Ducommun Reports Results for the Fourth Quarter Ended December 31, 2020
SANTA ANA, Calif.,– Ducommun Incorporated reported results for its fourth quarter and year ended December 31, 2020.
Fourth Quarter 2020 Recap
- Revenue of $157.8 million
- GAAP net income of $9.7 million, or $0.80 per diluted share
- Adjusted net income for the quarter of $10.8 million, or $0.89 per diluted share
- Gross margin increased 60 basis points year-over-year to 22.1%
- Adjusted EBITDA of $22.8 million, or 14.4% of revenues, an increase of 90 basis points year-over-year
“I am proud of the Ducommun team continuing to move forward in the fourth quarter and delivering excellent results. The numbers show the strength of our product lines, diversity of our customer base and performance positions us well for the future,” said Stephen G. Oswald, chairman, president and chief executive officer. “Our military and space revenue rose more than 25% in both the fourth quarter and the year as a whole, resulting in total 2020 revenue of almost $425 million, a new record for the Company. At the same time, ongoing cost saving projects and our lean operations initiatives along with an improved product mix, drove fourth quarter gross margins up 60 basis points year-over-year, to 22.1%, and earnings of $0.80 per diluted share. The positive results during the pandemic are a clear signal that Ducommun’s value offering to the marketplace and operational performance will deliver for our shareholders in the future.
“With a defense backlog* at all time highs and some forecasted stability in our commercial business, we are optimistic about the quarters to come. Given improving fundamentals in aircraft production, and pent up demand for air travel post pandemic, the Company is in great shape to weather the remaining headwinds and drive higher growth in the second half of 2021, with the 2022 outlook being even better. I want to thank our employees for their dedication to our success, Ducommun’s investors for their support, and our customers for their loyalty throughout 2020.”
Fourth Quarter Results
Net revenue for the fourth quarter of 2020 was $157.8 million, compared to $186.9 million for the fourth quarter of 2019. The 15.6% decrease year-over-year was primarily due to the following:
- $42.2 million lower revenue within the Company’s commercial aerospace end-use markets due to lower build rates on large aircraft platforms; and
- $10.1 million lower revenue within the Company’s Industrial end-use markets due to timing of customer requirements; partially offset by
- $23.2 million higher revenue within the Company’s military and space end-use markets due to higher build rates on various missile platforms and military fixed-wing aircraft platforms.