Fourth Quarter 2024 vs. Fourth Quarter 2023
- Revenue of $21.8 million compared to $23.5 million;
- Gross profit of $4.3 million compared to $4.1 million;
- Gross margin of 20.0% compared to 17.4%;
- Net income of $1.0 million ($1.4 million excluding deferred tax asset valuation impact) compared to net income of $14.8 million ($0.6 million excluding deferred tax asset valuation impact);
- Earnings per share of $0.08 ($0.11 excluding deferred tax asset valuation impact) compared to earnings per share of $1.20 ($0.05 excluding deferred tax asset valuation impact);
- Adjusted EBITDA(1) of $2.3 million compared to $1.8 million;
- Cash flow from operations of $4.4 million compared to $3.1 million.
Full Year 2024 vs. Full Year 2023
- Revenue of $81.1 million compared to $86.5 million;
- Gross profit of $17.2 million compared to $17.1 million;
- Gross margin of 21.3% compared to 19.7%;
- Net income of $3.3 million ($3.7 million excluding deferred tax asset valuation impact) compared to $17.2 million ($3.0 million excluding deferred tax asset valuation impact);
- Earnings per share of $0.26 ($0.29 excluding deferred tax asset valuation impact) compared to $1.40 ($0.25 excluding deferred tax asset valuation impact);
- Adjusted EBITDA(1) of $7.8 million compared to $7.5 million;
- Cash flow from operations of $3.6 million compared to $3.9 million;
- Debt as of December 31, 2024 of $17.4 million compared to $20.1 million as of December 31, 2023.
EDGEWOOD, N.Y., March 31, 2025 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ("CPI Aero" or the "Company") (NYSE American: CVU) today announced financial results for the twelve month period ended December 31, 2024.
"Although our 2024 revenue was lower than our 2023 revenue, we increased our gross profit margin by 150 basis points. Our net income, excluding the tax asset valuation impact, was up 22.2% with EPS up 19.5% from prior year due to operational efficiencies, lower SG&A and interest costs.
"We generated $3.6 million in cash from operations in 2024 and reduced our debt by another $2.7 million reaching an all-time low debt balance since 2011. Our Debt-to-Adjusted EBITDA Ratio at year-end was 2.2, which marks our eighth consecutive quarter-end below 3.0," said Dorith Hakim, President and CEO.
Added Ms. Hakim, "We ended the year with a strong backlog of $510 million, which includes multiple new program awards from L3Harris, Raytheon and Embraer. We remain confident in CPI Aero's long-term outlook and look forward to capitalizing on the multiple opportunities ahead as we continue to build on our long-standing relationships with our customers."
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. Words such as "remain confident," "outlook," "opportunities ahead," "continue," and similar expressions are intended to identify these forward-looking statements. These forward-looking statements include the Company's confidence in its long-term outlook, expectations for future opportunities, and plans to continue strengthening customer relationships. 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, 2024 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 Alliance Advisors IR Jody Burfening (212) 838-3777 cpiaero@allianceadvisors.com | CPI Aerostructures, Inc. Philip Passarello Chief Financial Officer (631) 586-5200 ppassarello@cpiaero.com www.cpiaero.com | |
| CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 5,490,963 | $ | 5,094,794 | ||||
| Accounts receivable, net | 3,716,378 | 4,352,196 | ||||||
| Contract assets, net | 32,832,290 | 35,312,068 | ||||||
| Inventory, net | 918,288 | 1,436,647 | ||||||
| Prepaid expenses and other current assets | 634,534 | 718,026 | ||||||
| Total Current Assets | 43,592,453 | 46,913,731 | ||||||
| Operating lease right-of-use assets | 2,856,200 | 4,740,193 | ||||||
| Property and equipment, net | 767,904 | 794,056 | ||||||
| Deferred tax asset | 18,837,576 | 19,938,124 | ||||||
| Goodwill | 1,784,254 | 1,784,254 | ||||||
| Other assets | 143,615 | 189,774 | ||||||
| Total Assets | $ | 67,982,002 | $ | 74,360,132 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 11,097,685 | $ | 10,487,012 | ||||
| Accrued expenses | 7,922,316 | 10,275,695 | ||||||
| Contract liabilities | 2,430,663 | 5,937,629 | ||||||
| Loss reserve | 22,832 | 337,351 | ||||||
| Current portion of line of credit | 2,750,000 | 2,400,000 | ||||||
| Current portion of long-term debt | 26,483 | 44,498 | ||||||
| Operating lease liabilities | 2,162,154 | 1,999,058 | ||||||
