Fourth Quarter 2023 vs. Fourth Quarter 2022
Revenue of $23.5 million compared to $24.1 million;Gross profit of $4.1 million compared to $3.9 million;Gross margin of 17.4% compared to 16.1%;Net income of $14.8 million compared to net income of $6.8 million;Earnings per share of $1.20 ($0.09 excluding the fourth quarter 2023 deferred tax asset valuation allowance reduction of $1.11) compared to earnings per share of $0.55 ($0.03 excluding the fourth quarter 2022 deferred tax asset valuation allowance reduction of $0.52);Cash flow from operations of $3.1 million compared to $0.1 million.
Full Year 2023 vs. Full Year 2022
Revenue of $86.5 million compared to $83.3 million;Gross profit of $17.1 million compared to $16.3 million;Gross margin of 19.7% compared to 19.6%;Net income of $17.2 million compared to $9.2 million;Earnings per share of $1.40 ($0.28 excluding the fourth quarter 2023 deferred tax asset valuation allowance reduction of $1.12) compared to $0.74 ($0.28 excluding the fourth quarter 2022 deferred tax asset valuation allowance reduction of $0.52 less the first quarter of 2022 severance accrual of $0.06);Cash flow from operations of $3.9 million compared to $0.9 million;Debt as of December 31, 2023 of $20.1 million compared to $22.8 million as of December 31, 2022.
EDGEWOOD, N.Y., April 05, 2024 (GLOBE NEWSWIRE) — CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) today announced financial results for the three and twelve month periods ended December 31, 2023.
“We reported solid full-year results, delivering 3.8% increased revenue and a 4.7% increase in gross profit in 2023. Our net income, including the deferred tax asset valuation allowance reduction of $14.2 million described below, was up 87.5% with EPS up 88.8% from prior year. We generated $3.9 million in cash flow from operations during 2023, which allowed us to reduce debt by $2.7 million,” said Dorith Hakim, President and CEO.
Added Ms. Hakim, “After reevaluating our net operating loss carryforwards (“NOLs”), and based on our performance outlook, we determined that the valuation allowance we maintain on our deferred tax asset should be reduced by $14.2 million, and we realized a tax benefit in the fourth quarter of 2023 of the same amount upon recording this reduction.”
“We ended the year with a strong backlog of $513.4 million, which includes multiple exciting new programs providing us an opportunity for continued growth in 2024. We remain confident in CPI Aero’s long-term outlook and look forward to the multiple opportunities ahead as we continue to build on our positive relationships with our customers.”
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,” “opportunities ahead,” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements include the Company’s expected financial results for the year ending December 31, 2024. 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 December 31,
2023 December 31,
2022 ASSETS Current Assets: Cash $5,094,794 $3,847,225 Accounts receivable, net 4,352,196 4,857,772 Insurance recovery receivable — 3,600,000 Contract assets, net 35,312,068 27,384,540 Inventory 1,436,647 2,493,069 Refundable income taxes 40,000 40,000 Prepaid expenses and other current assets 678,026 975,830 Total Current Assets 46,913,731 43,198,436 Operating lease right-of-use assets 4,740,193 6,526,627 Property and equipment, net 794,056 1,124,556 Deferred tax asset 19,938,124 6,574,463 Goodwill 1,784,254 1,784,254 Other assets 189,774 238,744 Total Assets $74,360,132 $59,447,080 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable $10,487,012 $8,029,996 Accrued expenses 10,275,695 7,344,590 Litigation settlement obligation — 3,600,000 Contract liabilities 5,937,629 6,001,726 Loss reserve 337,351 576,549 Current portion of line of credit 2,400,000 1,200,000 Current portion of long-term debt 44,498 1,719,766 Operating lease liabilities 1,999,058 1,817,811 Income taxes payable 30,107 11,396 Total Current Liabilities 31,511,350 30,301,834 Line of credit, net of current portion 17,640,000 19,800,000 Long-term operating lease liabilities 3,100,571 5,077,235 Long-term debt, net of current portion 26,483 70,981 Total Liabilities 52,278,404 55,250,050
Commitments and Contingencies (see note 16)
Shareholders’ Equity: Common stock – $.001 par value; authorized 50,000,000 shares, 12,771,434 and 12,506,795 shares, respectively, issued and outstanding 12,771 12,507 Additional paid-in capital 73,872,679 73,189,449 Accumulated deficit (51,803,722) (69,004,926)Total Shareholders’ Equity 22,081,728 4,197,030 Total Liabilities and Shareholders’ Equity $74,360,132 $59,447,080
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS Years ended December 31, 2023 and 2022 2023 2022 Revenue $86,466,321 $83,335,764 Cost of sales 69,400,693 67,031,502 Gross profit 17,065,628 16,304,262 Selling, general and administrative expenses 10,758,624 11,410,067 Income from operations 6,307,004 4,894,195 Interest expense (2,455,214) (2,271,101)Income before benefit for income taxes 3,851,790 2,623,094 Benefit from income taxes (13,349,414) (6,553,131)Net income $17,201,204 $9,176,225 Income per common share-basic $1.40 $0.74 Income per common share-diluted $1.38 $0.74 Shares used in computing income per common share: Basic 12,311,219 12,389,890 Diluted 12,471,961 12,389,890