EXTON, Pa.–(BUSINESS WIRE)–Innovative Solutions & Support, Inc. (“IS&S” or the “Company”) (NASDAQ: ISSC) today announced its financial results for the first quarter of fiscal 2021, ended December 31, 2020.

For the first quarter of fiscal 2021, the Company reported net sales of $4.9 million, up from net sales of $4.5 million in the first quarter a year ago. The Company reported operating income of $232,000 and net income of $240,000, or $0.01 per share, in the first quarter of fiscal 2021, compared to operating income of $232,000 buoyed by interest income to a net income of $328,000, or $0.02 per share, in the first quarter of fiscal 2020.

Geoffrey Hedrick, Chairman and Chief Executive Officer of IS&S, said, “The results for the first quarter of fiscal 2021 reflect revenue growth, and positive cash flow compared to the year ago quarter. I am very pleased with the continued success we are experiencing growing our portfolio of production contracts for both retrofit and new production aircraft in spite of the Pandemic’s impact on our anticipated exponential market demand. However, continued demand is providing a solid base of recurring revenue on which to build. We are also experiencing healthy demand for our Boeing 757 and 767 Flat Panel Upgrade system and Eclipse software upgrade. Innovative Solutions and Support remains focused on creating value for our shareholders through the continued development of the industry’s leading price-for-performance technology in the Commercial Air Transport, Military and General Aviation markets.”

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. Reflecting our continued confidence, in December we declared a special, $0.50 per share dividend to provide tangible returns to our shareholders. Together with the $0.65 dividend declared in September, over the last six months of calendar 2020 we returned nearly $20 million of cash to our shareholders. Even after these distributions, we remain in excellent financial condition with significant liquidity and no debt.”

At December 31, 2020, the Company had $5.6 million of cash on hand. Net cash flows from operating activities were $1.7 million in the quarter.

New orders in the first quarter of fiscal 2021 were $5.4 million, and backlog as of December 31, 2020, was $4.2 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 the Company expects to remain in production for a decade. The Company expects that these contracts will add to production sales already in backlog.

Conference Call

The Company will be hosting a conference call on Thursday, February 11, 2021, at 10:00 a.m. ET to discuss these results, its 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. No conference ID is required. 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
 
December 31, September 30,

2020

2020

(unaudited)
ASSETS
Current assets
Cash and cash equivalents

 $

               5,608,255

 

 $

             12,603,967

 

Restricted cash

 

                                 –

 

 $

             11,180,900

 

Accounts receivable

 

                  2,544,529

 

 

                  4,369,111

 

Inventories

 

                  4,180,743

 

 

                  4,291,335

 

Prepaid expenses and other current assets

 

                     850,861

 

 

                     675,109

 

   
Total current assets

 

13,184,388

 

 

33,120,422

 

 
Property and equipment, net

 

8,155,667

 

 

                  8,175,872

 

Other assets

 

208,093

 

 

                     249,543

 

   
Total assets

 $

             21,548,148

 

 $

             41,545,837

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
Current liabilities
Accounts payable

 $

                  727,593

 

 $

                  790,892

 

Dividends payable

 

                                 –

 

 $

             11,180,900

 

Accrued expenses

 

1,121,818

 

 

                  1,361,960

 

Contract liability

 

121,473

 

 

                     313,365

 

   
Total current liabilities

 

1,970,884

 

 

13,647,117

 

 
Non-current deferred income taxes

 

129,689

 

 

                     129,689

 

Total liabilities

 

2,100,573

 

 

13,776,806

 

 
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 December 31, 2019 and September 30, 2019

 $

                              –

 

 $

                              –

 

 
Common stock, $.001 par value:  75,000,000 shares authorized, 19,310,835
issued at December 31, 2020 and September 30, 2020

 

                       19,311

 

 

                       19,311

 

 
Additional paid-in capital

 

                51,504,378

 

 

                51,458,787

 

(Accumulated deficit)

 

(10,707,577

)

 

(2,340,530

)

Treasury stock, at cost, 2,096,451 shares at December 31, 2020 and 
September 30, 2020

 

(21,368,537

)

 

(21,368,537

)

   
Total shareholders’ equity

 

                19,447,575

 

 

                27,769,031

 

   
Total liabilities and shareholders’ equity

 $

             21,548,148

 

 $

             41,545,837

 

Innovative Solutions and Support, Inc.
Consolidated Statements of Operations
(unaudited)
Three months ended
December 31,

2020

2019

Net sales

 $

        4,869,652

 $

        4,511,428

Cost of sales

 

           2,303,829

 

           1,909,781

Gross profit

 

           2,565,823

 

           2,601,647

Operating expenses:
Research and development

 

              600,298

 

              666,615

Selling, general and administrative

 

           1,733,154

 

           1,703,274

Total operating expenses

 

           2,333,452

 

           2,369,889

Operating income 

 

              232,371

 

              231,758

Interest income

 

                     879

 

                78,870

Other income

 

                16,392

 

                17,280

Income before income taxes

 

              249,642

 

              327,908

Income tax expense

 

                  9,497

 

                         –

Net income 

 $

           240,145

 $

           327,908

Net income per common share:
Basic

 $

                 0.01

 $

                 0.02

Diluted

 $

                 0.01

 $

                 0.02

Weighted average shares outstanding:
Basic

 

         17,214,384

 

         16,909,036

Diluted

 

         17,216,287

 

         17,081,578

 

Contacts

Relland Winand, Chief Financial Officer

Innovative Solutions & Support, Inc.

610-646-0350

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