CPI Aerostructures, Inc. (CVU) research, news, and more from GeoInvesting

Company description

Tue, 26 Feb 2013 05:00:00 GMT

CPI Aero is engaged in the contract production of structural aircraft parts for leading prime defense contractors, the U.S. Air Force, and other branches of the armed forces. CPI Aero also acts as a subcontractor to prime aircraft manufacturers in the production of commercial aircraft parts. In conjunction with its assembly operations, CPI Aero provides engineering, technical and program management services. Among the key programs that CPI Aero supplies are the E-2D Advanced Hawkeye surveillance aircraft, the A-10 Thunderbolt attack jet, the Gulfstream G650, the UH-60 BLACK HAWK helicopter, the S-92® helicopter, the MH-60S mine countermeasure helicopter, AH-1Z ZULU attack helicopter, the HondaJet-Advanced Light Jet, the MH-53 and CH-53 variant helicopters, the C-5A Galaxy cargo jet, the E-3 Sentry AWACS jet, the Embraer Phenom 300 light business jet and the New Cessna Citation X. CPI Aero is included in the Russell 2000® Index.

Research

Tue, 03 Mar 2026 15:30:07 GMT

Cpi Aerostructures, Inc. (NYSE:CVU) ($4.24; $55.9M market cap) announced $6 million in funded Airborne Pod orders from Raytheon, with a not-to-exceed ceiling of $12 million:

Received $6 million in funded orders for Airborne Pods from Raytheon’s Advanced Products & Solutions Strategic Business Unit.
Orders were issued with a not-to-exceed ceiling of $12 million.
Scope includes tool and fixturing design, procurement of complex parts, full pod assembly and integration, and required testing.

Management Commentary:

“Manufacturing airborne pods is now recognized as a core competency at CPI Aero, leveraging our expertise in structural assembly and integration, supply chain management, tool design and manufacturing engineering. This pod program, along with others awarded by Raytheon and other OEMs, demonstrates our customer’s continued trust in CPI Aero to deliver high quality products to exacting standards,” stated Dorith Hakim, President and CEO of CPI Aero.

Our Quick Take:

The CVU story is finally starting to get interesting. The company has historically had a huge backlog; however, most of this has been unfunded. The good news is that on February 3, 2026, Congress passed the FY2026 defense appropriations bill, providing $839 billion in direct Pentagon funding. When combined with the about $151 billion in defense reconciliation funds from the “One Big Beautiful Bill,” total FY2026 defense spending exceeds $1 trillion for the first time in history. This increase should improve CVU’s ability to convert its unfunded backlog into funded opportunities.

CPI Aerostructures, Inc. manufactures aircraft structural assemblies and integrated aerospace systems for commercial and defense aircraft, helicopters, and related aerospace and defense platforms.

Research

Tue, 14 Jan 2025 20:54:51 GMT

Cpi Aerostructures, Inc. (NYSE:CVU) ($4.99; $64.8M market cap) is back on our radar as the stock hits new 52 week highs. Even though CVU’s Q3 2024 EPS rose 200% to $0.06, the stock may not screen well because revenues have been down year over year. However, the company is focusing on higher margin revenues.

Kewaunee Scientific Corporation (NASDAQ:KEQU) was another company that did this, as pointed out in this tweet and elaborated on in this post, where KEQU was a main highlight because it exemplifies a textbook turnaround story that went from the company posting losses to delivering substantial earnings growth, all before most traditional “buy signals” were flashing.

CVU is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets.

Yesterday, CVUy announced a contract win from Raytheon Technologies for its next generation Jammer Mid-Band Program:

“CPI is delivering Next Generation Jammer-Mid Band Pods on or ahead of schedule. Raytheon has communicated how critical the need is for this capability, and we are proud to be meeting our commitment to Raytheon, the U.S. Navy, and the Warfighter,” stated Dorith Hakim, President and CEO of CPI Aero”

We feel that one of the company’s target markets, air security, is especially intriguing as the drone industry evolves. However, it currently appears that its focus is not on drones. We are further investigating this scenario.

We do still have to be mindful that the company has a history of over-promising and under-delivering, and on two separate occasions (2019 and 2020), there were some financial restatement issues that needed to be resolved.

We had one successful run with the company and another “go at it” that did not pan out as we had hoped. You can see our full history with CVU here.

Research

Thu, 22 Mar 2018 14:26:03 GMT

Cpi Aerostructures, Inc. (NYSE AMEX:CVU) ($8.20; $72.7M market cap), an aerospace and defense product company, reported Q4 2017 results:

Sales of $23.8 million vs $24.3 million in the prior year and slightly below analyst estimates of $24.1 million
EPS of $0.23 vs $0.24 in the prior year and slightly ahead of analyst estimates of $0.21
Guidance for fiscal 2018:
- Revenue in the range of $92.0 million to $96.0 million as compared to $81.3 million in the fiscal 2017 full year ended December 31, 2017; Analyst estimates are for $87.6 million
- Pre-tax income in the range of $9.1 to $9.6 million as compared to $8.5 million in fiscal 2017;
- Effective tax rate of 23% - 24%. (implies EPS of $0.80; analyst estimates are for $0.76)

Quotes from management:

“Fiscal 2017 was a turning point for CPI Aero during which we returned to annual profitability and positive operating cash flow while continuing to execute on our defense-market growth strategy. I am especially pleased to report pre-tax income at the upper range of our financial guidance and operating cash flow in excess of our expectations reflecting the benefits gained from an improved cost structure and leaner operations,” stated Douglas McCrosson, president and chief executive officer. See more here.

Looking for acquisition targets:

“Rather than wait for budgetary resolutions, we are actively exploring inorganic growth, targeting opportunities that will give us more defense content and ensure we are on a growth trajectory. As an example, the announced acquisition of WMI today further aligns us to long-term defense industry trends with unique capabilities and complimentary programs and customers.” See more here.

CVU was a two-time GeoBargain. We had one successful run with the Company and another that did not pan out as we had hoped. You can see our full history with CVU here. For now, we will remain on the sidelines to see if new contract awards or possible acquisitions can boost the expected growth rate of the Company. Management has had a history of overpromising and under delivering.

Research

Wed, 10 May 2017 15:13:04 GMT

CVU ($7.00) - Yesterday, we stated that we are placing ex-GeoBargain CVU back on our watchlist due to strong Q1 2017results and commentary. Here are some notes from the Company’s Q1 2017 conference call.

Gross margin in Q1 was 22.5%, the Company expects gross margins to remain in the 21 to 23% range for all of 2017.
Company believes the strength of balance sheet gives them the financial flexibility to pursue their growth objectives. This hopefully eliminates the possibility of a raise.
Expecting to hear about some prior bids, which has added to the Company’s upbeat outlook:
- “our more positive outlook is due to the recent signing of the 2017 Omnibus Appropriations Act that provides nearly $600 billion to fund the Department of Defense through September 30th of this year.”
- “We expect to hear soon on some bids that are the basis for a more positive outlook”

Stated they believe they will be in the middle to upper end on revenue guidance range and at upper end of pre tax income range.
- “So all told, we are still ahead of plan on a pretax income line, but some of it was a shift from the second and third quarters into the first quarter. But we feel pretty confident that that is going to continue through the remainder of the quarters, to end up on the high end of the pretax range. So I guess we're more bullish on the bottom line performance for the year and we're unwilling to go out and say that we're going to be at -- also at the high end or above the revenue range. But margins are improving and ultimately that's the thing that we're most focused on.”

A sequential decline in Q2 is possible due to the first quarter pulling some orders that would have filled in Q2 or Q3. Then, a likely build into Q3 and a stronger Q4

You can read the full transcript here.

Contract Awards

Mon, 03 Nov 2014 05:00:00 GMT

EDGEWOOD, NY--(Marketwired - Nov 3, 2014) - CPI Aerostructures, Inc. ("CPI Aero®") (NYSE MKT: CVU) has received a multi-year contract worth approximately $86.1 million from Northrop Grumman Corporation (NYSE: NOC) for Outer Wing Panel (OWP) kits. The kits are for use in the manufacture of complete wings for the E-2D Advanced Hawkeye and the C-2A Greyhound aircraft. This contract includes approximately $63.6 million in new funded backlog and approximately $22.5 million in requirements that were released to CPI Aero in 2013.
The E-2D Advanced Hawkeye is the U.S. Navy's primary airborne early warning and battle management command and control platform. The C-2 Greyhound's primary mission is to transport high-priority cargo, critical aircraft parts, mail and passengers to deployed Carrier Strike Groups.
CPI Aero has produced OWP kits for the E-2D Advanced Hawkeye and the C-2A Greyhound aircraft, which share a common wing design, since June 2008.
E-2D Advanced Hawkeye Requirements
On June 30, 2014, the Navy awarded Northrop Grumman a $3.6 billion multi-year contract to build 25 full rate production E-2D Advanced Hawkeyes. Aircraft deliveries under this new multi-year contract extend into 2021. The Navy's program of record calls for 75 E-2D Advanced Hawkeye aircraft of which Northrop Grumman has delivered 15.
C-2A Greyhound Requirements
Northrop Grumman is manufacturing new wings for the C-2A Greyhound aircraft to replace this service life limited component. This multi-year contract represents an additional $34.3 million in new requirements. The period of performance for the C-2A Greyhound portion of the contract concludes in late 2020.
Bart LaGrone, vice president, E-2/C-2 Programs, Northrop Grumman Aerospace Systems, commented, "The Northrop Grumman-led supplier team -- Team Hawkeye -- brings together the best in the industry, ensuring the continued success of the E-2D Advanced Hawkeye program. We've enjoyed an exceptional relationship with CPI Aero over the past six years. We congratulate them in earning a place on Team Hawkeye alongside Lockheed Martin, Rolls-Royce, BAE Systems and L-3 Communications."
Douglas McCrosson, President and CEO of CPI Aero, stated, "Securing a multi-year contract in the current fiscal environment requires exceptional program execution, superior product quality and the ability to provide the best value to our customer. We are excited to be able to continue as a key member of Northrop Grumman's Team Hawkeye."

