CPI Aerostructures Reports First Quarter 2024 Results

*First Quarter 2024 vs. First Quarter 2023*· Revenue of $19.1 million compared to $22.0 million;
· Gross profit of $3.6 million compared to $4.7 million;
· Gross profit margin of 18.6% compared to 21.2%;
· Net income of $0.2 million compared to $1.0 million;
· Earnings per share of $0.01 compared to $0.08;
· Cash flow used in operations of ($1.0) million compared to $0.9 million provided by cash flow from operations;
· Debt as of March 31, 2024 of $19.1 million compared to $22.1 million as of March 31, 2023.
EDGEWOOD, N.Y., May 15, 2024 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero” or the “Company”) (NYSE American: CVU) today announced financial results for the three month period ended March 31, 2024.

“As anticipated, our first quarter 2024 revenue was 13% lower than first quarter 2023, driven primarily by the completion of deliveries of Raytheon’s Next Generation Jammer (“NGJ”) Mid Band Pods LRIP 2 in 2023. In addition, gross profit decreased by 260 basis points due to unfavorable year-over-year mix. We consumed $1.0 million in cash to repay our debt and prepare for the ramp-up associated with LRIP 3 of the NGJ Mid Band Pod program which will resume deliveries in the second half of the year. We expect 2024 to be another solid year building off our progress in 2023,” said Dorith Hakim, President and CEO.

Added Ms. Hakim, “We remain focused on exceeding our customers’ performance expectations and are confident in CPI Aero’s long term outlook as we continue to build on our backlog of $510 million as of March 31, 2024.”

*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. The words “expect, ”outlook” and similar expressions are intended to identify these forward-looking statements. 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, 2023 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® 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
LHA Investor Relations
Jody Burfening
(212) 838-3777
cpiaero@lhai.com   CPI Aerostructures, Inc.
Andrew L. Davis
Chief Financial Officer
(631) 586-5200
adavis@cpiaero.com 
www.cpiaero.com 

*CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
*CONSOLIDATED BALANCE SHEETS** * * *March 31, 2024 *
*(Unaudited)* * *   *December 31, **2023*  
*ASSETS*                
Current Assets:                
Cash   $ 3,018,068     $ 5,094,794  
Accounts receivable, net     4,982,137       4,352,196  
Contract assets, net     34,016,949       35,312,068  
Inventory     1,281,219       1,436,647  
Refundable income taxes     40,000       40,000  
Prepaid expenses and other current assets     532,458       678,026  
*Total Current Assets* * * * * *43,870,831* * * * * * * *46,913,731* * *                
Operating lease right-of-use assets     4,277,724       4,740,193  
Property and equipment, net     741,264       794,056  
Deferred tax asset     19,906,903       19,938,124  
Goodwill     1,784,254       1,784,254  
Other assets     174,530       189,774  
*Total Assets* * * *$* *70,755,506* * * * * *$* *74,360,132* * *                
*LIABILITIES AND SHAREHOLDERS’ EQUITY*                
Current Liabilities:                
Accounts payable   $ 11,864,561     $ 10,487,012  
Accrued expenses     7,943,246       10,275,695  
Contract liabilities     4,497,225       5,937,629  
Loss reserve     133,206       337,351  
Current portion of line of credit     2,160,000       2,400,000  
Current portion of long-term debt     30,010       44,498  
Operating lease liabilities, current     2,037,547       1,999,058  
Income taxes payable     38,358       30,107  
*Total Current Liabilities* * * * * *28,704,153* * * * * * * *31,511,350* * *                
Line of credit, net of current portion     16,920,000       17,640,000  
Long-term operating lease liabilities     2,581,128       3,100,571  
Long-term debt, net of current portion     18,736       26,483  
*Total Liabilities* * * * * *48,224,017* * * * * * * *52,278,404* * *                
Commitments and Contingencies (see note 11)                
*Shareholders’ Equity:*                
Common stock - $.001 par value; authorized 50,000,000 shares, 12,784,768 and 12,771,434 shares, respectively, issued and outstanding     12,784       12,771  
Additional paid-in capital     74,154,189       73,872,679  
Accumulated deficit     (51,635,484 )     (51,803,722 )
*Total Shareholders’ Equity* * * * * *22,531,489* * * * * * * *22,081,728* * *
*Total Liabilities and Shareholders’ Equity* * * *$* *70,755,506* * * * * *$* *74,360,132* * *

*CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES*
*CONSOLIDATED STATEMENTS OF OPERATIONS*   *For the Three Months Ended*
*March 31,* * * * * *2024* * * * * *2023* * *
Revenue   $ 19,081,143     $ 22,016,668  
Cost of sales     15,527,394       17,354,152  
Gross profit     3,553,749       4,662,516                  
Selling, general and administrative expenses     2,713,904       2,869,058  
Income from operations     839,845       1,793,458                  
Interest expense     (632,135 )     (610,896 )
Income before provision for income taxes     207,710       1,182,562                  
Provision for income taxes     39,472       199,257  
Net income   $ 168,238     $ 983,305                  
Income per common share, basic   $ 0.01     $ 0.08  
Income per common share, diluted   $ 0.01     $ 0.08                  
Shares used in computing income per common share:                
Basic     12,486,889       12,520,299  
Diluted     12,680,584       12,608,189