Ducommun (DCO) 4 Nov 172017 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Third Quarter 2017 Ducommun Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session and instructions will follow at that time. [Operator instructions] As a reminder, today's conference is being recorded. I would like to introduce your host for today's conference, Moderator, Chris Witty. ahead. go please Sir,

forward-looking including limitations Treasurer. the welcome events, results as today subject risks, XXXX our the federal and during are projects are Vice Officer regarding of Doug statements and call. factors, statements certain CEO, statements quarter from that projections facts, to or remarks any the With Act and that implied results Groves, forward-looking discuss future and Financial therefore Chief me Certain future the statements Steve of may results are statements are historical restructuring These performance are expressed today perspective. we market such future to differ operations, President, to going to any forward-looking or statements. Private under to financial materially you make prepared to cause uncertainties third Ducommun's Reform actual conference or and I'm Q&A and conditions, Securities Thank by Litigation plans and XXXX other session. Oswald, not which President could forward-looking

correct. Although expectations can reasonable, prove that give assurance in that such expectations be forward-looking we statements no to the we our believe are will reflected

required spending, our addition, during and in statements of These current XX-K annual subject Form end-use risks, In on others, our and regulatory markets, report cost facing the described SEC, Statements and those expansion risks future level subject with risks. are to Form intend this with and call referenced as measures. management the legal changes, in are to filed Particular Please except our forward-looking yesterday the to refer the made XXXX. to cyclicality the results call filed the financial this risks ended business, do are the acquisitions non-GAAP U.S. presentation as measures XX-Q based made of similar XX-Q update our others are and if not reconciliation competition. of time filed and regulatory for our on includes estimates describing of non-GAAP operating company's by change. authorities. GAAP are among measures. with statements we quarter defense government any which SEC to Ducommun the a of the include, made We Form This and only call of this most on XX, September our SEC results for the the

our over to the a tab. will website You a Steve? company's to Form call link the company's Relations find SEC operating including turn Steve on the Investor Oswald Mr. to like results. now would under the of the for filings, XX-K, I review

briefly about results financial for I in with Thanks, our everyone for detail. XXXX focus. thank review today us performance after start me Well, by begin conference our reasons. few you an which providing developments a first Doug pleased Chris. call. was accomplishments our will and talking primarily overview of this quarter quarter let joining to two near-term I'll due recent the And third QX by our

we continue as growth missile benefit racks demand the radar our and to for platforms helicopter shipments certain F-XX increased First, military systems. with and we resurgence XX% saw from on on space platforms year-over-year in along

is stable $XXX backlog now related at defense Our million.

to in about optimistic future top-line quarters are We growth the come.

structures Second quarter and XXX accomplishment quarter margins versus to operating note the second business. sequential improvement point our this basis was for

operating increase. X.X% versus this moment significant was margin As a in quarter review X.X% in the Doug QX, structure's will a

expect we've past in utilization further next brings $XX beginning discuss quarter announcing plans. affected which of taking as been about hard as that the asset past spoke to is progress we those. through were million aspects work XXXX As we improve our and certain processes, during to of steps streamline and to million finalizing continue across assessing Jerry our our I This the margin still operation. initial fixed in charges running inventory fourth in the unacceptable and the me announcing structure's the since plans and how increase much to all to result pretax assets. mentioned the of the to initiatives now of to to earlier, expand May the with such the I Redondo But be organization topic with company, restructuring write-down focus impairment XXXX. I details $XX of margins earnings as like We're improve and future. the group operations major We're the restructuring timing in I now pretty particular are of calls and X

these However, in anticipates restructuring a in XXXX $XX cost measures million beginning the clear, savings in result goals of company aggregate annually. approximately the total are

stronger and of aerospace combined the Given be initiatives and margins and to flow supplier expected cash as greatly results higher our improved manufacturing efficiencies ramp, defense efficient, new such and with the Ducommun innovative will be platforms industry. more should

attractive assessment also plans an right ensure programs on Our we of type our products applications. the all profitable of engaged and are to involve

profitable. a our we decisions play time CEO marginally out business we or margin clearly all that team jet with and be internal which unattractive, in that profile. decisions appropriate particularly leverage line we growth will regarding -- on our some exit -- demand you or decisive were we there where continued and have aerospace suffice to even programs our operation be regional involvement say I'll decided that in will space large we overall more seek the to of our the I some about have hurdles. competency the within as that when going business should share space as that leadership I an are lost ago excellent only actions that will but do not investment will began top reduce as platforms core XXXX narrow-body some communicated we're within Just to I either when meet still position. strategic fixed-wing going to in to not which Such number across it say higher certain the or inappropriate on our future contracts want money impact to lower commercial platforms, such

