View printer-friendly versionBacklog Rebounds; Right-Sizing Initiatives Accelerate
Third Quarter 2015 Recap
-
Third quarter revenue was
$161.7 million -
Net loss was
$9.5 million , or$0.86 per share -
EBITDA for the quarter was
$5.5 million -
New financing structure completed with redemption of the
$200 million senior unsecured notes -
Backlog increased to
$553 million
“Despite challenging business conditions persisting through the third
quarter, we stayed the course in working to transform
“Although disappointed with the negative top line impact of prolonged
weakness in our defense markets, we are excited about the continued
growth with the commercial aerospace sector, which drove backlog at the
end of the third quarter to more than
Third Quarter Results
Net revenue for the third quarter of 2015 was
The net loss for the third quarter of 2015 was
Operating loss for the third quarter of 2015 was
Interest expense decreased to
EBITDA for the third quarter of 2015 was
During the third quarter of 2015, the Company used
The Company’s firm backlog as of
Ducommun AeroStructures (“DAS”)
The Company’s DAS segment net revenue for the current third quarter was
DAS segment operating loss for the current third quarter was
Ducommun LaBarge Technologies (“DLT”)
The Company’s DLT segment net revenue for the current third quarter was
DLT’s operating income for the current third quarter was
Corporate General and Administrative Expenses (“CG&A”)
CG&A expenses for the third quarter of 2015 were
New Capital Structure
As previously reported, on
Year-To-Date Results
Net revenue for the nine months ended
The net loss for the nine months ended
Operating income for the nine months ended
Interest expense decreased to
EBITDA for the nine months ended
During the nine months ended
Ducommun AeroStructures (“DAS”)
The Company’s DAS segment net revenue for the nine months ended
DAS segment operating income for the nine months ended
Ducommun LaBarge Technologies (“DLT”)
The Company’s DLT segment net revenue for the nine months ended
DLT’s operating income for the nine months ended
Corporate General and Administrative Expenses (“CG&A”)
CG&A expenses for the nine months ended
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About
Founded in 1849,
Forward Looking Statements
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
Note Regarding Non-GAAP Financial Information
This release contains non-GAAP financial measures, EBITDA (which excludes depreciation and amortization, interest expense, loss on extinguishment of debt, and income tax (benefit) expense), and Adjusted EBITDA (EBITDA, excluding restructuring charges).
The Company believes the presentation of these non-GAAP measures provide important supplemental information to management and investors regarding financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company’s actual and forecasted operating performance, capital resources and cash flow. The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
[Financial Tables Follow]
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (In thousands) | ||||||||
|
October 3, 2015 |
December 31, 2014 |
|||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 12,241 | $ | 45,627 | ||||
| Accounts receivable, net | 86,235 | 91,060 | ||||||
| Inventories | 137,317 | 142,842 | ||||||
| Production cost of contracts | 11,609 | 11,727 | ||||||
| Deferred income taxes | 12,432 | 13,783 | ||||||
| Other current assets | 22,700 | 23,702 | ||||||
| Total Current Assets | 282,534 | 328,741 | ||||||
| Property and Equipment, Net | 98,335 | 99,068 | ||||||
