Ducommun Incorporated (NYSE:DCO) (“Ducommun” or the “Company”)
today reported results for its fourth quarter and year ended
December 31, 2016.
Fourth Quarter 2016
Highlights
- Fourth quarter revenue was $142.5 million
- Operating income was $9.0 million
- GAAP net income for the quarter was $2.8 million, or $0.25 per
diluted share
- Adjusted net income for the quarter was $5.1 million, or $0.45
per diluted share, which excludes a $1.2 million final pre-tax net
working capital adjustment and a $1.0 million tax adjustment
related to divestitures
- Adjusted EBITDA for the quarter was $15.1 million
- Cash flow from operations for the quarter was $15.8
million
- Backlog increased to $600 million
- Net voluntary principal prepayments on credit facilities
totaled $10 million during the quarter - for a net total of
$75 million in voluntary principal prepayments during 2016
“Ducommun again posted improved operating
results and excellent cash flow during the quarter, paying down an
additional $10 million in debt before year end,” said Stephen G.
Oswald, president and chief executive officer. “For 2016 as a
whole, we eliminated $75 million of indebtedness, and our backlog
rose to $600 million due to recent commercial aerospace awards -
leaving us very well positioned for 2017 and beyond.
“Looking back, the Company took a number of
decisive steps in 2016 that streamlined and focused our operations,
and I’m excited to lead this innovative organization going forward.
In 2017, the higher commercial platform build rates expected later
this year, along with the potential for increased defense spending,
make me confident we have a strong foundation to leverage our
leading position in composites, titanium, and advanced
electronics.”
Fourth Quarter Results
Net revenue for the fourth quarter of 2016 was
$142.5 million, compared to $156.6 million for the fourth quarter
of 2015. The year-over-year decline was due to the following:
- $17.5 million lower revenue within the Company’s industrial,
medical and other (“Industrial”) end-use markets mainly due to the
divestiture of the Pittsburgh operation in January 2016 and closure
of the Houston operation in December 2015; and
- $4.5 million lower revenue within the Company’s military and
space end-use markets mainly due to the divestiture of the Miltec
operation in March 2016; partially offset by
- $7.8 million higher revenue in the Company’s commercial
aerospace end-use markets mainly due to added content with existing
customers.
Net income for the fourth quarter of 2016 was
$2.8 million, or $0.25 per diluted share, compared to a net loss of
$(65.2) million, or $(5.88) per share, for the fourth quarter of
2015. The fourth quarter of 2016 included a $1.2 million (pre-tax)
net working capital adjustment for which there was no related tax
benefit and a $1.0 million tax adjustment related to the
finalization of a divestiture. The impact of these two
non-recurring items was $2.2 million or $0.20 per diluted
share.
The increase in net income for the fourth
quarter of 2016 compared to the fourth quarter of 2015 was
primarily due to the following:
- $57.2 million non-cash pre-tax goodwill impairment charge
within the Structural Systems segment recorded in the fourth
quarter of 2015;
- $32.9 million non-cash pre-tax charge related to the impairment
of an indefinite-lived trade name within the Electronic Systems
segment recorded in the fourth quarter of 2015; and
- Improved operating performance in the fourth quarter of 2016;
partially offset by
- $28.0 million higher income tax expense.
Gross profit for the fourth quarter of 2016 was
$27.8 million, or 19.5% of revenue, compared to gross profit of
$22.8 million, or 14.6% of revenue, for the fourth quarter of 2015.
The higher gross margin percentage year-over-year was primarily due
to improved product mix (reflecting the aforementioned
divestitures), ongoing supply chain initiatives, and improved
operating performance.
Operating income for the fourth quarter of 2016
was $9.0 million, or 6.3% of revenue, compared to an operating loss
of $(88.6) million, or (56.6)% of revenue, for the comparable
period in 2015. The increase in operating income in the fourth
quarter of 2016 was primarily due to the items that affected
operating income (loss) described in net income (loss) above.
Interest expense decreased slightly to $2.0
million in the fourth quarter of 2016, compared to $2.2 million in
the previous year’s fourth quarter, primarily due to a lower
outstanding debt balance as a result of net voluntary principal
prepayments on the Company’s credit facilities.
