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CPI Aerostructures Reports Fourth Quarter and Full Year 2021 Results

·6-min read
CPI Aerostructures, Inc.
CPI Aerostructures, Inc.

Fourth Quarter 2021 vs. Fourth Quarter 2020 (Re-stated)

  • Revenue of $26.4 million compared to $25.4 million;

  • Gross profit of $2.8 million compared to $3.6 million;

  • Gross margin of 10.8% compared to 14.1%;

  • Net loss of $(0.5) million compared to net income of $0.2 million;

  • Loss per diluted share of $(0.04) compared to earnings per diluted share of $0.02;

  • Cash flow from operations of $4.1 million compared to $1.7 million.

Full Year 2021 vs. Full Year 2020 (Re-stated)

  • Revenue of $103.4 million compared to $87.6 million;

  • Gross profit of $15.0 million compared to $9.8 million;

  • Gross margin of 14.5% compared to 11.1%;

  • Net income of $6.8 million ($2.0 million excluding $4.8 million in PPP loan forgiveness) compared to net loss of $(3.7) million;

  • Earnings per diluted share of $0.56 ($0.17 excluding $0.39 in PPP loan forgiveness) compared to loss per diluted share of $(0.31);

  • Cash flow from operations of $2.8 million compared to a use of $(1.6) million;

  • Debt as of December 31, 2021 of $26.2 million compared to $33.4 million as of December 31, 2020, which included the $4.8 million in PPP loan forgiven by the lender and the Small Business Administration on July 1, 2021.

EDGEWOOD, N.Y., Aug. 19, 2022 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (OTC Expert Market: CVUA) today announced financial results for the three and twelve month periods ended December 31, 2021.

“We closed the year with EPS and cash flow from operations meeting our outlook for 2021,” said Dorith Hakim, President and CEO. “The combination of the 18% increase in revenue and 3.4 bps increase in gross margin resulted in $6.8 million in bottom line profitability, including our PPP loan forgiveness of $4.8 million. We achieved a $10.5 million improvement in net income and a $4.4 million improvement in operating cash flow compared to 2020, while reducing our debt by $7.2 million. In addition, total backlog as of December 31, 2021 increased to $501.7 million compared to $476.2 as of December 31, 2020,” said Dorith Hakim, president and CEO.

Added Ms. Hakim, “Today we filed our Annual Report on Form 10-K for the year ended December 31, 2021. We are focused on becoming current with our Securities and Exchange Commission reports which will occur upon the filing of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022 (the “Forms 10-Q”). The Company believes the filing of the Forms 10-Q will resolve the condition that led to NYSE American suspending trading in the Company’s common stock on the Exchange and its determination to commence proceedings to delist the common stock from the Exchange. The Forms 10-Q will be filed as soon as practicable.”

Concluded Ms. Hakim, “Having completed a number of programs during 2021, we expect 2022 will be a transition year for CPI Aero while we prepare to ramp up on newer programs. As a result, we expect lower revenue in 2022 and have implemented actions in the first quarter of 2022 to align our costs with our outlook for revenue, and maintain our commitment to sustain profitability and positive operating cash flow for the year. 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 for our customers.”

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. 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, other than statements of historical fact, included or incorporated in this press release are forward-looking statements. The words “expect,” “will,” “anticipate,” believe,” “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 resolution of the condition that led to the NYSE American suspending trading in the Company’s common stock and its determination to commence delisting proceedings and the Company’s expected financial results for the year ending December 31, 2022.

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 period ended March 31, 2022 and the period ending June 30, 2022, any delay in the filing of Securities and Exchange Commission 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 for the period ended December 31, 2021 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.us on Twitter @CPIAERO.

