AgEagle Announces First Quarter 2023 Results

WICHITA, KS / ACCESSWIRE / May 15, 2023 / AgEagle Aerial Systems Inc. (NYSE American:UAVS) ("AgEagle" or the "Company"), an ​industry-leading​ company engaged in designing and delivering best-in-class drones, sensors and software, for commercial and government use, today announced its financial results for the three months ended March 31, 2023.

Financial Highlights for the Comparable Three Months Ended March 31, 2023 and 2022

• Revenues increased 6% to $4.06 million, up from $3.84 million.

  • Revenue growth was attributable to continued, strong global demand for Altum-PT™ and RedEdge-P™ multispectral sensors, with sensor sales climbing 111% to $1.97 million from $0.93 million.

• Gross profit rose 45% to $1.98 million from $1.36 million, and gross margin increased to 49% from 36%.

• Total operating expenses declined 31% to $6.14 million from $8.85 million.

• Loss from operations dropped 44% to $4.16 million from $7.48 million.

• Net loss attributable to common stockholders decreased 39% to $4.60 million, or $0.05 loss per share, from $7.60 million, or $0.10 loss per share.

As of March 31, 2023, AgEagle's cash position was $2.85 million and its total stockholders' equity was $42.17 million. This compared to cash of $4.35 million and stockholders' equity of $43.22 million as of December 31, 2022.

Nicole Fernandez-McGovern, AgEagle's Chief Financial Officer and Executive Vice President of Operations, stated, "AgEagle delivered strong operating performance, showing good revenue growth matched by a solid reduction in operating expenses due to continued success of our consolidation and integration strategy across our three core business segments. While inflationary pressures and supply chain constraints have yet to subside, we also drove a notable improvement in our gross margin this quarter compared to the same period last year, which rose over 1,300 basis points. Looking ahead, we will continue to lean on our productivity and cost savings initiatives, while strategically investing in future growth platforms that we believe will expand our presence in the global UAS marketplace and accelerate our ability to achieve cash flow breakeven."

For more detailed information about the Company's financial performance for the first quarter of 2023, please refer to the Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission earlier today and accessible on www.sec.gov or www.ageagle.com.

Q1 2023 Operational Highlights and Recent Developments

• In February 2023, FEDS, one of the leading drone services companies in the Middle East and value added reseller of AgEagle's high performance unmanned aerial systems ("UAS"), won a tender for multiple eBee X™ drones and sensors for use in environmental mapping operations in the Kingdom of Saudi Arabia.

• In late March 2023, three branches of European military forces took delivery of the Company's newest fixed-wing innovation, the eBee™ VISION - the next generation in Intelligence, Surveillance and Reconnaissance UAS pioneered by AgEagle.

• In April 2023, the Company was awarded a Multiple Award Schedule Contract by the General Services Administration, which is the centralized procurement arm of the U.S. federal government.

• In April 2023, AgEagle won a federal contract from the U.S. Department of Defense's ("DoD") Defense Innovation Unit to produce and deliver eBee VISION fixed-wing drones and customized command and control software that proves compatible and is in full compliance with the DoD Robotic and Autonomous System-Air Interoperability Profile.

• In May 2023, the Company signed a $2 million, two-year supply agreement with Wingtra AG, securing the supply of RedEdge-P sensor kits for integration with WingtraOne™ Vertical Take-Off and Landing drones.

"In Q1 2023, we delivered strong performance across our core operating and financial metrics - with demand for our sensors more than doubling our comparable quarter-over-quarter results for this business segment," said Barrett Mooney, Chairman and CEO of AgEagle. "We believe that the upward trend we are seeing with our sensors will continue and likely gain further momentum in the quarters ahead. In our flight hardware segment, we intend to remain focused on driving market awareness and adoption of our new eBee VISION among commercial, government and military drone operators worldwide, while also capitalizing on prevailing sales opportunities for our new Field Check for Measure Ground Control software innovation. Overall, 2023 has started out well, and we expect to continue executing our financial and operational strategies as we advance through the year."

Corporate Update Webcast

As a reminder, AgEagle's leadership will host a corporate update with the investor community tomorrow, May 16, 2023, beginning at 4:30 p.m. Eastern Time.

To access the webcast, please go to https://www.webcaster4.com/Webcast/Page/2160/48375. The corporate update will be broadcast live and available for replay via the same link following the conclusion of the webcast.

About AgEagle Aerial Systems Inc.

Through its three centers of excellence, AgEagle is actively engaged in designing and delivering best-in-class flight hardware, sensors and software that solve important problems for its customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, AgEagle is a leading provider of full stack drone solutions for customers worldwide in the energy, construction, agriculture, and government verticals. For additional information, please visit our website at www.ageagle.com.

Forward-Looking Statements

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.

AgEagle Aerial Systems Contacts:

Investor Relations:
Gateway Investor Relations
Matt Glover or Cody Cree
Phone: 949-574-3860
Email: UAVS@gatewayIR.com

Media:
Email: media@ageagle.com

SOURCE: AgEagle Aerial Systems, Inc.

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