Ducommun Incorporated Reports Second Quarter 2024 Results
Ducommun Incorporated (NYSE: DCO) reported strong Q2 2024 results with record quarterly revenue of $197.0 million, up 5.2% year-over-year. The company achieved significant improvements in profitability, with net income increasing 225% to $7.7 million, or $0.52 per diluted share. Gross margin expanded 460 bps to a record 26.0%, while Adjusted EBITDA grew 15% to $30.0 million, representing 15.2% of revenue.
Key highlights include:
- Commercial aerospace revenue up $9.9 million
- Military and space revenue increased $3.2 million
- Non-GAAP adjusted net income rose 72% to $12.5 million
- Strong performance in both Electronic Systems and Structural Systems segments
The company's Vision 2027 strategy is progressing well, with focus on high-quality products and meeting anticipated higher demand in commercial aerospace.
Ducommun Incorporated (NYSE: DCO) ha riportato risultati solidi per il secondo trimestre del 2024 con un fatturato trimestrale record di 197,0 milioni di dollari, in aumento del 5,2% rispetto all'anno precedente. L'azienda ha raggiunto significativi miglioramenti nella redditività, con un aumento del reddito netto del 225% a 7,7 milioni di dollari, pari a 0,52 dollari per azione diluita. Il margine lordo è aumentato di 460 punti base, raggiungendo un record di 26,0%, mentre l'EBITDA rettificato è cresciuto del 15% a 30,0 milioni di dollari, rappresentando il 15,2% del fatturato.
Tra i punti salienti:
- Fatturato dell'aerospaziale commerciale aumentato di 9,9 milioni di dollari
- Fatturato militare e spaziale aumentato di 3,2 milioni di dollari
- Reddito netto rettificato non-GAAP aumentato del 72% a 12,5 milioni di dollari
- Ottime performance nei segmenti dei Sistemi Elettronici e dei Sistemi Strutturali
La strategia Vision 2027 dell'azienda sta progredendo bene, con un focus su prodotti di alta qualità e soddisfacimento della domanda prevista in aumento nell'aerospaziale commerciale.
Ducommun Incorporated (NYSE: DCO) informó resultados sólidos para el segundo trimestre de 2024 con un ingreso trimestral récord de 197.0 millones de dólares, un aumento del 5.2% en comparación con el año anterior. La compañía logró mejoras significativas en rentabilidad, con un incremento del 225% en el ingreso neto a 7.7 millones de dólares, o 0.52 dólares por acción diluida. El margen bruto se expandió en 460 puntos base, alcanzando un récord de 26.0%, mientras que el EBITDA ajustado creció un 15% a 30.0 millones de dólares, representando el 15.2% de los ingresos.
Los aspectos destacados incluyen:
- Ingreso del aerospacial comercial aumentado en 9.9 millones de dólares
- Ingreso militar y espacial incrementado en 3.2 millones de dólares
- Ingreso neto ajustado no-GAAP aumentado un 72% a 12.5 millones de dólares
- Fuerte desempeño en los segmentos de Sistemas Electrónicos y Sistemas Estructurales
La estrategia Vision 2027 de la empresa está avanzando bien, con un enfoque en productos de alta calidad y en satisfacer la demanda anticipada creciente en el aerospacial comercial.
Ducommun Incorporated (NYSE: DCO)는 2024년 2분기 실적에서 분기별 수익이 1억 9700만 달러로 기록적인 성과를 올렸으며, 이는 전년 대비 5.2% 증가한 수치입니다. 회사는 수익성에서 중요한 개선을 이루었으며, 순이익이 225% 증가하여 770만 달러, 또는 희석 주당 0.52달러에 달했습니다. 총 매출 총이익률은 460bp 확장되어 기록적인 26.0%에 도달했으며, 조정된 EBITDA는 15% 증가하여 3000만 달러, 즉 총 수익의 15.2%를 나타냈습니다.
주요 하이라이트는 다음과 같습니다:
- 상업 항공우주 수익 990만 달러 증가
- 군사 및 우주 수익 320만 달러 증가
- 비 GAAP 조정 순이익이 72% 증가하여 1250만 달러에 도달
- 전자 시스템 및 구조 시스템 부문 모두에서 강력한 실적
회사의 비전 2027 전략은 고품질 제품에 집중하며 상업 항공우주 분야의 예상 수요 증가를 충족하는 데 잘 진행되고 있습니다.
