Record Commercial Aerospace Revenue and Strong Cash Flow in 2014
Fourth Quarter 2014 Highlights
-
Fourth quarter revenue was
$187.6 million -
Net income was
$5.2 million , or$0.46 per diluted share -
EBITDA for the quarter was
$18.2 million -
Cash flow from operations of
$32.5 million -
Ducommun made voluntary principal prepayments totaling$20.1 million on its term loan during the quarter -- resulting in a total of$42.6 million in voluntary prepayments for fiscal 2014
“Ducommun posted its seventh consecutive quarter of year-over-year
commercial aerospace growth, ending 2014 with record sales in this
market of
“Looking ahead, we continue to see many opportunities to grow the business even in an environment of lower defense spending. We believe 2015 will be a transition year where the first half is impacted by a reduction in sales to certain legacy military programs and overall reduced government procurement activity, partially offset by further expansion in Ducommun’s commercial aerospace and non A&D end markets. However, we see a solid second half of the year with continued strength in these areas driving top line expansion and paving the way for further growth in 2016.
"We were also pleased with record annual cash flow of
Fourth Quarter Results
Net revenue for the fourth quarter of 2014 was
Net income for the fourth quarter of 2014 was
Operating income for the fourth quarter of 2014 was
Interest expense decreased to
EBITDA for the fourth quarter of 2014 was
During the fourth quarter of 2014, the Company generated
The Company’s firm backlog as of December 31, 2014 was approximately
Ducommun AeroStructures (“DAS”)
The Company’s DAS segment reported net revenue for the current quarter
of
DAS segment operating income was
Ducommun LaBarge Technologies (“DLT”)
The Company’s DLT segment reported net revenue for the fourth quarter of
DLT’s operating income for the fourth quarter of 2014 was
Corporate General and Administrative Expenses (“CG&A”)
CG&A expenses for the fourth quarter of 2014 were
Full Year Results
Net revenue for the year ended December 31, 2014 was
Net income for the year ended December 31, 2014 was
Operating income for the year ended December 31, 2014 increased 33.4% to
Interest expense decreased to
EBITDA for the twelve months ended December 31, 2014 was
During the year fiscal 2014 the Company generated
Ducommun AeroStructures
The Company’s DAS segment reported net revenue for the year ended
December 31, 2014 of
DAS segment operating income for fiscal 2014 was
Ducommun LaBarge Technologies
The Company’s DLT segment reported net revenue for the twelve months
ended December 31, 2014 of
DLT’s operating income for the twelve months of 2014 was
Corporate General and Administrative Expenses
CG&A expenses for the twelve months ended December 31, 2014 were
Conference Call
A teleconference hosted by
This call is being webcast by
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
DUCOMMUN INCORPORATED AND SUBSIDIARIES |
||||||||||
December 31, |
December 31, |
|||||||||
As Restated | ||||||||||
Assets | ||||||||||
Current Assets | ||||||||||
Cash and cash equivalents | $ | 45,627 | $ | 48,814 | ||||||
Accounts receivable, net | 91,060 | 91,909 | ||||||||
Inventories | 142,842 | 140,507 | ||||||||
Production cost of contracts | 11,727 | 11,599 | ||||||||
Deferred income taxes | 13,783 | 12,669 | ||||||||
Other current assets | 23,702 | 28,083 | ||||||||
Total Current Assets | 328,741 | 333,581 | ||||||||
Property and Equipment, Net | 99,068 | 96,090 | ||||||||
Goodwill | 157,569 | 157,569 | ||||||||
Intangibles, Net | 155,104 | 165,465 | ||||||||
