Ducommun Incorporated (NYSE:DCO) (“Ducommun” or the “Company”)
today reported results for its first quarter ended March 31,
2018.
First Quarter 2018
Highlights*
- Revenue of $150.5 million
- Net income of $2.6 million, or $0.22 per diluted share
- Adjusted net income of $2.9 million, or $0.25 per diluted
share
- Adjusted EBITDA of $14.5 million
- Backlog of $820 million
- Completed the acquisition of Certified Thermoplastics Co., LLC
after quarter end
“I’m pleased to report that we had another good
quarter of progress at Ducommun as we position the Company for
greater growth and higher margins through the rest of this year,”
said Stephen G. Oswald, chairman, president and chief executive
officer. “We are seeing meaningful change in many areas of our
operations and booked $2.2 million of restructuring charges during
the period, primarily impacting our structures operations. Overall,
we remain on track to reduce about 17% of our total footprint going
forward. We also continued to reduce costs through a leaner
organization and are confident of achieving approximately $14
million of annualized savings by the start of 2019. A visible
highlight of our efforts is already being realized as the
structures’ segment margins increased 100 basis points sequentially
from the fourth quarter, on an adjusted basis, and I am expecting
further gains as we drive excellence in that area along with the
rest of the Company this year.
“Even while implementing major changes and
significant cost-saving initiatives, our high level of dedication,
service and teamwork has prevented any major customer or
organizational disruptions. In fact, we again hit a record backlog
this quarter -- now nearly $820 million -- reflecting growth across
nearly all aspects of the Company’s markets and customer segments.
We also generated over $10 million of operating cash flow and, in
April, completed the acquisition of Certified Thermoplastics, a
cutting-edge supplier of engineered resins, compounds and alloys.
Due to the ongoing strong demand trends within the commercial
aerospace industry and greater visibility in Washington with regard
to defense spending, we are very confident that Ducommun is on the
right path to higher financial performance.”
*All financial statements in this report (and
henceforth) recognize the implementation of the FASB Accounting
Standards Codification Topic 606 (“ASC 606”), covering policies on
revenue recognition. In some instances herein a reference is made
to the prior ASC, Topic 605 (“ASC 605”), for comparative purposes.
Please see the non-GAAP measures starting on page 8 herein and the
Company’s Annual Report on Form 10-K and Form 10-Q filings with the
Securities and Exchange Commission for further description of this
change.
First Quarter Results
Net revenue for the first quarter of 2018 was
$150.5 million compared to $136.3 million for the first quarter of
2017. The year-over-year increase was primarily due to the
following:
- $14.1 million higher revenue in the Company’s commercial
aerospace end-use markets: $5.8 million of the increase was related
to the adoption of ASC 606 with the remaining mainly due to
increased build rates which favorably impacted the Company’s large
aircraft platforms; and
- $2.9 million higher revenue in the Company’s military and space
end-use markets: $6.5 million of the increase was related to the
adoption of ASC 606 with the remaining decrease mainly due to
shipment timing; partially offset by
- $2.8 million lower revenue in the Company’s industrial end-use
markets: $0.4 million of the decrease was related to the adoption
of ASC 606.
Net income for the first quarter of 2018 was
$2.6 million, or $0.22 per diluted share, compared to $2.1 million,
or $0.18 per diluted share, for the first quarter of 2017. The
year-over-year increase was primarily due to the following:
- $1.8 million of higher gross profit mainly due to higher
revenue;
- $1.5 million of lower selling, general and administrative
expenses; and
- $0.6 million of lower income tax expense; partially offset
by
- $2.2 million of higher restructuring charges; and
- $1.2 million of higher interest expense.
Gross profit for the first quarter of 2018 was
$26.8 million, or 17.8% of revenue compared to gross profit of
$25.0 million, or 18.3% of revenue, for the first quarter of 2017
(0.2% of the decrease was due to the adoption of ASC 606). The
remaining decrease in gross margin percentage year-over-year was
primarily due to higher other manufacturing costs, partially offset
by higher manufacturing volume.
