Turnaround complete
CPI Aerostructures Announces 2007 Fourth Quarter and Year-End Results
Tuesday March 25, 8:45 am ET
Announces Initial 2008 Guidance - Best Revenue Year in the History of CPI Aero
EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero®”) (AMEX: CVU - News) today announced results for the fourth quarter and year ended December 31, 2007.
Fourth Quarter 2007 vs. 2006
Revenue increased 29% to $7,766,130 from $6,007,849;
Gross margin was 24% compared to 16% in last year’s fourth quarter;
Pre-tax income was $793,123, compared to a pre-tax loss of $12,011; and,
Net income was $528,123, or $0.09 per diluted share, compared to a net loss of $12,011, or $0.00 per diluted share.
Full Year 2007 vs. 2006
Revenue increased 56% to $27,985,476 from $17,907,989;
Gross margin was 26% as compared to 9%;
Pre-tax income was $3,016,896 compared to a pre-tax loss of $1,922,006;
Net income was $1,906,896 or $0.32 per diluted share, compared to a net loss of $1,265,006 or $0.23 per diluted share;
New orders were $37.7 million compared to $30.0 million, and,
Unawarded solicitations remain at a high level with open solicitations totaling a maximum realizable value of approximately $220 million.
Edward J. Fred, CPI Aero’s President & CEO, stated, “2007 marked a major turnaround in our business and paved the way for substantial growth in the coming years, due in great part to the success of our initiatives to grow our subcontracting and commercial businesses. Our net income was lower than projected, as we incurred costs to reconfigure the physical layout of our facility to accommodate the increased activity that we anticipate from our recently awarded contracts. While this initiative reduced our 2007 bottom line, it will enhance our ability to increase net income in future years. In 2007, we received approximately $37.7 million of new contract awards, which included approximately $22.7 million of government prime contract awards, approximately $9 million of government subcontract awards and approximately $6 million of commercial subcontract awards, compared to $30 million of new contract awards in 2006, which included approximately $23 million of government prime contract awards, approximately $7 million of government subcontract awards and no commercial subcontract awards.”
Mr. Fred continued, “2008 started strong as well. Through March 21, 2008, we had received $8.9 million of new contract awards, including a $4.2 million award from Sikorsky Aircraft under a long-term agreement for Hover Infra Red Reduction System (HIRRS) module assemblies, for use on the UH-60 Black Hawk helicopter, and more recently, a $511,000 contract to provide the U.S. Government with two engine nose cowl assemblies for its E-3A Airborne Early Warning aircraft. Last week, we also announced a new contract with Spirit AeroSystems, Inc. (“Spirit”) to provide Spirit with major aerostructure assemblies for a commercial aircraft program that Spirit is supporting. This is a multiyear contract with an initial order of approximately $3.5 million.”
Announces Initial 2008 Guidance
Based upon the high level of new and pending orders, CPI Aero expects 2008 revenue to be approximately $35 million, resulting in net income of approximately $2.6 million. Commenting, Mr. Fred stated, “With revenue and net income expected to increase by more than 25% and 37%, respectively, compared to 2007, we anticipate that 2008 will be the best revenue year in our history and we believe that this trend will continue into 2009. Since we are commencing various new, long-term programs that tend to be less profitable in the early stages, we are projecting a 24% gross margin for 2008.”
Conference Call
CPI Aero’s President and CEO, Edward J. Fred, and CFO, Vincent Palazzolo, will host a conference call today, Tuesday, March 25, 2008 at 11:00 am ET to discuss fourth quarter and year-end results as well as recent corporate developments. After opening remarks, there will be a question and answer period. Interested parties may participate in the call by dialing 706-679-3079. Please call in 10 minutes before the scheduled time and ask for the CPI Aero call. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.cpiaero.com and click on the “Investor Relations” section, then click on “Event Calendar”. Please access the website 15 minutes prior to the call to download and install any necessary audio software. The conference call will be archived and can be accessed for approximately 90 days. We suggest listeners use Microsoft Explorer as their browser.
CPI Aero is engaged in the contract production of structural aircraft parts for the U.S. Air Force, other branches of the armed forces and leading prime defense contractors. In conjunction with its assembly operations, CPI Aero provides engineering, technical and program management services. Among the key programs that CPI Aero supplies are the C-5A Galaxy cargo jet, the T-38 Talon jet trainer, the A-10 Thunderbolt attack jet, the E-3 Sentry AWACS jet, UH-60 Black Hawk helicopter, S-92 helicopter and the MH-60S mine countermeasure helicopter. |
