1st pod delivery for Northrop Grumman’s EMD Phase of Program with KAIEDGEWOOD, N.Y., April 07, 2025 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (NYSE American: CVU) announced today that they completed production and delivery of an Airborne Laser Mine Detection System (ALMDS) pod structure for Northrop Grumman. The pod supports a contract awarded to Northrop Grumman in February 2023 by Korea Aerospace Industries, Ltd. (KAI), aiming to deliver ALMDS solutions and technical assi ...

EDGEWOOD, N.Y., April 07, 2025 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ("CPI Aero®" or the "Company") (NYSE:CVU) announced today that they completed production and delivery of an Airborne Laser Mine Detection System (ALMDS) pod structure for Northrop Grumman. The pod supports a contract awarded to Northrop Grumman in February 2023 by Korea Aerospace Industries, Ltd. (KAI), aiming to deliver ALMDS solutions and technical assistance for the Engineering, Manufacturing, and Design (EMD) phase of the Republ ...

Revenue Performance - Revenue for Q4 2024 was $21.8 million, down from $23.5 million in Q4 2023, while full year revenue decreased to $81.1 million from $86.5 million[7]. Profitability Metrics - Gross profit margin improved by 150 basis points to 20.0% in Q4 2024, and for the full year, gross margin increased to 21.3% from 19.7%[4][7]. - Net income for Q4 2024 was $1.0 million, significantly lower than $14.8 million in Q4 2023, with full year net income at $3.3 million compared to $17.2 million[4][7]. - Earnings per share (EPS) for Q4 2024 was $0.08, down from $1.20 in Q4 2023, and for the full year, EPS decreased to $0.26 from $1.40[7]. - Adjusted EBITDA for Q4 2024 was $2.3 million, up from $1.8 million in Q4 2023, while full year adjusted EBITDA increased to $7.8 million from $7.5 million[7]. Cash Flow and Debt Management - Cash flow from operations for 2024 was $3.6 million, compared to $3.9 million in 2023, with total cash from operations for the year at $4.4 million[5][7]. - The company reduced its debt by $2.7 million in 2024, achieving a debt balance of $17.4 million, the lowest since 2011[5]. - The Debt-to-Adjusted EBITDA Ratio at year-end was 2.2, marking the eighth consecutive quarter-end below 3.0[5]. Future Outlook - The backlog at year-end 2024 was $510 million, including new program awards from L3Harris, Raytheon, and Embraer[6]. - The company remains confident in its long-term outlook and plans to capitalize on future opportunities while strengthening customer relationships[8].

