Continued Strength in
Third Quarter 2013 Highlights
-
The Company reported net income of
$4.6 million , or$0.42 per diluted share -
Adjusted EBITDA for the quarter was
$19.2 million -
Cash flow from operations was
$7.6 million ;Ducommun also made another voluntary principal prepayment of$7.5 million on its term loan -
The Company’s firm backlog at the end of the third quarter was
$609 million
“Our third quarter highlighted the resilience of our diversified product
portfolio,” said
“We generated
Third Quarter Results
Net sales for the third quarter of 2013 were
Net income for the third quarter of 2013 was
Operating income for the third quarter of 2013 was
Adjusted EBITDA for the third quarter of 2013 was
Cash flow generated from operations during the third quarter of 2013 was
Ducommun AeroStructures (DAS)
The Company’s DAS segment reported net sales for the third quarter of
DAS segment operating income was
Ducommun LaBarge Technologies (DLT)
The Company’s DLT segment reported net sales for the third quarter of
DLT’s operating income for the third quarter of 2013 was
Corporate General and Administrative Expenses (CG&A)
CG&A expenses for the third quarter of 2013 were
Year to Date Results
Net sales for the first nine months of 2013 were
Net income for the first nine months of 2013 was
The Company recognized total federal research and development tax credit
benefits of
Operating income for the first nine months of 2013 was
Adjusted EBITDA for the first nine months of 2013 was
During the first nine months of 2013, the Company generated
Ducommun AeroStructures (DAS)
The Company’s DAS segment reported net sales for the first nine months
2013 of
DAS segment operating income was
Ducommun LaBarge Technologies (DLT)
The Company’s DLT segment reported net sales for the first nine months
of 2013 of
DLT’s operating income for the first nine months of 2013 was
Corporate General and Administrative Expenses (CG&A)
CG&A expenses for the first nine months of 2013 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) | ||||||||
September 28, | December 31, | |||||||
Assets | 2013 | 2012 | ||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 32,597 | $ | 46,537 | ||||
Accounts receivable, net | 92,637 | 97,300 | ||||||
Unbilled receivables | 6,615 | 3,556 | ||||||
Inventories | 148,524 | 148,318 | ||||||
Production cost of contracts | 19,926 | 17,960 | ||||||
Deferred income taxes | 7,110 | 10,459 | ||||||
Other current assets | 16,890 | 10,441 | ||||||
Total Current Assets | 324,299 | 334,571 | ||||||
Property and Equipment, Net | 93,840 | 98,383 | ||||||
Goodwill | 161,940 | 161,940 | ||||||
Intangibles, Net | 168,188 | 176,356 | ||||||
Other Assets | 11,779 | 13,824 | ||||||
Total Assets | $ | 760,046 | $ | 785,074 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current Liabilities | ||||||||
Current portion of long-term debt | $ | 3,029 | $ | 3,042 | ||||
Accounts payable | 49,668 | 52,578 | ||||||
Accrued liabilities | 39,320 | 52,716 | ||||||
Total Current Liabilities | 92,017 | 108,336 | ||||||
Long-Term Debt, Less Current Portion | 340,184 | 362,702 | ||||||
Deferred Income Taxes | 64,504 | 67,808 | ||||||
Other Long-Term Liabilities | 22,097 | 23,553 | ||||||
Total Liabilities | 518,802 | 562,399 | ||||||
