CPI Aerostructures Announces Fourth Quarter and Full Year 2016 Financial Results
Defense backlog at $321.7 Million, up 16% from 2015 year-end; multi-year defense contracts now represent 77% of total backlog; 2016 Full Year EPS and Adjusted EPS at $(0.42) and $0.71, respectively; 2016 Fourth Quarter EPS and Adjusted EPS at $0.24 and $0.24, respectively
(firmenpresse) - EDGEWOOD, NY -- (Marketwired) -- 03/07/17 -- CPI Aerostructures, Inc. ("CPI Aero®") (NYSE MKT: CVU) today reported fourth-quarter and full-year 2016 financial results.
Revenue of $81.3 million compared to $100.2 million;
Gross profit was $4.3 million compared to $16.6 million;
Pre-tax income (loss) was $(5.7) million compared to $8.0 million;
Net income (loss) was $(3.6) million compared to $5.0 million;
Earnings (loss) per diluted share were $(0.42) per diluted share compared to $0.58 per diluted share; and
Backlog at $416.3 Million, up approximately $29.0 Million or 7%, compared to $387.3 million.
Revenue of $24.3 million compared to $31.6 million;
Gross profit of $5.9 million compared to $3.6 million;
Pre-tax income of $3.4 million compared to $1.6 million;
Net income of $2.1 million compared to $0.7 million; and
Earnings per diluted share of $0.24 compared to $0.08.
Full year 2016 results were impacted by a non-cash charge related to the Company''s A-10 Wing Replacement Program (WRP) taken during the first quarter of 2016. In reporting first quarter 2016 results, CPI Aero announced that it had incurred a non-cash charge of approximately $13.5 million related to its estimate to perform through the conclusion of the order. The results presented on an adjusted basis that excludes the impact of the A-10 WRP from the applicable periods are provided in the schedules that accompany this release.
"Our financial results for fiscal 2016 reflect continued successful execution on a strategy first undertaken in 2014 to drive growth and profitability by leveraging our roots in the defense market and placing greater sales emphasis on multi-year opportunities," stated Douglas McCrosson, president and chief executive officer of CPI Aero. "We are pleased to report that multi-year defense programs comprise approximately 77% of backlog at year-end with the majority just beginning or about to begin generating revenue, thereby giving us significant revenue visibility in the coming years. In an ongoing, tight spending environment, we booked new orders totaling approximately $85 million in the second-half of fiscal 2016. Notable among those in the fourth quarter were Bell Helicopter/Textron and Sikorsky, both of which illustrate our ability to leverage superior program execution to secure additional awards.
"In 2017, we expect increased global spending on defense systems will be a tailwind to drive demand for our products," continued Mr. McCrosson. "As the U.S. Air Force balances its spending priorities between modernization and readiness, our technical and cost advantages and supply chain expertise are significant competitive differentiators in the market. Continued strength in spending on new equipment bodes well for our F-35, E-2D and Next Generation Jammer pod contracts. More spending to maintain the legacy fleets could be positive for our F-16, T-38, A-10 and Black Hawk programs. Further, increased spending internationally is expected to boost demand for our DB-110 pod and E-2D kits for the Japanese version of the E-2D. Our bid pipeline is aligned with our sales emphasis on defense opportunities, and we are seeing strong interest in our Aerosystems segment -- our pod-based systems business -- in which we now have a reputation for manufacturing at an OEM level, but at a lower cost. Opportunities in this business, as well as other programs we anticipate will be awarded in fiscal 2017, will continue to drive growth in our defense backlog."
Continued Mr. McCrosson, "The new Administration and Congress have indicated a disposition towards increasing defense funding levels. However, we are five months into the 2017 government fiscal year without a signed 2017 Defense Appropriations Bill. The Department of Defense is operating on a Continuing Resolution that is estimated to be in place through April, if not longer. This is creating uncertainty in the timing of awards for certain defense programs. As a result, we are updating financial guidance for 2017 to reflect a more conservative outlook for revenue growth in the range of 1.5% to 7%. This tempers our initial financial guidance provided in our third quarter 2016 earnings release on November 8, 2016 for top line growth in the range of 5% and 10% compared to 2016. Further, though we are heartened by recent news of plans to continue A-10 fleet operations through 2021 and we remain optimistic that the U.S. Air Force will ultimately decide to continue to replace the A-10''s wings via a new follow-on program, there is presently too much uncertainty to include any revenue or profit contribution from such a new A-10 re-wing contract in our 2017 forecast. In addition, 2017 revenue will be driven in large part by new defense awards that carry lower gross margins at the beginning of their project lifecycles. Therefore, gross profit margin for full year 2017 is expected to be on the lower end of our historical range of between 22% and 24%."
2017 financial guidance is as follows:
Revenue in the range of $82.5 million to $87.0 million as compared to $81.3 million in the fiscal 2016 full year ended December 31, 2016;
Pre-tax income in the range of $8.1 million to $8.5 million as compared to a pre-tax loss of $5.8 million in fiscal 2016;
Effective tax rate of approximately 37%.
Mr. McCrosson concluded, "As we enter fiscal 2017, we will begin to see the results of defense programs won over the past two years. With the defense sector in an upcycle and armed with our proven sales strategy and technical capabilities, we have a solid framework for continued organic growth. We seek to supplement our organic growth with acquisitions. We have begun a process to identify companies principally focused on the defense market that complement and enhance our current capabilities and could enable us to more quickly gain scale. We believe this is an important attribute that should enhance our competitive position and permit us to more rapidly gain a larger defense portfolio. Improved cost and process efficiencies made in prior years, coupled with our diversified backlog today and the opportunities ahead of us, have CPI Aero positioned to succeed in fiscal 2017 and beyond."
Management will host a conference call today at 8:30 a.m. ET to discuss the company''s 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 844-378-6486 or 412-542-4181. Please call in 10 minutes before the conference call is scheduled to begin. The conference call will also be broadcast live over the Internet. Additionally, a slide presentation will accompany the conference call. To listen to the live call, please go to , click on the Investor Relations section, then to the Event Calendar. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days.
CPI 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. CPI Aero is included in the Russell Microcap® Index.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero''s SEC reports, including CPI Aero''s Form 10-K for the year ended December 31, 2015, and Form 10-Q for the three-month periods ended March 31, 2016, June 30, 2016, and September 30, 2016.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
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Vincent Palazzolo
Chief Financial Officer
CPI Aero
(631) 586-5200
Investor Relations Counsel:
LHA
Jody Burfening/Sanjay M. Hurry
(212) 838-3777
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Datum: 07.03.2017 - 06:00 Uhr
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