DCO » Topics » Nine Months of 2005 Compared to Nine Months of 2004

This excerpt taken from the DCO 10-K filed Feb 27, 2007.

2005 Compared to 2004

 

Net sales in 2005 were $249,696,000, compared to net sales of $224,876,000 for 2004. The Company’s mix of business in both 2005 and 2004 was approximately 61% military, 35% commercial, and 4% space. Foreign sales were approximately 8% of total sales in both 2005 and 2004. The Company did not have sales to any foreign country greater than 5% of total sales in 2005 or 2004.

 

26


The Company had substantial sales, through both of its business segments, to Boeing, Raytheon and Lockheed Martin. During 2005 and 2004, sales to Boeing, Raytheon, and to Lockheed Martin were as follows:

 

December 31,


   2005

   2004

(In thousands)

             

Boeing

   $ 114,549    $ 101,571

Raytheon

     23,071      25,287

Lockheed Martin

     18,995      15,997
    

  

Total

   $ 156,615    $ 142,855
    

  

 

At December 31, 2005, trade receivables from Boeing, Raytheon and Lockheed Martin were $6,183,000, $4,467,000 and $1,902,000, respectively. The sales and receivables relating to Boeing, Raytheon and Lockheed Martin are diversified over a number of different commercial, space and military programs.

 

Military components manufactured by the Company are employed in many of the country’s front-line fighters, bombers, helicopters and support aircraft, as well as many sea-based vehicles. The Company’s defense business is diversified among military manufacturers and programs. Sales related to military programs were approximately $152,898,000, or 61% of total sales in 2005, compared to $137,275,000, or 61% of total sales in 2004. The increase in military sales in 2005 resulted principally from an increase in sales to the Apache helicopter program at Ducommun AeroStructures, Inc. (“DAS”). The Apache helicopter program accounted for approximately $50,472,000 in sales in 2005, compared to $36,054,000 in sales in 2004. The C-17 program accounted for approximately $29,245,000 in sales in 2005, compared to $29,766,000 in sales in 2004.

 

The Company’s commercial business is represented on many of today’s major commercial aircraft. Sales related to commercial business were approximately $87,519,000, or 35% of total sales in 2005, compared to $78,594,000, or 35% of total sales in 2004. During 2005, commercial sales were higher, principally because of an increase in commercial aftermarket sales. Sales to the Boeing 737NG program accounted for approximately $27,433,000 in sales in 2005, compared to $27,891,000 in sales in 2004.

 

In the space sector, the Company produced components for the expendable fuel tanks which help boost the Space Shuttle vehicle into orbit. Components are also produced for a variety of unmanned launch vehicles and satellite programs. Sales related to space programs were approximately $9,279,000, or 4% of total sales in 2005, compared to $9,007,000, or 4% of total sales in 2004. The Space Shuttle program accounted for approximately $7,396,000 in sales in 2005, compared to $6,211,000 in sales in 2004. In January 2006, the Company received a termination notice on the Space Shuttle program which affects virtually all of the Company’s work on the program.

 

27


Backlog is subject to delivery delays or program cancellations, which are beyond the Company’s control. At December 31, 2005, backlog believed to be firm was approximately $292,291,000, compared to $305,352,000 at December 31, 2004. The backlog at December 31, 2005 included approximately $104,950,000 of backlog for the following programs:

 

    

Backlog

(In thousands)


Apache Helicopter

   $ 104,950

C-17

     37,249

737NG

     34,284
    

     $ 176,483
    

 

Backlog at December 31, 2005 excluded all of the backlog for the Space Shuttle program. Trends in the Company’s overall level of backlog, however, may not be indicative of trends in future sales because the Company’s backlog is affected by timing differences in the placement of customer orders and because the Company’s backlog tends to be concentrated in several programs to a greater extent than the Company’s sales.