Contacts:

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


 

 

 

 

 

 

 

 

 

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

December 31,
2021

 

 

December 31,
2020
(As Restated) 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash

 

$

6,308,866

 

 

$

6,033,537

 

Accounts receivable, net

 

 

4,967,714

 

 

 

4,962,906

 

Insurance recovery receivable

 

 

2,850,000

 

 

 

 

Contract assets

 

 

24,459,339

 

 

 

19,729,638

 

Inventory

 

 

4,028,925

 

 

 

6,386,288

 

Refundable income taxes

 

 

40,000

 

 

 

40,000

 

Prepaid expenses and other current assets

 

 

625,075

 

 

 

534,857

 

Total Current Assets

 

 

43,279,919

 

 

 

37,687,226

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

 

7,796,768

 

 

 

4,075,048

 

Property and equipment, net

 

 

1,646,863

 

 

 

2,521,742

 

Intangibles, net

 

 

125,000

 

 

 

250,000

 

Goodwill

 

 

1,784,254

 

 

 

1,784,254

 

Other assets

 

 

372,741

 

 

 

191,179

 

Total Assets

 

$

55,005,545

 

 

$

46,509,449

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

10,429,018

 

 

$

12,092,684

 

Accrued expenses

 

 

6,102,587

 

 

 

5,937,921

 

Litigation settlement obligation

 

 

3,003,259

 

 

 

 

Contract liabilities

 

 

5,122,766

 

 

 

1,650,549

 

Loss reserve

 

 

1,495,714

 

 

 

2,009,247

 

Current portion of long-term debt

 

 

3,365,181

 

 

 

6,501,666

 

Operating lease liabilities

 

 

1,580,453

 

 

 

1,819,237

 

Income taxes payable

 

 

5,165

 

 

 

948

 

Total Current Liabilities

 

 

31,104,143

 

 

 

30,012,252

 

 

 

 

 

 

 

 

 

 

Line of credit

 

 

21,250,000

 

 

 

20,738,685

 

Long-term operating lease liabilities

 

 

6,445,728

 

 

 

2,537,149

 

Long-term debt, net of current portion

 

 

1,540,747

 

 

 

6,205,095

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

60,340,618

 

 

 

59,493,181

 

 

 

 

 

 

 

 

 

 

Shareholders’ Deficit:

 

 

 

 

 

 

 

 

Common stock - $.001 par value; authorized 50,000,000 shares, 12,335,683 and 11,951,271 shares, respectively, issued and outstanding

 

 

12,336

 

 

 

11,951

 

Additional paid-in capital

 

 

72,833,742

 

 

 

72,005,841

 

Accumulated deficit

 

 

(78,181,151

)

 

 

(85,001,524

)

Total Shareholders’ Deficit

 

 

(5,335,073

)

 

 

(12,983,732

)

Total Liabilities and Shareholders’ Deficit

 

$

55,005,545

 

 

$

46,509,449

 


 

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

2021

 

 

2020
(As Restated)

 

 

 

 

 

 

 

 

Revenue

 

$

103,369,544

 

 

$

87,584,690

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

88,364,452

 

 

 

77,824,732

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

15,005,092

 

 

 

9,759,958

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

11,823,921

 

 

 

12,046,170

 

Income (loss) from operations

 

 

3,181,171

 

 

 

(2,286,212

)

 

 

 

 

 

 

 

 

 

Other expense:

 

 

 

 

 

 

 

 

Other income

 

 

4,795,000

 

 

 

 

Interest expense

 

 

(1,141,189

)

 

 

(1,421,955

)

Total other income (expense), net

 

 

3,653,811

 

 

 

(1,421,955

)

Income (loss) before provision for income taxes

 

 

6,834,982

 

 

 

(3,708,167

)

 

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

 

14,609

 

 

 

(53,414

)

Net income (loss)

 

$

6,820,373

 

 

$

(3,654,753

)

 

 

 

 

 

 

 

 

 

Income (loss) per common share-basic

 

$

0.56

 

 

$

(0.31

)

 

 

 

 

 

 

 

 

 

Income (loss) per common share-diluted

 

$

0.56

 

 

$

(0.31

)

 

 

 

 

 

 

 

 

 

Shares used in computing income (loss) per common share:

 

 

 

 

 

 

 

 

Basic

 

 

12,193,826

 

 

 

11,884,307

 

Diluted

 

 

12,193,826

 

 

 

11,884,307