CPI Aerostructures Reports Second Quarter and Six Month 2024 Results

August 13, 2024

Second Quarter 2024 vs. Second Quarter 2023

  • Revenue of $20.8 million compared to $20.5 million;

  • Gross profit of $5.1 million compared to $4.6 million;

  • Gross margin of 24.6% compared to 22.4%;

  • Net income of $1.4 million compared to $1.2 million;

  • Earnings per diluted share of $0.11 compared to $0.09;

  • Adjusted EBITDA (1) of $2.6 million compared to $2.1 million;

  • Cash flow used in operations of $(0.6) million compared to $0.0 million.

Six Months 2024 vs. Six Months 2023

  • Revenue of $39.9 million compared to $42.6 million;

  • Gross profit of $8.7 million compared to $9.3 million;

  • Gross margin of 21.7% compared to 21.8%;

  • Net income of $1.6 million compared to $2.1 million;

  • Earnings per diluted share of $0.12 compared to $0.17;

  • Adjusted EBITDA (1) of $3.8 million compared to $4.3 million

  • Cash flow used in operations of $(1.6) million compared to $0.9 million generated by operations;

  • Debt as of June 30, 2024 of $18.9 million compared to $21.3 million at June 30, 2023.

Edgewood, NY – CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) today announced financial results for the three and six month periods ended June 30, 2024.

“We made solid progress in the second quarter 2024 as we continue to transition from legacy programs to programs of the future. Although our second quarter revenue was marginally higher than second quarter 2023, gross profit margin increased by 220 basis points and our Net Income increased by 21.9% due to stronger operational performance and change in product mix. In addition, our second quarter adjusted EBITDA of $2.6 million is 25.0% higher than second quarter 2023. Our six-month results reflect the lower first quarter of 2024 revenues, while overcoming the gross profit impact caused by unfavorable year-over-year product mix in that quarter.

We reduced our debt by $2.4 million over the last twelve months, and our June 30, 2024 Debt-to-Adjusted EBITDA Ratio was 2.7, which marks our sixth consecutive quarter-end below 3.0. Our operations consumed $1.6 million in cash during the first six months of 2024 to support the ramp-up associated with our Pod programs,” said Dorith Hakim, President and CEO.

Added Ms. Hakim, “We have seen an uptick in request for quotes based on our strong performance and strengthening of our financial position. We expect that our competitive position will continue to drive program wins, building off of our backlog of $512 million as of June 30, 2024.”

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 “expect,” 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, 2023 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 www.cpiaero.com, and follow us on X (Twitter) @CPIAERO.

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