Ducommun Incorporated (NYSE: DCO) a annoncé de solides résultats pour le deuxième trimestre 2024 avec un chiffre d'affaires trimestriel record de 197,0 millions de dollars, en hausse de 5,2 % par rapport à l'année précédente. L'entreprise a réalisé d'importantes améliorations en matière de rentabilité, avec un revenu net en hausse de 225% à 7,7 millions de dollars, soit 0,52 dollar par action diluée. La marge brute a augmenté de 460 points de base pour atteindre un record de 26,0%, tandis que l'EBITDA ajusté a progressé de 15 % pour atteindre 30,0 millions de dollars, ce qui représente 15,2 % du chiffre d'affaires.
Les points forts incluent :
- Revenu de l'aérospatial commercial en hausse de 9,9 millions de dollars
- Revenu militaire et spatial en hausse de 3,2 millions de dollars
- Revenu net ajusté non-GAAP en hausse de 72 % à 12,5 millions de dollars
- Forte performance dans les segments Systèmes Électroniques et Systèmes Structuraux
La stratégie Vision 2027 de l'entreprise progresse bien, en mettant l'accent sur des produits de haute qualité et en répondant à une demande anticipée croissante dans l'aérospatial commercial.
Ducommun Incorporated (NYSE: DCO) berichtete von starken Ergebnissen im 2. Quartal 2024 mit einem Rekordumsatz von 197,0 Millionen US-Dollar, was einem Anstieg von 5,2% im Jahresvergleich entspricht. Das Unternehmen erzielte erhebliche Verbesserungen bei der Rentabilität, wobei der Nettogewinn um 225% auf 7,7 Millionen US-Dollar oder 0,52 US-Dollar pro verwässerter Aktie anstieg. Die Bruttomarge erweiterte sich um 460 Basispunkte auf einen Rekordwert von 26,0%, während das bereinigte EBITDA um 15% auf 30,0 Millionen US-Dollar wuchs, was 15,2% des Umsatzes entspricht.
Wichtige Highlights sind:
- Umsatz im kommerziellen Aerospace um 9,9 Millionen US-Dollar gestiegen
- Umsatz aus Militär und Raumfahrt um 3,2 Millionen US-Dollar gestiegen
- Bereinigter Nettogewinn nach Non-GAAP um 72% auf 12,5 Millionen US-Dollar gestiegen
- Starke Leistung in den Segmenten Elektronische Systeme und Struktur Systeme
Die Unternehmensstrategie Vision 2027 entwickelt sich gut mit einem Fokus auf hochwertige Produkte und der Erfüllung der prognostizierten höheren Nachfrage im kommerziellen Aerospace.
- Record quarterly revenue of $197.0 million, up 5.2% year-over-year
- Net income increased 225% to $7.7 million, or $0.52 per diluted share
- Gross margin expanded 460 bps to a record 26.0%
- Adjusted EBITDA grew 15% to $30.0 million, representing 15.2% of revenue
- Commercial aerospace revenue up $9.9 million due to higher production on selected aircraft platforms
- Military and space revenue increased $3.2 million
- Non-GAAP adjusted net income rose 72% to $12.5 million
- Electronic Systems segment operating income increased to $16.8 million, or 16.6% of revenue
- Structural Systems segment operating income grew to $10.6 million, or 11.0% of revenue
- Industrial end-use markets revenue decreased $3.4 million
- Higher SG&A expenses of $5.7 million, partly due to professional fees related to unsolicited acquisition offer
- Lower net cash provided by operations at $3.5 million compared to $9.2 million in Q2 2023
Ducommun's Q2 2024 results demonstrate strong financial performance. Revenue increased 5.2% year-over-year to a record
Net income surged
Ducommun's balance sheet remains solid, with
Ducommun's Q2 results reflect the ongoing recovery in the commercial aerospace sector. The
The company's participation in the Farnborough Air Show highlights its strong position in the aerospace supply chain. Ducommun's focus on quality and on-time delivery is crucial, especially given the industry-wide challenges in quality and supply chain constraints. The numerous OEM customer awards received over the past 18 months underscore Ducommun's operational excellence and reliability as a supplier.
Looking ahead, Ducommun appears well-positioned to capitalize on the anticipated higher demand for commercial aerospace products in late 2024 and 2025. The company's ability to maintain production rates despite temporary OEM slowdowns demonstrates its resilience and adaptability in a dynamic market environment.
Record Quarterly Revenue and Gross Margins
COSTA MESA, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today reported results for its second quarter ended June 29, 2024.
