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SANTA ANA, CA – Ducommun reported third quarter Electronic Systems net revenue was $90.6 million, up 5.7% year-over-year. The increase is attributed to $5 million higher revenue within the military and space end-use markets and $200,000 higher revenue within the commercial aerospace end-use markets.

Electronic Systems third quarter operating income was $9.7 million, or 10.7% of revenue, compared to $9.1 million, or 10.6% of revenue, for the comparable quarter in 2018. The year-over-year increase was due to lower restructuring charges.

Ducommun reported total third quarter revenue increased 13.3% year-over-year to $181.1 million, as a result of $12.6 million higher revenue in the commercial aerospace end-use markets and $9 million higher revenue in the military and space end-use markets.

Net income for the third quarter was $8.3 million, an increase of 97.6% year-over-year. Adjusted EBITDA increased 30.8% year-over-year to $23.6 million.

Operating income was $14.6 million, or 8.1% of revenue, compared to $6.8 million, or 4.3% of revenue, in the comparable period last year. The year-over-year increase was due to higher revenue and the associated operating leverage at the performance centers, improved operations performance, and lower restructuring charges in the current year.

Adjusted EBITDA for the third quarter was $23.6 million, or 13.1% of revenue, compared to $18.1 million, or 11.3% of revenue, for the comparable period in 2018, an increase of 30.8%.

“I am very happy with the third quarter results and continued strong performance of the company,” said Stephen G. Oswald, chairman, president and CEO. “We now have had five straight quarters of double-digit revenue increases averaging 15%, with over 85% of the gains being organic growth. Our team continues to do an excellent job as well, relentlessly driving performance and cost through our Performance Center strategy, expanding operating margins in the quarter by 380 basis points to 8.1% and achieving earnings of $0.70 per diluted share. Our strong performance also reflects ongoing demand for Ducommun’s broad array of engineering processes, products and aftermarket services, along with pricing discipline. Adjusted EBITDA was also strong, increasing almost 31% year-over-year to $24 million, and we generated $12 million in cash from operations, while our backlog remains near record levels.

“As we look forward, we remain confident on a strong finish for 2019 and continued momentum in 2020, despite the continued uncertainty on the Boeing 737 Max return to service. We see great balance in the portfolio with our defense business and the many other commercial platforms we serve to deliver for Ducommun shareholders.”

During the third quarter, net cash provided by operations was $12 million, compared to $7.2 million during the third quarter of 2018.

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