Innovative Solutions & Support, Inc. (“IS&S” or the “Company”) (NASDAQ: ISSC)
today announced its financial results for the second quarter of fiscal
2019, ended March 31, 2019.
For the second quarter of fiscal 2019 the Company reported net sales of
$4.2 million compared to net sales of $3.7 million in the second quarter
a year ago. The Company reported net income of $202,000, or $0.01 per
share, compared to a net loss of $1.3 million, or ($.08) per share, in
the second quarter of fiscal 2018.
Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said,
“Revenues in the second quarter were up sequentially from the first
quarter, reflecting steady improvement in both new orders and production
activity.”
At March 31, 2019, the Company had $21.2 million of cash on hand, up
nearly a million dollars sequentially over the past three months from
$20.3 million at December 31, 2018.
New orders in the second quarter of fiscal 2019 were $5.3 million, and
backlog as of March 31, 2019, was $5.4 million, also up sequentially
from $4.3 million at December 31, 2018. Backlog excludes potential
future sole-source production orders from the Pilatus PC-24 and the
KC-46A programs both of which are currently in production. The Company
expects both programs to remain in production for multiple years and
that these contracts will add to production sales already in backlog.
Six Months Results
Total sales for the six months ended March 31, 2019, were $8.2 million
compared to $6.8 million for the six months ended March 31, 2018. For
the six months ended March 31, 2019, the company reported net income of
$342,000, or $0.02 per share, a significant improvement from the net
loss $2.2 million, or ($0.13) per share for the first half of fiscal
2018.
Conference Call
The Company will be hosting a conference call on Thursday, May 9, 2019,
at 10:00 a.m. ET to discuss these results and the Company’s business
outlook and product development. Please use the following dial in number
to register your name and company affiliation for the conference call:
877-270-2148 and ask to be joined into the Innovative Solutions &
Support call. 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) 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 | ||||||||||
| March 31, | September 30, | |||||||||
| 2019 | 2018 | |||||||||
| (unaudited) | ||||||||||
|
ASSETS |
||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 21,241,196 | $ | 20,390,713 | ||||||
| Accounts receivable | 2,620,448 | 3,449,893 | ||||||||
| Inventories | 4,570,812 | 4,280,108 | ||||||||
| Prepaid expenses and other current assets | 561,791 | 544,234 | ||||||||
| Total current assets | 28,994,247 | 28,664,948 | ||||||||
| Property and equipment, net | 8,640,532 | 8,786,737 | ||||||||
| Other assets | 165,547 | 181,993 | ||||||||
| Total assets | $ | 37,800,326 | $ | 37,633,678 | ||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 985,935 | $ | 1,529,792 | ||||||
| Accrued expenses | 1,459,089 | 1,463,021 | ||||||||
| Contract liability | 525,899 | 356,801 | ||||||||
| Total current liabilities | 2,970,923 | 3,349,614 | ||||||||
| Non-current deferred income taxes | 129,627 | 129,594 | ||||||||
| Total liabilities | 3,100,550 | 3,479,208 | ||||||||
| Commitments and contingencies (See Note 6) | ||||||||||
| Shareholders’ equity | ||||||||||
|
Preferred stock, 10,000,000 shares authorized, $.001 par value, of |
$ | – | $ | – | ||||||
|
Common stock, $.001 par value: 75,000,000 shares authorized, |
19,006 | 18,937 | ||||||||
| Additional paid-in capital | 51,987,096 | 51,783,779 | ||||||||
| Retained earnings | 4,062,211 | 3,720,291 | ||||||||
|
Treasury stock, at cost, 2,096,451 shares at March 31, 2019 and |
(21,368,537 | ) | (21,368,537 | ) | ||||||
| Total shareholders’ equity | 34,699,776 | 34,154,470 | ||||||||
| Total liabilities and shareholders’ equity | $ | 37,800,326 | $ | 37,633,678 | ||||||
| Innovative Solutions and Support, Inc. | ||||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||
| March 31, | March 31, | |||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||||
| Net Sales | 4,203,127 | 3,727,204 | 8,180,777 | 6,815,188 | ||||||||||||||
| Cost of sales | 1,856,921 | 2,082,347 | 3,668,768 | 3,675,616 | ||||||||||||||
| Gross profit | 2,346,206 | 1,644,857 | 4,512,009 | 3,139,572 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 648,482 | 1,031,622 | 1,244,854 | 1,955,343 | ||||||||||||||
| Selling, general and administrative | 1,524,657 | 1,756,746 | 2,998,073 | 3,379,301 | ||||||||||||||
| Total operating expenses | 2,173,139 | 2,788,368 | 4,242,927 | 5,334,644 | ||||||||||||||
| Operating (loss) income | 173,067 | (1,143,511 | ) | 269,082 | (2,195,072 | ) | ||||||||||||
| Interest income | 26,480 | 11,681 | 48,032 | 21,305 | ||||||||||||||
| Other income | 10,746 | 15,664 | 32,600 | 37,096 | ||||||||||||||
| (Loss) income before income taxes | 210,293 | (1,116,166 | ) | 349,714 | (2,136,671 | ) | ||||||||||||
| Income tax expense | 7,794 | 200,705 | 7,794 | 61,819 | ||||||||||||||
| Net (loss) income | $ | 202,499 | $ | (1,316,871 | ) | $ | 341,920 | $ | (2,198,490 | ) | ||||||||
| Net loss per common share: | ||||||||||||||||||
| Basic | $ | 0.01 | $ | (0.08 | ) | $ | 0.02 | $ | (0.13 | ) | ||||||||
| Diluted | $ | 0.01 | $ | (0.08 | ) | $ | 0.02 | $ | (0.13 | ) | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 16,860,568 | 16,800,244 | 16,850,584 | 16,791,687 | ||||||||||||||
| Diluted | 16,875,720 | 16,800,244 | 16,858,160 | 16,791,687 | ||||||||||||||
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