of federal benefit 40.8 (1.4) (2.1) R&D and other tax credits 23.0 (11.5) (6.8) Valuation allowance (37.4) 3.2 3.4 Return to provision adjustments (0.9) (0.3) 0.1 Permanent items (3.3) 3.6 0.7 Foreign derived intangible income — (7.6) (3.9) Excess benefit of equity awards 5.2 (5.7) (1.5) Other 0.9 0.3 0.2 Effective income tax rate 54.2 % 1.6 % 11.1 % |
Schedule of components of the provision for income taxes | Year Ended April 30, 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rate differential 4.9 — — State and local income taxes, net of federal benefit 40.8 (1.4) (2.1) R&D and other tax credits 23.0 (11.5) (6.8) Valuation allowance (37.4) 3.2 3.4 Return to provision adjustments (0.9) (0.3) 0.1 Permanent items (3.3) 3.6 0.7 Foreign derived intangible income — (7.6) (3.9) Excess benefit of equity awards 5.2 (5.7) (1.5) Other 0.9 0.3 0.2 Effective income tax rate 54.2 % 1.6 % 11.1 % |
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, 2022 2021 Deferred income tax assets: Accrued expenses $ 3,399 $ 4,422 Stock based compensation 1,892 2,492 Allowances, reserves, and other 4,455 1,482 Outside basis difference 89 4,617 Unrealized loss on securities 3,229 110 Net operating loss and credit carry-forwards 41,931 33,155 Intangibles basis — — Lease liability 6,303 5,645 Total deferred income tax assets 61,298 51,923 Deferred income tax liabilities: Fixed asset basis (10,413) (10,286) Right-of-use asset (5,878) (5,119) Intangibles basis (15,503) (17,004) Total deferred income tax liabilities (31,794) (32,409) Valuation allowance (24,840) (17,453) Net deferred tax assets $ 4,664 $ 2,061 |
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, 2022 and 2021 (in thousands): April 30, 2022 2021 Balance as of May 1 $ 17,556 $ 14,347 Increases related to prior year tax positions 415 1,305 Decreases related to prior year tax positions (239) (116) Increases related to current year tax positions 1,398 2,074 Decreases related to lapsing of statute of limitations (1,324) (54) Balance as of April 30 $ 17,806 $ 17,556 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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, 2021 $ (10) $ 353 $ 343 Unrealized losses, net of $8 of taxes (43) — (43) Changes in foreign currency translation adjustments — (6,471) (6,471) Amounts reclassified to other (expense) income, net — (343) (343) Total accumulated other comprehensive income balance as of April 30, 2022 $ (53) $ (6,461) $ (6,514) |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Telerob. | |
Schedule of the fair value of the assets acquired and liabilities assumed at the acquisition date | The Company accounted for the acquisition under the acquisition method of accounting for business combinations. During the fiscal year ended April 30, 2022, 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): May 3, 2021 Fair value of assets acquired: Accounts receivable $ 1,045 Unbilled receivable 829 Inventories, net 15,074 Prepaid and other current assets 314 Property and equipment, net 1,571 Operating lease assets 1,508 Other assets 494 Technology 11,500 Backlog 2,400 Customer relationships 5,000 Other intangible assets 102 Goodwill 20,800 Total assets acquired $ 60,637 Fair value of liabilities assumed: Accounts payable $ 1,136 Wages and related accruals 560 Customer advances 1,243 Current operating lease liabilities 361 Other current liabilities 3,310 Non-current operating lease liabilities 1,147 Other non-current liabilities 224 Deferred income taxes 5,617 Total liabilities assumed 13,598 Total identifiable net assets $ 47,039 Fair value of consideration: Cash consideration, net of cash acquired $ 46,150 Contingent consideration 889 Total $ 47,039 |
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, 2020 (in thousands): Year Ended April 30, April 30, 2022 2021 Revenue $ 445,732 $ 428,353 Net (loss) income attributable to AeroVironment, Inc. $ 2,334 $ 17,345 |
Arcturus UAV Inc. | |
Schedule of the fair value of the assets acquired and liabilities assumed at the acquisition date | The Company accounted for the acquisition under the acquisition method of accounting for business combinations. During the fiscal year ended April 30, 2022, 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): 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 2,709 Property and equipment, net 38,739 Operating lease assets 11,429 Other assets 136 Technology 20,500 Customer relationships 62,700 Goodwill 290,006 Total assets acquired $ 458,146 Fair value of liabilities assumed: Accounts payable $ 3,085 Wages and related accruals 1,698 Customer advances 1,818 Other current liabilities 9,562 Operating lease liabilities 12,297 Other non-current liabilities 1,190 Deferred income taxes, net 5,869 Total liabilities assumed 35,519 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 Company accounted for the acquisition under the acquisition method of accounting for business combinations. During the fiscal year ended April 30, 2022, 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): February 23, 2021 Fair value of assets acquired: Technology $ 11,400 Customer relationships 4,500 Other assets 217 Goodwill 19,254 Total identifiable net assets $ 35,371 Fair value of consideration transferred: Cash $ 29,700 Holdback 150 Contingent consideration 5,521 Total consideration $ 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 | The Company accounted for the acquisition under the acquisition method of accounting for business combinations. 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 |
Pension (Tables)
Pension (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Pension | |
Schedule of projected benefit obligation and fair value of plan assets | Projected benefit obligation $ (3,322) Fair value of plan assets 3,395 Funded status of the plan $ 73 |
Schedule of change in projected benefit obligation | Pension benefit obligation balance as of May 3, 2021 $ (4,126) Interest cost (39) Actuarial gain 179 Benefits paid 176 Foreign currency exchange rate changes 488 Pension benefit obligation balance as of April 30, 2022 $ (3,322) |
Schedule of change in plan assets | Fair value of plan assets as of May 3, 2021 $ 3,951 Expected return on plan assets 108 Benefits paid (176) Foreign currency exchange rate changes (488) Fair value of plan assets as of April 30, 2022 $ 3,395 |
Schedule of expected benefits payments | 2023 $ 161 2024 164 2025 165 2026 165 2027 166 2028-2032 828 Total expected benefit payments $ 1,649 |
Schedule Net periodic benefit cost (in thousands) is recorded in interest (expense) income, net | Year Ended April 30, 2022 (In thousands) Expected return on plan assets $ 108 Interest cost (39) Actuarial gain 179 Net periodic benefit cost $ 248 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Segments | |
Schedule of segment results | Year Ended April 30, 2022 Small UAS TMS MUAS HAPS All other Total Revenue $ 178,201 $ 76,415 $ 93,156 $ 43,325 $ 54,635 $ 445,732 Gross margin 83,759 24,486 6,155 15,533 11,303 141,236 Income (loss) from continuing operations 28,980 (3,120) (27,715) 8,056 (16,088) (9,887) Acquisition-related expenses 502 297 1,994 123 1,938 4,854 Amortization of acquired intangible assets and other purchase accounting adjustments 2,828 - 22,170 - 11,709 36,707 Adjusted income (loss) from operations $ 32,310 $ (2,823) $ (3,551) $ 8,179 $ (2,441) $ 31,674 Year Ended April 30, 2021 Small UAS TMS MUAS HAPS All other Total Revenue $ 235,854 $ 87,268 $ 15,837 $ 42,426 $ 13,527 $ 394,912 Gross margin 119,062 26,675 2,965 13,038 2,818 164,558 Income (loss) from continuing operations 58,194 (3,131) (1,869) 268 (10,149) 43,313 Acquisition-related expenses 3,026 1,661 1,682 593 1,019 7,981 Amortization of acquired intangible assets and other purchase accounting adjustments 2,649 - 4,356 - 453 7,458 Adjusted income (loss) from operations $ 63,869 $ (1,470) $ 4,169 $ 861 $ (8,677) $ 58,752 Year Ended April 30, 2020 Small UAS TMS MUAS HAPS All other Total Revenue $ 225,888 $ 63,781 $ - $ 60,864 $ 16,763 $ 367,296 Gross margin 117,538 18,082 - 17,436 46 153,102 Income (loss) from continuing operations 64,680 (15,822) - 9,744 (11,467) 47,135 Acquisition-related expenses 537 336 - 134 112 1,119 Amortization of acquired intangible assets and other purchase accounting adjustments 2,467 - - - - 2,467 Adjusted income (loss) from operations $ 67,684 $ (15,486) $ - $ 9,878 $ (11,355) $ 50,721 |
Schedule of identifiable assets by segment | April 30, 2022 Small UAS TMS MUAS HAPS All other Corporate Total Identifiable assets $ 110,286 $ 91,862 $ 388,058 $ 8,148 $ 86,617 $ 229,229 $ 914,200 April 30, 2021 Small UAS TMS MUAS HAPS All other Corporate Total Identifiable assets $ 115,156 $ 72,073 $ 400,901 $ 598 $ 37,677 $ 302,161 $ 928,566 |
Organization and Significant _4
