Ducommun Inc. Files 10-Q for Q2 2024

TL;DR

Ducommun's Q2 2024 10-Q is in. Check financials.

AI Summary

Ducommun Inc. reported its second quarter 2024 results ending June 29, 2024. The company's filing details its financial performance and operational updates for the period. Specific financial figures and operational highlights are provided within the report.

Why It Matters

This 10-Q filing provides investors and analysts with a detailed look into Ducommun's financial health and operational performance during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that can reveal both positive and negative trends, impacting the company's stock price and investor confidence.

Key Numbers

• 20240629 — End of Fiscal Quarter (This date marks the end of the period covered by the 10-Q filing.)
• 20240808 — Filing Date (This is the date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• DUCOMMUN INC /DE/ (company) — Filer of the 10-Q report
• 20240629 (date) — End of the reporting period for the 10-Q
• 20240808 (date) — Date the 10-Q was filed
• COSTA MESA (location) — City where Ducommun Inc. is located

FAQ

Filing Documents

• dco-20240629.htm (10-Q) — 1412KB
• ex33-amendedandrestatedbyl.htm (EX-3.3) — 91KB
• ex104-formofperformancesto.htm (EX-10.4) — 70KB
• ex105-formofcashxbasedlong.htm (EX-10.5) — 58KB
• ex106-formofrevenueperform.htm (EX-10.6) — 45KB
• ex107-formofrevenueperform.htm (EX-10.7) — 40KB
• ex108-formofrestrictedstoc.htm (EX-10.8) — 35KB
• ex109-formofstockoptionagr.htm (EX-10.9) — 39KB
• dco-q2202410xqex31_1.htm (EX-31.1) — 10KB
• dco-q2202410xqxex31_2.htm (EX-31.2) — 10KB
• dco-q2202410xqxex32.htm (EX-32) — 9KB
• 0001628280-24-035846.txt ( ) — 7145KB
• dco-20240629.xsd (EX-101.SCH) — 43KB
• dco-20240629_cal.xml (EX-101.CAL) — 69KB
• dco-20240629_def.xml (EX-101.DEF) — 216KB
• dco-20240629_lab.xml (EX-101.LAB) — 493KB
• dco-20240629_pre.xml (EX-101.PRE) — 359KB
• dco-20240629_htm.xml (XML) — 930KB

. FINANCIAL INFORMATION

PART I . FINANCIAL INFORMATION

Forward Looking Statements

Forward Looking Statements 3

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 5 Condensed Consolidated Balance Sheets as of June 29, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Income for the Three and Six Months Ended June 29, 2024 and July 1, 2023 6 Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 29, 2024 and July 1, 2023 7 Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Six Months Ended June 29, 2024 and July 1, 2023 8 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 29, 2024 and July 1, 2023 9 Notes to Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 39

Controls and Procedures

Item 4. Controls and Procedures 40

. OTHER INFORMATION

PART II . OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 40

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 41

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 41

Other Information

Item 5. Other Information 41

Exhibits

Item 6. Exhibits 42

Signatures

Signatures 43 2 Table of Contents

FORWARD-LOOKING STATEMENTS AND RISK FACTORS

FORWARD-LOOKING STATEMENTS AND RISK FACTORS This Quarterly Report on Form 10-Q ("Form 10-Q") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be preceded by, followed by or include words such as "could," "may," "believe," "expect," "anticipate," "plan," "estimate," "expect," "would," or similar expressions. These statements are based on the beliefs and assumptions of our management at the time such statements are made. Generally, forward-looking statements include information concerning our possible or assumed future actions, events or results of operations. Forward-looking statements specifically include, without limitation, the information in this Form 10-Q regarding: future sales, earnings, cash flow, revenue recognition, uses of cash and other measures of financial performance, projections or expectations for future operations, including costs to complete contracts, goodwill impairment evaluations, useful life of intangible assets, unrecognized tax benefits and effective tax rate, environmental remediation costs, insurance recoveries, industry trends and expectations, including ramp up times for build rates, our plans with respect to restructuring activities, capital expenditures, completed acquisitions, future acquisitions and dispositions and expected business opportunities that may be available to us. Although we believe that the expectations reflected in the forward-looking statements are based on reasonable assumptions, these forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. We cannot guarantee future results, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. All written and oral forward-looking statements made in connection w

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Ducommun Incorporated and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands, except share and per share data) June 29, 2024 December 31, 2023 Assets Current Assets Cash and cash equivalents $ 29,405 $ 42,863 Accounts receivable, net of allowance for credit losses of $ 2,363 and $ 2,006 at June 29, 2024 and December 31, 2023, respectively 106,585 104,692 Contract assets 210,314 177,686 Inventories 201,831 199,201 Production cost of contracts 6,181 7,778 Other current assets 14,398 17,349 Total Current Assets 568,714 549,569 Property and Equipment, Net of Accumulated Depreciation of $ 188,260 and $ 181,412 at June 29, 2024 and December 31, 2023, respectively 111,299 111,379 Operating Lease Right-of-Use Assets 27,128 29,513 Goodwill 244,600 244,600 Intangibles, Net 157,967 166,343 Deferred Income Taxes 641 641 Other Assets 21,151 18,874 Total Assets $ 1,131,500 $ 1,120,919 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 76,810 $ 72,265 Contract liabilities 50,034 53,492 Accrued and other liabilities 40,293 42,260 Operating lease liabilities 7,943 7,873 Current portion of long-term debt 10,938 7,813 Total Current Liabilities 186,018 183,703 Long-Term Debt, Less Current Portion 250,896 256,961 Non-Current Operating Lease Liabilities 20,414 22,947 Deferred Income Taxes 2,945 4,766 Other Long-Term Liabilities 15,328 16,448 Total Liabilities 475,601 484,825 Commitments and Contingencies (Notes 10, 12) Shareholders' Equity Common Stock - $ 0.01 par value; 35,000,000 shares authorized; 14,746,921 and 14,600,766 shares issued and outstanding at June 29, 2024 and December 31, 2023, respectively 147 146 Additional Paid-In Capital 208,930 206,197 Retained Earnings 436,553 421,980 Accumulated Other Comprehensive Income 10,269 7,771 Total Shareholders' Equity 655,899 636,094 Total Liabilities and Shareholders' Equity $ 1,131,500 $ 1,120,919

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View this 10-Q filing on SEC EDGAR