Operating income for the first quarter of 2018
was $5.3 million, or 3.5% of revenue, compared to $4.3 million, or
3.1% of revenue, in the comparable period last year. The 23.6%
year-over-year increase was primarily due to higher revenue,
partially offset by restructuring charges.
Interest expense for the first quarter of 2018
was $2.9 million compared to $1.7 million in the comparable period
of 2017. The year-over-year increase was primarily due to a higher
outstanding balance on the revolving credit facility, mainly due to
the acquisition of Lightning Diversion Systems, LLC during the
third quarter of 2017 and higher interest rates.
Adjusted EBITDA for the first quarter of 2018
was $14.5 million, or 9.6% of revenue, compared to $11.9 million,
or 8.7% of revenue, for the comparable period in 2017, an increase
of 22.3%.
During the first quarter of 2018, the Company
generated $10.3 million of cash flow from operations compared to
$13.2 million during the first quarter of 2017.
The Company’s backlog as of March 31, 2018 was
$820 million compared to $726 million as of December 31, 2017, an
increase of 12.8%.
Electronic Systems
Electronic Systems segment net revenue for the
current-year first quarter was $82.4 million, compared to $78.7
million for the first quarter of 2017. The year-over-year increase
was primarily due to the following:
- $5.6 million higher revenue within the Company’s military and
space end-use markets: $6.1 million of the increase was related to
the adoption of ASC 606 with the remaining decrease mainly due to
shipment timing; and
- $0.9 million higher revenue within the Company’s commercial
aerospace end-use markets: $0.8 million of the increase was related
to the adoption of ASC 606; partially offset by
- $2.8 million lower revenue within the Company's Industrial
end-use markets: $0.4 million of the decrease was related to the
adoption of ASC 606.
Electronic Systems’ segment operating income was
$5.7 million, or 7.0% of revenue, for the first quarter of 2018
compared to $7.1 million, or 9.0% of revenue, for the comparable
quarter in 2017. The year-over-year decrease was primarily due to
unfavorable product mix, restructuring charges, higher other
manufacturing costs, partially offset by favorable manufacturing
volume.
Structural Systems
Structural Systems segment net revenue for the
current-year first quarter was $68.0 million, compared to $57.6
million for the first quarter of 2017. The year-over-year increase
was primarily due to the following:
- $13.2 million higher revenue within the Company’s commercial
aerospace end-use markets: $5.8 million of the increase was related
to the adoption of ASC 606 with the remaining mainly due to
increased build rates which favorably impacted the Company’s large
aircraft platforms; partially offset by
- $2.7 million lower revenue within the Company’s military and
space end-use markets: $0.6 million increase was related to the
adoption of ASC 606 with the remaining mainly due to shipment
timing.
Structural Systems segment operating income for
the current-year first quarter was $4.4 million, or 6.5% of
revenue, compared to $2.8 million, or 4.8% of revenue, for the
first quarter of 2017. The year-over-year increase of $1.6 million
was primarily due to higher manufacturing volume, favorable product
mix, and cost reductions, partially offset by restructuring
charges.
Corporate General and Administrative
(“CG&A”) Expenses
CG&A expenses for the first quarter of 2018
were $4.9 million, or 3.2% of total Company revenue, compared to
$5.6 million, or 4.1% of total Company revenue, for the comparable
quarter in the prior year, a 12.5% decrease. The year-over-year
decrease was primarily due to lower compensation and benefit costs
as a result of the restructuring activities of $1.4 million,
partially offset by higher professional services fees of $0.5
million.
Conference Call
A teleconference hosted by Stephen G. Oswald,
the Company’s chairman, president, and chief executive officer, and
Douglas L. Groves, the Company’s vice president, chief financial
officer and treasurer, will be held today, May 10, 2018 at 2:00
p.m. PT (5:00 p.m. ET) to review these financial results. To
participate in the teleconference, please call 844-239-5278
(international 574-990-1017) approximately ten minutes prior to the
conference time. The participant passcode is 1979663. Mr. Oswald
and Mr. Groves will be speaking on behalf of the Company and
anticipate the call (including Q&A) to last approximately 45
minutes.
