Ladies and gentlemen, thank you for standing by, and welcome to the Ducommun Second Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Please be advised that today's conference is being recorded. I would now like to hand the conference over to your moderator today, Mr. Chris Mitty.
Thank you. Please go ahead.
Thank you, and welcome to Ducommun's 20 2nd quarter conference call. With me today are Steve Oswald, Chairman, President and CEO and Chris Wampler, Vice President, Interim Chief Financial Officer and Treasurer and Controller and Chief Accounting Officer. I'm going to discuss certain limitations regarding forward looking statements regarding future events, projections or performance that we may make during the prepared remarks or the question and answer session that follows. Certain statements today that are not historical facts, including any statements as to future market conditions, results of operations and financial projections are forward looking statements under the Federal Private Securities Litigation Reform Act of 1995 and are therefore a perspective. These forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from the future results expressed or implied by such forward looking statements.
Although we believe that the expectations reflected in our forward looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. In addition, estimates of future operating results are based on the company's current business, which is subject to change. Particular risks facing Ducommun include, among others, the cyclicality of our end use markets, the impact of COVID-nineteen on our operations or customers, the level of U. S. Government defense spending, timing of orders from our customers, legal and regulatory risks, management changes, the cost of expansion and acquisitions and competition.
These risks and others are described in our annual report on Form 10 ks filed with the SEC, and our forward looking statements are subject to those risks. Statements made during this call are only of the time made and we do not intend to update any statements made in this presentation except if and as required by regulatory authorities. This call also includes non GAAP financial measures. Please refer to our filings with the SEC for a reconciliation of the GAAP to non GAAP measures referenced on this call. We filed our 20 2nd quarter Form 10 Q with the SEC today.
However, the SEC is having some technical difficulties, so you may not be able to currently view it on their website. Please continue to check as they are working on it. I would now like to turn the call over to Mr. Steve Oswald for a review of the operating results. Steve?
Well, thank you, Chris, and thanks everyone for joining us today for our Q2 conference call. I also hope that you and your families are healthy continuing to get through this pandemic as best as possible. Today, as usual, I will give an update on the current situation at the company, after which Chris Wampler will review our financials in detail. The company remains focused 1st and foremost on the health and safety of our employees. Team has done an excellent job and despite facilities around the country and quite a few in Southern California, the impact is mostly 0.
The amount of positive cases across the company less than 25. We also continue to remain diligent on communication and ensuring best practices are followed in all facilities to sustain this performance. Tucumab's 2nd quarter results were strong in light of the unprecedented challenges due to the pandemic in the commercial aerospace markets. As mentioned in our April call, the reasons for the strength is that since 2017, the team has been improving all of our operations, developing and rationalizing the product portfolio, driving new technologies, focusing on providing high value to customers along with pricing, developing an effective cost structure with a flat organization and making 3 strategic acquisitions. This has been particularly evident in the revenue and order progress over the last few quarters for Ducommun's Defense Business along with the overall margin performance for the company.
Company's 2nd quarter revenue was down 18.4% year over year, all due to the commercial aerospace markets and in line with our communication and expectations. Ducommun's Defense business, however, showed great strength being up 23% versus prior year. Though not everyone wanted to show negative growth, the revenue number is impressive from not only the virus impact, but also overcoming $30,000,000 of 7 37 MAX headwind in the quarter. The common defense business on the other hand continues to show excellent progress with big opportunities ahead. The majority of the gains in defense included increases from our new weapon systems business Nobles Worldwide along with the F-thirty 5 Patriot Missile, CH-fifty 3 ks Heavy Lift, V-twenty two Osprey, F-fifteen, F-sixteen and other industry programs.
Another growth area this year, which I mentioned during our last call, was Ducommun's new efforts with UAVs. I'm happy today to announce at this time, our first major customer in this new area is General Atomics Aeronautical Systems. We are thrilled to be selected as a strategic supplier by GA, providing critical components on the Predator series remotely piloted aircraft and look forward to many productive years together. Tucomit also continues to leverage its preferred supplier agreement signed last July with the former Raytheon Missile Systems Business, now known as Raytheon Missile and Defense. The total missile case, a new structures program with RMS mentioned in the previous call is now in full production at our Monrovia, California Performance Center.
