Cpi Aerostructures, Inc. · AMEX:CVU
Cpi Aerostructures — Q2 2020 Earnings Presentation
14 slides from Cpi Aerostructures's earnings presentation, Nov 12, 2020
Slide 1: 2020 Q2 Results Presentation
Expertise in Aerospace Technologies 2020 Q2 Results Presentation Speakers: Douglas McCrosson, President & Chief Executive Officer Tom Powers, Acting Chief Financial Officer November 12, 2020 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 1
Slide 2: Disclosure Statements
Disclosure Statements This presentation contains forward-looking statements that are based on current expectations of management and certain assumptions that are subject to risks and uncertainties. There can be no assurance that such risks and uncertainties will not affect the accuracy of the forwar
Slide 3: Recent Highlights
Recent Highlights Douglas McCrosson President & Chief Executive Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 3
Slide 4: Recent Highlights
Recent Highlights 1. Second Quarter Results Reflect Solid Execution of Funded Defense Backlog • Revenue of $19.7 million versus $20.1 million restated • Gross profit of $2.6 million versus $2.2 million; • Net loss of $0.6 million versus $0.9 million • Cash flow from operations of $0.6 million versus
Slide 5: Stable Defense Backlog
Stable Defense Backlog Consolidated Backlog at 6/30/2020: $546.4 Million; Record Defense Backlog: $491.1 Million Defense 90% / Commercial 10% 2Q 2018 – 2Q 2020 ($ in Millions) Backlog (Defense/Commercial) $55.3 Commercial Defense Total Backlog Total backlog includes both $600 funded orders and the T
Slide 6: 2Q 2020 Financial Highlights
2Q 2020 Financial Highlights Tom Powers Acting Chief Financial Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 6
Slide 7: 2Q Income Statement Highlights
2Q Income Statement Highlights ($ in Millions) For the Three Months Ended June 30, 2020 2019 Revenue $19.7 $20.1 Cost of sales 17.2 17.9 Gross profit 2.6 2.2 Selling, general and administrative expenses 2.8 2.5 Loss from operations (0.2) (0.3) Loss before provision for (benefit from) income taxes (0
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights ($ in Millions) As of June 30, 2020 $4.8 million PPP Loan • Received $4.8 million loan under the Paycheck Cash and Restricted Cash $8.1 Protection Program Provision of the CARES Act Net Contract Assets and Liabilities 10.6 • On October 16, 2020, applied for full forgiveness
Slide 9: Looking Ahead
Looking Ahead Douglas McCrosson President & Chief Executive Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 9
Slide 10: Near-Term Program Opportunities
Near-Term Program Opportunities AEROSTRUCTURES AEROSYSTEMS • Missile Structure – WON, • Intelligence, Surveillance & Announcement Pending Reconnaissance (ISR) Pods – Selected for Award – Contract • Repair of various helicopter expected Dec./Jan. structural assemblies – WON, Announcement • Electronic
Slide 11: Near-term Priorities
Near-term Priorities 1. Sharpened focus on liquidity • Compressing the cash cycle • Improving working capital management 2. Strengthened Balance Sheet • Apply increased operating cash flow to pay down approximately $2M debt in 2020 3. Margin Expansion • Expect ramping up newer defense programs will
Slide 12: Growth Drivers
Growth Drivers ($ in Millions) % of Backlog Key Estimated 3-Year Business 2018 Rev. at 6/30/20 Platforms Growth Outlook (2018-2021) Area (Restated) Aerostructures $35.1 26% A-10, F-16, UH-60 12% - 14% Aerosystems NGJ-MB, F-35, DB-110 $17.6 44% 22% - 26% UH-60, CH-53K Kitting/SCM E-2D, T-38 $17.7 30%
Slide 13: Q&A Session
Q&A Session Douglas McCrosson President & Chief Executive Officer Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 13
Slide 14: 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 14