First Quarter 2015 Recap
-
First quarter revenue was
$172.9 million -
Net loss was
$2.0 million , or$0.18 per share -
EBITDA for the quarter was
$10.5 million -
Made voluntary principal prepayment of
$10.0 million on term loan during the quarter
“We are very disappointed in our 2015 first quarter financial and
operational performance and are taking swift action to resolve or
mitigate the factors that impeded our execution during the quarter,”
said
“We continue to see strength in certain of our end-use markets. We are experiencing solid large airframe commercial aerospace demand, up 11% year-over-year. In addition, our industrial sector revenue rose year-over-year, benefiting from ongoing business development efforts. These growth areas -- combined with steps being taken to further streamline our operations -- will lead to improved results for the remainder of 2015. Over the long term, we are committed to diversifying our customer base by investing in new technologies and processes, which will position the Company for stronger performance going forward.”
First Quarter Results
Net revenue for the first quarter of 2015 was
The net loss for the first quarter of 2015 was
Operating income for the first quarter of 2015 was
Interest expense decreased to
EBITDA for the first quarter of 2015 was
During the first quarter of 2015, the Company generated
The Company’s firm backlog as of
Ducommun AeroStructures (“DAS”)
The Company’s DAS segment reported net revenue for the current first
quarter of
DAS segment operating income for the current first quarter was
Ducommun LaBarge Technologies (“DLT”)
The Company’s DLT segment reported net revenue for the current first
quarter of
DLT’s operating income for the current first quarter was
Corporate General and Administrative Expenses (“CG&A”)
CG&A expenses for the first quarter of 2015 were
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About
Founded in 1849,
Statements contained in this press release regarding other than
recitation of historical facts are forward-looking statements. These
statements are identified by words such as “may,” “will,” “begin,” “look
forward,” “expect,” “believe,” “intend,” “anticipate,” “should,”
“potential,” “estimate,” “continue,” “momentum” and other words
referring to events to occur in the future. These statements reflect the
Company’s current view of future events and are based on its assessment
of, and are subject to, a variety of risks and uncertainties beyond its
control, including, but not limited to, the state of the world
financial, credit, commodities and stock markets, and uncertainties
regarding the Company, its businesses and the industries in which it
operates, which are described in the Company’s filings with the
[Financial Tables Follow]
DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
April 4, | December 31, | |||||||
2015 | 2014 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 32,705 | $ | 45,627 | ||||
Accounts receivable, net | 90,912 | 91,060 | ||||||
Inventories | 141,443 | 142,842 | ||||||
Production cost of contracts | 11,115 | 11,727 | ||||||
Deferred income taxes | 13,783 | 13,783 | ||||||
Other current assets | 19,485 | 23,702 | ||||||
Total Current Assets | 309,443 | 328,741 | ||||||
Property and Equipment, Net | 99,998 | 99,068 | ||||||
Goodwill | 157,569 | 157,569 | ||||||
Intangibles, Net | 152,596 | 155,104 | ||||||
Other Assets | 6,321 | 7,117 | ||||||
Total Assets | $ | 725,927 | $ | 747,599 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current Liabilities | ||||||||
Current portion of long-term debt | $ | 27 | $ | 26 | ||||
Accounts payable | 58,577 | 58,979 | ||||||
Accrued liabilities | 41,659 | 52,066 | ||||||
Total Current Liabilities | 100,263 | 111,071 | ||||||
Long-Term Debt, Less Current Portion | 280,019 | 290,026 | ||||||
Deferred Income Taxes | 70,199 | 69,448 | ||||||
