EXTON, PA — Innovative Solutions & Support, Inc. (NASDAQ: ISSC) announced its financial results for the fourth quarter and full fiscal year 2022 ended September 30, 2022.
For the fourth quarter of fiscal 2022, IS&S reported net sales of $7.3 million, up 5.7% as compared to $6.9 million in the fourth quarter a year ago. The Company reported net income of $1.6 million, or $0.09 per share, an increase of 2.9% compared to $1.5 million, in the fourth quarter of fiscal 2021. IS&S recorded tax expense in the fourth quarter of fiscal 2022 of $0.7 million, compared to $0.4 million in the fourth quarter of fiscal 2021.
Shahram Askarpour, Chief Executive Officer of IS&S, said, “The fourth quarter was another solid quarter of growth in revenue and profitability. Revenue and earnings were up for the fourth consecutive year, driven by top-line growth and an increase in operating leverage. Total cash flows more than doubled for the second consecutive year. We are well positioned to accelerate our revenue and earnings growth and take advantage of organic and inorganic opportunities to generate strong returns for our internal and external stakeholders.”
The Company’s cash on hand increased to $17.3 million as of September 30, 2022, with net cash flows of $2.5 million from investing activities in the fourth quarter due to the sale of a PC-12 airplane. IS&S generated $6.1 million of cash flows from operating activities for the full fiscal year 2022. The Company continues to maintain its strong financial condition and flexibility with significant liquidity and no debt.
New orders in the fourth quarter of fiscal 2022 were approximately $6.5 million and backlog as of September 30, 2022 was $11.8 million. Only purchase orders in hand from the Pilatus PC-24, Textron King Air and the KC-46A long-term programs are included in the total backlog. IS&S expects these programs to remain in production for approximately a decade and believes that they will continue to add to production sales already included in the backlog.
Full Year Fiscal 2022 Results
Total sales for the fiscal year ended September 30, 2022, were $27.7 million up 20.4% compared to $23.0 million for the fiscal year ended September 30, 2021. Operating income of $6.0 million was up 54.5% from $3.9 million in fiscal 2021. Net income for fiscal 2022 was $5.5 million, or $0.32 per share, compared to $5.1 million, or $0.29 per share, in fiscal 2021. Net income in fiscal 2022 included a $1.1 million gain on the sale of an asset. The gain was mostly offset by increased general & administrative expenses of approximately $1.0 million incurred throughout the year due to higher legal and professional fees related to the passing of former Chairman and CEO Geoffrey Hedrick, changes in the Board of Directors, the hiring of a new CFO, and other legal fees associated with the filing of the S-3 Shelf Registration and Rights Plan. In fiscal 2021, net income was aided by a $1.1 million tax benefit from the release of deferred tax valuation allowances in the third quarter. The tax benefit led to a net income differential of $2.9 million from 2021 to 2022, reflecting the tax expense of $1.8 million in 2022 compared to the $1.1 million tax benefit in 2021.
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