Wed, Nov 13, 10:39 PM (237 days ago)
CPI Aerostructures, Inc. (CVU) reported a decline in revenue for Q3 2024, totaling $19.42 million, down 4.8% year-over-year, primarily due to decreased contributions from key military contracts. Year-to-date revenue also fell 5.8% to $59.31 million. Gross profit for Q3 increased to $4.22 million, reflecting a gross margin of 21.7%, up from 18.2% due to cost reductions in procurement and other expenses. However, net income rose significantly to $749.68 thousand, a 148.8% increase compared to the previous year, driven by lower interest expenses and improved operational efficiency. CPI's cash position decreased to $1.71 million from $5.09 million at year-end 2023, influenced by operational cash outflows and debt repayments. The company maintains a total backlog of $506.02 million, with 96% attributed to government contracts. Recent amendments to credit facilities extend maturity dates and adjust loan limits, enhancing liquidity and financial flexibility. Despite these challenges, CPI's operational outlook remains stable, with ongoing efforts to optimize contracts and manage cash flow effectively.