Second Quarter 2024 Recap
- Net revenue was
$197.0 million , an increase of5.2% over Q2 2023 - Net income of
$7.7 million (increase of225% year-over-year), or$0.52 per diluted share, or3.9% of revenue, up 260 bps year-over-year - Non-GAAP adjusted net income of
$12.5 million (increase of72% year-over-year), or$0.83 per diluted share - Gross margin of
26.0% , year-over-year growth of 460 bps - Adjusted EBITDA of
$30.0 million (increase of15% year-over-year), or15.2% of revenue, up 130 bps year-over-year
“Q2 was another outstanding quarter for DCO as we grew our topline both year-over-year and sequentially, led by strength in both of our Commercial Aerospace and Military segments along with strong quarterly gross margins and Adjusted EBITDA margins,” said Stephen G. Oswald, chairman, president and chief executive officer. “Net revenue was a quarterly record
"The other big news is Ducommun delivered a new quarterly record for gross margin, expanding 460 bps year-over-year from
“In December 2022, we laid out our Vision 2027 Plan to investors and now halfway through year two of the Plan, we have made solid progress in achieving our revenue and especially EBITDA margin growth targets. The team is driving the business and on track to deliver our longer-term goals as we remain relentless on meeting the commitments.
“Ducommun was also a participant at the Farnborough Air Show last month where there was significant focus on the quality challenges and supply chain constraints in the industry. I am proud of the Ducommun team for being laser focused on delivering high quality products to our customers, on-time while maintaining a strong position to meet the anticipated higher demand for Commercial Aerospace products later this year and in 2025. It also shows in our numerous A&D OEM customer awards over the last 18 months recognizing our performance.”
Second Quarter Results
Net revenue for the second quarter of 2024 was
$9.9 million higher revenue in the Company’s commercial aerospace end-use markets due to higher production on selected single-aisle and twin-aisle aircraft, buffer stock build for the Monrovia performance center closure, and growth in regional and business aircraft platforms, partially offset by lower revenues from in-flight entertainment; and$3.2 million higher revenue in the Company’s military and space end-use markets due to higher rates on rotary-wing aircraft and naval platforms, partially offset by lower rates on fixed-wing aircraft platforms.
In addition, revenue for the Company’s industrial end-use markets for the second quarter of 2024 decreased
Net income for the second quarter of 2024 was
Gross profit for the second quarter of 2024 was
Operating income for the second quarter of 2024 was
Adjusted EBITDA for the second quarter of 2024 was
Interest expense for the second quarter of 2024 was
During the second quarter of 2024, the net cash provided by operations was
Business Segment Information
Electronic Systems
Electronic Systems segment net revenue for the quarter ended June 29, 2024 was
$1.8 million lower revenue within the Company’s military and space end-use markets due to lower rates on fixed-wing aircraft platforms, partially offset by higher rates on naval and submarine platforms and rotary-wing aircraft platforms; and$0.5 million lower revenue in the Company’s commercial aerospace end-use markets due to lower in-flight entertainment revenues, partially offset by higher rates on regional and business aircraft and large aircraft platforms.
In addition, revenue for the Company’s industrial end-use markets for the second quarter of 2024 decreased
Electronic Systems segment operating income for the quarter ended June 29, 2024 was
Structural Systems
Structural Systems segment net revenue for the quarter ended June 29, 2024 was
$10.4 million higher revenue within the Company’s commercial aerospace end-use markets due to higher production on selected single-aisle and twin-aisle aircraft, buffer stock build for the Monrovia performance center closure, and growth in various business jet platforms; and$5.0 million higher revenue within the Company’s military and space end-use markets due to higher rates on fixed-wing and rotary-wing aircraft platforms.
Structural Systems segment operating income for the quarter ended June 29, 2024 was
Corporate General and Administrative (“CG&A”) Expenses
CG&A expenses for the second quarter of 2024 were
Conference Call
A teleconference hosted by Stephen G. Oswald, the Company’s chairman, president and chief executive officer, and Suman B. Mookerji, the Company’s senior vice president, chief financial officer will be held today, August 8, 2024 at 10:00 a.m. PT (1:00 p.m. ET) to review these financial results. To access the conference call, please pre-register using the following registration link:
https://register.vevent.com/register/BI56958946b480425da35343eca4b411bf
Registrants will receive a confirmation with dial-in details. Mr. Oswald and Mr. Mookerji will be speaking on behalf of the Company and anticipate the call (including Q&A) to last approximately 45 minutes. A live webcast of the event can be accessed using the link above. A replay of the webcast will be available on the Ducommun website at Ducommun.com.
Additional information regarding Ducommun's results can be found in the Q2 2024 Earnings Presentation available at Ducommun.com.