Organization and Significant Accounting Policies - (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | Apr. 30, 2022 USD ($) segment | May 03, 2021 | Apr. 30, 2021 USD ($) | Feb. 19, 2021 | Jun. 10, 2019 | |
Percentage of ownership interest sold | 7% | |||||
Number of reportable segments | segment | 4 | |||||
Restricted cash | $ | $ 0 | $ 8,322,000 | ||||
HAPSMobile | ||||||
Ownership interest | 100% | |||||
Pulse Aerospace, LLC | ||||||
Ownership interest acquired | 100% | |||||
Arcturus UAV Inc. | ||||||
Ownership interest acquired | 100% | |||||
Telerob | ||||||
Ownership interest acquired | 100% |
Organization and Significant _5
Organization and Significant Accounting Policies - Concentration of Credit Risk (Details) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Customer concentration | Sales Revenue | US Government Agencies | |||
Concentration of Credit Risk | |||
Concentration Risk, Percentage | 66% | 69% | 61% |
Customer concentration | Sales Revenue | US Army | |||
Concentration of Credit Risk | |||
Concentration Risk, Percentage | 21% | 34% | 32% |
Credit concentration | Accounts receivable balances | US Government Agencies | |||
Concentration of Credit Risk | |||
Concentration Risk, Percentage | 65% | 64% |
Organization and Significant _6
Organization and Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Accounts Receivable , Unbilled Receivables and Retentions | ||
Retentions | $ 736 | $ 700 |
Organization and Significant _7
Organization and Significant Accounting Policies - Long-Lived Assets (Details) | 12 Months Ended |
Apr. 30, 2022 | |
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 |
Organization and Significant _8
Organization and Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Intangibles, net | |||
Impairment recorded | $ 0 | $ 0 | $ 0 |
Percentage of estimated fair value exceeded the carrying value | 9% | ||
Backlog | |||
Intangibles, net | |||
Weighted average amortization period | 1 year | ||
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 | Technology | |||
Intangibles, net | |||
Weighted average amortization period | 12 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, 2022 | Apr. 30, 2021 |
Self-Insurance Liability | ||
Estimated self-insurance liability of employee medical claim | $ 1,653 | $ 1,181 |
Other current liabilities | ||
Accrued liabilities | ||
Accrued sales commission | $ 3,219 | $ 2,716 |
Organization and Significant_10
Organization and Significant Accounting Policies - Performance Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Organization and Significant Accounting Policies | |||
Remaining performance obligations satisfied over time (as a percentage) | 57% | 43% | 42% |
Remaining performance obligations at a point in time (as a percentage) | 43% | 57% | 58% |
Performance Obligations | |||
Remaining performance obligations | $ 210,780 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-30 | |||
Organization and Significant Accounting Policies | |||
Remaining performance obligations (as a percentage) | 94% | ||
Performance Obligations | |||
Year of performance obligations | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-30 | |||
Organization and Significant Accounting Policies | |||
Remaining performance obligations (as a percentage) | 6% | ||
Performance Obligations | |||
Year of performance obligations | 1 year |
Organization and Significant_11
Organization and Significant Accounting Policies - Contract Estimates (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
TMS contract | |||
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | $ (1,124,000) | $ (1,041,000) | |
Amount of revised aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | 1,124,000 | 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) | $ (1,403,000) |
Organization and Significant_12
Organization and Significant Accounting Policies - Revenue by Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Disaggregation of revenue | |||
Revenue | $ 445,732 | $ 394,912 | $ 367,296 |
Contract Liability | |||
Disaggregation of revenue | |||
Revenue | 3,144 | 5,468 | 1,670 |
Domestic | |||
Disaggregation of revenue | |||
Revenue | 262,258 | 241,898 | 201,046 |
International | |||
Disaggregation of revenue | |||
Revenue | 183,474 | 153,014 | 166,250 |
U.S. government | |||
Disaggregation of revenue | |||
Revenue | 294,941 | 271,273 | 225,341 |
Non-U.S. government | |||
Disaggregation of revenue | |||
Revenue | 150,791 | 123,639 | 141,955 |
FFP | |||
Disaggregation of revenue | |||
Revenue | 346,092 | 307,413 | 269,917 |
CPFF | |||
Disaggregation of revenue | |||
Revenue | 93,428 | 86,719 | 94,176 |
T&M | |||
Disaggregation of revenue | |||
Revenue | 6,212 | 780 | 3,203 |
Small UAS | |||
Disaggregation of revenue | |||
Revenue | 178,201 | 235,854 | 225,888 |
TMS | |||
Disaggregation of revenue | |||
Revenue | 76,415 | 87,268 | 63,781 |
MUAS. | |||
Disaggregation of revenue | |||
Revenue | 93,156 | 15,837 | |
HAPS | |||
Disaggregation of revenue | |||
Revenue | 43,325 | 42,426 | 60,864 |
Other. | |||
Disaggregation of revenue | |||
Revenue | $ 54,635 | $ 13,527 | $ 16,763 |
Organization and Significant_13
Organization and Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Stock-Based Compensation | |||
Performance period | 3 years | ||
Research and Development | |||
Revenue from customer funded research and development | $ 84,247 | $ 74,218 | $ 80,934 |
Cost of sales | 59,054 | 51,395 | 56,440 |
Research and Development With Federal Government | |||
Funding | 11,225 | ||
Reimbursement amount | 21,833 | ||
Reimbursements under the contract | $ 3,424 | 8,102 | |
Lease Accounting | |||
Option to terminate period (in years) | 2 years | ||
Advertising Costs | |||
Advertising expenses | $ 451 | 675 | 934 |
Foreign currency transactions | |||
Foreign currency losses | 242 | 1 | 1 |
Numerator for basic earnings per share: | |||
Continuing operations attributable to AeroVironment | (4,188) | 23,331 | 41,339 |
Loss on sale of business, net of tax | (265) | ||
Net income attributable to AeroVironment | $ (4,188) | $ 23,331 | $ 41,074 |
Denominator for basic earnings per share: | |||
Weighted average common shares | 24,685,534 | 24,049,851 | 23,806,208 |
Dilutive effect of employee stock options, restricted stock and restricted stock units | 312,805 | 281,959 | |
Denominator for diluted earnings (loss) per share | 24,685,534 | 24,362,656 | 24,088,167 |
Number of shares reserved for issuance | 0 | ||
Number of anti-dilutive shares | 224,000 | 3,000 | 3,000 |
Prepaid expenses and other current assets | |||
Cost to Fulfill a Contract with a Customer | |||
Costs to fulfill future performance obligations | $ 0 | $ 1,729 | |
Maximum | |||
Lease Accounting | |||
Option to extend period (in years) | 10 years |
Discontinued Operations (Detail
Discontinued Operations (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 16, 2021 USD ($) | Dec. 02, 2021 USD ($) | Feb. 22, 2019 USD ($) | Jun. 30, 2020 USD ($) | Oct. 31, 2021 USD ($) | Apr. 30, 2022 USD ($) contract | Apr. 30, 2021 USD ($) | Apr. 30, 2020 USD ($) | Jun. 29, 2018 USD ($) | |
Other expense | |||||||||
Discontinued operations | |||||||||
Litigation reserve expense | $ 9,300,000 | ||||||||
Discontinued Operations | |||||||||
Discontinued operations | |||||||||
Amount of alleged damages | $ 6,500,000 | ||||||||
EES Business | |||||||||
Discontinued operations | |||||||||
Litigation reserve expense | $ 10,000,000 | ||||||||
Amount of existing claims settled | $ 20,000,000 | $ 20,000,000 | |||||||
Settlement paid | 5,000,000 | ||||||||
Payment period | 24 months | ||||||||
EES Business | Disposed of by sale | |||||||||
Discontinued operations | |||||||||
Cash consideration received | $ 31,994,000 | ||||||||
Amounts recorded in the consolidated financial statements | $ 341,000 | ||||||||
EES Business | Disposed of by sale | Other income, net | |||||||||
Discontinued operations | |||||||||
Net sales | 0 | $ 38,000 | $ 551,000 | ||||||
Holdback | Disposed of by sale | |||||||||
Discontinued operations | |||||||||
Cash consideration received | $ 6,500,000 | ||||||||
Number of remaining contracts | contract | 2 |
Discontinued Operations - EES B
Discontinued Operations - EES Business (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2020 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loss on sale of business, net of tax benefit of $76 for the year ended April 30, 2020 | $ (265) |
Net loss from discontinued operations | (265) |
Tax expense | 76 |
EES Business | Disposed of by sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Tax expense | 76 |
EES Business | Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Loss on sale of business, net of tax benefit of $76 for the year ended April 30, 2020 | (265) |