Commitments and Contingencies | ||||||||
Shareholders' Equity | ||||||||
Common stock | 109 | 107 | ||||||
Treasury stock | (1,924 | ) | (1,924 | ) | ||||
Additional paid-in capital | 70,679 | 66,475 | ||||||
Retained earnings | 179,332 | 165,485 | ||||||
Accumulated other comprehensive loss | (6,952 | ) | (7,468 | ) | ||||
Total Shareholders' Equity | 241,244 | 222,675 | ||||||
Total Liabilities and Shareholders' Equity | $ | 760,046 | $ | 785,074 | ||||
DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Sales | $ | 181,288 | $ | 184,097 | $ | 548,675 | $ | 553,145 | ||||||||
Cost of Sales | 148,984 | 148,517 | 446,202 | 447,143 | ||||||||||||
Gross Profit | 32,304 | 35,580 | 102,473 | 106,002 | ||||||||||||
Selling, General and Administrative Expenses | 20,351 | 21,340 | 65,175 | 65,891 | ||||||||||||
Operating Income | 11,953 | 14,240 | 37,298 | 40,111 | ||||||||||||
Interest Expense | 7,403 | 8,241 | 22,668 | 24,714 | ||||||||||||
Income Before Taxes | 4,550 | 5,999 | 14,630 | 15,397 | ||||||||||||
Income Tax Expense (Benefit) | (86 | ) | 894 | 783 | 2,395 | |||||||||||
Net Income | $ | 4,636 | $ | 5,105 | $ | 13,847 | $ | 13,002 | ||||||||
Earnings Per Share | ||||||||||||||||
Basic earnings per share | $ | 0.43 | $ | 0.48 | $ | 1.30 | $ | 1.23 | ||||||||
Diluted earnings per share | $ | 0.42 | $ | 0.48 | $ | 1.28 | $ | 1.23 | ||||||||
Weighted-Average Number of Common Shares Outstanding | ||||||||||||||||
Basic | 10,722 | 10,595 | 10,657 | 10,575 | ||||||||||||
Diluted | 10,917 | 10,633 | 10,785 | 10,588 | ||||||||||||
Gross Profit % | 17.8 | % | 19.3 | % | 18.7 | % | 19.2 | % | ||||||||
SG&A % | 11.2 | % | 11.6 | % | 11.9 | % | 11.9 | % | ||||||||
Operating Income % | 6.6 | % | 7.7 | % | 6.8 | % | 7.3 | % | ||||||||
Net Income % | 2.6 | % | 2.8 | % | 2.5 | % | 2.4 | % | ||||||||
Effective Tax Rate (Benefit) | (1.9 | )% | 14.9 | % | 5.4 | % | 15.6 | % | ||||||||
DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT PERFORMANCE | ||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
% | % | % | % | |||||||||||||||||||||||||||||||
% | September 28, | September 29, | of Net Sales | of Net Sales | % | September 28, | September 29, | of Net Sales | of Net Sales | |||||||||||||||||||||||||
Change | 2013 | 2012 | 2013 | 2012 | Change | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Net Sales | ||||||||||||||||||||||||||||||||||
DAS | 1.4 | % | $ | 77,740 | $ | 76,655 | 42.9 | % | 41.6 | % | 2.9 | % | $ | 234,437 | $ | 227,832 | 42.7 | % | 41.2 | % | ||||||||||||||
DLT | (3.6 | )% | 103,548 | 107,442 | 57.1 | % | 58.4 | % | (3.4 | )% | 314,238 | 325,313 | 57.3 | % | 58.8 | % | ||||||||||||||||||
Total Net Sales | (1.5 | )% | $ | 181,288 | $ | 184,097 | 100.0 | % | 100.0 | % | (0.8 | )% | $ | 548,675 | $ | 553,145 | 100.0 | % | 100.0 | % | ||||||||||||||
Segment Operating Income | ||||||||||||||||||||||||||||||||||
DAS | $ | 7,633 | $ | 7,410 | 9.8 | % | 9.7 | % | $ | 23,766 | $ | 21,575 | 10.1 | % | 9.5 | % | ||||||||||||||||||
DLT (2) | 7,596 | 10,472 | 7.3 | % | 9.7 | % | 26,772 | 29,260 | 8.5 | % | 9.0 | % | ||||||||||||||||||||||
15,229 | 17,882 | 50,538 | 50,835 | |||||||||||||||||||||||||||||||
Corporate General and | ||||||||||||||||||||||||||||||||||
