Slide 1: Q3'2016 Results Presentation
NYSE MKT: CVU A Premier Supplier of Aircraft Structures and Systems Q3’2016 Results Presentation November 8, 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, fu
Slide 3: Recent Highlights
3 Recent Highlights Douglas McCrosso n President & Chief Executive Officer
Slide 4: Backlog
Backlog 4 Consolidated Backlog at 09/30/2016: $441.5 Million* Record Military Backlog of $332.7 Million* $89.0M $352.6M Funded Unfunded Unfunded backlog represents remaining potential value of long term agreements $332.7M $108.9M Defense Commercial * Backlog at 9/30/16 does not include $5 Million Si
Slide 5: Driven By Renewed Strength in Defense Business
Driven By Renewed Strength in Defense Business Recent wins account for $247 million in backlog as of Sept. 30, 2016 Offers revenue visibility into 2022 and beyond Contract Period 2013 – 2021 Contract Period 2016 – 2019 Contract Period 2015 – 2021 Contract Period 2014 – 2020 Contract Period 2015 – 20
Slide 6: Financial Highlights
6 Financial Highlights Vincent Palazzolo Chief Financial Officer
Slide 7: Recent Financial Highlights
Recent Financial Highlights 7 ($ in Millions, except per share data) 2016 2015 2016 2015 Revenue $22.1 $26.8 $19.4 $23.9 Cost of sales 17.1 21.2 14.4 18.3 Gross profit 5.0 5.6 5.0 5.6 Selling, general and administrative expenses 2.0 1.9 2.0 1.9 Income from operations 3.0 3.7 3.0 3.7 Income before pr
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights 8 Total Debt Total Debt Credit Facility Shareholders’ Equity Book Value Debt - to - Capital As of September 30, 2016 CEE (unbilled receivables) $ 95.7 Total Debt 32.3 Shareholders’ Equity 65.3 Book Value, per diluted share 7.48 Debt - to - Capital 0.49 ($ in Millions, except
Slide 9: Updated 2016 Financial Guidance
Updated 2016 Financial Guidance 9 Adjusted Revenue Adjusted Pre - tax Income Effective Tax Rate • $82.5M – $ 88.5M • Reduces all projected A - 10 program revenue from forecast • Lower end of range of $9.8M - $ 10.5M • Adds back the $15.3 million charge recorded • Approximately 37 %
Slide 10: 2016 Financial Initiatives
2016 Financial Initiatives 10 Strengthen Balance Sheet Continue Investment In Automation Improve Debt Coverage Ratios Further Reduce Overhead & SG&A Expenses 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 Douglas McCrosso n President & Chief Executive Officer
Slide 12: Bid Pipeline (11/1/16)
Bid Pipeline (11/1/16) 12 55% 45% Defense Commercial 5% 5% 59% 31% Kitting MRO Aerostructures Aerosystems Virtually all bids are at the Prime Contractor or Tier 1 level Defense opportunities are increasing Continued Diversification Across Product Categories
Slide 13: Near-Term Program Opportunities
Near - Term Program Opportunities 13 Current opportunities: Aerostructures • Military Helos : H - 92, AH - 1Z, CH - 53K, V - 280 • Various regional commercial aircraft • Military Fixed Wing: A - 10 thick skin urgent spares kitting (TUSK), F - 35 • MRO: F - 16 service - life extension program (SLEP),
Slide 14: Long-Term Visibility - Contracts
Long - Term Visibility - Contracts Potential to collectively generate revenue of $441M during their remaining periods of performance (as of 9/30/16) Firm, Funded Contracts Provide Long - Term Revenue Visibility and Operating Leverage TRIUMPH GROUP - Gulfstream G650 SIKORSKY – UH - 60 Black Hawk U.S.
Slide 15: Future Opportunities
Future Opportunities 15 T - X Trainer F - 16 (FMS, SLEP) Northrop Grumman B - 21 Lockheed Martin F - 35 JSTARS Recapitalization F - 15
Slide 16: Q&A Session
CPL seas Q&A Session
Slide 17: Financial Appendix
CPL seas Financial Appendix
Slide 18: Adjusted Statement of Earnings
Adjusted Statement of Earnings 18 Adjusted Earnings (arrived at by eliminating the Company's A - 10 Program with Boeing from reported results) is not derived in acc ordance with generally accepted accounting principles (“GAAP”). Adjusted earnings is a key metric CPI Aero has used in evaluating its f
Slide 19: Adjusted Statement of Earnings
Adjusted Statement of Earnings 19 GAAP Adjusted as Reported Adjustments Earnings Revenues $26,790,881 ($2,894,487) $23,896,394 Cost of sales 21,194,449 (2,889,279) 18,305,170 Gross profit 5,596,432 (5208) 5,591,224 1,898,965 1,898,965 Income from operations 3,697,467 (5208) 3,692,259 Interest expens
Slide 20: Thank you
Thank you CPI Aerostructures Vincent Palazzolo, Chief Financial Officer (631) 586 - 5200 www.cpiaero.com Investor Relations Sanjay M. Hurry /Jody Burfening LHA (212) 838 - 3777 cpiaero@lhai.com 20