AgEagle Aerial Systems Reports Record Third Quarter 2020 Financial Results
WICHITA, Kan., Nov. 16, 2020 (GLOBE NEWSWIRE) — AgEagle Aerial Systems Inc. (NYSE American: UAVS) (“AgEagle” or the “Company”), an industry leading provider of unmanned aerial vehicles and advanced aerial imagery, data collection and analytics technologies, announced record financial results for the three and nine months ended September 30, 2020.
Key Financial Highlights
- Revenues for three-month reporting period ended September 30, 2020 increased significantly to a record of $750,000 compared to $42,000 for the comparable three month period in 2019. For the nine months ended September 30, 2020, revenues increased to a record of $1.2 million compared to $108,000 reported for the nine months in the prior year period. The notable increase in revenues was primarily driven by follow-on purchase orders for manufacturing and assembly of drones and related package delivery equipment for the Company’s largest customer.
- Gross profit margin on sales improved to 43% from 21% for the three months ended September 30, 2020 and 2019, respectively. Likewise, gross profit margin on sales for the comparable nine month reporting periods in 2020 and 2019 rose to 46% from 20%, respectively.
- Net loss for the three months ended September 30, 2020 totaled $579,000 compared to $563,000 in net loss for the same three months in 2019. For the nine months ended September 30, 2020, net loss was $2.2 million compared to $1.9 million in the prior year nine-month period. Overall, the increase in net losses were due to higher operating costs relating to the shifts in our long-term growth and business expansion strategies.
- After factoring non-cash accounting charges relating to our financing activities, the net loss attributable to our common stockholders improved to $579,000 from $604,000 for the three months ended September 30, 2020 and 2019, respectively. After factoring non-cash accounting charges for the comparable nine month reporting periods in 2020 and 2019, net loss attributable to the Company’s common stockholders was $11.3 million compared to $2.0 million, respectively.
- As of September 30, 2020, the Company’s balance sheet reflected cash of $24.7 million compared to $718,000 as of December 31, 2019. The Company had no long-term debt and total stockholders’ equity increased to $28.1 million compared to $4.3 million as of September 30, 2020 and December 31, 2019, respectively. The material strengthening of the balance sheet was largely due to the successful closing of equity financings completed in the first half of 2020.
Commenting on the record results, AgEagle CEO Michael Drozd noted, “We are very pleased with the progress that AgEagle continues to make across each of our focused business segments. Among many key achievements in the second half of 2020, we booked significant revenue from our ecommerce client; our team has completed the relocation of our headquarters and manufacturing facilities from Neodesha to Wichita; and we have completed the redesign of our brand logo and launched a new corporate website. We have also continued to expand our team with experienced new talent, and we are aggressively pursuing and winning new customers and business partners, including Valqari and the Kansas Department of Transportation. Looking ahead, we will remain focused on driving revenue growth through marketing our contract manufacturing and assembly services, along with our innovative drone and agriculture solutions. Moreover, we will continue to evaluate potential strategic acquisitions that will further complement and strengthen our position as a recognized leader in The Drone Age™.”
To review the Company’s detailed financial results for the three and nine months ended September 30, 2020, please refer to our Form 10-Q filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov.
Corporate Update Webcast
The Company’s management will host a webcast today, November 16th, beginning at 4:30 PM Eastern time to provide a corporate update and discuss recent operational highlights. The webcast will be broadcast live and available for replay via the link: https://www.webcaster4.com/Webcast/Page/2160/38229. If you encounter any difficulty connecting to the webcast, please contact Gateway Investor Relations at 949-574-3860.
About AgEagle Aerial Systems Inc.
Founded in 2010, Wichita-based AgEagle is one of the nation’s leading commercial drone technology, services and solutions providers. We deliver the metrics, tools and strategies necessary to define and implement drone-enabled solutions that solve important problems for our valued customers. AgEagle’s key growth strategies are centered on three focused pursuits: 1) Contract Manufacturing: establishing AgEagle as the dominant commercial drone design, engineering, manufacturing, assembly and testing company in the United States; 2) Drone Solutions: establishing AgEagle as the world’s trusted source for turn-key drone delivery services and solutions; and 3) Ag Solutions: leveraging our reputation as one of the leading technology solutions providers to the Agriculture industry with best-in-class drones and data analytics for hemp and other commercial crops. For more information, please visit 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.
Gateway Investor Relations
Sean Mansouri, CFA or Cody Cree
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