We have 2 other wins this year for the TOW missile at other Ducommun performance centers in the Midwest. And in total, this one program will generate over $30,000,000 of revenue in 2021. These types of wins have allowed us to build a compelling value story and now track record utilizing Ducommun's full portfolio of products and services as we move further to drive sales gains at Raytheon Technologies and other defense OEMs. The other real bright spot for the quarter was ending Q2 with a backlog of $505,000,000 for the defense business, which is an all time record for Ducommun. Total backlog was $831,000,000 for the company, sequentially down from Q1, but still is a great number based on the environment.
Defense business grew year over year by 38%, bolstered by strong orders across numerous key defense platforms, which included the TOW missile, previously discussed, GA, weapon systems for ground vehicles, F-eighteen, Patriot, F-thirty 5, Aegis and others and as this is part of Ducommun that continues to deliver. Obviously, this strength helped offset commercial aerospace order pressure. As in Q1, cost actions have continued with the pandemic and the Q2 7 37 MAX schedule changes to ensure we have adjusted our costs. You can certainly see the effectiveness of our actions in both the positive gross profit expansion year over year and a solid operating income percentage. Team has certainly done a great job moving quickly and managing this difficult environment with no material pandemic related costs incurred.
In regards to the Q3 outlook, our significant backlog in Defense with the many growth programs mentioned earlier will provide the same strong revenue. However, we see the revenue profile for Q3 the same as Q2 being 16% to 20% down year over year. Our comments on the April 30 call were for better sequential revenue in Q3, but this was based at the time of 2 16 shipments for Spirit AeroSystems in 2020 for the 737 MAX. As we know, this changed later in the quarter from 216 to 125 and now 72. Therefore, this was the main reason we had to adjust the outlook.
A real bright spot though is that we see our operating income margins now between 7% and 8% in the quarter, up 100 basis points more from our comments in April. As we look to Q4, we estimate that revenue will again be led by defense, but the business overall will be down year over year by 14% to 18%, again due to commercial aerospace and operating margins will again be in the same range as Q3 at 7% to 8%. As you have seen through the first half of the year, the unprecedented challenges with the pandemic along with $55,000,000 of headwind for the MAX created an historic challenge for Ducommun and our team. The business though has shown great strength due to the many strategic initiatives since 2017 and has clearly made a material difference for the company, our customers and the shareholder. The common also has a great long term future.
Despite the current challenges, we look forward to a return to revenue growth for the full year in 2021, leveraging our many defense wins and historic defense backlog along with benefiting from share gain at Airbus and also a modest level of recovery for some of our commercial OEM customers. Now let me provide some additional color on our markets, products and programs. Beginning with our military and space sector, we posted 2nd quarter revenue of $94,600,000 once again representing strong growth versus 2019, up 23%. We drove revenues across a broad variety of defense platforms, including every aspect of our product portfolio. As mentioned earlier, we saw increases in demand for our military fixed wing aircraft programs, particularly strong shipments for the F-thirty five, F-fifteen and F-sixteen as well as top line expansion for helicopters such as the CH-fifty 3 ks and the V-twenty 2.
In addition, the Patriot missile system rose again this quarter. We see significant growth across many military and space applications going forward. We also had significant growth on a number of ground vehicle programs such as the Clouder Leopard. The 2nd quarter military and space revenue represented 64% of Ducommun's revenue in the period. We also continue to be very well positioned for further growth across our defense platforms over the next several quarters in all sectors and again ended the 2nd quarter with an all time record high backlog.
This was up an impressive 38% year over year, representing over 60% of Ducommun's backlog at the end of Q2. Within our commercial aerospace operations, 2nd quarter revenue declined year over year to $40,400,000 as expected driven by bill rate declines on the 7 37 MAX as well as many other programs impacted by the COVID-nineteen pandemic. Ducommun, as stated earlier, has effectively adjusted costs and managed the downturn and is well positioned once rates stabilize and increase over the long term. The comps expansion with Airbus since 2017 is clearly going to be a benefit as we move forward and puts important balance in our portfolio for the future. The backlog within our commercial aerospace sector stands at roughly $307,000,000 at the end of the Q2, with the majority of the decline attributed to the 7 37 MAX program.
