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]
CPI Aero(CVU) - 2024 Q3 - Quarterly Results