 

Gross profit, as a percent of sales, increased to 20.7% in 2005 from 19.4% in 2004. The gross profit margin increase was primarily due to the reversal of warranty reserves in 2005, lower accruals for contract losses in 2005 than in 2004, and the spreading of fixed overhead costs over higher sales volume during 2005 compared to 2004. In 2005, as a result of the favorable resolution of a customer warranty claim, the Company reversed and took into income $1,605,000 of warranty reserves originally accrued in 2002. The gross profit margin improvement was partially offset by higher operating costs and unfavorable changes in sales mix in 2005, compared to 2004.

 

Selling, general and administrative (“SG&A”) expenses, as a percentage of sales, were 12.4% in 2005, compared to 12.8% in 2004. The decrease in SG&A expenses, as a percentage of sales, was primarily the results of spreading SG&A costs over a higher volume of sales and lower severance costs, partially offset by higher bonus accruals in 2005, compared to 2004.

 

Interest income was $522,000 in 2005, compared to interest expense of $210,000 in 2004, primarily due to interest on tax refunds received in 2005 and higher cash balances in 2005, compared to 2004.

 

Income tax expense increased to $5,127,000 in 2005, compared to $3,293,000 in 2004, primarily due to higher pre-tax income and a higher effective income tax rate. The Company’s effective tax rate for 2005 was 24.3%, compared to 22.8% in 2004. The increase in the effective income tax rate was primarily attributable to lower research and development tax credits in 2005, compared to 2004. Cash expended to pay income taxes was $3,392,000 in 2005, compared to $2,202,000 in 2004.

 

Net income for 2005 was $15,993,000, or $1.57 diluted earnings per share, compared to $11,172,000, or $1.10 diluted earnings per share, in 2004.

 

28


This excerpt taken from the DCO 10-K filed Mar 1, 2006.

2005 Compared to 2004

 

Net sales in 2005 were $249,696,000, compared to net sales of $224,876,000 for 2004. The Company’s mix of business in both 2005 and 2004 was approximately 61% military, 35% commercial, and 4% space. Foreign sales were approximately 8% of total sales in both 2005 and 2004. The Company did not have sales to any foreign country greater than 5% of total sales in 2005 or 2004.

 

The Company had substantial sales, through both of its business segments, to Boeing, Raytheon and Lockheed Martin. During 2005 and 2004, sales to Boeing were $114,549,000 and $101,571,000, respectively; sales to Raytheon were $23,071,000 and $25,287,000, respectively; and sales to Lockheed Martin were $18,995,000 and $15,997,000, respectively. At December 31, 2005, trade receivables from Boeing, Raytheon and Lockheed Martin were $6,183,000, $4,467,000 and $1,902,000, respectively. The sales and receivables relating to Boeing, Raytheon and Lockheed Martin are diversified over a number of different commercial, space and military programs.

 

Military components manufactured by the Company are employed in many of the country’s front-line fighters, bombers, helicopters and support aircraft, as well as many sea-based vehicles. The Company’s defense business is diversified among military manufacturers and programs. Sales related to military programs were approximately $152,898,000, or 61% of total sales in 2005, compared to $137,275,000, or 61% of total sales in 2004. The increase in military sales in 2005 resulted principally from an increase in sales to the Apache helicopter program at Ducommun AeroStructures, Inc. (“DAS”). The Apache helicopter program accounted for approximately $50,472,000 in sales in 2005, compared to $36,054,000 in sales in 2004. The C-17 program accounted for approximately $29,245,000 in sales in 2005, compared to $29,766,000 in sales in 2004.

 

The Company’s commercial business is represented on many of today’s major commercial aircraft. Sales related to commercial business were approximately $87,519,000, or 35% of total sales in 2005, compared to $78,594,000, or 35% of total sales in 2004. During 2005,

 

20


Table of Contents

commercial sales were higher, principally because of an increase in commercial aftermarket sales. Sales to the Boeing 737/737NG program accounted for approximately $27,433,000 in sales in 2005, compared to $27,891,000 in sales in 2004.

