DCO Ducommun Dashboard

Risks

• Our indebtedness could limit our financing options, adversely affect our financial condition, and prevent us from fulfilling our debt obligations.
• We require a considerable amount of cash to run our business.
• We require a considerable amount of cash to fund our anticipated voluntary principal prepayments on our Credit Facilities.
• The covenants in our Credit Facilities impose restrictions that may limit our operating and financial flexibility.
• We may be adversely affected by changes in LIBOR reporting practices or the method in which LIBOR is determined.
• The typical trading volume of our common stock may affect an investor’s ability to sell significant stock holdings in the future without negatively impacting stock price.
• Our amount of debt may require us to raise additional capital to fund acquisitions.
• Our end-use markets are cyclical.
• We depend upon a selected base of industries and customers, which subjects us to unique risks which may adversely affect us.
• A significant portion of our business depends upon U.S. Government defense spending.
• Contracts with some of our customers, including Federal government contracts, contain provisions which give our customers a variety of rights that are unfavorable to us and the OEMs to whom we provide products and services, including the ability to terminate a contract at any time for convenience.
• Further consolidation in the aerospace industry could adversely affect our business and financial results.
• Our growth strategy includes evaluating selected acquisitions, which entails certain risks to our business and financial performance.
• We may not be successful in achieving expected operating efficiencies and sustaining or improving operating expense reductions, and may experience business disruptions associated with restructuring, performance center consolidations, realignment, cost reduction, and other strategic initiatives.
• As we move up the value chain to become a more value added supplier, enhanced design, product development, manufacturing, supply chain project management and other skills will be required.
• Risks associated with operating and conducting our business outside the United States could adversely impact us.
• Customer pricing pressures could reduce the demand and/or price for our products and services.
• Our products and processes are subject to risk of obsolescence as a result of changes in technology and evolving industry and regulatory standards.
• We may not have the ability to renew facilities leases on terms favorable to us and relocation of operations presents risks due to business interruption.
• We are subject to a number of procurement laws and regulations. Our business and our reputation could be adversely affected if we fail to comply with these laws.
• Our operations are subject to numerous extensive, complex, costly and evolving laws, regulations and restrictions, including cybersecurity requirements, and failure to comply with these laws, regulations and restrictions could subject us to penalties and sanctions that could harm our business.
• Environmental liabilities could adversely affect our financial results.
• The occurrence of litigation in which we could be named as a defendant is unpredictable.
• Product liability claims in excess of insurance could adversely affect our financial results and financial condition.
• We use estimates when bidding on fixed-price contracts. Changes in our estimates could adversely affect our financial results.
• Goodwill and/or other assets could be impaired in the future, which could result in substantial charges.
• Unanticipated changes in our tax provision or exposure to additional income tax liabilities could affect our profitability.
• Our ability to accurately report our financial results or prevent fraud may be adversely affected if our internal control over financial reporting is not effective.
• We are dependent upon our ability to attract and retain key personnel.
• Labor disruptions by our employees could adversely affect our business.
• We rely on our suppliers to meet the quality and delivery expectations of our customers.
• The COVID-19 pandemic has had a significant impact but could have a material adverse effect on our business, results of operations and financial condition.
• Cybersecurity attacks, internal system or service failures may adversely impact our business and operations.
• Assertions by third parties that we violated their intellectual property rights could have a material adverse effect on our business, financial condition, and results of operations.
• Damage or destruction of our facilities caused by storms, earthquake, fires or other causes could adversely affect our financial results and financial condition.