With that, I'll have Chris review our financial results for the details. Chris?
Thank you, Steve, and good afternoon, everyone. As a reminder, when it shows up on the SEC website, you can see the company's filing along with the Q2 earnings release that is already out there for a further description of information mentioned on today's call. As Steve discussed, we were pleased with our overall Q2 results, particularly during a global pandemic that has severely impacted commercial and aircraft demand. We remain confident that our ability to flex production at our performance centers, while leveraging ongoing strong demand within the military and defense sector will serve us well going forward. Now I'll move to the details of our overall results.
Review of the Q2 2020. Revenue for the Q2 of 2020 was $147,300,000 versus $180,500,000 in the Q2 of 2019. The performance reflected $17,400,000 of higher sales within the military and space sector, offset by $51,600,000 of lower revenue from our commercial aerospace customers. As Steve discussed, nearly all of our commercial platforms have been negatively impacted by lower demand due to COVID-nineteen. Ducommun's overall backlog at the end of the second quarter was approximately $831,000,000 Growth in the military and space sector continues to drive a sustained solid base of business.
As a reminder, we define backlog as a potential revenue based on customer purchase orders and long term agreements with firm fixed prices and expected delivery dates of 24 months or less. We posted strong gross margins for the quarter as gross margins rose to 22.2 percent from 21.1% in the prior year's comparable period. The increase year over year was due to favorable product mix and lower compensation and benefit costs. Gross profit fell to $32,700,000 from $38,100,000 last year due to the lower commercial aerospace revenue. We continue to focus on execution and sustaining margins and where possible expanding margins even as overall manufacturing volumes remain under pressure.
SG and A was $22,000,000 in the quarter versus $24,500,000 last year as the prior year included $1,700,000 of one time severance expense and execution of current year cost control initiatives. The company reported operating income for the Q2 of $10,000,000 or 6.8 percent of revenue and adjusted operating income of $10,700,000 or 7.3 percent. This compares to an adjusted operating income of 13 point $6,000,000 or 7.5 percent of revenue in the prior year period. The year over year decline was due to lower revenue, partially offset by higher gross margin and lower SG and A expense. Interest expense was $3,700,000 in the Q2 of 2020 versus $4,400,000 in the prior year period, reflecting the favorable impact from lower interest rates, which more than offset higher debt levels.
The increased debt outstanding was primarily due to funding the company's acquisition of Nobles in October 2019, along with drawing down $50,000,000 on our revolver, which remained as cash on hand at the end of the Q2 2020. The company reported net income for the Q2 of $5,100,000 or $0.43 per diluted share and an adjusted net income of 5,600,000 dollars or $0.48 per diluted share. This compares to an adjusted net income of $7,800,000 or $0.66 per diluted share for the Q2 of 2019. The year over year decrease was primarily due to lower revenue as noted earlier. Adjusted EBITDA for the Q2 of 2020 was $20,300,000 or 13.8 percent of revenue compared to $22,400,000 or 12.4 percent of revenue for the comparable period in 2019.
Now let me turn to our segment results. Our Electronic Systems segment posted revenue of $92,000,000 in the Q2 of 2020 versus $89,300,000 in the prior year period. These results reflect a $7,700,000 increase in sales to the company's military and space customers, partially offset by $6,000,000 of lower revenue across the commercial aerospace platforms. Electronic Systems posted operating income the Q2 of $10,400,000 or 11.4 percent of revenue versus $9,900,000 or 11.1 percent of revenue in the prior year period. The performance reflected lower compensation and benefit costs compared to 2019, but both manufacturing volumes and product mix negatively impacted margins sequentially versus the Q1 of 2020.
Our Structural Systems segment posted revenue of $55,400,000 in the Q2 of 2020 versus $91,200,000 last year. The year over year decrease was due to 45,500,000 dollars of lower sales across our commercial aerospace applications, reflecting current demand dynamics, as Steve discussed, partially offset by $9,700,000 of higher revenue within the company's military and space markets. Structural Systems posted operating income for the quarter of $6,200,000 or 11.2 percent of revenue and adjusted operating income of $6,800,000 or 12.4 percent of revenue. This compares to an adjusted operating income of $11,800,000 or 12.9 percent of revenue last year. The year over year operating margin decline reflected unfavorable manufacturing volumes, partially offset by favorable product mix.
