CPI Aerostructures Reports Second Quarter and Six Month 2024 Results
CPI Aerostructures (NYSE American: CVU) reported its financial results for Q2 and H1 2024. In Q2, revenue increased slightly to $20.8 million, with improved gross profit of $5.1 million and a higher gross margin of 24.6%. Net income rose to $1.4 million, with earnings per diluted share of $0.11. Adjusted EBITDA grew to $2.6 million.
For H1 2024, revenue decreased to $39.9 million, with lower gross profit of $8.7 million and slightly reduced gross margin of 21.7%. Net income declined to $1.6 million, with earnings per diluted share of $0.12. The company reduced its debt to $18.9 million and maintained a Debt-to-Adjusted EBITDA Ratio below 3.0 for the sixth consecutive quarter.
CEO Dorith Hakim noted progress in transitioning to future programs and an uptick in quote requests. The company's backlog stood at $512 million as of June 30, 2024.
CPI Aerostructures (NYSE American: CVU) ha riportato i suoi risultati finanziari per il secondo trimestre e per il primo semestre del 2024. Nel secondo trimestre, i ricavi sono aumentati leggermente a $20,8 milioni, con un miglioramento del profitto lordo che ha raggiunto $5,1 milioni e un margine lordo superiore al 24,6%. L'utile netto è salito a $1,4 milioni, con un utile per azione diluita di $0,11. L'EBITDA rettificato è cresciuto fino a $2,6 milioni.
Per il primo semestre del 2024, i ricavi sono diminuiti a $39,9 milioni, con un profitto lordo inferiore a $8,7 milioni e un margine lordo leggermente ridotto al 21,7%. L'utile netto è sceso a $1,6 milioni, con un utile per azione diluita di $0,12. L'azienda ha ridotto il proprio debito a $18,9 milioni e ha mantenuto un rapporto Debito-EBITDA rettificato sotto il 3,0 per il sesto trimestre consecutivo.
Il CEO Dorith Hakim ha notato progressi nella transizione verso programmi futuri e un aumento delle richieste di preventivo. Il portafoglio ordini dell'azienda ammontava a $512 milioni al 30 giugno 2024.
CPI Aerostructures (NYSE American: CVU) reportó sus resultados financieros para el segundo trimestre y la primera mitad de 2024. En el segundo trimestre, los ingresos aumentaron ligeramente a $20.8 millones, con una mejora en la ganancia bruta de $5.1 millones y un margen bruto más alto del 24.6%. El ingreso neto creció a $1.4 millones, con ganancias por acción diluida de $0.11. El EBITDA ajustado creció a $2.6 millones.
Para la primera mitad de 2024, los ingresos disminuyeron a $39.9 millones, con una ganancia bruta inferior de $8.7 millones y un margen bruto ligeramente reducido del 21.7%. El ingreso neto cayó a $1.6 millones, con ganancias por acción diluida de $0.12. La empresa redujo su deuda a $18.9 millones y mantuvo una relación Deuda-EBITDA ajustado por debajo de 3.0 durante el sexto trimestre consecutivo.
La CEO Dorith Hakim destacó los avances en la transición hacia programas futuros y un aumento en las solicitudes de presupuesto. El backlog de la empresa se situaba en $512 millones al 30 de junio de 2024.
CPI Aerostructures (NYSE American: CVU)는 2024년 2분기 및 상반기 재무 실적을 발표했습니다. 2분기 매출은 소폭 증가하여 2,080만 달러에 이르렀으며, 총 이익은 510만 달러로 개선되었고, 총 마진은 24.6%로 상승했습니다. 순이익은 140만 달러로 증가했으며, 희석 주당 수익은 0.11달러에 달했습니다. 조정 후 EBITDA는 260만 달러로 성장했습니다.
2024년 상반기 동안 매출은 3,990만 달러로 감소했으며, 총 이익은 870만 달러로 줄어들고 총 마진은 21.7%로 약간 감소했습니다. 순이익은 160만 달러로 감소했고, 희석 주당 수익은 0.12달러였습니다. 회사는 부채를 1,890만 달러로 줄였으며, 6분기 연속으로 조정 EBITDA 대비 부채 비율을 3.0 이하로 유지했습니다.
CEO Dorith Hakim은 미래 프로그램으로의 전환 과정에서의 진전을 언급하며 인용 요청이 증가하고 있음을 강조했습니다. 회사의 수주 잔고는 2024년 6월 30일 기준으로 5억 1,200만 달러에 달했습니다.
