Slide 1: 2020 Q3 Results Presentation
Expertise in Aerospace Technologies 2020 Q3 Results Presentation Speakers: Douglas McCrosson, President & Chief Executive Officer Tom Powers, Acting Chief Financial Officer Monday, January 4, 2021 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 1
Slide 2: Disclosure Statements
Disclosure Statements This presentation contains forward-looking statements that are based on current expectations of management and certain assumptions that are subject to risks and uncertainties. There can be no assurance that such risks and uncertainties will not affect the accuracy of the forwar
Slide 3: Recent Highlights
Recent Highlights Douglas McCrosson President & Chief Executive Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 3
Slide 4: Highlights
Highlights 1. Strong Third Quarter Results Reflect Production Ramp Up of Newer Defense Programs • Revenue of $25.6 million increased 29.6% vs. 2Q2020 and 12.7% vs 3Q2019 • Revenue from military programs grew 38.2% vs 2Q2020 and 38.0% vs 3Q2019 • Gross profit of $4.2 million grew 62.1% vs 2Q2020 and
Slide 5: Stable Defense Backlog
Stable Defense Backlog Consolidated Backlog at 9/30/2020: $536.9 Million; Defense Backlog: $480.2 Million 3Q 2019 – 3Q 2020 Backlog (Defense/Commercial) Commercial Defense Total Backlog $600 $536.9 • Funded defense backlog of $500 $183.9 million as of September 30, $480.2 2020 $400 • Book to bill of
Slide 6: 3Q 2020 Financial Highlights
3Q 2020 Financial Highlights Tom Powers Acting Chief Financial Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 6
Slide 7: 3Q Income Statement Highlights
3Q Income Statement Highlights ($ in Millions) For the Three Months Ended September 30, 2020 2019 Revenue $25.6 $22.7 Cost of sales 21.4 20.8 Gross profit 4.2 1.9 Selling, general and administrative expenses 3.1 2.8 Income/(loss) from operations 1.1 (0.9) Income/(loss) before provision for (benefit
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights ($ in Millions) ($ in Millions) As of September 30, 2020 As of December 31, 2019 Cash and Restricted Cash 5.0 Cash and Restricted Cash 5.4 Net Contract Assets and Liabilities 15.9 Net Contract Assets and Liabilities 11.7 Total Debt * 33.9 Total Debt 31.0 * Debt at 9/30/20 in
Slide 9: Looking Ahead
Looking Ahead Douglas McCrosson President & Chief Executive Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 9
Slide 10: Near-term Priorities
Near-term Priorities 1. Sharpened focus on liquidity • Compressing the cash cycle • Improving working capital management 2. Strengthened Balance Sheet • Apply increased operating cash flow to pay down approximately $2M debt in 2020 3. Margin Expansion • Expect ramping up newer defense programs will
Slide 11: Q&A Session
Q&A Session Douglas McCrosson President & Chief Executive Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 11
Slide 12: Investor Relations Counsel
Investor Relations Counsel Jody Burfening, LHA Investor Relations (212) 838-3777 cpiaero@lhai.com Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 12