Adjusted EBITDA for the fourth quarter of 2016
was $15.1 million, or 10.6% of revenue, compared to $11.0 million,
or 7.1% of revenue, for the comparable period in 2015.
During the fourth quarter of 2016, the Company
generated $15.8 million of cash from operations, compared to $11.6
million during the fourth quarter of 2015. The increase in cash
flow from operations in the fourth quarter of 2016 was primarily
due to the higher net income.
Business Segment
Information
Structural Systems
Structural Systems reported net revenue for the
current quarter of $60.8 million, compared to $61.0 million for the
fourth quarter of 2015. The slight decrease year-over-year was
primarily due to a $2.9 million decline in military and space
revenue, reflecting program delays and budget changes which
impacted scheduled deliveries on the Company’s fixed-wing and
helicopter platforms. This decline was partially offset by a $2.8
million increase in the Company’s commercial aerospace revenue,
mainly due to added content with existing customers.
Structural Systems reported operating income for
the current fourth quarter of $3.2 million, or 5.2% of revenue,
compared to an operating loss of $(56.0) million, or (91.8)% of
revenue, in the fourth quarter of 2015. The increase in operating
income was primarily due to the fact that the prior year quarter
included a non-cash goodwill impairment charge of $57.2 million and
the current year period benefited from higher operating
margins.
Adjusted EBITDA was $5.2 million for the current
quarter, or 8.5% of revenue, compared to $4.6 million, or 7.6% of
revenue, for the comparable quarter in 2015.
Electronic Systems
Electronic Systems reported net revenue for the
current quarter of $81.7 million, compared to $95.6 million for the
fourth quarter of 2015. The lower net revenue year-over-year was
primarily due to the following:
- $17.5 million decrease in Industrial revenue mainly due to the
divestiture of the Company’s Pittsburgh operation in January 2016
and closure of the Houston operation in December 2015; and
- $1.5 million decrease in military and space revenue mainly due
to the divestiture of the Company’s Miltec operation in March 2016;
partially offset by
- $5.1 million increase in commercial aerospace revenue mainly
due to added content with the Company’s existing customers.
Electronic Systems operating income for the
current year fourth quarter was $9.2 million, or 11.3% of revenue,
compared to an operating loss of $(27.0) million, or (28.3)% of
revenue, for the fourth quarter of 2015. The increase in operating
income year-over-year was primarily due to the following:
- Fourth quarter 2015 included a non-cash charge related to the
impairment of the indefinite-lived trade name intangible asset of
$32.9 million; and
- Higher operating margins in the fourth quarter of 2016 as a
result of the aforementioned divestitures and improved operating
performance.
Adjusted EBITDA was $12.8 million for the
current quarter, or 15.7% of revenue, compared to $11.3 million, or
11.8% of revenue, in the comparable quarter in 2015.
Corporate General and Administrative
(“CG&A”) Expense
CG&A expense for the current fourth quarter
was $3.4 million, or 2.4% of total Company revenue, compared to
$5.6 million, or 3.6% of total Company revenue, in the comparable
quarter in 2015. The decrease in CG&A expense in the current
year quarter was primarily due to lower professional fees of $1.7
million and lower compensation and benefit costs of $0.5
million.
Conference Call
A teleconference hosted by Anthony J. Reardon,
the Company’s chairman of the board, Stephen G. Oswald, the
Company’s president and chief executive officer, and Douglas L.
Groves, the Company’s vice president, chief financial officer and
treasurer, will be held today, March 6, 2017 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 56842062. Mr. Reardon, Mr.
Oswald, and Mr. Groves will be speaking on behalf of the Company
and anticipate the meeting and Q&A period to last approximately
45 minutes.
This call is being webcast by Thomson Reuters
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
56842062.