Comments & Business Outlook

Thu, 07 Aug 2014 04:00:00 GMT

Second Quarer 2014 ResultsQ2 2014 sales of $20.9 million vs $21.1 million in the prior year

Q2 2014 non-GAAP EPS of $0.20 vs $0.21 in the prior year

Douglas J. McCrosson, CPI Aero's President & CEO, stated, "Adjusted results for the second quarter of 2014 were in line with our expectations and we are on track to achieve our guidance for 2014, excluding the nonrecurring A-10 WRP charge. Adjusted revenue for the three month and six month periods ended June 30, 2014 was approximately $21.0 million and $42.9 million respectively, compared to approximately $21.1 million and $41.0 million respectively, for the same periods in 2013. Adjusted earnings per share for the three month and six month periods ending June 30, 2014 were $0.20 per share and $0.41 per share, respectively, compared to $0.21 per share and $0.41 per share for the same periods in 2013. In our 2015 forecast we discounted the contribution of the A-10 WRP to revenue and net income. The expected growth in revenue and net income for 2015 will be largely driven by growth in our commercial product lines. As such, our 2015 guidance is unchanged and reaffirmed."

Mr. McCrosson continued, "The decision to take this non-cash charge now was a difficult one, but given the current set of facts, it is the correct one. It is our belief that we will end production on the A-10 WRP at between 55% and 60% of the original planned quantity. As a result, the investments we made in the past to improve efficiency and lower supply chain costs are no longer able to realize the expected return. Our negotiating leverage with our suppliers was impacted by the constant media reports predicting the aircraft's retirement. Additionally, future cost savings initiatives are no longer worth pursuing on a program with limited life and instead will now be deployed in support of our longer lived commercial programs. For example, we had planned to invest in automation for assembling parts with significantly reduced manual labor and were developing alternative supply chain strategies to drive down procurement costs. Finally, this program has incurred significant tooling and non-recurring engineering and other labor costs associated with achieving the required technical specifications and production rate at the targeted labor cost. These tooling and other nonrecurring costs will now be amortized over a significantly shorter program life."

Mr. McCrosson added, "Due to the loss incurred in the quarter ended June 30, 2014, we were not in compliance with net income financial covenant contained in our Credit Agreement with Santander Bank and Valley National Bank. On August 6, 2014, the Company entered in an amendment and waiver to the Credit Agreement which, among other things, provided for a waiver of the covenant. Going forward, we believe that CPI Aero has an opportunity to lower its estimated loss on the A-10 WRP, either by equitable adjustment to our contract with Boeing or by a Government termination for convenience and we will be exploring all avenues to reduce our loss. The GAAP loss recorded in the second quarter of 2014 will allow us to claim a 2015 tax refund of over $9 million from prior years' tax payments and is expected to yield a more than $5 million tax credit that will offset our anticipated tax liability in future years. In total, this adjustment we are making to the A-10 WRP will improve 2015 cash flow by more than $14 million."

Guidance:

For Full Year 2014
We expect that revenue will range between $83.5 million to $85.0 million on an adjusted basis.

For Full Year 2015

Production for existing programs and initial production for several new programs, including the recent $9 million Embraer order to manufacture engine inlet assemblies for the Phenom 300 business jet, are expected to ramp up in the coming months. Thus the 2015 guidance we provided during the 1Q14 earnings release remains unchanged. For 2015 we expect:

Revenue to be between $90.5 million and $94.0 million, the highest in our history. We project single-digit growth in military revenue and double-digit growth in commercial revenue in 2015 as compared to 2014. Our commercial programs are anticipated to continue to generate a higher percentage of total revenue, approximately 42%.
Gross profit margin to be higher than 2014, at a range of 22.0% to 23.5% mainly driven by higher production rates and lower unit costs, as several of our newer commercial programs are expected to mature into 2015.

Comments & Business Outlook

Thu, 08 May 2014 04:00:00 GMT

First Quarter 2014 Results

Revenue increased by 9.8% to $21,883,517, compared to $19,927,433;
Net income increased by 3.4% to $1,728,869, or $0.20 per diluted share, compared to $1,671,276, or $0.20 per diluted share.

Douglas J. McCrosson, CPI Aero’s President & CEO, stated, “As expected, the 9.8% increase in total revenue for 2014 first quarter, as compared to 2013 first quarter, was mainly due to a 30% increase in revenue from commercial subcontracts, to over $7.2 million. This was the result of higher production rates from our contracts with Cessna and Embraer, programs currently in production stage. Both revenue generated from military subcontracts and direct government contracts slightly increased to $14.2 million and $0.5 million, respectively.”

Discussing the outlook for 2015, Mr. McCrosson noted, “In 2015, we expect continued strength in production rates of our business jet programs, steady production on our more mature programs and new programs that combined are expected to produce the highest revenue in our history. Specifically, revenues are expected to be in the range of $90.5 million to $94.0 million. We project single digit growth in military revenue and double digit growth in commercial revenue in 2015 as compared to 2014. Our commercial programs are anticipated to continue to generate a higher percentage of total revenue, or approximately 40%. Gross profit margin is expected to be higher than 2014, at a range of 22.0% to 23.5% mainly driven by higher production rates and lower unit costs.”

Investor Presentations

Wed, 12 Mar 2014 04:00:00 GMT

Investor Presentation for Cpi Aerostructures

Comments & Business Outlook

Thu, 06 Mar 2014 05:00:00 GMT

Fourth Quarter 2013 Results

Revenue was $21,285,992, compared to $27,356,029 for the same quarter 2012.
EPS was $0.28 per diluted share, compared to $0.43 per diluted share for the same quarter 2012.

Douglas J. McCrosson, CPI Aero’s recently appointed President & CEO, stated, “In February of last year, we provided guidance that uncertainties related to the Government sequester would result in lower revenue and net income in 2013 as compared to 2012. It was our expectation at the time that revenue and net income would more closely resemble 2011 results rather than 2012 results. Today’s announced results are in line with our expectation. The decrease in total revenue for 2013 as compared to 2012 was due to lower revenue from prime government contracts and subcontracts, offset by slightly higher revenues generated from commercial subcontracts. Specifically:

Revenue generated from prime government contracts decreased to approximately $1.4 million. This decrease was expected as our largest prime contract with the Government, C-5 TOP, is virtually complete.
Revenue generated from government subcontracts decreased by 2.7% to approximately $54.9 million. The decrease was largely due to a marked decline in our military fixed wing business segment offset by slight increases in the remaining three military markets segments; helicopter, maintenance, repair and overhaul (MRO) and pod systems.
Revenue generated from commercial subcontracts slightly increased by 0.4% to approximately $26.8 million. The increase was largely due to growth in our business jet market segment, particularly in our programs with Cessna and Embraer that are both emerging from the development stage.”

Mr. McCrosson added, “As reported for the past two quarters, our gross margin for 2013 was affected primarily by adjustments to our long-term programs with Spirit, Northrop Grumman and Boeing. Additionally, in the 2013 fourth quarter we experienced technical challenges during the final assembly phase of the first pod system we are building for United Technologies Aerospace Systems. While such technical challenges are not uncommon during the first build of a highly complex system, the end result was the need for additional unplanned non-recurring expenditures for new tooling, engineering labor, and support labor costs that increased the estimated costs for this program. As a result, gross margin for the 2013 fourth quarter and year was 24.8% and 22.2%, respectively. The 2013 gross margin is 80 basis points lower than the low end of our 2013 gross margin guidance provided in our third quarter 2013 earnings release.”

Mr. McCrosson noted, “Our selling, general and administrative (“SG&A”) expenses continue to decrease as we have taken steps to improve the efficiency of our administrative processes. Our 2013 SG&A expenses as compared to 2012 decreased by approximately $600,000; as a percent of revenue SG&A expenses for 2013 decreased to 8.1% as compared to 8.2% in 2012. This was primarily due to a decrease in officers’ bonus, a decrease in accounting and legal fees, and a decrease in payroll taxes, partially offset by an increase in salaries as a result of increased headcount. Lower revenues and lower gross margins, although slightly offset by lower SG&A expenses, resulted in a decrease in net income for the 2013, as compared to 2012.”

Mr. McCrosson continued, “As expected, during 2013 we had greater product shipments than in 2012, or any other year, as many of our programs transitioned from development to the production stage. Increased shipments, combined with less spending for startup costs associated with new contracts and a decline in non-recurring expenses on our maturing programs, resulted in positive cash flow from operations of approximately $3.3 million.”

Discussing backlog and contract awards, Mr. McCrosson added, “Our total backlog at December 31, 2013 increased to $431.4 million as compared to $391.9 million at December 31, 2012. This increase was attributable to a $24.5 million increase in backlog on commercial programs and a $15.1 million increase in backlog for military programs. Funded backlog at December 31, 2013 increased to $110.4 million, from $52.3 million at December 31, 2012, which was the result of increases of funded backlog for both military and commercial programs. Specifically, at December 31, 2013 as compared to December 31, 2012, funded backlog for military programs increased by $39.6 million to $82.8 million and funded backlog for commercial programs increased by $18.5 million to $27.6 million.

“In 2013 we received record new business awards from all customers totaling approximately $122.3 million, which surpasses the previous record of $83.6 million established in 2011 and compares to $81.6 million in awards received in 2012. The 2013 total included approximately $96.0 million of government subcontract awards and approximately $26.3 million of commercial contract awards; $39 million of the new awards were received during the fourth quarter, the majority of which were related to follow-on orders for our A-10 and E-2D programs.”

Discussing expectations for 2014, Mr. McCrosson added, “At our November 2013 Investor Day presentation, we provided soft guidance that 2014 would be a return to top line growth over 2013 with revenue possibly reaching the 2012 results. While we did have some anticipated first quarter 2014 revenue move into fourth quarter 2013, we remain comfortable with this estimate. Since the beginning of 2014, many of our commercial programs are beginning to transition toward full production. As a result, product deliveries and customer billings are expected to surpass those of 2013, our best year ever in terms of product shipments. The effect of increased product shipments will be partially offset by investment in new programs in 2014 and therefore we are estimating cash flow from operations of approximately $1 million to $1.25 million.

“Our newer commercial programs such as the HondaJet, Cessna Citation X and Embraer Phenom 300 business jet programs are anticipated to generate a higher percentage of total revenue on a quarter-over-quarter and year-over-year comparison basis. We typically experience lower margins during the early stages of long-term programs and therefore, we expect this product mix to produce a gross profit margin for full year 2014 in the range of 20% to 21%. As marketing and sales forecasts for these commercial programs permit us to increase our estimate of production quantity our gross margins on these programs will typically improve, as these programs transition to production stage.