This call is being webcast and can be accessed
directly at the Ducommun website at www.ducommun.com. Conference
call replay will be available after that time at the same link or
by dialing 855-859-2056, passcode 1979663.
About Ducommun Incorporated
Ducommun Incorporated delivers value-added
innovative manufacturing solutions to customers in the aerospace,
defense and industrial markets. Founded in 1849, the Company
specializes in two core areas - Electronic Systems and Structural
Systems - to produce complex products and components for commercial
aircraft platforms, mission-critical military and space programs,
and sophisticated industrial applications. For more information,
visit www.ducommun.com.
Forward Looking Statements
This press release and any attachments include
“forward-looking statements,” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, in
particular, earnings guidance, the Company’s restructuring plan and
any statements about the Company’s plans, strategies and prospects.
The Company generally uses the words “may,” “will,” “could,”
“expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend” and
similar expressions in this press release and any attachments to
identify forward-looking statements. The Company bases these
forward-looking statements on its current views with respect to
future events and financial performance. Actual results could
differ materially from those projected in the forward-looking
statements. These forward-looking statements are subject to risks,
uncertainties and assumptions, including, among other things:
whether the anticipated pre-tax restructuring charges will be
sufficient to address all anticipated restructuring costs,
including related to employee separation, facilities consolidation,
inventory write-down and other asset impairments; whether the
expected cost savings from the restructuring will ultimately be
obtained in the amount and during the period anticipated; whether
the restructuring in the affected areas will be sufficient to build
a more cost efficient, focused, higher margin enterprise with
higher returns for the Company's shareholders; the impact of the
Company’s debt service obligations and restrictive debt covenants;
the Company’s end-use markets are cyclical; the Company depends
upon a selected base of industries and customers; a significant
portion of the Company’s business depends upon U.S. Government
defense spending; the Company is subject to extensive regulation
and audit by the Defense Contract Audit Agency; contracts with some
of the Company’s customers contain provisions which give the its
customers a variety of rights that are unfavorable to the Company;
further consolidation in the aerospace industry could adversely
affect the Company’s business and financial results; the Company’s
ability to successfully make acquisitions, including its ability to
successfully integrate, operate or realize the projected benefits
of such businesses; the Company relies on its suppliers to meet the
quality and delivery expectations of its customers; the Company
uses estimates when bidding on fixed-price contracts which
estimates could change and result in adverse effects on its
financial results; the impact of existing and future laws and
regulations; the impact of existing and future accounting standards
and tax rules and regulations; environmental liabilities could
adversely affect the Company’s financial results; cyber security
attacks, internal system or service failures may adversely impact
the Company’s business and operations; and other risks and
uncertainties, including those detailed from time to time in the
Company’s periodic reports filed with the Securities and Exchange
Commission. You should not put undue reliance on any
forward-looking statements. You should understand that many
important factors, including those discussed herein, could cause
the Company’s results to differ materially from those expressed or
suggested in any forward-looking statement. Except as required by
law, the Company does not undertake any obligation to update or
revise these forward-looking statements to reflect new information
or events or circumstances that occur after the date of this news
release or to reflect the occurrence of unanticipated events or
otherwise. Readers are advised to review the Company’s filings with
the Securities and Exchange Commission (which are available from
the SEC’s EDGAR database at www.sec.gov, at various SEC reference
facilities in the United States and through the Company’s
website).