As I finish my update on Structural Systems, I want to briefly mention an incident that occurred subsequent to the close of our Q2 related to our Guaymas, Mexico Performance Center. This manufacturing facility is a part of our Structural Systems segment. Our 2nd fiscal quarter ended June 27, 2020. On June 29, 2020, a fire severely damaged the facility, which is comprised of 2 buildings totaling approximately 62,000 square feet. Thankfully, there were no injuries.
However, inventory and property and equipment in this lease facility were damaged. This has historically been a site where we perform secondary operations for a number of our performance centers. In addition, this location has supported our VersaCore product line. We have insurance coverage for the losses and expect the majority, if not all, of the items will be covered under the policy. We are currently working with our insurance carrier to assess the losses and work through the claims process.
In the near term, we will utilize our contingency plan that incorporates significant redundant manufacturing capabilities, which will allow us to absorb the production that was planned for the Glimus performance center in several of our other performance centers. We do not expect a material change to the production levels and we will continue to focus on meeting our customers' needs for these products. For the remainder of 2020, the adjusted results we will be reporting will exclude our restructure activities and the impact related to the Guaymas fire. Corporate, general and administrative expense. CG and A expense for the Q2 of 2020 was $6,600,000 or 4.5 percent of revenue versus $8,100,000 or 4.5 percent of revenue in 2019.
This reflects one time severance charges of $1,700,000 in the Q2 of fiscal 2019. Turning to liquidity and capital resources. We have available liquidity of $120,000,000 comprised of $70,000,000 of cash on hand plus the remaining $50,000,000 on our revolver at the end of Q2 of 2020. We generated $8,600,000 of cash from operations during the Q2 of 2020 compared to $9,700,000 during the prior year period. This performance reflected effective working capital management, partially offset by lower net income.
We continue to be in compliance with our debt covenants and our credit facilities do not mature until 2024 2025. As a reminder, our leverage ratio covenant ceiling is 4.75. Our leverage ratio was 3.0 at the end of the Q2 of 2020. Cash generation and cost management within our efficient operating structure remains our priority, and we expect to generate positive free cash flow for the remainder of 2020. In terms of capital expenditures, we spent $1,100,000 during the Q2 of 2020 and anticipate spending between 12,000,000 dollars 14,000,000 in 2020.
This aligns with our cash conservation initiatives and should result in a capital spending decrease of more than 20% versus 2019. These estimates do not reflect the incremental spending required to replace the manufacturing capabilities damaged in the fire in Guaymas. We expect the majority, if not all, of the spending to be funded from insurance recoveries. Employee safety is always top of mind, even as we continue to focus on cost management, flexing our performance center production schedules and optimizing working capital as we move forward. Our Q2 performance was a result of a strong resilient effort by all the Ducommun employees who remain focused on execution and satisfying the customers' demands during this very challenging period.
I'll now turn it back over to Steve for his closing remarks. Steve?
Okay, Chris. Thank you. Well, certainly, first, I hope we have provided some important information today as we work through 2020. Again, I thought the Q2 was strong despite the challenges and believe we have a lot of runway ahead in the long term. I'd also add that we do have the right footprint, cost structure, discipline and operational leadership and experience to continue performing in the face of the current crisis.
I also want to thank our customers, shareholders and all of our business partners for their continued support as we work through these difficult times together. We've also given out now $1,000,000 to the local area charities where we operate to help our neighbors and communities. In closing, I would like to again this quarter take this time to tell the common employees that I'm proud of them and all their efforts dealing with the many challenges from the pandemic. Our team members show up at our operations every day and though stressful, get the job done for our customers and nation. With that, let's turn it over to Colin, please.
Thank you.
Your first question comes from the line of Ken Herbert from Canaccord. Your line is now open.
Hi, good afternoon, Steve and Chris.
Hi, Ken. Ken, how are you?
So pretty good. Hope you guys are well.
Good. Thank you.