Net loss from discontinued operations | $ (265) |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Short-term investments: | ||
Total short-term investments | $ 24,716 | $ 31,971 |
Long-term investments: | ||
Equity Method Investments. | 15,433 | 7,168 |
Total long-term investments | 15,433 | 12,156 |
Investment in limited partnership fund | ||
Long-term investments: | ||
Equity Method Investments. | 15,433 | 7,168 |
Available-for-sale securities. | ||
Short-term investments: | ||
Total short-term investments | 24,716 | 31,971 |
Long-term investments: | ||
Total long-term investments | 4,988 | |
Available-for-sale securities. | Municipal securities | ||
Short-term investments: | ||
Total short-term investments | 19,725 | 22,245 |
Long-term investments: | ||
Total long-term investments | 988 | |
Available-for-sale securities. | U.S. government securities | ||
Short-term investments: | ||
Total short-term investments | $ 4,991 | 4,009 |
Long-term investments: | ||
Total long-term investments | 4,000 | |
Available-for-sale securities. | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | $ 5,717 |
Investments - Available For Sal
Investments - Available For Sale Securities (Details) - Available-for-sale securities. - USD ($) $ in Thousands | Apr. 30, 2022 | Apr. 30, 2021 |
Available-For-Sale Securities | ||
Amortized Cost | $ 24,751 | $ 36,953 |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | (35) | (3) |
Total | 24,716 | 36,959 |
Municipal securities | ||
Available-For-Sale Securities | ||
Amortized Cost | 19,756 | 23,227 |
Gross Unrealized Gains | 8 | |
Gross Unrealized Losses | (31) | (2) |
Total | 19,725 | 23,233 |
U.S. government securities | ||
Available-For-Sale Securities | ||
Amortized Cost | 4,995 | 8,008 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (4) | |
Total | $ 4,991 | 8,009 |
Corporate bonds | ||
Available-For-Sale Securities | ||
Amortized Cost | 5,718 | |
Gross Unrealized Losses | (1) | |
Total | $ 5,717 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of the Held-to-Maturity Securities by Contractual Maturity (Details) $ in Thousands | Apr. 30, 2022 USD ($) |
Amortized cost of held-to-maturity securities by contractual maturity | |
Due within one year | $ 24,751 |
Total | 24,751 |
Fair value of held-to-maturity securities by contractual maturity | |
Due within one year | 24,716 |
Total | $ 24,716 |
Fair Value Measurements - (Deta
Fair Value Measurements - (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Intelligent Systems Group | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ (5,857,000) | |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 24,716,000 | $ 36,959,000 |
Contingently returnable consideration | 143,000 | 479,000 |
Total | 24,859,000 | 37,438,000 |
Contingent consideration | (1,084,000) | |
Total | 1,084,000 | |
Recurring basis | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 24,716,000 | 36,959,000 |
Total | 24,716,000 | 36,959,000 |
Recurring basis | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingently returnable consideration | 143,000 | 479,000 |
Total | 143,000 | $ 479,000 |
Contingent consideration | (1,084,000) | |
Total | $ 1,084,000 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2022 USD ($) | |
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis | |
Included in selling, general and administrative | Selling, general and administrative |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Included in selling, general and administrative | Selling, general and administrative |
Significant unobservable inputs (Level 3) | |
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis | |
Balance at the beginning of the period | $ 479 |
Total (gains) losses (realized or unrealized) | 336 |
Balance at the end of the period | 143 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Business acquisition | 889 |
Total (gains) losses (realized or unrealized) | 195 |
Balance at the end of the period | $ 1,084 |
Fair Value Measurements - ISG (
Fair Value Measurements - ISG (Details) | 12 Months Ended | ||||
Feb. 23, 2021 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2022 EUR (€) | Apr. 30, 2022 EUR (€) | Apr. 30, 2021 USD ($) | |
Intelligent Systems Group | |||||
Fair Value Measurement | |||||
Fair value of the contingently returnable consideration | $ 479,000 | ||||
Total | $ 29,700,000 | ||||
Contingent consideration paid | 6,000,000 | $ 6,000,000 | |||
Fair value of contingent consideration | $ 5,857,000 | ||||
Additional cash consideration | $ 35,371,000 | ||||
Period to obtain target | 3 years | 3 years | |||
Intelligent Systems Group | Maximum | |||||
Fair Value Measurement | |||||
Total | $ 6,000,000 | ||||
Intelligent Systems Group | Business Combination, Specific Revenue Targets Achieved In First Earnout Year | |||||
Fair Value Measurement | |||||
Released from escrow | 2,000,000 | ||||
Intelligent Systems Group | Business Combination, Specific Revenue Targets Achieved In Second Earnout Year | |||||
Fair Value Measurement | |||||
Released from escrow | 2,000,000 | ||||
Telerob | |||||
Fair Value Measurement | |||||
Additional cash consideration | $ 7,272,000 | € 6,000,000 | |||
Period to obtain target | 36 months | 36 months | |||
Amount of earnout amount not achieved | € | € 2,000,000 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Inventories, net | |||
Raw materials | $ 42,310 | $ 23,997 | |
Work in process | 28,034 | 13,825 | |
Finished goods | 32,619 | 44,113 | |
Inventories, gross | 102,963 | 81,935 | |
Reserve for inventory excess and obsolescence | (12,334) | (10,289) | |
Inventories, net | 90,629 | 71,646 | |
Inventory reserve charge | 2,271 | $ 1,178 | $ 5,377 |
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, 2022 | Apr. 30, 2021 |
Intangibles, net | ||
Intangibles, gross | $ 133,551 | $ 116,872 |
Less accumulated amortization | (36,327) | (10,604) |
Intangibles, net | 97,224 | 106,268 |
Technology | ||
Intangibles, net | ||
Intangibles, gross | 56,913 | 46,850 |
Licenses | ||
Intangibles, net | ||
Intangibles, gross | 1,008 | 1,008 |
Backlog. | ||
Intangibles, net | ||
Intangibles, gross | 2,100 | |
Customer relationships | ||
Intangibles, net | ||
Intangibles, gross | 72,448 | 68,073 |
In-process research and development | ||
Intangibles, net | ||
Intangibles, gross | 550 | 550 |
Non-compete agreements | ||
Intangibles, net | ||
Intangibles, gross | 320 | 320 |
Trademarks and tradenames | ||
Intangibles, net | ||
Intangibles, gross | 68 | 68 |
Other | ||
Intangibles, net | ||
Intangibles, gross | $ 144 | $ 3 |
Intangibles, net (Details)
Intangibles, net (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Intangibles, net | |||
Amortization expense | $ 26,558,000 | $ 6,469,000 | $ 2,822,000 |
Weighted average | |||
Intangibles, net | |||
Weighted average amortization period | 4 years | 5 years |
Intangibles, net - Estimated Am
Intangibles, net - Estimated Amortization Expense (Details) $ in Thousands | Apr. 30, 2022 USD ($) |
Estimated amortization expense | |
2023 | $ 27,760 |
2024 | 26,870 |
2025 | 18,156 |
2026 | 13,114 |
2027 | 2,485 |
Total | $ 88,385 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Goodwill | ||
Goodwill, Beginning Balance | $ 314,205 | $ 6,340 |
Additions to goodwill | 20,142 | 307,865 |
Goodwill, Ending Balance | 334,347 | 314,205 |
Small UAS | ||
Goodwill | ||
Goodwill, Beginning Balance | 6,340 | 6,340 |
Goodwill, Ending Balance | 6,340 | 6,340 |
MUAS | ||
Goodwill | ||
Goodwill, Beginning Balance | 288,611 | |
Additions to goodwill | 1,546 | 288,611 |
Goodwill, Ending Balance | 290,157 | 288,611 |
All other | ||
Goodwill | ||
Goodwill, Beginning Balance | 19,254 | |
Additions to goodwill | 18,596 | 19,254 |
Goodwill, Ending Balance | $ 37,850 | $ 19,254 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Property and equipment, net | |||
Property and equipment, gross | $ 184,430,000 | $ 151,698,000 | |
Less accumulated depreciation and amortization | (122,134,000) | (92,802,000) | |
Property and equipment, net | 62,296,000 | 58,896,000 | |
Depreciation expense | 30,493,000 | 12,793,000 | $ 7,066,000 |
Loss on disposal of property and equipment | 1,378,000 | ||
In-service ISR assets | |||
Property and equipment, net | |||
Property and equipment, gross | 48,496,000 | 36,047,000 | |
Leasehold improvements | |||
Property and equipment, net | |||
Property and equipment, gross | 20,842,000 | 18,703,000 | |
Machinery and equipment | |||
Property and equipment, net | |||
Property and equipment, gross | 64,759,000 | 53,943,000 | |
Furniture and fixtures | |||
Property and equipment, net | |||
Property and equipment, gross | 4,239,000 | 3,698,000 | |
Computer equipment and software | |||
Property and equipment, net | |||
Property and equipment, gross | 41,476,000 | 36,618,000 | |
Construction in process | |||
Property and equipment, net | |||
