Ducommun Incorporated · NYSE:DCO
Ducommun — Investor Presentation (May 2020)
19 slides from Ducommun's investor presentation, May 2020
Slide 1: Investor Presentation
Investor Presentation May 2020
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 – Revenue
Two Business Segments – Revenue Structural Systems LTM Q1 2020 Revenue 26% 48% of 7% LTM Q1 2020 Revenue 74% $722.0 million 48% Electronic Systems 45% 12% 19% 52% of LTM Q1 2020 Revenue 69% 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 28, 2020 33% 51% of 3% Total Backlog 67% 43% $876.4 million 54% Electronic Systems 6% 18% 49% of Total Backlog 76% Military & Space Commercial Aerospace Industrial 6
Slide 7: We Go to Market as One Company with Broad Capabilities
We Go to Market as One Company with Broad Capabilities Each business is built on a unique set of competencies Focused Performance Centers of Excellence Electronic Systems Structural Systems • Cockpit systems • Circuit card • Integrated • Wire harnesses • Composite • Titanium forming • Aluminum • Eng
Slide 8: Extensive Offerings on Commercial & Military Fixed Wing Aircraft
Extensive Offerings on Commercial & Military Fixed Wing Aircraft 8
Slide 9: Expansive Footprint on Commercial & Military Rotary Aircraft
Expansive Footprint on Commercial & Military Rotary Aircraft 9
Slide 10: Diverse Content on Key Missile Platforms Land, Sea & Air
Diverse Content on Key Missile Platforms Land, Sea & Air 10
Slide 11: Defense Macro Trends – Defense Spending Outlook
Defense Macro Trends – Defense Spending Outlook U.S. Defense Spending Outlook 900 800 Sequestration • Revitalization of military readiness with an increasing defense budget with solid funding on DoD Budget Authority ($B) 700 missile platforms 600 500 • Platform upgrades, especially for both military
Slide 12: Growth Drivers
Growth Drivers % of % of Key LTM Q1 2020 Revenue Backlog at 3/28/20 Platforms F-18 Aircraft F-35 (JSF) Aircraft Military and Space 48% 54% Patriot Missile Apache Helicopter Blackhawk Helicopter Boeing 737 MAX Boeing 787 Dreamliner Commercial Aerospace 45% 43% Airbus A320 Airbus A220 Airbus A350 High
Slide 13: 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 14: 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 15: Appendix
>) Ducommun Appendix
Slide 16: 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 17: Key Facts
Key Facts Ducommun Incorporated Exchange: Ticker NYSE: DCO Share price(1) $28.24 52-week high / low(1) $57.84 / $16.27 Diluted shares outstanding(2) 11.9 million Market cap(1) $329.0 million Cash(2) $65.6 million Net debt outstanding(2) $285.0 million Enterprise value $614.0 million LTM Q1 2020 reve
Slide 18: 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 19: Adjusted EBITDA for LTM Q1 2020
Adjusted EBITDA for LTM Q1 2020 (dollars in thousands) Net income $ 32,919 Interest expense 18,185 Income tax expense 5,727 Depreciation 13,430 Amortization 15,415 Stock-based compensation 7,976 Inventory step-up 511 Loss on extinguishment of debt 180 Other debt refinancing expense 77 Adjusted EBITD