Other Long-Term Liabilities | 19,938 | 20,484 | ||||||
Total Liabilities | 470,419 | 491,029 | ||||||
Commitments and Contingencies | ||||||||
Shareholders’ Equity | ||||||||
Common stock | 110 | 110 | ||||||
Additional paid-in capital | 72,992 | 72,206 | ||||||
Retained earnings | 188,932 | 190,905 | ||||||
Accumulated other comprehensive loss | (6,526 | ) | (6,651 | ) | ||||
Total Shareholders’ Equity | 255,508 | 256,570 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 725,927 | $ | 747,599 |
DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
(In thousands, except per share amounts) | ||||||||
Three Months Ended | ||||||||
April 4, | March 29, | |||||||
2015 | 2014 | |||||||
As Restated | ||||||||
Net Revenues | $ | 172,920 | $ | 179,753 | ||||
Cost of Sales | 146,159 | 143,838 | ||||||
Gross Profit | 26,761 | 35,915 | ||||||
Selling, General and Administrative Expenses | 23,134 | 21,087 | ||||||
Operating Income | 3,627 | 14,828 | ||||||
Interest Expense | (6,661 | ) | (7,125 | ) | ||||
(Loss) Income Before Taxes | (3,034 | ) | 7,703 | |||||
Income Tax (Benefit) Expense | (1,061 | ) | 2,544 | |||||
Net (Loss) Income | $ | (1,973 | ) | $ | 5,159 | |||
(Loss) Earnings Per Share | ||||||||
Basic (loss) earnings per share | $ | (0.18 | ) | $ | 0.48 | |||
Diluted (loss) earnings per share | $ | (0.18 | ) | $ | 0.46 | |||
Weighted-Average Number of Common Shares Outstanding | ||||||||
Basic | 10,964 | 10,844 | ||||||
Diluted | 10,964 | 11,107 | ||||||
Gross Profit % | 15.5 | % | 20.0 | % | ||||
SG&A % | 13.4 | % | 11.7 | % | ||||
Operating Income % | 2.1 | % | 8.2 | % | ||||
Net (Loss) Income % | (1.1 | )% | 2.9 | % | ||||
Effective Tax (Benefit) Rate | (35.0 | )% | 33.0 | % |
DUCOMMUN INCORPORATED AND SUBSIDIARIES | |||||||||||||||||
BUSINESS SEGMENT PERFORMANCE | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
% | % | ||||||||||||||||
% | April 4, | March 29, | of Net Revenues | of Net Revenues | |||||||||||||
Change | 2015 | 2014 | 2015 | 2014 | |||||||||||||
As Restated | As Restated | ||||||||||||||||
Net Revenues | |||||||||||||||||
DAS | (11.8 | )% | $ | 72,058 | $ | 81,654 | 41.7 | % | 45.4 | % | |||||||
DLT | 2.8 | % | 100,862 | 98,099 | 58.3 | % | 54.6 | % | |||||||||
Total Net Revenues | (3.8 | )% | $ | 172,920 | $ | 179,753 | 100.0 | % | 100.0 | % | |||||||
Segment Operating Income | |||||||||||||||||
DAS | $ | 2,138 | $ | 11,092 | 3.0 | % | 13.6 | % | |||||||||
DLT | 6,285 | 7,044 | 6.2 | % | 7.2 | % | |||||||||||
8,423 | 18,136 | ||||||||||||||||
Corporate General and Administrative Expenses (1) | (4,796 | ) | (3,308 | ) | (2.8 | )% | (1.8 | )% | |||||||||
Total Operating Income | $ | 3,627 | $ | 14,828 | 2.1 | % | 8.2 | % | |||||||||
EBITDA | |||||||||||||||||
DAS | |||||||||||||||||
Operating Income | $ | 2,138 | $ | 11,092 | |||||||||||||
Depreciation and Amortization | 2,513 | 2,416 | |||||||||||||||
4,651 | 13,508 | 6.5 | % | 16.5 | % | ||||||||||||
DLT | |||||||||||||||||
Operating Income | 6,285 | 7,044 | |||||||||||||||
Depreciation and Amortization | 4,359 | 5,008 | |||||||||||||||
10,644 | 12,052 | 10.6 | % | 12.3 | % | ||||||||||||
Corporate General and Administrative Expenses | |||||||||||||||||
Operating loss | (4,796 | ) | (3,308 | ) | |||||||||||||
Depreciation and Amortization | 42 | 2 | |||||||||||||||
(4,754 | ) | (3,306 | ) | ||||||||||||||
EBITDA | $ | 10,541 | $ | 22,254 | 6.1 | % | 12.4 | % | |||||||||
Capital Expenditures | |||||||||||||||||
DAS | $ | 3,334 | $ | 1,285 | |||||||||||||
DLT | 1,490 | 897 | |||||||||||||||
Corporate Administration | 4 | 10 | |||||||||||||||
Total Capital Expenditures | $ | 4,828 | $ | 2,192 | |||||||||||||
(1) Includes costs not allocated to either the DLT or DAS operating segments. |
Source:
Ducommun Incorporated
Joseph P. Bellino, Vice President, Chief
Financial Officer and Treasurer
310.513.7211
or
Chris
Witty, Investor Relations
646.438.9385
cwitty@darrowir.com