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 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, any statements about the Company's 2027 Vision Strategy, long-term goals and the anticipated demand for commercial aerospace products through 2025. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “continue” 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 strength of the real estate market, the duration of any lease entered into as part of any sale-leaseback transaction, the amount of commissions owed to brokers, and applicable tax rates; 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; the ultimate geographic spread, duration and severity of the coronavirus (COVID-19) outbreak, and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or treat its impact, 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, August 8, 2024, 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).
Note Regarding Non-GAAP Financial Information
This release contains non-GAAP financial measures, including Adjusted EBITDA (which excludes interest expense, income tax expense, depreciation, amortization, stock-based compensation expense, restructuring charges, professional fees related to unsolicited non-binding acquisition offer, Guaymas fire related expenses, other fire related expenses, insurance recoveries related to loss on operating assets, insurance recoveries related to business interruption, and inventory purchase accounting adjustments), including as a percentage of revenue, non-GAAP operating income, including as a percentage of net revenues, non-GAAP earnings, non-GAAP earnings per share, and backlog. In addition, certain other prior period amounts have been reclassified to conform to current year’s presentation.
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.
The Company defines backlog as potential revenue and is based on customer placed purchase orders and long-term agreements (“LTAs”) with firm fixed price and expected 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 remaining performance obligations disclosed under ASC 606. Backlog is subject to delivery delays or program cancellations, which are beyond the Company’s 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 the Company’s net revenues. As a result of these factors, trends in the Company’s overall level of backlog may not be indicative of trends in the Company’s future net revenues.
CONTACT:
Suman Mookerji, Senior Vice President, Chief Financial Officer, 657.335.3665
| DUCOMMUN INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) | ||||||
| June 29, 2024 | December 31, 2023 | |||||
| Assets | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 29,405 | $ | 42,863 | ||
| Accounts receivable, net | 106,585 | 104,692 | ||||
| Contract assets | 210,314 | 177,686 | ||||
| Inventories | 201,831 | 199,201 | ||||
| Production cost of contracts | 6,181 | 7,778 | ||||
| Other current assets | 14,398 | 17,349 | ||||
| Total Current Assets | 568,714 | 549,569 | ||||
| Property and Equipment, Net | 111,299 | 111,379 | ||||
| Operating Lease Right-of-Use Assets | 27,128 | 29,513 | ||||
| Goodwill | 244,600 | 244,600 | ||||
| Intangibles, Net | 157,967 | 166,343 | ||||
| Deferred income taxes | 641 | 641 | ||||
| Other Assets | 21,151 | 18,874 | ||||
| Total Assets | $ | 1,131,500 | $ | 1,120,919 | ||
| Liabilities and Shareholders’ Equity | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ | 76,810 | $ | 72,265 | ||
| Contract liabilities | 50,034 | 53,492 | ||||
| Accrued and other liabilities | 40,293 | 42,260 | ||||
| Operating lease liabilities | 7,943 | 7,873 | ||||
| Current portion of long-term debt | 10,938 | 7,813 | ||||
| Total Current Liabilities | 186,018 | 183,703 | ||||
| Long-Term Debt, Less Current Portion | 250,896 | 256,961 | ||||
| Non-Current Operating Lease Liabilities | 20,414 | 22,947 | ||||
| Deferred Income Taxes | 2,945 | 4,766 | ||||
| Other Long-Term Liabilities | 15,328 | 16,448 | ||||