| Goodwill | 157,569 | 157,569 | ||||||
| Intangibles, Net | 147,580 | 155,104 | ||||||
| Other Assets | 6,383 | 7,117 | ||||||
| Total Assets | $ | 692,401 | $ | 747,599 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Current portion of long-term debt | $ | 2,215 | $ | 26 | ||||
| Accounts payable | 50,852 | 58,979 | ||||||
| Accrued liabilities | 43,434 | 52,066 | ||||||
|
Total Current Liabilities |
96,501 | 111,071 | ||||||
| Long-Term Debt, Less Current Portion | 257,820 | 290,026 | ||||||
| Deferred Income Taxes | 69,696 | 69,448 | ||||||
| Other Long-Term Liabilities | 18,913 | 20,484 | ||||||
| Total Liabilities | 442,930 | 491,029 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity | ||||||||
| Common stock | 111 | 110 | ||||||
| Additional paid-in capital | 74,395 | 72,206 | ||||||
| Retained earnings | 181,199 | 190,905 | ||||||
| Accumulated other comprehensive loss | (6,234 | ) | (6,651 | ) | ||||
| Total Shareholders’ Equity | 249,471 | 256,570 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 692,401 | $ | 747,599 | ||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
|
October 3, 2015 |
September 27, 2014 |
October 3, 2015 |
September 27, 2014 |
|||||||||||||||
| As Restated | As Restated | |||||||||||||||||
| Net Revenues | $ | 161,670 | $ | 188,164 | $ | 509,435 | $ | 554,433 | ||||||||||
| Cost of Sales | 141,642 | 155,052 | 431,439 | 447,728 | ||||||||||||||
| Gross Profit | 20,028 | 33,112 | 77,996 | 106,705 | ||||||||||||||
| Selling, General and Administrative Expenses | 21,205 | 23,050 | 64,707 | 65,005 | ||||||||||||||
| Operating (Loss) Income | (1,177 |
) |
|
10,062 | 13,289 | 41,700 | ||||||||||||
| Interest Expense | (3,392 |
) |
|
(6,975 | ) | (16,499 |
) |
|
(21,094 |
) |
||||||||
| Loss on Extinguishment of Debt | (11,878 |
) |
|
— | (14,720 |
) |
|
— | ||||||||||
| Other Income | — | 1,600 | 1,510 | 1,600 | ||||||||||||||
| (Loss) Income Before Taxes | (16,447 |
) |
|
4,687 | (16,420 |
) |
|
22,206 | ||||||||||
| Income Tax (Benefit) Expense | (6,932 |
) |
|
1,754 | (6,714 |
) |
|
7,495 | ||||||||||
| Net (Loss) Income | $ | (9,515 |
) |
|
$ | 2,933 | $ | (9,706 |
) |
|
$ | 14,711 | ||||||
| (Loss) Earnings Per Share | ||||||||||||||||||
| Basic (loss) earnings per share | $ | (0.86 |
) |
|
$ | 0.27 | $ | (0.88 |
) |
|
$ | 1.35 | ||||||
| Diluted (loss) earnings per share | $ | (0.86 |
) |
|
$ | 0.26 | $ | (0.88 |
) |
|
$ | 1.31 | ||||||
| Weighted-Average Number of Common Shares Outstanding | ||||||||||||||||||
| Basic | 11,083 | 10,921 | 11,035 | 10,902 | ||||||||||||||
| Diluted | 11,083 | 11,150 | 11,035 | 11,202 | ||||||||||||||
| Gross Profit % | 12.4 | % | 17.6 | % | 15.3 | % | 19.2 | % | ||||||||||
| SG&A % | 13.1 | % | 12.2 | % | 12.7 | % | 11.7 | % | ||||||||||
| Operating (Loss) Income % | (0.7 |
) |
% |
5.3 | % | 2.6 | % | 7.5 | % | |||||||||
| Net (Loss) Income % | (5.9 |
) |
% |
1.6 | % | (1.9 |
) |
% |
2.7 | % | ||||||||
| Effective Tax (Benefit) Rate | (42.1 |
) |
% |
37.4 | % | (40.9 |
) |
% |
33.8 | % | ||||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
| BUSINESS SEGMENT PERFORMANCE | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
|
% |
October 3, 2015 |
September 27, 2014 |
% |
% |
%
|
October 3, 2015 |
September 27, 2014 |
% |
% |
|||||||||||||||||||||||||||||
| As Restated | As Restated | As Restated | As Restated | |||||||||||||||||||||||||||||||||||
| Net Revenues | ||||||||||||||||||||||||||||||||||||||
| DAS | (21.1 | )% | $ | 64,170 | $ | 81,357 | 39.7 | % | 43.2 | % | (12.1 | )% | $ | 212,306 | $ | 241,627 | 41.7 | % | 43.6 | % | ||||||||||||||||||
