EDGEWOOD, N.Y., Aug. 08, 2017 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ("CPI Aero®") (NYSE American:CVU) today announced financial results for the three-month and six-month periods ended June 30, 2017.  

2Q 2017 vs. 2Q 2016
  • Revenue was $16.7 million compared to $22.3 million; 
  • Gross profit was $3.7 million compared to $5.0 million;
  • Pre-tax income was $1.2 million compared to $2.8 million;
  • Net income was $0.8 million compared to $1.8 million;
  • Earnings per diluted share were $0.09 per diluted share compared to $0.21 per diluted share;
  • Cash flow from operations was $1.8 million compared to $(1.6) million; and
  • Total backlog at $394.8 million with multi-year defense contracts comprising 80%

1H 2017 vs. 1H 2016
  • Revenue was $36.8 million compared to $35.0 million;
  • Gross profit (loss) was $8.2 million compared to $(6.6) million;
  • Pre-tax income (loss) was $3.2 million compared to $(11.8) million;
  • Net income (loss) was $2.0 million compared to $(7.4) million;
  • Earnings (loss) per diluted share of $0.23 compared to $(0.86) per diluted share; and
  • Cash flow from operations was $(1.1) million compared to $(7.3) million

"We delivered strong financial performance in the second quarter that exceeded our profit goal," said Douglas McCrosson, president and chief executive officer of CPI Aero. "Earnings were solid as we continue to see the results of cost reduction and process improvement initiatives and despite the revenue pull forward we reported last quarter that shifted sales from our F-16 program to the first quarter from the second. Cash flow from operations was particularly strong as investments in enhanced ERP tools, our commitment to lean manufacturing principles and a disciplined approach to cash management took hold. We had a $3.5 million reduction in inventory in the second quarter and a $5.7 million reduction in inventory year to date, and now expect to be cash flow positive in each of the third and fourth quarters of this year. This would mark a substantial turnaround in cash flow in 2017 compared to a use of cash in 2016."

"We continued to execute on our defense market strategy, securing new orders from UTC Aerospace Systems for their new TacSAR surveillance system and from Sikorsky on its MH-53E platform. We also delivered our first products to Lockheed Martin for the F-35 as our lock assembly program entered its production phase. Looking ahead, we see signs that contracts are starting to flow to the prime contractors and down through the supply chain. As an example, following the signing of the U.S. Army's 'Multi-Year IX' Black Hawk contract with Sikorsky in June, we were subsequently awarded a five-year, $21 million supply agreement by Sikorsky for fuel panel assemblies for the Black Hawk. Furthermore, recent wins, particularly in pod-based systems, have raised our profile in the marketplace and garnered considerable customer interest in CPI Aero at the Paris Air Show. We left Paris with confidence that the defense market is strong and growing, both here and abroad, and that CPI Aero is a valued and well-respected Tier 1 defense subcontractor. Our defense exposure and backlog, together with improving defense fundamentals and consistent execution across all facets of our business, place us firmly on a growth trajectory," concluded Mr. McCrosson.

Financial Outlook

CPI Aero reaffirms its prior financial guidance for fiscal 2017 of:
  • Revenue in the range of $82.5 million and $87.0 million;
  • Pre-tax income to be at the high end of a range of $8.1 million to $8.4 million. 

Conference Call Management will host a conference call on Tuesday, August 8, 2017, at 8:30 a.m. ET to discuss these results as well as recent corporate developments. After opening remarks, there will be a question and answer period. Interested parties may participate in the call by dialing 844-378-6486 or 412-542-4181. Please call in 10 minutes before the conference call is scheduled to begin and ask for the CPI Aero call. The conference call will also be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the live call, please go to www.cpiaero.com, click on the Investor Relations section, then to the Event Calendar. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days.

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. CPI Aero is included in the Russell Microcap® Index.

The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero's SEC reports, including CPI Aero's Form 10-K for the year ended December 31, 2016, and Form 10-Q for the three-month period ended March 31, 2017.

CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO. 

- Tables to Follow -

  For the Three Months Ended     For the Six Months Ended  
  June 30,     June 30,  
  2017 2016     2017 2016  
  (Unaudited) (Unaudited)  
Revenue  $ 16,731,951  $ 22,280,964      $ 36,764,652  $ 34,950,997  
Cost of sales   13,048,203   17,246,963       28,543,390   41,556,100  
Gross profit (loss)   3,683,748   5,034,001       8,221,262   (6,605,103)  
Selling, general and administrative expenses   2,002,198   1,868,787       4,166,076   4,589,170  
Income (loss) from operations   1,681,550   3,165,214       4,055,186   (11,194,273)  
Interest expense   465,903   323,634       856,238   599,367  
Income (loss) before provision for          
(benefit from) income taxes   1,215,647   2,841,580       3,198,948   (11,793,640)  
Provision for (benefit from) income taxes   450,000   1,051,000       1,184,000   (4,364,000)  
Net income (loss)   765,647   1,790,580       2,014,948   (7,429,640)  
Other comprehensive income          
net of tax -          
Change in unrealized gain (loss)          
interest rate swap   (1,000)   (73,936)       4,200   (70,483)  
Comprehensive income (loss) $ 764,647 $ 1,716,644     $ 2,019,148 $ (7,500,123)  
Income (loss) per common share - basic $ 0.09 $ 0.21     $ 0.23 $ (0.86)  
Income (loss) per common share - diluted $ 0.09 $ 0.21     $ 0.23 $ (0.86)  

  June 30,     December 31,
  2017     2016
Current Assets:          
Cash $ 1,115,297     $ 1,039,586
Accounts receivable, net of allowance for doubtful accounts of $0 as of June 30, 2017 and $535,514 as of December 31, 2016   6,340,429       8,514,613
Costs and estimated earnings in excess of billings on uncompleted    
contracts   101,692,410       99,578,526
Prepaid expenses and other current assets   2,495,507       2,155,481
Total current assets   111,643,643       111,288,206
Property and equipment, net   2,081,045       2,298,610
Deferred income taxes, net   2,797,066       3,952,598
Other assets   220,392       252,481
Total Assets $ 116,742,146     $ 117,791,895
Current Liabilities:    
Accounts payable $ 9,126,997     $ 14,027,457
Accrued expenses   1,314,154       1,386,147
Billings in excess of costs and estimated earnings on uncompleted    
contracts   922,832       115,337
Current portion of long-term debtContract loss   1,745,492489,598       1,341,9241,377,171
Line of credit   24,238,685       22,438,685
Income tax payable   6,000       6,000
Total current liabilities   37,843,758       40,692,721
Long-term debt, net of current portion   7,963,325       8,860,724
Other liabilities   613,204       632,744
Total Liabilities   46,420,287       50,186,189
Shareholders' Equity:    
Common stock - $.001 par value; authorized 50,000,000 shares,    
8,832,649 and 8,739,836 shares, respectively,    
issued and outstanding   8,833       8,738
Additional paid-in capital   53,521,860       52,824,950
Retained earnings   16,795,966       14,781,018
Accumulated other comprehensive loss   (4,800)       (9,000)
Total Shareholders' Equity   70,321,859       67,605,706
Total Liabilities and Shareholders' Equity $ 116,742,146     $ 117,791,895

Contact:Vincent Palazzolo                                Chief Financial Officer                        CPI Aero                                               (631) 586-5200                                       www.cpiaero.com                                                                                              Investor Relations Counsel:LHAJody Burfening/Sanjay M. Hurry(212) 838-3777cpiaero@lhai.comwww.lhai.com

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