Slide 1: 2015 Full Year Results Presentation
2015 Full Year Results Presentation March 28, 2016 Speakers: Douglas McCrosson, President & Chief Executive Officer Vincent Palazzolo, Chief Financial Officer A Premier Supplier of Aircraft Structures and Systems NYSE MKT: CVU
Slide 2: Forward Looking Statements
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 financing needs, and
Slide 3: Recent Highlights
Recent Highlights Douglas McCrosson President & Chief Executive Officer
Slide 4: Recent Business Highlights
Recent Business Highlights A Record Q4’15 Record FY15 Revenue: Revenue: LJ $31.6 Million $100.2 Million vs Q4’14 Revenue vs FY14 Revenue Large Backlog: $387.3 Million at 12/31/15 Funded Unfunded backlog: backlog: $101.1 Million $286.2 Million CPI ;
Slide 5: Renewed Strength in Defense Business
en By Renewed Strength in Defense 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 HawkeyelC-2A Trainer Hawkeye Greyhound $86.1M $53.5M $49M $10.6M $25-30M Announced Announced Announced Announced Announced November 2014 Nov
Slide 6: Record Backlog
Record Backlog Consolidated Backlog at 12/31/2015 — $387.3 Million Funded 26% / Unfunded 76% Defense 71% / Commercial 29% Unfunded backlog represents remaining potential value of long term agreements $101.1M > $286.2M $276.9M «Funded * Unfunded *Defense = Commercial
Slide 7: Financial Highlights
Financial Highlights Vincent Palazzolo y Chief Financial Officer
Slide 8: Recent Financial Highlights
Recent Financial Highligh For the 3M Ended December 31, For the 12M Ended December 31, 2015 2014 2015 2014 Revenue $31,590,790 $21,487,677 $10,202,557 $39,687,010 Cost of sales 28,036,959 17,016,373 83,600,854 69,414,709 Gross profit (loss) 3,554,831 4,474,304 16,601,703 -29,724,699 Selling, general
Slide 9: Gross Margin Comparison
42M 2015: ie 4Q 2015: 11.3% vs 4Q 2014: 20.8% vs 12M 2014: -74.9% Reflects the impact of the A-10 program as we continued to record revenue on the A-10 with zero gross margin Excluding the effect of the A-10 Program: 4Q 2015: 21.1% vs AQ 2014: 24.5% 12M 2015: 22.6% vs 12M 2014: 22.3% CPI
Slide 10: Revenue Breakdown by Program
evenue Breakdown by Program 4Q15 FY15 Defense Programs: $20.3M Defense Programs: $57.9M of which $20.0 million was from Tier 1 of which $57.0 million was from Tier 1 military subcontracts with OEMs and $0.3 military subcontracts with OEMs and $0.9 million was from government prime million was from g
Slide 11: Balance Sheet Highlights
alance Sheet Highlights (Sin Milions, except per share value) As of December 31, 2015 March 28, 2016: Debt Refinancing » $40M, 3-year senior debt facility CEE (unbilled receivables) $ 102.6 - $10M term loan Total Debt 25.2 - $30M revolving line-of-credit » Replaces previous $35.0M credit facility Cr
Slide 12: 2016 Financial Guidance
2016 Financial Guidance Revenue ¢ $97.5M — $103.5M Pre-tax Income ¢ $9.8M - $10.5M aiied\eaiebeacita) ° Approximately 37%
Slide 13: Revenue Guidance: by Market
Revenue Guidance: by Market Defense/Commercial split effected by recent military contract wins Commercial Defense > Contracts on the two best > Strong growth driven by selling business jets in the recent wins marketplace; > Ramping up production of HondaJet 2015 2016E "Defense » Commercial *Defense
Slide 14: Revenue Guidance: by Subcontractor Role
Revenue Guidance: by Subcontractor Role 2016 Revenue $97.5M - $103.5M AT% : 1% Prime Growth in revenue due to recent wins on F-16 and T-38 82% =Prime =Tier1 =Tier2
Slide 15: Revenue Guidance: by Category
Revenue Guidance: by Category Non-AeroStructures business expected to increase to 45% of total revenue Growth fueled by recent E-2D, F-16 55% sAeroStructures sAeroSystems = Kitting & SCM CPI and T-38 contracts. Kitting & SCM
Slide 16: 2016 Financial Initiatives
2016 Financial Initiatives Strengthen Balance Sheet Lower inventory levels and reduce unbilled receivables (CEE) Continue Investment In ‘Automation Investments made in 2015 expected Improve Debt Already lower than industry peers ‘eoverage Ratios Further Reduce Overhead & SG&A Expenses G&A rate reduc
Slide 17: Looking Ahead to 2016 — Backlog, Macro-Environment, Business Plans
Looking Ahead to 2016 — Backlog, Macro-Environment, Business Plans Douglas McCrosson President & Chief Executive Officer
Slide 18: Long-Term Visibility - Contracts
Long-Term Visibility - Contracts Firm, Funded Contracts Provide Long-Term Revenue Visibility and Operating Leverage 08 ‘09 °10 11 12 13 14 «15 “16 “17 “18 “19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 U.S. - GOVERNMENT— F-16 ---5 So -----+ _US S.( GOVERNMENT — T-38C Talon izainerry LOCKHEED NORTHROP GRUMMAN - for the
Slide 19: A-10 Program: Update
A-10 Program: Update Recent development: ) > — January 2016 - USAF announces itis 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 preserve the a
Slide 20: Bid Pipeline (3/14/16)
Bid Pipeline (3/14/16) Defense opportunities Continued Diversification are increasing Across Product Categories MRO conmmi cm aacstchae ed 27% Dotense 76% Aerosystms 3% Defense + Commercial Kiting -MRO -Aerostructures - Aerosystems CPI .
Slide 21: Q&A Session
Q&A Qé&A Session CPL .
Slide 22: Contact us
Contact us Vincent Palazzolo, CFO (631) 586-5200 www.cpiaero.com Jody Burfening / Sanjay M. Hurry LHA Inc. (212) 838-3777