Cpi Aerostructures, Inc. · AMEX:CVU
Cpi Aerostructures — FY2016 Earnings Presentation
22 slides from Cpi Aerostructures's earnings presentation, Mar 7, 2017
Slide 1: Q4 & FY 2016 Results Presentation
NYSE MKT: CVU A Premier Supplier of Aircraft Structures and Systems Q4 & FY 2016 Results Presentation March 7, 2017 Speakers: Douglas McCrosson, President & Chief Executive Officer Vincent Palazzolo, Chief Financial Officer
Slide 2: Disclosure Statement: Forward-Looking Statements
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 12/31/2016: $416.3 Million Defense Backlog at $321.7 Million, up ~16% Y/Y $321.7M $94.6M Defense Commercial Defense 77% / Commercial 23% $90 $190 $290 $390 $490 Q1 2014 Q1 2015 Q1 2016 Q4 2016 Backlog (Defense/Commercial ) Commercial Defense Total Backlog 1Q 2014 -
Slide 5: Driven By Renewed Strength in Defense Business
Driven By Renewed Strength in Defense Business Recent wins account for $ 254 million in backlog as of Dec. 31, 2016 Offers revenue visibility into 2022 and beyond 5 Contract Period 2013 – 2021 Contract Period 2016 – 2019 Contract Period 2015 – 2021 Contract Period 2014 – 2020 Contract Period 2015 –
Slide 6: Financial Highlights
6 Financial Highlights Vincent Palazzolo Chief Financial Officer
Slide 7: Recent Financial Highlights
Recent Financial Highlights 7 For the 3M Ended December 31 , For the year Ended December 31 , 201 6 201 5 201 6 201 5 (Unaudited) (Unaudited) Revenue $ 24,268,003 $ 31,590,790 $ 81,329,858 $ 100,202,557 Cost of sales 18,368,380 28,035,959 77,010,940 83,600,854 Gross profit 5,899,653 3,554,831 4,318,
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights 8 As of December 31, 2016 CEE (unbilled receivables) $ 99.6 Total Debt 32.6 Shareholders’ Equity 67.6 Book Value, per diluted share 7.74 Debt - to - Capital 0.48 ($ in Millions, except per share value) Liquidity • $40M, 3 - year senior debt facility − $10M term loan − $30M r
Slide 9: Updated 2017 Financial Guidance
Updated 2017 Financial Guidance 9 Revenue Pre - tax Income Effective Tax Rate • $82.5M – $87.0M • Award of certain defense programs offer possibility for upside • $8.1M - $8.5M • Approximately 37 %
Slide 10: 2017 Financial Levers
2017 Financial Levers 10 Inventory Reduction Productivity Overhead Expenses • 10% reduction on top of 10% reduction realized in 2016 • Higher revenue - per - employee given lower fixed cost base today relative to year - ago period • New strategic supply agreements are expected to yield savings in 20
Slide 11: Looking Ahead
11 Looking Ahead Douglas McCrosso n President & Chief Executive Officer
Slide 12: Bid Pipeline (3/3/2017)
Bid Pipeline (3/3/2017) 12 86% 14% Defense Commercial 9% 8% 35% 48% 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 Aerostructures • Military Helos: CH - 53K, V - 280 • Various regional airliner and bizjet aircraft • A - 10 thick skin urgent spares kitting (TUSK) • F - 35 • MRO: F - 16 service - life extension program (SLEP) • Various Black Hawk components/structural repairs A
Slide 14: Long-Term Visibility - Contracts
Long - Term Visibility - Contracts Potential to collectively generate revenue of $416.3M during their remaining periods of performance (as of 12/31/16) Firm, Funded Contracts Provide Long - Term Revenue Visibility and Operating Leverage TRIUMPH GROUP - Gulfstream G650 SIKORSKY – UH - 60 Black Hawk U
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 ict Q&A Session
Slide 17: Financial Appendix
CPL ict 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 $31,590,790 ($589,316) $31,001,474 Cost of sales 28,035,959 (3,589,316) 24,446,643 Gross profit 3,554,831 3,000,000 6,554,831 1,668,026 - 1,668,026 Income from operations 1,886,805 3,000,000 4,886,805 Interest
Slide 20: Adjusted Statement of Earnings
Adjusted Statement of Earnings 20 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 21: Adjusted Statement of Earnings
Adjusted Statement of Earnings 21 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 22: 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 [email protected] 22