CPI Aerostructures Announces 2017 Second Quarter Financial Results

 

August 8, 2017

EDGEWOOD, N.Y. -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American:CVU) today announced financial results for the three-month and six-month periods ended June 30, 2017.

 

2Q 2017 vs. 2Q 2016

  • Revenue was $16.7 million compared to $22.3 million;
  • Gross profit was $3.7 million compared to $5.0 million;
  • Pre-tax income was $1.2 million compared to $2.8 million;
  • Net income was $0.8 million compared to $1.8 million;
  • Earnings per diluted share were $0.09 per diluted share compared to $0.21 per diluted share;
  • Cash flow from operations was $1.8 million compared to $(1.6) million; and
  • Total backlog at $394.8 million with multi-year defense contracts comprising 80%

 

1H 2017 vs. 1H 2016

  • Revenue was $36.8 million compared to $35.0 million;
  • Gross profit (loss) was $8.2 million compared to $(6.6) million;
  • Pre-tax income (loss) was $3.2 million compared to $(11.8) million;
  • Net income (loss) was $2.0 million compared to $(7.4) million;
  • Earnings (loss) per diluted share of $0.23 compared to $(0.86) per diluted share; and
  • Cash flow from operations was $(1.1) million compared to $(7.3) million

 

“We delivered strong financial performance in the second quarter that exceeded our profit goal,” said Douglas McCrosson, president and chief executive officer of CPI Aero. “Earnings were solid as we continue to see the results of cost reduction and process improvement initiatives and despite the revenue pull forward we reported last quarter that shifted sales from our F-16 program to the first quarter from the second. Cash flow from operations was particularly strong as investments in enhanced ERP tools, our commitment to lean manufacturing principles and a disciplined approach to cash management took hold. We had a $3.5 million reduction in inventory in the second quarter and a $5.7 million reduction in inventory year to date, and now expect to be cash flow positive in each of the third and fourth quarters of this year. This would mark a substantial turnaround in cash flow in 2017 compared to a use of cash in 2016.”

 

“We continued to execute on our defense market strategy, securing new orders from UTC Aerospace Systems for their new TacSAR surveillance system and from Sikorsky on its MH-53E platform. We also delivered our first products to Lockheed Martin for the F-35 as our lock assembly program entered its production phase. Looking ahead, we see signs that contracts are starting to flow to the prime contractors and down through the supply chain. As an example, following the signing of the U.S. Army’s ‘Multi-Year IX’ Black Hawk contract with Sikorsky in June, we were subsequently awarded a five-year, $21 million supply agreement by Sikorsky for fuel panel assemblies for the Black Hawk. Furthermore, recent wins, particularly in pod-based systems, have raised our profile in the marketplace and garnered considerable customer interest in CPI Aero at the Paris Air Show. We left Paris with confidence that the defense market is strong and growing, both here and abroad, and that CPI Aero is a valued and well-respected Tier 1 defense subcontractor. Our defense exposure and backlog, together with improving defense fundamentals and consistent execution across all facets of our business, place us firmly on a growth trajectory,” concluded Mr. McCrosson.

 

Financial Outlook

CPI Aero reaffirms its prior financial guidance for fiscal 2017 of:

  • Revenue in the range of $82.5 million and $87.0 million;
  • Pre-tax income to be at the high end of a range of $8.1 million to $8.4 million.

 

Conference Call

Management will host a conference call on Tuesday, August 8, 2017, at 8:30 a.m. ET to discuss these results as well as recent corporate developments. After opening remarks, there will be a question and answer period. Interested parties may participate in the call by dialing 844-378-6486 or 412-542-4181. Please call in 10 minutes before the conference call is scheduled to begin and ask for the CPI Aero call. The conference call will also be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the live call, please go to www.cpiaero.com, click on the Investor Relations section, then to the Event Calendar. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days.

 

About CPI Aero

CPI Aero is a U.S. manufacturer of structural assemblies and value-added kits for fixed wing and rotary wing aircraft in both the commercial aerospace and defense markets.  CPI Aero also manufactures pod-based, airborne avionics systems for Intelligence Surveillance and Reconnaissance (ISR), Electronic Warfare (EW) and Radar end-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. CPI Aero is included in the Russell Microcap® Index.

The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero's SEC reports, including CPI Aero's Form 10-K for the year ended December 31, 2016.

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

 

 

CPI Aerostructures, Inc.

STATEMENTS OF OPERATIONS

CPI Aerostructures, Inc.

CONDENSED BALANCE SHEETS

Contact:

Vincent Palazzolo

Chief Financial Officer

CPI Aero

(631) 586-5200

www.cpiaero.com

 

 

Jody Burfening/Sanjay M. Hurry

LHA

800 Third Avenue

New York, NY 10022

(212) 838-3777

cpiaero@lhai.com

share on:

© Copyright 2016 CPI Aerostructures, Inc.

Website by

91 Heartland Boulevard

Edgewood, NY 11717

Phone: 631-586-5200

Fax: 631-586-5840