CPI Aerostructures Reports Fourth Quarter and Full Year 2022 Results
CPI Aerostructures (CVU) reported its Q4 2022 and full year 2022 financial results on April 14, 2023.
In Q4, revenue decreased to $24.1 million, down from $26.4 million in Q4 2021, but gross profit increased to $3.9 million from $2.8 million. The gross margin improved to 16.1%, while net income soared to $6.8 million, a significant turnaround from a net loss of $(0.5) million in the same quarter last year.
For 2022, total revenue was $83.3 million, a decline from $103.4 million in 2021, yet net income rose to $9.2 million, up from $6.8 million. The company also reported a decrease in debt from $26.2 million to $22.8 million.
- Net income for Q4 2022 was $6.8 million, compared to a net loss of $(0.5) million in Q4 2021.
- Gross profit for Q4 2022 increased to $3.9 million from $2.8 million in Q4 2021.
- Total backlog as of December 31, 2022, rose to $514.5 million from $501.7 million in 2021.
- Debt decreased from $26.2 million in 2021 to $22.8 million in 2022.
- The company regained compliance with NYSE American continued listing standards.
- Revenue declined year-over-year, from $103.4 million in 2021 to $83.3 million in 2022.
- Cash flow from operations dropped from $4.1 million in Q4 2021 to $0.1 million in Q4 2022.
Fourth Quarter 2022 vs. Fourth Quarter 2021
- Revenue of
$24.1 million compared to$26.4 million ; - Gross profit of
$3.9 million compared to$2.8 million ; - Gross margin of
16.1% compared to10.8% ; - Net income of
$6.8 million ($0.3 million excluding the fourth quarter 2022 deferred tax asset valuation allowance reduction of$6.5 million ) compared to net loss of$(0.5) million ; - Earnings per share of
$0.55 ($0.03 excluding the fourth quarter 2022 deferred tax asset valuation allowance reduction of$0.52) compared to loss per share of$(0.04) ; - Cash flow from operations of
$0.1 million compared to$4.1 million .
Full Year 2022 vs. Full Year 2021
- Revenue of
$83.3 million compared to$103.4 million ; - Gross profit of
$16.3 million compared to$15.0 million ; - Gross margin of
19.6% compared to14.5% ; - Net income of
$9.2 million ($3.5 million excluding the fourth quarter 2022 deferred tax asset valuation allowance reduction of$6.5 million and the first quarter 2022 severance accrual of$0.8 million ) compared to$6.8 million ($2.0 million excluding the third quarter 2021$4.8 million in PPP loan forgiveness); - Earnings per share of
$0.74 ($0.28 excluding the fourth quarter 2022 deferred tax asset valuation allowance reduction of$0.52 and the first quarter 2022 severance accrual of$0.06) compared to$0.56 ($0.17 excluding the third quarter 2021$0.39 in PPP loan forgiveness); - Cash flow from operations of
$0.9 million compared to$2.8 million ; - Debt as of December 31, 2022 of
$22.8 million compared to$26.2 million as of December 31, 2021.
EDGEWOOD, N.Y., April 14, 2023 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) today announced financial results for the three and twelve month periods ended December 31, 2022.
“We closed the year with results from operations and EPS exceeding our 2021 performance,” said Dorith Hakim, President and CEO. “The combination of the reduction in non-profitable programs and operational performance improvements resulted in a 5.1 percentage point increase in gross margin delivering
Added Ms. Hakim, “After reevaluating our net operating loss carryforwards (“NOLs”), and based on our performance outlook, we determined that the valuation allowance we maintain on our deferred tax asset should be reduced by
Ms. Hakim noted that “the Company’s financial performance has resulted in the Company regaining compliance with the continued listing standards of Section 1003(a)(i) and 1003(a)(ii) of the NYSE American Company Guide. At December 31, 2022, the Company had income from continuing operations for its last two fiscal years, shareholders’ equity of
Concluded Ms. Hakim, “We have completed a number of programs during 2022 and started ramping up our manufacturing capacity in support of newer programs. As a result, we expect slightly higher revenue in 2023 while sustaining profitability and positive operating cash flow for the year. 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 for our customers.”
