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CPI Aerostructures, Inc. (“CPI Aero
®”) (NYSE MKT: CVU) today announced financial results for the 2013 third quarter and nine months ended September 30, 2013.
Third Quarter 2013 vs. Third Quarter 2012
Revenue was $20,664,645 compared to $21,340,831;
Gross margin was 21.7% compared to 27.2%;
Pre-tax income was $2,772,100 compared to $4,025,437; and,
Net income was $1,911,100 or $0.23 per diluted share, compared to $2,795,437 or $0.33 per diluted share.
Nine Months 2013 vs. Nine Months 2012
Revenue was $61,702,530 compared to $61,916,552;
Gross margin was 21.3% compared to 26.7%;
Pre-tax income was to $7,777,650 compared to $10,759,775; and,
Net income was $5,366,650 or $0.63 per diluted share compared to $7,410,775 or $0.96 per diluted share.
* Diluted earnings per share for the 2013 nine month period was calculated on 10% more shares outstanding, than in the prior year period due to the Company’s 1.2 million share public offering completed in July 2012.
Edward J. Fred, CPI Aero’s CEO & President, stated, “As projected, 2013 third quarter and nine month revenue and net income decreased as compared to the same periods of 2012. We expect our full year 2013 results to be more similar to those of 2011.”
Mr. Fred continued, “The slight decrease in total revenue for the 2013 nine month period, as compared to the same period of 2012, was due to substantially lower revenue from prime government contracts, offset by higher revenues generated from government and commercial subcontracts. Specifically:
Revenue generated from government subcontracts increased by 7.7% to approximately $41.5 million, due to $6.9 million higher revenue from the A-10 program, $3.0 million higher revenue from our program with UTC Aerospace, offset by a $7.5 million decrease from the E-2D program.
Revenue generated from commercial subcontracts increased by 5.6% to approximately $19.2 million, primarily due to increased production rates on the G650 program.
Revenue generated from prime government contracts substantially decreased to approximately $1.0 million, a decrease of 80%.”
Mr. Fred added, “As we reported in our second quarter earnings announcement, our gross margin for 2013 was affected by adjustments to our long-term programs with Spirit, Northrop Grumman and Boeing, as well as our C-5 TOP program. Our gross margin should substantially improve in the fourth quarter of 2013 and we currently expect our gross margin for the 2013 full year to be within the range of 23% to 24%.”