CPI Aerostructures Reports Second Quarter And Six Month 2021 Results
CPI Aerostructures, Inc. (CVU) reported strong financial results for Q2 2021, with revenue of $22.3 million, up 13.1% from Q2 2020. Gross profit nearly doubled to $3.6 million, yielding a gross margin of 16.1%. The company achieved net income of $0.6 million, a turnaround from a net loss of $(1.4) million last year. For the first half of 2021, revenue rose 45% to $53.1 million, with net income of $1.9 million compared to a loss of $(4.7) million. The funded backlog stood at $157 million, with expectations for over $500 million total by year-end.
- Revenue increased to $22.3 million, a 13.1% rise from Q2 2020.
- Gross profit nearly doubled, reaching $3.6 million, resulting in a gross margin of 16.1%.
- Net income stood at $0.6 million, a significant improvement from a net loss of $(1.4) million.
- For six months, revenue grew 45% to $53.1 million, with net income of $1.9 million.
- Funded backlog was approximately $157 million as of June 30, 2021, with expectations for over $500 million total by end of 2021.
- Revenue from commercial aviation contracts declined 47%.
- Funded backlog decreased by 23% compared to June 30, 2020.
Second Quarter 2021 vs. Second Quarter 2020 (Re-stated)
- Revenue of
$22.3 million compared to$19.7 million ; - Gross profit of
$3.6 million compared to$1.8 million ; - Gross margin of
16.1% compared to9.2% ; - Net income of
$0.6 million compared to net loss of$(1.4) million ; - Earnings per diluted share of
$0.05 compared to loss per diluted share of$(0.11) ; - Cash flow from operations of
$2.4 million compared to$0.6 million .
Six Months 2021 vs. Six Months 2020 (Re-stated)
- Revenue of
$53.1 million compared to$36.6 million ; - Gross profit of
$8.5 million compared to$2.0 million ; - Gross margin of
16.0% compared to5.4% ; - Net income of
$1.9 million compared to net loss of$(4.7) million ; - Earnings per diluted share of
$0.15 compared to loss per diluted share of$(0.40) ; - Cash flow used by operations of
$(2.5) million compared to a use of$(0.9) million ; - Debt as of June 30, 2021 of
$32.5 million , including our$4.8 million Paycheck Protection Loan that was forgiven in 3Q21, compared to$33.4 million as of December 31, 2020.
EDGEWOOD, N.Y., April 19, 2022 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (NYSE American: CVU) today announced financial results for the three and six month periods ended June 30, 2021.
“Our reported results for the first half of 2021 came in at the high end of the estimated ranges that were previously published” said Dorith Hakim, president and CEO. “The combination of a
“For the second quarter, cash flow from operations was
Added Ms. Hakim, “Funded backlog as of June 30, 2021 of approximately
“In addition to reaffirming our expectation for generating positive cash flow from operations for 2021, we continue to expect to report higher revenue and improved profitability. Based on an updated review of our program portfolio, we expect to report 2021 revenue of greater than
Concluded Ms. Hakim, “In the several weeks since my appointment as CEO of CPI Aero, I have been immediately impressed by the dedication of the Company’s employees to sustaining our reputation for high quality performance and reliability in partnership with our customers on increasingly complex programs. I am excited about the opportunities ahead to build on that reputation and grow the Company as our customers continue to outsource high value work to their supply chains, including CPI Aero.”
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. CPI Aero is included in the Russell Microcap® Index.
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 “believe,” “remain on track,” “expect,” and “will,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among others, those statements regarding the Company’s expected financial results for the year ended December 31, 2021.
Forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. Factors that may cause future results to differ materially from the Company’s current expectations include, among other things, the Company’s completion of its financial statements for the periods ending September 30, 2021 and December 31, 2021, any delay in the filing of periodic reports, adverse effects on the Company’s business related to the disclosures made in this press release or the reactions of customers or suppliers, any adverse developments in existing legal proceedings or the initiation of new legal proceedings, and volatility of the Company’s stock price.