| Total Liabilities | 475,601 | 484,825 | ||||
| Commitments and Contingencies | ||||||
| Shareholders’ Equity | ||||||
| Common Stock | 147 | 146 | ||||
| Additional Paid-In Capital | 208,930 | 206,197 | ||||
| Retained Earnings | 436,553 | 421,980 | ||||
| Accumulated Other Comprehensive Income | 10,269 | 7,771 | ||||
| Total Shareholders’ Equity | 655,899 | 636,094 | ||||
| Total Liabilities and Shareholders’ Equity | $ | 1,131,500 | $ | 1,120,919 | ||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
| Net Revenues | $ | 197,000 | $ | 187,320 | $ | 387,847 | $ | 368,511 | ||||||||
| Cost of Sales | 145,761 | 147,198 | 289,665 | 291,622 | ||||||||||||
| Gross Profit | 51,239 | 40,122 | 98,182 | 76,889 | ||||||||||||
| Selling, General and Administrative Expenses | 36,061 | 30,348 | 69,012 | 56,573 | ||||||||||||
| Restructuring Charges | 1,254 | 4,769 | 2,624 | 8,939 | ||||||||||||
| Operating Income | 13,924 | 5,005 | 26,546 | 11,377 | ||||||||||||
| Interest Expense | (3,975 | ) | (5,735 | ) | (7,858 | ) | (9,954 | ) | ||||||||
| Other Income | — | 4,059 | — | 7,945 | ||||||||||||
| Income Before Taxes | 9,949 | 3,329 | 18,688 | 9,368 | ||||||||||||
| Income Tax Expense | 2,225 | 955 | 4,115 | 1,763 | ||||||||||||
| Net Income | $ | 7,724 | $ | 2,374 | $ | 14,573 | $ | 7,605 | ||||||||
| Earnings Per Share | ||||||||||||||||
| Basic earnings per share | $ | 0.52 | $ | 0.18 | $ | 0.99 | $ | 0.59 | ||||||||
| Diluted earnings per share | $ | 0.52 | $ | 0.17 | $ | 0.97 | $ | 0.58 | ||||||||
| Weighted-Average Number of Common Shares Outstanding | ||||||||||||||||
| Basic | 14,775 | 13,403 | 14,735 | 12,799 | ||||||||||||
| Diluted | 14,961 | 13,599 | 14,954 | 13,075 | ||||||||||||
| Gross Profit % | 26.0 | % | 21.4 | % | 25.3 | % | 20.9 | % | ||||||||
| SG&A % | 18.3 | % | 16.2 | % | 17.8 | % | 15.4 | % | ||||||||
| Operating Income % | 7.1 | % | 2.7 | % | 6.8 | % | 3.1 | % | ||||||||
| Net Income % | 3.9 | % | 1.3 | % | 3.8 | % | 2.1 | % | ||||||||
| Effective Tax Rate | 22.4 | % | 28.7 | % | 22.0 | % | 18.8 | % | ||||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (Unaudited) (Dollars in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
| GAAP net income | $ | 7,724 | $ | 2,374 | $ | 14,573 | $ | 7,605 | ||||||||
| Non-GAAP Adjustments: | ||||||||||||||||
| Interest expense | 3,975 | 5,735 | 7,858 | 9,954 | ||||||||||||
| Income tax expense | 2,225 | 955 | 4,115 | 1,763 | ||||||||||||
| Depreciation | 4,038 | 3,932 | 8,054 | 7,672 | ||||||||||||
| Amortization | 4,207 | 4,022 | 8,544 | 8,271 | ||||||||||||
| Stock-based compensation expense (1) | 4,028 | 5,036 | 8,286 | 8,117 | ||||||||||||
| Restructuring charges | 2,111 | 4,769 | 3,481 | 8,939 | ||||||||||||
| Professional fees related to unsolicited non-binding acquisition offer | 1,374 | — | 1,374 | — | ||||||||||||
| Guaymas fire related expenses | — | 1,880 | — | 3,348 | ||||||||||||
| Other fire related expenses | — | 477 | — | 477 | ||||||||||||
| Insurance recoveries related to loss on operating assets | — | (1,677 | ) | — | (5,563 | ) | ||||||||||
| Insurance recoveries related to business interruption | — | (2,160 | ) | — | (2,160 | ) | ||||||||||
| Inventory purchase accounting adjustments | 291 | 766 | 1,082 | 766 | ||||||||||||
| Adjusted EBITDA | $ | 29,973 | $ | 26,109 | $ | 57,367 | $ | 49,189 | ||||||||
| Net income as a % of net revenues | 3.9 | % | 1.3 | % | 3.8 | % | 2.1 | % | ||||||||
| Adjusted EBITDA as a % of net revenues | 15.2 | % | 13.9 | % | 14.8 | % | 13.3 | % | ||||||||
(1) The three and six months ended June 29, 2024 included
| DUCOMMUN INCORPORATED AND SUBSIDIARIES BUSINESS SEGMENT PERFORMANCE (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
| % Change | June 29, 2024 | July 1, 2023 | % of Net Revenues 2024 | % of Net Revenues 2023 | % Change | June 29, 2024 | July 1, 2023 | % of Net Revenues 2024 | % of Net Revenues 2023 | ||||||||||||||||||||||||
| Net Revenues | |||||||||||||||||||||||||||||||||