“Looking beyond this year to 2015, we see continued strength in production rates of our business jet programs, steady production on our more mature programs and new programs that combined could produce the highest revenue in our history. Likewise, as unit costs decrease with increased build rates, we expect gross margin in full year 2015 to be higher than in 2014. We expect to be in a position to offer more definitive guidance for 2014 and 2015 when we announce our first quarter 2014 earnings in May.”

Mr. McCrosson concluded, “Although 2013 was a difficult year for us, as it was for many of our peers, we believe that due to our large funded backlog and diversified and impressive list of customers for military and commercial programs, CPI Aero is well positioned to resume its growth in the coming years. We will continue to pursue new awards for military programs in addition to commercial programs, including other helicopter and business/private jet, as well as large commercial aircraft.”

Contract Awards

Mon, 06 Jan 2014 05:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (CPI Aero^®) (NYSE MKT: CVU) announced today that in 2013 it received record new business awards from all customers totaling approximately $122.3 million. This total surpasses the previous record of $83.6 million established in 2011 and compares to $81.6 million in awards received in 2012.

The 2013 amount includes an order received during the 4^th quarter that will be publicly announced pending final approval of the press release by the customer.

Edward J. Fred, CEO and President of CPI Aero stated, “We anticipated ending 2013 with a surge in new awards, particularly from our national security customers as the headwinds created by the defense budget and the sequester eased a bit. We ended 2013 with more than $39 million in new awards during the fourth quarter, the majority of which were related to follow-on orders for our A-10 and E-2D programs.”

Contract Awards

Mon, 30 Dec 2013 05:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT:CVU) today announced that it received a purchase order from Northrop Grumman Corporation (NYSE:NOC) to manufacture seats for full rate production, Lots 1 and 2, E-2D Advanced Hawkeye aircraft. This purchase order, valued at approximately $5 million, is a follow-on to one received in 2011. There are a total of five seats in three different designs in an E-2D aircraft; pilot, co-pilot and three crew members.

Contract Awards

Thu, 26 Dec 2013 05:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT:CVU) today announced that it has received a $10.59 million purchase order from Northrop Grumman Corporation (NYSE:NOC) for Outer Wing Panel (OWP) kits for E-2D Advanced Hawkeye, full rate production Lot 2 aircraft.

CPI Aero has produced OWP kits for the E-2D Advanced Hawkeye and C-2A Greyhound aircraft, which share a common wing design, since June 2008. CPI Aero has received orders for OWP kits totaling approximately $66.3 million.

This award was included in the previously announced total of $101.9 million in new business awards from all customers as of December 3, 2013.

13D and 13G Activity

Tue, 10 Dec 2013 05:00:00 GMT

13G filed by Ariel Investments, discloses a 10.1% stake.

Contract Awards

Tue, 03 Dec 2013 05:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. ("CPI Aero®") (NYSE MKT:CVU) today announced that it has received purchase orders totaling more than $15 million from the Boeing Defense, Space & Security unit of The Boeing Company ("Boeing") for assemblies for the A-10 aircraft. These represent follow-on orders for CPI Aero’s previously announced long-term requirements contract to support Boeing's A-10 Wing Replacement Program (WRP). The A-10 WRP multi-million dollar contract between Boeing and CPI Aero includes the production of a variety of structural assemblies for up to 242 enhanced wings. Including these orders, CPI Aero has received firm requirements for 167 ship sets for the A-10 WRP program.

Including these orders, year-to-date contract awards from all customers total to a record of approximately $101.9 million, compared to approximately $69.9 million through November 30, 2012. Of note, 2013 year-to-date total awards is approximately $18 million higher than the previous record of $83.6 million in new contract awards reported in calendar year 2011.

Comments & Business Outlook

Tue, 05 Nov 2013 05:00:00 GMT

Third Quarter 2013 Results

Revenue was $20,664,645 compared to $21,340,831;
Net income was $1,911,100 or $0.23 per diluted share, compared to $2,795,437 or $0.33 per diluted share.

“2013 has been a solid year for new business from both the military and commercial segments. New contract awards as of October 31, 2013 from all customers were approximately $83.1 million, as compared to approximately $64.1 million in new contract awards for the same period in 2012. We expect additional contracts to be released before year-end.”

Discussing expectations for full year 2013, Mr. Fred added, “As previously announced, we expect revenue and earnings to be lower than 2012 and more similar to those of 2011. Commercial programs should generate a larger percentage of our total 2013 revenue as compared to 2012. Additionally, we expect product shipments to be greater than in 2012, or any other year, as many of our programs have transitioned from development to production. Increased shipments, combined with less spending for startup costs associated with new contracts and a decline in non-recurring expenses on our maturing programs, will result in positive cash flow from operations of approximately $3 million.”

Mr. Fred concluded, “Based on our large funded backlog for military and commercial programs and several large orders expected to be awarded before 2013 year-end, we believe that CPI Aero is well positioned to grow in 2014. We will continue to take steps to further diversify our customer base by focusing our efforts on bidding on new commercial programs, including other helicopter and business/private jet programs, as well as large commercial aircraft programs.”

Comments & Business Outlook

Thu, 08 Aug 2013 04:00:00 GMT

Second Quarter 2013 Results

Revenue was $21,110,452 compared to $20,854,627
Net income was $1,784,276 or $0.21 per diluted share, compared to $2,696,019 or $0.36 per diluted share.

Edward J. Fred, CPI Aero’s President & CEO, stated, “2013 second quarter and first half results were in line with our expectations. Our revenue for both reporting periods slightly increased, as compared to the same periods of 2012; however, as we previously reported, we expect our revenue for the full year to decline from 2012’s full year revenue.”

Mr. Fred concluded, “Over the last several years, we have taken steps to further diversify our business and we have focused our new business efforts on larger and more complex contract awards, especially for commercial programs, including contracts for large commercial aircraft parts. We expect several of these contracts to be awarded to us in the coming months and we believe that we are well positioned to resume our growth in 2014.”

GeoBargain Notes

Fri, 28 Jun 2013 04:00:00 GMT

EMAIL note, ex Geo Bargain CVU is back on our radar again, CVU was one of our first Geo Bargains. We coded CVU as a Geo Bargain on ?? date, right on the doorsteps of the 2009 global recession. the stock eventually reached a high of ?? on ?? date. We eventually removed the stock from the Geo Bargain list on ?? date when it became apparent that the company’s operation was being negatively impacted by reduced contract flow by its customers due to a certainty over how policies and enacted to address the fiscal cliff would effect the government’s spending on aerospace defense programs. Well, shares of CVU have quitly been rising from their recent lows as its customers presumably now have a better handle of the fallout from the governments sequestration. Here is a quote from the company “Now that sequestration has become a reality and the Company and our customers have more definite information regarding certain key defense programs, we expect new orders for military aircraft to accelerate in the coming months. We expect to have a solid year for new business from both the military and commercial segments.” Also backlog is still strong and increasing. although 2013 EPS is expected to fall 40% to $1(similar to what the company earned in 2011), growth is expected to resume in 2014. Analysts currently expect 2014 sales to grow around 20% to 90million and EPS to grow about 30% to $1.25. we think the market will soon start to value the company on 2014 numbers and that shares could soon trade at a PE multiple of 15 on 2013 EPS estimates of $1 ($15 per share). Management has also stated that it expects to soon be cash flow positive addressing a concern many investors have had for some time. Manny listen to conference call, discuss with Maj, Manny link June 18 ^thseeking alpha article

Comments & Business Outlook

Tue, 07 May 2013 04:00:00 GMT

First Quarter 2013 Results

Revenue increased to $19,927,433 as compared to $19,721,095;
Net income decreased to $1,671,276, or $0.20 per diluted share as compared to $1,919,320, or $0.27 per diluted share.

Edward J. Fred, CPI Aero’s President & CEO, stated, “First quarter 2013 results were in line with our expectations. First quarter revenue generated from government subcontracts increased by 14% to approximately $14.1 million and revenue generated from commercial subcontracts increased by 2.5% to approximately $5.6 million. As anticipated, revenue generated from prime government contracts decreased to approximately $0.2 million, as we have transitioned away from being a government prime contractor.”

Mr. Fred added, “2013 first quarter gross margin was affected by adjustments to our long-term programs with Spirit and Boeing. The adjustment for the Spirit program was the result of price reductions given as part of the agreement to increase the program value and extend its life until 2019, while the Boeing adjustment was due to negotiations for program changes. We still expect our gross margin for the 2013 full year to be within our projected range of 25%-27%.”

Mr. Fred added, “Contract price reductions and other adjustments, although slightly offset by lower SG&A expenses, resulted in an approximately 12.9% decrease in net income in the first quarter of 2013 as compared to first quarter of 2012, however these results were in line with our expectations. Our operating cash flow, although negative in the first quarter, was also in line with expectations. We have lowered our accounts payable and accrued expenses by $5.6 million since December 31, 2012 and as the year progresses, we expect that the lowered level of these current liabilities will lead to positive cash flow, as we had projected at the end of 2012.”

Discussing new contract awards, Mr. Fred noted, “The federal budget sequester has resulted in delayed contract decisions by many prime contractors in the aerospace and defense sector, including our customers. As of March 31, 2013, we received approximately $11.5 million of new contract awards, which included approximately $4.5 million of government subcontract awards and approximately $7.0 million of commercial subcontract awards, compared to a total of $31.7 million of new contract awards, of all types, in the same period last year. This decrease was anticipated and was already reflected in our financial performance expectations for 2013. Now that sequestration has become a reality and the Company and our customers have more definite information regarding certain key defense programs, we expect new orders for military aircraft to accelerate in the coming months. We expect to have a solid year for new business from both the military and commercial segments.”

Mr. Fred added, “Our total backlog at March 31, 2013 increased by $28.4 million to approximately $420.3 million as compared to approximately $391.9 million at December 31, 2012. This increase was attributable to a $42.3 million increase in backlog on commercial programs, offset by a $13.9 million decrease in backlog for military programs. Funded backlog increased to $81.9 million, at March 31, 2013 from $52.3 million at December 31, 2012, which was predominately the result of a $31.8 million increase in funded backlog on commercial programs.”

