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Apr 02, 2022
Ducommun Q1 2022 Earnings Report
Reported a solid start to 2022 and announced a restructuring initiative.
Key Takeaways
Ducommun Incorporated reported a 4% increase in revenue to $163.5 million compared to Q1 2021, driven by commercial aerospace recovery and solid defense business performance. Net income increased to $8.1 million, or $0.66 per diluted share. The company's backlog reached a record $943 million, led by growth in commercial aerospace orders. Additionally, a restructuring plan was announced to accelerate strategic goals, anticipating $10 million to $14 million in pre-tax restructuring charges over the next 12 months.
Net revenue was $163.5 million, a 4% increase year-over-year.
Net income reached $8.1 million, or $0.66 per diluted share.
Adjusted EBITDA was $20.1 million, representing 12.3% of revenue.
Backlog hit a record high of $943 million, driven by commercial aerospace growth.
Revenue by Segment
Forward Guidance
Ducommun is implementing a restructuring plan to accelerate strategic goals and enhance shareholder value. This plan is expected to result in cost savings and improved performance in the coming years.
Positive Outlook
- Anticipated cost savings of $3 million to $4 million annually beginning in 2023.
- Improved positioning for stronger performance.
- Acceleration of growth.
- Focus on enhancing shareholder value.
- Continuing recovery in commercial aerospace.
Challenges Ahead
- Expected pre-tax restructuring charges of $10 million to $14 million over the next 12 months.
- Approximately $4 million in outlays for employee separation and facility consolidation.
- $6 million to $10 million in non-cash charges for inventory write-down and asset impairment.
- Potential risks and uncertainties related to the restructuring plan.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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