Ducommun Incorporated · NYSE:DCO
Ducommun — Merger or Acquisition (April 2011)
19 slides from Ducommun's merger presentation, Apr 5, 2011
Slide 1: Ducommun Acquisition of LaBarge
Exhibit 99.3 Ducommun Acquisition of LaBarge April 4, 2011
Slide 2: Forward-Looking Statements/Additional Information
Forward-Looking Statements/Additional Information Forward-Looking Statements Certain statements contained in this press release regard matters that are not historical facts and are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Refo
Slide 3: Acquiring LaBarge: A Transformational Event
Acquiring LaBarge: A Transformational Event Strengthens Ducommun’s market position as a significant Tier 2 supplier for both structural and electronic assemblies Creates platform for Ducommun Technologies as a leading global A&D provider of Electronics Manufacturing Services (EMS) for low volume/hig
Slide 4: LaBarge at a Glance
LaBargeat a Glance A proven leader in electronics manufacturing services to customers in a diverse group of Headquarters — St. Louis, MO markets Founded in 1953 Expertise in high-mix, low-volume manufacture of Employees — Approximately 1,600 custom, complex, high-reliability, mission-critical FYE —J
Slide 5: A Full Service EMS Provider
A Full Service EMS Provider Broad Based Specialized Capabilities Printed Circuit Card Interconnect Systems Assemblies Higher-Level Assemblies Systems Integration Leading Provider of Niche Electronics Manufacturing Services (EMS) 4
Slide 6: LaBarge Market Diversification
LaBarge Market Diversification Defense Industrial Natural Resources Medical Missile systems Glass container Wind power generation Surgical systems Radar systems manufacturing systems systems Patient monitoring and Aircraft applications Electronic test equipment Oilfield services equipment therapy de
Slide 7: Broadens Industry Focus and Product Portfolio
Broadens Industry Focus and Product Portfolio Ducommun Revenue Ducommun/LaBarge Pro Forma Revenue Commercial Medical Other Aerospace Natural 5% 1% 40% Resources 11% Industrial Defense & 11% Space 50% Defense & Commercial Space Aerospace 60% 23% Ducommun Technologies Ducommun- 33% Ducommun Aerostruct
Slide 8: Diversified, Blue-Chip Customer Base
Diversified, Blue-Chip Customer Base Ducommun Revenue Ducommun/LaBarge Pro Forma Revenue 26% 15% 1 10% Other 44% Other 1 US Government 57% Owens-Illinois 4% 6% 4% 12% 1 3% US Government 8% 2% 6% 3% CY 2010 Sales: CY 2010 PF Sales: $408 million $732 million Significant Customer Cross-Selling Opportun
Slide 9: Acquisition Builds DCO's Technology Products
Acquisition Builds DCO’s Technology Products Integrated Electronic Assemblies Interconnect Systems Wiring Harness Temperature Control Interconnect Systems Multi-Branched Harness High-Flexibility Molded Gimbal Cable Display Systems / EMS Assemblies PCB Assemblies Display Panels Military Radar Systems
Slide 10: Increased Content on Growing A&D Platforms
Increased Content on Growing A&D Platforms Expansion of Current Platforms UH-60 Black Hawk Firewalls Overhead panel assemblies Window assemblies Circuit card assemblies and coaxial cables Hellfire rack Cockpit and airframe harnesses Door assemblies Erosion shields /leading edge for rotary wings Exha
Slide 11: Transaction Overview
Transaction Overview Ducommun’s purchase price per LaBarge share: $19.25 Total enterprise value paid for business: ~$340 million, excluding transaction and financing fees Total purchase price multiple for business: enterprise value/CY 2010 EBITDA of 8.7x Anticipate generation of annual pre-tax savin
Slide 12: Sources and Uses
Sources and Uses Sources Uses ($mm) ($mm) Senior Secured Term Loan 190.0 Purchase of 100% of LaBarge Equity 310.3 Senior Notes 200.0 Refinance Ducommun and LaBarge Debt 33.5 New Cash on Balance Sheet 14.7 Transaction and Financing Fees 31.5 TotalSources 390.0 TotalUses 390.0 Notes: 1 Reflects balanc
Slide 13: In Summary: A Great Strategic Fit
In Summary: A Great Strategic Fit Creates a leading provider of low-volume/high-mix custom, complex, high reliability Increases Overall mission-critical services and products to the A&D industry Electronics Expands Ducommun’s value-added service offerings including engineering and design, program Ma
Slide 14: Appendix
U Appendix DCO a NYSE
Slide 15: LaBarge: A Decade of Solid Growth
LaBarge: A Decade of Solid Growth Bookings, Sales & Earnings Last – 10 Years (dollars in millions) $350.0 $16.0 $300.0 $14.0 $12.0 $250.0 $10.0 $200.0 $8.0 $150.0 $6.0 $100.0 $4.0 $50.0 $2.0 $- $- FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 Bookings Net Sales Net Earnings Note:
Slide 16: LaBarge Cash Flow Averages $18M Annually
LaBarge Cash Flow Averages $18M Annually Net Cash Provided by Operating Activities vs. Capital Expenditures $35 $29.6 $30 $25 $20 $18.0 $15 $14.0 $12.0 $10.8 $10 $5.2 $4.8 $4.2 $5 $0 FY 07 FY 08 FY 09 FY 10 Net Cash Provided by Operating ActivitiesCapital Expenditures Note: Fiscal year ends on June
Slide 17: Overall Growth in EMS
Overall Growth in EMS Defense EMS Growth (2006–2011E) Overall Market Size and Growth ($ in billions) ($ in billions) $5.0 $600.0 $4.4 $479.0 $500.0 $4.0 $400.0 $3.0 $2.8 $300.0 $269.0 $2.0 $200.0 $1.0 $100.0 $0.0 $0.0 2006 2011E 2009 2014E $2.8bn in 2006 to $4.4bn by 2011 $269bn in 2009 to $479bn by
Slide 18: Acquisition Pro Forma Capitalization
Acquisition Pro Forma Capitalization Actual and Pro Forma Capitalization as of 12/31/10 Adjusted Cum. Adjusted Cum. EBITDA Adjusted EBITDA3 Ducommun Capitalization Multiple Pro Forma Capitalization Multiple ($mm, unless noted) (12/31/10) (%) (x) (12/31/10) (%) (x) Cash 10.3 27.4 1 RevolvingCreditFac
Slide 19: Established 1849
Established 1849 Ducommun 5) ee = Incorporated