 

In the space sector, the Company produces components for the expendable fuel tanks which help boost the Space Shuttle vehicle into orbit. Components are also produced for a variety of unmanned launch vehicles and satellite programs. Sales related to space programs were approximately $9,279,000, or 4% of total sales in 2005, compared to $9,007,000, or 4% of total sales in 2004. The Space Shuttle program accounted for approximately $7,396,000 in sales in 2005, compared to $6,211,000 in sales in 2004. In January 2006, the Company received a termination notice on the Space Shuttle program which affects virtually all of the Company’s work on the program.

 

Backlog is subject to delivery delays or program cancellations, which are beyond the Company’s control. At December 31, 2005, backlog believed to be firm was approximately $292,291,000, compared to $305,352,000 at December 31, 2004. Approximately $167,000,000 of total backlog is expected to be delivered during 2006. The backlog at December 31, 2005 included approximately $104,950,000 of backlog for the Apache helicopter program, $37,249,000 of backlog for the C-17 program, and $34,284,000 of backlog for the 737/737NG program. Backlog at December 31, 2005 excluded all of the backlog for the Space Shuttle program. Trends in the Company’s overall level of backlog, however, may not be indicative of trends in future sales because the Company’s backlog is affected by timing differences in the placement of customer orders and because the Company’s backlog tends to be concentrated in several programs to a greater extent than the Company’s sales.

 

Gross profit, as a percent of sales, increased to 20.7% in 2005 from 19.4% in 2004. The gross profit margin increase was primarily due to the reversal of warranty reserves in 2005, lower accruals for contract losses in 2005 than in 2004, and the spreading of fixed overhead costs over higher sales volume during 2005 compared to 2004. In 2005, as a result of the favorable resolution of a customer warranty claim, the Company reversed and took into income $1,605,000 of warranty reserves originally accrued in 2002. The gross profit margin improvement was partially offset by higher operating costs and unfavorable changes in sales mix in 2005, compared to 2004.

 

Selling, general and administrative (“SG&A”) expenses, as a percentage of sales, were 12.4% in 2005, compared to 12.8% in 2004. The decrease in SG&A expenses, as a percentage of sales, was primarily the results of spreading SG&A costs over a higher volume of sales and lower severance costs, partially offset by higher bonus accruals in 2005, compared to 2004.

 

Interest income was $522,000 in 2005, compared to interest expense of $210,000 in 2004, primarily due to interest on tax refunds received in 2005 and higher cash balances in 2005, compared to 2004.

 

Income tax expense increased to $5,127,000 in 2005, compared to $3,293,000 in 2004, primarily due to higher pre-tax income and a higher effective income tax rate. The Company’s effective tax rate for 2005 was 24.3%, compared to 22.8% in 2004. The increase in the effective income tax rate was primarily attributable to lower research and development tax credits in 2005, compared to 2004. Cash expended to pay income taxes was $3,392,000 in 2005, compared to $2,202,000 in 2004.

 

Net income for 2005 was $15,993,000, or $1.57 diluted earnings per share, compared to $11,172,000, or $1.10 diluted earnings per share, in 2004.

 

21


Table of Contents
This excerpt taken from the DCO 10-Q filed Nov 1, 2005.

Nine Months of 2005 Compared to Nine Months of 2004

 

Net sales in the first nine months of 2005 were $188,818,000, compared to net sales of $167,465,000 for the first nine months of 2004. The Company’s mix of business in the first nine months of 2005 was approximately 59% military, 37% commercial, and 4% space, compared to 60% military, 36% commercial, and 4% space in the first nine months of 2004.

 

The Company had substantial sales, through both of its business segments, to Boeing, Raytheon and Lockheed Martin. During the first nine months of 2005 and 2004, sales to Boeing were $89,751,000 and $76,341,000 respectively; sales to Raytheon were $17,176,000 and $19,325,000, respectively; and sales to Lockheed Martin were $14,559,000 and $10,622,000, respectively. At October 1, 2005, trade receivables from Boeing, Raytheon and Lockheed Martin were $8,422,000, $3,649,000 and $3,049,000, respectively. The sales and receivables relating to Boeing, Raytheon and Lockheed Martin are diversified over a number of different commercial, space and military programs.

