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Ducommun(DCO) - 2023 Q4 - Earnings Call Transcript
2024-02-15 20:09
Financial Data and Key Metrics Changes - The company reported Q4 2023 revenues of $192.2 million, up from $188.3 million in Q4 2022, marking a year-over-year increase of 1.0% [80] - Full year revenue for 2023 reached $757 million, a 6.2% increase compared to 2022, aligning with the guidance of 6% to 6.5% [14][23] - Adjusted net income for Q4 2023 was $10.4 million or $0.70 per diluted share, compared to $10.6 million or $0.85 per diluted share in Q4 2022 [19][79] - Gross margins improved to 23.2% in Q4 2023 from 21.0% in Q4 2022, driven by favorable product mix and better pricing [18] Business Segment Data and Key Metrics Changes - The Structural Systems segment posted revenue of $85.6 million in Q4 2023, up from $68.2 million in the prior year, reflecting strong growth in commercial aerospace applications [5] - The Electronics Systems segment reported revenue of $106.7 million in Q4 2023, down from $120 million in the prior year, primarily due to lower revenues from military and space customers [74] - The Defense business generated $103 million in revenue for the quarter, showing resilience despite challenges from sunsetting programs like the F-18 [2] Market Data and Key Metrics Changes - The commercial aerospace backlog decreased slightly year-over-year to $429 million, primarily due to production rate issues, but increased sequentially by $7 million [15][80] - The defense backlog reached a record $527 million, up $70 million year-over-year, indicating strong demand in the defense sector [36][80] Company Strategy and Development Direction - The company plans to continue its focus on acquisitions and expects the commercial aerospace recovery to expand alongside defense growth, supported by a record backlog [4] - A restructuring initiative is underway to enhance operational efficiency, including the shutdown of two facilities and transitioning work to lower-cost operations [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2024 with good momentum, despite challenges in the commercial aerospace sector due to FAA oversight of Boeing [17][15] - The company anticipates a long-term positive trend in commercial aerospace once current issues are resolved, with expectations of $90 million in offloading opportunities for 2024 [13][15] Other Important Information - The company expects to incur $5 million to $7 million in restructuring expenses through 2024, with anticipated annual savings of $11 million to $13 million post-restructuring [45] - The company reported a material weakness in internal controls over financial reporting related to revenue recognition, but does not expect this to result in a restatement of financial statements [10] Q&A Session Summary Question: Can you provide details on the engineered products and aftermarket parts revenue? - Management indicated that they are actively working on offloading opportunities and expect to provide updates later in the year [28] Question: What are the biggest headwinds impacting Defense revenue growth? - Management noted the F-18 wind down as a significant factor, along with other supply chain challenges [30] Question: What is the expected offloading for 2024 and potential upside for 2025? - Management confirmed an expectation of $90 million for 2024, with potential to increase to $125 million in 2025 [31][52]
Ducommun (DCO) Surpasses Q4 Earnings Estimates
Zacks Investment Research· 2024-02-15 13:41
Ducommun (DCO) came out with quarterly earnings of $0.70 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.64%. A quarter ago, it was expected that this aerospace industry supplier would post earnings of $0.54 per share when it actually produced earnings of $0.70, delivering a surprise of 29.63%.Over the last four quarters, ...
David B. Carter Joins Ducommun Incorporated's Board of Directors
Newsfilter· 2024-02-05 10:30
SANTA ANA, Calif., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE:DCO) announced today that its Board of Directors elected David B. Carter as an independent director of the company, effective February 1, 2024. Mr. Carter's appointment expands the number of directors on Ducommun's board to nine, eight of whom are independent. Mr. Carter will be a member of the company's Innovation Committee. "We are thrilled that Dave will be joining our board of directors and look forward to his many contribu ...
Ducommun Incorporated Announces Fourth Quarter Conference Call
Globenewswire· 2024-01-30 11:30
SANTA ANA, Calif., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today announced that it plans to release the Company's 2023 fourth quarter financial results on February 15, 2024, prior to the stock market opening. Stephen G. Oswald, the Company’s chairman, president and chief executive officer, and Suman Mookerji, the Company’s senior vice president and chief financial officer, will host a call that day at 10:00 a.m. PT (1:00 p.m. ET) to review these resu ...
Ducommun Incorporated Announces Fourth Quarter Conference Call
Newsfilter· 2024-01-30 11:30
SANTA ANA, Calif., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today announced that it plans to release the Company's 2023 fourth quarter financial results on February 15, 2024, prior to the stock market opening. Stephen G. Oswald, the Company’s chairman, president and chief executive officer, and Suman Mookerji, the Company’s senior vice president and chief financial officer, will host a call that day at 10:00 a.m. PT (1:00 p.m. ET) to review these resu ...
Ducommun(DCO) - 2023 Q3 - Earnings Call Transcript
2023-11-08 21:12
Ducommun Incorporated (NYSE:DCO) Q3 2023 Earnings Conference Call November 8, 2023 1:00 PM ET Company Participants Suman Mookerji - Senior Vice President & Chief Financial Officer Steve Oswald - Chairman, President & Chief Executive Officer Conference Call Participants Michael Ciarmoli - Truist Mike Crawford - B. Riley Securities Jason Gursky - Citi Operator Good day, and thank you for standing by. Welcome to the Third Quarter 2023 Ducommun’s Earnings Conference Call. At this time, all participants are in a ...
Ducommun(DCO) - 2023 Q3 - Earnings Call Presentation
2023-11-08 17:57
Structural Systems – Overview | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------|-------------------------------|------------------------------|--------------------------------------------|--------|-----------------------------------------------|----------| | Commercial Aircraft | Military Rotorcraft | | Missiles, Ground Vehicles, and Other | | Business Jets | | | B737 A320 | Apache | Blackhawk | TOW Missile | SM2 | Global 7500/8000 ...
Ducommun(DCO) - 2023 Q3 - Quarterly Report
2023-11-07 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR Commission File Number 001-08174 _________________________________________________________ ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...
Ducommun(DCO) - 2023 Q2 - Earnings Call Presentation
2023-08-05 19:05
28 Narrowbody 53% Military & Space 23% Business Jets 9% Widebody 9% All Other 6% LISTED Structural Systems – Key Sectors and Applications | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------|----------------------------------------|------------------|--------------------------------------------|-------------|------------------------------------------------------|----------------------------------|----------------------------|-----------------------| | Commercial Aerospace 19% ...
Ducommun(DCO) - 2023 Q2 - Earnings Call Transcript
2023-08-05 19:03
Suman Mookerji - Senior Vice President, Chief Financial Officer, Controller and Treasurer Jason Gursky - Citi Operator Certain statements today that are not historical facts, including any statements as to future market conditions, results of operations and financial projections are forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are therefore, prospective. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actu ...