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CPI Aerostructures, Inc. (“CPI Aero
®”) (NYSE MKT:CVU) today announced financial results for 2014 first quarter ended March 31, 2014.
First Quarter 2014 vs. First Quarter 2013
Revenue increased by 9.8% to $21,883,517, compared to $19,927,433;
Gross margin was 20.5%, compared to 22.3%;
Pre-tax income increased by 3.6% to $2,508,869, compared to $2,421,276; and,
Net income increased by 3.4% to $1,728,869, or $0.20 per diluted share, compared to $1,671,276, or $0.20 per diluted share.
Douglas J. McCrosson, CPI Aero’s President & CEO, stated, “As expected, the 9.8% increase in total revenue for 2014 first quarter, as compared to 2013 first quarter, was mainly due to a 30% increase in revenue from commercial subcontracts, to over $7.2 million. This was the result of higher production rates from our contracts with Cessna and Embraer, programs currently in production stage. Both revenue generated from military subcontracts and direct government contracts slightly increased to $14.2 million and $0.5 million, respectively.”
Mr. McCrosson added, “Our gross margin for 2014 first quarter was within our expected range for the year. Our selling, general and administrative (“SG&A”) expenses for 2014 first quarter, as compared to 2013 first quarter, decreased by approximately $40,000, while as a percent of revenue, SG&A substantially decreased to 8.4%, as compared to 9.4%, mainly due to steps we took to improve the efficiency of our administrative processes.”
Discussing backlog and contract awards, Mr. McCrosson added, “Our total backlog at March 31, 2014 was $410.3 million, as compared to $431.4 million at December 31, 2013. This decrease was attributable to a $6.9 million decrease in backlog on commercial programs and a $14.2 million decrease in backlog for military programs. At March 31, 2014, unfunded backlog was $314.1 million which is primarily comprised of the long-term contracts that we received from Boeing, Spirit and NGC during 2008, from Honda and Bell during 2011 and from Cessna, Sikorsky and Embraer during 2012. These are programs for which we expect to receive yearly funded orders.