 

Military components manufactured by the Company are employed in many of the country’s front-line fighters, bombers, helicopters and support aircraft, as well as many sea-based vehicles. The Company’s defense business is widely diversified among military manufacturers and programs. Sales related to military programs were approximately $112,039,000, or 59% of total sales in the first nine months of 2005, compared to $99,926,000, or 60% of total sales in the first nine months of 2004. The increase in military sales in the first nine months of 2005 resulted principally from an increase in sales to the Apache helicopter program at DAS. In the first nine months of 2005, the Apache helicopter program accounted for approximately $37,443,000 in sales, compared to $23,918,000 in sales in the first nine months of 2004. The C-17 program accounted for approximately $23,117,000 in sales in the first nine months of 2005, compared to $23,129,000 in sales in the first nine months of 2004.

 

- 28 -


The Company’s commercial business is represented on many of today’s major commercial aircraft. During the first nine months of 2005, sales related to commercial business were approximately $69,746,000, or 37% of total sales, compared to $60,727,000, or 36% in the first nine months of 2004. During the first nine months of 2005, commercial sales were higher, principally because of an increase in commercial aftermarket sales, partially offset by lower sales to the Boeing 737/737NG program. The Boeing 737/737NG program accounted for approximately $20,324,000 in sales in the first nine months of 2005, compared to $23,087,000 in sales in the first nine months of 2004.

 

In the space sector, the Company produces components for the expendable fuel tanks which help boost the Space Shuttle vehicle into orbit. Components are also produced for a variety of unmanned launch vehicles and satellite programs. During the first nine months of 2005, sales related to space programs were approximately $7,033,000, or 4% of total sales, compared to $6,812,000, or 4% of total sales, in the first nine months of 2004.

 

At October 1, 2005, backlog believed to be firm was approximately $306,658,000, compared to $305,352,000 at December 31, 2004. The backlog increase from December 31, 2004 was primarily due to higher bookings than shipments, primarily for the Apache helicopter program, the C-17 program and the Boeing 737/737NG program. Approximately $64,000,000 of the total backlog is expected to be delivered during the remainder of 2005. Backlog at October 1, 2005 included approximately $110,000,000 of backlog for the Apache helicopter program, $43,000,000 of backlog for the C-17 program, and $22,000,000 of backlog for the 737/737NG program. Backlog at October 1, 2005 also included for the Space Shuttle program approximately $2,000,000 of backlog, but excluded approximately $33,000,000 of backlog which management no longer considers “firm” in view of the current government funding status of the program. Trends in the Company’s overall level of backlog, however, may not be indicative of trends in future sales because the Company’s backlog is affected by timing differences in the placement of customer orders and because the Company’s backlog tends to be concentrated in several programs to a greater extent than the Company’s sales.

 

Gross profit, as a percentage of sales, increased to 20.5% in the first nine months of 2005 from 20.2% in the first nine months of 2004. This increase was primarily the result of spreading fixed overhead costs over a higher volume of sales during the first nine months of 2005 compared to the first nine months for 2004.

 

Selling, general and administrative (“SG&A”) expenses, as a percentage of sales, were 11.8% in the first nine months of 2005, compared to 12.4% in the first nine months of 2004. The reduction in

 

- 29 -


SG&A expenses, as a percentage of sales, was primarily the result of higher sales volume in the nine months of 2005, partially offset by higher SG&A spending for bonus accruals in 2005, compared to the comparable period of 2004.

 

Interest income was $322,000 in the first nine months of 2005, compared to interest expense of $241,000 in the first nine months of 2004, primarily due to interest on tax refunds received in 2005 and higher cash balances in 2005, compared to 2004.

