Revenue Performance - Total revenue for the three months ended September 30, 2024, was $19,419,879, a decrease of 4.8% from $20,399,369 in the same period of 2023[7] - Revenue for the three months ended September 30, 2024, was $19,419,879, a decrease of 4.8% compared to $20,399,369 for the same period in 2023[17] - Revenue recognized using the over time revenue recognition model for the nine months ended September 30, 2024, was $58,558,552, down from $59,353,845 in 2023, reflecting a decline of 1.3%[18] - Total revenue for the nine months ended September 30, 2024 was $59,311,356, down 5.8% from $62,963,592 in the same period last year, driven by decreases in Sikorsky and Lockheed Martin programs[72] Profitability - Gross profit for the three months ended September 30, 2024, increased to $4,219,669, up 13.8% from $3,706,090 in the prior year[7] - The company reported a gross profit margin of 21.7% for the three months ended September 30, 2024, compared to 18.2% in the same period of 2023[7] - Net income for the three months ended September 30, 2024, was $749,677, compared to $301,364 for the same period in 2023, representing a significant increase of 148.5%[7] - Net income for the nine months ended September 30, 2024, was $2,327,861, a decrease of $113,884 or 4.7% compared to the same period in 2023[101] Expenses - Selling, general and administrative expenses increased to $2,742,036 for the three months ended September 30, 2024, compared to $2,535,065 in the prior year[7] - Stock-based compensation expenses of $529,771 for the three months ended September 30, 2024, down from $659,855 in the same period of 2023, representing a decrease of approximately 19.7%[9] - Interest expense for Q3 2024 decreased to $573,366, down $90,491 or 13.6% from Q3 2023 due to lower interest rates and reduced outstanding debt[91] Assets and Liabilities - Total current assets decreased to $43,372,955 as of September 30, 2024, down from $46,913,731 at December 31, 2023[6] - The company’s total assets decreased to $68,887,763 as of September 30, 2024, from $74,360,132 at December 31, 2023[6] - Total liabilities decreased to $43,948,403 as of September 30, 2024, down from $52,278,404 at December 31, 2023[6] - The company’s accumulated deficit improved to $(49,475,861) as of September 30, 2024, compared to $(51,803,722) at December 31, 2023[6] Cash Flow - Cash flows from operating activities resulted in a net cash used of $837,077 for the three months ended September 30, 2024, contrasting with a net cash provided of $840,128 in the same period of 2023[9] - The balance of cash at the end of the period was $1,708,987, down from $2,609,693 at the end of September 30, 2023, reflecting a decrease of approximately 34.5%[9] - Cash decreased to $1,708,987 as of September 30, 2024, down $3,385,807 or 66.5% from December 31, 2023[108] Shareholder Equity - As of September 30, 2024, the total shareholders' equity increased to $24,939,360, up from $22,531,489 at March 31, 2024, reflecting a growth of approximately 10.7%[8] - The total common stock shares increased to 12,933,408 as of September 30, 2024, from 12,784,768 at March 31, 2024, marking an increase of approximately 1.2%[8] Taxation - The effective income tax rate for the nine months ended September 30, 2024 was 18.7%, compared to 17.1% for the same period in 2023[56] - Provision for income taxes for Q3 2024 was $154,590, a decrease of $51,214 or 24.9% compared to Q3 2023[94] - The effective income tax rate for Q3 2024 was 17.1%, lower than the statutory rate of 21% due to estimated R&D credits and other factors[95] Operational Insights - Total backlog as of September 30, 2024 was $506,021,000, with funded backlog at $91,502,000 and unfunded backlog at $414,519,000[66] - Approximately 96% of the total backlog at September 30, 2024 was attributable to government and military contracts[66] - Revenue from military subcontracts increased by 10.5% to $16,986,106 in Q3 2024 compared to $15,375,337 in Q3 2023, mainly due to Raytheon NGJ – Mid Band Pods[73] - Revenue from government military contracts decreased by 57.6% to $1,673,483 in Q3 2024, primarily due to delays in the USAF T-38 program[75] Compliance and Control - A material weakness was identified in internal control over financial reporting related to income tax accounting as of December 31, 2023[121] - The company plans to implement new controls to remediate the identified material weakness during 2024[122] - The company replaced its outside tax accounting firm and retained a new firm to prepare and review income tax accounting and disclosures for the quarter ended September 30, 2024[123] - Tax accounting has been updated as a high-risk area in the company's financial risk assessment[124]

