CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: CVU) announced today preliminary (unaudited) results for the year ended December 31, 2012. The Company plans to issue its 2012 audited final results on March 8, 2013.
2012 Preliminary (Unaudited) Results vs. 2011 Audited Results:
- Revenue of approximately $89.6 million, an increase of 21% from $74.1 million
- Net income of approximately $11.1 million, an increase of 50% from $7.4 million
- Net income per diluted share of $1.42, an increase of 37% from $1.04
- Gross margin exceeded our expected range of 25%-27%
Edward J. Fred, CPI Aero’s President & CEO, stated, “2012 was the best year in CPI Aero’s history in terms of revenue and net income; however we underestimated the severity of the marketplace uncertainty that weighed on our industry for the better part of 2012. We have reported for some time that the looming threat of forced, across-the-board government spending cuts, known as sequestration, had resulted in delayed contract decisions by many prime contractors in the aerospace and defense sector, including our customers. In our method of accounting, CPI Aero begins recording revenue against contracts as costs are incurred and therefore the timing of receipt of contract awards has an impact on total revenue. In November 2012, when we lowered our 2012 guidance (initially provided in late 2011), we had expectations that new defense and non-defense subcontract awards were forthcoming, with sufficient time remaining until the end of the year to generate revenue to achieve the new guidance. While we did receive an expected significant commercial contract before 2012 year-end, it came too late to book meaningful revenue in the fourth quarter. Additionally, a large defense contract which we expected to receive in late 2012 is currently projected to be received during the first quarter of 2013.”