Press-Releases

CPI Aerostructures Reports Third Quarter and Nine Month


Third Quarter 2023 vs. Third Quarter 2022

  • Revenue of $20.4 million compared to $20.2 million;
  • Gross profit of $3.7 million compared to $5.3 million;
  • Gross margin of 18.2% compared to 26.4%;
  • Net income of $0.3 million compared to $1.9 million;
  • Earnings per diluted share of $0.02 compared to $0.15;
  • Cash flow from operations of $0.0 million compared to $2.9 million.

Nine Months 2023 vs. Nine Months 2022

  • Revenue of $63.0 million compared to $59.3 million;
  • Gross profit of $13.0 million compared to $12.4 million;
  • Gross margin of 20.6% compared to 21.0%;
  • Net income of $2.4 million compared to $2.3 million ($3.1 million excluding first quarter severance accrual of $0.8 million);
  • Earnings per diluted share of $0.19 compared to $0.19 ($0.25 excluding first quarter severance accrual of $0.06);
  • Cash flow from operations of $0.8 million compared to $0.8 million;
  • Debt as of September 30, 2023 of $20.9 million compared to $23.7 million at September 30, 2022.

EDGEWOOD, N.Y., Nov. 14, 2023 (GLOBE NEWSWIRE) — CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) today announced financial results for the three and nine month periods ended September 30, 2023.

“During the third quarter, we continued to execute on our plan to strengthen our balance sheet and build shareholder value. However, supply chain technical challenges negatively impacted our throughput and gross profit during the quarter. In addition, our year-over-year comparison was difficult given that the prior year’s third quarter benefited from a favorable mix. Nevertheless, our nine month revenue was up 6.3% and gross profit up 4.4% over prior year,” said Dorith Hakim, President and CEO.

“We continued to use cash flow from operations and paid off our term loan in full, reducing total debt by $2.8 million over prior year. We remain confident in our long-term outlook based on the corrective actions implemented in our supply chain, the increase in our funded backlog and our total backlog of $503 million as of September 30, 2023.”

About CPI Aero

CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services.

Forward-looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release are forward-looking statements. The word “outlook,” and similar expressions are intended to identify these forward-looking statements. The Company does not guarantee that it will actually achieve the plans, intentions or expectations disclosed in its forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements.

Forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated or implied by its forward-looking statements, including those important factors set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2022 filed with the Securities and Exchange Commission. Although the Company may elect to do so at some point in the future, the Company does not assume any obligation to update any forward-looking statements and it disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO.

Contacts:                   
Investor Relations Counsel
LHA Investor Relations
Jody Burfening
(212) 838-3777
[email protected]
  CPI Aerostructures, Inc.
Andrew L. Davis
Chief Financial Officer
(631) 586-5200
[email protected]
www.cpiaero.com
     

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS

  September 30,
2023

(Unaudited)
    December 31,
2022
 
           
ASSETS              
Current Assets:              
Cash $ 2,609,693     $ 3,847,225  
Accounts receivable, net   9,124,187       4,857,772  
Insurance recovery receivable         3,600,000  
Contract assets   31,030,568       27,384,540  
Inventory   1,650,873       2,493,069  
Refundable income taxes   40,000       40,000  
Prepaid expenses and other current assets   670,304       975,830  
Total Current Assets   45,125,625       43,198,436  
               
Operating lease right-of-use assets   5,196,418       6,526,627  
Property and equipment, net   866,536       1,124,556  
Deferred tax asset   6,074,243       6,574,463  
Goodwill   1,784,254       1,784,254  
Other assets   212,054       238,744  
Total Assets $ 59,259,130     $ 59,447,080  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY              
Current Liabilities:              
Accounts payable $ 13,058,857     $ 8,029,996  
Accrued expenses   5,409,080       7,344,590  
Litigation settlement obligation         3,600,000  
Contract liabilities   6,669,341       6,001,726  
Loss reserve   371,633       576,549  
Current portion of line of credit   2,400,000       1,200,000  
Current portion of long-term debt   66,311       1,719,766  
Operating lease liabilities, current   1,961,070       1,817,811  
Income tax payable   16,874       11,396  
Total Current Liabilities   29,953,166       30,301,834  
               
Line of credit, net of current portion   18,360,000       19,800,000  
Long-term operating lease liabilities   3,613,270       5,077,235  
Long-term debt, net of current portion   34,064       70,981  
Total Liabilities   51,960,500       55,250,050  
               
Shareholders’ Equity:              
Common stock – $.001 par value; authorized 50,000,000 shares, 12,760,331 and 12,506,795 shares, respectively, issued and outstanding   12,761       12,507  
Additional paid-in capital   73,849,050       73,189,449  
Accumulated deficit   (66,563,181 )     (69,004,926 )
Total Shareholders’ Equity   7,298,630       4,197,030  
Total Liabilities and Shareholders’ Equity $ 59,259,130     $ 59,447,080  
               

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

  For the Three Months Ended
September 30,
  For the Nine Months Ended
September 30,
  2023   2022   2023   2022
Revenue $ 20,399,369     $ 20,196,913     $ 62,963,592     $ 59,257,416  
Cost of sales   16,693,279       14,869,100       49,990,986       46,835,304  
Gross profit   3,706,090       5,327,813       12,972,606       12,422,112  
                       
Selling, general and administrative expenses   2,535,065       2,744,265       8,210,603       8,579,314  
Income from operations   1,171,025       2,583,548       4,762,003       3,842,798  
                       
Interest expense   (663,857 )     (721,046 )     (1,816,408 )     (1,488,091 )
Income before provision for income taxes   507,168       1,862,502       2,945,595       2,354,707  
                       
Provision for income taxes   205,804       3,750       503,850       11,250  
Net income $ 301,364     $ 1,858,752     $ 2,441,745     $ 2,343,457  
                       
Income per common share, basic:                      
Income per common share-unrestricted shares $ 0.02     $ 0.15     $ 0.19     $ 0.19  
Income per common share-restricted shares $ 0.02     $ 0.15     $ 0.19     $ 0.19  
                       
Income per common share, diluted $ 0.02     $ 0.15     $ 0.19     $ 0.19  
                       
Shares used in computing income per common share, basic:                      
Unrestricted shares   12,431,727       12,208,340       12,418,693       12,274,246  
Restricted shares   328,244       93,412       195,206       88,714  
Total shares   12,759,971       12,301,752       12,613,899       12,362,960  
                       
Shares used in computing income per common share, diluted   12,793,133       12,349,283       12,647,061       12,410,491  
                               

CPI Aerostructures Inc



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