Administrative Expenses (1) (2) (3) | (3,276 | ) | (3,642 | ) | (1.8 | )% | (2.0 | )% | (13,240 | ) | (10,724 | ) | (2.4 | )% | (1.9 | )% | ||||||||||||||||||
Total Operating Income | $ | 11,953 | $ | 14,240 | 6.6 | % | 7.7 | % | $ | 37,298 | $ | 40,111 | 6.8 | % | 7.3 | % | ||||||||||||||||||
EBITDA (1) | ||||||||||||||||||||||||||||||||||
DAS | ||||||||||||||||||||||||||||||||||
Operating Income | $ | 7,633 | $ | 7,410 | $ | 23,766 | $ | 21,575 | ||||||||||||||||||||||||||
Depreciation and Amortization | 2,621 | 2,903 | 7,386 | 7,200 | ||||||||||||||||||||||||||||||
10,254 | 10,313 | 13.2 | % | 13.5 | % | 31,152 | 28,775 | 13.3 | % | 12.6 | % | |||||||||||||||||||||||
DLT | ||||||||||||||||||||||||||||||||||
Operating Income | 7,596 | 10,472 | 26,772 | 29,260 | ||||||||||||||||||||||||||||||
Depreciation and Amortization | 4,540 | 4,710 | 13,863 | 14,139 | ||||||||||||||||||||||||||||||
12,136 | 15,182 | 11.7 | % | 14.1 | % | 40,635 | 43,399 | 12.9 | % | 13.3 | % | |||||||||||||||||||||||
Corporate General and | ||||||||||||||||||||||||||||||||||
Administrative Expenses | ||||||||||||||||||||||||||||||||||
Operating Loss | (3,276 | ) | (3,642 | ) | (13,240 | ) | (10,724 | ) | ||||||||||||||||||||||||||
Depreciation and Amortization | 41 | 42 | 126 | 122 | ||||||||||||||||||||||||||||||
(3,235 | ) | (3,600 | ) | (13,114 | ) | (10,602 | ) | |||||||||||||||||||||||||||
EBITDA | $ | 19,155 | $ | 21,895 | $ | 58,673 | $ | 61,572 | ||||||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||||||||||
Merger-related expenses (2) | $ | - | $ | 7 | $ | - | $ | 702 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 19,155 | $ | 21,902 | 10.6 | % | 11.9 | % | $ | 58,673 | $ | 62,274 | 10.7 | % | 11.3 | % | ||||||||||||||||||
Capital Expenditures | ||||||||||||||||||||||||||||||||||
DAS | $ | 1,159 | $ | 2,074 | $ | 4,208 | $ | 6,360 | ||||||||||||||||||||||||||
DLT | 866 | 1,472 | 3,046 | 5,921 | ||||||||||||||||||||||||||||||
Corporate Administration | 43 | 21 | 67 | 49 | ||||||||||||||||||||||||||||||
Total Capital Expenditures | $ | 2,068 | $ | 3,567 | $ | 7,321 | $ | 12,330 | ||||||||||||||||||||||||||
___________________ | ||||||||||||||||||||||||||||||||||
(1) Includes costs not allocated to either the DLT or DAS operating segments. | ||||||||||||||||||||||||||||||||||
(2) The nine-month period of 2012 includes merger-related transaction costs of $0.3 million in Corporate General and Administrative Expenses and $0.4 million in DLT resulting from a change in control provision for key certain executives and employees arising in connection with the acquisition of LaBarge Inc. in June 2011. | ||||||||||||||||||||||||||||||||||
(3) The three- and nine-month periods of 2013 include $0.1 million and $1.2 million, respectively, of workers' compensation insurance expenses included in gross profit and not allocated to the operating segments. The three- and nine-month periods of 2012 include $(0.2) million and $0.4 million, respectively, of workers' compensation insurance expenses (credits) included in gross profit and not allocated to the operating segments. | ||||||||||||||||||||||||||||||||||
Source:
Ducommun Incorporated
Joseph P. Bellino
Vice President,
Treasurer and Chief Financial Officer
(310) 513-7211
or
Chris
Witty
Investor Relations
(646) 438-9385
cwitty@darrowir.com