DMC Global Inc. (Nasdaq: BOOM) today reported financial results for
its fourth quarter and fiscal year ended December 31, 2020.
Fourth quarter sales were $57.1 million, up 3%
sequentially versus the 2020 third quarter, and down 34% versus the
2019 fourth quarter. The decline versus last year’s fourth quarter
reflects the pandemic-related drop in travel and economic activity,
which reduced demand for oil and gas, negatively affecting sales at
DynaEnergetics, DMC’s energy products business. Fourth quarter
gross margin was 21% versus 25% in the third quarter and 35% in the
prior-year fourth quarter. The sequential decline principally
reflects an anticipated less-favorable order mix at NobelClad,
DMC’s composite metals business.
Fourth quarter operating loss was $818,000
versus operating income of $499,000 in the 2019 fourth quarter. Net
loss was $927,000, or $0.06 per diluted share, versus a net loss of
$5.3 million, or $0.36 per diluted share, in the prior-year fourth
quarter. The 2019 fourth quarter was impacted by $13.2 million in
restructuring charges ($12.1 million of which were non-cash)
principally related to the closure of DynaEnergetics’ manufacturing
plant in Tyumen, Siberia.
Adjusted operating loss* was $736,000, and
excludes $82,000 in restructuring charges. Adjusted operating
income in last year’s fourth quarter was $13.8 million. Adjusted
net loss*, which excludes the restructuring charges, was $825,000,
or $0.05 per diluted share. Adjusted net income* in the 2019 fourth
quarter was $9.5 million, or $0.65 per diluted share.
Fourth quarter adjusted EBITDA was $3.6 million
versus $6.0 million in the 2020 third quarter and $17.6 million in
the 2019 fourth quarter. Cash flow from operations was $9.0 million
versus $29.5 million in the prior-year fourth quarter.
Net cash* (cash, cash equivalents and marketable
securities less total debt) was $42.6 million versus $12.6 million
at the end of the 2020 third quarter and $6.1 million at December
31, 2019. Total debt was $11.3 million, and the Company’s
debt-to-adjusted EBITDA leverage ratio was 0.6.
DynaEnergetics DynaEnergetics reported fourth
quarter sales of $35.3 million, up 3% sequentially and down 45%
versus the prior-year fourth quarter. Sales in North America
increased 24% sequentially, while international sales declined 55%
from the third quarter. Gross margin was 24% versus 24% in the 2020
third quarter and 38% in the 2019 fourth quarter. Adjusted EBITDA
was $4.1 million versus $18.5 million in the 2019 fourth
quarter.
NobelCladNobelClad reported fourth quarter sales
of $21.8 million, up 3% sequentially and flat versus the 2019
fourth quarter. Gross margin was 18%, down from 26% in the 2020
third quarter and 27% in the prior-year fourth quarter. Adjusted
EBITDA was $1.9 million versus $2.4 million in the prior-year
fourth quarter.
NobelClad’s trailing 12-month book-to-bill ratio
at the end of the fourth quarter was 1.05. Order backlog was $39.9
million versus $42.6 million at the end of the third quarter and
$31.7 million at the end of the 2019 fourth quarter.
Full-year resultsConsolidated
sales in 2020 were $229.2 million, down 42% from $397.6 million in
2019. Gross margin was 25% versus 36% in the prior year.
Operating loss was $996,000 versus operating
income of $58.4 million in 2019. Excluding $3.4 million in
restructuring charges, 2020 full-year adjusted operating income was
$2.4 million versus adjusted operating income of $78.7 million in
2019.
Full-year 2020 net loss was $1.4 million, or
$0.10 per diluted share, while full-year adjusted net income was
$1.0 million, or $0.07 per diluted share. Net income in 2019 was
$34.0 million, or $2.28 per diluted share, while 2019 adjusted net
income was $55.6 million, or $3.75 per diluted share.
Full-year adjusted EBITDA was $19.1 million
versus $93.8 million in 2019.
Cash flow from operations was $30.4 million,
which excludes $13.9 million in capital expenditures. In 2019, cash
flow from operations was $64.6 million, and excluded $27.2 million
in capital expenditures.
DynaEnergeticsFull-year sales at DynaEnergetics
were $146.4 million, down 53% from $310.4 million in 2019. Gross
margin was 26%, down from 40% in the prior year. Adjusted EBITDA
was $16.3 million versus $94.5 million in 2019.
NobelCladNobelClad reported full-year sales of
$82.8 million, down 5% from $87.1 million in 2019. Gross margin was
23% versus 26% in the prior year. Adjusted EBITDA was $10.7 million
versus $11.1 million in 2019.
