CPI Aerostructures, Inc. (CVU) swung to a net loss for the year ended Dec. 31, 2016. The company has made a net loss of $3.61 million, or $ 0.42 a share in the year, against a net profit of $5.02 million, or $0.58 a share in the last year. On the other hand, adjusted net income for the year stood at $6.10 million, or $0.71 a share compared with $6.94 million or $0.81 a share, a year ago.
Revenue during the year dropped 18.83 percent to $81.33 million from $100.20 million in the previous year. Gross margin for the year contracted 1126 basis points over the previous year to 5.31 percent. Operating margin for the year stood at negative 5.28 percent as compared to a positive 8.95 percent for the previous year.
Operating loss for the year was $4.30 million, compared with an operating income of $8.97 million in the previous year.
However, the adjusted operating income for the year stood at $10.99 million compared to $11.97 million in the prior year. At the same time, adjusted operating margin improved 156 basis points in the year to 13.51 percent from 11.95 percent in the last year.
"Our financial results for fiscal 2016 reflect continued successful execution on a strategy first undertaken in 2014 to drive growth and profitability by leveraging our roots in the defense market and placing greater sales emphasis on multi-year opportunities," stated Douglas McCrosson, president and chief executive officer of CPI Aero. "We are pleased to report that multi-year defense programs comprise approximately 77% of backlog at year-end with the majority just beginning or about to begin generating revenue, thereby giving us significant revenue visibility in the coming years. In an ongoing, tight spending environment, we booked new orders totaling approximately $85 million in the second-half of fiscal 2016. Notable among those in the fourth quarter were Bell Helicopter/Textron and Sikorsky, both of which illustrate our ability to leverage superior program execution to secure additional awards."
For financial year 2017, CPI Aerostructures, Inc. projects revenue to be in the range of $82.50 million to $87 million.
Debt increases substantially
CPI Aerostructures, Inc. has witnessed an increase in total debt over the last one year. It stood at $32.64 million as on Dec. 31, 2016, up 29.55 percent or $7.45 million from $25.20 million on Dec. 31, 2015. Total debt was 27.71 percent of total assets as on Dec. 31, 2016, compared with 21.59 percent on Dec. 31, 2015. Debt to equity ratio was at 0.48 as on Dec. 31, 2016, up from 0.36 as on Dec. 31, 2015.
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