Mr. Fred added, “As previously announced, our business was impacted by sequestration and military budget cuts. For 2013 we continue to expect:

Revenue and earnings to be lower than 2012 and more similar to those of 2011.
Commercial programs to generate a larger percentage of our overall revenue as compared to 2012.
Product shipments to be greater than in 2012, or any other year, as many of our programs have transitioned from development to production.
Increased shipments, combined with less spending for startup costs associated with new contracts and a decline in non-recurring expenses on our maturing programs, to result in positive cash flow from operations of approximately $3 million.”

Mr. Fred concluded, “We are well positioned to resume growth in 2014 and beyond. Our new business opportunities remain strong, and we are bidding on larger and more complex contracts, including contracts for large commercial aircraft parts.”

Contract Awards

Mon, 11 Feb 2013 05:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: CVU) today announced that on December 20, 2012 it received an $11.45 million purchase order from Northrop Grumman Corporation (NYSE:NOC) for Outer Wing Panel (OWP) kits. The kits are for use in the manufacture of complete wings for the C-2A Greyhound, a high-wing carrier on-board delivery (COD) aircraft used by the Navy. Designed to land on aircraft carriers, this monoplane cargo aircraft provides critical logistics support to carrier strike groups.

CPI Aero has produced OWP kits for the E-2D Advanced Hawkeye and the C-2A Greyhound aircrafts since June 2008. The E-2D and C-2A share a common wing design. CPI Aero has received firm orders and advanced funding for OWP kits totaling approximately $58 million.

This order was included in the previously reported total contract awards of approximately $81.6 million, received from all customers in 2012.

Fiscal Cliff

Fri, 09 Nov 2012 05:00:00 GMT

Need clarity on defense cuts

Contract Awards

Wed, 07 Nov 2012 05:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (CPI Aero^®) (NYSE MKT: CVU) announced today that it has been awarded a contract by Cessna Aircraft Company (“Cessna”), a subsidiary of Textron Inc. (NYSE: TXT), to supply structural assemblies, predominately wing spars, for Cessna’s flagship aircraft, the newly-relaunched Cessna Citation X. CPI Aero estimates the value of the contract, over a seven year period, to be approximately $41 million. The intial delivery order is for approximately $5 million.

CPI Aero will be manufacturing eleven different structural assemblies, including nine spar assemblies. A wing spar is the primary structural component running the length of the wing. The longest spar assembly for the new Citation X is more than 29 feet long. CPI Aero will begin work immediately and will commence deliveries in the first half of 2013.

Originally introduced into service in 1996 as the Citation X, the new Citation X was first announced at the National Business Aviation Association convention in 2010. The X prototype made its first flight in January of this year. Federal Aviation Administration type certification is anticipated in mid-2013 with first aircraft deliveries to customers planned for the second half of 2013. The new Citation X features the same supercritical wing as the Citation X, which together with its high bypass ratio Rolls Royce engines establishes the new Citation X as the fastest operational civilian jet in the world.

Edward J. Fred, CPI Aero’s CEO & President stated “We are very proud that Cessna, the world’s leading manufacturer of General Aviation aircraft, has selected CPI Aero to provide critical assemblies for its new Citation X program. We have been a supplier to Textron Inc. through its Bell Helicopter subsidiary; however, this is our first contract from Cessna and we are excited to build upon our successes at Bell. Cessna becomes the third new commercial aerospace customer announced in the past eighteen months and justifies our strategy to target opportunities on long-lived civilian aircraft programs.”

Contract Awards

Tue, 11 Sep 2012 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: CVU) announced today that it has received a long term agreement from Sikorsky Aircraft Corp. to manufacture gunner window assemblies for the BLACK HAWK helicopter for a period of five years.

The windows are of two-piece construction located just behind the pilot seat on each side of the aircraft. They slide open for use by the machine gun operator. Deliveries are expected to commence in 2013 and end in 2018.

More than 3,000 BLACK HAWK helicopters are in use today, operating in 29 countries. Designed to stringent U.S. military standards, the BLACK HAWK helicopter has become the leader in multi-mission-type aircraft. Among the mission configurations it serves are troop transport, medical evacuation, electronic warfare, attack, assault support and special operations.

Including this new award, total new business from all customers in 2012, through September 10, is $63.8 million, compared to $61.7 million through September 10, 2011.

Contract Awards

Wed, 29 Aug 2012 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: CVU) has received a $9.6 million modification to a previously announced purchase order from Northrop Grumman Corporation (NYSE:NOC) authorizing the start of production of additional Outer Wing Panel (OWP) kits. The kits are for use in the manufacture of complete wings for the E-2D Advanced Hawkeye. This modification supports the E-2D program full-rate production lot 1.

This modification provides new E-2D Advanced Hawkeye funding for CPI Aero. CPI Aero has been producing OWP kits for the E-2D and the C-2A aircraft since June 2008. CPI Aero has received firm orders and advanced funding for OWP kits totaling approximately $46.3 million

Comments & Business Outlook

Tue, 07 Aug 2012 04:00:00 GMT

Second Quarter 2012 Results

Revenue increased 19.7% to $20,854,627 from $17,426,223;
Gross margin was 27.7% compared to 24.4%;
Pre-tax income increased 92.1% to $4,024,019 compared to $2,094,816; and,
Net income increased 71.6% to $2,696,019 or $0.36 per diluted share, compared to $1,570,816, or $0.22 per diluted share.

“We have continued to receive large contract awards from existing and new customers. As of August 3, 2012, we have been awarded approximately $44.6 million in new contracts most of which are government subcontract awards. Included in this amount are a $12.7 million purchase order from Boeing for assemblies on the A-10 aircraft and a $10.7 million order from Goodrich Corporation for structural aerospace assemblies. In the same period last year, we received $58.6 million of new contract awards.”

He continued, “Additionally, we have approximately $980 million in formalized bids outstanding, and we continue to make bids on contracts on a weekly basis. As previously announced, unawarded solicitations include two bids totaling approximately $647 million to an international aerospace company for work on the Boeing 787.”

Mr. Fred went on to say, “Our record first half results were in line with expectations. We are projecting a much better second half, as well, and a particularly strong fourth quarter, as our newest contracts begin to generate revenue and income. We are reaffirming our 2012 guidance which calls for: revenue to be in the range of $95 million to $98 million; gross margin in the range of 25%-27%; and net income in the range of $12 million to $13 million.

“When we announced our 2012 first quarter results in May, we noted that our 2012 guidance has factored in the current defense budget environment and reflects the cuts mandated by the Budget Control Act of 2011. It remains unclear whether sequestration will take effect in January 2013 and what the impact of even deeper cuts in defense spending will have on CPI Aero’s existing and projected defense contracts. As a result, we continue to believe it prudent to refrain from providing 2013 guidance until the federal budget situation becomes sufficiently defined. We expect to announce our 2013 guidance later on this year, aligning the timing with guidance announcements from our industry peers.”

Mr. Fred concluded, “Finally, to support our continued growth, in June and July 2012 we raised approximately $13.5 million through a public offering, which gave us greater financial flexibility. We used $4 million of the net proceeds to repay a portion our revolver and as of June 30, 2012, we have credit lines in place with a combined borrowing capacity of $22.5 million.”

Contract Awards

Wed, 25 Jul 2012 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (CPI Aero^®) (NYSE MKT: CVU) has been awarded a $1 million contract by Northrop Grumman Corporation (NYSE:NOC) to manufacture pod structural housings for the Airborne Laser Mine Detection System (ALMDS).

In April 2012, the U.S. Navy issued a contract modification to Northrop Grumman to begin low rate initial production (LRIP) Lot 4. CPI Aero will manufacture a total of four pod structural housings under this new contract, with deliveries scheduled to commence in mid-2013.

To date, CPI Aero has delivered 10 ALMDS pod structural housings for LRIP Lots 1 through 3. Northrop Grumman’s ALMDS is part of the mine countermeasure mission package on the U.S. Navy’s new Littoral Combat Ship and is designed for rapid wide-area reconnaissance and assessment of anti-ship mines in coastal waters, harbors, confined straits, choke points and amphibious assault areas where aircraft carriers and expeditionary strike groups must operate. The ALMDS uses pulsed laser light and streak tube receivers housed in an external equipment pod on the MH-60S helicopter. The pod structural housings to be built by CPI Aero are pressurized and thermally conditioned structural assemblies that contain the ALMDS laser and electronics.

Contract Awards

Thu, 31 May 2012 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: CVU) announced today that Northrop Grumman Corporation (NYSE:NOC) authorized the start of production of additional Outer Wing Panel (OWP) kits for use in the manufacture of complete wings for the E-2D Advanced Hawkeye. CPI Aero received a new purchase order to support the E-2D Program Low Rate Initial Production (LRIP) Lot 2. An additional award was received to provide advanced procurement authorization and to start work for long-lead material to support of E-2D Full Rate Production (FRP) Lot 1.

CPI Aero received a total of $3.4 million in new funding related to the E-2D Advanced Hawkeye program and has been producing OWP kits for the E-2D and the C-2A aircraft since June 2008. CPI Aero has received firm orders and advanced funding for OWP kits totaling approximately $37 million.

Contract Awards

Thu, 17 May 2012 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero^®”) (NYSE MKT: CVU) today announced that it was awarded a $1 million contract by Northrop Grumman Aerospace Systems (“NGAS”) to manufacture pod structural housings for the Airborne Laser Mine Detection System (“ALMDS”). In February 2012, NGAS announced its first direct commercial sale of four ALMDS to the Japan Maritime Self-Defense Force to help protect its coastline and the daily maritime traffic coming in and out of Japan's ports. The pod structures produced by CPI Aero will be used to support this export sale to Japan. CPI Aero will commence work immediately on this new contract and make deliveries to NGAS from mid-2013 through early 2014.

CPI Aero has produced ten pod structural assemblies for NGAS to support Low Rate Initial Production (LRIP) of ALMDS. Northrop’s ALMDS is part of the mine countermeasure (MCM) mission package on the U.S. Navy’s new Littoral Combat Ship and is designed for rapid wide-area reconnaissance and assessment of anti-ship mines in coastal waters, harbors, confined straits, choke points and amphibious assault areas where aircraft carriers and expeditionary strike groups must operate. The ALMDS uses pulsed laser light and streak tube receivers housed in an external equipment pod on the MH-60 helicopter. The pod structural housings to be built by CPI Aero are pressurized and thermally conditioned structural assemblies that contain the ALMDS laser and electronics.

