05/10/2019 | Press release | Archived content
Revenue of $25.6 million, up 41%
Gross Profit of $5.4 million, up 35%
Net Income of $1.7 million, up 31%
EDGEWOOD, N.Y., May 10, 2019 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ('CPI Aero®') (NYSE American: CVU) today announced financial results for the three month period ended March 31, 2019.
First Quarter 2019 vs. First Quarter 2018
'2019 is off to a very strong start with higher revenue, gross profit and net income year-over-year and excellent execution on key strategic priorities for the year. We completed the consolidation of Welding Metallurgy, Inc. ('WMI') into our facility on schedule and we have been hitting our customer's production milestones on the new programs that cumulatively underpin our growth expectations this year and beyond,' stated Douglas McCrosson, president and CEO of CPI Aero.
'Revenue growth in the quarter was driven predominantly by the increase in production rate of our Next Generation Jammer Pod program for Raytheon and revenue from our WMI subsidiary. We also had a strong booking quarter for both CPI Aero and WMI. Our consolidated shipping backlog increased by approximately 14% during the quarter and now is approximately $134 million, for a book-to-bill ratio of approximately 2.0 during the quarter.'
'Looking ahead, we have several revenue catalysts on the horizon that give us confidence for the balance of 2019 and strength going into 2020,' continued Mr. McCrosson. 'For example, we have begun performing work on the F-16V Rudder Island and Drag Chute Canister assemblies that were awarded to us from Lockheed Martin earlier this year. We anticipate receiving authorization during the next several months from Raytheon to proceed with additional production orders of Next Generation Jammer pods. And, the U.S. Navy recently awarded Northrop Grumman a multi-billion dollar contract for an additional 24 E-2Ds. We have previously announced an $8.1 million contract for advanced funding to manufacture kits used to produce outer wing panels for the E-2D. With Northrop's recent Navy award we expect the value of our contract to approach $47.5 million over the next four years.'
'The recent publication of the 2020 defense budget request includes funding for the A-10 re-winging program, one of the largest potential future awards in our 2019 bid pipeline. The Air Force is expected to select a prime contractor for this effort within the next couple of months. As I've stated before, CPI Aero has extensive experience on the A-10 and on the new wing specifically, so we feel we have a competitive edge to be part of the winning contractor's supply chain. The 2020 defense budget request also indicates growth in proposed funding levels for technologies and capabilities that CPI Aero has been making strategic business development priorities, including electronic warfare (EW), intelligence, reconnaissance and surveillance (ISR), advanced missiles, and autonomous systems. We are currently preparing proposals in response to customer demand in these areas.'
Concluded Mr. McCrosson, 'Defense prime contractors favor companies with a broader set of capabilities and have experience managing large programs in a competitive pricing environment. CPI Aero is proud to have earned a reputation as a trusted Tier 1 supply chain partner to the world's leading aerospace and defense companies. The addition of WMI and its specialized capabilities further add to our value proposition. We believe we are very well positioned to leverage market tailwinds to drive continued growth.'
CPI Aero reaffirms its prior guidance for fiscal 2019 of:
Explanatory Note Regarding Financial Information (Note 1 of Consolidated Financial Statements)
The financial information contained in this release should be read in conjunction with the financial information contained in CPI Aero's Annual Report filed on Form 10-K with the Securities and Exchange Commission on April 1, 2019.
Management will host a conference call on Friday, May 10, 2019, at 8:30 a.m. ET to discuss these results as well as recent corporate developments. After opening remarks, there will be a question and answer period. Interested parties may participate in the call by dialing 844-378-6486 or 412-542-4181. Please call in 10 minutes before the conference call is scheduled to begin and ask for the CPI Aero call. The conference call will also be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the live call, please go to www.cpiaero.com, click on the Investor Relations section, then to the Event Calendar. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days.
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. CPI Aero is included in the Russell Microcap® Index.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero's SEC reports, including CPI Aero's Form 10-K for the year ended December 31, 2018.
Vincent Palazzolo Investor Relations Counsel:
Chief Financial Officer LHA Investor Relations
CPI Aero Sanjay M. Hurry
(631) 586-5200 (212) 838-3777
www.cpiaero.com [email protected]
- Tables to Follow -
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
|For the Three Months Ended March 31,|
|Cost of revenue||20,167,721||14,141,755|
|Selling, general and administrative expenses||2,806,443||2,049,840|
|Income from operations||2,609,367||2,000,028|
|Income before provision for income taxes||2,098,598||1,552,765|
|Provision for income taxes||440,000||296,000|
|Other comprehensive income (loss) net of tax -|
|Change in unrealized gain-(loss) interest rate swap||-||(5,800)|
|Income per common share - basic||$0.14||$0.14|
Income per common share - diluted
|Shares used in computing earnings per common share:|
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|March 31,||December 31,|
Accounts receivable, net of allowance for doubtful accounts of $275,000 as of March
31, 2019 and December 31, 2018
|Refundable income taxes||435,000||435,000|
|Prepaid expenses and other current assets||1,205,297||1,972,630|
|Total current assets||142,681,526||140,204,589|
|Operating lease right-of-use assets||4,927,810||-|
|Property and equipment, net||3,533,038||2,545,192|
|Refundable income taxes||-||435,000|
|Deferred income taxes||486,664||279,318|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Current portion of long-term debt||2,506,099||2,434,981|
|Operating lease liabilities||1,593,243||-|
|Line of credit||23,738,685||24,038,685|
|Income tax payable||253,798||115,000|
|Total current liabilities||45,042,116||41,854,413|
|Long-term operating lease liabilities||3,837,678||-|
|Long-term debt, net of current portion||3,601,883||3,876,238|
|Deferred income taxes||4,028,553||4,028,553|
|Common stock - $.001 par value; authorized 50,000,000 shares,|
|11,736,386 and 11,718,246 shares, respectively issued and outstanding||11,736||11,715|
|Additional paid-in capital||70,917,811||70,651,416|
|Total Shareholders' Equity||95,348,360||93,423,346|
|Total Liabilities and Shareholders' Equity||$151,858,590||$143,713,674|