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CVU
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CPI Aerostructures Reports Fourth Quarter and Full Year 2024 Results

1. Revenue declined to $81.1 million in 2024. 2. Gross profit margin improved to 21.3%, up from 19.7%. 3. Net income dropped significantly to $3.3 million from $17.2 million. 4. Strong backlog of $510 million with new program awards reported. 5. Debt reduced to $17.4 million, the lowest since 2011.

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Why Neutral?

The decline in revenue and net income may concern investors, albeit offset by the improved margin and strong backlog. Historically, similar scenarios saw stock stagnation until visibility on future projects improved.

How important is it?

While current results are mixed, the long-term contract awards and debt reduction signal positive trends that can enhance CVU's stock appeal. Investor sentiment may fluctuate as further developments unfold.

Why Long Term?

The backlog and operational improvements suggest potential for long-term growth, aligning with strategic relationships. This outlook is essential for sustaining stock performance over time.

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March 31, 2025 17:15 ET  | Source: CPI Aerostructures, Inc. 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 AeroCPI 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. 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 OPERATIONSYears 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                 

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