Cpi Aerostructures, Inc. · AMEX:CVU
Cpi Aerostructures — G. Research 26th Annual Virtual Aerospace & Defense Symposium (September 2020)
20 slides from Cpi Aerostructures's conference presentation, Sep 10, 2020
Slide 1: G. Research 26th Annual Virtual Aerospace & Defense Symposium
Expertise in Aerospace Technologies G. Research 26th Annual Virtual Aerospace & Defense Symposium Douglas McCrosson, President & Chief Executive Officer Thursday, September 10, 2020 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 1
Slide 2: Disclosure Statements
Disclosure 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
Slide 3: At a Glance
At a Glance Wing Structures Engine Inlet Assemblies EW/ISR Pods Kitting & Supply Chain Management MRO Welded Tubes and Oil Tanks $ 87.5M $ 561.9M 79/21 Revenue* Total Backlog** Defense / Commercial (Rev)* 171,000ft 2 250+ 275+ Facilities Active Suppliers Employees 40 Years • FYE 12/31/2019 ** At 12/
Slide 4: Investment Highlights
Investment Highlights 1 Unique Tier 1 Strategy in the Aerospace & Defense Supply Chain 2 Broad Product and Services Portfolio 3 Successful Execution of Defense-Centric Strategy Results in Record Defense Backlog of $496.7 Million1 4 Defense Contracts Aligned with National Security Funding Priorities
Slide 5: Diverse Product and Services Portfolio
Diverse Product and Services Portfolio Manufacturer of aerospace structural assemblies and integrated systems for the defense and commercial markets; Strong defense portfolio with a balance between modernization and readiness AEROSTRUCTURES AEROSYSTEMS KITTING & SCM Wings Inlets / Nacelles Pods Wing
Slide 6: Unique Business Model focused on Mixed Commodity Assembly
Unique Business Model focused on Mixed Commodity Assembly Goal: Maintain and Expand our Tier 1 Status Components or Manufacture Manufacture aircraft Final assembly, finish, detailed parts subassemblies sections and delivery ✓ NOT a parts manufacturer trying to move up the value- OEM added chain Tier
Slide 7: Three Business Segments - Revenues
Three Business Segments - Revenues AEROSTRUCTURES AEROSYSTEMS FYE 12/31/2019 Revenues 48% of 43% 30% of $19.0 FY Q4 2019 FY Q4 2019 57% Revenues Revenues $100.0 $41.9 $87.5 million KITTING & SCM $3.0 $26.6 22% of FY Q4 2019 Revenues Aerostructures Aerosystems Kitting $97.0 Defense Commercial Informa
Slide 8: Defense Centric Strategy Gaining Momentum
Defense Centric Strategy Gaining Momentum Presence on prominent defense programs with strong funding Defense market focus yielding large, diversified, and growing backlog Bell / Textron Unidentified Unidentified NGC E-2D Advanced Lockheed Martin F-35 Lockheed Martin AH-1Z Viper Missile Platform Siko
Slide 9: Successful Execution of Defense Business Development Strategy
Successful Execution of Defense Business Development Strategy Funded Backlog $10.7 ($ in Millions) $65.2 $137.0 Total Backlog $561.9* Funded / Unfunded $147.7 $496.7 Backlog includes both funded orders and the estimated amount of future orders under the expected duration of the program. $414.2 Defen
Slide 10: Large and Diversified Backlog Drives Strong Visibility
Large and Diversified Backlog Drives Strong Visibility ‘08 ‘09 ’10 ’11 ’12 ’13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 A-10 Thunderbolt II Defense Commercial T70 Turkish Utility Helicopter Program Undisclosed Prototype Pod T-38 PC3 / TRIM Next Generation Jammer Increment 1 Pod E175-E2 Phenom
Slide 11: Revised Growth Drivers
Revised Growth Drivers ($ 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% 12% - 14% (Is Now) A-10, F-16, UH-60 12% - 18% (Was) Aerosystems NGJ-MB, F-35, DB-110 22% - 26% (Is Now) $17.6 43% UH-6
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: Future Opportunities
Future Opportunities EW/ISR Pods Space Unmanned Aerial Hypersonics Systems Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 13
Slide 14: Conclusion
Conclusion • Stable, near-term business with meaningful, long-term growth opportunities • Durable relationships with Top Tier 1 OEM aerospace customers • Defense market focus yielding large, diversified and growing backlog – Record $496.7 million defense backlog at year-end • Cash flow from operatio
Slide 15: 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 15
Slide 16: Appendix
Appendix Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 16
Slide 17: Backlog
Backlog Consolidated Backlog at 12/31/2019: $561.9 Million Defense Backlog: $484.3 Million, Up 55% over prior two years Defense 88% / Commercial 12% 4Q 2018 – 4Q 2019 ($ in Millions) Backlog (Defense/Commercial) $65.2 Commercial Defense Total Backlog $600 Total $561.9 Backlog $561.9 $500 $496.7 $496
Slide 18: Recent Financial Highlights
Recent Financial Highlights For the years ended December 31, 2019 2018 (As Restated) Revenue $87.5 $70.4 Cost of sales 78.4 66.2 Gross profit 9.1 4.2 Selling, general and administrative expenses 11.6 9.8 Loss from operations (2.4) (5.6) Loss before provision for income taxes (4.4) (7.5) Net loss (4.
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights ($ in Millions) As of December 31, 2019 Amended Credit Facility • Entered into Amended Credit Facility on Cash and Restricted Cash $5.4 August 24, 2020 − Outstanding principal on term loan increased Contract Assets 15.3 to $8.0 million − $24 million revolving line-of-credit
Slide 20: Executive Leadership with Extensive Industry Expertise
Executive Leadership with Extensive Industry Expertise Douglas McCrosson Thomas Powers President & Chief Executive Officer Acting Chief Financial Officer & Secretary • President & CEO since 2014; COO, 2010-2014; with CPI Aero since 2003 • Acting CFO since February 2020 • Prior: Grumman Corp; Frisby