EDGEWOOD, N.Y. - CPI Aerostructures (NYSE:CVU), Inc. (NYSE American: CVU), a manufacturer of structural assemblies for aircraft, announced today the appointment of Philip Passarello as its new Chief Financial Officer. Mr. Passarello brings over two decades of financial management experience to CPI Aero, including a comprehensive background in accounting, financial reporting, and strategic planning.
Before his new role at CPI Aero, Passarello served as the Vice President of Finance at TTM Technologies (NASDAQ:TTMI), where he oversaw financial operations for the Integrated Electronics business sector. His tenure at TTM Technologies followed a significant period at Telephonics Corporation, a company acquired by TTM in June 2022, where he held various managerial and executive positions over 15 years. His responsibilities at Telephonics included system integration, strategic forecasting, and financial management.
Passarello's earlier career includes five years in KPMG's audit practice, focusing on public companies. He holds a Bachelor of Business Administration degree in Accounting from Dowling College.
Dorith Hakim, President and CEO of CPI Aero, expressed confidence in Passarello's appointment, highlighting his track record and leadership skills as valuable assets to the company's financial team. Hakim also extended gratitude to Andrew Davis for his service since joining CPI Aero in 2021 and wished him well in future endeavors.
CPI Aero is known for its role as a Tier 1 supplier to aircraft OEMs and as a Tier 2 subcontractor within the global aerostructure supply chain. The company also acts as a prime contractor to the U.S. Department of Defense, primarily the Air Force. Alongside its assembly operations, CPI Aero offers engineering, program management, supply chain management, and MRO services.
The information regarding the appointment of Philip Passarello as CFO and CPI Aero's business operations is based on a press release statement.
In other recent news, CPI Aerostructures has been active with several significant developments. The company appointed Philip Passarello as its new Chief Financial Officer and Secretary, following the termination of its previous CFO, Andrew Davis. Passarello, formerly Vice President of Finance at TTM Technologies, is set to receive an annual base salary of $350,000, with potential for additional cash and equity bonuses.
CPI Aerostructures also finalized a Long Term Agreement with MST Manufacturing for component supply, set to extend through 2027. This deal is expected to enhance the company's aerostructures production capabilities. Furthermore, the company secured a follow-on order worth approximately $1.3 million for welded structural assemblies from a U.S. military helicopter customer, anticipated to be fulfilled by mid-2025.
In terms of executive compensation, the company increased CEO Dorith Hakim's annual base salary by 4.8% to $385,000, as approved by the Compensation and Human Resources Committee. CPI Aerostructures' shareholders also recently elected Pamela Levesque and Richard C. Rosenjack, Jr. as Class II directors.
The company has transitioned to a new independent accounting firm, Marcum LLP, replacing RSM US LLP. This change was carried out without disagreements over accounting principles or financial statement disclosure, though the company did report "reportable events" related to internal control matters. These developments highlight the company's strategic moves in its executive team, supply agreements, and financial operations.
InvestingPro Insights
With the recent appointment of Philip Passarello as Chief Financial Officer, CPI Aerostructures, Inc. (NYSE American: CVU) is poised to leverage his extensive experience in financial management and strategic planning. The financial health and market performance of CPI Aero are critical for stakeholders, and real-time data from InvestingPro provides valuable insights into the company's current standing.
InvestingPro data indicates that CPI Aero has a market capitalization of $34.55 million, reflecting its size within the aerospace sector. Notably, the company is trading at a low earnings multiple, with a P/E ratio of 1.97 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 2.08. This suggests that the stock could be undervalued relative to its earnings, a point of interest for value investors.
The company's revenue for the last twelve months as of Q2 2024 stands at $83.79 million, with a gross profit margin of 19.65%. Despite a slight revenue decline of 3.51% during this period, CPI Aero has maintained a positive operating income margin of 7.04%. Furthermore, a significant return over the last week, with a price total return of 14.22%, indicates strong short-term performance, which may be attractive to momentum investors.
Among the InvestingPro Tips, two particularly stand out for CPI Aero. Firstly, the stock is currently in overbought territory according to the Relative Strength Index (RSI), suggesting that investors should exercise caution as the stock may be due for a pullback. Secondly, the company's liquid assets exceed its short-term obligations, indicating a healthy liquidity position that could reassure investors about the company's ability to meet its immediate financial liabilities.
For those interested in exploring more about CPI Aero's financial metrics and strategic insights, InvestingPro offers additional tips and in-depth analysis, which can be accessed through the dedicated CPI Aero page on their platform.
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