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Ducommun Incorporated Reports Results for the First Quarter Ended April 4, 2009

Dépèche transmise le 4 mai 2009 par Business Wire

Ducommun Incorporated Reports Results for the First Quarter Ended April 4, 2009

Ducommun Incorporated Reports Results for the First Quarter Ended April 4, 2009

LOS ANGELES--(BUSINESS WIRE)--Ducommun Incorporated (NYSE:DCO) today reported results for its first quarter ended April 4, 2009.

Sales for the first quarter of 2009 increased 13% to $111.4 million from $98.7 million for the first quarter of 2008. Net income for the first quarter of 2009 was $2.6 million, or $0.25 per diluted share, compared to net income of $5.3 million, or $0.49 per diluted share, for the comparable period last year. The first quarter 2009 results were impacted by an after-tax charge of $2.9 million, or $0.27 per diluted share, for an inventory reserve related to the Eclipse Aviation Corporation Chapter 7 bankruptcy filing in March 2009.

The 13% increase in sales for the first quarter of 2009 from the same period last year was primarily due to sales from the December 2008 acquisition of DynaBil Industries, Inc. (DAS-NY). Net sales from DAS-NY were $11.3 million. The Company's mix of business in the first quarter of 2009 was approximately 61% military, 37% commercial and 2% space, compared to 59% military, 39% commercial and 2% space in the first quarter of 2008.

Gross profit, as a percentage of sales, was 15.5% in the first quarter of 2009 compared to 21.2% in the first quarter of 2008. Gross profit in first quarter of 2009 was negatively impacted by the pretax inventory reserve of $4.4 million discussed above.

Selling, general and administration (SG&A) expenses increased to $12.8 million, or 11.5% of sales in the first quarter of 2009, compared to $12.4 million, or 12.5% of sales, in the first quarter of 2008. The increase in SG&A expenses resulted principally from the addition of the DAS-NY SG&A expense.

Net income for the first quarter of 2009 decreased 51% from the first quarter of 2008 primarily due to the Eclipse inventory reserve and higher interest expense due to higher debt levels, partially offset by the benefit of a lower effective tax rate in the first quarter of 2009. The Company's effective tax rate for the first quarter of 2009 was 33.0%, compared to 36.8% for the first quarter of 2008. The Company's effective tax rate in 2009 included the benefit of research development tax credits which were not available in the first quarter of 2008.

Joseph C. Berenato, chairman and chief executive officer, stated: “While we were disappointed by the Eclipse inventory reserve, Ducommun turned in solid operating performance for the quarter. Our operating income for the quarter grew year over year, absent the reserve. In addition, despite a tough environment, we grew 'same store' sales. Finally, we are pleased by the operating performance of our recent acquisition of DAS-NY, which is integrating nicely into our business.”

Mr. Berenato continued, “While future build rates of commercial aircraft and the final direction of the U.S. Defense budget remain uncertain, we continue to make Ducommun a stronger and more capable company which is becoming more important to our expanding list of key customers.”

Founded in 1849, Ducommun Incorporated provides engineering and manufacturing services to the aerospace and defense industry.

A teleconference with Joseph C. Berenato, the Company's chairman and chief executive officer; Anthony J. Reardon, the Company’s president and chief operating officer; and Joseph P. Bellino, the Company's vice president and chief financial officer, will be held today at 7:30 AM PT (10:30 AM ET). To participate in the teleconference, please call 866-362-4832 (international 617-597-5364) approximately ten minutes prior to the conference time stated above. The participant passcode is 50061145. Mr. Berenato, Mr. Reardon, and Mr. Bellino will be speaking on behalf of the company and anticipate the meeting and Q&A period to last approximately 40 minutes.

This call is being webcast by Thomson/CCBN and can be accessed directly at the Thomson Reuters website. Conference call replay will be available after that time at the same link or at the Company's web site at www.ducommun.com.

The statements made in this press release include forward-looking statements that involve risks and uncertainties. The Company's future financial results could differ materially from those anticipated due to the Company's dependence on conditions in the airline industry, the level of new commercial aircraft orders, production rates for Boeing commercial aircraft, the C-17 and Apache helicopter rotor blade programs, the level of defense spending, competitive pricing pressures, manufacturing inefficiencies, start-up costs and possible overruns on new contracts, technology and product development risks and uncertainties, product performance, risks associated with acquisitions and dispositions of businesses by the Company, increasing consolidation of customers and suppliers in the aerospace industry, possible goodwill impairment, availability of raw materials and components from suppliers, and other factors beyond the Company's control. See the Company's Form 10-K for the year ended December 31, 2008 for a more detailed discussion of these and other risk factors and contingencies.

 

DUCOMMUN INCORPORATED AND SUBSIDIARIES

COMPARATIVE DATA

CONSOLIDATED INCOME STATEMENT

(in thousands, except per share amounts)

 
Three Months Ended
April 4,   March 29,
2009 2008
 
Sales and Service Revenues
Product sales $ 93,977 $ 84,309
Service revenues   17,378     14,349  
Total   111,355     98,658  
Operating Costs and Expenses:
Cost of product sales 79,972 66,234
Cost of service revenues 14,077 11,533
Selling, general & administrative expenses   12,809     12,379  

Total

  106,858     90,146  
 
Operating Income 4,497 8,512
Interest Expense (639 ) (203 )
Income Tax Expense   (1,273 )   (3,057 )
Net Income $ 2,585   $ 5,252  
Earnings Per Share
Basic earnings per share $ 0.25 $ 0.50
Diluted earnings per share 0.25 0.49
 

Weighted Averaged Number of Common Shares Outstanding:

Basic 10,495 10,551
Diluted 10,502 10,635
 

DUCOMMUN INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

 
  April 4,   December 31,
2009 2008
Assets
Current Assets:
Cash and cash equivalents $ 1,130 $ 3,508
Accounts receivable, less allowance for doubtful accounts 66,369 50,090
Unbilled receivables 5,119 7,074
Inventories 88,130 83,157
Deferred income taxes 10,217 9,172
Other current assets   5,306     6,172  
Total Current Assets 176,271 159,173
Property and Equipment, Net 61,438 61,954
Goodwill, Net 113,314 114,002
Other Assets   29,932     31,057  
$ 380,955   $ 366,186  
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ $1,932 $ $2,420
Accounts payable 35,296 35,358
Accrued liabilities   40,321     51,723  
Total Current Liabilities 77,549 89,501
Long-Term Debt, Less Current Portion 53,374 28,299
Deferred Income Taxes 10,009 9,902
Other Long-Term Liabilities   14,101     14,038  
Total Liabilities   155,033     141,740  
Commitments and Contingencies
Shareholders' Equity:
Common Stock 106 106
Treasury Stock (1,924 ) (986 )
Additional paid-in-capital 56,574 56,040
Retained earnings 175,513 173,718
Accumulated other comprehensive loss   (4,347 )   (4,432 )
Total Shareholders' Equity   225,922     224,446  
$ 380,955   $ 366,186  

Business Wire

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