Third Quarter 2024 vs. Third Quarter 2023
Revenue of $19.4 million compared to $20.4 million;Gross profit of $4.2 million compared to $3.7 million;Gross margin of 21.7% compared to 18.2%;Net income of $0.7 million compared to $0.3 million;Earnings per diluted share of $0.06 compared to $0.02;Adjusted EBITDA (1) of $1.7 million compared to $1.4 million;Cash flow provided by operating activities of $0.7 million compared to $0.0 million. Nine Months 2024 vs. Nine Months 2023
Revenue of $59.3 million compared to $63.0 million;Gross profit of $12.9 million compared to $13.0 million;Gross margin of 21.7% compared to 20.6%;Net income of $2.3 million compared to $2.4 million;Earnings per diluted share of $0.18 compared to $0.19;Adjusted EBITDA (1) of $5.5 million compared to $5.8 million;Cash flow used in operations of $(0.8) million compared to $0.8 million generated by operations;Debt as of September 30, 2024 of $18.2 million compared to $20.9 million at September, 2023. EDGEWOOD, N.Y., Nov. 13, 2024 (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, 2024.
“Our third quarter 2024 performance was stronger than third quarter 2023 on all fronts, while revenues were marginally lower. As a result of improved product mix and efficiencies, gross profit margin increased by 350 basis points and net income increased by 149%. In addition, our third quarter-adjusted EBITDA of $1.7 million is 15.6% higher than third quarter 2023. Our nine-month results remain strong on lower revenues.
“We continue to pay down our debt and reduced it by $2.7 million over the last twelve months. Our Debt-to-Adjusted EBITDA Ratio was 2.5, which marks our seventh consecutive quarter-end below 3.0, while we generated $0.7 million of cash from operations during the third quarter 2024,” said Dorith Hakim, President and CEO.
Added Ms. Hakim, “We are also pleased to receive an award from L3Harris for the Next Generation Jammer Low Band Pod, our first from this Tier 1 defense contractor, adding to our backlog of $506 million as of September 30, 2024. This award continues our success of winning new development programs and demonstrates the confidence top tier companies have in CPI Aero.”
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 “expect,” 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 CounselCPI Aerostructures, Inc.LHA Investor RelationsPhilip PassarelloJody BurfeningChief Financial Officer(212) 838-3777(631) 586-5200cpiaero@lhai.comppassarello@cpiaero.com www.cpiaero.com
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS September 30,
2024
(Unaudited) December 31,
2023
ASSETS Current Assets: Cash$1,708,987 $5,094,794 Accounts receivable, net 6,574,853 4,352,196 Contract assets, net 33,618,971 35,312,068 Inventory 1,052,286 1,436,647 Refundable income taxes 40,000 40,000 Prepaid expenses and other current assets 377,858 678,026 Total Current Assets 43,372,955 46,913,731 Operating lease right-of-use assets 3,334,992 4,740,193 Property and equipment, net 819,078 794,056 Deferred tax asset 19,425,407 19,938,124 Goodwill 1,784,254 1,784,254 Other assets 151,077 189,774 Total Assets$68,887,763 $74,360,132 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Accounts payable$14,994,451 $10,487,012 Accrued expenses 5,742,854 10,275,695 Contract liabilities 1,390,127 5,937,629 Loss reserve 24,888 337,351 Current portion of line of credit 2,730,000 2,400,000 Current portion of long-term debt 31,330 44,498 Operating lease liabilities, current 2,118,329 1,999,058 Income taxes payable 28,748 30,107 Total Current Liabilities 27,060,727 31,511,350 Line of credit, net of current portion 15,390,000 17,640,000 Long-term operating lease liabilities 1,494,942 3,100,571 Long-term debt, net of current portion 2,734 26,483 Total Liabilities 43,948,403 52,278,404 Commitments and Contingencies (see note 11) Shareholders’ Equity: Common stock – $.001 par value; authorized 50,000,000 shares, 12,933,408 and
12,771,434 shares, respectively, issued and outstanding 12,933 12,771 Additional paid-in capital 74,402,288 73,872,679 Accumulated deficit (49,475,861) (51,803,722) Total Shareholders’ Equity 24,939,360 22,081,728 Total Liabilities and Shareholders’ Equity$68,887,763 $74,360,132
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2024 2023 2024 2023
Revenue$19,419,879 $20,399,369 $59,311,356 $62,963,592 Cost of sales 15,200,210 16,693,279 46,422,514 49,990,986 Gross profit 4,219,669 3,706,090 12,888,842 12,972,606 Selling, general and administrative expenses 2,742,036 2,535,065 8,231,875 8,210,603 Income from operations 1,477,633 1,171,025 4,656,967 4,762,003 Interest expense (573,366) (663,857) (1,793,472) (1,816,408) Income before provision for income taxes 904,267 507,168 2,863,495 2,945,595 Provision for income taxes 154,590 205,804 535,634 503,850 Net income$749,677 $301,364 $2,327,861 $2,441,745 Income per common share, basic$0.06 $0.02 $0.19 $0.19 Income per common share, diluted$0.06 $0.02 $0.18 $0.19