Revenue Performance - Revenue for Q2 2024 was $20.8 million, a slight increase from $20.5 million in Q2 2023[1] - For the first six months of 2024, revenue decreased to $39.9 million from $42.6 million in the same period of 2023[2] Profitability Metrics - Gross profit for Q2 2024 was $5.1 million, up from $4.6 million in Q2 2023, resulting in a gross margin of 24.6%, compared to 22.4%[1] - Gross profit for the first six months of 2024 was $8.7 million, down from $9.3 million in the same period of 2023, with a gross margin of 21.7%[2] - Net income for Q2 2024 increased by 21.9% to $1.4 million, compared to $1.2 million in Q2 2023[1] - Earnings per diluted share for Q2 2024 was $0.11, compared to $0.09 in Q2 2023[1] EBITDA Analysis - Adjusted EBITDA for Q2 2024 was $2.6 million, a 25.0% increase from $2.1 million in Q2 2023[1] - Adjusted EBITDA for the six months ended June 30, 2024, was $3,838,805, compared to $4,343,207 for the same period in 2023, indicating a decrease of about 11.6%[13] - Adjusted EBITDA for the three months ended June 30, 2024, was $2,617,870, an increase from $2,094,281 for the same period in 2023, representing a growth of approximately 25%[13] Operational Efficiency - Cash flow used in operations for the first six months of 2024 was $(1.6) million, compared to $0.9 million generated in the same period of 2023[2] - Income from operations for the three months ended June 30, 2024, was $2,339,489, an increase from $1,797,520 for the same period in 2023, representing a growth of approximately 30.2%[13] - Depreciation expense for the three months ended June 30, 2024, was $102,846, down from $116,545 in the same period last year, reflecting a reduction of approximately 11.7%[13] - Stock-based compensation for the six months ended June 30, 2024, totaled $457,058, compared to $519,139 for the same period in 2023, showing a decrease of about 12%[13] Debt and Financial Position - The company reduced its debt by $2.4 million over the last twelve months, with a Debt-to-Adjusted EBITDA Ratio of 2.7 as of June 30, 2024[3] - The backlog as of June 30, 2024, was $512 million, indicating a strong competitive position[4]

Financial Performance - Total revenue for the three months ended June 30, 2024, was $20,810,334, a 1.3% increase from $20,547,555 for the same period in 2023[5] - Gross profit for the three months ended June 30, 2024, was $5,115,424, compared to $4,604,000 for the same period in 2023, representing an increase of 11.1%[5] - Net income for the three months ended June 30, 2024, was $1,409,946, up from $1,157,076 in the same period of 2023, reflecting a growth of 21.8%[5] - Basic income per common share for the three months ended June 30, 2024, was $0.11, compared to $0.09 for the same period in 2023, a rise of 22.2%[5] - Net income for the six months ended June 30, 2024, was $1,578,184, a decrease from $2,140,381 in the same period of 2023[8] - Total revenue for the six months ended June 30, 2024, was $39,891,477, compared to $42,564,223 for the same period in 2023, representing a decline of approximately 6.3%[14] - Revenue from military subcontracts for the three months ended June 30, 2024 was $16,963,874, an increase of $461,848 or 2.8% compared to the same period last year[60] - Revenue from government military contracts for the six months ended June 30, 2024 was $5,383,228, an increase of $1,264,269 or 30.7% compared to the same period last year[62] Assets and Liabilities - Total current assets decreased to $44,084,991 in 2023 from $46,913,731 in 2022, a decline of 6.0%[4] - Total liabilities decreased to $46,100,550 in 2023 from $52,278,404 in 2022, a reduction of 12.5%[4] - Total shareholders' equity increased to $24,116,970 in 2023 from $22,081,728 in 2022, an increase of 9.2%[4] - The company’s cash position decreased to $1,936,697 in 2023 from $5,094,794 in 2022, a decline of 62.0%[4] - The company reported a decrease in accounts payable to $14,528,893 in 2023 from $10,487,012 in 2022, an increase of 38.9%[4] - Contract assets as of June 30, 2024, were $34,183,988, down from $35,312,068 as of December 31, 2023[21] - Contract liabilities decreased to $2,482,535 as of June 30, 2024, from $5,937,629 as of December 31, 2023[21] - Cash at the end of the period was $1,936,697, down from $3,080,672 at the end of the same period in 2023[8] Expenses - Total Cost of Sales for the three months ended June 30, 2024 was $15,694,910, a decrease of $248,645 or 1.6% from $15,943,555 in the same period in 2023[64] - Selling, general and administrative expenses for the three months ended June 30, 2024 decreased by $30,545 or 1.1% to $2,775,935 compared to $2,806,480 for the same period in 2023[70] - Other cost of sales for the three months ended June 30, 2024 decreased by $333,410 or 98.4% to $5,533 compared to $338,943 for the same period in 2023[66] - Interest expense for the three months ended June 30, 2024 increased by $46,316 or 8.6% to $587,971 compared to $541,655 for the same period in 2023[71] - The company’s operating lease expense for the six months ended June 30, 2024, was $1,059,249, compared to $1,084,968 for the same period in 2023, indicating a decrease of approximately 2.4%[39] Backlog and Future Revenue - The Company's total backlog as of June 30, 2024 was $511,752,000, slightly down from $513,351,000 as of December 31, 2023[48] - Funded backlog as of June 30, 2024 was $87,049,000, down from $118,218,000 as of December 31, 2023[48] - The company expects to recognize approximately $4.1 million in revenue from contract liabilities that were included in the balance as of January 1, 2024[21] Tax and Compliance - The Company's effective income tax rate for the six months ended June 30, 2024 was 19.4%, compared to 12.2% for the same period in 2023[44] - The provision for income tax for the three months ended June 30, 2024 was $341,572, an increase from $98,789 for the same period in 2023[43] Internal Controls and Risk Management - A material weakness in internal control over financial reporting was identified, specifically related to income tax accounting, which the company is working to remediate in 2024[91] - The company replaced its outside tax accounting firm to improve internal controls and has updated its financial risk assessment to reflect tax accounting as a high-risk area[93] - The company is developing new controls to address the identified material weakness in internal control over financial reporting[92] - There have been no material changes in risk factors that could adversely affect the company's business or financial condition[95] Debt and Financing - As of June 30, 2024, the company had $18,840,000 outstanding under the Revolving Loan, down from $20,040,000 on December 31, 2023, a decrease of approximately 6.0%[35] - The company’s interest rate on the Revolving Loan was 12.00% as of June 30, 2024, based on a Prime Rate of 8.50%[35] - The company has no availability for borrowings under the Revolving Loan and finances operations from internally generated cash flow[84] - The company is required to maintain a minimum debt service coverage ratio of no less than 1.5 to 1.0 and a maximum leverage ratio of no more than 4.0 to 1.0 for the trailing four fiscal quarters[83] Stock and Compensation - The company had 2,364 shares available for grant under the 2009 Performance Equity Plan as of June 30, 2024[23] - The 2016 Long Term Incentive Plan has 331,912 shares available for grant as of June 30, 2024, after increasing the reserved shares to 2,200,000[24] - Total stock-based compensation expense for the three months ended June 30, 2024, was $175,536, compared to $180,216 for the same period in 2023, reflecting a decrease of approximately 3.8%[25] - At June 30, 2024, unamortized stock-based compensation costs related to restricted share arrangements amounted to $482,781[30] Cash Flow - Cash flows from operating activities resulted in a net cash used of $(1,552,224) for the six months ended June 30, 2024, compared to a net cash provided of $875,137 in the same period of 2023[8] - Cash decreased by $3,158,097 or 62% to $1,936,697 at June 30, 2024, primarily due to cash flow used in operating activities and repayment of debt[80] Inflation and Economic Conditions - Inflation has not historically affected operations materially, but the company actively monitors its impact on interest rates and supply chain[88] - The company believes its existing resources will be sufficient to meet current working capital needs for at least the next 12 months[85]

