CPI Aerostructures (CVU) publishes its Q1’21 results

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CPI Aerostructures, Inc. (NYSE American: CVU) today announced its financial results for the three-month period ended March 31, 2021.

Commenting on the first quarter 2021 results, Douglas McCrosson, President and CEO, said: “As several new defense programs have entered the manufacturing phase and other early stage programs have increased production , we generated 83% higher revenue while achieving a 1,500 basis point improvement. gross margin compared to a year ago. The efficient execution of our funded military backlog continued to drive revenue growth, as revenue from military contracts more than doubled to $ 28.9 million, while revenue from commercial aviation contracts was almost halved to $ 1.9 million. The combination of improved gross margin and lower interest expense, slightly offset by increased SGA expenses, resulted in a $ 4.6 million decrease in profitability of net income.

Mr. McCrosson added, “However, the rate of sales growth did not unexpectedly increase our working capital requirements during the quarter and net contract assets and accounts receivable increased significantly over the course of the quarter. of the three-month period, resulting in a use of funds in operating activities of $ 4.9. million for the quarter. We expect to report positive operating cash flow through the remainder of 2021 as contractual assets burned along with product deliveries, and we maintain our previously stated belief that operating cash flow for 2021 will be greater than those of 2020. “

“The funded backlog as of March 31, 2021 was $ 162.7 million, including 160.5 or 99% for defense markets, compared to $ 169.6 million as of December 31, 2020, including $ 166.2 million dollars, or 98%, for defense contracts. This 4% decrease was expected given the fact that we received over $ 60 million in new firm orders, including $ 52.1 million in orders from Northrop Grumman for the E-2D program to support several years of deliveries. , during the first quarter of 2020. The total backlog as at March 31, 2021 was $ 451.0 million, including multi-year defense contracts of $ 433.5 million, compared to the total backlog as at March 31, 2021. December 2020 of $ 476.2 million, including multi-year defense contracts of $ 456.8 million, ”continued Mr. McCrosson. “We believe the defense market remains strong and we have a strong portfolio of opportunities for military applications in key strategic industries including electronic warfare, hypersonics and unmanned systems. We have been informed by clients that we have been successful in winning several new contracts which we plan to announce if and when our clients allow it. This gives me confidence to believe that we are on track to end 2021 with a total order book of around $ 500 million, up 5% from the end of 2020. ”

“We affirm our previously stated expectations for 2021 revenue of over $ 100 million versus $ 87.6 million in 2020 and net profit of over $ 4 million, not including $ 4.8 million of Other income related to the cancellation of our paycheck protection July 1, 2021. Program loan, compared to the net loss of $ 3.7 million in 2020. As 2022 approaches, we have the intention to remain focused on improving working capital management, strengthening our balance sheet through further debt reductions, increasing profit margins through improved operational efficiency, and reducing general and administrative expenses as legal and accounting fees return to historic levels. We will also continue to seek opportunities to optimize our product line and move away from products and programs that do not exist. could not achieve a satisfactory margin, ”concluded Mr. McCrosson.

About CPI AéroCPI Aero is an American manufacturer of structural assemblies for fixed-wing aircraft, helicopters, and airborne intelligence, surveillance and reconnaissance, and electronic warfare nacelle systems, primarily for the national security markets. Within the global aerostructures supply chain, CPI Aero is either a Tier 1 supplier for aircraft OEMs or a Tier 2 subcontractor for major Tier 1 manufacturers. CPI is also a prime contractor from the US Department of Defense, primarily the Air Force. Along with its assembly operations, CPI Aero provides engineering, program management, supply chain management and MRO services. CPI Aero is included in the Russell Microcap® Index.

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, except statements by historical facts, included or incorporated in this press release are forward-looking statements. The words “believe”, “Expect”, “intend” and “will” 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, these statements concerning the expected financial results of the Company for the fiscal year ended December 31, 2021.

These forward-looking statements involve risks and uncertainties, and actual results could differ materially from these forward-looking statements. Factors that could cause future results to differ materially from the Company’s current results expectations include, among others, the completion by the Company of its financial statements for the periods ending June 30, 2021, September 30, 2021 and December 31, 2021, any delay in submitting periodic reports, adverse effects on the affairs of the Company relating to the disclosures made in this press release or to the reactions of customers or suppliers, any unfavorable development of existing legal proceedings or the opening of new legal proceedings, and the volatility of Company share price.

The Company does not guarantee that it will actually carry out 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. The are a number of important factors that could cause the Company’s actual results to differ materially from those shown or implied by its forward-looking statements, including the material factors set forth under “Risk Factors” in the company’s annual report on form 10-K / A for the period ended December 31, 2020 and the quarterly report on form 10-Q for the three-month period ended March 31, 2021. Although the Company may choose to do so at some point during the future, the Company assumes no obligation to update any forward-looking statements and disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, events or other.

CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @ CPIAERO.us on Twitter @CPIAERO.

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Source: CPI Aerostructures, Inc.