world well we integrating I bidding employees market take our Ducommun the and the these aircraft look for to opportunistic improve in acquisitions we shareholders against key about margins our have have electronic one I'm same names owe position team after competing performance, also strengthen are of bolt-on worth and price aerospace in going will platforms position applications. can believe its strong industry customers, Ducommun this Dave his the We track $XX to several market steps part capabilities has niche to very on our that happy key Wilmot, systems systems forward. will this of well existing in position various in Such impact as to million as serves to we other on higher past pleased our and and and it lightning was for As of share also using Beach, a continue alike. given the key said proprietary need past, I'm in a we in with our President company more LDS trajectory. lightning that heavily Huntington optimistic aerospace September. the LDS level a and At platforms. time, thinking successfully the protection property. is the the at that the and this of potential was segment purchase growth California are leader technologies LDS into diversion we Based in

sequentially, improving quarter, accomplished a supplier. deal margin aerospace great we've acquiring this So, a key

And million. we We building well to also some the are and restructuring of our paid debt down backlog $XXX significant with on way as to increased announcement well of tomorrow. our Ducommun plans

mentioned sales products Apache particularly well along programs. space provide $XXX Beginning sector and spending F-XX quarter higher sales for racks, with with is mentioned the on defense our driven indicative of for missile earlier, additional I million, higher Blackhawk shipments as earlier. helicopter radar This million. performance expanded remains overall growth with posted demand platforms positive up revenues Military is end-markets, XX% of by The me up backlog, platforms XX% the of like systems. let the year-to-date. we we as our as and on and some top-line as robust, increasing Now year-over-year $XX.X serve for third color you military I

said earlier, to quarters optimistic the I'm regarding Within this commercial in quarter, come. $XX for increases spending As defense further operations and I and overall opportunities roughly down aerospace million system $XX year. our million upgrades last from were sales

growing and the has of due sales particular our to XXXX been quarters, strong million and in mentioned within the weakness versus including XXXX. roughly business expected million fixed-wing to to many a is hard for the of year-over-year on business in large platform to first comps deliveries beyond. Boeing contrast platforms well one wind As ended backlog by quarter for this we for as jet commercial We execute impacting and of of aerospace the regional XXX record to the AXXX $XXX Airbus with aircraft. the continue quarter down $XX program markets, $XX in And stable million. is commercial decline quarter In XXXX past are AXXX working driven XXXX, as growth for with

on and have growth report our core as our further to lower Kansas. Parsons, I in business. regards year reduce remain will portfolio we programs assess operation next addition, earlier, as to primarily next-generation track also our I in unattractive across we to In mentioned titanium also narrow-body be exposure to margin

AXXXneo, ramp of to we've complete and sequential see and increase quarters track spring increase programs on in XXX I'm out we're as now will with the much utilization. backlogs to margins. very Gulfstream of come solid been the and this the we up operations the well on Airbus continues come. streamline more of in AXXX, execution Boeing our record to and for Ducommun's plans far finalizing a broad pleased on MAX, topic proud have framed terms GXXX important along these restructuring initiatives this GXXX. expansion how It's and production Our AXXX say to in focus XXXX. With on We'll to asset to in

in now our results financial So, have with that I'll review Doug? detail. Doug

offset jet by year-over-year the and military our industrial down the Revenue a regional industry for million markets, compared Thank year-over-year which day $XXX.X higher within and quarter and increase the $X.X The to discussed sales of growth million million we've military $XXX commercial of was past. million on million increase in the was to Steve our markets you, $XXX.X the many end platforms. of a partially sales higher to customers platforms everyone. in strength aerospace of revenue the $X.X our Ducommun's was discussed. lower reflects our across space third of the as Steve, our quarter end $X.X approximately good million backlog for and XXXX. quarter, third position illustrating in at key was due jet to top-line primarily The softness winding due in the demand of program as the market XXXX