Other Assets | 7,117 | 9,940 | ||||||||
Total Assets | $ | 747,599 | $ | 762,645 | ||||||
Liabilities and Shareholders’ Equity | ||||||||||
Current Liabilities | ||||||||||
Current portion of long-term debt | $ | 26 | $ | 25 | ||||||
Accounts payable | 58,979 | 58,111 | ||||||||
Accrued liabilities | 52,066 | 50,122 | ||||||||
Total Current Liabilities | 111,071 | 108,258 | ||||||||
Long-Term Debt, Less Current Portion | 290,026 | 332,677 | ||||||||
Deferred Income Taxes | 69,448 | 67,989 | ||||||||
Other Long-Term Liabilities | 20,484 | 19,450 | ||||||||
Total Liabilities | 491,029 | 528,374 | ||||||||
Commitments and Contingencies | ||||||||||
Shareholders’ Equity | ||||||||||
Common stock | 110 | 110 | ||||||||
Treasury stock | — | (1,924 | ) | |||||||
Additional paid-in capital | 72,206 | 68,909 | ||||||||
Retained earnings | 190,905 | 171,038 | ||||||||
Accumulated other comprehensive loss | (6,651 | ) | (3,862 | ) | ||||||
Total Shareholders’ Equity | 256,570 | 234,271 | ||||||||
Total Liabilities and Shareholders’ Equity | $ | 747,599 | $ | 762,645 | ||||||
DUCOMMUN INCORPORATED AND SUBSIDIARIES |
||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, |
|||||||||||||||||
As Restated | As Restated | |||||||||||||||||||
Net Revenues | $ | 187,612 | $ | 187,975 | $ | 742,045 | $ | 736,650 | ||||||||||||
Cost of Sales | 153,985 | 168,410 | 601,713 | 612,498 | ||||||||||||||||
Gross Profit | 33,627 | 19,565 | 140,332 | 124,152 | ||||||||||||||||
Selling, General and Administrative Expenses | 23,560 | 19,674 | 88,565 | 84,849 | ||||||||||||||||
Operating Income (Loss) | 10,067 | (109 | ) | 51,767 | 39,303 | |||||||||||||||
Interest Expense | (6,983 | ) | (7,250 | ) | (28,077 | ) | (29,918 | ) | ||||||||||||
Other Income | 950 | — | 2,550 | — | ||||||||||||||||
Income (Loss) Before Taxes | 4,034 | (7,359 | ) | 26,240 | 9,385 | |||||||||||||||
Income Tax (Benefit) Expense | (1,122 | ) | (2,115 | ) | 6,373 | (1,993 | ) | |||||||||||||
Net Income (Loss) | $ | 5,156 | $ | (5,244 | ) | $ | 19,867 | $ | 11,378 | |||||||||||
Earnings (Loss) Per Share | ||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.47 | $ | (0.49 | ) | $ | 1.82 | $ | 1.06 | |||||||||||
Diluted earnings (loss) per share | $ | 0.46 | $ | (0.49 | ) | $ | 1.79 | $ | 1.05 | |||||||||||
Weighted-Average Number of Common Shares Outstanding | ||||||||||||||||||||
Basic | 10,950 | 10,804 | 10,897 | 10,695 | ||||||||||||||||
Diluted | 11,188 | 10,804 | 11,126 | 10,852 | ||||||||||||||||
Gross Profit % | 17.9 | % | 10.4 | % | 18.9 | % | 16.9 | % | ||||||||||||
SG&A % | 12.6 | % | 10.5 | % | 11.9 | % | 11.5 | % | ||||||||||||
Operating Income (Loss) % | 5.4 | % | (0.1 | )% | 7.0 | % | 5.3 | % | ||||||||||||
Net Income (Loss) % | 2.7 | % | (2.8 | )% | 2.7 | % | 1.5 | % | ||||||||||||
Effective Tax (Benefit) Rate | (27.8 | )% | (28.7 | )% | 24.3 | % | (21.2 | )% | ||||||||||||
DUCOMMUN INCORPORATED AND SUBSIDIARIES |
||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||||||||||||||
% |
December 31, |
December 31, |
% |
% |
% |
December 31, |
December 31, |
% |
% |
|||||||||||||||||||||||||||||||||||
As Restated | As Restated | As Restated | As Restated | |||||||||||||||||||||||||||||||||||||||||
Net Revenues | ||||||||||||||||||||||||||||||||||||||||||||
DAS | (3.1 | )% | $ | 78,329 | $ | 80,795 | 41.8 | % | 43.0 | % | 1.5 | % | $ | 319,956 | $ | 315,232 | 43.1 | % | 42.8 | % | ||||||||||||||||||||||||
DLT | 2.0 | % | 109,283 | 107,180 | 58.2 | % | 57.0 | % | 0.2 | % | 422,089 | 421,418 | 56.9 | % | 57.2 | % | ||||||||||||||||||||||||||||