Note Regarding Non-GAAP Financial
Information
This release contains non-GAAP financial
measures, including Adjusted EBITDA (which excludes interest
expense, income tax [benefit] expense, depreciation, amortization,
stock-based compensation expense, and 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. The Company
discloses different non-GAAP financial measures in order to provide
greater transparency and to help the Company’s investors to more
meaningfully evaluate and compare Ducommun’s results to its
previously reported results. The non-GAAP financial measures that
the Company uses may not be comparable to similarly titled
financial measures used by other companies. We define backlog as
potential revenue and is based on customer placed purchase orders
and long-term agreements (“LTAs”) with firm fixed price and firm
delivery dates of 24 months or less. The majority of the LTAs do
not meet the definition of a contract under ASC 606 and thus, the
backlog amount disclosed herein is greater than the backlog amount
disclosed under ASC 606. Backlog is subject to delivery delays or
program cancellations, which are beyond our control. Backlog is
affected by timing differences in the placement of customer orders
and tends to be concentrated in several programs to a greater
extent than our net revenues. Backlog in industrial markets tends
to be of a shorter duration and is generally fulfilled within a
three month period. As a result of these factors, trends in our
overall level of backlog may not be indicative of trends in our
future net revenues.
CONTACTS:
Douglas L. Groves, Vice
President, Chief Financial Officer and Treasurer, 657.335.3665 |
Chris Witty, Investor
Relations, 646.438.9385, cwitty@darrowir.com |
[Financial Tables Follow]
|
DUCOMMUN INCORPORATED AND SUBSIDIARIESCONDENSED
CONSOLIDATED BALANCE SHEETS(Unaudited)(In thousands) |
|
|
|
March 31, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
|
Current Assets |
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,797 |
|
|
$ |
2,150 |
|
Accounts
receivable, net |
|
64,915 |
|
|
74,064 |
|
Contract
assets |
|
78,163 |
|
|
— |
|
Inventories |
|
85,932 |
|
|
122,161 |
|
Production cost of contracts |
|
11,181 |
|
|
11,204 |
|
Other
current assets |
|
12,503 |
|
|
11,435 |
|
Total
Current Assets |
|
254,491 |
|
|
221,014 |
|
Property and equipment,
Net |
|
110,031 |
|
|
110,252 |
|
Goodwill |
|
117,435 |
|
|
117,435 |
|
Intangibles, net |
|
112,154 |
|
|
114,693 |
|
Non-current deferred
income taxes |
|
147 |
|
|
261 |
|
Other assets |
|
3,311 |
|
|
3,098 |
|
Total
Assets |
|
$ |
597,569 |
|
|
$ |
566,753 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
Current
Liabilities |
|
|
|
|
Accounts
payable |
|
$ |
65,042 |
|
|
$ |
51,907 |
|
Contract
liabilities |
|
15,723 |
|
|
— |
|
Accrued
liabilities |
|
22,469 |
|
|
28,329 |
|
Total
Current Liabilities |
|
103,234 |
|
|
80,236 |
|
