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Innovative Solutions And Support (ISSC)

Filed: 10 Feb 21, 7:00pm

 

Exhibit 99.1 

 

 

 

Innovative Solutions & Support, Inc. Announces First Quarter Fiscal 2021 Financial Results

 

Exton, PA. – February 10, 2021– Innovative Solutions & Support, Inc. (“IS&S” or the “Company”) (NASDAQ: ISSC) today announced its financial results for the first quarter of fiscal 2021, ended December 31, 2020.

 

For the first quarter of fiscal 2021, the Company reported net sales of $4.9 million, up from net sales of $4.5 million in the first quarter a year ago. The Company reported operating income of $232,000 and net income of $240,000, or $0.01 per share, in the first quarter of fiscal 2021, compared to operating income of $232,000 buoyed by interest income to a net income of $328,000, or $0.02 per share, in the first quarter of fiscal 2020.

 

Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, “The results for the first quarter of fiscal 2021 reflect revenue growth, and positive cash flow compared to the year ago quarter. I am very pleased with the continued success we are experiencing growing our portfolio of production contracts for both retrofit and new production aircraft in spite of the Pandemic’s impact on our anticipated exponential market demand. However, continued demand is providing a solid base of recurring revenue on which to build. We are also experiencing healthy demand for our Boeing 757 and 767 Flat Panel Upgrade system and Eclipse software upgrade. Innovative Solutions and Support remains focused on creating value for our shareholders through the continued development of the industry’s leading price-for-performance technology in the Commercial Air Transport, Military and General Aviation markets.”

 

 

 

 

“We’ve achieved these results while remaining committed to implementing precautions against COVID-19 that seek to ensure the safety of our employees, suppliers and customers. Reflecting our continued confidence, in December we declared a special, $0.50 per share dividend to provide tangible returns to our shareholders. Together with the $0.65 dividend declared in September, over the last six months of calendar 2020 we returned nearly $20 million of cash to our shareholders. Even after these distributions, we remain in excellent financial condition with significant liquidity and no debt.”

 

At December 31, 2020, the Company had $5.6 million of cash on hand. Net cash flows from operating activities were $1.7 million in the quarter.

 

New orders in the first quarter of fiscal 2021 were $5.4 million, and backlog as of December 31, 2020, was $4.2 million. Backlog excludes potential future sole-source production orders from the Pilatus PC-24, the KC-46A and the Textron King Air 360 and King Air 260 ThrustSense® Autothrottle programs, all of which the Company expects to remain in production for a decade. The Company expects that these contracts will add to production sales already in backlog.

 

 

 

 

Conference Call

 

The Company will be hosting a conference call on Thursday, February 11, 2021, at 10:00 a.m. ET to discuss these results, its business outlook and product development. Please use the following dial in number to register your name and company affiliation for the conference call: 844-739-3798. No conference ID is required. The call will also be carried live on the Investor Relations page of the Company web site at www.innovative-ss.com.

 

About Innovative Solutions & Support, Inc.

 

Headquartered in Exton, Pa., Innovative Solutions & Support, Inc. (www.innovative-ss.com) is a systems integrator that designs and manufactures flight guidance and cockpit display systems for Original Equipment Manufacturers (OEMs) and retrofit applications. The company supplies integrated Flight Management Systems (FMS), Autothrottle Systems and advanced GPS receivers for precision low carbon footprint navigation.

 

 

 

 

Certain matters contained herein that are not descriptions of historical facts are “forward-looking” (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

 

 

Innovative Solutions and Support, Inc.

Consolidated Balance Sheets

 

  December 31,  September 30, 
  2020  2020 
  (unaudited)    
ASSETS        
Current assets        
Cash and cash equivalents $5,608,255  $12,603,967 
 Restricted cash  -  $11,180,900 
Accounts receivable  2,544,529   4,369,111 
Inventories  4,180,743   4,291,335 
Prepaid expenses and other current assets  850,861   675,109 
Total current assets  13,184,388   33,120,422 
         
 Property and equipment, net  8,155,667   8,175,872 
 Other assets  208,093   249,543 
         
Total assets $21,548,148  $41,545,837 
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
Current liabilities        
Accounts payable $727,593  $790,892 
Dividends payable  -  $11,180,900 
Accrued expenses  1,121,818   1,361,960 
Contract liability  121,473   313,365 
Total current liabilities  1,970,884   13,647,117 
         
Non-current deferred income taxes  129,689   129,689 
Total liabilities  2,100,573   13,776,806 
         
Commitments and contingencies        
         
Shareholders' equity        
         
Preferred stock, 10,000,000 shares authorized, $.001 par value, of which 200,000 shares are authorized as Class A Convertible stock.  No shares  issued and outstanding at December 31, 2019 and September 30, 2019 $-  $- 
         
Common stock, $.001 par value:  75,000,000 shares authorized, 19,310,835 issued at December 31, 2020 and September 30, 2020  19,311   19,311 
         
Additional paid-in capital  51,504,378   51,458,787 
(Accumulated deficit)  (10,707,577)  (2,340,530)
Treasury stock, at cost, 2,096,451 shares at December 31, 2020 and  September 30, 2020  (21,368,537)  (21,368,537)
         
Total shareholders' equity  19,447,575   27,769,031 
Total liabilities and shareholders' equity $21,548,148  $41,545,837 

 

 

 

 

Innovative Solutions and Support, Inc.

Consolidated Statements of Operations

(unaudited)

 

  Three months ended 
  December 31, 
  2020  2019 
Net sales $4,869,652  $4,511,428 
         
Cost of sales  2,303,829   1,909,781 
Gross profit  2,565,823   2,601,647 
         
Operating expenses:        
Research and development  600,298   666,615 
Selling, general and administrative  1,733,154   1,703,274 
Total operating expenses  2,333,452   2,369,889 
         
Operating income  232,371   231,758 
         
Interest income  879   78,870 
Other income  16,392   17,280 
Income before income taxes  249,642   327,908 
         
Income tax expense  9,497   - 
         
Net income $240,145  $327,908 
         
Net income per common share:        
Basic $0.01  $0.02 
Diluted $0.01  $0.02 
         
Weighted average shares outstanding:        
Basic  17,214,384   16,909,036 
Diluted  17,216,287   17,081,578