CPI Aerostructures Updates Guidance for 2003 Fourth Quarter and Year; 2003 Contracts Total $31.1 Million, up 27% from 2002
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Fri Jan 16 08:30:00 2004 EST
EDGEWOOD, N.Y., Jan 16, 2004 (BUSINESS WIRE) --
CPI
Aerostructures, Inc. ("CPI") (AMEX: CVU) today announced preliminary
revenue estimates for the fourth quarter and year ended December 31,
2003 of $6.3 million and $27 million, respectively. This represents a
5% increase over last year's fourth quarter and a 12.5% increase over
the $24 million reported for 2002. While the year-end audit is still
underway, the Company expects income from operations for 2003 of
approximately $5.8 million, up 16% from $5 million the previous year.
In addition, 2003 net income, including non-recurring gains of
approximately $2.8 million, is projected at $8.6 million, up 88% from
$4.4 million last year. Throughout 2003 CPI utilized a portion of its
NOL resulting in no provision for income taxes in the calculation of
net income.
Edward J. Fred, President and CEO of CPI Aerostructures commented,
"We are pleased with this year's accomplishments, which include
double-digit growth in revenue and income, supported by a strong
balance sheet. While we are disappointed in not achieving our $30
million target, it was not due to a slowdown in business activity.
Under the percentage of completion method of accounting, revenue is
derived when material and services are purchased by the Company from
subcontractors. During the fourth quarter, the amount of these
purchases was less than anticipated, which therefore lowered revenue
recognition."
Mr. Fred concluded, "We remain optimistic about the outlook for
the Company. Indicative of the healthy business environment in which
we are participating, in 2003 CPI was granted 350 new contracts, a 23%
increase over last year, and total contract awards for 2003 reached
$31.1 million, a 27% increase over 2002. Our business pipeline remains
strong as we continue our pursuit of larger contracts for the C-5A
Galaxy cargo jet as well as other military aircraft. We remain
confident that our longstanding relationship with the military gives
us a competitive advantage in the bidding process."
The Company plans to issue its fourth quarter and year-end 2003
results in late March, 2003 at which time management will conduct a
conference call to review financial results. |