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/A for the period ended December 31, 2020 and in the Company’s subsequent 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.
| Contact | |
| 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.lhai.com | www.cpiaero.com |
| CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, | December 31, | |||||||
| 2021 (Unaudited) | 2020 (As Restated) | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 2,599,993 | $ | 6,033,537 | ||||
| Accounts receivable, net | 7,071,228 | 4,962,906 | ||||||
| Insurance recovery receivable | 2,850,000 | — | ||||||
| Contract assets | 23,996,068 | 19,729,638 | ||||||
| Inventory | 5,281,161 | 6,386,288 | ||||||
| Refundable income taxes | 40,647 | 40,000 | ||||||
| Prepaid expenses and other current assets | 802,755 | 534,857 | ||||||
| Total current assets | 42,641,852 | 37,687,226 | ||||||
| Operating lease right-of-use assets | 3,223,540 | 4,075,048 | ||||||
| Property and equipment, net | 2,065,351 | 2,521,742 | ||||||
| Intangibles, net | 187,500 | 250,000 | ||||||
| Goodwill | 1,784,254 | 1,784,254 | ||||||
| Other assets | 166,331 | 191,179 | ||||||
| Total assets | $ | 50,068,828 | $ | 46,509,449 | ||||
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 13,548,612 | $ | 12,092,684 | ||||
| Accrued expenses | 4,551,239 | 5,937,921 | ||||||
| Litigation settlement obligation | 3,371,162 | — | ||||||
| Contract liabilities | 1,525,573 | 1,650,549 | ||||||
| Loss reserve | 1,664,804 | 2,009,247 | ||||||
| Current portion of long-term debt | 8,165,438 | 6,501,666 | ||||||
| Operating lease liabilities | 1,848,291 | 1,819,237 | ||||||
| Income tax payable | — | 948 | ||||||
| Total current liabilities | 34,675,119 | 30,012,252 | ||||||
| Line of credit | 21,000,000 | 20,738,685 | ||||||
| Long-term operating lease liabilities | 1,607,917 | 2,537,149 | ||||||
| Long-term debt, net of current portion | 3,345,047 | 6,205,095 | ||||||
| Total liabilities | 60,628,083 | 59,493,181 | ||||||
| Shareholders’ Deficit: | ||||||||
| Common stock - $.001 par value; authorized 50,000,000 shares, 12,267,930 and 11,951,271shares, respectively, issued and outstanding | 12,268 | 11,951 | ||||||
| Additional paid-in capital | 72,574,307 | 72,005,841 | ||||||
| Accumulated deficit | (83,145,830 | ) | (85,001,524 | ) | ||||
| Total Shareholders’ Deficit | (10,559,255 | ) | (12,983,732 | ) | ||||
| Total Liabilities and Shareholders’ Deficit | $ | 50,068,288 | $ | 46,509,449 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| (As Restated) | (As Restated) | ||||||||||||
| Revenue | $ | 22,301,190 | $ | 19,740,767 | $ | 53,119,936 | $ | 36,599,154 | |||||
| Cost of sales | 18,704,588 | 17,924,428 | 44,603,246 | 34,629,831 | |||||||||
| Gross profit | 3,596,602 | 1,816,339 | 8,516,690 | 1,969,323 | |||||||||
| Selling, general and administrative expenses | 2,677,688 | 2,815,252 | 6,068,494 | 5,908,342 | |||||||||
| Income (loss) from operations | 918,914 | (998,913 | ) | 2,448,196 | (3,939,019 | ) | |||||||
| Interest expense | 293,685 | 360,126 | 588,174 | 776,797 | |||||||||
| Income (loss) before provision for income taxes | 625,229 | (1,359,039 | ) | 1,860,022 | (4,715,816 | ) | |||||||
| Provision for income taxes | 2,078 | 1,522 | 4,328 | 2,100 | |||||||||
| Net income (loss) | $ | 623,151 | $ | (1,360,561 | ) | $ | 1,855,694 | $ | (4,717,916 | ) | |||
| Income (loss) per common share – basic | $ | 0.05 | $ | (0.11 | ) | $ | 0.15 | $ | (0.40 | ) | |||
| Income (loss) per common share – diluted | $ | 0.05 | $ | (0.11 | ) | $ | 0.15 | $ | (0.40 | ) | |||
| Shares used in computing loss per common share: | |||||||||||||
| Basic | 12,188,197 | 11,855,404 | 12,086,299 | 11,846,260 | |||||||||
| Diluted | 12,255,950 | 11,855,404 | 12,154,052 | 11,846,260 | |||||||||
FAQ
What were CPI Aerostructures' (CVU) Q2 2021 revenue figures?
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What is the current backlog for CPI Aerostructures as of June 30, 2021?