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 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: competition from other industry
participants; the Company’s ability to continue to develop
innovative new products and services and enhance its existing
products and services, or the failure of its products and services
to continue to appeal to the market; the effectiveness of the
Company’s marketing and advertising programs; the Company’s ability
to successfully make acquisitions or enter into joint ventures,
including its ability to successfully integrate, operate or realize
the projected benefits of such businesses; uncertainties related to
a downturn in general economic conditions or consumer confidence;
uncertainties regarding the satisfactory operation of the Company’s
information technology or systems; the impact of existing and
future laws and regulations; the impact of existing and future
accounting standards and tax rules and regulations; the impact of
the Company’s debt service obligations and restrictive debt
covenants; 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 expense (benefit), depreciation, amortization,
stock-based compensation expense, net gain on divestitures, loss on
extinguishment of debt, goodwill impairment, intangible asset
impairment, and restructuring charges) and Adjusted Net Income
(Loss) as well as Adjusted Earnings Per Share (which excludes
divestiture net working capital adjustment and divestiture tax
basis adjustment).
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.
[Financial Tables Follow]
|
DUCOMMUN INCORPORATED AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(In thousands) |
|
|
|
December 31, 2016 |
|
December 31, 2015 |
Assets |
|
|
|
|
Current Assets |
|
|
|
|
Cash and
cash equivalents |
|
$ |
7,432 |
|
|
$ |
5,454 |
|
Accounts
receivable, net |
|
76,239 |
|
|
77,089 |
|
Inventories |
|
119,896 |
|
|
115,404 |
|
Production cost of contracts |
|
11,340 |
|
|
10,290 |
|
Other
current assets |
|
11,034 |
|
|
13,389 |
|
Assets
held for sale |
|
— |
|
|
41,636 |
|
Total
Current Assets |
|
225,941 |
|
|
263,262 |
|
Property and Equipment,
Net |
|
101,590 |
|
|
96,551 |
|
Goodwill |
|
82,554 |
|
|
82,554 |
|
Intangibles, Net |
|
101,573 |
|
|
110,621 |
|
Non-Current Deferred
Income Taxes |
|
286 |
|
|
324 |
|
Other Assets |
|
3,485 |
|
|
3,769 |
|
Total
Assets |
|
$ |
515,429 |
|
|
$ |
557,081 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
Current
Liabilities |
|
|
|
|
Current
portion of long-term debt |
|
$ |
3 |
|
|
$ |
26 |
|
Accounts
payable |
|
57,024 |
|
|
40,343 |
|
Accrued
liabilities |
|
29,279 |
|
|
36,458 |
|
Liabilities held for sale |
|
— |
|
|
6,780 |
|
Total
Current Liabilities |
|
86,306 |
|
|
83,607 |
|
Long-Term Debt, Less
Current Portion |
|
166,896 |
|
|
240,661 |
|
Non-Current Deferred
Income Taxes |
|
31,417 |
|
|
28,125 |
|
Other Long-Term
Liabilities |
|
18,707 |
|
|
18,954 |
|
Total
Liabilities |
|
303,326 |
|
|
371,347 |
