Financial Performance - Net revenues for 2019 were $721.1 million, an increase of 14.6% from $629.3 million in 2018[177]. - Net income for 2019 was $32.5 million, or $2.75 per diluted share, compared to $9.0 million, or $0.77 per diluted share in 2018[163][174]. - Adjusted EBITDA for 2019 was $92.3 million, representing 12.8% of net revenues, up from $70.7 million in 2018[164][172]. - Operating income for 2019 was $56.2 million, a significant increase from $23.9 million in 2018[174]. - Gross profit margin increased to 21.1% in 2019 from 19.5% in 2018, driven by a favorable product mix and manufacturing volume[179]. - Total net revenues increased by 14.6% to $721.1 million in 2019 from $629.3 million in 2018[190]. Revenue Sources - Military and space end-use markets generated $323.8 million in revenues, a $46.2 million increase from 2018[177]. - Commercial aerospace revenues increased by $45.0 million to $348.5 million due to higher build rates on large aircraft platforms[177]. - Electronic Systems segment net revenues rose by $22.5 million, with military and space markets contributing $28.5 million in increased revenues[191]. - Structural Systems segment net revenues increased by $69.3 million, primarily due to higher build rates in commercial aerospace and military markets[193]. - The top ten customers accounted for 63.5% of total revenues in 2019, with Boeing, Raytheon, and Spirit AeroSystems being significant contributors[178]. Expenses and Taxation - Selling, general, and administrative expenses were $96.0 million, representing 13.3% of net revenues, consistent with the previous year[174]. - The effective tax rate for 2019 was 14.0%, compared to 12.0% in 2018[174]. - Income tax expense for 2019 was $5.3 million, with an effective tax rate of 14.0%, up from $1.2 million and 12.0% in 2018, due to increased pre-tax income[185]. - SG&A expenses rose by $12.0 million in 2019, attributed to higher compensation and benefit costs[180]. Debt and Liquidity - Total debt increased to $310.0 million in 2019 from $233.0 million in 2018, with a weighted-average interest rate on debt rising to 6.87% from 4.71%[199]. - Cash and cash equivalents rose significantly to $39.6 million in 2019 compared to $10.3 million in 2018, while unused revolving credit facility remained stable at $99.8 million[199]. - Cash generated from operations and bank borrowing capacity are expected to provide sufficient liquidity for the next twelve months[209]. - The company is required to make quarterly installment payments of 1.25% on the New Term Loan, with additional excess flow payments if annual cash flow thresholds are met[201]. Acquisitions and Investments - The company completed the acquisition of Nobles Worldwide, Inc. in 2019, contributing to revenue growth[163]. - The company acquired Nobles Parent Inc. for $77.0 million in cash, funded through the 2018 Revolving Credit Facility[204]. - Net cash used in investing activities surged to $94.9 million in 2019 from $47.9 million in 2018, primarily due to increased acquisition payments[210]. - Capital expenditures for 2020 are expected to be between $16.0 million and $18.0 million, aimed at supporting new contract awards[207]. - The company plans to continue making prudent acquisitions and capital expenditures to support long-term contracts in aerospace and defense sectors[208]. Goodwill and Intangible Assets - Goodwill for the Structural Systems segment was recorded at $18.6 million, with a fair value exceeding its carrying value by 85% during the impairment analysis[227]. - As of the most recent annual evaluation, the carrying amount of goodwill for the Electronic Systems segment was $117.4 million, with a fair value exceeding its carrying value by 44%[228]. - The company performs goodwill impairment analysis based on qualitative assessments, including earnings before interest, taxes, depreciation, and amortization, and macroeconomic factors[229]. - Other intangible assets are amortized over estimated economic lives ranging from 10 to 18 years using the straight-line method[230]. Backlog and Future Obligations - Backlog increased to $910.2 million in 2019 from $863.6 million in 2018, with military and space markets showing significant growth[197]. - Total contractual obligations as of December 31, 2019, amounted to $640.9 million, with significant future interest on long-term debt estimated at $97.1 million[213]. Interest Rates and Financial Impact - Interest expense increased due to a higher outstanding balance on credit facilities related to acquisitions and rising interest rates[182]. - A hypothetical 10% increase or decrease in interest rates would have an immaterial impact on the company's financial condition and results of operations[238].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ FORM 10-K _________________________________________________________ x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8174 _______ ...