 

Income tax expense increased to $4,433,000 in the first nine months of 2005, compared to $3,431,000 in the first nine months of 2004, primarily due to higher pre-tax income. The Company’s effective tax rate for the first nine months of 2005 was 26.2%, compared to 27.0% in the first nine months of 2004. The effective tax rate in the first nine months of 2005 benefited from reductions in income tax reserves established in prior periods and research and development tax credits. The reduction in income tax reserves resulted from the favorable resolution of tax audit examinations and the expiration of certain tax statutes of limitations in the first quarter of 2005. The Company currently expects its effective tax rate for the full year 2005 to be in the range of 26 to 30 percent with significant fluctuations from quarter-to-quarter during the year. Cash expended to pay income taxes increased to $2,237,000 in the first nine months of 2005, compared to $2,172,000 in the first nine months of 2004.

 

Net income for the first nine months of 2005 was $12,471,000, or $1.22 diluted earnings per share, compared to $9,290,000, or $0.91 diluted earnings per share, in the first nine months of 2004.

 

This excerpt taken from the DCO 10-Q filed Aug 1, 2005.

Six Months of 2005 Compared to Six Months of 2004

 

Net sales in the first six months of 2005 were $125,810,000, compared to net sales of $115,630,000 for the first six months of 2004. The Company’s mix of business in the first six months of 2005 was approximately 62% military, 35% commercial, and 3% space, compared to 61% military, 35% commercial, and 4% space in the first six months of 2004.

 

The Company had substantial sales, through both its business segments, to Boeing, Raytheon and Lockheed Martin. During the first six months of 2005 and 2004, sales to Boeing were $58,452,000 and $54,645,000 respectively; sales to Raytheon were $11,442,000 and $13,756,000, respectively; and sales to Lockheed Martin were $9,771,000 and $6,879,000, respectively. At July 2, 2005, trade receivables from Boeing, Raytheon and Lockheed Martin were $12,028,000, $2,152,000 and $3,049,000, respectively. The sales and receivables relating to Boeing, Raytheon and Lockheed Martin are diversified over a number of different commercial, space and military programs.

 

Military components manufactured by the Company are employed in many of the country’s front-line fighters, bombers, helicopters and support aircraft, as well as many sea-based vehicles. The Company’s defense business is widely diversified among military manufacturers and programs. Sales related to military programs were approximately $77,925,000, or 62% of total sales in the first six months of 2005, compared to $70,726,000, or 61% of total sales in the first six months of 2004. The increase in military sales in the first six months of 2005 resulted principally from an increase in military sales at Ducommun Technologies and an increase in sales for the Apache helicopter program. In the first six months of 2005, the Apache helicopter program accounted for approximately $24,041,000 in sales, compared to $19,923,000 in sales in the first six months of 2004, and the C-17 program accounted for approximately $15,544,000 in sales, compared to $14,858,000 in sales in the first six months of 2004.

 

The Company’s commercial business is represented on many of today’s major commercial aircraft. During the first six months of 2005, sales related to commercial business were approximately $43,441,000, or 35% of total sales, compared to $40,242,000, or 35% in the first six months of 2004.

 

- 28 -


Table of Contents

During the six months of 2005, commercial sales were higher, principally because of an increase in commercial aftermarket sales, partially offset by lower sales to the Boeing 737/737NG program. The Boeing 737/737NG program accounted for approximately $11,947,000 in sales in the first six months of 2005, compared to $15,756,000 in sales in the first six months of 2004.

 

In the space sector, the Company produces components for the expendable fuel tanks which help boost the Space Shuttle vehicle into orbit. Components are also produced for a variety of unmanned launch vehicles and satellite programs. During the first six months of 2005, sales related to space programs were approximately $4,444,000, or 3% of total sales, compared to $4,662,000, or 4% of total sales, in the first six months of 2004.

