CPI Aerostructures Reports Third Quarter and Nine Month 2021 Results
14 Mai 2022 - 3:40AM
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, 2021.
“Our reported results for the first nine months of 2021 keep us
on track to meet our stated expectations for higher revenue,
significantly improved profitability and positive cash flow from
operations for 2021,” said Dorith Hakim, president and CEO.
“Continued execution of our backlog drove a 23.9% increase in
revenue and a 5.9 basis points increase in gross margin to 15.8%
which resulted in $11.2 million increase in bottom line
profitability, including our PPP loan forgiveness of $4.8 million,
versus the first nine months of 2020.
“For the third quarter of 2021, we generated cash flow from
operations of $1.2 million, an expected reversal from the $(2.4)
million use of funds for the second quarter of 2021 as product
deliveries continue to reduce contract assets and inventory. As a
result, we continue to expect to report positive cash flow from
operations for the second half of 2021 and for the full year of
2021. We also continued to pay down our debt and, as of September
30, 2021, had an outstanding balance on our term loan of $5.6
million.”
Added Ms. Hakim, “Funded backlog as of September 30, 2021 of
approximately $138 million was 98% attributable to government
contracts and primarily comprised of long term programs and long
term agreements. This funded backlog is, as expected, 27% lower
than the funded backlog as of September 30, 2020, reflecting the
receipt of more than $60 million in new firm orders during the
first quarter of 2020. Since September 30, 2021, however, we have
won, but not yet been able to announce, several new contracts for
military applications in key strategic sectors including electronic
warfare, hypersonic and unmanned systems. We remain on track to
report more than $500 million in total backlog as of the end of
2021.
“We continue to anticipate reporting 2021 revenue greater than
$100 million compared to $87.6 million for 2020, and net income
between $7.5 to $8.0 million, including the $4.8 million of other
income related to the forgiveness of our Paycheck Protection
Program loan, compared to a net loss of $(3.7) million for
2020.”
Concluded Ms. Hakim, “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.”
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.
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 “remain on track,” “expect,” “anticipate,”
“outlook,” “opportunities ahead” 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 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.
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 |
|
|
|
|
|
September
30,2021(Unaudited) |
|
|
December
31,2020(As
Restated) |
|
ASSETSCurrent Assets: |
|
|
Cash |
$ |
3,110,581 |
|
$ |
6,033,537 |
|
Accounts receivable, net |
|
8,544,494 |
|
|
4,962,906 |
|
Insurance recovery receivable |
|
2,850,000 |
|
|
— |
|
Contract assets |
|
22,760,591 |
|
|
19,729,638 |
|
Inventory |
|
4,979,928 |
|
|
6,386,288 |
|
Refundable income taxes |
|
40,000 |
|
|
40,000 |
|
Prepaid expenses and other current assets |
|
659,216 |
|
|
534,857 |
|
Total
current assets |
|
42,944,810 |
|
|
37,687,226 |
|
|
|
|
Operating lease
right-of-use assets |
|
2,790,731 |
|
|
4,075,048 |
|
Property and
equipment, net |
|
1,837,909 |
|
|
2,521,742 |
|
Intangibles,
net |
|
156,250 |
|
|
250,000 |
|
Goodwill |
|
1,784,254 |
|
|
1,784,254 |
|
Other assets |
|
150,444 |
|
|
191,179 |
|
Total
assets |
$ |
49,664,398 |
|
$ |
46,509,449 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
Current
Liabilities: |
|
|
Accounts payable |
$ |
13,002,848 |
|
$ |
12,092,684 |
|
Accrued expenses |
|
4,539,670 |
|
|
5,937,921 |
|
Litigation settlement obligation |
|
3,206,133 |
|
|
— |
|
Contract liabilities |
|
2,542,464 |
|
|
1,650,549 |
|
Loss reserve |
|
1,292,025 |
|
|
2,009,247 |
|
Current portion of long-term debt |
|
3,367,825 |
|
|
6,501,666 |
|
Operating lease liabilities |
|
1,862,933 |
|
|
1,819,237 |
|
Income tax payable |
|
1,417 |
|
|
948 |
|
Total
current liabilities |
|
29,815,315 |
|
|
30,012,252 |
|
|
|
|
Line of
credit |
|
21,000,000 |
|
|
20,738,685 |
|
Long-term
operating lease liabilities |
|
1,136,131 |
|
|
2,537,149 |
|
Long-term debt,
net of current portion |
|
2,692,303 |
|
|
6,205,095 |
|
Total
liabilities |
|
54,643,749 |
|
|
59,493,181 |
|
|
|
Shareholders’
Deficit: |
|
Common stock - $.001 par value; authorized 50,000,000 shares,
12,301,811 and 11,951,271 shares, |
|
respectively, issued and outstanding |
|
|
12,302 |
|
|
11,951 |
|
Additional paid-in capital |
|
|
72,728,922 |
|
|
72,005,841 |
|
Accumulated deficit |
|
|
(77,720,575 |
) |
|
(85,001,524 |
) |
Total Shareholders’
Deficit |
|
|
(4,979,351 |
) |
|
(12,983,732 |
) |
Total Liabilities and
Shareholders’ Deficit |
|
$ |
49,664,398 |
|
$ |
46,509,449 |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED) |
|
|
|
|
|
For the Three Months EndedSeptember
30, |
|
For the Nine Months EndedSeptember
30, |
|
|
|
|
2021 |
|
|
|
2020(As Restated) |
|
|
|
2021 |
|
|
|
2020 (As Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
23,898,748 |
|
|
$ |
25,576,718 |
|
|
$ |
77,018,684 |
|
|
|
62,175,872 |
|
Cost of sales |
|
20,246,764 |
|
|
|
21,369,687 |
|
|
|
64,850,010 |
|
|
|
55,999,518 |
|
Gross profit |
|
3,651,984 |
|
|
|
4,207,031 |
|
|
|
12,168,674 |
|
|
|
6,176,354 |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
2,765,849 |
|
|
|
3,050,644 |
|
|
|
8,834,343 |
|
|
|
8,958,986 |
|
Income (loss) from
operations |
|
886,135 |
|
|
|
1,156,387 |
|
|
|
3,334,331 |
|
|
|
(2,782,632 |
) |
|
|
|
|
|
|
|
|
Other income |
|
4,795,000 |
|
|
|
— |
|
|
|
4,795,000 |
|
|
|
— |
|
Interest expense |
|
(252,506 |
) |
|
|
(309,008 |
) |
|
|
(840,680 |
) |
|
|
(1,085,805 |
) |
Income (loss) before provision
for income taxes |
|
5,428,629 |
|
|
|
847,379 |
|
|
|
7,288,651 |
|
|
|
(3,868,437 |
) |
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
3,374 |
|
|
|
7,614 |
|
|
|
7,702 |
|
|
|
9,714 |
|
Net income (loss) |
$ |
5,425,255 |
|
|
$ |
839,765 |
|
|
$ |
7,280,949 |
|
|
$ |
(3,878,151 |
) |
|
|
|
|
|
|
|
|
Income (loss) per common share
– basic |
$ |
0.44 |
|
|
$ |
0.07 |
|
|
$ |
0.60 |
|
|
$ |
(0.33 |
) |
|
|
|
|
|
|
|
|
Income (loss) per common share
– diluted |
$ |
0.44 |
|
|
$ |
0.07 |
|
|
$ |
0.60 |
|
|
$ |
(0.33 |
) |
|
|
|
|
|
|
|
|
Shares used in computing
income (loss) per common share: |
|
|
|
|
|
|
|
Basic |
|
12,286,712 |
|
|
|
11,894,469 |
|
|
|
12,153,838 |
|
|
|
11,862,506 |
|
Diluted |
|
12,320,588 |
|
|
|
11,917,149 |
|
|
|
12,187,714 |
|
|
|
11,862,506 |
|
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