Comments & Business Outlook

Tue, 08 May 2012 04:00:00 GMT

First Quarter 2012 Results

evenue increased 23.2% to $19,721,095 from $16,009,608;
Gross margin was 25.2%, compared to 24.0%;
Selling, General and Administrative (S, G & A) expenses as a percentage of revenue were 10.7%, compared to 11.2%;
Pre-tax income increased 34.7% to $2,710,320, compared to $2,012,050; and,
Net income increased 40.3% to $1,919,320, or $0.27 per diluted share, compared to $1,368,050, or $0.19 per share.

Edward J. Fred, CPI Aero’s President & CEO, stated, “The first quarter 23.2% increase in revenue was accompanied by an improvement in gross margin and lower S, G & A expenses as a percentage of revenue, resulting in a 40.3% increase in net income as compared to the first quarter of 2011.”

Mr. Fred continued, “Contributing to the top line growth was a 190.5% increase in revenue generated from commercial contracts (accounting for approximately 28% of total revenue) and a 41.6% increase in revenue generated from prime government contracts (accounting for approximately 10% of total revenue). There was a slight decrease in revenue generated from government subcontracts (accounting for approximately 62% of total revenue). Work performed on our three major subcontract awards: NGC E-2D program, the Gulfstream G650 program and Boeing A-10 program accounted for 32%, 20% and 15% of 2012 first quarter revenue, respectively.”

Mr. Fred added, “Thus far this year, we continued to receive large contract awards from existing and new customers. As of May 4, 2012, we received a total of $32.2 million of new contract awards, which included approximately $31.4 million of government subcontract awards, approximately $0.6 million of commercial subcontract awards and approximately $0.2 million of government prime contract awards compared to a total of approximately $47 million of new contract awards, of all types, in the same period last year.”

Mr. Fred added, “It is important to note that nearly a third of the value of the year-to-date total awards were from two new customers: Goodrich Corporation and Embraer. We look forward to additional orders as we have approximately $952 million in unawarded solicitations on which we have bid. Unawarded solicitations include two bids totaling approximately $647 million to an international aerospace company for work on the Boeing 787. To be consistent with the way in which we have historically reported unawarded solicitations, we felt that these bids should be in the total; however we also believe that the large increase in bids outstanding needed to be explained.”

Mr. Fred went on to say, “We are reaffirming our 2012 guidance which calls for revenue to be in the range of $95 million to $98 million, primarily due to continued work on our three major long-term programs. With gross margin in the range of 25%-27%, we anticipate net income in the range of $12 million to $13 million. Our first quarter results were in line with our expectations. We are projecting the balance of 2012 to have a similar quarterly performance profile as 2011, with a strong second half and a particularly strong fourth quarter as our newest contracts begin to generate revenue and income. Our 2012 guidance has factored in the current defense budget environment and reflects the cuts mandated by the Budget Control Act of 2011. However, it is still unclear whether or not sequestration will take effect in January 2013 and what the impact of even deeper cuts in defense spending will have on CPI Aero’s existing and projected defense contracts. Therefore, we believe it is imprudent to provide financial projections for 2013 until the second half of 2012 when we anticipate the federal budget situation will be more sufficiently defined. We believe that timing of the guidance to the latter part of the year also more closely aligns ourselves with our industry peers.”

Mr. Fred concluded, “Finally, to support our expected growth in new orders, customers, programs and of course, revenue and profits over the coming years, we have amended and increased our credit lines to a combined borrowing capacity of $22.5 million. Additionally, we have increased our work force to 165 people, and we are conducting our operations at our new, three times larger, 171,000 sq. ft. facility where we relocated in mid-December 2011.”

Contract Awards

Tue, 01 May 2012 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE Amex: CVU) announced today that Embraer S.A. (NYSE: ERJ; BM&FBOVESPA: EMBR3), headquartered in São José dos Campos, Brazil, has awarded a long term supply agreement to CPI Aero to manufacture engine inlet assemblies for the Embraer Phenom 300 business jets. CPI Aero estimates that this contract has a potential value in excess of $40 million over the life of the Phenom’s production program. The first assemblies produced by CPI Aero are expected to be delivered in the first quarter of 2013.

Edward J. Fred, President and CEO of CPI Aero stated, “We are extremely excited to begin a relationship with Embraer, one of the world’s premier aircraft manufacturers which provides products for Defense, Commercial and Business aerospace markets. This is our first contract with a non-U.S. based customer and sets yet another milestone on CPI Aero’s path to becoming an aerostructures manufacturer with global reach. We look forward to demonstrating our capabilities on the Phenom program and to earning Embraer’s continued business on this platform and others.”

Deal Flow

Tue, 01 May 2012 04:00:00 GMT

CVU files to sell 817,167 shares of common stock for holders.

Deal Flow

Mon, 12 Mar 2012 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero”) (NYSE Amex: CVU) announced today that it has entered into an eighth amendment to its credit agreement with Sovereign Bank, N.A., providing CPI Aero with an additional term loan in the principal amount of $4,500,000 to be amortized over five years. The term loan is for the purpose of purchasing tooling and equipment. Further information concerning the amendment can be found in CPI Aero’s Current Report on Form 8-K filed on March 12, 2012.

Comments & Business Outlook

Wed, 07 Mar 2012 05:00:00 GMT

Fourth Quarter 2011 Results

Revenue increased to $24,092,200 from $7,464,546;
Gross margin was 27%, compared to a negative margin of 45%;
Pre-tax income was $3,901,020, compared to pre-tax loss of $4,758,536; and,
Net income was $2,673,020, or $0.37 per diluted share, compared to net loss of $2,965,536, or $0.44 per share.

Edward J. Fred, CPI Aero’s President & CEO, stated, “Our 2011 fourth quarter was the best quarter in CPI Aero’s history in terms of revenue and net income. For the year as a whole, the 68.5% increase in revenue was primarily the result of work performed on our three major subcontract awards won in 2008: the Gulfstream G650 program, Boeing A-10 program and NGC E-2D program which accounted for 11%, 30% and 26% of our 2011 revenue, respectively. In 2011 revenue generated from prime government contracts increased by 51% to approximately $6.7 million; revenue generated from government subcontracts increased by 79% to approximately $57 million primarily the result of the A-10 and E-2D programs; and, revenue generated from commercial contracts increased by 35% to approximately $10.2 million due to higher production rates on the G650 aircraft.”

Mr. Fred added, “Gross margin for 2011 returned to a more normal level, and was within our expected range of 24%-25%. Selling, general and administrative expenses decreased to 10.7% of revenue from 2010’s 12.3% despite one-time expenses related to moving to our new facility, as well as higher overhead costs.”

Mr. Fred added, “As we reported, in 2011, we received $83.6 million of new contract awards including approximately $47.1 million of commercial contract awards, approximately $24.8 million of government subcontract awards and approximately $11.7 million of government prime contract awards. Approximately $24 million of the year-over-year gain in new contracts were attributable to additional government subcontract awards.”

Mr. Fred added, “We started 2012 on a strong note with year-to-date contract awards totaling $28.1 million, as compared to $22.3 million in the same period of last year. Importantly, last month we received a purchase order from a new customer, Goodrich Corporation and for the first time, CPI Aero will have the authority to design modifications to the structure it is manufacturing. We look forward to additional orders as we have approximately $282 million in unawarded solicitations on which we have bid.”

Mr. Fred concluded, “Finally, to support our expected growth in new orders, customers, programs and of course, revenue and profits over the coming years, in November 2011 we increased our line of credit with Sovereign Bank to $18 million. In addition, in mid-December we completed the relocation to the 171,000 sq. ft. facility, which is nearly three times the size of our former location.

Comments & Business Outlook

Tue, 21 Feb 2012 05:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. ("CPI Aero®") (NYSE Amex:CVU) today announced that it has received a purchase order from Goodrich Corporation (“Goodrich”) for the supply of aerospace structural assemblies. Work will begin immediately with first delivery scheduled for second quarter of 2013. All deliveries will occur prior to the end of 2013. This is the first contract awarded to CPI Aero by Goodrich. In addition, for the first time, CPI Aero will have design authority for design modifications to the structure it is manufacturing. CPI Aero will utilize GKN Aerospace’s Engineering Development Center in Nashville, TN for the design and structural analysis portion of this program. The structural assemblies will be manufactured entirely by CPI Aero within its new, state-of-the-art production facility.

Including this new award, total new business from all customers in 2012 is $27.4 million, compared to $22.3 million for the first two months of 2011.

Investor Presentations

Fri, 20 Jan 2012 05:00:00 GMT

The GeoTeam listened to the replay of Cpi Aerostructure's (CVU) presentation at the Noble Financial Equity Conference that took place on January 17, 2012. Recall that we added the stock to our GeoBargain list at $4.00 per share on February 4, 2009. Yesterday we mentioned that we added to our position based on this call and believe the company’s growth is about to punch into second gear. The Stock is selling at 8 times 2012 EPS estimates of $1.59. That implies 54% growth and less than 2 times its book value per share of $7.39.

Key points from the call

Tremendous long term visibility.
2012 off to a good start.
2011 guidance of revenue of approximately $74 million and net income of $7.4 million to $7.5 million are still intact. Direct quote from presentation:

“I would not be standing here talking to you if I didn’t think we were going to hit our numbers to be released in the next few weeks."

2012 Guidance is still intact. (Implied EPS range of $1.69 to $1.83, which is higher than analyst estimates of $1.59)
2012 Does not include
- contracts the company is still bidding on
- any uptick to government spending
- the possible expansion of existing contracts to include add on orders.

Comments & Business Outlook

Wed, 04 Jan 2012 05:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. ("CPI Aero®") (NYSE Amex:CVU) today announced that it has received its first new business award for 2012, a purchase order valued at $12.7 million from the Boeing Defense, Space & Security unit of The Boeing Company ("Boeing") for assemblies for the A-10 aircraft. This represents a follow-on order for CPI Aero’s previously announced long-term requirements contract to support Boeing's A-10 Wing Replacement Program (WRP). The A-10 WRP contract between Boeing and CPI Aero is worth up to approximately $84 million for the production of a variety of structural assemblies for up to 242 enhanced wings. To date, CPI Aero has received firm requirements for 117 ship sets at a value of approximately $47.3 million for the A-10 WRP program.