Government Contracts and Funding Risks - Company relies heavily on U.S. Government contracts, with significant revenue contributions from major defense contractors: Raytheon (36%), Lockheed Martin (24%), and United States Air Force (14%) for 2024[101] - Company faces risks related to government funding, which is subject to congressional budget authorization and may lead to contract terminations or adjustments if appropriations are delayed or reduced[95] - The competitive bidding process poses risks, including unforeseen technological difficulties and cost overruns, which may adversely affect profitability[98] - Loss of small business status could limit eligibility for government contracts and special programs, adversely affecting competitive positioning[116] - The company’s contracts with the U.S. government are subject to the Federal Acquisition Regulation (FAR), which dictates allowable costs for pricing[275] Financial Performance and Position - Revenue for the year ended December 31, 2024 was $81,078,864, a decrease of $5,387,457 or 6.2% compared to $86,466,321 for 2023[160] - Revenue from prime government contracts was $11,677,152, a slight decrease of $164,993 or 1.4% compared to $11,842,145 for 2023[161] - Revenue from government subcontracts decreased by $4,968,232 or 7.1% to $64,704,370 for the year ended December 31, 2024[162] - Cost of sales for the year ended December 31, 2024 was $63,840,803, a decrease of $5,559,890 or 8.0% compared to $69,400,693 for 2023[164] - Gross profit for the year ended December 31, 2024 was $17,238,061, an increase of $172,433 or 1.0% compared to $17,065,628 for 2023[168] - Gross profit margin increased to 21.3% for the year ended December 31, 2024, compared to 19.7% for 2023[168] - Net income for the year ended December 31, 2024 was $3,299,334, a decrease of $13,901,870 or 80.8% compared to $17,201,204 in 2023[174] - Basic earnings per share decreased to $0.26 for the year ended December 31, 2024, down $1.14 or 81.4% from $1.40 in 2023[175] - Working capital increased to $17,122,111 at December 31, 2024, an increase of $1,719,730 or 11.2% from $15,402,381 in 2023[177] - Cash balance increased to $5,490,963 at December 31, 2024, an increase of $396,169 or 7.8% from $5,094,794 in 2023[182] - Total assets decreased to $67,982,002 in 2024 from $74,360,132 in 2023, reflecting a decline of 8.5%[241] - Total liabilities decreased to $42,048,760 in 2024 from $52,278,404 in 2023, a reduction of 19.5%[241] - Shareholders' equity increased to $25,933,242 in 2024 from $22,081,728 in 2023, an increase of 17.5%[241] Internal Controls and Compliance - The company has identified material weaknesses in internal control over financial reporting, leading to multiple restatements of its consolidated financial statements[128] - A settlement with the SEC requires the company to remediate its internal control weaknesses by December 31, 2024, with a potential civil monetary penalty of $400,000 if it fails to comply[129] - Management confirmed that as of December 31, 2024, the company has fully remediated its material weaknesses in internal control over financial reporting[204] - The financial statements present the Company's financial position as of December 31, 2024, in conformity with generally accepted accounting principles[224] - The audit opinion confirms that the financial statements are free of material misstatement, whether due to error or fraud[224] Risks and Liabilities - Company is subject to strict environmental regulations, with potential fines and remediation expenses for non-compliance, impacting financial condition[102] - The company faces potential liability for product failures, and any material product liability not covered by insurance could adversely affect its financial condition[121] - Increased scrutiny regarding environmental, social, and governance (ESG) responsibilities could expose the company to additional costs and impact its liquidity and stock price[122] - The company has exposure to interest rate risk as its borrowing costs are based on the Prime Rate, which can negatively impact profitability[127] Revenue Recognition and Accounting - The Company recognized approximately $80.1 million in revenue over time for the year ended December 31, 2024, from long-term contracts[229] - The revenue recognition method used is based on an input method that reflects the ratio of costs incurred to total estimated costs at completion[229] - The company’s revenue recognition follows ASC 606, recognizing revenue when control of goods or services is transferred to customers[257] - The company utilizes the cost-to-cost input method to measure progress on performance obligations, which reflects the transfer of control to the customer[265] - Income taxes are accounted for under the asset and liability method, recognizing deferred tax assets and liabilities for future tax consequences[293] Operational and Financial Management - The company’s working capital requirements can vary significantly, potentially affecting liquidity and capital resources if cash flows from operations are insufficient[113] - The company has undergone multiple amendments to its Amended and Restated Credit Agreement since March 2016, indicating ongoing financial management[218] - The company maintains an allowance for credit losses on accounts receivable and contract assets, assessed quarterly based on factors such as the age of receivables[278] - The company has right-of-use assets of $2,856,200 and lease liabilities of $3,100,572 as of December 31, 2024, down from $4,740,193 and $5,099,629 in 2023, respectively[284] Miscellaneous - The company has not paid any dividends to date and intends to retain earnings for business operations[145] - As of December 31, 2024, the company has 310,458 securities available for future issuance under equity compensation plans[147] - The effective tax rate for 2024 was 25.7%, compared to an effective tax benefit rate of (346.6%) in 2023[173] - The company reported a decrease in contract liabilities from $5,937,629 in 2023 to $2,430,663 in 2024, a decline of 59.0%[241] - Operating cash flow for 2024 was $3,558,935, compared to $3,928,341 in 2023, a decrease of 9.4%[249] - The company performed its annual impairment assessment of goodwill as of December 31, 2024, concluding that goodwill was not impaired[286] - The company’s long-lived assets were determined not to be impaired as of December 31, 2024, based on expected cash flows[287] - Basic and diluted income per common share for the years ended December 31, 2024 and 2023 were calculated using 116,024 and 160,742 incremental shares, respectively[291] - The company complies with FASB ASC Topic 260 for earnings per share calculations, using the treasury stock method[290]

Fourth Quarter 2024 vs. Fourth Quarter 2023 Full Year 2024 vs. Full Year 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 ye ...

Core Insights - CPI Aerostructures, Inc. has received funded orders totaling $7 million for the overhaul and repair of outboard stabilator assemblies for the Sikorsky MH-60 SEAHAWK helicopter, under a five-year IDIQ contract from Sikorsky [1] - The company emphasizes its core capability in repair and overhaul services, which is foundational for growth in its Repair & Overhaul business, having delivered over 1,000 stabilators for the Seahawk Helicopter fleet [2] Company Overview - CPI Aero is a U.S. manufacturer specializing in structural assemblies for fixed-wing aircraft, helicopters, and airborne Intelligence Surveillance and Reconnaissance systems, serving both commercial aerospace and national security markets [3] - Within the global aerostructure supply chain, CPI Aero operates as either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers, and is a prime contractor to the U.S. Department of Defense, primarily the Air Force [3]