"Last year, CPI successfully delivered 20 NGJ-MB pod structures and associated AMS components, demonstrating our ability to ramp up and meet the Low Rate Initial Production. Today's announcement is evidence of our continued commitment to RTX Corporation and the U.S. Navy for this critical program, as we continue to support our customer and the warfighter needs by delivering on or ahead of schedule," stated Dorith Hakim, president and CEO of CPI Aero. This press release contains forward-looking statements wi ...

EDGEWOOD, N.Y., June 20, 2024 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (NYSE:CVU) ("CPI Aero" or "Company"), today announced a settlement with the Securities and Exchange Commission (the "SEC" or "Commission") related to the Company's previously announced restatements of certain of its financial statements for fiscal periods between January 1, 2018 and December 31, 2022. The Company has undertaken to fully remediate its material weakness in internal control over financial reporting ("ICFR") and have eff ...

Forward-looking Statements "We are proud to be part of the successful Phenom 300 program. Earlier this year we delivered our 800th shipset of Phenom 300 Engine Inlets to Embraer. These follow-on orders are a testimony of CPI Aero team's performance that continues to deliver high quality inlets to this long standing customer, demonstrating our strength in structural assembly & integration in the aerospace industry," stated Dorith Hakim, CPI Aero's CEO & President. Forward-looking statements involve risks and ...

EDGEWOOD, N.Y., June 05, 2024 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ("CPI Aero®" or the "Company") (NYSE:CVU) announced that it has received follow-on orders for complex welded structural assemblies used on a U.S. military helicopter from a current customer valued at approximately $1.3 million. Deliveries are expected to occur through mid-2025. "CPI Aero has a long history providing critical components and assemblies in support of fixed and rotary wing aircraft for the U.S. Defense and Allied Forces. ...

CPI AEROSTRUCTURES REPORTS FIRST QUARTER 2024 RESULTS CPI AEROSTRUCTURES, INC. 8-K First Quarter 2024 vs. First Quarter 2023 Exhibit 99.1 EDGEWOOD, N.Y. – May 15, 2024 – 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") Mi ...

First Quarter 2024 vs. First Quarter 2023 EDGEWOOD, N.Y., May 15, 2024 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ("CPI Aero" or the "Company") (NYSE: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 t ...

The condensed consolidated interim financial statements of the Company as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and notes normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to those rules and regulations ...