CPI Aerostructures Inc (NYSE MKT:CVU) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 08:30 am ET

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CPI Aerostructures Inc (NYSE MKT:CVU) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Q3 2019 CPI Aerostructures' Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Jody Burfening. Please go ahead.

Executive
Jody Burfening

Thank you, Sarah, and good morning, everyone, and welcome to CPI Aerostructures' Third Quarter 2019 Earnings Conference Call. A copy of the company's earnings press release and PowerPoint presentation accompanying this call are available for download in the Investor Relations section of the company's website. On the call this morning are Doug McCrosson, President and Chief Executive Officer; and Vincent Palazzolo, Chief Financial Officer. At the conclusion of their prepared remarks, management will hold a Q&A session.

As a reminder, this conference call will contain forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from projected results. Included in these risks are the government's ability to terminate its contracts with the company at any time, the government's ability to reduce or modify its contracts, its requirements for budgetary constraints, the government's right to suspend or bar the company from doing business with it as well as competition in the bidding process for both government and subcontracting contracts.

Subcontracting customers also have the ability to terminate their contracts with the company if it fails to meet the requirements of those contracts or if the customer reduces or modifies its contracts due to budgetary constraints.

Given these uncertainties, listeners are cautioned not to place undue reliance on any forward-looking statements that may be made during this conference call. Additional information concerning these and other risks can be found in the company's filings with the Securities and Exchange Commission.

With that, I would now like to turn the call over to Douglas McCrosson, President and Chief Executive Officer. Good morning, Doug.

Executive
Douglas McCrosson

Good morning. Thank you, Jody. I'll start today's call with a recap of our performance for the third quarter. Vince will then provide a detailed review of our financial results and modified financial guidance for 2019, after which I will offer some concluding remarks before opening the line to questions. We are very pleased to report an exceptional quarter of growth, strong operational execution and advancement on our strategic priorities for 2019.

Turning to the first highlight on Slide 4. Revenue, pretax income and earnings per share each exhibited robust year-on-year growth with EPS based on higher share count. We are also reporting another strong quarter of new bookings and product sales backlog. The consolidated book-to-bill ratio this quarter was 1.24, and it's greater than 1.4 over the past 12 months.

WMI, on a stand-alone basis, had a book-to-bill this quarter of 1.2 to 1.0 and its backlog rose to $23.1 million. Including WMI, consolidated product sales backlog increased to $159.1 million, up from $153.2 million at June 30 and up from