In addition, CPI Aero announced that new business awards from all customers for the year ended December 31, 2011 was approximately $83.6 million compared to $61.7 million for all of 2010.

Research

Wed, 07 Dec 2011 05:00:00 GMT

GeoBargin CVU shares opened down sharply today, possibly on the Pentagon's proposed additional defense cutting measures. One program stated was the F-35 Joint Strike Fighter Program, we have confirmed that CVU has no exposure to this program. Although we can not assume that other aerospace defense programs will be potentially exposed to budget cut discussions. We believe todays drop in CVU share price regarding this news is unwarranted and may represent a short term trading opportunity from current levels of about $0.50 to $0.80

Comments & Business Outlook

Tue, 08 Nov 2011 05:00:00 GMT

Third Quarter 2011 Results

Revenue increased 28% to $16,607,638 from $12,976,084;
Gross margin was 25.1% as compared to 26.1%;
Pre-tax income increased 17% to $2,531,042, compared to $2,171,363; and,
Net income increased 26% to $1,805,042, or $0.25 per diluted share, compared to $1,429,363, or $0.21 per diluted share.

As expected, 2011 third quarter revenue increased by only 28% with the big surge in revenue to come in the fourth quarter. As we are now well into the fourth quarter, we can say with added confidence that the fourth quarter of 2011 will be the highest revenue quarter in CPI Aero’s history by a significant margin.

Comments & Business Outlook

Mon, 31 Oct 2011 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. ("CPI Aero®") (NYSE Amex:CVU) today announced that it has received authorization from Spirit AeroSystems, Inc. (“Spirit”) (NYSE SPR) for work on wing leading edge assemblies for business jet aircraft that extend CPI Aero’s backlog through September 2013. In March 2008, Spirit and CPI Aero entered into a long term agreement to provide Spirit with leading edges for the wing of the business jet. Spirit designs and manufactures the entire wing for this business jet customer.

The total 2011 year-to-date awards for CPI Aero from all customers is $81.5 million, compared to $57.7 million for the same period of 2010 and $61.7 million for all of 2010.

Deal Flow

Fri, 02 Sep 2011 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero”) (NYSE Amex: CVU) announced today that it has entered into a sixth amendment to its credit agreement with Sovereign Bank, providing CPI Aero with a $3,000,000 increase in its existing revolving credit facility for an aggregate of $13,000,000 of borrowing availability until November 30, 2011.

Comments & Business Outlook

Tue, 09 Aug 2011 04:00:00 GMT

Second Quarter 2011 vs. 2010

Revenue increased 38.9% to $17,426,223 from $12,544,625;
Gross margin was 24.4% compared to 26.7%;
Pre-tax income increased 14.7% to $2,094,816 compared to $1,826,254; and,
Net income increased 30.3% to $1,570,816 or $0.22 per diluted share, compared to $1,205,254, or $0.18 per diluted share.

Edward J. Fred, CPI Aero’s President & CEO, stated, “The current second quarter and six month periods were our best ever reporting periods in terms of revenue and net income. The increase in revenue is primarily the result of work performed for the Boeing Company on the A-10 attack jet and Northrop Grumman Corporation on the E-2D surveillance airplane. Revenue for these two programs accounted for approximately 74% of government subcontracting revenue and approximately 58% of total revenue for first half of 2011.”

He continued, “As was the case in the first quarter of 2011, our gross margin in the second quarter was slightly below our targeted gross margin range of 25%-27%. This was primarily due to the lower gross margin for the C-5 TOP order received in the first quarter of 2011, as well as travel and labor required for supplier surveillance on the early stage of production for our three major programs: the A-10 attack jet, the E-2D surveillance airplane and the Gulfstream G650 aircraft. Additionally, because of the continued development of new suppliers, and the new contracts won in the first half of 2011, these costs should remain in effect through year-end, resulting in a gross margin range of 24%-25% for second half of 2011.”

Mr. Fred added, “As of June 30, 2011, new contract awards totaled $58.6 million, which included approximately $8.8 million of government prime contract awards, approximately $19.9 million of government subcontract awards and approximately $29.9 million of commercial subcontract awards, compared to a total of $31.1 million of new contract awards, of all types, in the same period last year, and $61.7 million for all of 2010.”

Mr. Fred went on to say, “Lastly, because some anticipated contract awards have been delayed by a customer, we are providing revised guidance for both revenue and net income. The net income reduction will also take into account the additional cost to relocate the Company to the larger facility, which was obviously not anticipated when we issued the original guidance. Therefore, we now project that 2011 revenue will be approximately $74 million, with a resulting net income in the range of $7.4 million to $7.5 million.

“However, because of this award delay that pushes revenue into 2012, and the strong year we have had to date in receiving new orders, we are pleased to be able to raise 2012 guidance to the following: we expect that revenue should be in the range of $95 million to $98 million, with a resulting net income in the range of $12 million to $13 million.”

He concluded, “As a final piece of the guidance discussion, we expect third quarter revenue for 2011 to be the lowest revenue quarter of the year, while the fourth quarter will be the highest revenue quarter in CPI Aero’s history, and by a significant margin. While we don’t typically issue quarterly guidance, we feel it is important to point out the revenue level expectations for these quarters, as the revenue timing is somewhat different than it has been historically. This is simply due to the timing of deliveries, and the requirement to purchase materials to coincide with these delivery schedules.”

Deal Flow

Mon, 25 Jul 2011 04:00:00 GMT

Files S-3 form. Please see link.

Contract Awards

Wed, 06 Jul 2011 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. ("CPI Aero®") (NYSE Amex:CVU) today announced that it has received purchase orders from Spirit AeroSystems, Inc. ("Spirit") for wing leading edge assemblies for the Gulfstream G650 aircraft that extend CPI Aero’s backlog through July 2012. In March 2008, Spirit and CPI Aero entered into a long term agreement to provide Spirit with leading edges for the wing of the Gulfstream G650 business jet. Spirit designs and manufactures the G650 wing for Gulfstream Aerospace Corporation.

Edward J. Fred, CPI Aero's CEO and President, stated, "We are proud of our performance on this program and are excited about these follow on orders. As we continue to demonstrate our assembly capabilities to Spirit, we hope to be considered for additional opportunities for assemblies on this platform."

This award brings the total new year-to-date awards for CPI Aero from all customers to $54.7 million, compared to $9.5 million for the same period of 2010 and $61.7 million for all of 2010.

Comments & Business Outlook

Fri, 01 Jul 2011 04:00:00 GMT

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero”) (NYSE Amex: CVU) announced today that on June 30, 2011 it entered into a lease agreement, with Heartland Boys II L.P. for the premises located at 91 Heartland Boulevard, Edgewood, New York, directly across the street from CPI Aero’s current location. The approximate 171,000 square foot building will be used as the Company’s assembly facility, principal offices and corporate headquarters. CPI Aero intends to move all of its operations presently at 60 Heartland Boulevard, Edgewood, New York to the new facility by December 31, 2011. The term of the new lease commences on July 1, 2011 and expires on April 30, 2022.

Commenting Edward J. Fred, CPI Aero’s President & CEO, stated, “Our planned move into premises that are nearly three times the size of our current location is indicative of our expectations for continued growth in orders, customers, programs and of course revenue and profits over the coming years. Since the landlord of both properties is the same, our old lease has been amended and we no longer pay rent at the 60 Heartland Boulevard location, although we have use of it through year end as well as of the the new location immediately. We were able to negotiate attractive rental terms for the new location and we are pleased that it will cause no dislocation to our employees.”

Comments & Business Outlook

Wed, 04 May 2011 04:00:00 GMT

First Quarter Results:

Revenue increased 45% to $16,009,608 from $11,005,529;
Gross margin was 24%, compared to 25%;
Pretax income increased 54% to $2,012,050, compared to $1,303,815;
Net income increased 59% to $1,368,050, or $0.19 per diluted share, compared to $860,815, or $0.14 per diluted share

Edward J. Fred, CPI Aero’s President & CEO, stated, "We started 2011 on a strong note with revenue and net income increasing by 45% and 59%, respectively, compared to the first quarter of 2010. In addition, revenue for the three months ended March 31, 2011 made the current quarter our best ever quarter in terms of revenue. The increase in revenue is primarily due to work performed for the Boeing Company on the A-10 attack jet and for Northrop Grumman Corporation on the E-2D surveillance airplane."

Mr. Fred concluded, "We are once again confirming our 2011 guidance which calls for revenue to be in the range of $78 million to $81 million, a 77% to 84% increase over 2010, primarily due to increased work on our three major long-term programs: A-10, E-2D and G650. Net income for 2011 is expected to be in the range of $9.2 million to $9.5 million. Our gross margin for the year should be in the range of 25% to 27%. In addition, we continue to expect that for 2012, revenue should be in the range of $88 million to $91 million, with resulting net income of between $11 million and $12 million."

Comments & Business Outlook

Wed, 09 Mar 2011 05:00:00 GMT

Fourth Quarter Highlights:

Revenue was $7,464,546 from $12,729,858
Gross margin was (45%), compared to 30% in last year’s fourth quarter;
Pre-tax loss was $4,758,535, compared to pre-tax income of $2,240,661; and,
Net loss was $2,965,535, or $0.44 per diluted share, compared to net income of $1,559,661, or $0.25 per diluted share.

Edward J. Fred, CPI Aero’s CEO & President, stated, "As previously announced, the termination of the T-38 program one release year earlier than expected, resulted in a revenue adjustment based on a change in estimate for the fourth quarter and the year. This non-cash adjustment is a GAAP change in estimate, and conforms to the procedures used for the percentage of completion method ("POC") of accounting.

"The adjustments that we made for the T-38 program and two other contracts subject to early termination/completion that are accounted for in a similar manner, eliminate the possibility of similar revenue adjustments on these ongoing contracts in future years.

"Without the impact of the above adjustment, we would have slightly exceeded our 2010 guidance of revenue in the range of $49 million to $51 million and net income in the range of $4.6 million to $4.8 million."