Hey, Steve, I just wanted to first ask, sequentially, margins in the Structural Systems segment showed a really nice increase. Was that mix or predominantly or was there anything else going on obviously with the down volume?
Yes, I mean, I'll take that one. Yes. So on structures, Ken, it was a couple of things. I mean, mix was a big part of the play for sure. Q1, if you look sequentially, Q1 was sort of a perfect storm in terms of we came into Q1 where we had demand that during that quarter started to get pushed out with Boeing and Spirit and the pandemic sort of hitting right there at the end as well.
So we had a lot of ripple effect on the costs and being able to absorb as cleanly as we like certainly in Q1 along with the mix that put us in a tough spot for the number in Q1, and that's why that margin for Q1 was lower than it had been for several quarters. And then in Q2, mix changed a little bit, that certainly helped us. But also some of the initiatives and sort of the realignment and flexing that was taking place during Q1, at the end of Q1 and as we got into Q2, helped clear the path for a better performance.
Yes. Ken, we're obviously day to day, week to week managing costs and driving productivity. And we have I think we have the way we have it set up with some performance centers, we're able to react quickly and move cost out as appropriate.
Okay. No, that's great. And as I look at the revised outlook for the second half of the year, I think coming out of the Q1, you were sort of talking about top line down 10% and now it's sort of mid to high teens between the two quarters. Is that exclusively the MAX? Or is there anything else that's maybe come out of the schedule or maybe helped offset the MAX relative to Q1?
Yes. So look, we talked to you on April 30 and being we're in the situation, I felt appropriate where we don't really really didn't give that in the past to be a little more granular. And as we said, we were going to be 16 to 20 down. In Q2, we came in at 18.4 which is pretty much where we were. On April 30, Ken, we still had 216 in the book for Spirit.
And as you know, by the middle of June that changed, okay? So we looked at it. We're really, again, going to be $16,000,000 to $20,000,000 down. That's the best effort we can give right now. And then we're going to get a little better in Q4, 2014 to 2018.
No, I appreciate the guidance. It's very helpful, Steve. And just one final question. Have you adjusted your schedules yet to reflect the sort of downward revisions from Boeing on the 787? Maybe if you can just talk about sort of what level you're shipping out of that program or how much of a headwind that could be for you over the next couple of quarters?
Yes. That's one of the big context I feel. Look, we've had a great run since I showed up in 2017 and through 2019 on the MAX and the 737NG and that's all that was all terrific. Obviously, lots of things have changed as you know. We are managing it both with Boeing and Spirit.
We really have adjusted our order books and our production down. So when we give you this information for the second half of the year, we feel good about it.
Excellent. Well, really nice quarter. Thanks a lot.
Yes, Ken. Thanks. Appreciate it. Thanks, Ken.
Next question comes from the line of Michael Ciarmoli from SunTrust. Your line is now open.
Hey, good evening, gentlemen. I'll echo Ken's comments. Nice quarter here given the current operating environment.
Thank you. Thank you.
Appreciate it. Just to go back to maybe stay on the margins a little bit, obviously the good sequential improvement in Structural Systems. But what's been the biggest if you look at that original forecast April 30, you had that 5.5% to 6% and now you've raised that in second half. Is that just more cost takeout? Has anything changed with mix regarding the defense profile?
Anything else that's changing from a margin standpoint? Are you guys just taking out more costs or taking out costs more aggressively?
It's a combination. So the cost takeout that we did as we entered Q2 helped and we got to sort of see what that meant to us. And then there have been additional activities because it's as everybody is talking about, it's been a very dynamic scenario. And so that has been certainly a part of it. But also, it's just seeing the sustainment of or seeing how structures react to that and sort of where they can come back to along with this additional defense business and what that will do for us.
So, I think it's a combination and it's what will be we'll keep working it as we move through the second half of this year.
Yes. Mike, let me add one thing. I think the other story here is that and I know other companies had to do what they've had to do, but we did a major restructuring back in November 2017. And as you go forward through time here, we really have a flat organization, especially at corporate. And I think we have an effective organization in that spirit.
So that's the other thing that's happening this year is that it's paying off that we really haven't had a lot of cost back since that November 2017 restructuring.
