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CPI Aerostructures Reports Third Quarter and Nine Month 2024 Results

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CPI Aerostructures reported its Q3 2024 financial results, showing improved profitability despite slightly lower revenue. Q3 revenue was $19.4 million, down from $20.4 million in Q3 2023, while gross profit increased to $4.2 million with an improved margin of 21.7%. Net income rose to $0.7 million, with earnings per share of $0.06. The company reduced its debt by $2.7 million over the past year to $18.2 million, maintaining a Debt-to-Adjusted EBITDA ratio of 2.5. CPI Aero secured a new contract from L3Harris for the Next Generation Jammer Low Band Pod, adding to its $506 million backlog.

CPI Aerostructures ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando una redditività migliorata nonostante una leggera diminuzione dei ricavi. I ricavi del terzo trimestre sono stati 19,4 milioni di dollari, in calo rispetto ai 20,4 milioni di dollari del terzo trimestre 2023, mentre il profitto lordo è aumentato a 4,2 milioni di dollari con un margine migliorato del 21,7%. Il reddito netto è salito a 0,7 milioni di dollari, con utili per azione di $ 0,06. L'azienda ha ridotto il proprio debito di 2,7 milioni di dollari nell'ultimo anno, portandolo a 18,2 milioni di dollari, mantenendo un rapporto Debito/EBITDA rettificato di 2,5. CPI Aero ha ottenuto un nuovo contratto da L3Harris per il Next Generation Jammer Low Band Pod, aumentando il suo portafoglio di 506 milioni di dollari.

CPI Aerostructures informó sobre sus resultados financieros del tercer trimestre de 2024, mostrando una rentabilidad mejorada a pesar de una ligera disminución en los ingresos. Los ingresos del tercer trimestre fueron 19,4 millones de dólares, por debajo de los 20,4 millones de dólares en el tercer trimestre de 2023, mientras que el beneficio bruto aumentó a 4,2 millones de dólares con un margen mejorado del 21,7%. La renta neta aumentó a 0,7 millones de dólares, con ganancias por acción de 0,06 dólares. La empresa redujo su deuda en 2,7 millones de dólares en el último año, dejándola en 18,2 millones de dólares, manteniendo una relación de deuda a EBITDA ajustado de 2,5. CPI Aero aseguró un nuevo contrato con L3Harris para el Next Generation Jammer Low Band Pod, aumentando su cartera de 506 millones de dólares.

CPI 에어로스트럭처스는 2024년 3분기 재무 결과를 발표하며 매출이 다소 감소했음에도 불구하고 개선된 수익성을 보여주었습니다. 3분기 매출은 1940만 달러로, 2023년 3분기의 2040만 달러에서 감소했으며, 총 이익은 420만 달러로 증가하고 21.7%의 개선된 마진을 기록했습니다. 순이익은 70만 달러로 증가하고 주당 순이익은 0.06달러입니다. 이 회사는 지난 1년 동안 270만 달러의 부채를 줄여 1820만 달러로 낮추었으며, 조정된 EBITDA 대비 부채 비율은 2.5를 유지했습니다. CPI 에어로는 L3Harris로부터 차세대 재머 저대역 포드에 대한 새로운 계약을 확보하여 5억 600만 달러의 누적 주문을 추가했습니다.

CPI Aerostructures a annoncé ses résultats financiers du troisième trimestre 2024, montrant une rentabilité améliorée malgré une légère baisse des revenus. Les revenus du troisième trimestre s'élevaient à 19,4 millions de dollars, en baisse par rapport à 20,4 millions de dollars au troisième trimestre 2023, tandis que le bénéfice brut a augmenté à 4,2 millions de dollars avec une marge améliorée de 21,7%. Le revenu net a augmenté à 0,7 million de dollars, avec un bénéfice par action de 0,06 $. L'entreprise a réduit sa dette de 2,7 millions de dollars au cours de l'année écoulée, la portant à 18,2 millions de dollars, tout en maintenant un ratio Dette/EBITDA ajusté de 2,5. CPI Aero a sécurisé un nouveau contrat avec L3Harris pour le Next Generation Jammer Low Band Pod, ajoutant à son carnet de commandes de 506 millions de dollars.

