AgEagle Announces Second Quarter 2022 Financial Results August 16 2022 - 08:30AM GlobeNewswire Inc. Alert Print Share On Facebook
AgEagle Aerial Systems Inc. (NYSE American: UAVS) (“AgEagle” or the “Company”), an industry-leading provider of full-stack drone, sensor and software solutions for commercial and government/defense use, today announced its financial results for the three and six months ended June 30, 2022. Financial Highlights for the Comparable Three-Month Periods Ended June 30, 2022 and June 30, 2021
Revenues increased 173% to $5.29 million from $1.94 million. As a result of the senseFly acquisition, which occurred in the fourth quarter of 2021, the Company recorded incremental revenue for the eBee™ fixed wing drones of $3.04 million that were not included in the prior year financials Continued strong demand for the Company’s new Altum-PT™ and RedEdge-P™ multispectral sensors, which were introduced to the market in the fall of 2021, resulted in a 23% jump in sales revenues of sensors to $2.10 million from $1.71 million. The notable increase in total revenues was offset by the decline of software subscription sales for AgEagle’s HempOverview and Ground Control solutions, which decreased to $158,000 from $229,000. The Company’s loss from operations totaled $5.39 million compared to $4.82 million. The increase was primarily attributable to a decrease in gross profit margins due to supply chain constraints and higher operating costs as a result of inclusion of a full quarter’s expenses for the 2021 business acquisitions, offset by the absence of transactional costs incurred for these acquisitions. After factoring net non-cash expenses and income including cumulative foreign currency translations adjustments, total comprehensive net loss rose to $5.47 million, or $0.07 loss per share, compared to $4.68 million, or $0.07 loss per share. Financial Highlights for the Comparable Six-Month Periods Ended June 30, 2022 and June 30, 2021
Six-month revenues totaled $9.13 million, up 151% from $3.64 million. As a result of the senseFly acquisition, which occurred in the fourth quarter of 2021, the Company recorded incremental revenue for the eBee™ fixed wing drones of $5.76 million that were not included in the prior year financials Sensor sales were $3.03 million compared to $3.39 million. The decrease was attributable to supply chain issues affecting delivery of Altum-PT and RedEdge-P sensors in the first and second quarters of this year. As of June 30, 2022, the order backlog for these sensors stood at approximately $1 million, which is included in contract liabilities on the Company’s consolidated balance sheet. We continue to ship orders to clear a large portion of our backlog while continuing to expand our sales pipeline due to on-going demand for our sensors. Software subscription sales climbed 30% to $328,000 from $253,000, primarily resulting from the increased sales in the first quarter of 2022. Due to higher general and administrative, R&D and sales and marketing expenses associated with execution of AgEagle’s acquisition strategy in 2021, loss from operations increased to $12.87 million from $7.78 million. The comprehensive net loss totaled $13.04 million, or $0.17 loss per share, compared to a comprehensive net loss of $7.61 million, or $0.12 loss per share, for the comparable years’ six-month reporting periods. As of June 30, 2022, AgEagle’s cash position was $13.51 million and its total stockholders’ equity was $83.60 million. This compared to cash of $14.59 million and stockholders’ equity of $76.58 million as of December 31, 2021. During the six months ended June 30, 2022, the Company raised net proceeds of $4.58 million through its At-The-Market Offering with co-agents Stifel Nicholas & Company and Raymond James & Associates. In addition, AgEagle completed a registered direct offering with an existing institutional shareholder, raising an additional $9.92 million in net proceeds. For more detailed information on the Company’s financial performance for the three and six months ended June 30, 2022 and 2021, please refer to the 10-Q filed with the U.S. Securities and Exchange Commission and accessible online via www.sec.gov or on AgEagle’s website at https://ageagle.com/investors/#investors-sec.
Nicole Fernandez-McGovern, AgEagle Chief Financial Officer and Executive Vice President of Operations, stated, “We are very pleased with our financial results for the first half of 2022, reflecting strong revenue growth from our combined 2021 acquisition activities and organic growth initiatives. Robust demand for our autonomous robotics solutions, along with key business improvements implemented this year, are contributing to our efficient management of ubiquitous inflationary pressure, supply chain constraints and other macroeconomic headwinds. We continue to be thoughtful and purposeful about how we are growing our business, while simultaneously managing our investments to capture long-term value for our shareholders.”
Barrett Mooney, Chairman and CEO of AgEagle, added, “We posted another solid quarter for Q2, building on our momentum from the start of the year. Looking forward, we expect another strong quarter in Q3, wherein we remain focused on clearing backlog for our sensors, pursuing large sales opportunities for our eBees and sensors and pressing hard on our new innovations program with a goal of introducing next generation products to market later this year. We remain committed to our goal of becoming cash flow breakeven, while continuing to prudently invest in our products and capabilities to drive profitable growth opportunities on a global scale. ”
Second Quarter 2022 Corporate Update Webcast
This afternoon beginning at 4:30 pm Eastern Time, AgEagle’s leadership will host a corporate update webcast that will be broadcast live and available for replay on https://www.webcaster4.com/Webcast/Page/2160/46258. If any difficulty is encountered while connecting to the webcast, please contact Gateway Group at 949-574-3860.
About AgEagle Aerial Systems Inc.
AgEagle and its wholly-owned subsidiaries are actively engaged in designing and delivering best-in-class drones, sensors and software that solve important problems for our customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, AgEagle is a leading provider of full stack drone solutions for customers worldwide in the energy, construction, agriculture, and government verticals. For additional information, please visit our websites at www.ageagle.com.
Forward-Looking Statements This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition, and stock price. Factors that could cause actual results to differ materially from management’s current expectations include those risks and uncertainties relating to our competitive position, the industry environment, potential growth opportunities, and the effects of regulation and events outside of our control, such as natural disasters, wars, or health epidemics. We expressly disclaim any oblig
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