Long-term debt, less
current portion |
|
209,710 |
|
|
216,055 |
|
Non-current deferred
income taxes |
|
15,775 |
|
|
15,981 |
|
Other long-term
liabilities |
|
21,543 |
|
|
18,898 |
|
Total
Liabilities |
|
350,262 |
|
|
331,170 |
|
Commitments and
contingencies |
|
|
|
|
Shareholders’
Equity |
|
|
|
|
Common
stock |
|
114 |
|
|
113 |
|
Additional paid-in capital |
|
80,523 |
|
|
80,223 |
|
Retained
earnings |
|
173,652 |
|
|
161,364 |
|
Accumulated other comprehensive loss |
|
(6,982 |
) |
|
(6,117 |
) |
Total
Shareholders’ Equity |
|
247,307 |
|
|
235,583 |
|
Total
Liabilities and Shareholders’ Equity |
|
$ |
597,569 |
|
|
$ |
566,753 |
|
|
|
|
|
|
|
|
|
|
|
DUCOMMUN INCORPORATED AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(In thousands, except
per share amounts) |
|
|
|
Three Months Ended |
|
|
March 31, 2018 |
|
April 1, 2017 |
Net Revenues |
|
$ |
150,455 |
|
|
$ |
136,297 |
|
Cost of Sales |
|
123,700 |
|
|
111,292 |
|
Gross Profit |
|
26,755 |
|
|
25,005 |
|
Selling, General and
Administrative Expenses |
|
19,326 |
|
|
20,753 |
|
Restructuring
Charges |
|
2,173 |
|
|
— |
|
Operating Income |
|
5,256 |
|
|
4,252 |
|
Interest Expense |
|
(2,899 |
) |
|
(1,745 |
) |
Income Before
Taxes |
|
2,357 |
|
|
2,507 |
|
Income Tax (Benefit)
Expense |
|
(243 |
) |
|
392 |
|
Net Income |
|
$ |
2,600 |
|
|
$ |
2,115 |
|
Earnings Per Share |
|
|
|
|
Basic
earnings per share |
|
$ |
0.23 |
|
|
$ |
0.19 |
|
Diluted
earnings per share |
|
$ |
0.22 |
|
|
$ |
0.18 |
|
Weighted-Average Number
of Common Shares Outstanding |
|
|
|
|
Basic |
|
11,346 |
|
|
11,208 |
|
Diluted |
|
11,613 |
|
|
11,495 |
|
|
|
|
|
|
Gross Profit % |
|
17.8 |
% |
|
18.3 |
% |
SG&A % |
|
12.8 |
% |
|
15.2 |
% |
Operating Income % |
|
3.5 |
% |
|
3.1 |
% |
Net Income % |
|
1.7 |
% |
|
1.6 |
% |
Effective Tax (Benefit)
Rate |
|
(10.3 |
)% |
|
15.6 |
% |
|
|
|
|
|
|
|
|
DUCOMMUN INCORPORATED AND SUBSIDIARIESBUSINESS SEGMENT
PERFORMANCE(Unaudited)(In thousands) |
|
|
|
Three Months Ended |
|
|
%Change |
|
March 31, 2018 |
|
April 1, 2017 |
|
%of Net Revenues2018 |
|
%of Net Revenues2017 |
Net
Revenues |
|
|
|
|
|
|
|
|
|
|
Structural Systems |
|
18.2 |
% |
|
$ |
68,046 |
|
|
$ |
57,575 |
|
|
45.2 |
% |
|
42.2 |
% |
Electronic Systems |
|
4.7 |
% |
|
82,409 |
|
|
78,722 |
|
|
54.8 |
% |
|
57.8 |
% |
Total Net
Revenues |
|
10.4 |
% |
|
$ |
150,455 |
|
|
$ |
136,297 |
|
|
100.0 |
% |
|
100.0 |
% |
Segment
Operating Income |
|
|
|
|
|
|
|
|
|
|
Structural Systems |
|
|
|
$ |
4,391 |
|
|
$ |
2,784 |
|
|
6.5 |
% |
|
4.8 |
% |
Electronic Systems |
|
|
|
5,744 |
|
|
7,104 |
|
|
7.0 |
% |
|
9.0 |
% |
|
|
|
|
10,135 |
|
|
9,888 |
|
|
|
|
|
Corporate
General and Administrative Expenses (1) |
|
|
|
(4,879 |
) |
|
(5,636 |
) |
|
(3.2 |
)% |
|
(4.1 |
)% |
Total
Operating Income |
|
|
|
$ |
5,256 |
|
|
$ |
4,252 |
|
|
3.5 |
% |
|
3.1 |
% |
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