Total Net Revenues | (0.2 | )% | $ | 187,612 | $ | 187,975 | 100.0 | % | 100.0 | % | 0.7 | % | $ | 742,045 | $ | 736,650 | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||
Segment Operating Income | ||||||||||||||||||||||||||||||||||||||||||||
DAS | $ | 6,882 | $ | (6,023 | ) | 8.8 | % | (7.5 | )% | $ | 34,949 | $ | 19,008 | 10.9 | % | 6.0 | % | |||||||||||||||||||||||||||
DLT | 8,510 | 9,409 | 7.8 | % | 8.8 | % | 34,599 | 37,030 | 8.2 | % | 8.8 | % | ||||||||||||||||||||||||||||||||
15,392 | 3,386 | 69,548 | 56,038 | |||||||||||||||||||||||||||||||||||||||||
Corporate General and Administrative Expenses (1) | (5,325 | ) | (3,495 | ) | (2.8 | )% | (1.9 | )% | (17,781 | ) | (16,735 | ) | (2.4 | )% | (2.3 | )% | ||||||||||||||||||||||||||||
Total Operating Income (Loss) | $ | 10,067 | $ | (109 | ) | 5.4 | % | (0.1 | )% | $ | 51,767 | $ | 39,303 | 7.0 | % | 5.3 | % | |||||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
DAS | ||||||||||||||||||||||||||||||||||||||||||||
Operating Income | $ | 6,882 | $ | (6,023 | ) | $ | 34,949 | $ | 19,008 | |||||||||||||||||||||||||||||||||||
Other Income (2) | 950 | — | 2,550 | — | ||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization | 2,717 | 5,019 | 10,959 | 12,406 | ||||||||||||||||||||||||||||||||||||||||
10,549 | (1,004 | ) | 13.5 | % | (1.2 | )% | 48,458 | 31,414 | 15.1 | % | 10.0 | % | ||||||||||||||||||||||||||||||||
DLT | ||||||||||||||||||||||||||||||||||||||||||||
Operating Income | 8,510 | 9,409 | 34,599 | 37,030 | ||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization | 4,486 | 4,484 | 17,928 | 18,346 | ||||||||||||||||||||||||||||||||||||||||
12,996 | 13,893 | 11.9 | % | 13.0 | % | 52,527 | 55,376 | 12.4 | % | 13.1 | % | |||||||||||||||||||||||||||||||||
Corporate General and Administrative Expenses | ||||||||||||||||||||||||||||||||||||||||||||
Operating loss | (5,325 | ) | (3,495 | ) | (17,781 | ) | (16,735 | ) | ||||||||||||||||||||||||||||||||||||
Depreciation and Amortization | (8 | ) | 47 | 137 | 174 | |||||||||||||||||||||||||||||||||||||||
(5,333 | ) | (3,448 | ) | (17,644 | ) | (16,561 | ) | |||||||||||||||||||||||||||||||||||||
EBITDA | $ | 18,212 | $ | 9,441 | 9.7 | % | 5.0 | % | $ | 83,341 | $ | 70,229 | 11.2 | % | 9.5 | % | ||||||||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
Asset Impairments (3) | $ | — | $ | 6,975 | $ | — | $ | 6,975 | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 18,212 | $ | 16,416 | 9.7 | % | 8.7 | % | $ | 83,341 | $ | 77,204 | 11.2 | % | 10.5 | % | ||||||||||||||||||||||||||||
Capital Expenditures | ||||||||||||||||||||||||||||||||||||||||||||
DAS | $ | 8,756 | $ | 4,079 | $ | 12,742 | $ | 8,287 | ||||||||||||||||||||||||||||||||||||
DLT | 1,046 | 1,954 | 5,782 | 5,000 | ||||||||||||||||||||||||||||||||||||||||
Corporate Administration | 5 | 49 | 30 | 116 | ||||||||||||||||||||||||||||||||||||||||
Total Capital Expenditures | $ | 9,807 | $ | 6,082 | $ | 18,554 | $ | 13,403 | ||||||||||||||||||||||||||||||||||||
(1) | Includes costs not allocated to either the DLT or DAS operating segments. | ||
(2) | Insurance recoveries related to property and equipment included as other income. | ||
(3) | The 2013 periods include an approximate $14.1 million in charges related to the Embraer Legacy 450/500 and Boeing 777 wing tip contracts and was comprised of approximately $7.0 million of asset impairment charges for production cost of contracts; approximately $5.2 million of forward loss reserves and approximately $1.9 million of inventory write-offs. | ||
Source:
Ducommun Incorporated
Joseph P. Bellino, 310-513-7211
Vice
President, Treasurer and Chief Financial Officer
or
Chris
Witty, 646-438-9385
Investor Relations
cwitty@darrowir.com