Property and equipment, gross | $ 4,618,000 | $ 2,689,000 |
Investments in Companies Acco_3
Investments in Companies Accounted for Using the Equity Method (Details) | 12 Months Ended | ||||||||||||||||||||||||||||
Mar. 01, 2022 USD ($) | Mar. 01, 2022 JPY (¥) | Oct. 29, 2021 USD ($) | Oct. 29, 2021 JPY (¥) | Aug. 13, 2021 USD ($) | Aug. 13, 2021 JPY (¥) | Jun. 07, 2021 USD ($) | Jun. 07, 2021 JPY (¥) | May 29, 2021 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2021 USD ($) | Apr. 30, 2020 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 JPY (¥) | May 29, 2021 JPY (¥) | Dec. 04, 2019 USD ($) | Dec. 04, 2019 JPY (¥) | May 11, 2019 | May 10, 2019 USD ($) | May 10, 2019 JPY (¥) | Feb. 09, 2019 USD ($) | Feb. 09, 2019 JPY (¥) | Feb. 08, 2019 | Jan. 29, 2019 USD ($) | Jan. 29, 2019 JPY (¥) | Apr. 17, 2018 USD ($) | Apr. 17, 2018 JPY (¥) | Dec. 27, 2017 USD ($) | Dec. 27, 2017 JPY (¥) | |
Equity Method Investments | |||||||||||||||||||||||||||||
Equity method investment income (loss), net of tax | $ 4,589,000 | $ (10,481,000) | $ (5,487,000) | ||||||||||||||||||||||||||
Carrying value of investment | $ 15,433,000 | 7,168,000 | |||||||||||||||||||||||||||
SoftBank | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Ownership percentage | 100% | ||||||||||||||||||||||||||||
Payments for purchase of interest | ¥ | ¥ 209,500,000 | ||||||||||||||||||||||||||||
HAPSMobile | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Ownership percentage | 0% | 7% | 7% | 5% | 10% | 10% | 10% | 10% | 5% | 5% | 5% | ||||||||||||||||||
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 income (loss), net of tax | $ 0 | 10,530,000 | $ 4,982,000 | ||||||||||||||||||||||||||
HAPSMobile | Other assets, long term | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Carrying value of investment | 0 | $ 0 | |||||||||||||||||||||||||||
HAPSMobile | SoftBank | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Ownership percentage | 7% | 7% | |||||||||||||||||||||||||||
Payments for purchase of interest | $ 6,497,000 | ¥ 808,008,000 | $ 5,671,000 | ¥ 632,800,000 | |||||||||||||||||||||||||
Execution of MDDA | ¥ | ¥ 500,000,000 | ||||||||||||||||||||||||||||
LOON LLC | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Amount of loss from impairment of investment | $ 8,363,000 | ||||||||||||||||||||||||||||
MDDA | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Term of MDDA | 5 years | ||||||||||||||||||||||||||||
MDDA | SoftBank | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Maximum value under MDDA | $ 51,200,000 | ||||||||||||||||||||||||||||
MDDA | HAPSMobile | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||
Amount funded | $ 4,345,000 | ¥ 503,832,000 | $ 1,674,000 | ¥ 190,000,000 | $ 1,638,000 | ¥ 180,000,000 | $ 1,195,000 | ¥ 130,000,000 |
Investments in Companies Acco_4
Investments in Companies Accounted for Using the Equity Method - Investment in Limited Partnership Fund (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Jan. 04, 2021 | Jul. 15, 2020 | May 31, 2022 | Mar. 31, 2022 | Jul. 31, 2019 | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Equity Method Investments | ||||||||
Equity method investment income (loss), net of tax | $ 4,589,000 | $ (10,481,000) | $ (5,487,000) | |||||
Carrying value of investment | 15,433,000 | 7,168,000 | ||||||
Limited Partnership Fund | ||||||||
Equity Method Investments | ||||||||
Capital contributions | $ 2,675,000 | $ 2,377,000 | $ 2,774,000 | $ 20,000,000 | $ 4,948,000 | |||
Expected years contributions will be made | 5 years | |||||||
Additional capital contributions | 0 | |||||||
Equity method investment income (loss), net of tax | 5,889,000 | 49,000 | (394,000) | |||||
Income tax expense from equity method investments | 1,300,000 | 11 | 111,000 | |||||
Limited Partnership Fund | Long term investments | ||||||||
Equity Method Investments | ||||||||
Carrying value of investment | 15,433,000 | 7,168,000 | ||||||
HAPSMobile | Equity method investment loss, net of tax | ||||||||
Equity Method Investments | ||||||||
Equity method investment income (loss), net of tax | $ 0 | $ 10,530,000 | $ 4,982,000 |
Investments in Companies Acco_5
Investments in Companies Accounted for Using the Equity Method - Summarized financial information of equity method investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Equity Method Investments | |||
Current assets | $ 368,909 | $ 401,638 | |
Noncurrent assets | 1,932 | 10,440 | |
Current liabilities | 101,391 | 96,185 | |
Gross loss | 141,236 | 164,558 | $ 153,102 |
Net (loss) income | (4,185) | 23,345 | 41,070 |
Limited Partnership Fund. | |||
Equity Method Investments | |||
Current assets | 3,243 | 9,106 | |
Noncurrent assets | 140,178 | 65,717 | |
Current liabilities | 683 | 76,492 | |
Revenue | 187 | 159 | 25 |
Gross loss | (13,113) | (1,241) | (1,331) |
Realized and unrealized losses on investments | 63,314 | (131,971) | (7,028) |
Net (loss) income | $ 40,349 | $ (190,454) | $ (85,818) |
Warranty Reserves (Details)
Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Warranty Reserves | ||
Beginning balance | $ 2,341 | $ 2,015 |
Balance acquired from acquisition | 256 | |
Warranty expense | 1,089 | 1,650 |
Warranty costs settled | (1,496) | (1,324) |
Ending balance | $ 2,190 | $ 2,341 |
Employee Savings Plan (Details)
Employee Savings Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Employee Savings Plan | |||
Amount of expense in contribution to the plan | $ 6,842 | $ 5,764 | $ 4,744 |
Debt - (Details)
Debt - (Details) | 12 Months Ended | ||
Feb. 04, 2022 | Feb. 19, 2021 USD ($) payment | Apr. 30, 2022 | |
Base Rate | Minimum | |||
Debt | |||
Interest rate | 0.50% | ||
Base Rate | Maximum | |||
Debt | |||
Interest rate | 1.50% | ||
SOFR | Minimum | |||
Debt | |||
Interest rate | 1.50% | ||
SOFR | Maximum | |||
Debt | |||
Interest rate | 2.50% | ||
Revolving credit facility | |||
Debt | |||
Additional interest rate if default occurs (as a percentage) | 2% | ||
Revolving credit facility | Minimum | Fiscal quarter ended January 29, 2022 and April, 2022 | |||
Debt | |||
Consolidated leverage ratio | 1% | ||
Revolving credit facility | Minimum | Fiscal quarters ending during the period from May 1, 2022 to October 31, 2022 | |||
Debt | |||
Consolidated leverage ratio | 1% | ||
Revolving credit facility | Minimum | Fiscal quarter ending thereafter which is after October 31, 2022 | |||
Debt | |||
Consolidated leverage ratio | 1% | ||
Revolving credit facility | Maximum | Fiscal quarter ended January 29, 2022 and April, 2022 | |||
Debt | |||
Consolidated leverage ratio | 4% | ||
Revolving credit facility | Maximum | Fiscal quarters ending during the period from May 1, 2022 to October 31, 2022 | |||
Debt | |||
Consolidated leverage ratio | 3.50% | ||
Revolving credit facility | Maximum | Fiscal quarter ending thereafter which is after October 31, 2022 | |||
Debt | |||
Consolidated leverage ratio | 3% | ||
Revolving credit facility | SOFR | |||
Debt | |||
Interest rate | 1% | ||
SOFR adjustment | 0.10% | ||
Revolving credit facility | SOFR | Minimum | |||
Debt | |||
Interest rate | 0% | ||
Revolving credit facility | Consolidated Leverage Ratio | Minimum | |||
Debt | |||
Interest rate | 1% | ||
Commitment fees (as a percentage) | 0.20% | ||
Revolving credit facility | Consolidated Leverage Ratio | Maximum | |||
Debt | |||
Interest rate | 3% | ||
Commitment fees (as a percentage) | 0.35% | ||
Revolving credit facility | Consolidated Fixed Charge Coverage Ratio | Minimum | |||
Debt | |||
Interest rate | 1.25% | ||
Revolving credit facility | Consolidated Fixed Charge Coverage Ratio | Maximum | |||
Debt | |||
Interest rate | 1% | ||
Revolving credit facility | Federal Funds | |||
Debt | |||
Interest rate | 0.50% | ||
Revolving credit facility | Arcturus UAV Inc. | |||
Debt | |||
Term of loan | 5 years | ||
Amount of loan | $ 100,000,000 | ||
Revolving credit facility | Arcturus UAV Inc. | Maximum | |||
Debt | |||
Percentage of outstanding equity interests in foreign subsidiaries | 65% | ||
Standby Letters of Credit | Arcturus UAV Inc. | |||
Debt | |||
Amount of sublimit | $ 10,000,000 | ||
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% | ||
Term loans | Arcturus UAV Inc. | Period Five | |||
Debt | |||
Amount of annual required payment expressed as a percent of the outstanding obligation | 80% | ||
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) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Long-term debt | ||
Total debt | $ 190,000 | $ 200,000 |
Less current portion | 10,000 | 10,000 |
Total long-term debt, less current portion | 180,000 | 190,000 |
Total long-term debt, net of unamortized debt issuance costs - term loans | $ 177,840 | $ 187,512 |
Current period interest rate | 2.60% | 2.20% |
Term loans | ||
Long-term debt | ||
