Ducommun Incorporated (DCO) swung to a net profit for the quarter ended Oct. 01, 2016. The company has made a net profit of $5.01 million, or $ 0.44 a share in the quarter, against a net loss of $9.52 million, or $0.86 a share in the last year period. Revenue during the quarter dropped 18 percent to $132.57 million from $161.67 million in the previous year period. Gross margin for the quarter expanded 664 basis points over the previous year period to 19.03 percent. Operating margin for the quarter period stood at positive 6.07 percent as compared to a negative 0.73 percent for the previous year period.
Operating income for the quarter was $8.05 million, compared with an operating loss of $1.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $14.88 million compared with $6.57 million in the prior year period. At the same time, adjusted EBITDA margin improved 716 basis points in the quarter to 11.22 percent from 4.06 percent in the last year period.
"The third quarter illustrated continued progress towards reaching our long-term performance goals and growth objectives," said Anthony J. Reardon, chairman, president and chief executive officer. "While revenue and gross margins were essentially flat sequentially compared to the second quarter, our backlog rose to $566 million - the highest ever, net of divestitures - and we’re well positioned for sales acceleration in the fourth quarter and beyond. At the same time we paid down an additional $10 million of debt, leaving us with the strongest balance sheet since our acquisition of LaBarge in 2011. We are pleased with these results but remain focused on further operating improvement. We are pursuing strategic growth opportunities to leverage our expertise in commercial aerospace electronics, titanium, and composite systems, providing innovative solutions that distinguish Ducommun from our competitors."
Working capital declines
Ducommun Incorporated has witnessed a decline in the working capital over the last year. It stood at $142.12 million as at Oct. 01, 2016, down 23.60 percent or $43.91 million from $186.03 million on Oct. 03, 2015. Current ratio was at 2.57 as on Oct. 01, 2016, down from 2.93 on Oct. 03, 2015. Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 104 days for the last year period. Days sales outstanding went up to 57 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 55 days for the quarter compared with 88 days for the previous year period. At the same time, days payable outstanding went up to 49 days for the quarter from 34 for the same period last year.
Debt comes down significantly
Ducommun Incorporated has recorded a decline in total debt over the last one year. It stood at $176.62 million as on Oct. 01, 2016, down 32.08 percent or $83.41 million from $260.04 million on Oct. 03, 2015. Total debt was 33.90 percent of total assets as on Oct. 01, 2016, compared with 37.56 percent on Oct. 03, 2015. Debt to equity ratio was at 0.84 as on Oct. 01, 2016, down from 1.04 as on Oct. 03, 2015. 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
