CPI Aerostructures (CVU) has reported 31.07 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.69 million, or $0.19 a share in the quarter, compared with $2.45 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.69 million, or $0.19 a share compared with $2.44 million or $0.28 a share, a year ago. Revenue during the quarter dropped 17.47 percent to $22.11 million from $26.79 million in the previous year period. Gross margin for the quarter expanded 183 basis points over the previous year period to 22.72 percent. Total expenses were 86.39 percent of quarterly revenues, up from 86.20 percent for the same period last year. That has resulted in a contraction of 19 basis points in operating margin to 13.61 percent.
Operating income for the quarter was $3.01 million, compared with $3.70 million in the previous year period.
However, the adjusted operating income for the quarter stood at $3.01 million compared to $3.69 million in the prior year period. At the same time, adjusted operating margin contracted 17 basis points in the quarter to 13.61 percent from 13.78 percent in the last year period.
"Our continued focus on operational excellence and program execution resulted in another quarter of solid financial performance," stated Douglas McCrosson, president and chief executive officer of CPI Aero. "The decline in revenue and income for the third quarter of 2016 as compared to the third quarter of 2015 was expected and largely attributed to a reduction in revenue for the E-2D outer wing panel ("OWP") kits. The multi-year E-2D OWP contract awarded in late 2014 front-loaded certain program activities from later years into 2015 that accelerated the timing of revenue recognition. We were pleased to see steady revenue and improving margin from our commercial market and meaningful contributions from our newer multi-year defense programs, such as the E-2D for Japan, T-38 and F-16, in the third quarter of 2016.
Cpi Aerostructures forecasts adjusted revenue to be in the range of $82.50 million to $88.50 million for fiscal year 2016.
Working capital remains almost stableWorking capital of CPI Aerostructures remained almost stable for the quarter at $67.39 million, when compared with the previous year period. Current ratio was at 2.66 as on Sep. 30, 2016, up from 2.59 on Sep. 30, 2015. Days sales outstanding went up to 35 days for the quarter compared with 29 days for the same period last year.
At the same time, days payable outstanding went up to 66 days for the quarter from 54 for the same period last year.
Debt moves up
CPI Aerostructures has witnessed an increase in total debt over the last one year. It stood at $32.33 million as on Sep. 30, 2016, up 22.80 percent or $6 million from $26.32 million on Sep. 30, 2015. Total debt was 27.87 percent of total assets as on Sep. 30, 2016, compared with 23.07 percent on Sep. 30, 2015. Debt to equity ratio was at 0.49 as on Sep. 30, 2016, up from 0.38 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 8.90 for the quarter from 16.93 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
