Welcome to the CPI Aero's 2015 First Quarter Results Conference Call. With us today are Douglas McCrosson, President and Chief Executive Officer; and Vincent Palazzolo, Chief Financial Officer. After Management’s prepared remarks, there will be 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 their contracts with the company at any time; the government's ability to reduce or modify its contract if requirements or budgetary constraints change; the government's right to suspend or bar the company from doing business with them, 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 their customer reduces or modifies its contracts to them due to budgetary constraints. Given these uncertainties, listeners are cautioned not to place undue reliance on any forward-looking statements contained in this conference call. Additional information concerning these and other risks can be found in the filings with the SEC. Now, I will transfer the call to Douglas McCrosson, CPI Aero's President and Chief Executive Officer.

Thank you, Kevin. Good morning and thank you to all for joining us for our 2015 first quarter results conference call. I would like to start this call by providing a summary of our achievements for the quarter and then turn the call over to Vince who will discuss our recent financial results. Yesterday after the close of the market, we released our first quarter 2015 financial results. Our reported revenue and earnings per share for the first quarter of 2015 were in line with our internal forecast for the period and we remain on target for the year as a whole. Due to the timing of delivery orders associated with several recently announced major programs, we expect our performance for the second half of the year to be much stronger than the first half and 2015 to be a record year in terms of revenue. We're still projecting full year revenue of $92 to $102 million, surpassing the $89.3 million of revenue we recorded in 2012. Before I turn the call over to Vince, I want to share what I believe to be the three key takeaways as you review our first quarter 2015 performance. First, total backlog at March 31, 2015, increased by $39.9 million to $442.6 million as compared to 2014 yearend. The gross profit margin for the first quarter of 2015 was adversely affected by the change in estimate we made in 2Q '14 for our A-10 Wing Replacement Program. That program was contributing profitable revenue in the first quarter of 2014 and now we're booking A-10 WRP revenue at zero profit. We believe analyzing the gross profit margin for the rest of our products is key to assess how the rest of the business is performing. I am very encouraged to see that gross profit margin for the first quarter of 2015 improve by 200 basis points when compared to the first quarter of 2014 after excluding the contributions of the A-10 WRP during both periods. Clearly we're seeing the results of our various efforts to drive direct and indirect cost out of our production processes. Third, since the beginning of the year through March 31, we received approximately $16.2 million in new contract awards which is approximately $11.5 million of new contract awards received in the same period of 2014 and our best start to the year since 2012. With that prelude, I will now hand the call over to Vince Palazzolo, our CFO to discuss our recent financial results and expectations for 2015. Then I will comment on the current business environment, backlog and contract awards and new growth opportunities going forward. I'll then open the call to questions. Vince?

Thank you, Doug. Starting with our financial performance for the first quarter of 2015 as shown on Slide 6, for the first quarter of 2015 as compared to the first quarter of 2014, we reported revenue of $19.9 million as compared to $21.9 million. Gross margin of 18.1% as compared to 20.5%, pre-tax income of $1.4 million compared to $2.5 million and net income of approximately $0.9 million or $0.11 per diluted share, compared to $1.7 million or $0.20 per diluted share. Moving to Slide 7, in the first quarter of 2015, approximately 49% of our total revenue or $9.2 million was generated from commercial programs. This compared to approximately $7.3 million reported in the first quarter of 2014, up by $1.9 million, which was due to increased production on our Embraer and Honda programs. As expected revenue generated from military contracts in the first quarter of 2015 decreased, as compared to the same quarter of 2014, due to lower revenues from our E-2D program with Northrop Grumman as work on the new E-2D multi-year award has not yet reached its peak rate. During the quarter, we continued to book revenue for the A-10 Wing Replacement Program at zero margin as compared to 18.6% gross margin for this program in the first quarter of 2014. As a result, as shown on Slide 8, our gross margin for the current quarter was 18.1% compared to gross margin of 20.5% in the quarter ended March 31, 2014. Excluding the effect of the A-10 Program, the first quarter 2015 gross margin on all remaining programs improved 23.1% as compared to 21.1% in the same period in 2014. This increase was primarily the result of higher gross margin on the company's commercial programs as production rates have increased. Slide 9 summarizes our guidance for…

Thank you, Vince. Since the beginning of the year through March 31, 2015 we received approximately $16.2 million in new business which included approximately $7.5 million of military orders and approximately $8.7 million of commercial orders compared to a total of $4.7 million in new contract awards for both military and commercial programs in the same period of last year. As Slide 16 shows, at March 31, 2015, our total backlog increased to $442.6 million as compared to $403.7 million at December 31, 2014. Funded backlog was $120.4 million similar to funded backlog at December 31, 2014 and non-funded backlog comprised 73% of total backlog and increased to $322.2 million with 44% related to our long-term commercial aerospace programs. Slide 17 shows our largest contracts currently in progress including our recently won contracts, which collectively have the potential to generate revenue of $438 million during the remainder of their performance periods. Of note, the three most defense related programs wins for work on the F-16, T-38 and E-2, C-2 collectively added over $188 million in backlog recognizable through 2022. Slide 18 provides an update of a few of our programs currently in progress in the three recent wins I just mentioned. Starting with our multiyear contract for E-2D/C-2A outer wing panel kits, this contract added more than $63 million in new funded backlog. We will begin to recognize revenue from the multiyear order for the second quarter of ’15 and significant revenue is expected to occur in both third and fourth quarter of this year as we received purchased detailed parts from our suppliers. Our Phenom 300 engine inlet assembly program with Embraer continues to perform well and we have successfully ramped the full rate production of more than 10 ship sets per month. This is up sharply from the…

[Operator Instructions] Our first question today is coming from Mark Jordan from Noble Financial. Please proceed with your question.