Total debt | $ 190,000 | $ 200,000 |
Less unamortized debt issuance costs - term loans | 2,160 | 2,488 |
Revolving credit facility | ||
Long-term debt | ||
Unamortized debt issuance costs - revolving credit facility | $ 1,076 | $ 1,244 |
Debt - Future principle payment
Debt - Future principle payments (Details) $ in Thousands | Apr. 30, 2022 USD ($) |
Future principle payments | |
2023 | $ 10,000 |
2024 | 10,000 |
2025 | 10,000 |
2026 | 160,000 |
Total | $ 190,000 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Apr. 30, 2022 | |
Leases | |
Option to extend | true |
Option to terminate | true |
Option to terminate period (in years) | 2 years |
Minimum | |
Leases | |
Remaining lease terms (in years) | 1 year |
Maximum | |
Leases | |
Remaining lease terms (in years) | 8 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, 2022 | Apr. 30, 2021 | |
Components of lease costs | ||
Operating lease cost | $ 6,814 | $ 5,150 |
Short term lease cost | 840 | 602 |
Variable lease cost | 653 | 23 |
Sublease income | (176) | (91) |
Total lease costs, net | $ 8,131 | $ 5,684 |
Leases - Supplemental lease inf
Leases - Supplemental lease information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Leases | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 6,925 | $ 5,070 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 10,238 | $ 18,729 |
Weighted average remaining lease term | 62 months | 71 months |
Weighted average discount rate | 3.40% | 3.60% |
Leases - Maturities of operatin
Leases - Maturities of operating lease liabilities (Details) $ in Thousands | Apr. 30, 2022 USD ($) |
Maturities of operating lease liabilities: | |
2022 | $ 6,819 |
2023 | 6,980 |
2024 | 6,070 |
2025 | 3,675 |
2026 | 2,540 |
Thereafter | 5,484 |
Total lease payments | 31,568 |
Less: imputed interest | (2,834) |
Total present value of operating lease liabilities | $ 28,734 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | |||
Sep. 24, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Stock Based Compensation | ||||
Stock based compensation expense | $ 5,390,000 | $ 6,932,000 | $ 6,227,000 | |
Exercisable period from grant date | 3 years | |||
Number of awards that may be granted | 0 | |||
Options granted (in shares) | 0 | 0 | 0 | |
Maximum | ||||
Stock Based Compensation | ||||
Amount that may be paid in cash as a performance-based award to one participant during the inital period | $ 700,000 | |||
Restated 2006 Plan | ||||
Stock Based Compensation | ||||
Number of shares that may be granted to one participant during any twelve month period | 2,000,000 | |||
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% | |||
2001 Plan | ||||
Stock Based Compensation | ||||
Percentage of the fair market value on date of grant | 100% | |||
2001 Plan | Maximum | ||||
Stock Based Compensation | ||||
Amount that may be paid in cash as a performance-based award to one participant during any twelve month period | $ 500,000 | |||
2002 Plan | Stock options | ||||
Stock Based Compensation | ||||
Exercisable period from grant date | 5 years | |||
1992 Plan | Stock options | ||||
Stock Based Compensation | ||||
Exercisable period from grant date | 5 years |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Shares | |||
Options granted (in shares) | 0 | 0 | 0 |
Stock options | |||
Intrinsic value of options | |||
Intrinsic value of options exercised | $ 4,785 | $ 4,828 | $ 833 |
Intrinsic value of options outstanding | 9,229 | 24,068 | |
Intrinsic value of exercisable options | $ 9,229 | $ 24,068 | |
Restated 2006 Plan | Stock options | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 280,526 | 334,026 | 337,026 |
Options exercised (in shares) | (114,362) | (53,500) | (3,000) |
Outstanding at the end of the year (in shares) | 166,164 | 280,526 | 334,026 |
Options exercisable (in shares) | 166,164 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the year (in dollars per share) | $ 24.57 | $ 25.19 | $ 25.25 |
Options exercised (in dollars per share) | 24.28 | 28.45 | 31.15 |
Outstanding at the end of the year (in dollars per share) | 24.78 | $ 24.57 | $ 25.19 |
Options exercisable (in dollars per share) | $ 24.78 | ||
1992 Plan | Stock options | |||
Shares | |||
Outstanding at the beginning of the year (in shares) | 1,113 | 14,302 | |
Options exercised (in shares) | (1,113) | (13,189) | |
Outstanding at the end of the year (in shares) | 1,113 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the year (in dollars per share) | $ 0.59 | $ 0.59 | |
Options exercised (in dollars per share) | $ 0.59 | 0.59 | |
Outstanding at the end of the year (in dollars per share) | $ 0.59 |
Stock-Based Compensation Non-Ve
Stock-Based Compensation Non-Vested Stock Options (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Options | |||
Options granted (in shares) | 0 | 0 | 0 |
Non-vested at end of year (in shares) | 0 | ||
Unrecognized compensation cost related to non-vested stock awards | $ 10,583,000 | ||
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 1 month 6 days | ||
Exercise of stock options | $ 2,776,000 | $ 1,522,000 | $ 100,000 |
Fair value of shares vested | 5,901,000 | 5,312,000 | 4,900,000 |
Excess tax benefit from stock-based compensation | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation Other
Stock-Based Compensation Other (Details) | 12 Months Ended |
Apr. 30, 2022 $ / shares shares | |
Options Exercisable | |
Weighted Average Remaining Contractual Life | 1 year 11 months 4 days |
18.07 | |
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) | $ 18.32 |
Options Outstanding | |
Number of Options (in shares) | shares | 30,000 |
Weighted Average Remaining Contractual Life In Years | 11 months 23 days |
Weighted Average Exercise Price (in dollars per share) | $ 18.07 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 30,000 |
Weighted Average Exercise Price (in dollars per share) | $ 18.07 |
18.33 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 18.33 |
Range of Exercise Price, high end of range (in dollars per share) | $ 22.64 |
Options Outstanding | |
Number of Options (in shares) | shares | 20,000 |
Weighted Average Remaining Contractual Life In Years | 11 months 23 days |
Weighted Average Exercise Price (in dollars per share) | $ 18.57 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 20,000 |
Weighted Average Exercise Price (in dollars per share) | $ 18.57 |
22.65 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 22.65 |
Range of Exercise Price, high end of range (in dollars per share) | $ 26.99 |
Options Outstanding | |
Number of Options (in shares) | shares | 50,000 |
Weighted Average Remaining Contractual Life In Years | 3 years 1 month 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 26.70 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 50,000 |
Weighted Average Exercise Price (in dollars per share) | $ 26.70 |
27.00 | |
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) | $ 29.27 |
Options Outstanding | |
Number of Options (in shares) | shares | 50,000 |
Weighted Average Remaining Contractual Life In Years | 1 year 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 |
29.28 | |
Stock-Based Compensation | |
Range of Exercise Price, low end of range (in dollars per share) | 29.28 |
Range of Exercise Price, high end of range (in dollars per share) | $ 31.27 |
Options Outstanding | |
Number of Options (in shares) | shares | 16,164 |
Weighted Average Remaining Contractual Life In Years | 2 years 3 months 3 days |
Weighted Average Exercise Price (in dollars per share) | $ 31.27 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 16,164 |
Weighted Average Exercise Price (in dollars per share) | $ 31.27 |
18.07. | |
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 | 166,164 |
Weighted Average Remaining Contractual Life In Years | 1 year 11 months 4 days |
Weighted Average Exercise Price (in dollars per share) | $ 24.78 |
Options Exercisable | |
Number of Options Exercisable (in shares) | shares | 166,164 |
Weighted Average Exercise Price (in dollars per share) | $ 24.78 |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Awards (Details) | 12 Months Ended |
Apr. 30, 2022 $ / shares shares | |
Restricted stock awards | 2021 Plan | |
Shares | |
Stock granted (in shares) | shares | 47,026 |
Stock canceled (in shares) | shares | (1,950) |
Unvested stock at end of year (in shares) | shares | 45,076 |
Weighted Average Grant Date Fair Value | |
Stock granted (in dollars per shares) | $ / shares | $ 75.66 |
Stock canceled (in dollars per shares) | $ / shares | 74.27 |
Unvested stock at end of year (in dollars per share) | $ / shares | $ 75.71 |
Restricted stock awards | Restated 2006 Plan | |
Shares | |
Unvested stock at beginning of year (in shares) | shares | 180,028 |
Stock granted (in shares) | shares | 57,376 |
