CPI Aerostructures, Inc. (CVU) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $1.25 million, or $ 0.14 a share in the quarter, against a net loss of $9.22 million, or $1.07 a share in the last year period. Revenue during the quarter surged 58.11 percent to $20.03 million from $12.67 million in the previous year period. Gross margin for the quarter period stood at positive 22.65 percent as compared to a negative 91.86 percent for the previous year period.
Operating income for the quarter was $2.37 million, compared with an operating loss of $14.36 million in the previous year period.
"2017 is off to a solid start driven largely by a favorable program mix, improved operational performance and cost control," said Douglas McCrosson, president and chief executive officer of CPI Aero. "Revenue in the first quarter was driven by the Northrop Grumman E-2D, Gulfstream G650, HondaJet and the F-16 maintenance, repair and overhaul (MRO) program. Revenue and gross margin benefited from shipments of F-16 components that the customer requested earlier than planned."
Working capital increases
CPI Aerostructures, Inc. has recorded an increase in the working capital over the last year. It stood at $72.71 million as at Mar. 31, 2017, up 17.26 percent or $10.70 million from $62.01 million on Mar. 31, 2016. Current ratio was at 2.79 as on Mar. 31, 2017, up from 2.45 on Mar. 31, 2016. Days sales outstanding went down to 17 days for the quarter compared with 63 days for the same period last year.
At the same time, days payable outstanding went up to 88 days for the quarter from 62 for the same period last year.
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