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CPI Aerostructures Reports Third Quarter and Nine Month 2022 Results
[November 21, 2022]

CPI Aerostructures Reports Third Quarter and Nine Month 2022 Results

Third Quarter 2022 vs. Third Quarter 2021

  • Revenue of $20.2 million compared to $23.9 million;
  • Gross profit of $5.3 million compared to $3.7 million;
  • Gross margin of 26.4% compared to 15.3%;
  • Net income of $1.9 million compared to $5.4 million ($0.6 million excluding $4.8 million in PPP loan forgiveness);
  • Earnings per diluted share of $0.15 compared to $0.44 ($0.05 excluding $0.39 in PPP loan forgiveness);
  • Cash flow from operations of $2.9 million compared to $1.2 million.

Nine Months 2022 vs. Nine Months 2021

  • Revenue of $59.3 million compared to $77.0 million;
  • Gross profit of $12.4 million compared to $12.2 million;
  • Gross margin of 21.0% compared to 15.8%;
  • Net income of $2.3 million ($3.1 million excluding the first quarter severance accrual of $0.8 million) compared to $7.3 million ($2.5 million excluding $4.8 million in PPP loan forgiveness);
  • Earnings per diluted share of $0.19 ($0.25 excluding the first quarter severance accrual of $0.06) compared to $0.60 ($0.21 excluding $0.39 in PPP loan forgiveness);
  • Cash flow from operations of $0.8 million compared to a use of $(1.3) million;
  • Debt as of September 30, 2022 of $23.7 million compared to $27.1 million as of September 30, 2021.

EDGEWOOD, N.Y., Nov. 21, 2022 (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, 2022.

“Today we filed our third quarter 2022 results on Form 10-Q for the period ended September 30, 2022. While our third quarter 2022 revenue was lower than third quarter 2021, we significantly improved our profitability. Our gross profit margin for third quarter 2022 increased to 26.4% due to favorable mix and the achievement of operational efficiencies; our net income was 9.2% of sales compared to 2.6% excluding the PPP loan forgiveness for the third quarter of 2021,” said Dorith Hakim, President and CEO.

Added Ms. Hakim, “We continue to generate positive cash flow from operations and have lowered our debt by $3.4 million compared to the third quarter of 2021.”

Concluded Ms. Hakim, “We are making great progress in on-boarding our new programs and plan to start first deliveries over the next nine months. With a total backlog of $501 million as of September 30, 2022, 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 “plan,” remain confident,” “outlook,” “opportunities ahead,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words Forward-looking statements involve risks and uncertainties, and actual results could vary materially from 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. 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, 2021 and in the Company’s other 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, and follow us on Twitter on Twitter @CPIAERO.

Investor Relations Counsel
LHA Investor Relations
Jody Burfening
(212) 838-3777
[email protected]
CPI Aerostructures, Inc.
Andrew L. Davis
Chief Financial Officer
(631) 586-5200
[email protected]  



  September 30,
  December 31,
Current Assets:        
Cash $4,627,379  $6,308,866 
Accounts receivable, net  8,400,967   4,967,714 
Insurance recovery receivable  3,600,000   2,850,000 
Contract assets  24,157,141   24,459,339 
Inventory  3,108,241   4,028,925 
Refundable income taxes  42,335   40,000 
Prepaid expenses and other current assets  617,188   625,075 
Total current assets  44,553,251   43,279,919 
Operating lease right-of-use assets  6,736,441   7,796,768 
Property and equipment, net  1,250,304   1,646,863 
Intangibles, net  31,250   125,000 
Goodwill  1,784,254   1,784,254 
Other assets  282,299   372,741 
Total assets $54,637,799  $55,005,545 
Current Liabilities:        
Accounts payable $12,768,638  $10,429,018 
Accrued expenses  4,564,515   6,102,587 
Litigation settlement obligation  3,600,000   3,003,259 
Contract liabilities  5,041,818   5,122,766 
Loss reserve  635,406   1,495,714 
Current portion of long-term debt  2,591,928   3,365,181 
Operating lease liabilities  1,728,707   1,580,453 
Income tax payable  3,750   5,165 
Total current liabilities  30,934,762   31,104,143 
Line of credit  21,000,000   21,250,000 
Long-term operating lease liabilities  5,345,919   6,445,728 
Long-term debt, net of current portion  100,375   1,540,747 
Total liabilities  57,381,056   60,340,618 
Shareholders’ Deficit:        
Common stock - $.001 par value; authorized 50,000,000 shares, 12,325,360 and 12,335,683 shares, respectively, issued and outstanding  12,325   12,336 
Additional paid-in capital  73,082,112   72,833,742 
Accumulated deficit  (75,837,694)  (78,181,151)
Total Shareholders’ Deficit  (2,743,257)  (5,335,073)
Total Liabilities and Shareholders’ Deficit $54,637,799  $55,005,545 


  For the Three Months Ended
September 30,
  For the Nine Months Ended
September 30,
Revenue $20,196,913   $23,898,748   $59,257,416   $77,018,684  
Cost of sales  14,869,100    20,246,764    46,835,304    64,850,010  
Gross profit  5,327,813    3,651,984    12,422,112    12,168,674  
Selling, general and administrative expenses  2,744,265    2,765,849    8,579,314    8,834,343  
Income from operations  2,583,548    886,135    3,842,798    3,334,331  
Other income      4,795,000        4,795,000  
Interest expense  (721,046)   (252,506)   (1,488,091)   (840,680) 
Income before provision for income taxes  1,862,502    5,428,629    2,354,707    7,288,651  
Provision for income taxes  3,750    3,374    11,250    7,702  
Net income $1,858,752   $5,425,255   $2,343,457   $7,280,949  
Income per common share – basic $0.15   $0.44   $0.19   $0.60  
Income per common share – diluted $0.15   $0.44   $0.19   $0.60  
Shares used in computing loss per common share:                
Basic  12,301,752    12,286,712    12,362,960    12,153,838  
Diluted  12,349,283    12,320,588    12,410,491    12,187,714  

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