| Electronic Systems | (5.3) | % | $ | 101,440 | $ | 107,124 | 51.5 | % | 57.2 | % | (1.8) | % | $ | 208,979 | $ | 212,750 | 53.9 | % | 57.7 | % | |||||||||||||
| Structural Systems | 19.2 | % | 95,560 | 80,196 | 48.5 | % | 42.8 | % | 14.8 | % | 178,868 | 155,761 | 46.1 | % | 42.3 | % | |||||||||||||||||
| Total Net Revenues | 5.2 | % | $ | 197,000 | $ | 187,320 | 100.0 | % | 100.0 | % | 5.2 | % | $ | 387,847 | $ | 368,511 | 100.0 | % | 100.0 | % | |||||||||||||
| Segment Operating Income | |||||||||||||||||||||||||||||||||
| Electronic Systems | $ | 16,806 | $ | 9,528 | 16.6 | % | 8.9 | % | $ | 35,775 | $ | 19,539 | 17.1 | % | 9.2 | % | |||||||||||||||||
| Structural Systems | 10,559 | 5,385 | 11.0 | % | 6.7 | % | 13,427 | 10,130 | 7.5 | % | 6.5 | % | |||||||||||||||||||||
| 27,365 | 14,913 | 49,202 | 29,669 | ||||||||||||||||||||||||||||||
| Corporate General and Administrative Expenses (1) | (13,441 | ) | (9,908 | ) | (6.8) | % | (5.3) | % | (22,656 | ) | (18,292 | ) | (5.8) | % | (5.0) | % | |||||||||||||||||
| Total Operating Income | $ | 13,924 | $ | 5,005 | 7.1 | % | 2.7 | % | $ | 26,546 | $ | 11,377 | 6.8 | % | 3.1 | % | |||||||||||||||||
| Adjusted EBITDA | |||||||||||||||||||||||||||||||||
| Electronic Systems | |||||||||||||||||||||||||||||||||
| Operating Income | $ | 16,806 | $ | 9,528 | $ | 35,775 | $ | 19,539 | |||||||||||||||||||||||||
| Other Income | — | 222 | — | 222 | |||||||||||||||||||||||||||||
| Depreciation and Amortization | 3,662 | 3,561 | 7,294 | 7,059 | |||||||||||||||||||||||||||||
| Stock-Based Compensation Expense (2) | 91 | 119 | 171 | 251 | |||||||||||||||||||||||||||||
| Restructuring Charges | — | 2,071 | 459 | 3,945 | |||||||||||||||||||||||||||||
| 20,559 | 15,501 | 20.3 | % | 14.5 | % | 43,699 | 31,016 | 20.9 | % | 14.6 | % | ||||||||||||||||||||||
| Structural Systems | |||||||||||||||||||||||||||||||||
| Operating Income | 10,559 | 5,385 | 13,427 | 10,130 | |||||||||||||||||||||||||||||
| Depreciation and Amortization | 4,547 | 4,335 | 9,209 | 8,767 | |||||||||||||||||||||||||||||
| Stock-Based Compensation Expense (3) | 70 | 101 | 156 | 203 | |||||||||||||||||||||||||||||
| Restructuring Charges | 2,111 | 2,612 | 3,022 | 4,908 | |||||||||||||||||||||||||||||
| Guaymas fire related expenses | — | 1,880 | — | 3,348 | |||||||||||||||||||||||||||||
| Other fire related expenses | — | 477 | — | 477 | |||||||||||||||||||||||||||||
| Inventory Purchase Accounting Adjustments | 291 | 766 | 1,082 | 766 | |||||||||||||||||||||||||||||
| 17,578 | 15,556 | 18.4 | % | 19.4 | % | 26,896 | 28,599 | 15.0 | % | 18.4 | % | ||||||||||||||||||||||
| Corporate General and Administrative Expenses (1) | |||||||||||||||||||||||||||||||||
| Operating loss | (13,441 | ) | (9,908 | ) | (22,656 | ) | (18,292 | ) | |||||||||||||||||||||||||
| Depreciation and Amortization | 36 | 58 | 95 | 117 | |||||||||||||||||||||||||||||
| Stock-Based Compensation Expense (4) | 3,867 | 4,816 | 7,959 | 7,663 | |||||||||||||||||||||||||||||
| Restructuring Charges | — | 86 | — | 86 | |||||||||||||||||||||||||||||
| Professional Fees Related to Unsolicited Non-Binding Acquisition Offer | 1,374 | — | 1,374 | — | |||||||||||||||||||||||||||||
| (8,164 | ) | (4,948 | ) | (13,228 | ) | (10,426 | ) | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 29,973 | $ | 26,109 | 15.2 | % | 13.9 | % | $ | 57,367 | $ | 49,189 | 14.8 | % | 13.3 | % | |||||||||||||||||
| Capital Expenditures | |||||||||||||||||||||||||||||||||
| Electronic Systems | $ | 1,143 | $ | 1,923 | $ | 1,939 | $ | 3,774 | |||||||||||||||||||||||||
| Structural Systems | 1,353 | 4,111 | 2,877 | 7,241 | |||||||||||||||||||||||||||||
| Corporate Administration | 723 | — | 3,148 | — | |||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 3,219 | $ | 6,034 | $ | 7,964 | $ | 11,015 | |||||||||||||||||||||||||
(1) Includes costs not allocated to either the Electronic Systems or Structural Systems operating segments.