Stock vested (in shares) | shares | (94,389) |
Stock canceled (in shares) | shares | (30,170) |
Unvested stock at end of year (in shares) | shares | 112,845 |
Weighted Average Grant Date Fair Value | |
Unvested stock at beginning of year (in dollars per share) | $ / shares | $ 83.02 |
Stock granted (in dollars per shares) | $ / shares | 66.10 |
Stock vested (in dollars per shares) | $ / shares | 62.52 |
Stock canceled (in dollars per shares) | $ / shares | 89.58 |
Unvested stock at end of year (in dollars per share) | $ / shares | $ 89.80 |
Restricted stock units | Restated 2006 Plan | |
Shares | |
Stock granted (in shares) | shares | 4,395 |
Unvested stock at end of year (in shares) | shares | 4,395 |
Weighted Average Grant Date Fair Value | |
Stock granted (in dollars per shares) | $ / shares | $ 97.96 |
Unvested stock at end of year (in dollars per share) | $ / shares | $ 97.69 |
Long-Term Incentive Awards (Det
Long-Term Incentive Awards (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Aug. 01, 2020 | Jul. 31, 2021 | Aug. 01, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | Jul. 30, 2017 | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Stock Based Compensation | |||||||||
Stock based compensation expense | $ 5,390,000 | $ 6,932,000 | $ 6,227,000 | ||||||
Exercisable period from grant date | 3 years | ||||||||
LTIP | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | $ 4,594,000 | 5,177,000 | |||||||
Fiscal 2022 LTIP | Performance based restricted stock units | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | 752,000 | ||||||||
Exercisable period from grant date | 3 years | ||||||||
Fiscal 2022 LTIP | Performance based restricted stock units | 100% Vested | |||||||||
Stock Based Compensation | |||||||||
Vesting (as a percentage) | 100% | ||||||||
Fiscal 2022 LTIP | Performance based restricted stock units | 50% Vested | |||||||||
Stock Based Compensation | |||||||||
Vesting (as a percentage) | 50% | ||||||||
Fiscal 2022 LTIP | Performance based restricted stock units | 250% Vested | |||||||||
Stock Based Compensation | |||||||||
Vesting (as a percentage) | 250% | ||||||||
Fiscal 2022 LTIP | Performance based restricted stock units | Maximum | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | 10,473,000 | ||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | (634,000) | 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% | ||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | 50% Vested | |||||||||
Stock Based Compensation | |||||||||
Vesting (as a percentage) | 50% | ||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | 250% Vested | |||||||||
Stock Based Compensation | |||||||||
Vesting (as a percentage) | 250% | ||||||||
Fiscal 2021 LTIP | Performance based restricted stock units | Maximum | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | 6,021,000 | ||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | (701,000) | 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% | ||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | 50% Vested | |||||||||
Stock Based Compensation | |||||||||
Vesting (as a percentage) | 50% | ||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | 200% Vested | |||||||||
Stock Based Compensation | |||||||||
Vesting (as a percentage) | 200% | ||||||||
Fiscal 2020 LTIP | Performance based restricted stock units | Maximum | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | 3,335,000 | ||||||||
Fiscal 2019 LTIP | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | 0 | ||||||||
Fiscal 2019 LTIP | Performance based restricted stock units | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | 368,000 | 386,000 | |||||||
Exercisable period from grant date | 3 years | ||||||||
Issue of fully-vested shares of common stock to settle | 12,101 | ||||||||
Fiscal 2018 LTIP | Performance based restricted stock units | |||||||||
Stock Based Compensation | |||||||||
Stock based compensation expense | $ 0 | $ 0 | $ 193,000 | ||||||
Exercisable period from grant date | 3 years | ||||||||
Issue of fully-vested shares of common stock to settle | 16,228 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Taxes | |||
Domestic | $ (10,187) | $ 34,274 | $ 52,730 |
Foreign | (8,956) | 91 | (60) |
(Loss) income from continuing operations before income taxes | (19,143) | 34,365 | 52,670 |
Equity method investment loss | 5,889 | (10,481) | (5,487) |
Total income from continuing operations before income taxes | (13,254) | $ 23,884 | $ 47,183 |
Deferred tax liabilities for income taxes on undistributed earnings | $ 0 |
Income Taxes Reconciliation (De
Income Taxes Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income Taxes | |||
U.S. federal statutory income tax rate (as a percent) | 21% | 21% | 21% |
Foreign rate differential (as a percent) | 4.90% | ||
State and local income taxes, net of federal benefit (as a percent) | 40.80% | (1.40%) | (2.10%) |
R&D and other tax credits (as a percent) | 23% | ||
R&D and other tax credits | (11.50%) | (6.80%) | |
Valuation allowance (as a percent) | (37.40%) | 3.20% | 3.40% |
Return to provision adjustments (as a percent) | (0.90%) | (0.30%) | 0.10% |
Permanent items (as a percent) | (3.30%) | 3.60% | 0.70% |
Foreign derived intangible income (as a percent) | (7.60%) | (3.90%) | |
Excess benefit of equity awards (as a percent) | 5.20% | (5.70%) | (1.50%) |
Other (as a percent) | 0.90% | 0.30% | 0.20% |
Effective income tax rate (as a percent) | 54.20% | 1.60% | 11.10% |
Current: | |||
Federal | $ (3,025,000) | $ 3,094,000 | $ 3,005,000 |
State | 165,000 | 448,000 | 390,000 |
Foreign | 279,000 | ||
Current | (2,581,000) | 3,542,000 | 3,395,000 |
Deferred: | |||
Federal | (5,764,000) | (3,247,000) | 2,063,000 |
State | 483,000 | 244,000 | 421,000 |
Foreign | (2,507,000) | (31,000) | |
Deferred | (7,788,000) | (3,003,000) | 2,453,000 |
Total income tax expense | (10,369,000) | 539,000 | $ 5,848,000 |
Deferred income tax assets: | |||
Accrued expenses | 3,399,000 | 4,422,000 | |
Stock based compensation | 1,892,000 | 2,492,000 | |
Allowances, reserves, and other | 4,455,000 | 1,482,000 | |
Outside basis difference | 89,000 | 4,617,000 | |
Unrealized loss on securities | 3,229,000 | 110,000 | |
Net operating loss and credit carry-forwards | 41,931,000 | 33,155,000 | |
Lease liability | 6,303,000 | 5,645,000 | |
Total deferred income tax assets | 61,298,000 | 51,923,000 | |
Deferred income tax liabilities: | |||
Fixed asset basis | (10,413,000) | (10,286,000) | |
Right of use assets | (5,878,000) | (5,119,000) | |
Intangible basis | (15,503,000) | (17,004,000) | |
Total deferred income tax liabilities | (31,794,000) | (32,409,000) | |
Valuation allowance | (24,840,000) | (17,453,000) | |
Net deferred tax assets | $ 4,664,000 | $ 2,061,000 |
Income Taxes Carryforward (Deta
Income Taxes Carryforward (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Tax Credit Carryforward | ||
Valuation allowance | $ 24,840,000 | $ 17,453,000 |
Increase in valuation allowance | 7,387,000 | $ 3,304,000 |
State | ||
Tax Credit Carryforward | ||
Tax credit carryforwards | 31,379,000 | |
IRS | ||
Tax Credit Carryforward | ||
Tax credit carryforwards | $ 5,875,000 |
Income Taxes Other (Details)
Income Taxes Other (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Unrecognized tax benefits | ||
Federal net operating loss carryforwards | $ 88,863,000 | |
State net operating loss carryforwards | 93,485,000 | |
Foreign net operating loss carryforwards | 64,000 | |
Operating loss not subject to expiration | 47,000 | |
Operating losses subject to expiration | 93,438,000 | |
Unrecognized tax benefits which would impact the Company's effective tax rate if recognized | 4,969,000 | |
Increase in valuation allowance | 7,387,000 | $ 3,304,000 |
Activity related to gross unrecognized tax benefits | ||
Beginning balance | 17,556,000 | 14,347,000 |
Increases related to prior year tax positions | 415,000 | 1,305,000 |
Decreases related to prior year tax positions | (239,000) | (116,000) |
Increases related to current year tax positions | 1,398,000 | 2,074,000 |
Decreases related to lapsing of statute of limitations | (1,324,000) | (54,000) |
Ending balance | 17,806,000 | 17,556,000 |
Accrued interest and penalties related to unrecognized tax positions | 302,000 | 23,000 |
Statute of limitations expiration | ||
Unrecognized tax benefits | ||
Unrecognized tax benefits which would impact the Company's effective tax rate if recognized | 17,806,000 | $ 17,556,000 |
Increase in valuation allowance | 9,956,000 | |
Estimated decrease in unrecognized tax benefits in the next twelve months | $ (3,263,000) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2022 USD ($) | |
Accumulated other comprehensive income | |
Total accumulated other comprehensive income balance as of April 30, 2021 | $ 343 |