Structural Systems |
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
|
|
$ |
4,391 |
|
|
$ |
2,784 |
|
|
|
|
|
Depreciation and Amortization |
|
|
|
2,316 |
|
|
2,352 |
|
|
|
|
|
Restructuring Charges |
|
|
|
1,526 |
|
|
— |
|
|
|
|
|
|
|
|
|
8,233 |
|
|
5,136 |
|
|
12.1 |
% |
|
8.9 |
% |
Electronic Systems |
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
|
|
5,744 |
|
|
7,104 |
|
|
|
|
|
Depreciation and Amortization |
|
|
|
3,632 |
|
|
3,423 |
|
|
|
|
|
Restructuring Charges |
|
|
|
520 |
|
|
— |
|
|
|
|
|
|
|
|
|
9,896 |
|
|
10,527 |
|
|
12.0 |
% |
|
13.4 |
% |
Corporate
General and Administrative Expenses (1) |
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
|
(4,879 |
) |
|
(5,636 |
) |
|
|
|
|
Depreciation and Amortization |
|
|
|
33 |
|
|
7 |
|
|
|
|
|
Stock-Based Compensation Expense |
|
|
|
1,090 |
|
|
1,822 |
|
|
|
|
|
Restructuring Charges |
|
|
|
127 |
|
|
— |
|
|
|
|
|
|
|
|
|
(3,629 |
) |
|
(3,807 |
) |
|
|
|
|
Adjusted
EBITDA |
|
|
|
$ |
14,500 |
|
|
$ |
11,856 |
|
|
9.6 |
% |
|
8.7 |
% |
Capital
Expenditures |
|
|
|
|
|
|
|
|
|
|
Structural Systems |
|
|
|
$ |
1,529 |
|
|
$ |
5,188 |
|
|
|
|
|
Electronic Systems |
|
|
|
2,734 |
|
|
1,433 |
|
|
|
|
|
Corporate
Administration |
|
|
|
— |
|
|
— |
|
|
|
|
|
Total
Capital Expenditures |
|
|
|
$ |
4,263 |
|
|
$ |
6,621 |
|
|
|
|
|
(1) Includes costs not allocated to either the Structural
Systems or Electronic Systems operating segments.
|
DUCOMMUN INCORPORATED AND SUBSIDIARIESGAAP TO NON-GAAP
REVENUE AND OPERATING INCOME RECONCILIATION(Unaudited)(In
thousands) |
|
|
|
Three Months Ended |
GAAP To
Non-GAAP Net Revenues |
|
March 31, 2018 |
|
April 1, 2017 |
Total Ducommun Net
Revenues |
|
$ |
150,455 |
|
|
$ |
136,297 |
|
Effect of Adoption of
ASC 606 |
|
(11,997 |
) |
|
— |
|
Adjusted
Total Ducommun Net Revenues |
|
$ |
138,458 |
|
|
$ |
136,297 |
|
|
|
|
|
|
Structural Systems Net
Revenues |
|
$ |
68,046 |
|
|
$ |
57,575 |
|
Effect of Adoption of
ASC 606 |
|
(5,560 |
) |
|
— |
|
Adjusted
Structural Systems Net Revenues |
|
$ |
62,486 |
|
|
$ |
57,575 |
|
|
|
|
|
|
Electronic Systems Net
Revenues |
|
$ |
82,409 |
|
|
$ |
78,722 |
|
Effect of Adoption of
ASC 606 |
|
(6,437 |
) |
|
— |
|
Adjusted
Electronic Systems Net Revenues |
|
$ |
75,972 |
|
|
$ |
78,722 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
GAAP To
Non-GAAP Operating Income |
|
March 31, 2018 |
|
April 1, 2017 |
|
%of Net Revenues2018 |
|
%of Net Revenues2017 |
GAAP Operating
income |
|
$ |
5,256 |
|
|
$ |
4,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating income -
Structural Systems |
|
$ |
4,391 |
|
|
$ |
2,784 |
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Effect of
Adoption of ASC 606 |
|
(2,298 |
) |
|
— |
|
|
|
|
|
Restructuring
charges |
|
1,526 |
|
|
— |
|
|
|
|
|
Adjusted
operating income - Structural Systems |
|
3,619 |
|
|
2,784 |
|
|
5.8% |
|
4.8% |
|
|
|
|
|
|
|
|
|
GAAP Operating income -