| Income taxes payable | 58,209 | 30,107 | ||||||
| Total Current Liabilities | 26,470,342 | 31,511,350 | ||||||
| Line of credit, net of current portion | 14,640,000 | 17,640,000 | ||||||
| Long-term operating lease liabilities | 938,418 | 3,100,571 | ||||||
| Long-term debt, net of current portion | - | 26,483 | ||||||
| Total Liabilities | 42,048,760 | 52,278,404 | ||||||
| Commitments and Contingencies (see note 16) | ||||||||
| Shareholders' Equity: | ||||||||
| Common stock - $.001 par value; authorized 50,000,000 shares, 12,978,741 and 12,771,434 shares, respectively, issued and outstanding | 12,979 | 12,771 | ||||||
| Additional paid-in capital | 74,424,651 | 73,872,679 | ||||||
| Accumulated deficit | (48,504,388 | ) | (51,803,722 | ) | ||||
| Total Shareholders' Equity | 25,933,242 | 22,081,728 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 67,982,002 | $ | 74,360,132 | ||||
| CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Years ended December 31, 2024 and 2023 | ||||||||
| 2024 | 2023 | |||||||
| Revenue | $ | 81,078,864 | $ | 86,466,321 | ||||
| Cost of sales | 63,840,803 | 69,400,693 | ||||||
| Gross profit | 17,238,061 | 17,065,628 | ||||||
| Selling, general and administrative expenses | 10,506,439 | 10,758,624 | ||||||
| Income from operations | 6,731,622 | 6,307,004 | ||||||
| Interest expense | (2,288,834 | ) | (2,455,214 | ) | ||||
| Income before benefit for income taxes | 4,442,788 | 3,851,790 | ||||||
| Provision (Benefit) from income taxes | 1,143,454 | (13,349,414 | ) | |||||
| Net income | $ | 3,299,334 | $ | 17,201,204 | ||||
| Income per common share-basic | $ | 0.26 | $ | 1.40 | ||||
| Income per common share-diluted | $ | 0.26 | $ | 1.38 | ||||
| Shares used in computing income per common share: | ||||||||
| Basic | 12,593,213 | 12,311,219 | ||||||
| Diluted | 12,709,237 | 12,471,961 | ||||||
Unaudited Reconciliation of GAAP to Non-GAAP Measures
Note: (1) Adjusted EBITDA is a non-GAAP measure defined as GAAP income from operations plus depreciation, amortization and stock-compensation expense.
Adjusted EBITDA as calculated by us may be calculated differently than Adjusted EBITDA for other companies. We have provided Adjusted EBITDA because we believe it is a commonly used measure of financial performance in comparable companies and is provided to help investors evaluate companies on a consistent basis, as well as to enhance understanding of our operating results. Adjusted EBITDA should not be construed as either an alternative to income from operations or net income or as an indicator of our operating performance or an alternative to cash flows as a measure of liquidity. The adjustments to calculate this non-GAAP financial measure and the basis for such adjustments are outlined below. Please refer to the following table below that reconciles GAAP income from operations to Adjusted EBITDA.
The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:
Depreciation. The Company incurs depreciation expense (recorded in cost of sales and in selling, general and administrative expenses) related to capital assets purchased, leased or constructed to support the ongoing operations of the business. The assets are recorded at cost or fair value and are depreciated over the estimated useful lives of individual assets.
Stock-based compensation expense. The Company incurs non-cash expense related to stock-based compensation included in its GAAP presentation of cost of sales and selling, general and administrative expenses. Management believes that exclusion of these expenses allows comparison of operating results to those of other companies that disclose non-GAAP financial measures that exclude stock-based compensation.
Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the Adjusted EBITDA financial adjustments described above, and investors should not infer from the Company's presentation of this non-GAAP financial measure that these costs are unusual, infrequent, or non-recurring.
Reconciliation of income from operations to Adjusted EBITDA is as follows:
| Three months ended | Twelve months ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Income From Operations | 2,074,655 | 1,545,001 | 6,731,622 | 6,307,004 | |||||||||||
| Depreciation | 124,746 | 119,976 | 430,006 | 470,950 | |||||||||||
| Stock-based compensation | 74,911 | 110,771 | 604,682 | 770,626 | |||||||||||
| Adjusted EBITDA | 2,274,312 | 1,775,748 | 7,766,310 | 7,548,580 | |||||||||||
