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PRESS RELEASE : APRIL 28, 2008
DUCOMMUN INCORPORATED REPORTS RESULTS FOR THE 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 Thomson/CCBN. Conference call replay
will be available after that time at the same link.
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.
DUCOMMUN IN COMPARATIVE DATA CONSOLIDATED INCOME STATEMENT (In thousands, except per share amounts) Sales and Service
Revenues Product Sales $74,496 Service Revenues 13,556 Total 88,052 Operating Costs
and Expenses: Cost of Product Sales 58,770 Cost of Service Revenues 10,805 Selling, General & Administrative
Expenses 12,226 Total 81,801 Operating Income 6,251 Interest Expense (652) Income Tax Expense (1,799) Net Income $3,800 Earnings Per
Share: Basic Earnings Per Share $
0.37 Diluted Earnings Per Share $
0.37 Weighted Averaged
Number of Common Shares
Outstanding: Basic 10,301 Diluted 10,391 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
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