EX-99.1 2 dex991.htm PRESS RELEASE Press release

EXHIBIT 99.1

LOGO

 

CONTACT:    Joseph C. Berenato
   Chairman and Chief Executive Officer
   (310) 513-7209

FOR IMMEDIATE RELEASE

DUCOMMUN INCORPORATED REPORTS RESULTS

FOR THE FIRST QUARTER ENDED MARCH 29, 2008

LOS ANGELES, California (April 28, 2008) – Ducommun Incorporated (NYSE: DCO) today reported results for its first quarter ended March 29, 2008.

Sales for the first quarter of 2008 were $98.7 million, compared to $88.1 million for the first quarter of 2007. Net income for the first quarter of 2008 was $5.3 million, or $0.49 per diluted share, compared to net income of $3.8 million, or $0.37 per diluted share, for the comparable period last year.

Sales for the first quarter of 2008 increased 12% from the same period last year due to an increase in both military and commercial sales. The Company’s mix of business in the first quarter of 2008 was approximately 59% military, 39% commercial and 2% space, compared to 59% military, 38% commercial and 3% space in the first quarter of 2007.

Gross profit, as a percentage of sales, increased to 21.2% in the first quarter of 2008 from 21.0% in the first quarter of 2007. The gross profit increase was primarily attributable to an improvement in operating performance at Ducommun AeroStructures, partially offset by lower operating performance at Ducommun Technologies.

Selling, general and administrative (SG&A) expenses increased to $12.4 million, compared to $12.2 million in the first quarter of 2007.

Net income for the first quarter of 2008 increased 38% from the first quarter of 2007, primarily due to the reasons stated above and lower interest expense, partially offset by a higher effective tax rate in the first quarter of 2008. The Company’s effective tax rate for the first quarter of 2008 was 36.8%, compared to 32.1% for the first quarter of 2007.


Joseph C. Berenato, chairman and chief executive officer, stated, “Our strong operating performance this quarter reflects the broad strength of our markets and the benefits we continue to see from our Lean and Six Sigma activities. We continue to focus on improving our technological and operational capabilities through our use of Lean and Six Sigma. Our recent reorganization and financial results are indicative of our continuous improvement efforts.”

A teleconference with Joseph C. Berenato, the Company’s chairman and chief executive officer, will be held today at 7:30 AM PT (10:30 AM ET). To participate in the teleconference, please call 800-299-6183 (international 617-801-9713) approximately ten minutes prior to the conference time stated above. The participant passcode is 79011773. Mr. Berenato will be speaking on behalf of the company and anticipates the meeting and Q&A period to last approximately 40 minutes. This call is being webcast by Thomson/CCBN and can be accessed at Ducommun’s web site at www.ducommun.com. Conference call replay will be available from the Company’s web site at www.ducommun.com.

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

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, 2007 and Form 10-Q for the quarter ended March 29, 2008 for a more detailed discussion of these and other risk factors and contingencies.

[Financial Table Follows]


DUCOMMUN INCORPORATED AND SUBSIDIARIES

COMPARATIVE DATA

CONSOLIDATED INCOME STATEMENT

(In thousands, except per share amounts)

 

     Three Months Ended  
     March 29, 2008     March 31, 2007  

Sales and Service Revenues

    

Product Sales

   $ 84,309     $ 74,496  

Service Revenues

     14,349       13,556  
                

Total

     98,658       88,052  
                

Operating Costs and Expenses:

    

Cost of Product Sales

     66,234       58,770  

Cost of Service Revenues

     11,533       10,805  

Selling, General & Administrative Expenses

     12,379       12,226  
                

Total

     90,146       81,801  
                

Operating Income

     8,512       6,251  

Interest Expense

     (203 )     (652 )

Income Tax Expense

     (3,057 )     (1,799 )
                

Net Income

   $ 5,252     $ 3,800  
                

Earnings Per Share:

    

Basic Earnings Per Share

   $ 0.50     $ 0.37  

Diluted Earnings Per Share

   $ 0.49     $ 0.37  

Weighted Averaged Number of Common Shares Outstanding:

    

Basic

     10,551       10,301  

Diluted

     10,635       10,391  

- more -


DUCOMMUN INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

     March 29,
2008
    December 31,
2007
 

Assets

    

Current Assets:

    

Cash and cash equivalents

     13,151       31,571  

Accounts receivable, less allowance for doubtful accounts

     47,402       39,226  

Unbilled receivables

     7,353       5,615  

Inventories

     73,623       67,769  

Deferred income taxes

     8,034       7,727  

Other current assets

     5,253       5,328  
                

Total Current Assets

     154,816       157,236  

Property and Equipment, Net

     57,187       56,294  

Goodwill, Net

     106,632       106,632  

Other Assets

     11,737       12,314  
                
   $ 330,372     $ 332,476  
                

Liabilities and Shareholders’ Equity

    

Current Liabilities:

    

Current portion of long-term debt

   $ 1,863     $ 1,859  

Accounts payable

     30,171       33,845  

Accrued liabilities

     39,410       43,829  
                

Total Current Liabilities

     71,444       79,533  

Long-Term Debt, Less Current Portion

     22,903       23,892  

Deferred Income Taxes

     5,643       5,584  

Other Long-Term Liabilities

     10,608       9,416  
                

Total Liabilities

     110,598       118,425  
                

Commitments and Contingencies

    

Shareholders’ Equity:

    

Common Stock

     105       105  

Additional paid-in-capital

     54,244       53,444  

Retained earnings

     167,444       162,192  

Accumulated other comprehensive loss

     (2,019 )     (1,690 )
                

Total Shareholders’ Equity

     219,774       214,051  
                
   $ 330,372     $ 332,476  
                

###