Third Quarter 2022 vs. Third Quarter 2021
- Revenue of $20.2 million compared to $23.9 million;
- Gross profit of $5.3 million compared to $3.7 million;
- Gross margin of 26.4% compared to 15.3%;
- Net income of $1.9 million compared to $5.4 million ($0.6 million excluding $4.8 million in PPP loan forgiveness);
- Earnings per diluted share of $0.15 compared to $0.44 ($0.05 excluding $0.39 in PPP loan forgiveness);
- Cash flow from operations of $2.9 million compared to $1.2 million.
Nine Months 2022 vs. Nine Months 2021
- Revenue of $59.3 million compared to $77.0 million;
- Gross profit of $12.4 million compared to $12.2 million;
- Gross margin of 21.0% compared to 15.8%;
- Net income of $2.3 million ($3.1 million excluding the first quarter severance accrual of $0.8 million) compared to $7.3 million ($2.5 million excluding $4.8 million in PPP loan forgiveness);
- Earnings per diluted share of $0.19 ($0.25 excluding the first quarter severance accrual of $0.06) compared to $0.60 ($0.21 excluding $0.39 in PPP loan forgiveness);
- Cash flow from operations of $0.8 million compared to a use of $(1.3) million;
- Debt as of September 30, 2022 of $23.7 million compared to $27.1 million as of September 30, 2021.
EDGEWOOD, N.Y., Nov. 21, 2022 (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, 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 Counsel LHA Investor Relations Jody Burfening (212) 838-3777 cpiaero@lhai.com | CPI Aerostructures, Inc. Andrew L. Davis Chief Financial Officer (631) 586-5200 adavis@cpiaero.com www.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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended September 30, | For the Nine Months Ended September 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 | ||||||||||||||||||||||||||