CPI Aerostructures hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, die eine verbesserte Rentabilität trotz leicht gesunkener Einnahmen zeigen. Die Einnahmen im 3. Quartal betrugen 19,4 Millionen Dollar, ein Rückgang von 20,4 Millionen Dollar im 3. Quartal 2023, während der Bruttogewinn auf 4,2 Millionen Dollar anstieg und sich die Marge auf 21,7% verbesserte. Der Nettogewinn stieg auf 0,7 Millionen Dollar, mit einem Gewinn pro Aktie von 0,06 Dollar. Das Unternehmen reduzierte seine Schulden im vergangenen Jahr um 2,7 Millionen Dollar auf 18,2 Millionen Dollar und hielt eine Verschuldungsquote zum bereinigten EBITDA von 2,5 ein. CPI Aero sicherte sich einen neuen Vertrag von L3Harris für den Next Generation Jammer Low Band Pod, der zu seinem Auftragsbestand von 506 Millionen Dollar hinzuggefügt wurde.

Positive
  • Gross margin improved by 350 basis points to 21.7% in Q3 2024
  • Net income increased 149% to $0.7 million in Q3 2024
  • Debt reduced by $2.7 million over 12 months
  • New contract win from L3Harris, first time working with this Tier 1 defense contractor
  • Strong backlog of $506 million as of September 30, 2024
Negative
  • Q3 2024 revenue declined 4.9% to $19.4 million
  • Nine-month revenue decreased 5.9% to $59.3 million
  • Cash flow from operations turned negative for nine months (-$0.8 million) compared to positive $0.8 million in 2023

Insights

CPI Aero's Q3 2024 results demonstrate operational improvements despite revenue headwinds. The $19.4 million quarterly revenue represents a slight decline, but profitability metrics show meaningful enhancement. The 21.7% gross margin marks a significant 350 basis point improvement, while net income more than doubled to $0.7 million.

Key positives include:

  • Debt reduction of $2.7 million over 12 months
  • Healthy Debt-to-Adjusted EBITDA ratio of 2.5x
  • Substantial $506 million backlog
  • New contract win from L3Harris expanding customer base
The improved operational efficiency and debt management, combined with the robust backlog, position the company well despite the challenging revenue environment. However, negative operating cash flow for the nine-month period warrants monitoring.

Third Quarter 2024 vs. Third Quarter 2023

  • Revenue of $19.4 million compared to $20.4 million;
  • Gross profit of $4.2 million compared to $3.7 million;
  • Gross margin of 21.7% compared to 18.2%;
  • Net income of $0.7 million compared to $0.3 million;
  • Earnings per diluted share of $0.06 compared to $0.02;
  • Adjusted EBITDA (1) of $1.7 million compared to $1.4 million;
  • Cash flow provided by operating activities of $0.7 million compared to $0.0 million.

Nine Months 2024 vs. Nine Months 2023

  • Revenue of $59.3 million compared to $63.0 million;
  • Gross profit of $12.9 million compared to $13.0 million;
  • Gross margin of 21.7% compared to 20.6%;
  • Net income of $2.3 million compared to $2.4 million;
  • Earnings per diluted share of $0.18 compared to $0.19;
  • Adjusted EBITDA (1) of $5.5 million compared to $5.8 million;
  • Cash flow used in operations of $(0.8) million compared to $0.8 million generated by operations;
  • Debt as of September 30, 2024 of $18.2 million compared to $20.9 million at September, 2023.

EDGEWOOD, N.Y., Nov. 13, 2024 (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, 2024.

“Our third quarter 2024 performance was stronger than third quarter 2023 on all fronts, while revenues were marginally lower. As a result of improved product mix and efficiencies, gross profit margin increased by 350 basis points and net income increased by 149%. In addition, our third quarter-adjusted EBITDA of $1.7 million is 15.6% higher than third quarter 2023. Our nine-month results remain strong on lower revenues.

“We continue to pay down our debt and reduced it by $2.7 million over the last twelve months. Our Debt-to-Adjusted EBITDA Ratio was 2.5, which marks our seventh consecutive quarter-end below 3.0, while we generated $0.7 million of cash from operations during the third quarter 2024,” said Dorith Hakim, President and CEO.