Electronic Systems |
|
5,744 |
|
|
7,104 |
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Effect of
Adoption of ASC 606 |
|
504 |
|
|
— |
|
|
|
|
|
Restructuring
charges |
|
520 |
|
|
— |
|
|
|
|
|
Adjusted
operating income - Electronic Systems |
|
6,768 |
|
|
7,104 |
|
|
8.9% |
|
9.0% |
|
|
|
|
|
|
|
|
|
GAAP Operating loss -
Corporate |
|
(4,879 |
) |
|
(5,636 |
) |
|
|
|
|
Adjustment: |
|
|
|
|
|
|
|
|
Restructuring
charges |
|
127 |
|
|
— |
|
|
|
|
|
Adjusted
operating loss - Corporate |
|
(4,752 |
) |
|
(5,636 |
) |
|
|
|
|
Total
adjustments |
|
$ |
379 |
|
|
$ |
— |
|
|
|
|
|
Adjusted operating
income |
|
$ |
5,635 |
|
|
$ |
4,252 |
|
|
4.1% |
|
3.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DUCOMMUN INCORPORATED AND SUBSIDIARIESGAAP TO
NON-GAAP EARNINGS AND EARNINGS PER SHARE
RECONCILIATION(Unaudited)(In thousands, except per share
amounts) |
|
|
|
Three Months Ended |
GAAP To
Non-GAAP Earnings |
|
March 31, 2018 |
|
April 1, 2017 |
GAAP Net income |
|
$ |
2,600 |
|
|
$ |
2,115 |
|
Adjustments: |
|
|
|
|
Effect of
Adoption of ASC 606 (1)(2) |
|
(1,489 |
) |
|
— |
|
Restructuring
charges (2) |
|
1,804 |
|
|
— |
|
Total adjustments |
|
315 |
|
|
— |
|
Adjusted net
income |
|
$ |
2,915 |
|
|
$ |
2,115 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
GAAP Earnings
Per Share To Non-GAAP Earnings Per Share |
|
March 31, 2018 |
|
April 1, 2017 |
GAAP Diluted Earnings
Per Share (“EPS”) |
|
$ |
0.22 |
|
|
$ |
0.18 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Effect of
Adoption of ASC 606 (1)(2) |
|
|
(0.13 |
) |
|
|
— |
|
Restructuring charges (2) |
|
|
0.16 |
|
|
|
— |
|
Total
adjustments |
|
|
0.03 |
|
|
|
— |
|
Adjusted Diluted
EPS |
|
$ |
0.25 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
Shares used for
adjusted diluted EPS |
|
|
11,613 |
|
|
|
11,495 |
|
(1) Net impact of Adoption of ASC 606.
(2) Includes effective tax rate of 17.0% for 2018
adjustments.
|
DUCOMMUN INCORPORATED AND SUBSIDIARIESNON-GAAP BACKLOG
BY REPORTING SEGMENT(Unaudited)(In thousands) |
|
|
|
(In thousands) |
|
|
March 31, 2018 |
|
December 31, 2017 |
Consolidated
Ducommun |
|
|
|
|
Military and space |
|
|
|
|
Defense
electronics |
|
$ |
245,773 |
|
|
$ |
216,508 |
|
Defense
structures |
|
73,183 |
|
|
60,921 |
|
Commercial
aerospace |
|
469,630 |
|
|
417,981 |
|
Industrial |
|
31,177 |
|
|
31,068 |
|
Total |
|
$ |
819,763 |
|
|
$ |
726,478 |
|
Structural
Systems |
|
|
|
|
Military and space
(defense structures) |
|
$ |
73,183 |
|
|
$ |
60,921 |
|
Commercial
aerospace |
|
408,526 |
|
|
361,586 |
|
Total |
|
$ |
481,709 |
|
|
$ |
422,507 |
|
Electronic
Systems |
|
|
|
|
Military and space
(defense electronics) |
|
$ |
245,773 |
|
|
$ |
216,508 |
|
Commercial
aerospace |
|
61,104 |
|
|
56,395 |
|
Industrial |
|
31,177 |
|
|
31,068 |
|
Total |
|
$ |
338,054 |
|
|
$ |
303,971 |
|
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