SANTA ANA, CA – Ducommun reported second quarter electronic systems segment net revenue was $89.3 million, up 5.7% year-over-year.
The increase was a result of $5.9 million higher revenue within the military and space end-use markets and $200,000 higher revenue within the commercial aerospace end-use markets, which was partially offset by $1.3 million lower revenue within the industrial end-use markets.
Electronic Systems’ operating income was $9.9 million, or 11.1% of revenue, for the second quarter compared to $8.7 million, or 10.3% of revenue, for the same quarter in 2018.
Total revenue increased 16.6% year-over-year to $180.5 million. Net income was $7.8 million, up 387.5% compared to the second quarter last year. Operating income for the second quarter was $13.6 million, or 7.5% of revenue, compared to $5.6 million, or 3.6% of revenue, in the comparable period last year. Adjusted EBITDA increased 19.7% year-over-year to $22.4 million.
“The second quarter of 2019 continued to show the strength of our product lines, solid demand for the key programs and customers we serve, along with operational improvements,” said Stephen G. Oswald, chairman, president and CEO. “Even with the ongoing market challenges related to the Boeing 737 MAX program, our revenue grew an impressive 16.6% year-over-year to $180.5 million. This result was due to an increase in build rates in both commercial and military platforms across our wide and varied customer base, along with additional content. At the same time, we posted an increase in operating income on an adjusted basis of 23.7%, resulting in an operating margin of 7.5%.
“We were also delighted with the announcement last week of our newly signed strategic supplier agreement with Raytheon Missile Systems. Being the first supplier to be selected by RMS for this initiative is a great first step forward for a stronger relationship and higher revenue opportunities for Ducommun in the future. It will allow us to collaborate and compete on every platform, either new or existing. We appreciated, as well, the recognition of our Monrovia, California performance center being selected in July as a 2019 Raytheon Supplier Excellence Premier Award winner.
“The company also announced at the Paris Air Show that we were on track with our $200 million contract to supply Middle River Aerostructure Systems with LEAP engine nacelle components for the Airbus A320 platform utilizing Ducommun’s VersaCore Composite technology.”
During the second quarter, net cash provided by operations was $9.8 million, compared to $15.9 million during the second quarter of 2018.