Innovative Solutions & Support, Inc. Announces First Quarter Fiscal 2020 Financial Results

EXTON, Pa.--(BUSINESS WIRE)--Innovative Solutions & Support, Inc. (“IS&S” or the “Company”) (NASDAQ: ISSC) today announced its financial results for the first quarter of fiscal 2020 ended December 31, 2019.


For the first quarter of fiscal 2020, the Company reported net sales of $4.5 million compared to net sales of $4.0 million in the first quarter a year ago. The Company reported net income of $328,000, or $0.02 per share, in the first quarter, compared to net income of $139,000, or $0.01 per share, in the first quarter of fiscal 2019.

Other notable recent accomplishments include:

  • The signing of a multi-year agreement with an aircraft manufacturer to supply the recently certified ThrustSense® auto-throttle as standard equipment on new aircraft production.
  • The Federal Aviation Administration (FAA) awarded a first-of-its-kind Supplemental Type Certificate (STC) for protection against one-engine-inoperative (OEI) catastrophic loss-of-control accidents.

Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, “The results for the first quarter of fiscal 2020 continue to reflect steady improvement in our financial performance as well as success qualifying new products and winning new orders. Shahram Askarpour and I will be available for questions after the formal portion of the earnings call is concluded.”

At December 31, 2019, the Company had $22.2 million of cash on hand, little changed from fiscal year end September 30, 2019.

New orders in the first quarter of fiscal 2020 were $4.9 million and backlog as of December 31, 2019 was $6.3 million, a 47% increase from backlog of $4.3 million a year ago. Backlog excludes potential future sole-source production orders from the Pilatus PC-24, and the KC-46A programs, both 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 6, 2020 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: 877-270-2148. No conference ID is required. The call will also be carried live on the Investor Relations page of the Company website 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), auto-throttle 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,

 

2019

 

 

2019

 

(unaudited)
ASSETS
Current assets
Cash and cash equivalents

$

22,158,756

 

$

22,416,830

 

Accounts receivable, net

 

2,976,749

 

 

2,348,537

 

Contract asset

 

-

 

 

80,182

 

Inventories

 

4,672,463

 

 

4,470,694

 

Prepaid expenses and other current assets

 

686,614

 

 

642,049

 

 
Total current assets

 

30,494,582

 

 

29,958,292

 

 
Property and equipment, net

 

8,365,477

 

 

8,444,692

 

Other assets

 

255,226

 

 

154,041

 

 
Total assets

$

39,115,285

 

$

38,557,025

 

 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
Current liabilities
Accounts payable

$

977,636

 

$

1,079,073

 

Accrued expenses

 

1,414,045

 

 

1,110,918

 

Contract liability

 

33,586

 

 

29,231

 

 
Total current liabilities

 

2,425,267

 

 

2,219,222

 

 
Non-current deferred income taxes

 

129,651

 

 

129,651

 

Other liabilities

 

24,307

 

 

-

 

Total liabilities

 

2,579,225

 

 

2,348,873

 

 
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, 19,005,487 issued at December 31, 2019 and September 30, 2019 19,006 19,006
 
Additional paid-in capital

 

51,987,096

 

 

51,987,096

 

Retained earnings

 

5,898,495

 

 

5,570,587

 

Treasury stock, at cost, 2,096,451 shares at December 31, 2019 and September 30, 2019 (21,368,537 ) (21,368,537 )
 
Total shareholders' equity

 

36,536,060

 

 

36,208,152

 

 
Total liabilities and shareholders' equity

$

39,115,285

 

$

38,557,025

 

Innovative Solutions and Support, Inc.
Consolidated Statements of Operations
(unaudited)
 
Three months ended
December 31,

2019

2018

 
Net sales

$

4,511,428

$

3,977,650

 
Cost of sales

 

1,909,781

 

1,811,847

 
Gross profit

 

2,601,647

 

2,165,803

 
Operating expenses:
Research and development

 

666,615

 

596,372

Selling, general and administrative

 

1,703,274

 

1,473,416

Total operating expenses

 

2,369,889

 

2,069,788

 
Operating income

 

231,758

 

96,015

 
Interest income

 

78,870

 

21,552

Other income

 

17,280

 

21,854

Income before income taxes

 

327,908

 

139,421

 
Income tax expense

 

-

 

-

 
Net income

$

327,908

$

139,421

 
Net income per common share:
Basic

$

0.02

$

0.01

Diluted

$

0.02

$

0.01

 
Weighted average shares outstanding:
Basic

 

16,909,036

 

16,840,599

Diluted

 

17,081,578

 

16,840,599

 


Contacts

Relland Winand, Chief Financial Officer
Innovative Solutions & Support, Inc.
610-646-0350