EX-99.1 2 ex99-1.htm PRESS RELEASE

 

 

CPI AEROSTRUCTURES, INC. 8-K

 

Exhibit 99.1

 

CPI AEROSTRUCTURES REPORTS

FIRST QUARTER 2023 RESULTS

 

First Quarter 2023 vs. First Quarter 2022

·Revenue of $22.0 million compared to $20.1 million;
·Gross profit of $4.7 million compared to $3.4 million;
·Gross profit margin of 21.2% compared to 17.1%;
·Net income of $1.0 million compared to net loss of $(32,931) (excluding a first quarter 2022 $0.8 million severance accrual, the first quarter of 2022 would have been net income of $0.8 million);
·Earnings per share of $0.08 compared to loss per share of $(0.00) (excluding a first quarter of 2022 $0.06 per share severance accrual, the first quarter of 2022 would have been $0.06 per share);
·Cash flow from operations of $0.9 million compared to a use of $(2.4) million;

·         Debt as of March 31, 2023 of $22.1 million compared to $22.8 million as of December 31, 2022.

EDGEWOOD, N.Y. – May 15, 2023 – CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) today announced financial results for the three month period ended March 31, 2023.

“Our first quarter 2023 revenue was 9.5% higher than first quarter 2022 coupled with a 410 basis points increase in gross profit margin. In addition to stronger operational performance, we benefited from significant reductions in factory overhead and SG&A costs. We generated $3.3 million more in cash flow from operations this quarter compared to Q1 of 2022 due primarily to higher net income and an increase in customer progress payments to support the onboarding of our new programs. We reduced our debt in the first quarter 2023 by $0.7 million and entered into a twelfth amendment to our credit facility extending the maturity date of our revolving line of credit and term loan to November 30, 2024,” said Dorith Hakim, President and CEO. “We remain focused on exceeding our customers’ performance expectations and are confident in CPI Aero’s long term outlook as we continue to build on our backlog of $515.8 million as of March 31, 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.

 

 

Contacts:  
Investor Relations Counsel CPI Aerostructures, Inc.
LHA Investor Relations Andrew L. Davis
Jody Burfening Chief Financial Officer
(212) 838-3777 (631) 586-5200
cpiaero@lhai.com adavis@cpiaero.com
  www.cpiaero.com

 

 

 

 
 

 

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES

 CONSOLIDATED BALANCE SHEETS

 

 

   March 31,   
   2023
(Unaudited)		 

December 31,

2022

       
ASSETS          
Current Assets:          
Cash  $3,997,924   $3,847,225 
Accounts receivable, net   5,483,915    4,857,772 
Insurance recovery receivable   3,600,000    3,600,000 
Contract assets   30,362,951    27,384,540 
Inventory   2,334,567    2,493,069 
Refundable income taxes   40,000    40,000 
Prepaid expenses and other current assets   969,116    975,830 
Total Current Assets   46,788,473    43,198,436 
           
Operating lease right-of-use assets   6,071,158    6,526,627 
Property and equipment, net   1,051,536    1,124,556 
Deferred tax asset   6,374,470    6,574,463 
Goodwill   1,784,254    1,784,254 
Other assets   227,243    238,744 
Total Assets  $62,297,134   $59,447,080 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current Liabilities:          
Accounts payable  $10,812,974   $8,029,996 
Accrued expenses   5,779,242    7,344,590 
Litigation settlement obligation   3,600,000    3,600,000 
Contract liabilities   7,493,821    6,001,726 
Loss reserve   464,044    576,549 
Current portion of line of credit   1,920,000    1,200,000 
Current portion of long-term debt   1,097,841    1,719,766 
Operating lease liabilities   1,872,484    1,817,811 
Income tax payable   11,396    11,396 
Total Current Liabilities   33,051,802    30,301,834 
           
Line of credit   19,080,000    19,800,000 
Long-term operating lease liabilities   4,597,328    5,077,235 
Long-term debt, net of current portion   48,746    70,981 
Total Liabilities   56,777,876    55,250,050 
           
Shareholders’ Equity:          
Common stock - $.001 par value; authorized 50,000,000 shares, 12,526,042 and 12,506,795 shares, respectively, issued and outstanding   12,526    12,507 
Additional paid-in capital   73,528,353    73,189,449 
Accumulated deficit   (68,021,621)   (69,004,926)
Total Shareholders’ Equity   5,519,258    4,197,030 
Total Liabilities and Shareholders’ Equity  $62,297,134   $59,447,080 

 

 
 

 

 

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

   For the Three Months Ended March 31,
   2023  2022
           
Revenue  $22,016,668   $20,135,097 
Cost of sales   17,354,152    16,700,488 
Gross profit   4,662,516    3,434,609 
           
Selling, general and administrative expenses   2,869,058    3,137,657 
Income from operations   1,793,458    296,952 
           
Interest expense   610,896    328,608 
Income (loss) before provision for income taxes   1,182,562    (31,656)
Provision for income taxes   199,257    1,275 
Net income (loss)  $983,305    (32,931)
           
Income (loss) per common share, basic:          
    Income (loss) per common share-unrestricted  shares  $0.08    (0.00)
    Income (loss) per common share-restricted shares  $0.08    (0.00)
           
Income (loss) per common share, diluted  $0.08    (0.00)
           
Shares used in computing income (loss) per common share, basic:          
Unrestricted shares   12,281,115    12,072,838 
Restricted shares   239,184    290,305 
   Total shares   12,520,299    12,363,143 
           
Shares used in computing income (loss) per common share, diluted   12,608,189    12,363,143