Mr. Fred concluded, "Our 3-year, compounded annual growth rate guidance for revenue in the range of 30% to 35%, and for net income in the range of 50% to 60% - provided by CPI Aero in 2008, remains intact. We remain confident that we will achieve our 2011 guidance which calls for revenue to be in the range of $78 million to $81 million, a 77% to 84% increase over 2010, primarily due to increased work on our three major long-term programs: A-10, E-2D and G650. Net income for 2011 is expected to be in the range of $9.2 million to $9.5 million. Our gross margin for the year should be in the range of 25% to 27%. In addition, we estimate that for 2012, revenue should be in the range of $88 million to $91 million, with resulting net income of between $11 million and $12 million."

Comments & Business Outlook

Tue, 10 Aug 2010 04:00:00 GMT

Second Quarter 2010 vs. 2009

Revenue increased 10% to $12,544,625 from $11,437,691;
Gross margin was 26.7% compared to 24.8%;
Pre-tax income increased 31% to $1,826,254, compared to $1,389,489; and,
Net income increased 33% to $1,205,254 or $0.18 per diluted share, compared to $903,489, or $0.14 per diluted share. Diluted earnings per share were calculated on 8.7% more shares in 2010 second quarter vs. 2009 second quarter.

Reaffirms Long-Term Guidance

Mr. Fred added, “We are again reaffirming our long-term guidance which is based on our expectation that our three major long-term production programs (A-10, E-2D and G650) will be in full scale production and producing consistent significant revenue during 2011. For 2011 we expect that revenue will be in the range of $78 million to $81 million, with resulting net income in the range of $8.9 million to $9.5 million. Using 2008 as the baseline, we expect a three-year compound annual growth rate for revenue in the range of 30% to 35%, with a resulting compound annual growth rate for net income in the range of 50% to 60%.”

“Based on results for the first half of the year and expectations for a strong second half, we are confident that we will reach our 2010 guidance which calls for revenue to be in the range of $48 million to $51 million, with resulting net income in the range of $4.3 million to $4.8 million.”

Raises $3.5 Million through Registered Direct Offering

Mr. Fred concluded, “As previously announced, in the second quarter of 2010 we completed a registered direct offering raising $3.5 million in net proceeds through the sale of 500,000 shares of our common stock. As a result, we strengthened our financial position in preparation for continued growth and enhanced the potential liquidity of our stock.”

Comments & Business Outlook

Tue, 23 Mar 2010 04:00:00 GMT

2008 Year end comments:

“As previously reported, our 2009 new contract awards approximated $23.4 million. Of this amount, approximately $10.6 million, $6.9 million and $5.8 million were government prime contract awards, government subcontract awards and commercial subcontract awards, respectively. Although this total was well below contract awards for 2008, orders in the fourth quarter of 2009 were significantly higher compared to the previous quarters of the year. From the start of the year through March 15, 2010 we have received a total of $3.6 million in new contracts, compared to $2.5 million in the same period last year. We look forward to additional new orders from existing contracts as well as from the unawarded solicitations of approximately $270 million that we have bid on as of March 15, 2010.”

Mr. Fred concluded, “As previously announced, based on the visibility we currently have, we project that 2010:

Revenue will be in the range of $48 million to $51 million,
Net income in the range of $4.3 million to $4.8 million.

It is our expectation that our three major long-term production programs (A-10, E-2D and G650) will be in full scale production and producing consistent significant revenue during 2011, and we therefore project that 2011:

Revenue will be in the range of $78 million to $81 million,
Net income in the range of $8.9 million to $9.5 million.

Additionally, using 2008 as the baseline, our 2011 guidance affirms our expectations for a three-year compound annual growth rate for revenue in the range of 30% to 35%, with a resulting compound annual growth rate for net income in the range of 50% to 60%.”

Source: Business Wire (March 23, 2010)

GeoBargain Notes

Tue, 16 Feb 2010 05:00:00 GMT

See New GeoWire Article.

Investor Presentations

Fri, 12 Feb 2010 05:00:00 GMT

See Cpi Aerostructures February 2010 investor presentation.

GeoBargain Notes

Fri, 15 Jan 2010 05:00:00 GMT

In 2009, The GeoTeam® alerted investors to hidden clues for a handful of stocks via related notes and articles.

Merrimac Industries Inc (NYSE Amex:MRM) was mentioned in a note posted December 13, 2008. The company subsequently got acquired six days after our call that the company was on the sell block.
After an article on November 12, 2009, China Armco Metals (OTCBB:CNAM) subsequently had a run of 31% gains since the mention.
Since mentions of Hong Kong Highpower Tech (NASDAQ:HPJ) and Amcon Distributing (NYSE Amex:DIT) in a November 2, 2009 article, at their highs since the article, the stocks had gains of 264% and 29%, respectively.

In line with this theme, we believe three clues hint that Cpi Aerostructures (NYSE Amex:CVU) could report a pretty significant 2009 fourth quarter.

1. Throughout 2009 Cpi has issued guidance, calling for net income of $3.9 million to $4.3 million and revenue of $42 million to $45 million. Using midpoint figures and the company's 2009 nine month financial results, the guidance implies earnings per share will increase 80.0% to $0.27. Sales would also rise 35.9% to $12.5 million.

2. In conference calls, the company has repeatedly stressed that if it believed it could not meet its guidance it would relay a message to Wall Street. Well, it is the beginning of the new year and management has not issued such a message, strengthening our confidence that the fourth quarter will be strong.

3. Yesterday, a press release was issued stating that fourth quarter order flow had intensified.

What we don't possess is specific information on the company's 2010 forecast to be provided in conjunction with the 2009 year end results. We generally prefer investing in companies that are capable of achieving consistent 30% EPS growth, so we will eagerly await the 2010 guidance. That being said, Cpi has offered additional clues indicating 2010 will be a year of growth:

1. In its 2008 fourth quarter financial release Cpi offered insight into its long-term growth goals in sales and net income growth:

"Using 2008 as the baseline, for the three-year period ending in 2011, we expect to achieve a compound annual growth rate for revenue in the range of 30% to 35%, with a resulting compound annual growth rate for net income in the range of 50% to 60%.”

2. The company offered broad bullish commentary regarding 2010 prospects:

“We expect 2010 to be another year of growth and we plan to issue our guidance when we announce results for the 2009 fourth quarter and year.”

The GeoTeam® had hoped the company could have been slightly more specific.

3. Per its third quarter financial report:

"Unawarded solicitations remain at a high level with open solicitations totaling a maximum realizable value of approximately $393 million."

If the company can confirm 2010 EPS growth of at least 30%, CVU may offer a compelling opportunity for both growth and value investors. The stock is trading at a P/E of 9.83 on 2009 an analyst EPS estimate of $0.66 and near its book value per share of $5.92.

Investors also have to be cognizant of some risks:

There may be a tendency for CVU to report lumpy quarters at times, a situation we are hoping will change as the company grows.
On September 17, 2009 CVU filed an S-3, enabling the company to raise $10 million. This could be dilutive or accretive, depending on use of proceeds (although the company has expressed that accretive acquisitions are part of its overall strategy).

Comments & Business Outlook

Thu, 10 Dec 2009 05:00:00 GMT

Based upon the year-to-date results and our expectations for the fourth quarter, we confirm that we will achieve our 2009 guidance, which calls for revenue in the range of $42 million to $45 million, and net income of between $3.9 million to $4.3 million. We are fully cognizant of the fourth quarter results that are required to meet these targets, and with approximately seven weeks left in our fiscal year, we are confident of our ability to achieve these results.”

Source: Business Wire (November 10, 2009)

Potential Valuation Scenarios

Mon, 17 Aug 2009 04:00:00 GMT

Valuation Scenarios

Added to GeoBargain List on February 4, 2009. ($5.00).

Data Inputs:

Fiscal Year Ends in December
2008 EPS: $.42

Date	03/27/09	08/14/09
Price	$6.65	$7.40
12 Months Trailing EPS	$0.42	$0.52
Implied Midpoint 2009 EPS Based on Company Guidance	$0.68	$0.66
Future EPS Growth Rate Based on Company Guidance	61.9%	57.1%
Trailing P/E Ratio	15.83	14.23
PEG Ratio (P/E divided by growth rate)	0.26	0.23

Short-Term Valuation Scenarios

Date	03/27/09	08/14/09
Price Based on P/E of 25 on Four Quarters Trailing EPS	$10.50	$13.00
Price Based on P/E of 20 on Four Quarters Trailing EPS	$8.40	$10.40
Price Based on Implied 2009 EPS Company Guidance	$10.20	$9.90

Long-Term (12 Months Forward) Valuation Scenarios

Date	03/27/09	08/14/09
Price Based on P/E of 25 on Implied 2009 EPS Company Guidance	$17.00	$16.50
Price Based on P/E of 20 on Implied 2009 EPS Company Guidance	$13.60	$13.20

Peg Ratio Analysis - Common rule of thumb that PEG ratio should be less than 1.0

PEG Ratio Less than 1?

YES

These scenarios are not investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.

Comments & Business Outlook

Mon, 17 Aug 2009 04:00:00 GMT

With the orders we now have in hand and their delivery schedules, we are on track to achieve our 2009 guidance, which calls for revenue in the range of $42 million to $45 million, resulting in net income of between $3.9 million to $4.3 million. Additionally, we still have bids out on approximately $390 million in unawarded solicitations.”

FULL YEAR 2009 Guidance Ending December ^a

	Full Year 2009 Guidance	Full Year 2008 Reported	Period Change
GAAP Revenue	$42.0 to $45.0 million	$28.0 million	50.0% to 60.7%
GAAP Net Income	$3.9 to $4.3 million	$2.5 million	56.0% to 72%
GAAP EPS ^b	$0.62 to $0.69	$0.42	47.0% to 64.3%

Source: See Release, August 11, 2009

^aThe above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b CPI Aerostructures did not provide EPS guidance. The GeoTeam® calculated an implied EPS figure using the current outstanding share count of 6,250,021.

