First Quarter 2024 vs. First Quarter 2023
Revenue of $19.1 million compared to $22.0 million;Gross profit of $3.6 million compared to $4.7 million;Gross profit margin of 18.6% compared to 21.2%;Net income of $0.2 million compared to $1.0 million;Earnings per share of $0.01 compared to $0.08;Cash flow used in operations of ($1.0) million compared to $0.9 million provided by cash flow from operations;Debt as of March 31, 2024 of $19.1 million compared to $22.1 million as of March 31, 2023.
EDGEWOOD, N.Y., May 15, 2024 (GLOBE NEWSWIRE) — CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) today announced financial results for the three month period ended March 31, 2024.
“As anticipated, our first quarter 2024 revenue was 13% lower than first quarter 2023, driven primarily by the completion of deliveries of Raytheon’s Next Generation Jammer (“NGJ”) Mid Band Pods LRIP 2 in 2023. In addition, gross profit decreased by 260 basis points due to unfavorable year-over-year mix. We consumed $1.0 million in cash to repay our debt and prepare for the ramp-up associated with LRIP 3 of the NGJ Mid Band Pod program which will resume deliveries in the second half of the year. We expect 2024 to be another solid year building off our progress in 2023,” said Dorith Hakim, President and CEO.
Added Ms. Hakim, “We remain focused on exceeding our customers’ performance expectations and are confident in CPI Aero’s long term outlook as we continue to build on our backlog of $510 million as of March 31, 2024.”
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 words “expect, ”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, 2023 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
cpiaero@lhai.com CPI Aerostructures, Inc.
Andrew L. Davis
Chief Financial Officer
(631) 586-5200
adavis@cpiaero.com
www.cpiaero.com
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS March 31, 2024
(Unaudited) December 31, 2023 ASSETS Current Assets: Cash $3,018,068 $5,094,794 Accounts receivable, net 4,982,137 4,352,196 Contract assets, net 34,016,949 35,312,068 Inventory 1,281,219 1,436,647 Refundable income taxes 40,000 40,000 Prepaid expenses and other current assets 532,458 678,026 Total Current Assets 43,870,831 46,913,731 Operating lease right-of-use assets 4,277,724 4,740,193 Property and equipment, net 741,264 794,056 Deferred tax asset 19,906,903 19,938,124 Goodwill 1,784,254 1,784,254 Other assets 174,530 189,774 Total Assets $70,755,506 $74,360,132 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $11,864,561 $10,487,012 Accrued expenses 7,943,246 10,275,695 Contract liabilities 4,497,225 5,937,629 Loss reserve 133,206 337,351 Current portion of line of credit 2,160,000 2,400,000 Current portion of long-term debt 30,010 44,498 Operating lease liabilities, current 2,037,547 1,999,058 Income taxes payable 38,358 30,107 Total Current Liabilities 28,704,153 31,511,350 Line of credit, net of current portion 16,920,000 17,640,000 Long-term operating lease liabilities 2,581,128 3,100,571 Long-term debt, net of current portion 18,736 26,483 Total Liabilities 48,224,017 52,278,404 Commitments and Contingencies (see note 11) Shareholders’ Equity: Common stock – $.001 par value; authorized 50,000,000 shares, 12,784,768 and 12,771,434 shares, respectively, issued and outstanding 12,784 12,771 Additional paid-in capital 74,154,189 73,872,679 Accumulated deficit (51,635,484) (51,803,722)Total Shareholders’ Equity 22,531,489 22,081,728 Total Liabilities and Shareholders’ Equity $70,755,506 $74,360,132
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended
March 31, 2024 2023 Revenue $19,081,143 $22,016,668 Cost of sales 15,527,394 17,354,152 Gross profit 3,553,749 4,662,516 Selling, general and administrative expenses 2,713,904 2,869,058 Income from operations 839,845 1,793,458 Interest expense (632,135) (610,896)Income before provision for income taxes 207,710 1,182,562 Provision for income taxes 39,472 199,257 Net income $168,238 $983,305 Income per common share, basic $0.01 $0.08 Income per common share, diluted $0.01 $0.08 Shares used in computing income per common share: Basic 12,486,889 12,520,299 Diluted 12,680,584 12,608,189