First Quarter 2022 vs. First Quarter 2021
- Revenue of $20.1 million in comparison with $30.8 million;
- Gross revenue of $3.4 million in comparison with $4.9 million;
- Gross revenue margin of 17.1% in comparison with 16.0%;
- Net lack of $(32,931) in comparison with web revenue of $1.2 million (web revenue of $0.8 million excluding a $0.8 million severance accrual recorded throughout the first quarter of 2022);
- Loss per diluted share of $(0.00) in comparison with earnings per diluted share of $0.10 (earnings per diluted share of $0.06 excluding a $0.06 severance accrual recorded throughout the first quarter of 2022);
- Cash stream utilized in operations of $(2.4) million in comparison with a use of $(4.9) million;
- Debt as of March 31, 2022 of $25.3 million in comparison with $26.2 million as of December 31, 2021.
EDGEWOOD, N.Y., Sept. 06, 2022 (GLOBE NEWSWIRE) — CPI Aerostructures, Inc. (“CPI Aero®” or the “Company”) (OTC Expert Market: CVUA) right now introduced monetary outcomes for the three month interval ended March 31, 2022.
“Today we filed our first quarter 2022 results on Form 10-Q for the period ended March 31, 2022. While our first quarter 2022 revenue was lower than first quarter 2021, we have improved our gross profit margin by 110 bps. Net loss for the first quarter 2022 was $(0.03) million including $0.8 million severance accrual,” stated Dorith Hakim, President and CEO.
Added Ms. Hakim, “2022 is a transition year for CPI Aero as we completed a number of programs in 2021 and are preparing to ramp up on newer programs. As a result, we expect lower revenue in 2022 versus 2021 and therefore implemented actions in the first quarter of 2022 intended to align our costs with our outlook for revenue while sustaining profitability and positive operating cash flow for the year. We have improved our cash balance to $2.9 million as of March 31, 2022 versus $0.8 million on March 31, 2021 while reducing our debt by $0.9 million. In addition, total backlog as of March 31, 2022 increased to $504.3 million compared to $501.7 million as of December 31, 2021.”
Concluded Ms. Hakim, “We are focused on becoming current with our Securities and Exchange Commission reports which will occur upon the filing of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (the “Form 10-Q”). The Company believes the submitting of the Form 10-Q will resolve the situation that led to NYSE American suspending buying and selling within the Company’s frequent inventory on the Exchange and its willpower to begin proceedings to delist the frequent inventory from the Exchange. The Form 10-Q can be filed as quickly as practicable.”
About CPI Aero
CPI Aero is a U.S. producer of structural assemblies for mounted wing plane, helicopters and airborne Intelligence Surveillance and Reconnaissance and Electronic Warfare pod methods, primarily for nationwide safety markets. Within the worldwide aerostructure provide chain, CPI Aero is both a Tier 1 provider to plane OEMs or a Tier 2 subcontractor to main Tier 1 producers. CPI Aero can also be a first-rate contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its meeting operations, CPI Aero offers engineering, program administration, provide chain administration, and MRO providers.
Forward-looking Statements
This press launch incorporates forward-looking statements throughout the that means 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, apart from statements of historic reality, included or integrated on this press launch are forward-looking statements. The phrases “expect,” “intended,” “outlook,” “opportunities ahead,” “will,” “believes” and comparable expressions are supposed to establish forward-looking statements, though not all forward-looking statements comprise these figuring out phrases. These forward-looking statements embrace the Company’s anticipated monetary outcomes for the 12 months ending December 31, 2022 and backbone of the situation that led to NYSE American suspending buying and selling within the Company’s frequent inventory and its willpower to begin delisting proceedings.
Forward-looking statements contain dangers and uncertainties, and precise outcomes might fluctuate materially from these forward-looking statements. Factors which will trigger future outcomes to vary materially from the Company’s present expectations embrace, amongst different issues, the Company’s completion of its monetary statements for the interval ended June 30, 2022, any delay within the submitting of Securities and Exchange Commission periodic reviews, antagonistic results on the Company’s business associated to the disclosures made on this press launch or the reactions of consumers or suppliers, any antagonistic developments in current authorized proceedings or the initiation of latest authorized proceedings, and volatility of the Company’s inventory value.
