CPI Aerostructures Inc. Announces $53.5 Million Multi-Year Contract for F-16 Wing Components from the Defense Logistics Agency
Nov 17 14
CPI Aerostructures Inc. announced that it has received a U.S. Government prime contract from the Defense Logistics Agency (DLA) to provide structural wing components and logistical support for global F-16 aircraft maintenance, repair and overhaul (MRO) operations. DLA Aviation, Richmond, VA is the contracting activity. CPI Aero will support wing MRO efforts for both the U.S. fleet of more than 1,000 F-16 aircraft as well as the nearly 1,900 F-16s flown by air forces around the world. The term of the contract is for a period of 5 years, with a single option for an additional 3-year period. The Company estimates the value of the contract, including options, to be approximately $53.5 million. Under this Firm Fixed Price, Indefinite Delivery Indefinite Quantity contract, CPI Aero will be the single supplier of 439 structural wing parts used to maintain, repair and overhaul the F-16 aircraft. This is an integrated support contract that includes parts acquisition, stocking, and order fulfillment, as well as technical data management, configuration control, supply chain management, forecasting and inventory management. CPI Aero will also provide engineering support services for obsolescence management and diminishing manufacturing source challenges. CPI Aero will establish and manage an inventory distribution site within the F-16 Wing Shop at the Ogden Air Logistics Center in Ogden, UT where it will maintain stock and fulfill requirements for the MRO operations of the U.S. fleet of F-16s. CPI Aero will stock the inventory needed to support the world wide F-16 fleet requirements at its Edgewood, NY location. CPI Aero will subcontract Lockheed Martin, the Original Equipment Manufacturer (OEM) of the F-16 aircraft, for program technical support. This new contract is expected to improve parts availability, decrease wing repair leadtime, and increase F-16 mission readiness.
CPI Aerostructures Inc. Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Revises Earnings Guidance for the Year 2015
Nov 4 14
CPI Aerostructures Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported revenue of $21,487,677 compared to $20,664,645; pre-tax income was $2,602,547 and net income was $1,697,547 or $0.20 per diluted share, compared to $1,911,100 or $0.23 per diluted share. Income from operations was $2,670,426 against $2,967,471 a year ago. Income before provision for income taxes was $2,602,547 against $2,772,100 a year ago. Third quarter 2014 revenue increased 4% driven mainly by increased production activity on the Embraer Phenom 300 engine inlet assembly and the Cessna Citation X+ wing spars. Cash flow from operations was $1.76 million.
For the nine-month period, the company reported revenue of $19,619,571 compared to $61,702,530; pre-tax income was to $7,777,650 compared to $10,759,775; and net loss was $26,926,534 or $3.18 per diluted share compared to net income of $5,366,650 or $0.63 per diluted share. Loss from operations was $39,425,300 against income from operations of $8,270,093 a year ago. Loss before provision for income taxes was $39,795,534 against income before provision for income taxes of $7,777,650 a year ago.
The company is increasing the top line guidance to $92.0 million to $102.0 million, from the previously announced guidance of $90.5 million to $94.0 million. Likewise gross profit margin will be reduced from the previous range. Therefore, for full year 2015, the company now expects gross margin to be in the range of 19.0% to 21.0%, revised from 22% to 23.5%. Net income is expected to be in the range of $7.2 million to $8.0 million. Finally, as a result of the second quarter 2014 charge for the A-10 WRP, it expects a positive cash flow impact of between $13 million and $15 million in 2015 through the recovery of previously paid income taxes and the use of tax loss carry forwards. This is in addition to any positive cash flow from operations.
CPI Aerostructures Inc. Wins $86 Million Multi year Contract For Wing Kits From Northrop Grumman
Nov 3 14
CPI Aerostructures Inc. has received a multi-year contract worth approximately $86.1 million from Northrop Grumman Corporation 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.