Cpi Aerostructures, Inc. · AMEX:CVU
Cpi Aerostructures — Q1 2020 Earnings Presentation
16 slides from Cpi Aerostructures's earnings presentation, Oct 1, 2020
Slide 1: 2020 Q1 Results Presentation
Expertise in Aerospace Technologies 2020 Q1 Results Presentation Speakers: Douglas McCrosson, President & Chief Executive Officer Tom Powers, Acting Chief Financial Officer October 1, 2020 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: Recent Highlights
Recent Highlights 1. First Quarter Results Reflect Transition Period of Raytheon NGJ Pod Program • Revenue of $16.9 million versus $22.0 million restated • Gross profit of $0.7 million versus $2.5 million; • Net loss of $2.8 million versus $0.9 million • Cash used in operating activities of $1.4 mil
Slide 5: Successful Execution of Defense-Centric Strategy
Successful Execution of Defense-Centric Strategy Record Consolidated Backlog at 3/31/2020: $556.4 Million; Record Defense Backlog: $499.1 Million Defense 90% / Commercial 10% 1Q 2019 – 1Q 2020 ($ in Millions) Backlog (Defense/Commercial) $57.3 Commercial Defense Total Backlog $600 Total backlog incl
Slide 6: Diversified Program Portfolio Aligned with Defense Spending Priorities
Diversified Program Portfolio Aligned with Defense Spending Priorities Presence on prominent defense programs with strong funding Bell / Textron Unidentified Unidentified NGC E-2D Advanced Lockheed Martin F-35 Lockheed Martin AH-1Z Viper Missile Platform Sikorsky Helicopter Hawkeye – Follow On Light
Slide 7: 1Q 2020 Financial Highlights
1Q 2020 Financial Highlights Tom Powers Acting Chief Financial Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 7
Slide 8: 1Q Income Statement Highlights
1Q Income Statement Highlights ($ in Millions) For the Three Months Ended March 31, 2020 2019 (Unaudited) (Unaudited) Revenue $16.9 $22.0 Cost of sales 16.2 19.5 Gross profit 0.7 2.5 Selling, general and administrative expenses 3.1 2.9 Loss from operations (2.4) 0.4 Loss before provision for (benefi
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights ($ in Millions) As of March 31, 2020 Amended Credit Facility (Unaudited) • Entered into Amended Credit Facility on Cash and Restricted Cash $3.4 August 24, 2020 − Outstanding principal on term loan increased Net Contract Assets and Liabilities 11.1 to $8.0 million − $24 mill
Slide 10: 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 10
Slide 11: Defense Weighted Backlog Positions CPI Aero for Profitable Growth
Defense Weighted Backlog Positions CPI Aero for Profitable Growth ‘08 ‘09 ’10 ’11 ’12 ’13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 A-10 Thunderbolt II Defense Commercial T70 Turkish Utility Helicopter Program Undisclosed Prototype Pod T-38 PC3 / TRIM Next Generation Jammer Increment 1 Pod E17
Slide 12: Near-Term Program Opportunities
Near-Term Program Opportunities AEROSTRUCTURES AEROSYSTEMS • Missile Wings • Intelligence, Surveillance & Reconnaissance (ISR) Pods • Repair of various helicopter structural assemblies • Electronic Warfare (BW) Pods • Unmanned Aerial Systems • SEASPARROW missile controlelectronics • Flight control s
Slide 13: 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 $2M debt in 2020 3. Margin Expansion • Expect ramping up newer defense programs will
Slide 14: Growth Drivers
Growth Drivers ($ in Millions) % of Backlog Key Estimated 3-Year Business 2018 Rev. at 3/31/20 Platforms Growth Outlook (2018-2021) Area (Restated) Aerostructures $35.1 27% A-10, F-16, UH-60 12% - 14% Aerosystems NGJ-MB, F-35, DB-110 $17.6 43% 22% - 26% UH-60, CH-53K Kitting/SCM E-2D, T-38 $17.7 30%
Slide 15: 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 15
Slide 16: 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 16