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EX - 99.1 2 ex99_1q22021 earningsrelease.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 Second Quarter Ended July 3 , 2021 Return to Revenue Growth ; Further Gross Margin Expansion - SANTA ANA , CALIFORNIA ( August 12 , 2021 ) – Ducommun Incorporated ( NYSE : DCO ) ( “ Ducommun " or the " Company " ) today reported results for its second quarter ended July 3 , 2021 . Second Quarter 2021 Recap • Revenue was $ 160.2 million • Net income of $ 8.4 million , or $ 0.69 per diluted share • • Adjusted net income of $ 9.0 million , or $ 0.74 per diluted share • Gross margin increased 80 basis points year - over - year to 23.0 % Adjusted EBITDA of $ 23.4 million , or 14.6 % of revenue , an increase of 80 basis points year - over - year " Ducommun's second quarter results were excellent as the Company benefited from the continual improvements in our defense markets along with strong operating management and a slowly improving commercial aerospace market , ” said Stephen G. Oswald , chairman , president and chief executive officer . " Revenue increased 9 % year - over - year due to military demand , leading to our first quarterly top - line growth since the pandemic began in March 2020. At the same time , Ducommun's gross margin expanded 80 basis points to 23 % , net income improved to $ 0.69 per diluted share , and adjusted EBITDA increased to 14.6 % of revenue . I wanted to mention as well that the gross margin in the quarter was the highest percentage achieved in more than a decade . " The highlight of the quarter and the year was the recent announcement that Ducommun was selected as an Airbus Detail Parts Partner for the first time in our history and , in tandem , the Company was awarded a five - year contract to provide titanium for key products on the A320 and A330 platforms . This is a significant validation and endorsement for our industry leading titanium business and a major milestone for the Company , strengthening our position as a supplier to Airbus . Given this backdrop , and the overall improving commercial aerospace market dynamics , we are optimistic about growth acceleration in future quarters . Ducommun also has the operating footprint and capacity and is ready to serve the expected higher build rates as the commercial aerospace recovery continues to take hold . " Second Quarter Results Net revenue for the second quarter of 2021 was $ 160.2 million compared to $ 147.3 million for the second quarter of 2020 . The year - over - year increase of 8.7 % was primarily due to the following : • $ 18.5 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 various missile platforms ; partially offset by $ 2.1 million lower revenue in the Company's commercial aerospace end - use markets due to lower build rates on large aircraft platforms . Net income for the second quarter of 2021 was $ 8.4 million , or $ 0.69 per diluted share , compared to $ 5.1 million , or $ 0.43 per diluted share , for the second quarter of 2020. This reflects a $ 4.1 million increase in gross profit due to higher revenue , partially offset by higher selling , general and administrative ( “ SG & A ” ) expenses of $ 1.7 million . 1