The Company doesn’t assure that it’s going to really obtain the plans, intentions or expectations disclosed in its forward-looking statements and you shouldn’t place undue reliance on the Company’s forward-looking statements. There are numerous vital elements that would trigger the Company’s precise outcomes to vary materially from these indicated or implied by its forward-looking statements, together with these vital elements set forth underneath the caption “Risk Factors” within the Company’s Annual Report on Form 10-Ok for the interval ended December 31, 2021 and within the Company’s different filings with the Securities and Exchange Commission. Although the Company might elect to take action sooner or later sooner or later, the Company doesn’t assume any obligation to replace any forward-looking statements and it disclaims any intention or obligation to replace or revise any forward-looking assertion, whether or not because of new data, future occasions or in any other case.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For extra data, go to www.cpiaero.com, and observe us on Twitter @CPIAERO.us on Twitter @CPIAERO.
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CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2022 (Unaudited) |
2021 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 2,932,910 | $ | 6,308,866 | ||||
| Accounts receivable, web | 4,852,337 | 4,967,714 | ||||||
| Insurance restoration receivable | 3,474,424 | 2,850,000 | ||||||
| Contract property | 25,756,169 | 24,459,339 | ||||||
| Inventory | 3,697,130 | 4,028,925 | ||||||
| Refundable revenue taxes | 40,000 | 40,000 | ||||||
| Prepaid bills and different present property | 415,912 | 625,075 | ||||||
| Total present property | 41,168,882 | 43,279,919 | ||||||
| Operating lease right-of-use property | 7,360,800 | 7,796,768 | ||||||
| Property and gear, web | 1,531,555 | 1,646,863 | ||||||
| Intangibles, web | 93,750 | 125,000 | ||||||
| Goodwill | 1,784,254 | 1,784,254 | ||||||
| Other property | 306,575 | 372,741 | ||||||
| Total property | $ | 52,245,816 | $ | 55,005,545 | ||||
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 11,806,369 | $ | 10,429,018 | ||||
| Accrued bills | 4,836,689 | 6,102,587 | ||||||
| Litigation settlement obligation | 3,600,000 | 3,003,259 | ||||||
| Contract liabilities | 3,368,018 | 5,122,766 | ||||||
| Loss reserve | 1,086,792 | 1,495,714 | ||||||
| Current portion of long-term debt | 3,354,318 | 3,365,181 | ||||||
| Operating lease liabilities | 1,595,988 | 1,580,453 | ||||||
| Income tax payable | 5,165 | 5,165 | ||||||
| Total present liabilities | 29,653,339 | 31,104,143 | ||||||
| Line of credit score | 21,000,000 | 21,250,000 | ||||||
| Long-term working lease liabilities | 6,038,012 | 6,445,728 | ||||||
| Long-term debt, web of present portion | 896,587 | 1,540,747 | ||||||
| Total liabilities | 57,587,938 | 60,340,618 | ||||||
| Shareholders’ Deficit: | ||||||||
| Common inventory – $.001 par worth; licensed 50,000,000 shares, 12,383,210 and 12,335,683 shares, respectively, issued and excellent | 12,383 | 12,336 | ||||||
| Additional paid-in capital | 72,859,577 | 72,833,742 | ||||||
| Accumulated deficit | (78,214,082 | ) | (78,181,151 | ) | ||||
| Total Shareholders’ Deficit | (5,342,122 | ) | (5,335,073 | ) | ||||
| Total Liabilities and Shareholders’ Deficit | $ | 52,245,816 | $ | 55,005,545 | ||||
CPI AEROSTRUCTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenue | $ | 20,135,097 | $ | 30,818,746 | ||||
| Cost of gross sales | 16,700,488 | 25,898,658 | ||||||
| Gross revenue | 3,434,609 | 4,920,088 | ||||||
| Selling, normal and administrative bills | 3,137,657 | 3,390,806 | ||||||
| Income from operations | 296,952 | 1,529,282 | ||||||
| Interest expense | 328,608 | 294,489 | ||||||
| (Loss) revenue earlier than provision for revenue taxes | (31,656 | ) | 1,234,793 | |||||
| Provision for revenue taxes | 1,275 | 2,250 | ||||||
| Net (loss) revenue | $ | (32,931 | ) | $ | 1,232,543 | |||
| (Loss) revenue per frequent share – fundamental | $ | (0.00 | ) | $ | 0.10 | |||
| (Loss) revenue per frequent share – diluted | $ | (0.00 | ) | $ | 0.10 | |||
| Shares utilized in computing (loss) revenue per frequent share: | ||||||||
| Basic | 12,363,143 | 11,983,270 | ||||||
| Diluted | 12,363,143 | 12,084,901 | ||||||
