-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C6dYFQW4Gz/kxavHebNXhNUpPXAJYSxDZL+nKA1LuRKuei9IwuYRlKoSC8WVk/vd 2H9amMUztROSt9m7NQ9R1g== 0001193125-03-083077.txt : 20031118 0001193125-03-083077.hdr.sgml : 20031118 20031118083222 ACCESSION NUMBER: 0001193125-03-083077 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031118 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031118 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: 031009376 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 d8k.htm INNOVATIVE SOLUTIONS AND SUPPORT, INC. - FORM 8-K Innovative Solutions and Support, Inc. - Form 8-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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): November 18, 2003

 


 

Innovative Solutions and Support, Inc.

(Exact name of issuer as specified in charter)

 

PENNSYLVANIA   0-31157   23-2507402

(State or Other Jurisdiction

of Incorporation or

Organization)

 

(Commission file

number)

 

(I.R.S. Employer

Identification

Number)

 

720 Pennsylvania Drive

Exton, Pennsylvania 19341

(Address of principal executive offices)

 

(610) 646-9800

(Registrant’s telephone number, including area code)

 

 


 


Item 7—Financial Statements, Pro Forma Financial Information and Exhibits.

 

Items (a) and (b) are inapplicable.

 

(c) Exhibits

 

99.1 Press Release dated November 18, 2003 announcing financial results for the fourth quarter and fiscal year ended September 30, 2003.

 

Item 12. Results of Operations and Financial Condition.

 

On November 18, 2003, Innovative Solutions and Support, Inc. issued a press release announcing its financial results for its fourth quarter and fiscal year ended September 30, 2003. A copy of the press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

 

Signatures

 

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

 

 

   

INNOVATIVE SOLUTIONS AND SUPPORT, INC.

Date: November 18, 2003

  By:  

/S/    JAMES J. REILLY


        James J. Reilly
        Chief Financial Officer

 


Exhibit Index

 

99.1 Press Release dated November 18, 2003 announcing financial results for the fourth quarter and fiscal year ended September 30, 2003.
EX-99.1 3 dex991.htm PRESS RELEASE DATED NOVEMBER 18, 2003 Press Release dated November 18, 2003

Exhibit 99.1

 

Press Release

Innovative Solutions & Support, Inc. Announces 86% Increase in 4th Quarter Net Income Versus Prior Year and 129% Ahead of Prior Quarter.

 

Company Delivers Record Sales, Record Net Income and Record Earnings/Share for the Fourth Quarter Ended September 30, 2003.

 

Exton, PA.—(BUSINESS WIRE)—November 18, 2003—Innovative Solutions & Support, Inc. (NASDAQ:ISSC-news) today announced record 4th quarter sales of $10.1 million and net income of $2.8 million. This strong 4th quarter performance produced fully diluted EPS of $0.23 that exceeded estimates. For the twelve months ended September 30, sales of $28.2 million and net income of $5.5 million produced fully diluted EPS of $0.44 that exceeded estimates.

 

Please refer to the accompanying schedules highlighting our Statement of Operations and Balance Sheet.

 

At September 30, 2003 the Company’s backlog of released business was a record $24.1 million. This reflects a 90% increase compared to September 30, 2002. In addition the Company has an additional $16 million in follow-on options for release in subsequent periods that has not yet been recognized in firm backlog.

 

At September 30, 2003, our cash position was $48.8 million or $4.06 per fully diluted share. During the year the Company acquired 1,440,026 shares of our stock at a cost of $9.4 million. Cumulatively, the Company has acquired 1,690,026 shares at a cost of $10.6 million.

 

The company will host a conference call today, November 18, at 10:00 am local time to discuss these results. Please call in to participate at (888) 792-8459. Also, our web site will carry the conference call live and have it available for subsequent listening.

 

The Company experienced solid performance this year that began slow but finished very strong. While revenue in total remained about the same year over year, it was more balanced within our three primary market segments this year. The Military segment amounted to $6.5 million or 23% of total revenue in the year, of which $1.1 million or 17% was in Flat Panel sales on two government multi-year programs. The Business, Regional and General Aviation and Air Transport segments each made a strong 2nd half recovery and finished the year with 42% and 35% of total revenue, respectively. Additionally, these two segments have shown significant growth in the form of new orders as evidenced with a record backlog of $22 million in commercial business alone.

 

Gross profit margins were solid all year and demonstrated how effective our manufacturing, assembly, test and quality operations have become. Our new manufacturing facility was put in place two years ago in anticipation of the broadening


application of RVSM requirements in the United States, including Southern Canada, and is capable of accommodating significant market demand increases.

