CPI Aerostructures Reports Fourth Quarter and Full Year 2024 Results

Fourth Quarter 2024 vs. Fourth Quarter 2023

   -- Revenue of $21.8 million compared to $23.5 million; 
 
   -- Gross profit of $4.3 million compared to $4.1 million; 
 
   -- Gross margin of 20.0% compared to 17.4%; 
 
   -- Net income of $1.0 million ($1.4 million excluding deferred tax asset 
      valuation impact) compared to net income of $14.8 million ($0.6 million 
      excluding deferred tax asset valuation impact); 
 
   -- Earnings per share of $0.08 ($0.11 excluding deferred tax asset valuation 
      impact) compared to earnings per share of $1.20 ($0.05 excluding deferred 
      tax asset valuation impact); 
 
   -- Adjusted EBITDA(1) of $2.3 million compared to $1.8 million; 
 
   -- Cash flow from operations of $4.4 million compared to $3.1 million. 

Full Year 2024 vs. Full Year 2023

   -- Revenue of $81.1 million compared to $86.5 million; 
 
   -- Gross profit of $17.2 million compared to $17.1 million; 
 
   -- Gross margin of 21.3% compared to 19.7%; 
 
   -- Net income of $3.3 million ($3.7 million excluding deferred tax asset 
      valuation impact) compared to $17.2 million ($3.0 million excluding 
      deferred tax asset valuation impact); 
 
   -- Earnings per share of $0.26 ($0.29 excluding deferred tax asset valuation 
      impact) compared to $1.40 ($0.25 excluding deferred tax asset valuation 
      impact); 
 
   -- Adjusted EBITDA(1) of $7.8 million compared to $7.5 million; 
 
   -- Cash flow from operations of $3.6 million compared to $3.9 million; 
 
   -- Debt as of December 31, 2024 of $17.4 million compared to $20.1 million 
      as of December 31, 2023. 

EDGEWOOD, N.Y., March 31, 2025 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ("CPI Aero" or the "Company") (NYSE American: CVU) today announced financial results for the twelve month period ended December 31, 2024.

"Although our 2024 revenue was lower than our 2023 revenue, we increased our gross profit margin by 150 basis points. Our net income, excluding the tax asset valuation impact, was up 22.2% with EPS up 19.5% from prior year due to operational efficiencies, lower SG&A and interest costs.

"We generated $3.6 million in cash from operations in 2024 and reduced our debt by another $2.7 million reaching an all-time low debt balance since 2011. Our Debt-to-Adjusted EBITDA Ratio at year-end was 2.2, which marks our eighth consecutive quarter-end below 3.0," said Dorith Hakim, President and CEO.

Added Ms. Hakim, "We ended the year with a strong backlog of $510 million, which includes multiple new program awards from L3Harris, Raytheon and Embraer. We remain confident in CPI Aero's long-term outlook and look forward to capitalizing on the multiple opportunities ahead as we continue to build on our long-standing relationships with 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 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. Words such as "remain confident," "outlook," "opportunities ahead," "continue, " and similar expressions are intended to identify these forward-looking statements. These forward-looking statements include the Company's confidence in its long-term outlook, expectations for future opportunities, and plans to continue strengthening customer relationships. 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, 2024 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$(R)$ is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO.

 
Contacts: 
Investor Relations Counsel       CPI Aerostructures, Inc. 
 Alliance Advisors IR             Philip Passarello 
 Jody Burfening                   Chief Financial Officer 
 (212) 838-3777                   (631) 586-5200 
 cpiaero@allianceadvisors.com     ppassarello@cpiaero.com 
                                  www.cpiaero.com 
 
 
 
             CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES 
                     CONSOLIDATED BALANCE SHEETS 
 
                                      December 31,   December 31, 
                                          2024           2023 
                                      ------------   ------------ 
ASSETS 
Current Assets: 
   Cash                               $  5,490,963   $  5,094,794 
   Accounts receivable, net              3,716,378      4,352,196 
   Contract assets, net                 32,832,290     35,312,068 
   Inventory, net                          918,288      1,436,647 
   Prepaid expenses and other 
    current assets                         634,534        718,026 
                                       -----------    ----------- 
Total Current Assets                    43,592,453     46,913,731 
 
Operating lease right-of-use assets      2,856,200      4,740,193 
Property and equipment, net                767,904        794,056 
Deferred tax asset                      18,837,576     19,938,124 
Goodwill                                 1,784,254      1,784,254 
Other assets                               143,615        189,774 
                                       -----------    ----------- 
Total Assets                          $ 67,982,002   $ 74,360,132 
                                       ===========    =========== 
 