million by SG&A year-over-year income loan in I facility the $X.X million per with our quarter balance last $XX.X $X.XX in lower diluted of in outstanding operating the or the was new commercial Net third term in reflects primarily quarter was for platforms credit to benefit higher $X.X primarily profit, years' diluted for gross a for of decrease company's revenue being primary higher margin The versus XXXX mix the increase was last just X.X% XX.X% quarter the million manufacturing mentioned. third costs. versus third versus the $X The the XXXX gross compared more which was on was million year-over-year million positive in million Structural SG&A of partially Interest as quarter the third the in year $X.X product $X.X XXXX million to and in to or the revenue quarter or certain of for share impact third $X.XX was period. $XX.X the XXXX. the XX% declining share $X.X utilization was the System Moving of offset expense third X.X% Operating segment. quarter inefficiencies than acquisition program of was million compensation comparable revolving of income LDS. used income versus company's per higher and gross margin period. aerospace prior-year within due or

included or for tax The Our reduced finalization XXXX effective XX.X% during due million of adjustments income tax was last accounting. rate compensation to federal was comparable some $X.X period tax compared in million or year. expense our which XX.X% the to third the and XXXX income favorable $X.X quarter the the share-based return quarter

$XX.X the in EBITDA the $XX.X of XXXX fourth revenue million for the the excluding tax For or rate revenue third period compared quarter XX% to comparable Adjusted items. or of for to upcoming expected in any XX.X% XXXX. is discrete to the of be was quarter XX% million XX.X% range of

segment to turn the me results. let Now

regional revenue million was third of X.X% XXXX versus quarter on to in previously for System platforms of as was segment million mentioned. revenue compared I of last The and to of sales Structural year. quarter slight year. business decline the lower Structural $XX.X million posted or the Our income $XX.X jet $X.X million third operating or last Systems' revenue of our $X.X due million $X.X primarily X.X%

The third rose from quarter XXX again ongoing XXXX programs new although investments of once the quarter. the impact second included margins sequentially basis of point in

of ongoing to while new some noted, margins Steve the strategic measures to boost manufacturing facility and we are programs. restructuring inefficiencies through Parsons expansion initiatives structural up As a due taking appropriate long-term ramp facing near-term

quarter the as platforms industrial quarter posted within markets million revenue results by reflect $XX end-use higher as $XX.X revenue in mentioned. reflecting of prior-year X.X% previously year. the million and of for of in primarily million XX.X% $X.X CG&A, general expenses, of the $X.X million versus in our third income jet company million of or Systems increase the million Turning Corporate military or Systems prior-year X.X% segment $X.X the revenue and of $X.X segment, of revenue to last third to or the Electronic $X.X operating administrative partially across in sales period. third shipments Systems compared Electronic million for space was offset million or quarter period. company's $X.X These commercial posted lower X.X% versus as the our aerospace market $X.X well softness the revenue revenue million the Electronic business in of

We $XX.X in resources. cash Turning to compared million XXXX. third in $XX.X quarter of from capital operations of and generated to million liquidity XXXX the

debt $XX in still in We of approximately to quarter pay for million and expect $XX $X.X to million also XXXX. paid down down million debt the

strategic We free investments flow acquisitions cash our will LDS. balancing while continue opportunistic to with pay down like debt including

$XX prepare In terms we aircraft as spent and expansion third for this beyond. which we ramping $X.X to million investment includes CapEx programs quarter ongoing Parsons $XX we million new and XXXX generation approximately the the platforms in facility and spending of continued in million the in up total in year anticipate next

the turning restructuring. to Now

company's for million actions particularly currently of expects As million or the operations about in Steve we $XX separation outlays increased cost beginning of quarter about mentioned be to are charges anticipates asset for pretax and of to beginning such XXXX total the costs continuing million $XX assets. in of restructuring The million of utilization, XXXX. fixed completion the late and savings recorded approximately XX% expected After in represent have charges company structures cash and plan fourth initiated to employee in complete such to XXXX $XX.X in the of business. activities restructuring stream $XX charges are actual annually of be XX% measures expected these result charges down and company within the Of these cash XXXX. business of approximately the will end and through a the comprised will are write impairment inventory the planned Approximately XXXX. at that consolidation

turn correct closing We I'll over believe to better-performing, Steve. it more growing Steve transform come. content defense company backlog So, increase the to variety the on we focused for continued Ducommun years platforms. a was our his production aerospace across are of operations to technology execution remarks. steps in and plans inefficiencies of to for back our closing, into actively of look faster key ramp address quarter Parsons, and taking the up to on a and one now

