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CPI Aerostructures Reports Third Quarter and Nine Month 2022 Results

CPI Aerostructures, Inc.
CPI Aerostructures, Inc.

Third Quarter 2022 vs. Third Quarter 2021

  • Revenue of $20.2 million compared to $23.9 million;

  • Gross profit of $5.3 million compared to $3.7 million;

  • Gross margin of 26.4% compared to 15.3%;

  • Net income of $1.9 million compared to $5.4 million ($0.6 million excluding $4.8 million in PPP loan forgiveness);

  • Earnings per diluted share of $0.15 compared to $0.44 ($0.05 excluding $0.39 in PPP loan forgiveness);

  • Cash flow from operations of $2.9 million compared to $1.2 million.

Nine Months 2022 vs. Nine Months 2021

  • Revenue of $59.3 million compared to $77.0 million;

  • Gross profit of $12.4 million compared to $12.2 million;

  • Gross margin of 21.0% compared to 15.8%;

  • Net income of $2.3 million ($3.1 million excluding the first quarter severance accrual of $0.8 million) compared to $7.3 million ($2.5 million excluding $4.8 million in PPP loan forgiveness);

  • Earnings per diluted share of $0.19 ($0.25 excluding the first quarter severance accrual of $0.06) compared to $0.60 ($0.21 excluding $0.39 in PPP loan forgiveness);

  • Cash flow from operations of $0.8 million compared to a use of $(1.3) million;

  • Debt as of September 30, 2022 of $23.7 million compared to $27.1 million as of September 30, 2021.

EDGEWOOD, N.Y., Nov. 21, 2022 (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, 2022.

“Today we filed our third quarter 2022 results on Form 10-Q for the period ended September 30, 2022. While our third quarter 2022 revenue was lower than third quarter 2021, we significantly improved our profitability. Our gross profit margin for third quarter 2022 increased to 26.4% due to favorable mix and the achievement of operational efficiencies; our net income was 9.2% of sales compared to 2.6% excluding the PPP loan forgiveness for the third quarter of 2021,” said Dorith Hakim, President and CEO.

Added Ms. Hakim, “We continue to generate positive cash flow from operations and have lowered our debt by $3.4 million compared to the third quarter of 2021.”

Concluded Ms. Hakim, “We are making great progress in on-boarding our new programs and plan to start first deliveries over the next nine months. With a total backlog of $501 million as of September 30, 2022, we remain confident in CPI Aero’s long-term outlook and are looking forward to the opportunities ahead as we build on our reputation for high quality and reliable performance.”

About CPI Aero

CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance and Electronic Warfare pod systems, primarily for 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 Aero is also 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 “plan,” remain confident,” “outlook,” “opportunities ahead,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words Forward-looking statements involve risks and uncertainties, and actual results could vary materially from 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. 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, 2021 and in the Company’s other filings 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.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

 

 

September 30,
2022
(Unaudited)

 

 

December 31,
2021

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash

 

$

4,627,379

 

 

$

6,308,866

 

Accounts receivable, net

 

 

8,400,967

 

 

 

4,967,714

 

Insurance recovery receivable

 

 

3,600,000

 

 

 

2,850,000

 

Contract assets

 

 

24,157,141

 

 

 

24,459,339

 

Inventory

 

 

3,108,241

 

 

 

4,028,925

 

Refundable income taxes

 

 

42,335

 

 

 

40,000

 

Prepaid expenses and other current assets

 

 

617,188

 

 

 

625,075

 

Total current assets

 

 

44,553,251

 

 

 

43,279,919

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

6,736,441

 

 

 

7,796,768

 

Property and equipment, net

 

 

1,250,304

 

 

 

1,646,863

 

Intangibles, net

 

 

31,250

 

 

 

125,000

 

Goodwill

 

 

1,784,254

 

 

 

1,784,254

 

Other assets

 

 

282,299

 

 

 

372,741

 

Total assets

 

$

54,637,799

 

 

$

55,005,545

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

12,768,638

 

 

$

10,429,018

 

Accrued expenses

 

 

4,564,515

 

 

 

6,102,587

 

Litigation settlement obligation

 

 

3,600,000

 

 

 

3,003,259

 

Contract liabilities

 

 

5,041,818

 

 

 

5,122,766

 

Loss reserve

 

 

635,406

 

 

 

1,495,714

 

Current portion of long-term debt

 

 

2,591,928

 

 

 

3,365,181

 

Operating lease liabilities

 

 

1,728,707

 

 

 

1,580,453

 

Income tax payable

 

 

3,750

 

 

 

5,165

 

Total current liabilities

 

 

30,934,762

 

 

 

31,104,143

 

 

 

 

 

 

 

 

 

 

Line of credit

 

 

21,000,000

 

 

 

21,250,000

 

Long-term operating lease liabilities

 

 

5,345,919

 

 

 

6,445,728

 

Long-term debt, net of current portion

 

 

100,375

 

 

 

1,540,747

 

Total liabilities

 

 

57,381,056

 

 

 

60,340,618

 

 

 

 

 

 

 

 

 

 

Shareholders’ Deficit:

 

 

 

 

 

 

 

 

Common stock - $.001 par value; authorized 50,000,000 shares, 12,325,360 and 12,335,683 shares, respectively, issued and outstanding

 

 

12,325

 

 

 

12,336

 

Additional paid-in capital

 

 

73,082,112

 

 

 

72,833,742

 

Accumulated deficit

 

 

(75,837,694

)

 

 

(78,181,151

)

Total Shareholders’ Deficit

 

 

(2,743,257

)

 

 

(5,335,073

)

Total Liabilities and Shareholders’ Deficit

 

$

54,637,799

 

 

$

55,005,545

 


CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Revenue

 

$

20,196,913

 

 

 

$

23,898,748

 

 

 

$

59,257,416

 

 

 

$

77,018,684

 

 

Cost of sales

 

 

14,869,100

 

 

 

 

20,246,764

 

 

 

 

46,835,304

 

 

 

 

64,850,010

 

 

Gross profit

 

 

5,327,813

 

 

 

 

3,651,984

 

 

 

 

12,422,112

 

 

 

 

12,168,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

2,744,265

 

 

 

 

2,765,849

 

 

 

 

8,579,314

 

 

 

 

8,834,343

 

 

Income from operations

 

 

2,583,548

 

 

 

 

886,135

 

 

 

 

3,842,798

 

 

 

 

3,334,331

 

 

Other income

 

 

 

 

 

 

4,795,000

 

 

 

 

 

 

 

 

4,795,000

 

 

Interest expense

 

 

(721,046

)

 

 

 

(252,506

)

 

 

 

(1,488,091

)

 

 

 

(840,680

)

 

Income before provision for income taxes

 

 

1,862,502

 

 

 

 

5,428,629

 

 

 

 

2,354,707

 

 

 

 

7,288,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

3,750

 

 

 

 

3,374

 

 

 

 

11,250

 

 

 

 

7,702

 

 

Net income

 

$

1,858,752

 

 

 

$

5,425,255

 

 

 

$

2,343,457

 

 

 

$

7,280,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per common share – basic

 

$

0.15

 

 

 

$

0.44

 

 

 

$

0.19

 

 

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per common share – diluted

 

$

0.15

 

 

 

$

0.44

 

 

 

$

0.19

 

 

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

12,301,752

 

 

 

 

12,286,712

 

 

 

 

12,362,960

 

 

 

 

12,153,838

 

 

Diluted

 

 

12,349,283

 

 

 

 

12,320,588

 

 

 

 

12,410,491

 

 

 

 

12,187,714

 

 


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