Lending reports

CPI Aerostructures publishes its fourth quarter and full year

Fourth quarter 2021 versus fourth quarter 2020 (restated)

  • Revenues 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% versus 14.1%;
  • Net loss of ($0.5) M compared to net earnings of $0.2 M;
  • Loss per diluted share of $(0.04) compared to earnings per diluted share of $0.02;
  • Operating cash flow of $4.1 million compared to $1.7 million.

Full year 2021 over full year 2020 (recalculated)

  • Revenues 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% versus 11.1%;
  • Net profit of $6.8 million ($2.0 million excluding $4.8 million PPP loan forgiveness) vs. net loss of ($3.7 million);
  • Diluted earnings per share of $0.56 ($0.17 excluding $0.39 PPP loan forgiveness) versus a diluted loss per share of ($0.31);
  • Operating cash flow of $2.8 million compared to a usage 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 PPP loan canceled by the lender and the Small Business Administration on July 1, 2021.

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

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

Ms. Hakim added, “Today we filed our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. We are focused on updating our Securities and Exchange Commission reports which will will produce when filing 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 that the filing of the Forms 10-Q will resolve the condition which resulted in NYSE American suspending trading of the Company’s common stock on the Exchange and its decision to initiate proceedings to delist the common stock from the Exchange. Forms 10-Q will be filed as soon as practicable.”

Ms. Hakim concluded: “Having completed a number of programs in 2021, we expect 2022 to be a transition year for CPI Aero as we prepare to ramp up new programs. As a result, we expect revenue to decline in 2022 and have implemented measures in the first quarter of 2022 to align our costs with our revenue outlook and maintain our commitment to maintaining profitability and positive operating cash flow for the ‘year. We remain confident in CPI Aero’s long-term prospects and look forward to future opportunities as we build on our reputation for high quality and reliable performance for our customers.

About CPI Aero

CPI Aero is an American manufacturer of structural assemblies for fixed-wing aircraft, helicopters, and airborne intelligence surveillance and reconnaissance and electronic warfare systems, primarily for national security markets. Within the global aerostructures 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 master of the United States Department of Defense, mainly the Air Force. Alongside its assembly activities, CPI Aero provides engineering, program management, supply chain management and MRO services. CPI Aero is part of 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 facts, included or incorporated in this press release are forward-looking statements. The words “expect”, “will”, “anticipate”, believe”, “outlook”, “future opportunities” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. identification. These forward-looking statements include, among other things, statements regarding the resolution of the condition that caused the NYSE American to suspend 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 differ materially from these forward-looking statements. Factors that could cause future results to differ materially from the Company’s current expectations include, among others, the Company’s completion of its financial statements for the period ending March 31, 2022 and the period ending June 30, 2022, any delays in filing periodic reports with the Securities and Exchange Commission, adverse effects on the Company’s business related to the disclosures made in this press release or customer or supplier reactions, any adverse developments in pending legal proceedings or the initiation of new legal proceedings; and volatility of the Company’s stock price results.

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 the important factors set forth under the heading “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 choose to do so at some time in 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 statements, whether 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:

CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS
The 31st of December,
2021
The 31st of December,
2020
(as retired)
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
Intangible assets, net 125,000 250,000
Good will 1,784,254 1,784,254
other assets 372,741 191 179
Total assets $ 55,005,545 $ 46,509,449
LIABILITIES AND DEFICIT OF SHAREHOLDERS
Current liabilities:
Accounts payable $ 10,429,018 $ 12,092,684
Increased expenses 6,102,587 5,937,921
Obligation to settle disputes 3,003,259
Contract liabilities 5,122,766 1,650,549
Loss reserve 1,495,714 2,009,247
Portion of long-term debt 3,365,181 6,501,666
Operating lease debts 1,580,453 1,819,237
Taxes payable on income 5,165 948
Total current liabilities 31 104 143 30,012,252
Credit line 21,250,000 20,738,685
Long-term operating lease debts 6,445,728 2,537,149
Long-term debt, net of current portion 1,540,747 6,205,095
Total responsibilities 60 340 618 59 493 181
Shareholders’ deficit:
Common Stock – par value $0.001; authorized 50,000,000 shares, 12,335,683 and 11,951,271 shares, respectively, issued and outstanding 12,336 11,951
Premium 72,833,742 72,005,841
Accumulated deficit (78 181 151 ) (85,001,524 )
Total shareholder deficit (5,335,073 ) (12,983,732 )
Total liabilities and shareholder deficit $ 55,005,545 $ 46,509,449
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
Years ended December 31 2021
2020
(as retired)
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
Operating income (loss) 3,181,171 (2,286,212 )
Other expenses:
Other income 4,795,000
Interest expense (1,141,189 ) (1,421,955 )
Total other income (expenses), net 3,653,811 (1,421,955 )
Profit (loss) before provision for income taxes 6,834,982 (3,708,167 )
Provision for (profit) income taxes 14,609 (53,414 )
Net profit (loss) $ 6,820,373 $ (3,654,753 )
Earnings (loss) per basic ordinary share $ 0.56 $ (0.31 )
Earnings (loss) per diluted common share $ 0.56 $ (0.31 )
Shares used in calculating income (loss) per common share:
Basic 12,193,826 11,884,307
Diluted 12,193,826 11,884,307