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EX - 99.1 2 ex99_1q12021earningsrelease.htm EX - 99.1 200 Sandpointe Avenue | Suite 700 Santa Ana , CA 92707-5759 657.335.3665 www.ducommun.com NEWS RELEASE EXHIBIT 99.1 Ducommun Ducommun Incorporated Reports Results for the First Quarter Ended April 3 , 2021 Solid Start to 2021 Along with Continued Margin Strength SANTA ANA , CALIFORNIA ( May 4 , 2021 ) – Ducommun Incorporated ( NYSE : DCO ) ( “ Ducommun ” or the “ Company ” ) today reported results for its first quarter ended April 3 , 2021 . First Quarter 2021 Recap . Revenue was $ 157.2 million • Net income of $ 6.7 million , or $ 0.55 per diluted share • Adjusted net income of $ 7.1 million , or $ 0.58 per diluted share • Gross margin of 21.1 % • Adjusted EBITDA of 13.5 % of revenue " Our first quarter performance continued to illustrate the resilience of Ducommun's product portfolio and operating strength , especially in our Defense sector which is building the foundation for a solid year ahead and a return to revenue growth in 2021 , " said Stephen G. Oswald , chairman , president and chief executive officer . " Military demand once again served to offset weakness in our commercial business , and continued overall strong product mix resulted in solid gross margins and Adjusted EBITDA across the Company . Looking ahead , we are optimistic that increasing build rates in the second half of 2021 and 2022 will have a positive impact on key aircraft platforms across our customers such as Boeing , Airbus and Gulfstream . We believe pent - up demand in air travel and vaccination progress will ultimately drive increased shipments across a host of programs where Ducommun has a strong market position . While still early , 2021 looks promising for the aerospace industry and Ducommun is uniquely positioned to benefit as the economy continues to strengthen . " First Quarter Results Net revenue for the first quarter of 2021 was $ 157.2 million compared to $ 173.5 million for the first quarter of 2020. The year- over - year decrease of 9.4 % was primarily due to the following : • $ 25.2 million lower revenue in the Company's commercial aerospace end - use markets due to lower build rates on large aircraft platforms and regional and business aircraft platforms ; partially offset by $ 12.2 million higher revenue in the Company's military and space end - use markets due to higher build rates on military fixed - wing aircraft platforms and other military and space platforms . Net income for the first quarter of 2021 was $ 6.7 million , or $ 0.55 per diluted share , compared to $ 7.9 million , or $ 0.67 per diluted share , for the first quarter of 2020. This reflects a $ 3.7 million decrease in gross profit due to lower revenue , partially offset by lower interest expense of $ 1.4 million . Gross profit for the first quarter of 2021 was $ 33.1 million , or 21.1 % of revenue , compared to gross profit of $ 36.8 million , or 21.2 % of revenue , for the first quarter of 2020. Gross profit as a percentage of net revenue year - over - year was essentially flat due to unfavorable manufacturing volume , partially offset by favorable product mix and lower compensation and benefit costs . Operating income for the first quarter of 2021 was $ 10.6 million , or 6.8 % of revenue , compared to $ 13.6 million , or 7.8 % of revenue , in the comparable period last year . The year - over - year decrease of $ 3.0 million was due to lower 1