Slide 1: Q2'2016 Results Presentation
A Premier Supplier of Aircraft Structures andSystems NYSE MKT:CVU Q2’2016ResultsPresentation August 4,2016 Speakers: Douglas McCrosson, President & Chief Executive Officer Vincent Palazzolo, Chief FinancialOfficer
Slide 2: Disclosure Statement
2 Disclosure Statement Forward-LookingStatements Thispresentationcontainsforward-lookingstatementsthatinvolverisksanduncertainties.Allstatements,other thanstatementsofhistoricalfact, includedinthispresentation,includingwithoutlimitation,statementsregarding projections,futurefinancingneeds,andstateme
Slide 3: Recent Highlights
3 RecentHighlights DouglasMcCrosson President & Chief ExecutiveOfficer
Slide 4: Consolidated Backlog at 06/30/2016
4 Backlog Funded 24% / Unfunded 76% Defense 74% / Commercial 26% Consolidated Backlog at 06/30/2016: $395.4 Million 1 $95.7M $299.7M Funded Unfunded Unfunded backlog represents remaining potential value of long term agreements $291.5M $103.9M Defense Commercial 1 Backlog at 6/30/16 does not include
Slide 5: Driven By Renewed Strength in Defense Business
5 Driven By Renewed Strength in Defense Business Recent wins adding $250+ million in backlog until 2022 Contract Period 2013 -2021 Contract Period 2016 -2019 Contract Period 2015 -2021 Contract Period 2014 -2022 Contract Period 2015 -2021 Announced November 2014 Announced January 2016 Announced Febr
Slide 6: Financial Highlights
6 Financial Highlights Vincent Palazzolo Chief Financial Officer
Slide 7: Recent Financial Highlights
7 Recent Financial Highlights ($ in Millions, except per share data) 2016 2015 2016 2015 Revenue $22.3 $21.9 $19.8 16.3 Cost of sales 17.3 18.1 14.8 12.4 Gross profit 5.0 3.8 5.0 3.8 Selling, general and administrative expenses 1.9 2.0 1.9 2.0 Income from operations 3.2 1.8 3.2 1.8 Income before pro
Slide 8: Balance Sheet Highlights
8 Balance Sheet Highlights Total Debt Total Debt Credit Facility Shareholders’ Equity Book Value Debt-to-Capital As of June 30, 2016 CEE (unbilled receivables) $ 94.0 Total Debt 32.8 Shareholders’ Equity 63.4 Book Value,per diluted share 7.34 Debt-to-Capital 0.48 ($ in Millions, except per share val
Slide 9: 2016 Financial Guidance Reaffirmed
9 2016 Financial Guidance Reaffirmed Revenue Pre-tax Income NetIncome Effective Tax Rate •$82.5M–$88.5M •Reduces all projected A-10 program revenue from forecast Adjusted Revenue •$9.8M–$10.5M •Adds back the $15.3 million charge recorded in 1Q16related to A-10 program Adjusted Pre-tax Income •Approx
Slide 10: 2016 Financial Initiatives
10 Strengthen Balance Sheet Continue Investment In Automation Improve Debt Coverage Ratios Further Reduce Overhead & SG&A Expenses 2016 Financial Initiatives Lower inventory levels and reduce unbilled receivables (CEE) Already lower than industry peers Investments made in 2015 expected to favorably
Slide 11: Looking Ahead
11 Looking Ahead DouglasMcCrosson President & Chief ExecutiveOfficer
Slide 12: Continued Diversification Across Product Categories
12 Continued Diversification Across Product Categories Defense opportunities are increasing Bid Pipeline (7/31/16) 67% 33% Defense Commercial 7% 5% 44% 44% Kitting MRO Aerostructures Aerosystems
Slide 13: 2016 Program Opportunities
13 2016 Program 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 Aerosystems ? ISR and EW pod struc
Slide 14: Long-Term Visibility - Contracts
14 Long-Term Visibility -Contracts Potential to collectively generate revenue of $395.4Mduring their remaining periods of performance (as of 6/30/16) Firm, Funded Contracts Provide Long-Term Revenue Visibility and Operating Leverage U.S. GOVERNMENT–F-16 TRIUMPH GROUP -Gulfstream G650 SIKORSKY –UH-60
Slide 15: Future Opportunities
15 Future Opportunities T-X Trainer Foreign sales –F-16 Northrop Grumman B-21 Lockheed Martin F-35
Slide 16: Q&A Session
Q&A Session cei
Slide 17: Financial Appendix
Financial Appendix cei
Slide 18: Adjusted Statement of Earnings
18 Adjusted Statement of Earnings Adjusted Earnings (arrived at by eliminating the Company's A-10 Program with Boeing from reported results) is not derived in accordance with generally accepted accounting principles (“GAAP”). Adjusted earnings is a key metricCPI Aero has used in evaluating its finan
Slide 19: Adjusted Statement of Earnings
19 Adjusted Statement of Earnings GAAP Adjusted as Reported Adjustments Earnings Revenues $21,944,320 ($5,683,772) $16,260,548 Cost of sales 18,095,951 (5,683,772) 12,412,179 Gross profit 3,848,369 3,848,369 2,049,793 2,049,793 Income from operations 1,798,576 1,798,576 Interest expense 270,468 270,
Slide 20: Contact us
20 Contact us CPI Aerostructures Vincent Palazzolo, CFO (631) 586-5200 www.cpiaero.com Investor Relations Jody Burfening& Sanjay M. Hurry (212) 838-3777 cpiaero@lhai.com www.lhai.com