Got it. And you've mentioned value based pricing a couple of times on this call already. Anything, especially as rates have gone down, have you been able to I know on the way up with rate, all we kept hearing about was partnering for success, pressure on rates, the higher volumes, anything you can get back on pricing or have you in the commercial side? And it sounds like you're getting it on the defense side.
Yes. I think I'm not going to be I'm not going to go into specifics, but if you look at our strategy and where we've been, kind of where we're going, I mean, we're heavily into titanium. We're heavily into other types of processes where they're sought after, a little less competition. And we're really driving that. And quite frankly, as I mentioned in my remarks, I mean, we've gotten a lot better last few years on operations.
So our customers are very happy with us.
Got it. And then just on the backlog, specifically the commercial aerospace side, is that have you guys actually seen order cancellations from customers? Is that you guys just how you calculate the backlog based on production rates or what was really driving the backlog erosion there? I'm just is it more customer adjustments and cancellation?
Yes. I mean, so we do have a couple of questions I think embedded there, Mike. But the first thing is, it's the actual purchase orders that we have in there and the demand that we have in there from the customers. There's constant conversation with them. What have we seen this quarter that's a little different than many other quarters?
More conversation about pushing some things out, whether it was the rate changes that Steve alluded to or others. So I think not cancellations in terms of anything of any magnitude, but more some push outs that have happened. But by and large, it's a tough market and we're just we're dealing with it.
Yes. And Michael, let me just add on here that the whole I think it goes all into my remarks earlier about in the spirit of cancellations. I mean, like I said, with titanium, a lot of things that we do is that we're in a great market position there. So we do have to make some adjustments. We're fairly conservative with our backlog.
I think that's a good thing. But the other, I think, story here is that to break $500,000,000 in defense backlog for the first time is a big deal.
Yes. No, no, agree. And maybe I'll just ask one more on non defense since you brought up that. The win with General Atomics, you know, and you called out Predator. Can we assume this might be, you know, maybe I'll use this term loosely, but tip of the iceberg, do you more options within the General Atomics portfolio?
I know they're working on some lower cost drone technology now, but do you think you can further penetrate them after this win here?
Yes, we absolutely do. I know on April 30, Mike, you asked me who the customer was and I couldn't tell you. So at least I gave General Thomas this time, okay, pal? Yes. Exactly.
All right. So I'm delivering for you. Anyway, no, but we're first of all, we're thrilled. I mean, GA is a leader and we're building some great relationship and some great things there. And we think we got lots to go there and we think they're a terrific customer to be with.
Next question comes from the line of Mike Crawford from B. Riley. Your line is now open.
Thank you. Hey, on the gross margins, is that an all time record? I would expect the highest I could see was 21.7% back in the Q2 of 2010.
Yes. I believe back in the a little earlier back in that decade, we would have popped 1 a little bigger. But this is certainly since the LaBarge acquisition in 2011, this is a high watermark with a lot of things clicking in.
And Mike, from my remarks, I mean, this I just want everybody on the phone understand, this doesn't happen by accident or just all boats are up in the defense industry. I mean, we put a lot of time in the last couple of years through my remarks earlier to really put us in the position where we're delivering these margins despite some real tough news on the commercial aero side.
Okay. That's great. Thank you for that. And just regarding not by accident, with the increase in working capital, the inventory is up, was that not by accident? Is that the plan for some of these new military programs?
Or is that more of a function of structural slowdown where you're gearing up for a certain number of units on the 737? And where do you want to see these accounts going forward?
Yes. No. So the answer there, Mike, is a little bit of both. So we have certainly some places where we are on new programs or we're building up to some extent. But definitely, as we went through that turbulent Q1 into Q2 period, there was expectation.
And certainly, we have a lot of long lead time material that goes into being able to build some of the complex components. And turning that off correlated to the demand change can have some leakage there as well. So where do we want to go? I mean, we'd like to we certainly would like to, as Steve alluded to, we're not showing terrific growth here in the second half of the year. So we would like to be able to manage the inventory appropriately as we go through the year.
Okay, thanks. And then final question just relates to Glimus, how that might affect Versacore deliveries to Airbus and the status of Versacore manufacturing in general?
