0001104659-20-133707.txt : 20201209 0001104659-20-133707.hdr.sgml : 20201209 20201209170611 ACCESSION NUMBER: 0001104659-20-133707 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20201209 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20201209 DATE AS OF CHANGE: 20201209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INNOVATIVE SOLUTIONS & SUPPORT INC CENTRAL INDEX KEY: 0000836690 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 232507402 STATE OF INCORPORATION: PA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-31157 FILM NUMBER: 201378487 BUSINESS ADDRESS: STREET 1: 420 LAPP RD CITY: MALVERN STATE: PA ZIP: 19355 BUSINESS PHONE: 6108899898 MAIL ADDRESS: STREET 1: 420 LAPP ROAD CITY: MALVERN STATE: PA ZIP: 19355 8-K 1 tm2037851d1_8k.htm FORM 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

 

FORM 8-K

 

current report

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): December 9, 2020

 

 

 

INNOVATIVE SOLUTIONS AND SUPPORT, INC.

 

 

(Exact name of registrant as specified in its charter)

 

Pennsylvania 0-31157 23-2507402
(State or other jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

 

 

 

720 Pennsylvania Drive

Exton, Pennsylvania 19341

(Address of principal executive offices) (Zip Code)

 

(610) 646-9800

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.001 per share ISSC Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company            ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      ¨

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On December 9, 2020, Innovative Solutions and Support, Inc. issued a press release announcing its financial results for its fourth quarter and fiscal year ended September 30, 2020. A copy of that press release and the attached financial schedules are attached as Exhibit 99.1 to this report and incorporated herein by reference.

 

The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit Number   Description
99.1   Press Release, dated December 9, 2020, announcing financial results for the fourth quarter and fiscal year ended September 30, 2020.

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  INNOVATIVE SOLUTIONS AND SUPPORT, INC.
     
Date: December 9, 2020 By: /s/ Relland M. Winand
    Relland M. Winand
    Chief Financial Officer

 

 

 

EX-99.1 2 tm2037851d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1 

 

 

Innovative Solutions & Support, Inc. Announces Fourth Quarter and Full Year Fiscal 2020 Financial Results

 

December 9, 2020

 

EXTON, Pa.--(BUSINESS WIRE)--Innovative Solutions & Support, Inc. (“IS&S” or the “Company”) (ISSC) today announced its financial results for the fourth quarter and full year fiscal 2020, ended September 30, 2020.

 

For the fourth quarter of fiscal 2020, the Company reported net sales of $6.3 million, an increase of 31% from $4.8 million in the fourth quarter a year ago. The Company reported fourth quarter net income of $1.2 million, or $0.07 per share, compared to $1.0 million, or $0.06 per share, in the fourth quarter of fiscal 2019. Total sales for the fiscal year ended September 30, 2020, were $21.6 million, an increase of 23% from $17.6 million for full year 2019. The Company reported fiscal 2020 net income of $3.3 million, or $0.19 per share, an increase over $1.9 million, or $0.11 per share, for fiscal 2019.

 

 

 

 

Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, “I am pleased to report our second consecutive year of growth in revenues, earnings and cash flow, and the Company’s best annual operating profit in 10 years. 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. As a result of this steady progress, as well as our confidence in our continued success, in September we declared a special, $0.65 per share dividend as a means to provide tangible returns to our shareholders. We remain in excellent financial condition with significant liquidity and no debt.”

 

“Among the many achievements driving our success was an OEM supply contract signed with Textron for our ThrustSense® Autothrottle with LifeGuard™ protection, which will now come as standard equipment on all of Textron’s new King Air 360 and King Air 260 turboprops. In addition, by working with Textron, we will be able to better pursue the significant retrofit opportunities represented by the approximately 5,000 King Air’s currently in service. And, in September, we announced that the FAA had certified our Synthetic Vision (SVS) installation and Autothrottle Upgrade for the Eclipse Jet, which marks our first upgrade offered directly to Eclipse owners. We already are shipping orders. Our strategy to concentrate our focus on technological innovation with substantial growth opportunities, continues to yield rewarding results. As a result, we are building a foundation of long-term OEM contracts that we believe will provide an underlying base of recurring production orders. Our goal remains to leverage our innovative cost-for-performance to serve the growing needs of the commercial air transport, military and business aviation markets.”