 

At July 2, 2005, backlog believed to be firm was approximately $355,416,000, compared to $305,352,000 at December 31, 2004. The backlog increase from December 31, 2004 was primarily due to higher bookings than shipments, primarily for the Apache helicopter program, the C-17 program and the Boeing 737/737NG program. Approximately $104,000,000 of the total backlog is expected to be delivered during the remainder of 2005. Backlog at July 2, 2005 included approximately $122,000,000 of backlog for the Apache helicopter program, $42,000,000 of backlog for the C-17 program, $37,000,000 of backlog for the Space Shuttle program, and $27,000,000 of backlog for the 737/737NG program. Trends in the Company’s overall level of backlog, however, may not be indicative of trends in future sales because the Company’s backlog is affected by timing differences in the placement of customer orders and because the Company’s backlog tends to be concentrated in several programs to a greater extent than the Company’s sales.

 

Gross profit, as a percentage of sales, decreased to 20.4% in the first six months of 2005 from 21.2% in the first six months of 2004. This decrease was primarily the result of higher operating costs at Ducommun AeroStructures and Ducommun Technologies and changes in sales mix compared to the first six months for 2004.

 

Selling, general and administrative expenses, as a percentage of sales, were 11.6% in the first six months of 2005, compared to 12.8% in the first six months of 2004, primarily due to higher sales volume in the first six months of 2005.

 

Interest expense decreased to $85,000 in the first six months of 2005 compared $214,000 for the first six months of 2004. The decrease in interest expense was primarily due to lower debt levels in 2005 compared to 2004.

 

- 29 -


Table of Contents

Income tax expense decreased to $2,846,000 in the first six months of 2005, compared to $3,020,000 in the first six months of 2004. The Company’s effective tax rate for the first six months of 2005 was 25.9%, compared to 31.6% in the first six months of 2004. The effective tax rate in the first six months of 2005 benefited from reductions in income tax reserves established in prior periods and research and development tax credits. The reduction in income tax reserves resulted from the favorable resolution of tax audit examinations and the expiration of certain tax statutes of limitations in the first quarter of 2005. The Company currently expects its effective tax rate for the full year 2005 to be in the range of 26 to 30 percent with significant fluctuations from quarter-to-quarter during the year. Cash expended to pay income taxes increased to $2,208,000 in the first six months of 2005, compared to $2,118,000 in the first six months of 2004.

 

Net income for the first six months of 2005 was $8,156,000, or $0.80 diluted earnings per share, compared to $6,538,000, or $0.64 diluted earnings per share, in the first six months of 2004.

 

This excerpt taken from the DCO 10-Q filed May 2, 2005.

First Quarter 2005 Compared to First Quarter 2004

 

Net sales in the first quarter of 2005 were $63,812,000, compared to net sales of $58,247,000 for the first quarter of 2004. The Company’s mix of business in the first quarter of 2005 was approximately 61% military, 36% commercial, and 3% space, compared to 61% military, 35% commercial, and 4% space in the first quarter of 2004.

 

The Company had substantial sales to Boeing, Raytheon and Lockheed Martin. During the first quarter of 2005 and 2004, sales to Boeing were $28,293,000 and $27,799,000, respectively; sales to Raytheon were $6,248,000 and $7,649,000, respectively; and sales to Lockheed Martin were $4,366,000 and $3,345,000, respectively. At April 2, 2005, trade receivables from Boeing, Raytheon and Lockheed Martin were $12,515,000, $3,030,000 and $1,710,000, respectively. The sales and receivables relating to Boeing, Raytheon and Lockheed Martin are diversified over a number of different commercial, space and military programs.