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 words “expect,” ”outlook,” “opportunities ahead,” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements include the Company’s expected financial results for the year ending December 31, 2023. 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 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
| December 31, 2022 | December 31, 2021 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 3,847,225 | $ | 6,308,866 | ||||
| Accounts receivable, net | 4,857,772 | 4,967,714 | ||||||
| Insurance recovery receivable | 3,600,000 | 2,850,000 | ||||||
| Contract assets | 27,384,540 | 24,459,339 | ||||||
| Inventory | 2,493,069 | 4,028,925 | ||||||
| Refundable income taxes | 40,000 | 40,000 | ||||||
| Prepaid expenses and other current assets | 975,830 | 625,075 | ||||||
| Total Current Assets | 43,198,436 | 43,279,919 | ||||||
| Operating lease right-of-use assets | 6,526,627 | 7,796,768 | ||||||
| Property and equipment, net | 1,124,556 | 1,646,863 | ||||||
| Deferred tax asset | 6,574,463 | — | ||||||
| Intangibles, net | — | 125,000 | ||||||
| Goodwill | 1,784,254 | 1,784,254 | ||||||
| Other assets | 238,744 | 372,741 | ||||||
| Total Assets | $ | 59,447,080 | $ | 55,005,545 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 8,029,996 | $ | 10,429,018 | ||||
| Accrued expenses | 7,344,590 | 6,102,587 | ||||||
| Litigation settlement obligation | 3,600,000 | 3,003,259 | ||||||
| Contract liabilities | 6,001,726 | 5,122,766 | ||||||
| Loss reserve | 576,549 | 1,495,714 | ||||||
| Current portion of line of credit | 1,200,000 | — | ||||||
| Current portion of long-term debt | 1,719,766 | 3,365,181 | ||||||
| Operating lease liabilities | 1,817,811 | 1,580,453 | ||||||
| Income taxes payable | 11,396 | 5,165 | ||||||
| Total Current Liabilities | 30,301,834 | 31,104,143 | ||||||
| Line of credit, net of current portion | 19,800,000 | 21,250,000 | ||||||
| Long-term operating lease liabilities | 5,077,235 | 6,445,728 | ||||||
| Long-term debt, net of current portion | 70,981 | 1,540,747 | ||||||
| Total Liabilities | 55,250,050 | 60,340,618 | ||||||
| Shareholders’ Equity (Deficit): | ||||||||
| Common stock - $.001 par value; authorized 50,000,000 shares, 12,506,795 and 12,335,683 shares, respectively, issued and outstanding | 12,507 | 12,336 | ||||||
| Additional paid-in capital | 73,189,449 | 72,833,742 | ||||||
| Accumulated deficit | (69,004,926 | ) | (78,181,151 | ) | ||||
| Total Shareholders’ Equity (Deficit) | 4,197,030 | (5,335,073 | ) | |||||
| Total Liabilities and Shareholders’ Equity (Deficit) | $ | 59,447,080 | $ | 55,005,545 | ||||
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| 2022 | 2021 | |||||||
| Revenue | $ | 83,335,764 | $ | 103,369,544 | ||||
| Cost of sales | 67,031,502 | 88,364,452 | ||||||
| Gross profit | 16,304,262 | 15,005,092 | ||||||
| Selling, general and administrative expenses | 11,410,067 | 11,823,921 | ||||||
| Income from operations | 4,894,195 | 3,181,171 | ||||||
| Other income (expense): | ||||||||
| Other income | — | 4,795,000 | ||||||
| Interest expense | (2,271,101 | ) | (1,141,189 | ) | ||||
| Total other income (expense), net | (2,271,101 | ) | 3,653,811 | |||||
| Income before provision for income taxes | 2,623,094 | 6,834,982 | ||||||
| Provision for (benefit from) income taxes | (6,553,131 | ) | 14,609 | |||||
| Net income | $ | 9,176,225 | $ | 6,820,373 | ||||
| Income per common share-unrestricted shares | $ | 0.74 | $ | 0.56 | ||||
| Income per common share-restricted shares | $ | 0.74 | $ | 0.56 | ||||
| Shares used in computing income per common share: | ||||||||
| Unrestricted shares | 12,286,781 | 11,960,134 | ||||||
| Restricted shares | 103,109 | 233,692 | ||||||
| Total shares | 12,389,890 | 12,193,826 | ||||||
FAQ
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