The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Greg Konrad - Jefferies - Analyst
: Good morning and congratulations.
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NOVEMBER 19, 2024 / 1:00PM, AVAV.OQ - AeroVironment Inc To Acquire Bluehalo LLC
Question: Greg Konrad - Jefferies - Analyst
: Maybe just to start. I mean, I think both you and BlueHalo has a strong position on kind of the prime side but have also been very efficient at
partnering where necessary. You didn't mention revenue synergies, given the different markets. But how do you think about acceleration of growth
and potential revenue synergies?
Question: Greg Konrad - Jefferies - Analyst
: And then, just as a quick follow up, I mean, you called out comparable growth and margin for BlueHalo. Just to help us with kind of the modeling
and accretion. I mean, should we think about that EBITDA margin as similar to AeroVironment? Just to confirm.
Question: Greg Konrad - Jefferies - Analyst
: Well, I appreciate it and congratulations again.
Question: Peter Arment - Robert W. Baird & Co., Inc. - Analyst
: Hey. Good morning, Wahid, Kevin, and Jonah. Congratulations on the transaction.
Question: Peter Arment - Robert W. Baird & Co., Inc. - Analyst
: Hey, just on the net leverage, 2.5 turns expected to close. Can you kind of walk us through, kind of the pro forma target? Roughly the timeline
you're thinking on that to get down to 1 turn.
Question: Peter Arment - Robert W. Baird & Co., Inc. - Analyst
: Okay. Thanks for that. And then just as a follow up, maybe just to Jonathan, can you talk a little bit about you had -- you've had a tremendous
amount of success with your counter-UAS programs that just about the -- I think there was thoroughly success in Ukraine. Just about the potential
growth for that particular product line. I think that's going to be important for the pro forma company.
Question: Peter Arment - Robert W. Baird & Co., Inc. - Analyst
: Appreciate it. Thanks, guys. Congratulations.
Question: Andre Madrid - BTIG - Analyst
: Hey. Good morning and thanks for taking the time to take my question. Looking at SCAR --
Question: Andre Madrid - BTIG - Analyst
: Looking at some of the large program wins at BlueHalo, I mean, what do you think should be the implied growth trajectory on a combined basis
across those? And are there any on the horizon that are yet to be announced that we should be looking out for?
Question: Andre Madrid - BTIG - Analyst
: Thank you, Wahid. And if I could follow up with one more, I mean, if I'm looking at the business now, the mix of BlueHalo kind of looks like a third
space tech. I know this is kind of outside of the wheel -- the traditional wheelhouse of our environment no longer. But, I mean, how should we look
about this combined mix moving forward and maybe talk to a bit more of the growth trajectories of the single, independent lines of business for
the combined entity now, especially space given that it's something that, like I said, traditionally AV has not necessarily dealt with.
Question: Andre Madrid - BTIG - Analyst
: Appreciate it. Thanks so much, everyone.
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