|
Commitments and
Contingencies |
|
|
|
|
Shareholders’
Equity |
|
|
|
|
Common
stock |
|
112 |
|
|
111 |
|
Additional paid-in capital |
|
76,783 |
|
|
75,200 |
|
Retained
earnings |
|
141,287 |
|
|
116,026 |
|
Accumulated other comprehensive loss |
|
(6,079 |
) |
|
(5,603 |
) |
Total
Shareholders’ Equity |
|
212,103 |
|
|
185,734 |
|
Total
Liabilities and Shareholders’ Equity |
|
$ |
515,429 |
|
|
$ |
557,081 |
|
|
|
|
|
|
|
|
|
|
DUCOMMUN INCORPORATED AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Quarterly Information Unaudited) |
(In thousands, except per share amounts) |
|
|
|
Three Months Ended |
|
Years Ended |
|
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Net Revenues |
|
$ |
142,486 |
|
|
$ |
156,576 |
|
|
$ |
550,642 |
|
|
$ |
666,011 |
|
Cost of Sales |
|
114,700 |
|
|
133,780 |
|
|
444,449 |
|
|
565,219 |
|
Gross Profit |
|
27,786 |
|
|
22,796 |
|
|
106,193 |
|
|
100,792 |
|
Selling, General and
Administrative Expenses |
|
18,829 |
|
|
21,214 |
|
|
77,625 |
|
|
85,921 |
|
Goodwill
Impairment |
|
— |
|
|
57,243 |
|
|
— |
|
|
57,243 |
|
Intangible Asset
Impairment |
|
— |
|
|
32,937 |
|
|
— |
|
|
32,937 |
|
Operating Income
(Loss) |
|
8,957 |
|
|
(88,598 |
) |
|
28,568 |
|
|
(75,309 |
) |
Interest Expense |
|
(1,995 |
) |
|
(2,210 |
) |
|
(8,274 |
) |
|
(18,709 |
) |
(Loss) Gain on
Divestitures, Net |
|
(1,211 |
) |
|
— |
|
|
17,604 |
|
|
— |
|
Loss on Extinguishment
of Debt |
|
— |
|
|
— |
|
|
— |
|
|
(14,720 |
) |
Other Income, Net |
|
74 |
|
|
638 |
|
|
215 |
|
|
2,148 |
|
Income (Loss) Before
Taxes |
|
5,825 |
|
|
(90,170 |
) |
|
38,113 |
|
|
(106,590 |
) |
Income Tax Expense
(Benefit) |
|
2,989 |
|
|
(24,997 |
) |
|
12,852 |
|
|
(31,711 |
) |
Net Income (Loss) |
|
$ |
2,836 |
|
|
$ |
(65,173 |
) |
|
$ |
25,261 |
|
|
$ |
(74,879 |
) |
Earnings (Loss) Per
Share |
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share |
|
$ |
0.25 |
|
|
$ |
(5.88 |
) |
|
$ |
2.27 |
|
|
$ |
(6.78 |
) |
Diluted
earnings (loss) per share |
|
$ |
0.25 |
|
|
$ |
(5.88 |
) |
|
$ |
2.24 |
|
|
$ |
(6.78 |
) |
Weighted-Average Number
of Common Shares Outstanding |
|
|
|
|
|
|
|
|
Basic |
|
11,182 |
|
|
11,084 |
|
|
11,151 |
|
|
11,047 |
|
Diluted |
|
11,383 |
|
|
11,084 |
|
|
11,299 |
|
|
11,047 |
|
|
|
|
|
|
|
|
|
|
Gross Profit % |
|
19.5 |
% |
|
14.6 |
% |
|
19.3 |
% |
|
15.1 |
% |
SG&A % |
|
13.2 |
% |
|
13.5 |
% |
|
14.1 |
% |
|
12.9 |
% |
Operating Income (Loss)
% |
|
6.3 |
% |
|
(56.6 |
)% |
|
5.2 |
% |
|
(11.3 |
)% |
Net Income (Loss)
% |
|
2.0 |
% |
|
(41.6 |
)% |
|
4.6 |
% |
|
(11.2 |
)% |
Effective Tax (Benefit)
Rate |
|
51.3 |
% |
|
(27.7 |
)% |
|
33.7 |
% |
|
(29.7 |
)% |
DUCOMMUN INCORPORATED AND SUBSIDIARIES |
BUSINESS SEGMENT PERFORMANCE |
(Unaudited) |
(In thousands) |
|
|
|
Three Months Ended |
|
Years Ended |
|
|
%Change |
|
December 31, 2016 |
|
December 31, 2015 |
|
%of Net Revenues2016 |
|
%of Net Revenues2015 |
|
% Change |
|
December 31, 2016 |
|
December 31, 2015 |
|