 

Military components manufactured by the Company are employed in many of the country’s front-line fighters, bombers, helicopters and support aircraft, as well as many sea-based vehicles. The Company’s defense business is widely diversified among military manufacturers and programs. Sales related to military programs were approximately $38,707,000, or 61% of total sales in the first quarter of 2005, compared to $35,797,000, or 61% of total sales in the first quarter of 2004. The increase in military sales in the first quarter of 2005 resulted principally from an increase in sales to the Apache helicopter program at DAS. The Apache helicopter program accounted for approximately $12,050,000 in sales in the first quarter of 2005, compared to $10,362,000 in sales in first quarter of 2004. The C-17 program accounted for approximately $7,310,000 in sales in the first quarter of 2005, compared to $7,455,000 in sales in the first quarter of 2004.

 

25


Table of Contents

The Company’s commercial business is represented on many of today’s major commercial aircraft. Sales related to commercial business were approximately $23,183,000, or 36% of total sales in the first quarter of 2005, compared to $20,162,000, or 35% of total sales in the first quarter of 2004. During the first quarter of 2005, commercial sales were higher, principally because of an increase in commercial aftermarket sales, partially offset by lower sales to the Boeing 737/737NG program. Sales to the Boeing 737/737NG program accounted for approximately $6,123,000 in sales in the first quarter of 2005, compared to $8,611,000 in sales in the first quarter of 2004.

 

In the space sector, the Company produces components for the expendable fuel tanks which help boost the Space Shuttle vehicle into orbit. Components are also produced for a variety of unmanned launch vehicles and satellite programs. Sales related to space programs were approximately $1,922,000, or 3% of total sales in the first quarter of 2005, compared to $2,288,000, or 4% of total sales in the first quarter 2004. During the first quarter of 2005, sales related to space programs were lower due to lower sales for the Space Shuttle program.

 

At April 2, 2005, backlog believed to be firm was approximately $293,701,000, compared to $305,352,000 at December 31, 2004. The backlog decrease from December 31, 2004 was primarily due to higher shipments than bookings, primarily for the Apache helicopter program. Approximately $140,000,000 of the total backlog is expected to be delivered during the remainder of 2005. Backlog at April 2, 2005 included approximately $82,525,000 of backlog for the Apache helicopter program, and $38,845,000 of backlog for the Space Shuttle program.

 

Gross profit, as a percentage of sales, increased to 18.2% in the first quarter of 2005 from 17.9% in the first quarter of 2004. The gross profit margin increase was primarily the result of a reduction in accrued contract loss provisions in the first quarter of 2005 compared to the first quarter of 2004. However, gross profit margins were negatively impacted by higher sales volume on several contracts at Ducommun AeroStructures with lower than average gross profit margins, higher operating costs and changes in sales mix in the first quarter of 2005 compared to the first quarter of 2004.

 

Selling, general and administrative expenses, as a percentage of sales, were 10.8% in the first quarter of 2005, compared to 11.7% in the first quarter of 2004, primarily because of the higher sales volume in first quarter of 2005. Selling, general and administrative expenses in the first quarter of 2005 included approximately $470,000 of accrued bonuses, compared to no accrued bonuses in the first quarter 2004.

 

26


Table of Contents

Interest expense decreased to $78,000 in the first quarter of 2005, compared to $138,000 in the first quarter 2004.

 

Income tax expense decreased to $567,000 in the first quarter of 2005, compared to $1,255,000 in the first quarter of 2004. The Company’s effective tax rate for the first quarter of 2005 was 12.2%, compared to 36.0% in the first quarter of 2004. The effective tax rate in the first quarter of 2005 benefited from reductions in income tax reserves established in prior periods and research and development tax credits. The reduction in income tax reserves resulted from the favorable resolution of tax audit examinations and the expiration of certain tax statutes of limitations in the first quarter of 2005. The Company currently expects its effective tax rate for the full year 2005 to be in the range of 26 to 30 percent with significant fluctuations from quarter-to-quarter during the year. Cash expended to pay income taxes decreased to $26,000 in the first quarter of 2005, compared to $93,000 in the first quarter of 2004.

 

Net income for the first quarter of 2005 was $4,083,000, or $0.40 diluted earnings per share, compared to $2,231,000, or $0.22 diluted earnings per share in the first quarter of 2004.

 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki