Ducommun Incorporated (NYSE:DCO) (“Ducommun” or the “Company”) today reported results for its third quarter and the nine months ended September 28, 2013.
Third Quarter 2013 Highlights
- The Company reported net income of $4.6 million, or $0.42 per diluted share
- Adjusted EBITDA for the quarter was $19.2 million
- Cash flow from operations was $7.6 million; Ducommun also made another voluntary principal prepayment of $7.5 million on its term loan
- The Company’s firm backlog at the end of the third quarter was $609 million
“Our third quarter highlighted the resilience of our diversified product portfolio,” said Anthony J. Reardon, chairman, president and chief executive officer. “We posted strong revenue within our aerospace structures and defense technologies segments, while our non-A&D end markets faced continued challenges but have stabilized, as we implement our strategy for profitable growth. Our commercial aerospace backlog remains near record levels, benefitting from higher build rates, increased content, and new business development initiatives.
“We generated $7.6 million of cash from operations this quarter, versus $5.7 million last year, and paid down another $7.5 million of our term loan. We remain on track to eliminate up to $30 million of debt in 2013 as we continue to de-lever the balance sheet. While some uncertainty clearly remains with regard to Washington’s spending priorities, we believe Ducommun’s platform diversity and program strengths leave us well positioned for long-term growth and earnings expansion.”Third Quarter Results Net sales for the third quarter of 2013 were $181.3 million, versus $184.1 million for the third quarter of 2012. The slight revenue decline year-over-year reflects lower sales within the Company’s non-aerospace and defense (“non-A&D”) end markets, partially offset by an increase in revenue across Ducommun’s other end markets. Net income for the third quarter of 2013 was $4.6 million, or $0.42 per diluted share, compared to $5.1 million, or $0.48 per diluted share, for the third quarter of 2012. The Company recognized $0.7 million of federal research and development tax credits in the third quarter of 2013, while the prior-year period contained no such benefits. The third quarters of both 2013 and 2012 included tax benefits from expiring statutes and other favorable tax adjustments.