just it I'll we'll a open comments up questions. Thanks, few Doug. for final and add

focused, the bolstering on As the Doug this several great company think growth made to highest in history. lots to and right? customer To has technology be and becoming backlog I fronts some obviously driven and levels enterprise almost be, made progress I defense We we wanted also of recent aerospace quarter discussed strides with potential. our what more

player initiatives In for I'll and our let's now addition, operator, the the to say about and the we for of that, to of with come. the And with defense applications call being in question. cutting-edge quarter have important relevant a series Ducommun restructuring restructuring more open stage in more tomorrow. setting activities are aerospace

the first of Thank comes you. [Operator instructions] Mark from Our Capital line question with Noble Financial Jordan Market.

Your line ahead. is open. go Please

or trailing morning, gentlemen. could LDS for or some Good example margins like operational operating XX-month I'd profit you you -- on give metrics us EBITDA? revenues

for Thanks question. Mark. Hi the

expect too probably would basis that roughly profitability less total margins we of a and As revenue business than different move in it's of operating manufacturing somewhere a do the as our we the smaller of a -- though annual release segment we within we in segment going total weren't the electronics probably say improvement revenue noticed in XXX press we the impact between X% it's be and forward. points that got just you the profile and as because in it's that descriptive contract little move we some to XX the forward it's that to electronics

Okay. do in be offset $XX.X charges sense as savings realized able incremental to a some of savings in the XXXX have your non-cash is, $XX.X a to in realized savings the won't imply obviously Question be cost $XX.X cost of that have and sense have you able those cost primarily have $XX.X with of be of to how earlier Relative the the charges to restructuring, you charges, to comments but and I of 'XX? until you'll impact million you'll realize full you XXXX, between million might much million. that some do million

quarter. mean to through the some early Sure, see to so as first do those of start savings, flow expect of as cost the of the I we total

upon through that there'll this we're and little timing XX% So, other we're obviously more savings a the on the quarter of work of than of quarter we'll the the will start we charge then that charge taking taking. come updating activities. to quarter fourth through first less actions a in But here be just of depending be XXXX. that each on be there'll flowing going more our of And to lot be the that probably obviously you in as

Okay.

will help some those So charges. that offset of

Right.

what Do estimate would for XXXX? normalized tax of an have be you rate a

this code is -- any between under happen current Sure, XX% impact items all somewhere Washington looking at we're yes, rate. we're tax XX% to going and right now depending what's here the but may obviously that discrete in before the

Okay. Thank very much. you

you. Thank

Thank our question the next of you. Canaccord. from line Herbert And comes Ken with

line ahead. Your go is Please open.

Good morning, Steve and Hi. Doug.

Hi Ken.

the how specifically more your color First process Steve, aerospace now on areas within or where on Can as part commercial outlook any around maybe action. or your commercial segment, clearly want part restructuring. translating maybe the the of that's of as sounds some or decisions just investment? this like you're specific to to on follow-up restructuring the market to programs to priorities thought of invest specific it prioritize you wanted starting you provide specifically

of let me -- just things. well, Yes, couple

that profitable. getting started at in mentioned January call doing here obviously in things know across as business I've that as we're we First, applications are and just to and marginally things the getting come the

either other hard we and or, could market fit the we're do to going where we'll So, at I in profitable our team I've just use know think keep our you what a competencies updated, do look we're don't things energies be you it's Ken, that and going areas. that is more that better to what, things what told

Okay.

the and manage I well during can the time jet focus out things example and going be want of bottom took is situation the so that unwinding as only we're we good and line but this that to where that as that taking a that's have top of we really line business day So, do work jobs of we appropriately. for to where company our to much charge and we our need company that drive sort resources is energy cadence to and on using on the it's and and lot a already

go we things. those So, we'll to have decisive again going we're be continue to look to update forward, to but you as of hard types on

or taken And was Okay. then sort defense and the that, and across, in particular, gains racks, you're Raytheon seeing with of like maybe of you any on space out all customers of volume anything on that growth was you've share of that the helicopters specifically result that key is else was just called there your really some market of there? radar within unique growth going

Ken, it's I it's not rate mean driven. no Doug, really so really, more

and the one Raytheon business their benefiting example, For that their platforms. from year-over-year as XX% on we're of case missile in top suppliers grew of those

spending share continue we're in we after and targeting rate, it's and keeping where as area customers it's sales missile military primarily this Lockheed going much increased a but to so competitive defense the So, we're more new see foreign like today, at it's not more and point. our industry, doing certainly rate-driven primarily

competing other Ken, real different think this sure companies the Raytheon, and Steve. as run with seeing we're I time, we hard the is all right, make against also that rate-driven. to We're this customers Obviously, well. business we're so working