(2) The three and six months ended June 29, 2024 each included less than
(3) The three and six months ended June 29, 2024 included less than
(4) The three and six months ended June 29, 2024 included
| DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP OPERATING INCOME RECONCILIATION (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| GAAP To Non-GAAP Operating Income | June 29, 2024 | July 1, 2023 | % of Net Revenues 2024 | % of Net Revenues 2023 | June 29, 2024 | July 1, 2023 | % of Net Revenues 2024 | % of Net Revenues 2023 | |||||||||||||||||||
| GAAP operating income | $ | 13,924 | $ | 5,005 | $ | 26,546 | $ | 11,377 | |||||||||||||||||||
| GAAP operating income - Electronic Systems | $ | 16,806 | $ | 9,528 | $ | 35,775 | $ | 19,539 | |||||||||||||||||||
| Adjustments to GAAP operating income - Electronic Systems: | |||||||||||||||||||||||||||
| Other income | — | 222 | — | 222 | |||||||||||||||||||||||
| Restructuring charges | — | 2,071 | 459 | 3,945 | |||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 374 | 374 | 747 | 747 | |||||||||||||||||||||||
| Total adjustments to GAAP operating income - Electronic Systems | 374 | 2,667 | 1,206 | 4,914 | |||||||||||||||||||||||
| Non-GAAP adjusted operating income - Electronic Systems | 17,180 | 12,195 | 16.9 | % | 11.4 | % | 36,981 | 24,453 | 17.7 | % | 11.5 | % | |||||||||||||||
| GAAP operating income - Structural Systems | 10,559 | 5,385 | 13,427 | 10,130 | |||||||||||||||||||||||
| Adjustments to GAAP operating income - Structural Systems: | |||||||||||||||||||||||||||
| Restructuring charges | 2,111 | 2,612 | 3,022 | 4,908 | |||||||||||||||||||||||
| Guaymas fire related expenses | — | 1,880 | — | 3,348 | |||||||||||||||||||||||
| Other fire related expenses | — | 477 | — | 477 | |||||||||||||||||||||||
| Inventory purchase accounting adjustments | 291 | 766 | 1,082 | 766 | |||||||||||||||||||||||
| Amortization of acquisition-related intangible assets | 1,785 | 1,701 | 3,719 | 2,938 | |||||||||||||||||||||||
| Total adjustments to GAAP operating income - Structural Systems | 4,187 | 7,436 | 7,823 | 12,437 | |||||||||||||||||||||||
| Non-GAAP adjusted operating income - Structural Systems | 14,746 | 12,821 | 15.4 | % | 16.0 | % | 21,250 | 22,567 | 11.9 | % | 14.5 | % | |||||||||||||||
| GAAP operating loss - Corporate | (13,441 | ) | (9,908 | ) | (22,656 | ) | (18,292 | ) | |||||||||||||||||||
| Adjustments to GAAP Operating Income - Corporate | |||||||||||||||||||||||||||
| Restructuring charges | — | 86 | — | 86 | |||||||||||||||||||||||
| Professional fees related to unsolicited non-binding acquisition offer | 1,374 | — | 1,374 | — | |||||||||||||||||||||||
| Total adjustments to GAAP Operating Income - Corporate | 1,374 | 86 | 1,374 | 86 | |||||||||||||||||||||||
| Non-GAAP adjusted operating loss - Corporate | (12,067 | ) | (9,822 | ) | (21,282 | ) | (18,206 | ) | |||||||||||||||||||
| Total non-GAAP adjustments to GAAP operating income | 5,935 | 10,189 | 10,403 | 17,437 | |||||||||||||||||||||||
| Non-GAAP adjusted operating income | $ | 19,859 | $ | 15,194 | 10.1 | % | 8.1 | % | $ | 36,949 | $ | 28,814 | 9.5 | % | 7.8 | % | |||||||||||
| DUCOMMUN INCORPORATED AND SUBSIDIARIES GAAP TO NON-GAAP NET INCOME AND EARNINGS PER SHARE RECONCILIATION (Unaudited) (Dollars in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| GAAP To Non-GAAP Net Income | June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||
| GAAP net income | $ | 7,724 | $ | 2,374 | $ | 14,573 | $ | 7,605 | |||||||
