CPI Aerostructures Inc (NYSE MKT:CVU) Q1 2020 Earnings Conference Call - Final Transcript

Good day and welcome to the CPI Aerostructures First Quarter 2020 Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Mr. John Heilshorn, LHA Investor Relations Council. Please go ahead.

Thank you, Elisa, and good morning, everyone. Welcome to CPI Aerostructures' first quarter 2020 earnings call -- conference call. With me on the call this morning are Doug McCrosson, President and Chief Executive Officer; and Tom Powers, Acting Chief Financial Officer. The earnings press release was issued after the market closed yesterday afternoon. For today's call, a PowerPoint presentation accompanying management's prepared remarks is available for download in the Investor Relations section of the company's website at www.cpiaero.com. 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 that are based on current expectations of management and certain assumptions that are subject to risks and uncertainties. There can be no assurance that such risks and uncertainties will not affect the accuracy of the forward-looking statements or that actual results will not differ materially from the results anticipated in the forward-looking statements.

Included in these risks are, risks related to the restatement of the company's prior period consolidated financial statements and the material weaknesses in the company's internal controls, including the substantial costs and diversion of management attention and resources, which will be required to remediate the material weaknesses; any adverse developments in existing legal proceedings or the initiation of new legal proceedings; the effect of economic conditions in the industries and markets where the company operates, including financial market conditions, the impact of the COVID-19 pandemic, including its impact on global supply, demand and distribution capabilities as the outbreak continues; the financial condition of the company's customers and suppliers; the cyclicality of the aerospace market; the level of US government defense spending, including shifts or changes in defense spending due to budgetary constraints; spending cuts resulting from sequestration, the allocation of funds to government responses to COVID-19 or changing political conditions and uncertain funding of programs; the ability of the company -- the ability of the government and the company's other customers to terminate contracts anytime; 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 and costs resulting from changes to and compliance with applicable regulatory requirements; level of indebtedness and cash flow from operations.

Additional information concerning these and other risk factors can be found in the company's filings with the Securities and Exchange Commission. Because the risks, assumptions and uncertainties referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements, listeners are cautioned not to place undue reliance on any such forward-looking statements, each of which speaks only as of the date made. The company has no obligation to update any forward-looking