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CPI Aerostructures offers more detail on financials at SEC's prodding

A CPI Aerostructures worker makes aircraft parts on

A CPI Aerostructures worker makes aircraft parts on Oct. 11, 2012, in Edgewood. Credit: Bloomberg News

Aerospace contractor CPI Aerostructures Inc. has begun offering further financial details in its quarterly and annual reports in response to comments in a periodic review by the Securities and Exchange Commission, according to government documents.

The Edgewood manufacturer has not been asked to restate its previously published financials, said chief financial officer Vincent Palazzolo.

The SEC, which regulates U.S. public companies and financial markets, posted its August correspondence with CPI executives on its online EDGAR system.

"The SEC has the discretion to make them available for public view," Palazzolo said.

In response to the SEC staff comments, CPI listed procurement, labor, factory overhead and other contract costs in the management discussion about the cost of sales in its report for the quarter ended June 30, 2015. Those numbers also were included in the correspondence with the SEC for the years ended Dec. 31, 2013, and 2014.

Palazzolo said those modifications in the management discussion and analysis sections of quarterly filings are less extensive than what is asked of many other public companies.

The SEC's review was part of a standard examination of CPI's yearly financial report done at least every three years as required for publicly traded companies by the Sarbanes Oxley Act of 2002.

Shares of CPI Aerostructures fell a penny Tuesday to close at $9.19. Year to date, they are down 11.7 percent.

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