LIABILITIES AND SHAREHOLDERS' 
EQUITY 
Current Liabilities: 
   Accounts payable                   $ 11,097,685   $ 10,487,012 
   Accrued expenses                      7,922,316     10,275,695 
   Contract liabilities                  2,430,663      5,937,629 
   Loss reserve                             22,832        337,351 
   Current portion of line of credit     2,750,000      2,400,000 
   Current portion of long-term debt        26,483         44,498 
   Operating lease liabilities           2,162,154      1,999,058 
   Income taxes payable                     58,209         30,107 
                                       -----------    ----------- 
Total Current Liabilities               26,470,342     31,511,350 
 
Line of credit, net of current 
 portion                                14,640,000     17,640,000 
Long-term operating lease 
 liabilities                               938,418      3,100,571 
Long-term debt, net of current 
 portion                                        --         26,483 
                                       -----------    ----------- 
Total Liabilities                       42,048,760     52,278,404 
                                       -----------    ----------- 
 
Commitments and Contingencies (see 
note 16) 
Shareholders' Equity: 
   Common stock - $.001 par value; 
    authorized 50,000,000 shares, 
    12,978,741 and 12,771,434 
    shares, respectively, issued and 
    outstanding                             12,979         12,771 
   Additional paid-in capital           74,424,651     73,872,679 
   Accumulated deficit                 (48,504,388)   (51,803,722) 
                                       -----------    ----------- 
Total Shareholders' Equity              25,933,242     22,081,728 
                                       -----------    ----------- 
Total Liabilities and Shareholders' 
 Equity                               $ 67,982,002   $ 74,360,132 
                                       ===========    =========== 
 
 
 
             CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES 
                CONSOLIDATED STATEMENTS OF OPERATIONS 
               Years ended December 31, 2024 and 2023 
 
                                          2024           2023 
                                       -----------   ------------ 
Revenue                                $81,078,864   $ 86,466,321 
 
Cost of sales                           63,840,803     69,400,693 
                                        ----------    ----------- 
 
Gross profit                            17,238,061     17,065,628 
 
Selling, general and administrative 
 expenses                               10,506,439     10,758,624 
                                        ----------    ----------- 
Income from operations                   6,731,622      6,307,004 
 
Interest expense                        (2,288,834)    (2,455,214) 
                                        ----------    ----------- 

Income before benefit for income 
 taxes                                   4,442,788      3,851,790 
 
Provision (Benefit) from income taxes    1,143,454    (13,349,414) 
                                        ----------    ----------- 
Net income                             $ 3,299,334   $ 17,201,204 
                                        ==========    =========== 
 
Income per common share-basic          $      0.26   $       1.40 
Income per common share-diluted        $      0.26   $       1.38 
 
Shares used in computing income per 
common share: 
   Basic                                12,593,213     12,311,219 
   Diluted                              12,709,237     12,471,961 
 
 

Unaudited Reconciliation of GAAP to Non-GAAP Measures

Note: (1) Adjusted EBITDA is a non-GAAP measure defined as GAAP income from operations plus depreciation, amortization and stock-compensation expense.

Adjusted EBITDA as calculated by us may be calculated differently than Adjusted EBITDA for other companies. We have provided Adjusted EBITDA because we believe it is a commonly used measure of financial performance in comparable companies and is provided to help investors evaluate companies on a consistent basis, as well as to enhance understanding of our operating results. Adjusted EBITDA should not be construed as either an alternative to income from operations or net income or as an indicator of our operating performance or an alternative to cash flows as a measure of liquidity. The adjustments to calculate this non-GAAP financial measure and the basis for such adjustments are outlined below. Please refer to the following table below that reconciles GAAP income from operations to Adjusted EBITDA.

The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:

Depreciation. The Company incurs depreciation expense (recorded in cost of sales and in selling, general and administrative expenses) related to capital assets purchased, leased or constructed to support the ongoing operations of the business. The assets are recorded at cost or fair value and are depreciated over the estimated useful lives of individual assets.

Stock-based compensation expense. The Company incurs non-cash expense related to stock-based compensation included in its GAAP presentation of cost of sales and selling, general and administrative expenses. Management believes that exclusion of these expenses allows comparison of operating results to those of other companies that disclose non-GAAP financial measures that exclude stock-based compensation.

Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the Adjusted EBITDA financial adjustments described above, and investors should not infer from the Company's presentation of this non-GAAP financial measure that these costs are unusual, infrequent, or non-recurring.

Reconciliation of income from operations to Adjusted EBITDA is as follows:

 
                Three months ended     Twelve months ended 
                   December 31,            December 31, 
               ---------------------  ---------------------- 
                  2024       2023       2024       2023 
Income From 
 Operations     2,074,655  1,545,001  6,731,622  6,307,004 
Depreciation      124,746    119,976    430,006    470,950 
Stock-based 
 compensation      74,911    110,771    604,682    770,626 
                ---------  ---------  ---------  --------- 
Adjusted 
 EBITDA         2,274,312  1,775,748  7,766,310  7,548,580 
 
 

(END) Dow Jones Newswires

March 31, 2025 17:15 ET (21:15 GMT)