Total accumulated other comprehensive income balance as of April 30, 2022 | (6,514) |
Available-for-Sale securities. | |
Accumulated other comprehensive income | |
Total accumulated other comprehensive income balance as of April 30, 2021 | (10) |
Unrealized losses, net of $8 of taxes | (43) |
Total accumulated other comprehensive income balance as of April 30, 2022 | (53) |
Foreign Currency Translation Adjustments | |
Accumulated other comprehensive income | |
Total accumulated other comprehensive income balance as of April 30, 2021 | 353 |
Changes in foreign currency translation adjustments | (6,471) |
Amounts reclassified to other (expense) income, net | (343) |
Total accumulated other comprehensive income balance as of April 30, 2022 | (6,461) |
Accumulated Other Comprehensive (Loss) Income | |
Accumulated other comprehensive income | |
Total accumulated other comprehensive income balance as of April 30, 2021 | 343 |
Unrealized losses, net of $8 of taxes | (43) |
Changes in foreign currency translation adjustments | (6,471) |
Amounts reclassified to other (expense) income, net | (343) |
Total accumulated other comprehensive income balance as of April 30, 2022 | $ (6,514) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Accumulated other comprehensive income | |||
Unrealized losses, tax portion | $ 8 | $ 1 | $ 14 |
Changes in Accounting Estimat_2
Changes in Accounting Estimates (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Compensation expense | $ 5,390,000 | $ 6,932,000 | $ 6,227,000 |
Adoption of ASU 2018-09 | |||
Compensation expense | 1,602,000 | ||
TMS contract | |||
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods | (1,124,000) | $ (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) | (1,403,000) | |
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods increased | $ 1,099,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Long-Term Incentive Awards | |||
Revenue | $ 43,325,000 | $ 42,426,000 | $ 60,864,000 |
Unbilled related party receivables | 2,229,000 | 544,000 | |
Board member | Consulting agreement | |||
Long-Term Incentive Awards | |||
Amount paid to related party | 36,000 | 29,000 | 59,000 |
HAPSMobile | Design and Development Agreement | |||
Long-Term Incentive Awards | |||
Maximum net value | 185,202,000 | ||
Unbilled related party receivables | 2,229,000 | 544,000 | |
SoftBank | Design and Development Agreement | |||
Long-Term Incentive Awards | |||
Maximum net value | 51,200,000 | ||
Revenue | $ 43,325,000 | $ 42,426,000 | $ 60,864,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Commitments and Contingencies | ||
Letters of credit outstanding | $ 5,968,000 | $ 5,029,000 |
Reserve for incurred cost claim audits | $ 0 | $ 0 |
Business Acquisitions - Telerob
Business Acquisitions - Telerob (Details) | 12 Months Ended | ||||||
May 03, 2021 USD ($) | May 03, 2021 EUR (€) | Apr. 30, 2022 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2021 USD ($) | May 03, 2021 EUR (€) | Apr. 30, 2020 USD ($) | |
Fair value of assets acquired: | |||||||
Goodwill | $ 334,347,000 | $ 334,347,000 | $ 314,205,000 | $ 6,340,000 | |||
Telerob. | |||||||
Business Acquisitions | |||||||
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 | |||||
Acquisition-related costs | 1,186,000,000 | ||||||
Fair value of assets acquired: | |||||||
Accounts receivable | $ 1,045,000 | ||||||
Unbilled receivable | 829,000 | ||||||
Inventories, net | 15,074,000 | ||||||
Prepaid and other current assets | 314,000 | ||||||
Property and equipment, net | 1,571,000 | ||||||
Operating lease assets | 1,508,000 | ||||||
Other assets | 494,000 | ||||||
Other intangible asset | 102,000 | ||||||
Goodwill | 20,800,000 | ||||||
Total assets acquired | 60,637,000 | ||||||
Fair value of liabilities assumed: | |||||||
Accounts payable | 1,136,000 | ||||||
Wages and related accruals | 560,000 | ||||||
Current operating lease liabilities | 361,000 | ||||||
Customer advances | 1,243,000 | ||||||
Other current liabilities | 3,310,000 | ||||||
Non-current operating lease liabilities | 1,147,000 | ||||||
Other non-current liabilities | 224,000 | ||||||
Deferred income taxes, net | 5,617,000 | ||||||
Total liabilities assumed | 13,598,000 | ||||||
Total identifiable net assets | 47,039,000 | ||||||
Fair value of consideration transferred: | |||||||
Cash consideration, net of cash acquired | 46,150,000 | ||||||
Contingent consideration | 889,000 | ||||||
Total | 47,039,000 | ||||||
Supplemental Pro Forma Information (unaudited) | |||||||
Revenue | 29,177,000 | 445,732,000 | 428,353,000 | ||||
Net income attributable to AeroVironment, Inc. | $ 12,115,000 | $ 2,334,000 | $ 17,345,000 | ||||
Technology | Telerob. | |||||||
Fair value of assets acquired: | |||||||
Intangible assets | 11,500,000 | ||||||
Backlog. | Telerob. | |||||||
Fair value of assets acquired: | |||||||
Intangible assets | 2,400,000 | ||||||
Customer relationships | Telerob. | |||||||
Fair value of assets acquired: | |||||||
Intangible assets | 5,000,000 | ||||||
Business Combination, Specific Revenue Targets Achieved In First Earnout Year | Telerob. | |||||||
Business Acquisitions | |||||||
Contingent consideration paid | $ 2,424,000 | € 2,000,000 | |||||
Period to obtain target | 12 months | 12 months | |||||
Business Combination, Specific Revenue Targets Achieved In Second Earnout Year | Telerob. | |||||||
Business Acquisitions | |||||||
Contingent consideration paid | $ 2,424,000 | € 2,000,000 | |||||
Period to obtain target | 12 months | 12 months | |||||
Business Combination, Specific Awards Or Orders From US Military Are Achieved Prior To 36 Month Post Closing Period [Member] | Telerob. | |||||||
Business Acquisitions | |||||||
Contingent consideration paid | $ 2,424,000 | € 2,000,000 | |||||
Period to obtain target | 36 months | 36 months |
Business Acquisitions - Arcturu
Business Acquisitions - Arcturus (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |||
Feb. 19, 2021 | Apr. 30, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2022 | |
Fair value of assets acquired: | |||||
Goodwill | $ 314,205,000 | $ 314,205,000 | $ 6,340,000 | $ 334,347,000 | |
Arcturus UAV Inc. | |||||
Business Acquisitions | |||||
Total | $ 422,602,000 | ||||
Cash on hand | 150,218,000 | ||||
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 | 2,709,000 | ||||
Property and equipment, net | 38,739,000 | ||||
Operating lease assets | 11,429,000 | ||||
Other assets | 136,000 | ||||
Goodwill | 290,006,000 | ||||
Total assets acquired | 458,146,000 | ||||
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 | 9,562,000 | ||||
Operating lease liabilities | 12,297,000 | ||||
Other non-current liabilities | 1,190,000 | ||||
Deferred income taxes, net | 5,869,000 | ||||
Total liabilities assumed | 35,519,000 | ||||
Total identifiable net assets | 422,627,000 | ||||
Fair value of consideration transferred: | |||||
Cash consideration, net of cash acquired | 350,243,000 | ||||
Contingent consideration | 72,384,000 | ||||
Total paid | 422,627,000 | ||||
Supplemental Pro Forma Information (unaudited) | |||||
Revenue | 478,579,000 | 454,769,000 | |||
Net income attributable to AeroVironment, Inc. | $ 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 Acquisitions | |||||
Amount held in escrow | 6,500,000 | 6,500,000 | |||
Amount of post-closing adjustments | 509,000 | ||||
Arcturus UAV Inc. | Indemnification Escrow | |||||
Business Acquisitions | |||||
Amount held in escrow | 1,822,500 | $ 1,822,500 | |||
Term loans | Arcturus UAV Inc. | |||||
Business Acquisitions | |||||
Amount of loan | 200,000,000 | ||||
Fair value of consideration transferred: | |||||
Contingent consideration | $ 50,000,000 |
Business Acquisitions - ISG (De
Business Acquisitions - ISG (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |||
Feb. 23, 2021 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Business Acquisitions | |||||
Amortization expense | $ 26,558,000 | $ 6,469,000 | $ 2,822,000 | ||
Goodwill | $ 314,205,000 | 334,347,000 | 314,205,000 | 6,340,000 | |
Intelligent Systems Group | |||||
Business Acquisitions | |||||
Period of goodwill deduction | 15 years | ||||
Amortization expense | 474,000 | ||||
Total | $ 29,700,000 | ||||
Contingent consideration paid | $ 6,000,000 | 6,000,000 | |||
Additional cash consideration paid | $ 2,000,000 | ||||
Number of years to reach revenue targets | 3 years | ||||
Revenue | $ 1,724,000 | ||||
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 paid | 35,371,000 | ||||
Supplemental Pro Forma Information (unaudited) | |||||
Revenue | 406,444,000 | 379,627,000 | |||
Net income attributable to AeroVironment, Inc. | $ 23,787,000 | $ 39,025,000 | |||
Intelligent Systems Group | Technology | |||||
Business Acquisitions | |||||
Intangible assets | 11,400,000 | ||||