Financials

Mon, 17 Aug 2009 04:00:00 GMT

2nd QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED JUNE

	2nd Quarter 2009	2nd Quarter 2008	Period Change
GAAP Revenue	$11.4 million	$9.1 million	25.3%
GAAP EPS	$0.14	$0.06	133.3%
Fully Diluted Shares	6,250,021	6,246,953	00.00%

Source: See Release
__________________________________________________________________________

1st QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED MARCH

	1st Quarter 2009	1st Quarter 2008	Period Change
GAAP Revenue	$9.69 million	$7.79 million	25.39%
GAAP EPS	$0.09	$0.07	28.57%
Fully Diluted Shares	6,152,609	6,181,752	00.00%

Source: See Release

FULL YEAR 2008 vs. 2007 FINANCIAL SNAPSHOT ENDED DECEMBER

	Full Year 2008	Full Year 2007	Period Change
GAAP Revenue	$35.59 million	$27.96 million	27.29%
GAAP EPS	$0.42	$0.32	31.25%
Fully Diluted Shares	6,203,789	6,028,480	2.91%

Source: See Release

Research

Tue, 04 Aug 2009 04:00:00 GMT

New article available for Cpi Aerostructres

Investor Presentations

Thu, 30 Jul 2009 04:00:00 GMT

July Investor presentation available for Cpi Aerostructures.

Highlights:

1. On track to achieve 2009 guidance
2. Long term visibility
3. $360 million in award solicitations
4. Management expects margins to significantly improve

Investor Presentations

Mon, 06 Jul 2009 04:00:00 GMT

June 3, 2009 investor presentation.

Conference Call Notes

Tue, 12 May 2009 04:00:00 GMT

Cpi Aerostructures shares have been under selling pressure today. The company reported 2009 first quarter results this morning. EPS was $.09, up nearly 30% from the same period last year.

Investors seem to be focusing on two parts of the release:

Due to lower margins, EPS was sequentially down from 2008 fourth quarter EPS of $0.15.
New orders totaled $4.5 million compared to $10.7 million, causing some investors to possibly question previous financial guidance information.

The company clearly addressed both of these issues in their conference call.

Reduced margins were the result of "additional costs incurred in the early stages of new programs related to customer changes to engineering and design requirements." This is not an uncommon situation for Cpi Aerostructures. The company was very specific in confirming that margins will improve to historical levels as they progress through 2009.
The company made it very clear that, their previously issued financial guidance does not give much weight to new order bookings. It mainly reflects long-term contracts that the company has already won, giving them a high degree of visibility for the next three years. Also, their are significant outstanding orders available for bids ( $360 million).

The company was very adamant that, as it currently stands, their previous guidance is still in tact.

One more note: The company stated they intend to aggressively pursue investor awareness activities.

The GeoTeam® suggests that current and prospective investors listen to the conference call replay. In the opinion of the GeoTeam®, the call was very bullish. The GeoTeam® added to its long position on the stock's pull back.

Financials

Tue, 12 May 2009 04:00:00 GMT

1st QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED MARCH

	1st Quarter 2009	1st Quarter 2008	Period Change
GAAP Revenue	$9.69 million	$7.79 million	25.39%
GAAP EPS	$0.09	$0.07	28.57%
Fully Diluted Shares	6,152,609	6,181,752	00.00%

Source: See Release

FULL YEAR 2008 vs. 2007 FINANCIAL SNAPSHOT ENDED DECEMBER

	Full Year 2008	Full Year 2007	Period Change
GAAP Revenue	$35.59 million	$27.96 million	27.29%
GAAP EPS	$0.42	$0.32	31.25%
Fully Diluted Shares	6,203,789	6,028,480	2.91%

Source: See Release

Potential Valuation Scenarios

Sun, 29 Mar 2009 04:00:00 GMT

Valuation Scenario Update:

Data Inputs: (As of March 27, 2009)

Price	$6.65
Trailing EPS	$0.42
2009 EPS based on company guidance	$0.68
Future EPS growth based on 2009 guidance	61.90%
Trailing P/E Ratio	15.83
PEG Ratio (P/E divided by growth rate)	0.26

Short Term Scenarios

Price Based on P/E of 25 on four quarters trailing EPS	$10.50
Price Based on P/E of 20 on four quarters trailing EPS	$8.4
Price Based on P/E of 15 on 2009 EPS guidance	$10.2

Long Term (12 Months Forward) Scenario

Price Based on P/E of 25 on 2009 EPS guidance	$17.00
Price Based on P/E of 20 on 2009 EPS guidance	$13.6

Peg Ratio Analysis (Aggressive): Common rule of thumb that the P/E should equal the future EPS growth rate:

PEG Ratio less than 1?	Yes
Price Based on Current Price/PEG	$25.58

These scenarios are not intended to be investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions

Financials

Wed, 25 Mar 2009 04:00:00 GMT

Fourth Quarter 2008 Financial Table Update

	4th Quarter 2008	4th Quarter 2007	Period Change
GAAP Revenue	$9.24 million	$7.77 million	18.92%
GAAP EPS	$0.15	$0.09	66.67%

Full Year 2008 Financial Table Update

	Full Year 2008	Full Year 2007	Period Change
GAAP Revenue	$35.59 million	$ 27.96 million	27.29%
GAAP EPS	$0.42	$0.32	31.25%

Research

Mon, 23 Mar 2009 04:00:00 GMT

The GeoTeam® attended the CVU investor presentation via a web cast. The company remains very bullish regarding its growth opportunities and reaffirmed its previous guidance. Furthermore, the company implied that there is upside potential to their forward guidance, as it was conservative in its "contract win" assumptions. The GeoTeam® has added to its position in CVU.

Potential Valuation Scenarios

Sat, 14 Feb 2009 05:00:00 GMT

Valuation Scenarios:

Data Inputs: (As of February 12, 2009)

Price	$4.96
Trailing EPS	$0.36
2009 EPS based on company guidance	$0.68
Future EPS growth based on 2009 guidance	57.69%
Trailing P/E Ratio	13.88
PEG Ratio (P/E divided by growth rate)	0.24

Short Term Scenarios

Price Based on P/E of 25 on four quarters trailing EPS	$9.00
Price Based onP/E of 20 on four quarters trailing EPS	$7.20
Price Based on P/E of 15 on 2009 EPS guidance	$10.2

Long Term (12 Months Forward) Scenario

Price Based onP/E of 25 on 2009 EPS guidance	$17.00
Price Based on P/E of 20 on 2009 EPS guidance	$13.6

Peg Ratio Analysis (Aggressive): Common rule of thumb that the P/E should equal the future EPS growth rate:

PEG Ratio less than 1?	Yes
Price Based on Current Price/PEG	$19.88

Financials

Sat, 14 Feb 2009 05:00:00 GMT

Third Quarter Financial Results Ended September

3rd Quarter 2008 3rd Quarter 2007 Period Change

GAAP Revenue $ 9.43 million $ 7.26 million 29.89%

GAAP EPS $0.14 $0.09 55.56%

Source: Business Wire (November 10, 2008)

Research

Tue, 06 Jan 2009 05:00:00 GMT

New Geo feature: The GeoTeam™ does not limit its research to just Asia. We will also be including some commentary on stocks based in the United States.

Considering a company in the defense sector in the face of an Obama administration may seem unwise. However, the the GeoTeam® believes that there are reasons to take a closer look at CVU.

It might be possible that the Obama administration poses opportunities to the company. There is reason to speculate that the administration will opt to use more of its defense budget for repair and maintenance rather than new equipment purchases. A good deal of CVU's business addresses repair and maintenance issues.

Competitive Advantage

CVU qualifies as a ‘‘small business’’ in connection with U.S. government contract awards, allowing them to compete for military awards set aside for companies with this small business status.

CVU also can pursue smaller contracts that larger firms tend to ignore.

CVU Revenue Opportunities: Prime Contractor vs. Subcontractor

As a prime contractor the company bids directly on projects. When acting as a prime contractor the company's exposure to larger projects is limited because of its size and the fact that it may have to compete against larger firms.

As a subcontractor CVU receives orders from larger prime contractors such as Northrop Grumman Corporation and Lockheed Martin Corporation. By acting as a subcontractor the company can gain access to parts of larger projects that it would not be able to obtain as a prime contractor.

CVU has been increasing its efforts to grow its subcontractor business which is becoming a significant piece of their growth picture. As of the end of 2007, government subcontracted business comprised 30% of the CVU's revenue, leaving more room for growth.

CVU has also been increasing its penetration into the commercial market, typically a very small portion of their business. Even with a slowing economy these efforts can pay off as they have little to lose and much to gain.

What does it is all mean?

"By increasing our customer base, we have positioned our company to take advantage of additional market opportunities and reduce the impact of the slowdown in government contract awards and releases."

Notable bullish company commentary from the Third Quarter Press Release and SEC Filings

"We are on track to achieve the best revenue year in our history of approximately $35 million, a 25% increase over 2007, and net income of approximately $2.6 million, a year-over-year increase of 37%.”

As of October 31, 2008, total year-to-date awards amounted to $51.5 million, compared to $18.9 million for the same period last year, a 172% increase.

Year-to-date contract awards have already surpassed 2007 total awards of $37.7 million.

Growth At a Glimpse:

Third quarter EPS grew 55% to $0.14 .

The company issued 2009 guidance. The midpoint net income guidance for 2009 is $4.1 million, which implies EPS of $.68 .

The company states that it is on track to achieve a three year annual EPS compounded growth rate of 50% to 60%.

The stock is selling at a P/E of only 16 on trailing EPS and an 8 P/E on the implied 2009 EPS guidance.

Established a position

Sources:

Business Wire (November 10, 2008)
Sec Form 10Q ( September 2008)
Sec Form 10K (December 2007)

Comments & Business Outlook

Tue, 06 Jan 2009 05:00:00 GMT

Guidance Update:

Mr. Fred continued, "We are able to reaffirm our 2009 guidance which calls for revenue to be in the range of $42 million to $45 million, with resulting net income in the range of $3.9 million to $4.3 million. Additionally, using 2008 as the baseline, for the three-year period ending in 2011, we expect to achieve a compounded annual growth rate for revenue in the range of 30% to 35%, with a resulting compounded annual growth rate for net income in the range of 50% to 60%."

Source: Business Wire (November 4, 2008)

	3rd Quarter 2008	3rd Quarter 2007	Period Change
GAAP Revenue	$ 9.43 million	$ 7.26 million	29.89%
GAAP EPS	$0.14	$0.09	55.56%