Core Viewpoint - CPI Aerostructures, Inc. has secured contracts worth $4.3 million for gunner window assemblies for the UH-60M Black Hawk helicopter, as part of a five-year indefinite delivery indefinite quantity (IDIQ) contract [1] Group 1: Company Overview - CPI Aero has delivered over 6,000 gunner window assemblies to Sikorsky since 2010, showcasing its commitment to quality and customer satisfaction [2] - The company is a U.S. manufacturer specializing in structural assemblies for fixed wing aircraft, helicopters, and airborne Intelligence Surveillance and Reconnaissance pod systems, serving both commercial aerospace and national security markets [3] - CPI Aero operates as a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers, and is a prime contractor to the U.S. Department of Defense, primarily the Air Force [3] Group 2: Contract Details - The recent contracts for gunner window assemblies are part of a previously announced five-year IDIQ contract, indicating a long-term relationship with the U.S. military [1] - The contracts total $4.3 million, reflecting the ongoing demand for components related to the Black Hawk helicopter fleet [1]

Core Points - CPI Aerostructures, Inc. has been authorized by Raytheon Technologies to manufacture pod structures and air management system components for the Next Generation Jammer Mid-Band (NGJ-MB) program, with a contract value of up to $33.4 million [1][2] - The NGJ-MB program is designed to enhance airborne electronic attack capabilities, providing force-level spectrum superiority in modern military environments [2] - CPI Aero is committed to delivering the NGJ-MB pods on or ahead of schedule, emphasizing the critical need for this capability as communicated by Raytheon [3] Company Overview - CPI Aero is a U.S. manufacturer specializing in structural assemblies for fixed-wing aircraft, helicopters, and airborne Intelligence Surveillance and Reconnaissance pod systems, serving both commercial aerospace and national security markets [4] - The company operates as a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers, and is a prime contractor to the U.S. Department of Defense, primarily the Air Force [4]

Core Viewpoint - CPI Aerostructures, Inc. has appointed Carey Bond as the new Chairman of its Board of Directors, succeeding Terry Stinson, who has served for six years [1][2][3] Company Leadership - Carey Bond, previously Vice-Chairman, has extensive experience in the aerospace industry, having held leadership roles at various companies including Sikorsky Aircraft and Bell Helicopter Textron [3] - Terry Stinson will remain on the Board as Vice-Chairman, continuing to provide strategic insights [2] Company Overview - CPI Aerostructures is a U.S. manufacturer specializing in structural assemblies for fixed-wing aircraft, helicopters, and airborne Intelligence Surveillance and Reconnaissance systems [4] - The company operates as a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers and is a prime contractor to the U.S. Department of Defense, primarily the Air Force [4]

Revenue Performance - Revenue for Q3 2024 was $19.4 million, a decrease of 4.9% compared to $20.4 million in Q3 2023[1] - For the nine months ended September 30, 2024, revenue was $59.3 million, down 5.9% from $63.0 million in the same period of 2023[2] Profitability Metrics - Gross profit increased to $4.2 million, up 13.5% from $3.7 million in Q3 2023, resulting in a gross margin of 21.7%, up from 18.2%[1][4] - Gross profit for the nine months was $12.9 million, slightly down from $13.0 million, with a gross margin increase to 21.7% from 20.6%[2] - Net income for Q3 2024 was $0.7 million, a 133.3% increase compared to $0.3 million in Q3 2023[1][4] - Net income for the nine months was $2.3 million, a decrease of 4.2% compared to $2.4 million in the same period of 2023[2] EBITDA Analysis - Adjusted EBITDA for Q3 2024 was $1.7 million, representing a 15.6% increase from $1.4 million in Q3 2023[1][4] - Adjusted EBITDA for September 2024 is $1,653,193, compared to $1,429,625 for September 2023, reflecting an increase of approximately 15.7%[17] - Total Adjusted EBITDA for the year-to-date period is $5,491,998, down from $5,772,832 in the previous year, indicating a decrease of approximately 4.9%[17] Operational Cash Flow - Cash flow from operating activities for Q3 2024 was $0.7 million, compared to $0.0 million in Q3 2023[1] Debt Management - The company reduced its debt by $2.7 million over the last twelve months, with total debt as of September 30, 2024, at $18.2 million[2][5] Backlog and Awards - The backlog as of September 30, 2024, was $506 million, bolstered by a new award from L3Harris for the Next Generation Jammer Low Band Pod[6] Expense Management - Depreciation expenses decreased from $117,885 in September 2023 to $102,847 in September 2024, a reduction of approximately 12.8%[17] - Stock-based compensation decreased from $140,715 in September 2023 to $72,713 in September 2024, a decline of about 48.3%[17] Financial Reporting Considerations - The company expects to continue incurring expenses similar to those reflected in the Adjusted EBITDA adjustments, indicating ongoing operational costs[16] - The company emphasizes that Adjusted EBITDA should not be considered in isolation from GAAP financial measures, highlighting the importance of comprehensive financial analysis[16] - The reconciliation of income from operations to Adjusted EBITDA illustrates the impact of depreciation and stock-based compensation on overall financial performance[17] - The company’s financial adjustments may not be computed in the same manner as those of other companies, suggesting variability in financial reporting standards[16] - Investors are advised not to infer that the costs associated with Adjusted EBITDA are unusual or non-recurring, indicating a need for careful financial assessment[16]