% of Net Revenues 2016 |
|
% of Net Revenues 2015 |
Net
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural Systems |
|
(0.3 |
)% |
|
$ |
60,823 |
|
|
$ |
61,013 |
|
|
42.7 |
% |
|
39.0 |
% |
|
(9.8 |
)% |
|
$ |
246,465 |
|
|
$ |
273,319 |
|
|
44.8 |
% |
|
41.0 |
% |
Electronic Systems |
|
(14.5 |
)% |
|
81,663 |
|
|
95,563 |
|
|
57.3 |
% |
|
61.0 |
% |
|
(22.5 |
)% |
|
304,177 |
|
|
392,692 |
|
|
55.2 |
% |
|
59.0 |
% |
Total Net
Revenues |
|
(9.0 |
)% |
|
$ |
142,486 |
|
|
$ |
156,576 |
|
|
100.0 |
% |
|
100.0 |
% |
|
(17.3 |
)% |
|
$ |
550,642 |
|
|
$ |
666,011 |
|
|
100.0 |
% |
|
100.0 |
% |
Segment
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural Systems |
|
|
|
$ |
3,150 |
|
|
$ |
(55,990 |
) |
|
5.2 |
% |
|
(91.8 |
)% |
|
|
|
$ |
16,497 |
|
|
$ |
(53,010 |
) |
|
6.7 |
% |
|
(19.4 |
)% |
Electronic Systems |
|
|
|
9,214 |
|
|
(27,047 |
) |
|
11.3 |
% |
|
(28.3 |
)% |
|
|
|
28,983 |
|
|
(4,472 |
) |
|
9.5 |
% |
|
(1.1 |
)% |
|
|
|
|
12,364 |
|
|
(83,037 |
) |
|
|
|
|
|
|
|
|
|
45,480 |
|
|
(57,482 |
) |
|
|
|
|
|
|
Corporate
General and Administrative Expenses (1) |
|
|
|
(3,407 |
) |
|
(5,561 |
) |
|
(2.4 |
)% |
|
(3.6 |
)% |
|
|
|
(16,912 |
) |
|
(17,827 |
) |
|
(3.1 |
)% |
|
(2.7 |
)% |
Total
Operating Income (Loss) |
|
|
|
$ |
8,957 |
|
|
$ |
(88,598 |
) |
|
6.3 |
% |
|
(56.6 |
)% |
|
|
|
$ |
28,568 |
|
|
$ |
(75,309 |
) |
|
5.2 |
% |
|
(11.3 |
)% |
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural Systems |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss) (2)(3) |
|
|
|
$ |
3,150 |
|
|
$ |
(55,990 |
) |
|
|
|
|
|
|
|
|
|
$ |
16,497 |
|
|
$ |
(53,010 |
) |
|
|
|
|
|
|
Other
Income (4) |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
141 |
|
|
1,510 |
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
|
2,005 |
|
|
2,408 |
|
|
|
|
|
|
|
|
|
|
8,688 |
|
|
9,417 |
|
|
|
|
|
|
|
Goodwill
Impairment |
|
|
|
— |
|
|
57,243 |
|
|
|
|
|
|
|
|
|
|
— |
|
|
57,243 |
|
|
|
|
|
|
|
Restructuring Charges |
|
|
|
— |
|
|
980 |
|
|
|
|
|
|
|
|
|
|
— |
|
|
1,294 |
|
|
|
|
|
|
|
|
|
|
|
5,155 |
|
|
4,641 |
|
|
8.5 |
% |
|
7.6 |
% |
|
|
|
25,326 |
|
|
16,454 |
|
|
10.3 |
% |
|
6.0 |
% |
Electronic Systems |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss) (3)(5) |
|
|
|
9,214 |
|
|
(27,047 |
) |
|
|
|
|
|
|
|
|
|
28,983 |
|
|
(4,472 |
) |
|
|
|
|
|
|
Other
Income |
|
|
|
— |
|
|
712 |
|
|
|
|
|
|
|
|
|
|
— |
|
|
712 |
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
|
3,426 |
|
|
4,339 |
|
|
|
|
|
|
|
|
|
|
14,087 |
|
|
17,267 |
|
|
|
|
|
|
|
Intangible Asset Impairment |
|
|
|
— |
|
|
32,937 |
|
|
|
|
|
|
|
|
|
|
— |
|
|
32,937 |
|
|
|
|
|
|
|
Restructuring Charges |
|
|
|
182 |
|
|
363 |
|
|
|
|
|
|
|
|
|
|
182 |
|
|
831 |
|
|
|
|
|
|
|
|
|
|
|
12,822 |
|
|
11,304 |
|
|
15.7 |
% |
|
11.8 |
% |
|
|
|
43,252 |
|
|
47,275 |
|
|
14.2 |
% |
|
12.0 |
% |
Corporate
General and Administrative Expenses (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
|
(3,407 |
) |
|
(5,561 |
) |
|