Okay. Great. just job finally And great with a LDS. obviously

talk it forward on Can about you're Steve, be you've just hits strategy. think the of what maybe out you front? are seeing the you looking pipeline we looking what M&A should an now gain moving the for outlined least what acquisition I on for at exactly, and

LDS Yes, was follow as mention the well team very mentioned our just to excellent year well, folks is And as joined all for did job thanks auction Mukherjee think who win, us us to an nice okay. I Suman I competitive that see this want to and that. it's that investors and Ducommun and I our

more So, we're expecting of that.

like that I'd companies cadence kind of continue bolt-ons, LDS, to with similar statement my that interesting. same things from think I to profiles on as far As in are

we shown and successful. we us, as all we that can this but do absolutely fairly this is so very we is in pipeline got I have competitive be know think that the and But think world living we obviously I out our cut for -- good. got it's work

pretty good at come looks more and the I good think things again think point. pipeline I this So, to

Thank Great. very you much.

Thanks Ken.

And from Edward of Marshall Thank you. next with comes question the line our Sidoti.

Your go line ahead. is open. Please

is the waiting certain in some curious, to end for to guess programs before I some delay I'm of the first of these costs wind are an the come of launch? you So, recognition downs. the question

Ed, next this lot A&D, to is all transition at of the I quarters to coming commitments some done particularly ahead will and a our to profile contract renewal them commercial want to looking meet business over we these certainly we a business it. mean, and customers. tell I programs it or of in you up that as under so the very that come X-year looking that keep the we're do really we're for does it's go profitability yes, if So, hard see meet But for we're going

just our choices it's evidenced obviously things we as they're So, still got coming have want programs because see function do these of renewal a to as to really up by that at backlog. for looking if they're we

lines I it. Got product to mean have identified, future. cost a the you're guess been I And in guess I contribution these -- giving

with program So, some -- cuts the the like the Ducommun are talk I'm and maybe I'm assuming some informed about of the look might revenue product what you then been complete. curious of the and maybe can they've lines, cuts after associated

asking you're ones we've your portfolio and clarify to about which the within identified? programs so just existing question, Ed, Yes,

correct. That's

a topic our sensitive it's Well, through with quite mean Yes. and customers. honest I we're that, be to working

as about I we of actively be talking to way in one improve this in program the been that this not with effort will would unwinding have 'XX that on But there charge be get XXXX real potentially mean specific at our we position a as overall then in we're that So, part company. profitability the the regional of a work to be took been customer. through looking will we profile this we've and specific, others jet

Got how is the $XX with of it. you much associated cost in million savings jet the regional And program? identified

-- Well were basically we but revenue that generating a really program in any exits so it that means 'XX not took we profit. reserve, particular that and

of So small that is very that in number. included

with And the then the maybe talk you about generally associated can more revenue cuts.

As what think growth to say, would today the at I looked of we XXXX, just about profile look maybe, much? like? the no let's start line your business top How if in

mean, because what I think to narrow that's body hard commercial us we we on to a do to big we bodes in rate see XXXX. increases mean well well. of out continue go we're which I it's obviously part going Sure, to for some at rates aerospace. bodies. the overall it's benefit as think weed single line more as I these well look through profile the But build digit the top as on from the the we probably programs 'XX near of term low as narrow on

top I guess like trying identification. the impact costs? $XX understand you wrong I to line but cost asking, what have will maybe asked what I'm it million of I'm look those on

It's minimal, yes.

yes. Yes, I think is it will be this -- minimal. And

going things we're start think, my year single is to are then going moving? -- low to next and expectation I yes, mean, think I I

anticipate expect you that to So, product remarks your prepared from you cutting in you line had certain I impact lines -- cutting? grow expect think revenue a top you this with -- through mentioned