| DLT | (8.7 | )% | 97,500 | 106,807 | 60.3 | % | 56.8 | % | (5.0 | )% | 297,129 | 312,806 | 58.3 | % | 56.4 | % | ||||||||||||||||||||||
| Total Net Revenues | (14.1 | )% | $ | 161,670 | $ | 188,164 | 100.0 | % | 100.0 | % | (8.1 | )% | $ | 509,435 | $ | 554,433 | 100.0 | % | 100.0 | % | ||||||||||||||||||
| Segment Operating (Loss) Income | ||||||||||||||||||||||||||||||||||||||
| DAS | $ | (6,028 | ) | $ | 6,908 | (9.4 |
) |
% |
8.5 | % | $ | 2,980 | $ | 28,067 | 1.4 | % | 11.6 | % | ||||||||||||||||||||
| DLT | 8,598 | 8,288 | 8.8 | % | 7.8 | % | 22,575 | 26,089 | 7.6 | % | 8.3 | % | ||||||||||||||||||||||||||
| 2,570 | 15,196 | 25,555 | 54,156 | |||||||||||||||||||||||||||||||||||
| Corporate General and Administrative Expenses (1) | (3,747 | ) | (5,134 | ) | (2.3 |
) |
% |
(2.7 |
) |
% |
(12,266 | ) | (12,456 | ) | (2.4 |
) |
% |
(2.2 |
) |
% |
||||||||||||||||||
| Total Operating (Loss) Income | $ | (1,177 | ) | $ | 10,062 | (0.7 |
) |
% |
5.3 | % | $ | 13,289 | $ | 41,700 | 2.6 | % | 7.5 | % | ||||||||||||||||||||
| EBITDA | ||||||||||||||||||||||||||||||||||||||
| DAS | ||||||||||||||||||||||||||||||||||||||
| Operating (Loss) Income | $ | (6,028 | ) | $ | 6,908 | $ | 2,980 | $ | 28,067 | |||||||||||||||||||||||||||||
| Other Income (2) | — | 1,600 | 1,510 | 1,600 | ||||||||||||||||||||||||||||||||||
| Depreciation and Amortization | 2,386 | 2,272 | 7,009 | 8,242 | ||||||||||||||||||||||||||||||||||
| (3,642 | ) | 10,780 | (5.7 |
) |
% |
13.3 | % | 11,499 | 37,909 | 5.4 | % | 15.7 | % | |||||||||||||||||||||||||
| DLT | ||||||||||||||||||||||||||||||||||||||
| Operating Income | 8,598 | 8,288 | 22,575 | 26,089 | ||||||||||||||||||||||||||||||||||
| Depreciation and Amortization | 4,207 | 4,391 | 12,928 | 13,442 | ||||||||||||||||||||||||||||||||||
| 12,805 | 12,679 | 13.1 | % | 11.9 | % | 35,503 | 39,531 | 11.9 | % | 12.6 | % | |||||||||||||||||||||||||||
| Corporate General and Administrative Expenses | ||||||||||||||||||||||||||||||||||||||
| Operating loss | (3,747 | ) | (5,134 | ) | (12,266 | ) | (12,456 | ) | ||||||||||||||||||||||||||||||
| Depreciation and Amortization | 42 | 41 | 127 | 145 | ||||||||||||||||||||||||||||||||||
| (3,705 | ) | (5,093 | ) | (12,139 | ) | (12,311 | ) | |||||||||||||||||||||||||||||||
| EBITDA | $ | 5,458 | $ | 18,366 | 3.4 | % | 9.8 | % | $ | 34,863 | $ | 65,129 | 6.8 | % | 11.7 | % | ||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
| Restructuring charges (3) | 806 | — | 806 | — | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $6,264 | $18,366 | 3.9 | % | 9.8 | % | $35,669 | $65,129 | 7.0 | % | 11.7 | % | ||||||||||||||||||||||||||
| Capital Expenditures | ||||||||||||||||||||||||||||||||||||||
| DAS | $ | 2,329 | $ | 1,266 | $ | 8,080 | $ | 3,986 | ||||||||||||||||||||||||||||||
| DLT | 758 | 1,761 | 3,196 | 4,736 | ||||||||||||||||||||||||||||||||||
| Corporate Administration | 4 | 1 | 10 | 25 | ||||||||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 3,091 | $ | 3,028 | $ | 11,286 | $ | 8,747 | ||||||||||||||||||||||||||||||
| (1) | Includes costs not allocated to either the DLT or DAS operating segments. | ||
| (2) | Insurance recoveries related to property and equipment. | ||
| (3) | Includes restructuring charges for severance and benefits of approximately $0.5 million and $0.3 million recorded in the DLT and DAS operating segments, respectively. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151104006651/en/
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