|
|
|
|
|
|
|
|
(16,912 |
) |
|
(17,827 |
) |
|
|
|
|
|
|
Other
Expense (Income) |
|
|
|
74 |
|
|
(74 |
) |
|
|
|
|
|
|
|
|
|
74 |
|
|
(74 |
) |
|
|
|
|
|
|
Depreciation and Amortization |
|
|
|
9 |
|
|
35 |
|
|
|
|
|
|
|
|
|
|
85 |
|
|
162 |
|
|
|
|
|
|
|
Stock-Based Compensation Expense |
|
|
|
428 |
|
|
703 |
|
|
|
|
|
|
|
|
|
|
3,007 |
|
|
3,495 |
|
|
|
|
|
|
|
|
|
|
|
(2,896 |
) |
|
(4,897 |
) |
|
|
|
|
|
|
|
|
|
(13,746 |
) |
|
(14,244 |
) |
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
$ |
15,081 |
|
|
$ |
11,048 |
|
|
10.6 |
% |
|
7.1 |
% |
|
|
|
$ |
54,832 |
|
|
$ |
49,485 |
|
|
10.0 |
% |
|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural Systems |
|
|
|
$ |
5,512 |
|
|
$ |
3,479 |
|
|
|
|
|
|
|
|
$ |
15,661 |
|
|
$ |
11,559 |
|
|
|
|
|
Electronic Systems |
|
|
|
1,331 |
|
|
1,223 |
|
|
|
|
|
|
|
|
3,032 |
|
|
4,419 |
|
|
|
|
|
Corporate
Administration |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
— |
|
|
10 |
|
|
|
|
|
Total
Capital Expenditures |
|
|
|
$ |
6,843 |
|
|
$ |
4,702 |
|
|
|
|
|
|
|
|
$ |
18,693 |
|
|
$ |
15,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes costs not allocated to either the Structural
Systems or Electronic Systems operating segments.(2) Goodwill
impairment related to Structural Systems operating segment.(3) 2015
includes restructuring charges for severance and benefits and loss
on early exit from leases.(4) Insurance recoveries related to
property and equipment included as other income in 2015.(5)
Intangible asset impairment related to Electronic Systems operating
segment.
|
|
DUCOMMUN INCORPORATED AND SUBSIDIARIES |
GAAP TO NON-GAAP EARNINGS PER SHARE
RECONCILIATION |
(Unaudited) |
(In thousands, except per share amounts) |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
GAAP Net income
(loss) |
|
$ |
2,836 |
|
|
$ |
(65,173 |
) |
|
$ |
25,261 |
|
|
$ |
(74,879 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Divestiture of Miltec operation net working capital adjustment |
|
1,211 |
|
|
— |
|
|
1,211 |
|
|
— |
|
Divestiture of Miltec operation tax basis adjustment |
|
1,027 |
|
|
— |
|
|
1,027 |
|
|
— |
|
Total
adjustments |
|
2,238 |
|
|
— |
|
|
2,238 |
|
|
— |
|
Income
tax impact on adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted net income
(loss) |
|
$ |
5,074 |
|
|
$ |
(65,173 |
) |
|
$ |
27,499 |
|
|
$ |
(74,879 |
) |
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings (loss) per share |
|
$ |
0.45 |
|
|
$ |
(5.88 |
) |
|
$ |
2.43 |
|
|
$ |
(6.78 |
) |
|
|
|
|
|
|
|
|
|
Diluted shares used for
adjusted earnings per share |
|
11,383 |
|
|
11,084 |
|
|
11,299 |
|
|
11,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACTS:
Douglas L. Groves,
Vice President, Chief Financial Officer
and Treasurer,
310.513.7200
Chris Witty,
Investor Relations,
646.438.9385,
cwitty@darrowir.com
Ducommun (NYSE:DCO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ducommun (NYSE:DCO)
Historical Stock Chart
From Apr 2023 to Apr 2024