Yes. So to circle back on Guimas, again, let's break it into 2 pieces. There's a lot of secondary operations that we've done down there for years since we've had a presence in Guaymas. And for those, we have capabilities back in the plant where the primary operations were coming from. So literally, it's just redeploying where we're going to finish that product out.
The part that relates to VersaCore, there has been some investment that's been done there. And in that case, we are retooling at one of our other facilities here in Southern California and getting back online as quickly as we can. And in doing that, we don't view more we do not view there being a significant change in being able to hit what we need to do to deliver for the river on it.
Yes. And Mike, let me just chime in here. Look, we're as you know and I know you follow it VersaCore, look, we're very upbeat about it. The other thing I'll mention is that the GM for the business as well as certain members of his team are actually they're based out of Gardena, California. So that was the other thing where we do have we certainly are disappointed and first glad no one got hurt.
But we were able to move pretty quick with the Guaymas production and we're going to work out of this thing fine.
All right. Thank you very much.
Thanks, Mike. Thanks, Mike. Appreciate it.
And you have a follow-up question from Ken Herbert from Canaccord. Your line
is now open. Yes. Hi. I just had a couple of quick follow-up questions. The first on Nobles, can you remind us again maybe what the contribution to growth was in the quarter from Nobles?
And how has that acquisition been going? It seems like there's been some
Yes, Ken, this is Chris. I'll address it. So with the acquisition and the size of the acquisition similar to LDS and similar to CTP, small enough, we didn't put in a lot of information related to their size of the financial statement. So as those three tuck ins have come in and as Noble's has come in, certainly that's a nice help to our structure story as we move forward. But there's no specific dollar amount sort of thrown in there.
Having said that, the acquisition has gone very smoothly. And we have been very happy with not only them continuing on with the way that they were pre acquisition, but also them finding ways to grow. And Steve alluded to the Cloud Leopard, but there's some other ways there too that they're going to continue to find ways to grow that we believe that they will grow even quicker than what we thought at the At Time acquisition. Yes.
And Ken, let me just chime in as well. So look, Noble's legacy has been on aircraft, okay, and marine. Now we're moving into ground vehicles and obviously the clouded Leopard and some other things. So it's been going very well. This ammunition shoe business is something that we've we're the market leader.
So we're driving it and we're absolutely think they're going to have great things in 2021 as well. So it's all thumbs up for Nobles.
That's good to hear. And Steve since you've been there, you've done roughly sort of an acquisition a year. I'm just curious if you can comment on sort of what you're seeing now in terms of activity and opportunities and maybe how the pipeline looks and maybe the period of time until things start to normalize a little bit?
Sure, Ken. Thank you. So there is a pipeline, okay? So we are active. I think one of the best things we did was bring in Sumon Mukherjee.
Sumon leads the BD department and a lot of experience ex UTC and worked with me at KKR as well. And so I think we got the right process, we got the right people. Pipeline is okay. I mean certainly we're looking at things. As far as our cadence, and I think that we're we want to be aggressive and we want to lean in, but we don't want to rush.
I mean, and I think if you look at the last our last three deals, they've all worked out really well for shareholders and for the company and for just in general. So our cadence is if we find something we like, we go after it. We have a pretty successful record for being able to close over the last couple of years. So more to come on that Ken, okay? It's important to us.
Yes. No, I know it's been obviously a big part of the success over the last few years. Yes. Yes. And if I could just one final question, Steve.
There's been some suppliers that have been talking about the new I guess what they're calling the premier bidder program from Boeing. And I'm just curious, I know obviously it's not a sort of a complete PFS type replacement. But I'm curious if that's something you've had discussions on, if maybe you've signed up for that or how you're viewing that and maybe some of the opportunities to invest a little more for maybe an uptick on some volume?
Yes. Ken, just we haven't had any conversations with Boeing yet on that.
Okay, perfect. All right, you guys. Thank you.
Okay. Ken, thank you very much.
At this time, there are no further questions in the queue. So I'll turn the call back to Mr. Oswald for any closing remarks.
Okay. Well, thank you very much. I just want to again wish everybody good health for yourself and for your families. And we certainly hope things when we talk to you next time things will be better on the pandemic front. Just want to wish everyone again a good evening and we look forward to speaking to you again soon.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.