 

The FAA has made it official; the Domestic Reduced Vertical Separation Minimum (DRVSM) mandate will be January 20, 2005. This requirement will have a positive impact on our business as the general aviation industry lines up to acquire the needed equipment. The FAA estimates the cost of implementation by airline and general aviation segments will be approximately $870 million but that fuel savings alone through 2016 will be six times the cost, saving $5.3 billion. We believe about one-half of the FAA’s cost estimate will be for hardware and that our Company is well positioned to maintain at least a 50% share in the retrofit market.

 

Headquartered in Exton, PA. Innovative Solutions & Support, Inc. (www.innovative-ss.com) designs, manufactures and markets flight information computers, large flat panel displays and advanced monitoring systems that measure and display critical flight information. This includes data relative to aircraft separation (RVSM, Reduced Vertical Separation Minimum), airspeed and altitude as well as engine and fuel measurements.

 

Certain matters discussed in this news release, including operating and financial results for future periods, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially, either better or worse, from those discussed including other risks and uncertainties reflected in the Company’s prospectus and Form 10-K annual report on file with the SEC.

 

Contact Mr. James Reilly at (610) 646-9800


Innovative Solutions and Support, Inc.

Statement of Operations

 

    

Three months ended

September 30,


   

Twelve months ended

September 30,


 
     2002

    2003

    2002

    2003

 

Revenues

   $ 7,227,377     $ 10,103,904     $ 28,345,620     $ 28,168,752  

Cost of Sales

     2,834,164       3,593,590       11,290,085       11,346,057  
    


 


 


 


Gross profit

     4,393,213       6,510,314       17,055,535       16,822,695  
    


 


 


 


Research and development

     951,535       952,702       4,755,422       3,376,849  

Selling, general and administrative

     1,400,208       1,560,020       5,732,886       5,890,362  
    


 


 


 


Operating income

     2,041,471       3,997,592       6,567,227       7,555,484  
    


 


 


 


Interest income

     209,387       118,640       855,995       582,023  

Interest expense

     (35,856 )     (29,922 )     (133,145 )     (131,602 )
    


 


 


 


Income before income taxes

     2,215,002       4,086,310       7,290,077       8,005,905  

Income tax expense

     702,018       1,271,022       1,879,799       2,464,715  
    


 


 


 


Net Income

   $ 1,512,984     $ 2,815,288     $ 5,410,278     $ 5,541,190  
    


 


 


 


Net Income per Common Share

                                

Basic

   $ 0.12     $ 0.24     $ 0.42     $ 0.45  

Diluted

   $ 0.12     $ 0.23     $ 0.41     $ 0.44  

Weighted Average Shares Outstanding

                                

Basic

     12,801,020       11,739,659       12,830,894       12,261,084  

Diluted

     13,033,339       12,007,643       13,069,387       12,495,774  


Innovative Solutions and Support, Inc.

Balance Sheet

 

    

Actual

September 30, 2002


   

Actual

September 30, 2003


 

ASSETS

                

CURRENT ASSETS:

                

Cash and cash equivalents

   $ 52,245,754     $ 48,789,744  

Accounts receivable

     5,300,421       6,955,207  

Inventories

     3,352,649       2,840,648  

Deferred income taxes

     650,384       673,134  

Prepaid expenses

     655,869       660,430  
    


 


Total current assets

     62,205,077       59,919,163  
    


 


Property and equipment, net

     10,144,895       9,548,491  
    


 


Other assets

     266,713       408,971  
    


 


TOTAL ASSETS

   $ 72,616,685     $ 69,876,625  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY                 

CURRENT LIABILITIES:

                

Current portion of note payable

   $ 100,000     $ 100,000  

Current portion of capitalized lease obligation

     17,111       —    

Accounts payable

     246,814       578,306  

Accrued expenses

     2,544,909       3,146,409  

Deferred revenue

     137,936       98,036  
    


 


Total current liabilities

     3,046,770       3,922,751  
    


 


Note Payable

     4,235,000       4,235,000  
    


 


Deferred revenue

     402,877       332,407  
    


 


Deferred income taxes

     205,828       328,177  
    


 


SHAREHOLDERS’ EQUITY:

                

Common stock

     13,052       13,081  

Additional paid-in capital

     46,093,605       46,248,224  

Retained earnings

     19,869,553       25,410,742  

Treasury Stock

     (1,250,000 )     (10,613,757 )
    


 


Total shareholders’ equity

     64,726,210       61,058,290  
    


 


TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 72,616,685     $ 69,876,625  
    


 


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