Ducommun Incorporated · NYSE:DCO
Ducommun — Investor Presentation (June 2019)
21 slides from Ducommun's investor presentation, June 2019
Slide 1: Investor Presentation
Investor Presentation June 2019
Slide 2: Disclosures
Disclosures Forward-Looking Statements: This presentation 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 the words “believes,” “expects,” “anticipates,” “intends,” “
Slide 3: Company Snapshot
Company Snapshot Manufacturer of complex electronics and structural systems for commercial aerospace and military, defense and space programs Extensive Offerings Diverse Content on Expansive Footprint on Commercial and Key Missile Platforms for Commercial and Military Fixed Wing Aircraft Land, Sea a
Slide 4: Investment Highlights
Investment Highlights • Unique, sought-after range of capabilities Defendable • Established relationships with blue-chip industry leaders Niche • Strategically positioned on key commercial aerospace and defense platforms • Strong cash flow to reduce debt and fund long-term growth Improving • Focused
Slide 5: Two Business Segments – Revenues
Two Business Segments – Revenues Structural Systems LTM Q1 2019 Revenues 21% 48% of 7% LTM Q1 2019 Revenues 79% 44% $651.4 million Electronic Systems 49% 14% 52% of 21% LTM Q1 2019 Revenues 65% Military & Space Commercial Aerospace Industrial 5
Slide 6: Backlog Supports Focus on Aerospace & Defense Strategy
Backlog Supports Focus on Aerospace & Defense Strategy Structural Systems Total Backlog at March 30, 2019 18% 60% of 4% Total Backlog 82% 39% $883.8 million Electronic Systems 10% 57% 19% 40% of Total Backlog 71% Military & Space Commercial Aerospace Industrial 6
Slide 7: We Go to Market as One Company with Broad Capabilities
We Go to Market as One Company with Broad Capabilities Each business is built on a unique set of competencies Focused Performance Centers of Excellence Electronic Systems Structural Systems • Cockpit systems • Circuit card • Integrated • Wire harnesses • Composite • Titanium forming • Aluminum • Ext
Slide 8: Commercial & Military Fixed Wing Aircraft
Extensive Offerings on Commercial & Military Fixed Wing Aircraft 8
Slide 9: Commercial & Military Rotary Aircraft
Expansive Footprint on Commercial & Military Rotary Aircraft 9
Slide 10: Key Missile Platforms Land, Sea & Air
Diverse Content on Key Missile Platforms Land, Sea & Air 10
Slide 11: Growth Across Top Platforms
Growth Across Top Platforms DCO 3-Year CAGR Forecast Boeing 737 98% Structural Missiles (30+ programs) 99% Electronic 4% to 6% Apache (Boeing) 100% Structural Airbus 320 99% Structural Commercial Aerospace Military & Space F-35 (JSF) 92% Electronic Boeing 787 78% Structural 2% to 3% F-18 91% Electro
Slide 12: Commercial Macro Trends
Commercial Macro Trends Commercial Aircraft Deliveries | # of Aircraft Commercial Aerospace Aircraft Backlogs(1) 2,400 7.0 Airbus and Boeing have record backlogs, approaching 6 years on average 6.0 1,800 5.0 A320 8 Years No of Aircraft 962 4.0 A350 5 Years 1,200 800 901 (%) 629 635 688 718 3.0 588 6
Slide 13: Defense Macro Trends – Defense Spending Outlook
Defense Macro Trends – Defense Spending Outlook U.S. Defense Spending Outlook(1) 800 700 Sequestration • Revitalization of military readiness with an increasing defense budget with solid funding on DoD Budget Authority ($B) 600 missile platforms 500 400 • Platform upgrades, especially for both milit
Slide 14: Growth Drivers
Growth Drivers % of DCO LTM Q1 2019 % of Key 3-Year Growth Revenues Backlog at 3/30/19 Platforms Outlook Boeing 737, 737 MAX Commercial and 787 Dreamliner 49% 57% Aerospace Airbus A320, A320neo, 5-7% A350 and A220 F-18 Aircraft Tomahawk Missile Military and 44% 39% Patriot Missile Space 3-5% F-35 (J
Slide 15: Why We Win
Why We Win Innovative, value-added solutions for tough technical challenges (e.g., temperature, weight, vibration, pressure) Proprietary engineered products with aftermarket support Unique and niche capabilities in electronics and structural manufacturing services for products and assemblies f
Slide 16: Why to Invest in Ducommun
Why to Invest in Ducommun Strategically Positioned Highly Engineered Products Growing portfolio of highly engineered products and proprietary technologies Blue Chip Customers Long-term relationships with broad base of blue chip customers Focused Platform Positions Aerospace & defense focused on larg
Slide 17: Appendix
>) Ducommun Appendix
Slide 18: Our Rich History
Our Rich History 1849 1950s 2000s Founded as a Becomes largest Expanded into watch business, metals materials engineered then general supplier to the products through store during Gold aerospace industry acquisitions Rush years in SoCal 1848 1930s 1960s 2017– California Provides aircraft Diversifies
Slide 19: Key Facts
Key Facts Ducommun Incorporated Exchange/Ticker NYSE: DCO Share price(1) $45.13 52-week high / low(1) $52.04 / $31.05 Diluted shares outstanding(2) 11.8 million Market cap(1) $518.9 million Cash(2) $3.7 million Net debt outstanding(2) $229.5 million Enterprise value $748.4 million LTM Q1 2019 revenu
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Note Regarding Non-GAAP Financial Information: This presentation contains non-GAAP financial measures, including Adjusted EBITDA (which excludes interest expense, income tax expense (benefit), depreciation, amortization, stock-based compensation expense, net gain on dives
Slide 21: Adjusted EBITDA for LTM Q1 2019
Adjusted EBITDA for LTM Q1 2019 (dollars in thousands) Net income $ 13,907 Interest expense 14,476 Income tax expense 2,504 Depreciation 14,254 Amortization 12,449 Stock-based compensation 5,414 Restructuring charges 12,619 Inventory step-up 622 Loss on extinguishment of debt 926 Other debt refinanc