Ducommun Inc. (NYSE:DCO) net revenue for the fourth quarter of 2015 was USD156.6 million, compared to USD187.6 million for the fourth quarter of 2014, the company said.
The year-over-year decline was due to approximately 18.6 percent lower revenue in the company´s military and space markets. This was caused by a decrease in US government defense spending and shifting spending priorities which impacted scheduled deliveries on the company´s fixed-wing and helicopter platforms.
Additionally, the company experienced an approximate 20.3 percent lower revenue in non-aerospace and defense end-use markets. This was due to the closure of the company´s Houston manufacturing operations during the current quarter.
Net loss for the fourth quarter of 2015 was USD(63.6) million, or USD(5.74) per share, compared to a net income of USD5.2 million, or USD0.46 per diluted share, for the fourth quarter of 2014.
The net loss in the fourth quarter of 2015 was primarily the result of an approximate USD57.2 million non-cash goodwill impairment charge in the Structural Systems segment, a USD32.9 million non-cash charge related to the impairment of the indefinite-lived trade name in the Electronic Systems segment, and an approximate USD5.7 million attributable to lower manufacturing volume.
Operating loss for the fourth quarter of 2015 was USD(88.6) million, or (56.6) percent of revenue, compared to operating income of USD10.1 million, or 5.4 percent of revenue, for the comparable period in 2014. The change to an operating loss in the fourth quarter of 2015 compared to the prior year period was primarily due to the items that affected operating (loss) income described in net loss above.
Interest expense decreased to USD2.2 million in the fourth quarter of 2015, compared to USD7.0 million in the previous year´s fourth quarter primarily due to a lower outstanding debt balance and lower interest rate on the debt as a result of the company completing the refinancing of its debt in July 2015.
Adjusted EBITDA for the fourth quarter of 2015 was USD11.0 million, or 7.0 percent of revenue, compared to USD19.4 million, or 10.3 percent of revenue, for the comparable period in 2014.
Ducommun delivers innovative manufacturing solutions to customers in the aerospace, defense and industrial markets. Founded in 1849, the company specializes in two core areas – Electronic Systems and Structural Systems – to produce complex products and components for commercial aircraft platforms, mission-critical military and space programs, and sophisticated industrial applications.