 

 

 

 

At September 30, 2020, the Company had $12.6 million of cash on hand. On September 4, 2020, the Board of Directors declared a special cash dividend in the amount of $0.65 per share, or approximately $11.2 million, which was paid on October 1, 2020, and which appears as a dividend payable on the September 30, 2020, balance sheet, offset by a corresponding restricted cash . Net cash flows from operating activities were $2.2 million for the year, with $1.6 million of the total realized in the fourth quarter.

 

New orders in the fourth quarter of fiscal 2020 were over $3.4 million and backlog as of September 30, 2020, was $3.6 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 are currently in production. The Company expects these programs to remain in production for multiple years and that these contracts will add to production sales already in backlog.

 

Full Year Results

 

Total sales for the fiscal year ended September 30, 2020, were $21.6 million, an increase of 23% from $17.6 million for full year 2019. The Company reported fiscal 2020 net income of $3.3 million, or $0.19 per share, an increase over $1.9 million, or $0.11 per share, for fiscal 2019.

 

Conference Call

 

The Company will be hosting a conference call on Thursday, December 10, 2020, 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: 844-739-3798 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), 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

(unaudited)

 

   September 30,   September 30, 
   2020   2019 
ASSETS
Current assets          
  Cash and cash equivalents  $12,603,967   $22,416,830 
  Restricted cash   11,180,900    - 
  Accounts receivable   4,369,111    2,348,537 
  Contract asset   -    80,182 
  Inventories   4,291,335    4,470,694 
  Prepaid expenses and other current assets   675,109    642,049 
           
Total current assets   33,120,422    29,958,292 
           
Property and equipment, net   8,175,872    8,444,692 
Other assets   249,543    154,041 
           
Total assets  $41,545,837   $38,557,025 
           
LIABILITIES AND SHAREHOLDERS' EQUITY
           
Current liabilities          
  Accounts payable  $790,892   $1,079,073 
  Dividends payable   11,180,900    - 
  Accrued expenses   1,361,960    1,110,918 
  Contract liability   313,365    29,231 
           
Total current liabilities   13,647,117    2,219,222 
           
  Non-current deferred income taxes   129,689    129,651 
           
Total liabilities   13,776,806    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 September 30, 2020 and 2019   -    - 
           
Common stock, $.001 par value:  75,000,000 shares authorized, 19,310,835 and 19,005,487 issued at September 30, 2020 and 2019, respectively   19,311    19,006 
           
Additional paid-in capital   51,458,787    51,987,096 
(Accumulated deficit) retained earnings   (2,340,530)   5,570,587 
Treasury stock, at cost, 2,096,451 shares at September 30, 2020 and at September 30, 2019   (21,368,537)   (21,368,537)
           
Total shareholders' equity   27,769,031    36,208,152 
           
Total liabilities and shareholders' equity  $41,545,837   $38,557,025 

 

 

 

 

Innovative Solutions and Support, Inc.

Consolidated Statements of Operations

(unaudited)

 

   Three months ended   Twelve months ended 
   September 30,   September 30, 
   2020   2019   2020   2019 
Sales  $6,295,017   $4,801,988   $21,595,199   $17,572,589 
                     
Cost of sales   2,784,532    1,942,734    9,793,224    7,676,119 
                     
Gross profit   3,510,485    2,859,254    11,801,975    9,896,470 
                     
Operating expenses:                    
Research and development   706,537    522,427    2,955,976    2,489,806 
Selling, general and administrative   1,586,461    1,463,794    6,100,545    5,877,920 
Total operating expenses   2,292,998    1,986,221    9,056,521    8,367,726 
                     
Operating income   1,217,487    873,033    2,745,454    1,528,744 
                     
Interest income   2,592    101,672    154,950    249,620 
Other income   15,737    16,423    60,497    73,737 
                     
Income before income taxes   1,235,816    991,128    2,960,901    1,852,101 
                     
Income tax (benefit) expense   (8,096)   (5,989)   (308,882)   1,805 
                     
Net income  $1,243,912   $997,117   $3,269,783   $1,850,296 
                     
Net income per common share:                    
Basic  $0.07   $0.06   $0.19   $0.11 
Diluted  $0.07   $0.06   $0.19   $0.11 
                     
                     
Weighted average shares outstanding:                    
Basic   16,964,059    16,888,692    16,939,302    16,867,550 
Diluted   17,164,525    17,074,825    17,114,191    16,942,447 

 

 

 

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