AgEagle Aerial Systems Reports Second Quarter 2020 Results
August 17 2020 - 8:30AM
AgEagle Aerial Systems Inc. (NYSE American: UAVS)
(“AgEagle or the “Company”), an industry leading provider of UAVs
and advanced aerial imagery, data collection and analytics
solutions, today announced its second quarter financial results for
the three and six months ended June 30, 2020.
Key Financial Highlights
- Revenue increased 516% to $408,000 from $66,000 for the
six-month comparable periods in 2020 and 2019. For the three months
ended June 30, 2020, revenue was $16,000 compared to $20,000 for
the same three months in the prior year. This decline was primarily
due to the impact of COVID-19 on AgEagle’s supply chain, resulting
in the delivery delay of certain parts needed for the manufacturing
and assembly of drones and related drone package delivery
equipment. Approximately $770,000 in revenue, originally expected
to be realized in the second quarter, will now be booked in the
third quarter.
- Gross profit margin on sales for the six-month period ended
June 30, 2020 increased significantly to 54% from 20% for the
comparable period in 2019. Likewise, gross profit margin on sales
also improved for the comparable three-month periods ended June 30,
2020 and 2019, rising to 8% from 5%, respectively.
- The Company’s net loss for the six months ended June 30, 2020
totaled $1.7 million compared to a net loss of $1.3 million
reported for the comparable six months in 2019. For the three
months ended June 30, 2020, net loss was $1.3 million compared to a
net loss of $739,000 for the same three months in 2019. Overall,
the increases in net losses were due to higher operating costs
associated to the shifts in our long-term growth strategies.
- The net loss available to common stockholders for the current
six month reporting period was $10.8 million, or $0.44 loss per
share, as a result of non-cash accounting charges relating to our
financing activities. This compared to $1.4 million, or $0.10 loss
per share, for the comparable six months in 2019. For
the same reason, net loss totaled $10.3 million, or $0.31 loss per
share, compared to $780,000, or $0.05 loss per share, for the
three-month periods in 2020 and 2019, respectively.
- As of June 30, 2020, the Company’s balance sheet reflected cash
of $12.9 million compared to $718,000 as of December 31, 2019. The
Company had no long term debt and total stockholders’ equity
increased to $16.0 million compared to $4.3 million as of June 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.
Michael Drozd, Chief Executive Officer of
AgEagle, stated, “Since joining AgEagle in mid-May, I have been
routinely impressed by my team’s commitment and dedication to
AgEagle’s purposeful shift in our long-term business strategy. We
are well positioned to weather the effects of the global pandemic
and its direct impact on our second quarter revenue
recognition. Moreover, we remain focused on the many
opportunities for future expansion, buoyed by our strong cash
position which has increased to over $25 million due the recent
equity financing we recently announced. We expect 2020 be be
a record year for AgEagle’s revenue growth and position us to
accomplish several key strategic objectives going forward.”
To review the Company’s detailed financial
results for the three and six months ended June 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 on Tuesday, August 18, beginning at 11:00 AM 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/2160/36280.
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 and based in Kansas, AgEagle has
earned distinction as one of the industry’s leading pioneers of
technologically advanced drones and aerial imagery-based data
collection and analytics solutions. We are trusted to
help the world’s growers, consumer packaged goods companies,
and their supply chain partners to proactively assess and manage
the health of commercial crops, reduce the chemicals in produced
foods and products and preserve and protect natural resources. In
addition, we are at the leading edge of providing state and
territorial departments of agriculture, growers and processors with
registration, oversight, compliance/enforcement, and reporting
solutions relating to the United States’ emerging hemp cultivation
industry. In late 2019, we began pursuing expansion opportunities
within the emerging Drone Logistics and Transportation market with
the manufacture and assembly of UAVs designed to meet
specifications for drones that are meant to carry packaged goods in
urban and suburban areas. For more information, please
visit www.ageagle.com.
Forward-Looking StatementsThis
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.
Contacts:Investor
RelationsGateway Investor Relations Sean
Mansouri or Cody CreePhone: 949-574-3860Email:
UAVS@gatewayIR.com
Press/Media
ContactPrimo PRTara Coomans or Laura
NystromPhone: 424-278-9199Email:
media@ageagle.com
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