Yes, good morning, gentlemen. A question relative to your guidance of bond in the range of $92 million, if you exclude A-10 revenue, what percent of that $92 million is currently in funded backlog?

It's little over 95% of that.

And what do you expect of the balance of that to be nailed down? Is that something that -- is that business you have to find or is that just existing relationships that haven't been funded yet?

The latter Mark.

Okay. A question relative to the A-10, how do you see that playing out this year in terms of funded backlog that you have currently and when is the decision point if another option or more work gets committed?

Our backlog does not contain any more releases on A-10. The current political situation is rapidly changing. If people are aware maybe some of you follow it for other reasons the budget process down in Washington. Right now, the only thing that we know for sure is that the House Armed Services Committee has put funding into keep the A-10 in the fleet to provide maintenance and upgrade funding for that program and we believe that you also include a new release of wings beyond the current order that we have now with Boeing. How that plays out over the coming months during this budget process is anybody's guess. We are internally functioning that we've been operating under frankly for over a year now, which is that we will continue to produce A-10 assemblies shipped to our customer probably now for the balance of the year although there has been a -- roughly the same number of aircraft that will be delivering, where spreading it out if you will. So that our assumptions are all valid, the assumptions we made back in 2014 remain valid today. If the Congress ultimately does fund the wings that are currently in the house version of the budget, then I would expect Boeing would receive an order later this year and then we would receive an order some time after that. The economics are going to be different on any subsequent order because we're no longer under the terms of our long-term agreement we negotiated back in 2007, 2008. So in a way, I am kind of neutral on it. I am going to wait and see, but there is a potential upside if the Congress fully funds the A-10 including new wings.

So just to reiterate that if there was an additional lot authorized that would not -- that would be economically be positive event for you versus a neutral to negative?

That is correct. It would be positive for us.

Okay. Final question for me, I noticed in the 8-K filed yesterday that there was amendment to the bank lines, could you summarize the changes that we're implementing with that amendment?

The change basically related to one specific financial covenant that the leverage ratio covenant, we increased the maximum leverage ratio from 2.75 to 1, to 3.75 to 1 for the first quarter of 2015 and then having a sliding scale for the remainder of the year. Mostly that's related was necessary because we were not really comparing apples to apples. We were comparing income in the first quarter of 2015 with zero margin A-10 revenue compared to last year's positive margin A-10. So the kind of through the ratio out of wack and we just fixed up the amount so that for the remainder of this year that will level itself out until all of the periods become comparable again.

Okay. Thank you very much.

Thank you, Mark.

[Operator Instructions] Our next question today is coming from the Mike Crawford from B. Riley & Company. Please proceed with your question.

Good morning, Mike.

Thank you. Good morning. So it's nice you’re expecting this near-term acceleration of Tier 2 opportunities for large commercial platforms. What do you mean by that and how many of these bids have already been submitted would you say?

What we've seen, and I’m going to say stating in the late last year into early this year is we've seen increased opportunities for the large commercial airliners primarily on 787 and the Embraer E2. And there is a couple of factors that go into that. I think we’re getting those Tier 2 in one case, I’m sorry it’s a Tier 1 application, but we’re getting these opportunities now for combination of past performance with these customers and in both cases their existing customers. And we’re getting our investments in the technologies are convincing them that this -- that we could actually perform this if we’re successful at the rates that they would be expecting. We have submitted some smaller ones and then we have two large ones that we’re putting in that have to go in, in the May-June timeframe.

Okay, thank you and then as for Embraer today, I think you are doing like 12 ship sets per month attending a ramp to 14, with that make that just about the highest volume program you worked on so far.

That is the Embraer right now is our highest delivery rate program by quite a large measure actually and we expect that rate to continue at least through the first quarter of '16 possibly longer. That rate doesn’t go on forever of course, but that is what the rate is currently.

So has that been one of the stumbling box just being able to demonstrate the ability to produce at a high rate. So if you take 737 words, 30 or 35 ship sets a month.

Yeah, there is that Mike and it's both the rate and our ability to meet delivery schedules as we increase the ramp and we were very successful on Embraer program in doing both while maintaining the quality. I think this past actually about two weeks ago Embraer had a supplier summit done in Brazil where they bring in their top suppliers and we were asked to actually be one of the keynote the voice of the supplier for that conference because of our success on the ramp up and the increase in our production rate. So we have a very happy customer with Embraer and I think we were able to demonstrate to the larger audience during that presentation that we’re making the right investments to be I'll say, I'll call it a credible Tier 1 supplier to these -- for these larger applications.

Great. Thank you. And then last question is you're nicely two for two on these logistic supply chain management bids, are there others that you have submitted or will be submitting that are similar?

The one that -- yes, the one that we're looking at now is during the RFI stage which is pre-RFQ is F-16 service life extension program that's been publicly announced by the air force and we believe pretty strongly that we will be able to offer a very competitive bid piggybacking if you will on our recent win that supports the wing production line out at floor space.

Great. Thanks very much.

Okay Mike.

[Operator Instructions] If there are no further question, at this time, I would like to turn the floor back over to management for any further or closing comments.

All right. Thank you. Thank you all for participating in this call. We look forward to speaking to you again in early August when we announce our 2015 second quarter results. Thank you.

Thank you. That does conclude today’s teleconference. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today.