Added Ms. Hakim, “We are also pleased to receive an award from L3Harris for the Next Generation Jammer Low Band Pod, our first from this Tier 1 defense contractor, adding to our backlog of $506 million as of September 30, 2024. This award continues our success of winning new development programs and demonstrates the confidence top tier companies have in 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 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 CounselCPI Aerostructures, Inc.
LHA Investor RelationsPhilip Passarello
Jody BurfeningChief Financial Officer
(212) 838-3777(631) 586-5200
cpiaero@lhai.comppassarello@cpiaero.com
 www.cpiaero.com
 


CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
 September 30,
2024

(Unaudited)
 December 31,
2023
 
ASSETS        
Current Assets:        
Cash$1,708,987  $5,094,794  
Accounts receivable, net 6,574,853   4,352,196  
Contract assets, net 33,618,971   35,312,068  
Inventory 1,052,286   1,436,647  
Refundable income taxes 40,000   40,000  
Prepaid expenses and other current assets 377,858   678,026  
Total Current Assets 43,372,955   46,913,731  
         
Operating lease right-of-use assets 3,334,992   4,740,193  
Property and equipment, net 819,078   794,056  
Deferred tax asset 19,425,407   19,938,124  
Goodwill 1,784,254   1,784,254  
Other assets 151,077   189,774  
Total Assets$68,887,763  $74,360,132  
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current Liabilities:        
Accounts payable$14,994,451  $10,487,012  
Accrued expenses 5,742,854   10,275,695  
Contract liabilities 1,390,127   5,937,629  
Loss reserve 24,888   337,351  
Current portion of line of credit 2,730,000   2,400,000  
Current portion of long-term debt 31,330   44,498  
Operating lease liabilities, current 2,118,329   1,999,058  
Income taxes payable 28,748   30,107  
Total Current Liabilities 27,060,727   31,511,350  
        
Line of credit, net of current portion 15,390,000   17,640,000  
Long-term operating lease liabilities 1,494,942   3,100,571  
Long-term debt, net of current portion 2,734   26,483  
Total Liabilities 43,948,403   52,278,404  
         
Commitments and Contingencies (see note 11)        
         
Shareholders’ Equity:        
Common stock - $.001 par value; authorized 50,000,000 shares, 12,933,408 and
    12,771,434 shares, respectively, issued and outstanding
 12,933   12,771  
Additional paid-in capital 74,402,288   73,872,679  
Accumulated deficit (49,475,861)  (51,803,722) 
Total Shareholders’ Equity 24,939,360   22,081,728  
Total Liabilities and Shareholders’ Equity$68,887,763  $74,360,132  
 


CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 For the Three Months Ended
September 30,
 For the Nine Months Ended
September 30,
 
 2024 2023 2024 2023
 
Revenue$19,419,879  $20,399,369  $59,311,356  $62,963,592  
Cost of sales 15,200,210   16,693,279   46,422,514   49,990,986  
Gross profit 4,219,669   3,706,090   12,888,842   12,972,606  
                 
Selling, general and administrative expenses 2,742,036   2,535,065   8,231,875   8,210,603  
Income from operations 1,477,633   1,171,025   4,656,967   4,762,003  
                 
Interest expense (573,366)  (663,857)  (1,793,472)  (1,816,408) 
Income before provision for income taxes 904,267   507,168   2,863,495   2,945,595  
                 
Provision for income taxes 154,590   205,804   535,634   503,850  
Net income$749,677  $301,364  $2,327,861  $2,441,745  
                 
Income per common share, basic$0.06  $0.02  $0.19  $0.19  
Income per common share, diluted$0.06  $0.02  $0.18  $0.19  
                 
                 
Shares used in computing income per common share:                
Basic 12,647,023   12,759,971   12,559,876   12,613,899  
Diluted 12,717,128   12,793,133   12,650,340   12,647,061  
                 
Adjusted EBITDA (1)$1,653,193  $1,429,625  $5,491,998  $5,772,832  
 

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
September 30,
 Nine months ended
September 30,
 
 2024 2023 2024 2023
 
Income from operations$1,477,633  $1,171,025  $4,656,967  $4,762,003  
Depreciation 102,847   117,885   305,260   350,974  
Stock-based compensation 72,713   140,715   529,771   659,855  
 Adjusted EBITDA$1,653,193  $1,429,625  $5,491,998  $5,772,832  

FAQ

What was CPI Aero's (CVU) revenue in Q3 2024?

CPI Aero reported revenue of $19.4 million in Q3 2024, compared to $20.4 million in Q3 2023.

How much debt does CPI Aero (CVU) have as of September 2024?

CPI Aero's debt stood at $18.2 million as of September 30, 2024, down from $20.9 million in September 2023.

What is CPI Aero's (CVU) current backlog value?

CPI Aero's backlog stands at $506 million as of September 30, 2024.

What was CPI Aero's (CVU) net income for Q3 2024?

CPI Aero reported a net income of $0.7 million in Q3 2024, up from $0.3 million in Q3 2023.

CPI Aerostructures, Inc.

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