I the is think some where there best going puts we're at be going looking again in think know, right. be there's to to way look to going at you and Yes, single I is but, XXXX to some takes, be low

lines So, right, up the Airbus at picking obviously ramp getting we're and job. other as some we're with and with we as these us good exit business we're some we're or of because doing started applications them things up things,

for good the I there things looking So, are future. think

I takes into have when is year. think puts how and that get think next I we as direction. everything think moving to is and in there XXXX we'll see that the I So, goes But far right as

that XXXX. that you these new -- there's you to of live meaningful does lot have that -- associated for what, revenue trim -- I'm revenues will curious seeing impact the impact the programs And is and that throughout a that recognition have as are that the with -- the impact of of how and adjustment of Knowing does lot any there's through? Ducommun, well? preparing companies Doug, Okay. revenue that and recognition how for five-year is cost are programs. the run aerospace the how how kind cutting, of new adjustments how

mean short smooth a one-time and look pretty too preliminary we've Ducommun. impact. analysis that I this minimal out. start Sure. doesn't we're to it's done, answer get it things the going going the then there's we we're be going Well, prospectively once is But to from material to quarter-over-quarter will the expecting like to impact adopt as

very it. much. Got Thanks

Okay. Thank you.

Mike next comes Thank of Crawford instructions] the line from you. B. question FBR. Our [Operator with Riley

go ahead. is Your Please line open.

that the you you to you. the prior way LDS? change or account does for Thank it, Did restated include numbers backlog

a Mike. Good to No. the of in did that backlog the business prior-quarter We how question, actually the some on recognized we had change got. we've numbers restate due base

Okay.

why million previously prior from $XX the quarter? you So that's for reported what up had it's

Right.

no other think that? regarding about changes to And

No, no, not no. really,

Okay.

shield should we As you assembly Airbus, big wind for 'XX? expect 'XX, your with of revenue customer as to Airbus things like a become a how percent of

Sure, Airbus very growing XX% that nice today well, aerospace and a we had clip. previously our revenue said is commercial of at roughly

of continue expecting with to business new part in win Airbus our business. particularly we're to So, titanium

Okay.

growth So just there. steady

right, in year -- on I the Yes, better mean as out this only we're for Parsons, activity the really is the and the nice think Steve, just operationally here. with phone about team very XXXX where job and we the there Airbus so go been but we big of us some that everything Parsons up, everyone knows getting it's was a forward going is was I and this call, and all year deal ramp this a and is on

think good story I So, for Airbus. the is

thing so we're Airbus I worthy more to think there. direct I -- we're positive we've forward and come, think to proved to contracts that looking that them getting of

Thank Okay. Steven. you,

Sure. Yes.

[Operator Edward with instructions] We have follow-up Marshall Sidoti. from the a line question do of

line ahead. open. Please Your is go

clarification. point of quick a Just

XX You of said points that of LDS or XXX by is business. electronics to points basis you to is was it points. XXX margin XX going going business that raise to have basis XXX the to XX mean existing to Did basis above the electronics

to addition the basis the over the No will that it to LDS -- time. XX segment overall raise margin with of XXX portfolio points

information might have paid it profitable almost based sales mean business. close provided. times of So, I looks it's on X.X you sales to some the a times okay, -- relatively -- you I X.X like so

relatively So, small on such base? revenue make profitable impact order to I'm assuming that it's in a

Yes, that's Ed, assumption, reasonable a yes.

Thanks.

Thank you. Okay.

I'm Noble Market. And from follow-up Mark with question line showing you. the Thank Capital another Jordan of

Please open. ahead. is line Your go

could you guess your for CapEx might be year? spend the share follow-up. you what next of a Doug, Thank

to, happy was an yes, year Parsons expect Sure, CapEx project. return we with Mark. do exception expansion normalized to our I This mean, more levels. to

some new that's, somewhere programs it million to make going next at between and the would this expecting back point looking runs to we're But we're if a to roll we $XX requisite investment. year So, big the be $XX Obviously year. at. normalized we typically win and it million range that's

you. Thank

the no the appears to to over I there to for you. in remarks. be back questions conference turn further Mr. And Oswald Thank queue. closing like would And any

the Okay. Obviously, things and Thank us of much on you very everyone today here thank Ducommun. for lot joining call. happening at

the work as think and the ahead of us it's on also to going still positive, I we marketplace we're and company growth cost think in most drive think I for but I side. going well lots we make I we that the the I to doing things think strengthen of the us it's have think it's good work, for very part sure right position

support So to forward day. for next We to again, interest I and company. everyone great continued look time of and seeing Have a want the their quarter. you thank the

Everyone great today's and Ladies disconnect. thank have you program. does And a gentlemen, the day. for you conference. in conclude all This may participating