EX-99.1 2 ex99-1.htm SLIDE PRESENTATION, DATED AUGUST 7, 2019

CPI AEROSTRUCTURES, INC. 8-K

Exhibit 99.1

Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 1 Click to edit Master title style Expertise in Aerospace Technologies Expertise in Aerospace Technologies 2019 Q2 Results Presentation Speakers: Douglas McCrosson, President & Chief Executive Officer Vincent Palazzolo, Chief Financial Officer August 7, 2019 NYSE American : CVU

2 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 2 Forward - Looking Statements This presentation contains forward - looking statements that involve risks and uncertainties . All statements, other than statements of historical fact, included in this presentation, including without limitation, statements regarding projections, future financing needs, and statements regarding future plans and objectives of the Company, are forward - looking statements . Words such as "believes," "expects," "anticipates," "intends," "plans," "estimates" and similar expressions are intended to identify forward - looking statements . These forward - looking statements are based upon the current expectations of management and certain assumptions that are subject to risks and uncertainties . Accordingly, there can be no assurance that such risks and uncertainties will not affect the accuracy of the forward - looking statements contained herein or that our actual results will not differ materially from the results anticipated in such forward - looking statements . Such factors include, but are not limited to, the following : the cyclicality of the aerospace market, the level of U . S . defense spending, production rates for commercial and military aircraft programs, competitive pricing pressures, start - up costs for new programs, technology and product development risks and uncertainties, product performance, increasing consolidation of customers and suppliers in the aerospace industry, the ability to manage growth and integrate acquired operations and costs resulting from changes to and compliance with applicable regulatory requirements . The information contained in this presentation is qualified in its entirety by cautionary statements and risk factors disclosed in the Company's Securities and Exchange Commission filings, including CPI Aero's Form 10 - K for the year ended December 31 , 2018 , and Form 10 - Q for the three - month period ended March 31 , 2019 available at http : //www . sec . gov . We caution readers not to place undue reliance on any forward - looking statements, which speak only as of the date hereof and for which the Company assumes no obligation to update or revise the forward - looking statements herein . CPI AERO is a registered trademark of CPI Aerostructures, Inc . All other trademarks referenced herein are the property of their respective owners . Disclosure Statements

Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 3 3 Recent Highlights Douglas McCrosso n President & Chief Executive Officer

Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 4 4 Recent Highlights 1. T - 38C IDIQ 2. Solid Second Quarter Results 3. Strong Bookings • Revenue up ~14% • Gross profit up ~8% • Net income up ~116%* • Consolidated: 1.7:1; WMI: 1.9:1 • Consolidated product sales backlog of $153.2 million, up 14 % sequentially and 30% YTD • WMI stand - alone backlog up 17% sequentially to $20.3 million. • $65.7 million award • Second - largest prime contract with the DoD in the Company’s history, largest since 2004 4. Key New Programs On - Plan • Unnamed Sikorsky helicopter – multiple shipsets • Missile wing – 2 shipsets delivered to support flight test • F - 16V – entered tooling phase with production phase anticipated in Q4; international demand strong and building *Net income for the second quarter of 2019 includes a tax benefit of approximately $1.0 million due to the reversal of a portion of the approximately $3.1 million liability that was recorded at December 31, 2018 for an uncertain tax position related to a federal income tax audit.

5 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 5 Backlog Consolidated Backlog at 06/30/2019: $447.6 Million Defense Backlog: $385.3 Million, Up 73% since mid - 2014 $385.3M $62.3M Defense Commercial Defense 86% / Commercial 14% 2Q 2014 – 2Q 2019 $ 94.1M $ 353.5M Funded Unfunded Unfunded backlog represents remaining potential value of long term agreements Funded 21% / Unfunded 79% $50 $150 $250 $350 $450 Q2'14 Q4' 15 Q2'15 Q4'15 Q2'16 Q4'16 Q2'17 Q4'17 Q2'18 Q4'18 Q2'19 Backlog (Defense/Commercial) Commercial Defense Total Backlog $447.6M $385.3M $62.3M

Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 6 Driven by Renewed Strength in Defense Budget Presence on prominent defense programs with strong funding Defense market focus yielding large, diversified, and growing backlog Lockheed Martin F - 35 Lightning II Drive Shaft NGC Japan E - 2D Hawkeye Bell / Textron AH - 1Z Viper Raytheon Next Generation Jammer Mid - Band Unidentified Missile Platform Unidentified Sikorsky Helicopter $25.0 – 30.0M $18.6M $170.0M+ $ Undisclosed $ Undisclosed $1.0M (approx.) Announced November 2017 Contract Period 2018 – 2022 Announced Jan. 2016/Feb. 2018 Contract Period 2016 – 2019 Announced Jan. 2017/March 2018 Contract Period 2017 – 2021 Announced July 2016/August 2018 Contract Period 2016 – 2030 Announced October 2018 Contract Period 2019 – 2020 Announced October 2018 Contract Period 2019 – 2020 NGC E - 2D Advanced Hawkeye – Follow OnM Lockheed Martin F - 35 Lightning II Lock Assys. Raytheon SEASPRARROW Missile System Lockheed Martin F - 16V Sikorsky UH - 60 Black Hawk HIRSS Module Assemblies U.S. Air Force T - 38 PC3/TRIM $47.5M (potential) $10.6M $ 5.0M $20.0+M ~$ 14.0M $65.7 Announced October 2018 Contract Period 2018 – 2024 Announced July 2015/Dec. 2018 Contract Period 2015 – 2024 Announced Legacy WMI Contract Period 2018 - 2019 Announced February 2019 Contract Period 2019 - 2024 Announced June 2019 Contract Period 2020 - 2022 Announced July 2019 Contract Period 2019 – 2030

Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 7 7 Vincent Palazzolo Chief Financial Officer 2Q 2019 Financial Highlights

8 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 8 Recent Financial Highlights For the Three Months Ended June 30, 2019 2018 (Unaudited) (Unaudited) Revenue $23.2 $20.3 Cost of revenue 18.2 15.7 Gross profit 5.0 4.6 Selling, general and administrative expenses 2.7 2.6 Income from operations 2.2 2.0 Income before provision for income taxes 1.7 1.6 Net income* $2.7 $1.3 Income per common share – diluted ** $0.23 $0.14 *Net income for the second quarter of 2019 includes a tax benefit of approximately $1.0 million due to the reversal of a portion of the approximately $3.1 million liability that was recorded at December 31, 2018 for an uncertain tax position related to a federal income tax audit. **On a higher number of shares: 11,644,768 versus 8,980,155 at June 30, 2018.

9 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 9 ($ in Millions, except per share value) Balance Sheet Highlights As of June 30, 2019 Cash and Restricted Cash $2.8 Contract Assets 120.3 Total Debt 31.2 Shareholders’ Equity 98.2 Book Value, per share 8.32 Debt - to - Capital 0.32 Liquidity • $40 million, 3 - year senior debt facility − $10 million term loan − $30 million revolving line - of - credit • Approximately $ 4.3 million available under credit facility as of June 30, 2019

10 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 10 • $98.0M – $102.0M Revenue • $11.0M – $11.3M Pre - tax Income • $3.5M+ Cash Flow from Operations 2019 Financial Guidance

11 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 11 Looking Ahead Douglas McCrosso n President & Chief Executive Officer

12 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 12 Bid Pipeline (07/30/19) Virtually all proposals are at the Tier 1 (95%) level Defense weighted at the moment – commercial bids soon to be submitted for more balance Continued Diversification Across Product Categories 99% 1% Defense Commerical 7% 7% 47% 39% Kitting MRO Aerostructures Aerosystems

13 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 13 Near - Term Program Opportunities KITTING & SUPPLY CHAIN MANAGEMENT AEROSTRUCTURES • Wet Outer Wing Panel Kits for Japanese E - 2D Advanced Hawkeye • Complete Multi - year Negotiations for US Navy’s E - 2D • A - 10 Wing Replacement Program (WRP) • Various Black Hawk Components / Structural Repairs • Missile Wings • Unmanned Aerial Systems • Intelligence, Surveillance & Reconnaissance (ISR) Pods • Electronic Warfare (EW) Pods • Electronic Racks & Step Assemblies AEROSYSTEMS • SEASPARROW missile control electronics • Various welded structures on E - 2D Advanced Hawkeye, including the aerial refueling probe WELDING METALLURGY WMI

Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 14 ‘08 ‘09 ’10 ’11 ’12 ’13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 Large and Diversified Backlog Drives Strong Visibility Defense Commercial Next Generation Jammer Increment 1 Pod T - 38C Talon Trainer E - 2D Advanced Hawkeye (Multi - Year 2) Sikorsky/Unnamed Helicopter Platform** New Customer/Missile Wing** E175 - E2 HondaJet Phenom 300 F - 35 Locks UH - 60 Black Hawk MH - 53E Sea Dragon F - 35 Drive Shaft S - 92 AH - 1Z Viper F - 16 Gulfstream G650 E - 2D & C - 2A (Multi - Year 1) Japan E - 2D Cessna Citation X+ CH - 148 F - 16V Structural Assemblies UH - 60 HIRSS Module Assemb. * At 06/30/19 Potential to collectively generate revenue of $ 447.6* million during the remaining periods of performance Long contract periods of performance provide exceptional revenue visibility beyond 2022 T - 38 PC3 / TRIM

Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 15 15 Q&A Session Douglas McCrosso n President & Chief Executive Officer

16 Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations Information contained herein is proprietary to CPI Aero and may be subject to ITAR regulations 16 Thank You CPI Aerostructures Vincent Palazzolo, Chief Financial Officer (631) 586 - 5200 www.cpiaero.com