CPI Aerostructures Reports Third Quarter and Nine Month 2023 Results
CPI Aerostructures, Inc. (CVU) announced its financial results for Q3 and nine months ending September 30, 2023. Q3 revenue was $20.4 million, gross profit $3.7 million, and net income $0.3 million, showing a decrease from the same period in 2022. Nine-month revenue was $63.0 million, gross profit $13.0 million, and net income $2.4 million, with a slight increase from 2022. The company highlighted supply chain challenges impacting throughput and gross profit, but expressed confidence in long-term outlook based on corrective actions and backlog increase.
Positive
Revenue for the nine months ending September 30, 2023, increased by 6.3% compared to the same period in 2022, reaching $63.0 million.
The company used cash flow from operations to pay off its term loan in full, reducing total debt by $2.8 million compared to the prior year.
CPI Aero's total backlog as of September 30, 2023, was $503 million, indicating a strong future pipeline of business.
Negative
Gross profit and net income for Q3 2023 decreased compared to the same period in 2022, indicating a short-term decline in performance.
Supply chain technical challenges negatively impacted the company's throughput and gross profit during the quarter, signaling potential operational vulnerabilities.
11/14/2023 - 04:50 PM
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 .
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
September 30, (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.'s Q3 2023 revenue was $20.4 million, and gross profit was $3.7 million.
CPI Aerostructures, Inc.'s nine-month revenue for 2023 was $63.0 million, showing a 6.3% increase compared to the same period in 2022.
Supply chain technical challenges negatively impacted CPI Aerostructures, Inc.'s throughput and gross profit during Q3 2023, leading to a decrease in performance compared to the same period in 2022.
CPI Aerostructures, Inc.'s total backlog as of September 30, 2023, was $503 million, indicating a strong future pipeline of business.
