Cpi Aerostructures, Inc. · AMEX:CVU
Cpi Aerostructures — Q1 2016 Earnings Presentation
21 slides from Cpi Aerostructures's earnings presentation, May 10, 2016
Slide 1: Q1'2016 Results Presentation
Q1’2016 Results Presentation May 10, 2016 Speakers: Douglas McCrosson, President & Chief Executive Officer Vincent Palazzolo, Chief Financial Officer
Slide 2: Disclosure Statement
Disclosure Statement Forward-Looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. All statements, other than statements of historical fact, included in this presentation, including without limitation, statements regarding projections, future
Slide 3: Recent Highlights
Recent Highlights Douglas McCrosson President & Chief Executive Officer av —4 cPL-*
Slide 4: A-10 Program: Update
A-10 Program: Update Recent Developments: > January 2016 - US. Air Force announces it is very likely to delay the retirement of the aircraft given ongoing operational needs, » February 2016 -fiscal 2017 President's Budget Request pushes out the retirement of the A-10 through 2022 in order to preserv
Slide 5: Backlog
acklog Consolidated Backlog at 03/31/2016 — $407.4 Million, up 5% from end of 2015 Funded 26% / Unfunded 76% Defense 74% / Commercial 26% Unfunded backlog represents remaining potential value of long term agreements Funded backlogup from $101.1 at 12/31/2015 $104.0M mFunded m= Unfunded Defense = Com
Slide 6: New Business
se Business Recent wins added approx. $225 million in backlog until 2022 E-2D Advanced F-16 Falcon T-38C Talon F-35A Japan E-2D Hawkeye/C-2A Trainer Hawkeye Greyhound $86.1M $53.5M $49M $10.6M $25-30M Announced Announced Announced Announced Announced November 2014 November 2014 February 2015 July 20
Slide 7: Financial Highlights
Financial Highlights Vincent Palazzolo AR} Chief Financial Officer cPL-*
Slide 8: Recent Financial Highlights
Recent Financial Highlights ($ in Millions, except per share data) GAAP as Reported Adjusted Earnings For the 3M Ended March 31, For the 3M Ended March 31, 2016 2015 2016 2015 Revenue $127 $19.9 $19.5 157 Cost of sales 243 163 15.8 12.0 Gross profit (loss) (116) 36 37 3.6 Selling, general and admini
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (Sin Millions, except per share value) As of March 31, 2015 March 28, 2016: Debt Refinancing » » » $40M, 3-year senior debt facility - $10M term loan - $30M revolving line-of-credit Replaces previous $35.0M credit facility Expands availability by $5M CEE (unbilled receivable
Slide 10: Updated 2016 Financial Guidance
Updated 2016 Financial Guidance Adjusted * $82.5M — $88.5M Revenue + Reduces all projected A-10 program revenue from forecast ¢ $9.8M - $10.5M + Adds back the $15.3 million charge recorded in 1Q16 related to A-10 program + Approximately 37% 10
Slide 11: 2016 Financial Initiatives
2016 Financial Initiatives Lower inventory levels and reduce unbilled receivables (CEE) Strengthen Balance Sheet ‘ene: Investments made in 2015 expected investment In p arabele to favorably impact margins Improve Debt Coverage Ratios | Already lower than industry peers Further Reduce Overhead & SG&A
Slide 12: Looking Ahead
Looking Ahead Douglas McCrosson President & Chief Executive Officer av —4
Slide 13: Bid Pipeline (5/06/16)
Bid Pipeline (5/06/16) Defense opportunities Continued Diversification are increasing Across Product Categories Defense = Commercial =Kitting sMRO mAerostructures mAerosystems
Slide 14: 2016 Program Opportunities
2016 Program Opportunities Current opportunities: Aerostructures — Military Helos: H-92, AH-1Z, CH-53K, V-280 — Various regional commercial aircraft (Tier 1 and Tier 2 opportunities) — Military Fixed Wing: A-10 thick skin urgent spares kitting (TUSK), F-35 — MRO: F-16 SLEP, BLACK HAWK — ISRand EW Po
Slide 15: Future Opportunities
Future Opportunities T-X Trainer Lockheed Martin F-35 Foreign sales - F-16 Northrop Grumman B-21 a 18
Slide 16: Long-Term Visibility - Contracts
Long-Term Visibility - Contracts Firm, Funded Contracts Provide Long-Term Revenue Visi 8 9 10 11 #12 143 14 “45 #16 «#17 «#18 «19 ity and Operating Leverage 20 ‘21 ‘22 ‘23 ‘24 ‘25 U.S. GOVERNMENT-F-16 NORTHROP GRUMMAN - for the E-2D & C-2A i NORTHROP GRUMMAN - Japan Ea -2D Potential to collectively
Slide 17: Q&A Session
Q&A Session
Slide 18: Financial Appendix
Financial Appendix
Slide 19: Adjusted Statement of Earnings
Adjusted Statement of Earnings For the Three Months Ended March 31, 2016 GAAP Adjusted as Reported Adjustments Earnings Revenues $12,670,032 $6,820,981 $19,491,013 Cost of sales 24,309,136 (8.470.714) 15,838,422 Gross profit (11,639,104) 15,291,695, 3,652,591 = and administrative 2,720,383 2,720,388
Slide 20: Adjusted Statement of Earnings
Adjusted Statement of Earnings For the Three Months Ended March 31,2015 GAP Adjusted as Reported Adjustments Eamings Revenues $19,876,566 ($4,225,533) $15,651,033 Costof sales 16.274.495 (4.238.510) 12,035 985 Gross profit 3.602.071 12977 3,615,048 Selling, general and administrative expenses 2,019,
Slide 21: Vincent Palazzolo, CFO
Vincent Palazzolo, CFO (631) 586-5200 www.cpiaero.com Jody Burfening / Sanjay M. Hurry LHA Inc. (212) 838-3777 cpiaero@lhai.com