This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Engaged Capital Sends Letter To AeroVironment’s Board Of Directors

Engaged Capital, an investment firm specializing in small and mid-cap North American equities and beneficial owner of approximately 5.1 percent of the common stock of AeroVironment, Inc. (“AeroVironment” or the “Company”) (NASDAQ:AVAV), today sent a letter to the Company’s Board of Directors (the “Board”), included below and also filed today as an amendment to its SEC form 13-D.

In its letter, Engaged Capital expresses its disappointment with the Board’s unwillingness to enter into a constructive process, seriously consider its highly qualified independent director nominee, and its failure to provide proper governance and protections for the rights of its shareholders. Engaged believes that the Company lacks a sense of urgency to capitalize on the Company’s market position, nor explore alternatives that could change the trajectory of its public market valuation. Engaged believes that recent events and information disclosed in the attached letter reveals a Board that elevates self-interest over its fiduciary duty to shareholders.

Glenn Welling, Principal and Chief Investment Officer of Engaged Capital, commented, “AeroVironment’s failure to deliver meaningful shareholder returns over any relevant time period is a clear indication of a need for change. We have spent the last few months working transparently and constructively towards a solution that would finally elevate the interests of shareholders to the top of the Board’s priority list. At this point, we feel that we have exhausted every possible avenue to finding a solution, as the Company’s offers to address our concerns have no substance. We are resolute in our determination to ensure the Company is governed for the benefit of its shareholders. All shareholders should be intently focused on this Board’s lack of progress in the areas of governance, capital allocation, and long-term strategy.”

Engaged Capital noted that it had also included, as part of its 13-D filing but not appearing below, three additional letters: a cover letter to management, dated July 3, 2013 that accompanied its nominating letter to the Board, a letter, dated August 7, 2013 expressing disappointment at the lack of communication or action regarding previous communications to the Board, and a letter, dated August 12, 2013 expressing further concerns after the meeting with the Nominating and Governance Committee.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs