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CPI Aerostructures Reports Third Quarter and Nine Month 2023 Results
[November 14, 2023]

CPI Aerostructures Reports Third Quarter and Nine Month 2023 Results

Third Quarter 2023 vs. Third Quarter 2022

  • Revenue of $20.4 million compared to $20.2 million;
  • Gross profit of $3.7 million compared to $5.3 million;
  • Gross margin of 18.2% compared to 26.4%;
  • Net income of $0.3 million compared to $1.9 million;
  • Earnings per diluted share of $0.02 compared to $0.15;
  • Cash flow from operations of $0.0 million compared to $2.9 million.

Nine Months 2023 vs. Nine Months 2022

  • Revenue of $63.0 million compared to $59.3 million;
  • Gross profit of $13.0 million compared to $12.4 million;
  • Gross margin of 20.6% compared to 21.0%;
  • Net income of $2.4 million compared to $2.3 million ($3.1 million excluding first quarter severance accrual of $0.8 million);
  • Earnings per diluted share of $0.19 compared to $0.19 ($0.25 excluding first quarter severance accrual of $0.06);
  • Cash flow from operations of $0.8 million compared to $0.8 million;
  • Debt as of September 30, 2023 of $20.9 million compared to $23.7 million at September 30, 2022.

EDGEWOOD, N.Y., Nov. 14, 2023 (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, 2023.

“During the third quarter, we continued to execute on our plan to strengthen our balance sheet and build shareholder value. However, supply chain technical challenges negatively impacted our throughput and gross profit during the quarter. In addition, our year-over-year comparison was difficult given that the prior year’s third quarter benefited from a favorable mix. Nevertheless, our nine month revenue was up 6.3% and gross profit up 4.4% over prior year,” said Dorith Hakim, President and CEO.

“We continued to use cash flow from operations and paid off our term loan in full, reducing total debt by $2.8 million over prior year. We remain confident in our long-term outlook based on the corrective actions implemented in our supply chain, the increase in our funded backlog and our total backlog of $503 million as of September 30, 2023.”

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 “outlook,” 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, 2022 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, and follow us 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$2,609,693  $3,847,225 
Accounts receivable, net 9,124,187   4,857,772 
Insurance recovery receivable    3,600,000 
Contract assets 31,030,568   27,384,540 
Inventory 1,650,873   2,493,069 
Refundable income taxes 40,000   40,000 
Prepaid expenses and other current assets 670,304   975,830 
Total Current Assets 45,125,625   43,198,436 
Operating lease right-of-use assets 5,196,418   6,526,627 
Property and equipment, net 866,536   1,124,556 
Deferred tax asset 6,074,243   6,574,463 
Goodwill 1,784,254   1,784,254 
Other assets 212,054   238,744 
Total Assets$59,259,130  $59,447,080 
Current Liabilities:       
Accounts payable$13,058,857  $8,029,996 
Accrued expenses 5,409,080   7,344,590 
Litigation settlement obligation    3,600,000 
Contract liabilities 6,669,341   6,001,726 
Loss reserve 371,633   576,549 
Current portion of line of credit 2,400,000   1,200,000 
Current portion of long-term debt 66,311   1,719,766 
Operating lease liabilities, current 1,961,070   1,817,811 
Income tax payable 16,874   11,396 
Total Current Liabilities 29,953,166   30,301,834 
Line of credit, net of current portion 18,360,000   19,800,000 
Long-term operating lease liabilities 3,613,270   5,077,235 
Long-term debt, net of current portion 34,064   70,981 
Total Liabilities 51,960,500   55,250,050 
Shareholders’ Equity:       
Common stock - $.001 par value; authorized 50,000,000 shares, 12,760,331 and 12,506,795 shares, respectively, issued and outstanding 12,761   12,507 
Additional paid-in capital 73,849,050   73,189,449 
Accumulated deficit (66,563,181)  (69,004,926)
Total Shareholders’ Equity 7,298,630   4,197,030 
Total Liabilities and Shareholders’ Equity$59,259,130  $59,447,080 


 For the Three Months Ended
September 30,
 For the Nine Months Ended
September 30,
 2023 2022 2023 2022
Revenue$20,399,369  $20,196,913  $62,963,592  $59,257,416 
Cost of sales 16,693,279   14,869,100   49,990,986   46,835,304 
Gross profit 3,706,090   5,327,813   12,972,606   12,422,112 
Selling, general and administrative expenses 2,535,065   2,744,265   8,210,603   8,579,314 
Income from operations 1,171,025   2,583,548   4,762,003   3,842,798 
Interest expense (663,857)  (721,046)  (1,816,408)  (1,488,091)
Income before provision for income taxes 507,168   1,862,502   2,945,595   2,354,707 
Provision for income taxes 205,804   3,750   503,850   11,250 
Net income$301,364  $1,858,752  $2,441,745  $2,343,457 
Income per common share, basic:           
Income per common share-unrestricted shares$0.02  $0.15  $0.19  $0.19 
Income per common share-restricted shares$0.02  $0.15  $0.19  $0.19 
Income per common share, diluted$0.02  $0.15  $0.19  $0.19 
Shares used in computing income per common share, basic:           
Unrestricted shares 12,431,727   12,208,340   12,418,693   12,274,246 
Restricted shares 328,244   93,412   195,206   88,714 
Total shares 12,759,971   12,301,752   12,613,899   12,362,960 
Shares used in computing income per common share, diluted 12,793,133   12,349,283   12,647,061   12,410,491 

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