| Adjustments to GAAP net income: | |||||||||||||||
| Restructuring charges | 2,111 | 4,769 | 3,481 | 8,939 | |||||||||||
| Professional fees related to unsolicited non-binding acquisition offer | 1,374 | — | 1,374 | — | |||||||||||
| Guaymas fire related expenses | — | 1,880 | — | 3,348 | |||||||||||
| Other fire related expenses | — | 477 | — | 477 | |||||||||||
| Insurance recoveries related to loss on operating assets | — | (1,677 | ) | — | (5,563 | ) | |||||||||
| Insurance recoveries related to business interruption | — | (2,160 | ) | — | (2,160 | ) | |||||||||
| Inventory purchase accounting adjustments | 291 | 766 | 1,082 | 766 | |||||||||||
| Amortization of acquisition-related intangible assets | 2,159 | 2,075 | 4,466 | 3,685 | |||||||||||
| Total adjustments to GAAP net income before provision for income taxes | 5,935 | 6,130 | 10,403 | 9,492 | |||||||||||
| Income tax effect on non-GAAP adjustments (1) | (1,187 | ) | (1,226 | ) | (2,081 | ) | (1,898 | ) | |||||||
| Non-GAAP adjusted net income | $ | 12,472 | $ | 7,278 | $ | 22,895 | $ | 15,199 | |||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| GAAP Earnings Per Share To Non-GAAP Earnings Per Share | June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||
| GAAP diluted earnings per share (“EPS”) | $ | 0.52 | $ | 0.17 | $ | 0.97 | $ | 0.58 | |||||||
| Adjustments to GAAP diluted EPS: | |||||||||||||||
| Restructuring charges | 0.14 | 0.35 | 0.24 | 0.68 | |||||||||||
| Professional fees related to unsolicited non-binding acquisition offer | 0.09 | — | 0.09 | — | |||||||||||
| Guaymas fire related expenses | — | 0.14 | — | 0.26 | |||||||||||
| Other fire related expenses | — | 0.04 | — | 0.04 | |||||||||||
| Insurance recoveries related to loss on operating assets | — | (0.12 | ) | — | (0.43 | ) | |||||||||
| Insurance recoveries related to business interruption | — | (0.16 | ) | — | (0.16 | ) | |||||||||
| Inventory purchase accounting adjustments | 0.02 | 0.06 | 0.07 | 0.06 | |||||||||||
| Amortization of acquisition-related intangible assets | 0.14 | 0.15 | 0.30 | 0.28 | |||||||||||
| Total adjustments to GAAP diluted EPS before provision for income taxes | 0.39 | 0.46 | 0.70 | 0.73 | |||||||||||
| Income tax effect on non-GAAP adjustments (1) | (0.08 | ) | (0.09 | ) | (0.14 | ) | (0.15 | ) | |||||||
| Non-GAAP adjusted diluted EPS | $ | 0.83 | $ | 0.54 | $ | 1.53 | $ | 1.16 | |||||||
| Shares used for non-GAAP adjusted diluted EPS | 14,961 | 13,599 | 14,954 | 13,075 | |||||||||||
(1) Effective tax rate of
| DUCOMMUN INCORPORATED AND SUBSIDIARIES NON-GAAP BACKLOG* BY REPORTING SEGMENT (Unaudited) (Dollars in thousands) | |||||
| June 29, 2024 | December 31, 2023 | ||||
| Consolidated Ducommun | |||||
| Military and space | $ | 592,476 | $ | 527,143 | |
| Commercial aerospace | 451,070 | 429,494 | |||
| Industrial | 24,469 | 36,931 | |||
| Total | $ | 1,068,015 | $ | 993,568 | |
| Electronic Systems | |||||
| Military and space | $ | 447,441 | $ | 397,681 | |
| Commercial aerospace | 85,601 | 87,994 | |||
| Industrial | 24,469 | 36,931 | |||
| Total | $ | 557,511 | $ | 522,606 | |
| Structural Systems | |||||
| Military and space | $ | 145,035 | $ | 129,462 | |
| Commercial aerospace | 365,469 | 341,500 | |||
| Total | $ | 510,504 | $ | 470,962 | |
* Under ASC 606, the Company defines performance obligations as customer placed purchase orders with firm fixed price and firm delivery dates. The remaining performance obligations disclosed under ASC 606 as of June 29, 2024 were
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