Financials
AVI Systems, Inc. is an open book company. We openly share financial information with the people and companies that have a vested interest in our financial success. We see those people and companies as being our customers, our supply chain partners and our shareholders.
Our client base has a vested interest in our financial stability because many of our customers are moving away from managing their audiovisual systems on a project by project basis to managing those systems, and in the process their cost of ownership, over the effective life of those systems. To do this, they need a financially sound audiovisual partner that can and will support and service their systems for the long haul.
A sound financial foundation is important to our supply chain partners as well, because they want and need to know that the trade credit they extend to us is safe and secure. We measure and monitor Accounts Payable In Days because we believe that earning the trust and respect of our supply chain partners helps us better serve our customers.
As a 100 % employee owned company, our employee / shareholders naturally take an interest in the finances of the company. Based on the same philosophy that financial information is and should be shared openly, we share our financial results with our employees so they can determine how their investment in the company is being managed and how their commitment to our customers creates shareholder value.
Over the last two years, AVI Systems has invested heavily in acquisition related growth and those investments and our acquisition strategy are generating tangible financial results. Revenue for the fiscal years ending March 31, 2013 and 2012 has grown by 29 % and 24 %, respectively.
We have managed our balance sheet prudently over this period of rapid growth. The company has approximately $ 21 million dollars of working capital, our current ratio is better than 2.0 to 1.0, there’ s a significant amount of liquidity in our working capital assets, and the metrics we use to manage and measure how well we’ re managing inventory and our accounts receivable are some of the best in our industry.
We have also made notable progress in terms of our capital structure. We paid off all of the Company’ s term debt in fiscal year 2013, and with Debt to Tangible Net Worth and Debt to Equity ratios of 0.9 to 1.0 and 0.7 to 1.0, respectively, AVI Systems has the capital and financial wherewithal to hire leading edge talent, grow the AVI Systems brand and make the investments needed to provide best-in-class service to our customers.
Randi Borth Chief Financial Officer