Intelligent Systems Group | Customer relationships | |||||
Business Acquisitions | |||||
Intangible assets | $ 4,500,000 |
Business Acquisitions - Pulse (
Business Acquisitions - Pulse (Details) | 11 Months Ended | 12 Months Ended | |||||
Feb. 26, 2020 USD ($) | Jun. 10, 2019 USD ($) item | Apr. 30, 2020 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2021 USD ($) | Apr. 30, 2020 USD ($) | Apr. 30, 2019 USD ($) | |
Business Acquisitions | |||||||
Holdback and retention payments | $ 7,814,000 | $ 1,492,000 | |||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | |||||||
Goodwill | $ 6,340,000 | 334,347,000 | 314,205,000 | $ 6,340,000 | |||
Supplemental Pro forma Information | |||||||
Amortization of Intangible Assets | $ 26,558,000 | 6,469,000 | 2,822,000 | ||||
Pulse Aerospace, LLC | |||||||
Business Acquisitions | |||||||
Ownership interest acquired | 100% | ||||||
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 | ||||||
Contingent consideration paid | $ 1,703,000 | ||||||
Period of goodwill deduction | 15 years | ||||||
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 paid | $ 21,880,000 | ||||||
Supplemental Pro forma Information | |||||||
Revenue | 6,607,000 | 367,523,000 | $ 316,878,000 | ||||
Net income attributable to AeroVironment, Inc. | 41,481,000 | $ 43,204,000 | |||||
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 | Technology | |||||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | |||||||
Intangible assets | $ 14,950,000 | ||||||
Pulse Aerospace, LLC | In-process research and development | |||||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | |||||||
Intangible assets | 550,000 | ||||||
Pulse Aerospace, LLC | Non-compete agreements | |||||||
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date | |||||||
Intangible assets | 320,000 | ||||||
Pulse Aerospace, LLC | Minimum | |||||||
Business Acquisitions | |||||||
Each milestone achievement | 0 | ||||||
Pulse Aerospace, LLC | Maximum | |||||||
Business Acquisitions | |||||||
Each milestone achievement | $ 2,500,000 |
Pension (Details)
Pension (Details) - Pension Plan | 12 Months Ended |
Apr. 30, 2022 | |
Pension | |
Discount rate assumption | 1.70% |
Percentage of expected return on plan assets | 2.90% |
Pension increase for in-payment benefits | 1.50% |
Pension - Projected benefit obl
Pension - Projected benefit obligation and fair value of plan assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2022 | May 03, 2021 | |
Pension | ||
Defined Benefit Plan, Funding Status [Extensible List] | us-gaap:UnderfundedPlanMember | |
Pension Plan | ||
Pension | ||
Projected benefit obligation | $ (3,322) | $ (4,126) |
Fair value of plan assets | 3,395 | $ 3,951 |
Funded status of the plan | $ 73 |
Pension - Change in projected b
Pension - Change in projected benefit obligation (Details) - Pension Plan $ in Thousands | 12 Months Ended |
Apr. 30, 2022 USD ($) | |
Pension | |
Pension benefit obligation balance as of May 3, 2021 | $ (4,126) |
Interest cost | (39) |
Actuarial gain | 179 |
Benefits paid | 176 |
Foreign currency exchange rate changes | 488 |
Pension benefit obligation balance as of April 30, 2022 | $ (3,322) |
Pension - Change in plan assets
Pension - Change in plan assets (Details) - Pension Plan $ in Thousands | 12 Months Ended |
Apr. 30, 2022 USD ($) | |
Pension | |
Fair value of plan assets as of May 3, 2021 | $ 3,951 |
Expected return on plan assets | 108 |
Benefits paid | (176) |
Foreign currency exchange rate changes | (488) |
Fair value of plan assets as of April 30, 2022 | $ 3,395 |
Pension - Expected benefits pai
Pension - Expected benefits paid (Details) $ in Thousands | Apr. 30, 2022 USD ($) |
Pension | |
2023 | $ 161 |
2024 | 164 |
2025 | 165 |
2026 | 165 |
2027 | 166 |
2028-2032 | 828 |
Total expected benefit payments | $ 1,649 |
Pension - Net benefit income (D
Pension - Net benefit income (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2022 USD ($) | |
Pension | |
Expected return on plan assets | $ (108) |
Interest cost | (39) |
Actuarial gain | (179) |
Net periodic benefit cost | $ 248 |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Gross margin | $ 141,236 | $ 164,558 | $ 153,102 |
Income (loss) from continuing operations | (9,887) | 43,313 | 47,135 |
Total assets | 914,200 | 928,566 | |
Product segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 445,732 | 394,912 | 367,296 |
Gross margin | 141,236 | 164,558 | 153,102 |
Income (loss) from continuing operations | (9,887) | 43,313 | 47,135 |
Acquisition-related expenses | 4,854 | 7,981 | 1,119 |
Amortization of acquired intangible assets and other purchase accounting adjustments | 36,707 | 7,458 | 2,467 |
Adjusted income (loss) from operations | 31,674 | 58,752 | 50,721 |
Total assets | 914,200 | 928,566 | |
Small UAS | Product segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 178,201 | 235,854 | 225,888 |
Gross margin | 83,759 | 119,062 | 117,538 |
Income (loss) from continuing operations | 28,980 | 58,194 | 64,680 |
Acquisition-related expenses | 502 | 3,026 | 537 |
Amortization of acquired intangible assets and other purchase accounting adjustments | 2,828 | 2,649 | 2,467 |
Adjusted income (loss) from operations | 32,310 | 63,869 | 67,684 |
Total assets | 110,286 | 115,156 | |
TMS | Product segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 76,415 | 87,268 | 63,781 |
Gross margin | 24,486 | 26,675 | 18,082 |
Income (loss) from continuing operations | (3,120) | (3,131) | (15,822) |
Acquisition-related expenses | 297 | 1,661 | 336 |
Adjusted income (loss) from operations | (2,823) | (1,470) | (15,486) |
Total assets | 91,862 | 72,073 | |
MUAS | Product segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 93,156 | 15,837 | |
Gross margin | 6,155 | 2,965 | |
Income (loss) from continuing operations | (27,715) | (1,869) | |
Acquisition-related expenses | 1,994 | 1,682 | |
Amortization of acquired intangible assets and other purchase accounting adjustments | 22,170 | 4,356 | |
Adjusted income (loss) from operations | (3,551) | 4,169 | |
Total assets | 388,058 | 400,901 | |
HAPSMobile | Product segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 43,325 | 42,426 | 60,864 |
Gross margin | 15,533 | 13,038 | 17,436 |
Income (loss) from continuing operations | 8,056 | 268 | 9,744 |
Acquisition-related expenses | 123 | 593 | 134 |
Adjusted income (loss) from operations | 8,179 | 861 | 9,878 |
Total assets | 8,148 | 598 | |
All other | Product segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 54,635 | 13,527 | 16,763 |
Gross margin | 11,303 | 2,818 | 46 |
Income (loss) from continuing operations | (16,088) | (10,149) | (11,467) |
Acquisition-related expenses | 1,938 | 1,019 | 112 |
Amortization of acquired intangible assets and other purchase accounting adjustments | 11,709 | 453 | |
Adjusted income (loss) from operations | (2,441) | (8,677) | $ (11,355) |
Total assets | 86,617 | 37,677 | |
Corporate | Product segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 229,229 | $ 302,161 |
Geographic Information (Details
Geographic Information (Details) - Non-U.S. customers - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Product Information | |||
Deploys in-service assets | $ 36,047,000 | ||
Arcturus UAV Inc. | |||
Product Information | |||
Deploys in-service assets | 48,496,000 | ||
Telerob | |||
Product Information | |||
Deploys in-service assets | $ 1,601,000 | ||
Customer concentration | Sales Revenue | |||
Product Information | |||
Percentage of revenue | 41% | 39% | 45% |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Allowance for doubtful accounts | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | $ 595 | $ 1,190 | $ 1,041 |
Balance Acquired from Acquisition | 5 | ||
Charged to Cost and Expenses | 52 | 82 | 219 |
Deductions | (60) | (677) | (70) |
Balance at End of Period | 592 | 595 | 1,190 |
Warranty reserve | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 2,341 | 2,015 | 1,704 |
Balance Acquired from Acquisition | 256 | ||
Charged to Cost and Expenses | 1,089 | 1,650 | 2,069 |
Deductions | (1,496) | (1,324) | (1,758) |
Balance at End of Period | 2,190 | 2,341 | 2,015 |
Reserve for inventory excess and obsolescence | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 10,289 | 10,232 | 7,824 |
Balance Acquired from Acquisition | 1,561 | 1,415 | |
Charged to Cost and Expenses | 2,271 | 1,178 | 5,377 |
Deductions | (1,787) | (2,536) | (2,969) |
Balance at End of Period | 12,334 | 10,289 | 10,232 |
Reserve for self-insured medical claims | |||
Movement in valuation and qualifying accounts and reserves | |||
Balance at Beginning of Period | 1,293 | 753 | 944 |
Charged to Cost and Expenses | 14,724 | 11,329 | 13,031 |
Deductions | (14,364) | (10,789) | (13,222) |
Balance at End of Period | $ 1,653 | $ 1,293 | $ 753 |