CPI Aerostructures Reports Third Quarter and Nine Month 2022 Results
November 21 2022 - 7:00AM
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 CounselLHA Investor
RelationsJody Burfening(212) 838-3777cpiaero@lhai.com |
CPI Aerostructures, Inc.Andrew L. DavisChief
Financial Officer(631) 586-5200
adavis@cpiaero.comwww.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
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months EndedSeptember
30, |
|
|
For the Nine Months EndedSeptember
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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