- Total Revenues Climb 172% and 158% for the Three and Nine-Month Reporting Periods, Respectively
- Gain on Extinguishment of $6.5 Million in Debt Results in Net Income of $1.7 million for Third Quarter 2022 - Up from Net Loss of $3.8 Million for Third Quarter of 2021
WICHITA, KS / ACCESSWIRE / November 15, 2022 / AgEagle Aerial Systems Inc. (NYSE American:UAVS) ("AgEagle" or the "Company"), an industry-leading provider of full stack flight hardware, sensors and software for commercial and government/defense use, today announced its financial results for the three and nine months ended September 30, 2022.
Nicole Fernandez-McGovern, AgEagle's CFO and EVP of Operations, stated, "Overall, we are very pleased with our strong third quarter results, which reflected robust sales growth from our three primary product lines - drones, sensors and software. Meeting global demand for AgEagle's best-in-class drone solutions from both the commercial and government/defense industries, perpetuating our worldwide regulatory initiatives and successfully implementing strategic cost-reduction initiatives across our enterprise, have and will continue to be strategic priorities for our Company moving forward. We've made material progress on these fronts in 2022 and expect our efforts will continue to yield even stronger financial performance in the quarters ahead of us."
Financial Highlights for the Comparable Three Months Ended September 30, 2022 and 2021
- Revenues increased 172% to $5.5 million from $2.0 million.
- Sales of the Company's line of eBee™ fixed wing drones totaled $2.1 million, which compared to $0 in the prior year's comparable three-month period due to the timing of the acquisition of senseFly, which occurred in October 2021.
- Revenue growth was also positively impacted by continued strong demand for AgEagle's Altum-PT™ and RedEdge-P™ multispectral sensors, which resulted in total sensor sales rising 71% to $3.3 million from $1.9 million.
- SaaS subscription sales for the Company's Measure Ground Control and HempOverview™ software solutions also increased, rising 36% to $153,000 from $112,000.
- Loss from operations totaled $5.2 million compared to $3.8 million due to higher general and administrative expenses and sales and marketing costs associated with the acquisition of senseFly, coupled with higher research and development costs stemming from the Company's product innovation initiatives.
- During the three months ended September 30, 2022, AgEagle satisfied in full all payment obligations for its 2021 acquisitions of MicaSense, senseFly, SA and senseFly, Inc. at a 50% discount to the original holdback amounts associated with the acquisitions. As a result, the Company realized a gain on extinguishment of debt of $6.5 million, which helped drive a significant increase in net income, rising to $1.7 million, compared to a net loss of $3.8 million reported for the same three months in 2021.
Financial Highlights for the Comparable Nine Months Ended September 30, 2022 and 2021
- Revenues rose 158% to $14.6 million from $5.7 million.
- The increase was largely attributable to the contribution of $7.9 million in sales of eBee drones during the first nine months of 2022, which compared to no sales in the prior year's comparable nine-month period due to the acquisition of senseFly in the fourth quarter of 2021.
- Sensor sales totaled $6.3 million, a 19% increase over $5.3 million.
- Higher demand for AgEagle's Measure Ground Control software in 2022 yielded a 33% increase in SaaS subscription sales, which rose to $480,000 from $360,000. The improvement in SaaS subscriptions was largely attributable to a 207% increase in SaaS software subscriptions for Measure Ground Control, which saw sales rise to $389,000 from $127,000. Offsetting the increase was a decline in SaaS subscriptions sales of HempOverview, which totaled $91,000, down 26% from $122,000.
- Due to higher operating expenses associated with general and administrative, research and development and sales and marketing costs largely attributed to the acquisition of senseFly in late 2021, loss from operations totaled $18.0 million compared to $11.6 million.
- The Company incurred a net loss of $11.8 million compared to a net loss of $11.4 million.
As of September 30, 2022, AgEagle's cash position was $5.3 million and its total stockholders' equity was $88.3 million. This compared to cash of $14.6 million and stockholders' equity of $76.6 million as of December 31, 2021. During the first nine months of 2022, the Company raised total net proceeds of $14.6 million in its financing activities, including $4.6 million through its At-The-Market Offering with co-agents Stifel Nicholas & Company and Raymond James & Associates, and $9.9 million through a registered direct offering with an existing institutional investor.
Commenting on the results, Barrett Mooney, Chairman and CEO of AgEagle, said, "I am very proud of the tangible progress AgEagle continues to make in executing on key milestones that are expected to ultimately result in positive cash flow and sustainable profitability in the long term. When I reassumed the position of CEO earlier this year, it was with the intention of embarking on a plan to enhance shareholder value by fully integrating our 2021 acquisitions, capitalizing on revenue growth opportunities and implementing cost-saving efficiencies to operate as one company - and our plan is working. With our customer-first mindset and a culture of execution and innovation, I am confident that AgEagle is on a path to achieve great things."
Live Corporate Update Webcast
As a reminder, AgEagle's leadership will host a corporate update via live webcast today, beginning at 4:30 PM Eastern Time and accessible at https://www.webcaster4.com/Webcast/Page/2160/46883, to discuss the third quarter results and other operational developments. A replay of the event will be available shortly after the conclusion of the webcast via the same link. If you have any difficulty connecting to the webcast, please contact Gateway Group at 949-574-3860.
For more detailed information on AgEagle's financial results for the three and nine months ended September 30, 2022, please refer to the 10-Q filed by the Company with the U.S. Securities and Exchange Commission and available for viewing at www.sec.gov or on AgEagle's website at https://ageagle.com/investors/sec-filings/.
About AgEagle Aerial Systems Inc.
Through its three centers of excellence, AgEagle is actively engaged in designing and delivering best-in-class flight hardware, sensors and software that solve important problems for its 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 website at www.ageagle.com.
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 obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.
AgEagle Aerial Systems Contacts:
Gateway Investor Relations
Matt Glover or Cody Cree
Email: [email protected]
Email: [email protected]
SOURCE: AgEagle Aerial Systems, Inc.