CPI Aerostructures (NYSE American: CVU) a rapporté ses résultats financiers pour le deuxième trimestre et le premier semestre 2024. Au deuxième trimestre, le chiffre d'affaires a légèrement augmenté pour atteindre 20,8 millions de dollars, avec un bénéfice brut amélioré de 5,1 millions de dollars et une marge brute plus élevée de 24,6%. Le revenu net a augmenté à 1,4 million de dollars, avec un bénéfice par action diluée de 0,11 dollar. L'EBITDA ajusté a augmenté à 2,6 millions de dollars.
Pour le premier semestre 2024, le chiffre d'affaires a diminué à 39,9 millions de dollars, avec un bénéfice brut inférieur de 8,7 millions de dollars et une marge brute légèrement réduite de 21,7%. Le revenu net a chuté à 1,6 million de dollars, avec un bénéfice par action diluée de 0,12 dollar. L'entreprise a réduit sa dette à 18,9 millions de dollars et a maintenu un ratio Dette-EBITDA ajusté en dessous de 3,0 pour le sixième trimestre consécutif.
La PDG Dorith Hakim a noté des progrès dans la transition vers de futurs programmes et une augmentation des demandes de devis. Le carnet de commandes de l'entreprise s'élevait à 512 millions de dollars au 30 juin 2024.
CPI Aerostructures (NYSE American: CVU) hat seine finanziellen Ergebnisse für das zweite Quartal und das erste Halbjahr 2024 bekannt gegeben. Im zweiten Quartal stieg der Umsatz leicht auf 20,8 Millionen Dollar, mit einem verbesserten Bruttogewinn von 5,1 Millionen Dollar und einer höheren Bruttomarge von 24,6%. Der Nettogewinn stieg auf 1,4 Millionen Dollar, mit einem Ergebnis pro verwässerter Aktie von 0,11 Dollar. Das bereinigte EBITDA wuchs auf 2,6 Millionen Dollar.
Im ersten Halbjahr 2024 sank der Umsatz auf 39,9 Millionen Dollar, mit einem niedrigeren Bruttogewinn von 8,7 Millionen Dollar und einer leicht reduzierten Bruttomarge von 21,7%. Der Nettogewinn ging auf 1,6 Millionen Dollar zurück, mit einem Ergebnis pro verwässerter Aktie von 0,12 Dollar. Das Unternehmen reduzierte seine Schulden auf 18,9 Millionen Dollar und hielt die Schulden-zu-bereinigtem EBITDA-Ratio zum sechsten Mal in Folge unter 3,0.
CEO Dorith Hakim bemerkte Fortschritte beim Übergang zu zukünftigen Programmen und einen Anstieg der Angebotsanfragen. Der Auftragsbestand des Unternehmens betrug zum 30. Juni 2024 insgesamt 512 Millionen Dollar.
- Q2 2024 revenue increased to $20.8 million from $20.5 million in Q2 2023
- Q2 2024 gross profit improved to $5.1 million from $4.6 million in Q2 2023
- Q2 2024 gross margin increased to 24.6% from 22.4% in Q2 2023
- Q2 2024 net income rose to $1.4 million from $1.2 million in Q2 2023
- Q2 2024 Adjusted EBITDA grew to $2.6 million from $2.1 million in Q2 2023
- Debt reduced by $2.4 million over the last twelve months
- Debt-to-Adjusted EBITDA Ratio at 2.7, below 3.0 for six consecutive quarters
- Backlog of $512 million as of June 30, 2024
- H1 2024 revenue decreased to $39.9 million from $42.6 million in H1 2023
- H1 2024 gross profit declined to $8.7 million from $9.3 million in H1 2023
- H1 2024 net income decreased to $1.6 million from $2.1 million in H1 2023
- H1 2024 earnings per diluted share reduced to $0.12 from $0.17 in H1 2023
- H1 2024 Adjusted EBITDA decreased to $3.8 million from $4.3 million in H1 2023
- Cash flow used in operations of $(1.6) million in H1 2024 compared to $0.9 million generated in H1 2023
Insights
CPI Aero's Q2 2024 results show modest improvements, with revenue up
However, the six-month figures paint a more cautious picture. Revenue declined
CPI Aero's transition from legacy programs to "programs of the future" is a strategic move in the evolving aerospace landscape. The uptick in quote requests and the robust
The company's focus on Intelligence Surveillance and Reconnaissance (ISR) pod systems aligns with increasing defense priorities. However, the aerospace supply chain faces ongoing challenges, including material costs and labor shortages. CPI Aero's ability to improve margins amidst these headwinds is commendable, but sustained revenue growth will be important for long-term success in this competitive sector.
Second Quarter 2024 vs. Second Quarter 2023
- Revenue of
$20.8 million compared to$20.5 million ; - Gross profit of
$5.1 million compared to$4.6 million ; - Gross margin of
24.6% compared to22.4% ; - Net income of
$1.4 million compared to$1.2 million ; - Earnings per diluted share of
$0.11 compared to$0.09 ; - Adjusted EBITDA (1) of
$2.6 million compared to$2.1 million ; - Cash flow used in operations of
$(0.6) million compared to$0.0 million .
Six Months 2024 vs. Six Months 2023
- Revenue of
$39.9 million compared to$42.6 million ; - Gross profit of
$8.7 million compared to$9.3 million ; - Gross margin of
21.7% compared to21.8% ; - Net income of
$1.6 million compared to$2.1 million ; - Earnings per diluted share of
$0.12 compared to$0.17 ; - Adjusted EBITDA (1) of
$3.8 million compared to$4.3 million - Cash flow used in operations of
$(1.6) million compared to$0.9 million generated by operations; - Debt as of June 30, 2024 of
$18.9 million compared to$21.3 million at June 30, 2023.
EDGEWOOD, N.Y., Aug. 13, 2024 (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, 2024.
“We made solid progress in the second quarter 2024 as we continue to transition from legacy programs to programs of the future. Although our second quarter revenue was marginally higher than second quarter 2023, gross profit margin increased by 220 basis points and our Net Income increased by
We reduced our debt by
Added Ms. Hakim, “We have seen an uptick in request for quotes based on our strong performance and strengthening of our financial position. We expect that our competitive position will continue to drive program wins, building off of our backlog of
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 word “expect,” and similar expressions are intended to identify 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.
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, 2023 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 | 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.cpiaero.com |
| CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, 2024 (Unaudited) | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 1,936,697 | $ | 5,094,794 | ||||
| Accounts receivable, net | 6,228,639 | 4,352,196 | ||||||
| Contract assets, net | 34,183,988 | 35,312,068 | ||||||
| Inventory | 1,132,520 | 1,436,647 | ||||||
| Refundable income taxes | 40,000 | 40,000 | ||||||
| Prepaid expenses and other current assets | 563,147 | 678,026 | ||||||
| Total Current Assets | 44,084,991 | 46,913,731 | ||||||
| Operating lease right-of-use assets | 3,808,903 | 4,740,193 | ||||||
| Property and equipment, net | 793,664 | 794,056 | ||||||
| Deferred tax asset | 19,582,905 | 19,938,124 | ||||||
| Goodwill | 1,784,254 | 1,784,254 | ||||||
| Other assets | 162,803 | 189,774 | ||||||
| Total Assets | $ | 70,217,520 | $ | 74,360,132 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 14,528,893 | $ | 10,487,012 | ||||
| Accrued expenses | 5,994,894 | 10,275,695 | ||||||
| Contract liabilities | 2,482,535 | 5,937,629 | ||||||
| Loss reserve | 59,922 | 337,351 | ||||||
| Current portion of line of credit | 2,640,000 | 2,400,000 | ||||||
| Current portion of long-term debt | 30,663 | 44,498 | ||||||
| Operating lease liabilities, current | 2,076,851 | 1,999,058 | ||||||
| Income taxes payable | 31,734 | 30,107 | ||||||
| Total Current Liabilities | 27,845,492 | 31,511,350 | ||||||
| Line of credit, net of current portion | 16,200,000 | 17,640,000 | ||||||
| Long-term operating lease liabilities | 2,044,237 | 3,100,571 | ||||||
| Long-term debt, net of current portion | 10,821 | 26,483 | ||||||
| Total Liabilities | 46,100,550 | 52,278,404 | ||||||
| Commitments and Contingencies (see note 11) | ||||||||
| Shareholders’ Equity: | ||||||||
| Common stock - $.001 par value; authorized 50,000,000 shares, 12,962,863 and 12,771,434 shares, respectively, issued and outstanding | 12,963 | 12,771 | ||||||
| Additional paid-in capital | 74,329,545 | 73,872,679 | ||||||
| Accumulated deficit | (50,225,538 | ) | (51,803,722 | ) | ||||
| Total Shareholders’ Equity | 24,116,970 | 22,081,728 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 70,217,520 | $ | 74,360,132 | ||||
| CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Revenue | $ | 20,810,334 | $ | 20,547,555 | $ | 39,891,477 | $ | 42,564,223 | ||||||||||||
| Cost of sales | 15,694,910 | 15,943,555 | 31,222,304 | 33,297,707 | ||||||||||||||||
| Gross profit | 5,115,424 | 4,604,000 | 8,669,173 | 9,266,516 | ||||||||||||||||
| Selling, general and administrative expenses | 2,775,935 | 2,806,480 | 5,489,839 | 5,675,538 | ||||||||||||||||
| Income from operations | 2,339,489 | 1,797,520 | 3,179,334 | 3,590,978 | ||||||||||||||||
| Interest expense | (587,971 | ) | (541,655 | ) | (1,220,106 | ) | (1,152,551 | ) | ||||||||||||
| Income before provision for income taxes | 1,751,518 | 1,255,865 | 1,959,228 | 2,438,427 | ||||||||||||||||
| Provision for income taxes | 341,572 | 98,789 | 381,044 | 298,046 | ||||||||||||||||
| Net income | $ | 1,409,946 | $ | 1,157,076 | $ | 1,578,184 | $ | 2,140,381 | ||||||||||||
| Income per common share, basic | $ | 0.11 | $ | 0.09 | $ | 0.13 | $ | 0.17 | ||||||||||||
| Income per common share, diluted | $ | 0.11 | $ | 0.09 | $ | 0.12 | $ | 0.17 | ||||||||||||
| Shares used in computing income per common share: | ||||||||||||||||||||
| Basic | 12,440,426 | 12,558,793 | 12,515,824 | 12,539,652 | ||||||||||||||||
| Diluted | 12,554,153 | 12,625,241 | 12,656,753 | 12,606,100 | ||||||||||||||||
| Adjusted EBITDA (1) | $ | 2,617,870 | $ | 2,094,281 | $ | 3,838,805 | $ | 4,343,207 | ||||||||||||
Unaudited Reconciliation of GAAP to Non-GAAP Measures
Note: (1) Adjusted EBITDA is a non-GAAP measure defined as GAAP income from operations plus depreciation, amortization and stock-compensation expense.
Adjusted EBITDA as calculated by us may be calculated differently than Adjusted EBITDA for other companies. We have provided Adjusted EBITDA because we believe it is a commonly used measure of financial performance in comparable companies and is provided to help investors evaluate companies on a consistent basis, as well as to enhance understanding of our operating results. Adjusted EBITDA should not be construed as either an alternative to income from operations or net income or as an indicator of our operating performance or an alternative to cash flows as a measure of liquidity. The adjustments to calculate this non-GAAP financial measure and the basis for such adjustments are outlined below. Please refer to the following table below that reconciles GAAP income from operations to Adjusted EBITDA.
The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:
Depreciation. The Company incurs depreciation expense (recorded in cost of sales and in selling, general and administrative expenses) related to capital assets purchased, leased or constructed to support the ongoing operations of the business. The assets are recorded at cost or fair value and are depreciated over the estimated useful lives of individual assets.
Stock-based compensation expense. The Company incurs non-cash expense related to stock-based compensation included in its GAAP presentation of cost of sales and selling, general and administrative expenses. Management believes that exclusion of these expenses allows comparison of operating results to those of other companies that disclose non-GAAP financial measures that exclude stock-based compensation.
Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the Adjusted EBITDA financial adjustments described above, and investors should not infer from the Company's presentation of this non-GAAP financial measure that these costs are unusual, infrequent, or non-recurring.
Reconciliation of income from operations to Adjusted EBITDA is as follows:
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Income from operations | $ | 2,339,489 | $ | 1,797,520 | $ | 3,179,334 | $ | 3,590,978 | ||||||||
| Depreciation | 102,846 | 116,545 | 202,413 | 233,090 | ||||||||||||
| Stock-based compensation | 175,535 | 180,216 | 457,058 | 519,139 | ||||||||||||
| Adjusted EBITDA | $ | 2,617,870 | $ | 2,094,281 | $ | 3,838,805 | $ | 4,343,207 | ||||||||
FAQ
What was CPI Aerostructures' (CVU) revenue for Q2 2024?
How did CPI Aerostructures' (CVU) net income change in Q2 2024?
What was CPI Aerostructures' (CVU) Adjusted EBITDA for Q2 2024?
How much debt did CPI Aerostructures (CVU) have as of June 30, 2024?
What was CPI Aerostructures' (CVU) backlog as of June 30, 2024?
