Ducommun Inc. Reports Operating Results (10-Q)

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Aug 06, 2012
Ducommun Inc. (DCO, Financial) filed Quarterly Report for the period ended 2012-06-30.

Ducommun Incorporated has a market cap of $103.1 million; its shares were traded at around $9.74 with a P/E ratio of 7.6 and P/S ratio of 0.2.

Highlight of Business Operations:

DAS segment operating income and EBITDA were down in the three months of 2012 compared to the three months of 2011. Operating income for the second quarter of 2012 was $7,574,000, or 9.9% of sales, compared to $8,844,000, or 11.5% of sales, in the comparable period in 2011. Operating income decreased in the 2012 period primarily due to a higher proportion of sales of lower margin products. Adjusted EBITDA was $9,815,000, or 12.8% of sales, compared with Adjusted EBITDA of $11,316,000, or 14.8% of sales, for the prior year period.

DLT segment operating income and EBITDA were up in the three months of 2012 compared to the three months of 2011. Operating income for the second quarter of 2012 was $10,486,000, or 9.7% of sales, compared to operating income of $2,721,000, or 8.6% of sales, in the comparable period in 2011. Operating income increased in the second quarter of 2012 primarily due to $7,353,000 of operating income from the LaBarge acquisition. Adjusted EBITDA was $15,218,000, or 14.3% of sales, compared with Adjusted EBITDA of $3,851,000, or 12.2% of sales, in the second quarter of 2011.

Corporate General and Administrative Expenses (CG&A) were down in the three months of 2012 compared to the three months of 2011. CG&A expenses for the second quarter 2012 were $4,048,000, or 2.2% of sales, as compared to $14,158,000, or 13.1% of sales, in the 2011 second quarter. CG&A decreased in the second quarter of 2012 primarily due to the reduction in acquisition-related transaction expenses of approximately $9,748,000 from the LaBarge acquisition and integration cost synergies. Excluding acquisition-related transaction expenses, CG&A for the second quarter of 2011 would have been approximately $4,193,000, or 3.8% of sales.

DAS segment operating income and EBITDA were down in the six months of 2012 compared to the six months of 2011. Operating income for the six months of 2012 was $14,165,000 or 9.4% of sales compared to $15,911,000, or 10.7% of sales in the comparable period in 2011. Operating income decreased in the 2012 period primarily due to a higher proportion of sales of lower margin products. Adjusted EBITDA was $18,462,000, or 12.2% of sales, compared with Adjusted EBITDA of $20,940,000, or 14.1% of sales for the prior year period.

DLT segment operating income and EBITDA were up in the six months of 2012 compared to the six months of 2011. Operating income for the six months of 2012 was $18,788,000, or 8.6% of sales, compared to operating income of $4,844,000, or 8.2% of sales in the comparable period in 2011. Operating income increased in the 2012 period primarily due to $14,563,000 of operating income from the LaBarge acquisition, partially offset by lower operating income for engineering services and the legacy Ducommun DTI manufacturing business. Adjusted EBITDA was $28,217,000, or 13.0% of sales, compared with Adjusted EBITDA of $6,824,000, or 11.6% of sales in the six months of 2011.

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