Ducommun Incorporated (DCO) has reported 84.39 percent plunge in profit for the quarter ended Apr. 01, 2017. The company has earned $2.12 million, or $0.18 a share in the quarter, compared with $13.55 million, or $1.21 a share for the same period last year. Revenue during the quarter dropped 4.12 percent to $136.30 million from $142.15 million in the previous year period. Gross margin for the quarter contracted 68 basis points over the previous year period to 18.29 percent. Total expenses were 96.99 percent of quarterly revenues, up from 96.98 percent for the same period last year. That has resulted in a contraction of 1 basis points in operating margin to 3.01 percent.
Operating income for the quarter was $4.10 million, compared with $4.29 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $11.70 million compared with $11.15 million in the prior year period. At the same time, adjusted EBITDA margin improved 74 basis points in the quarter to 8.59 percent from 7.84 percent in the last year period.
“Ducommun’s first quarter results reflect the demand dynamics of our various end-use markets at the start of what we expect to be a solid year ahead,” said Stephen G. Oswald, president and chief executive officer. “Net of divestitures, revenue was up slightly year-over-year, benefiting from an increase in defense shipments and solid sales across several large commercial platforms. We also paid down an additional $5 million of debt, more than doubled capital expenditures, after generating $13.2 million in cash from operations during the quarter.
Working capital decreases marginally
Ducommun Incorporated has witnessed a decline in the working capital over the last year. It stood at $136.17 million as at Apr. 01, 2017, down 2.28 percent or $3.18 million from $139.36 million on Apr. 02, 2016. Current ratio was at 2.49 as on Apr. 01, 2017, down from 2.55 on Apr. 02, 2016. Cash conversion cycle (CCC) has decreased to 59 days for the quarter from 113 days for the last year period. Days sales outstanding were almost stable at 50 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 52 days for the quarter compared with 98 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 35 for the same period last year.
Debt comes down
Ducommun Incorporated has recorded a decline in total debt over the last one year. It stood at $162.16 million as on Apr. 01, 2017, down 12.84 percent or $23.89 million from $186.05 million on Apr. 02, 2016. Total debt was 31.31 percent of total assets as on Apr. 01, 2017, compared with 35.82 percent on Apr. 02, 2016. Debt to equity ratio was at 0.76 as on Apr. 01, 2017, down from 0.93 as on Apr. 02, 2016. Interest coverage ratio improved to 2.57 for the quarter from 1.79 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