Management CommentaryKevin
Longe, president and CEO, said, “The recovery in unconventional
well-completion activity accelerated during the fourth quarter, and
fueled a 21% sequential increase in system sales at DynaEnergetics.
Improved demand in DynaEnergetics’ primary North American market
offset soft international sales, which we expect to increase during
this year’s second half.
“DynaEnergetics is receiving positive feedback
on several of its recently released products, including the DS
LoneStar™, a compact perforating system incorporating
next-generation shaped charges that deliver large, deep-penetrating
and highly uniform entry holes. Data from three recent field trials
showed the DS LoneStar charges achieved 98% perforating efficiency,
meaning nearly every perforating tunnel delivered fluid and
proppant into the targeted formations. Competitors’ best-performing
perforating guns typically achieve perforating efficiency in the
80% to 85% range.
“The technologically advanced customers that
tested DS LoneStar said the system delivered consistent hydraulic
fracturing treatment across its entire asset, and reduced the
required pressure-pumping horsepower by more than 20%. The DS
LoneStar system also completed the trial with no misruns or
misfires, illustrating the safety and performance benefits of the
IS2™ intrinsically safe initiating system, which serves as the
technological core of all DS products.”
Longe added, “Despite last year’s downturn, we
continued to invest in technology and products that enhance the
safety, efficiency and performance of our customers’ operations.
DynaEnergetics was awarded 24 patents and filed 131 patent
applications during 2020. We intend to aggressively protect and
defend our intellectual property, as it is central to our efforts
to create value for our customers and enhance the longer-term
viability of our industry.”
Longe continued, “NobelClad’s late-cycle end
markets generally lag changes in the broader economy, which likely
will result in a relatively slow start to 2021. We believe several
large international orders delayed by the pandemic will ultimately
be awarded; and given the numerous new applications NobelClad has
developed for its composite metal plates, the medium- to long-range
outlook for the business remains positive. NobelClad’s order
backlog at the beginning of the year was roughly 25% higher than at
the beginning of 2020, and the associated contribution margins were
a healthy 44%.
“Our primary energy markets have improved in
recent months, and we entered 2021 with the strongest balance sheet
in DMC’s history. Our at-the-market equity program is providing
added financial flexibility as we explore opportunities to
accelerate our growth and deliver strong, sustainable returns for
our stakeholders.”
“I am extremely proud of our employees and their
accomplishments during the most challenging year in Company
history,” Longe added. “Thanks to the determination and innovative
spirit of our global workforce, DMC has never been stronger or more
resilient.”
GuidanceMichael Kuta, CFO, said
first quarter 2021 sales are expected to be in a range of $55
million to $62 million versus the $57.1 million reported in the
2020 fourth quarter. At the business level, DynaEnergetics is
expected to report sales in a range of $37 million
to $42 million versus the $35.3 million reported in last
year’s fourth quarter. The wide forecasted range reflects
uncertainty regarding the timing of order deliveries following this
week’s severe winter weather in Texas, DynaEnergetics’ largest
geographic market. NobelClad’s sales are expected in a range
of $18 million to $20 million versus the $21.8 million reported in
the 2020 fourth quarter. Consolidated gross margin is expected to
be in a range of 22% to 24% versus 21% in last year’s fourth
quarter.
First quarter selling, general and
administrative (SG&A) expense is expected in a range of $12.5
million to $13 million versus the $12.5 million reported in the
2020 fourth quarter, while amortization expense is expected to be
approximately $325,000. Interest expense is expected to be
approximately $150,000.
Adjusted EBITDA is expected in a range of $3.5
million to $5 million versus $3.6 million in the fourth quarter of
2020.
“Given the uncertainty regarding timing of the
Covid-19 vaccination rollout and its impact on economic activity
and energy demand, we are not yet providing full-year sales and
earnings guidance. We do expect 2021 capital expenditures will be
in a range of $12 million to $15 million. In addition, full-year
amortization expense is expected to be approximately $1.1 million
versus the $1.4 million reported in 2020; and interest expense is
expected to be approximately $425,000, down from the $731,000
reported in 2020.”
Conference call
informationManagement will hold a conference call to
discuss these results today at 5:00 p.m. Eastern (3:00 p.m.
Mountain). Investors are invited to listen to a live webcast of the
call at: https://www.webcaster4.com/Webcast/Page/2204/39911, or by
dialing 888-506-0062 (973-528-0011 for international callers) and
entering the code 482102. Webcast participants should access the
website at least 15 minutes early to register and download any
necessary audio software. A replay of the webcast will be available
for 90 days and a telephonic replay will be available through
February 25, 2021, by calling 877-481-4010 (919-882-2331 for
international callers) and entering the Conference ID #39911.
*Use of Non-GAAP Financial
MeasuresAdjusted EBITDA, adjusted operating income,
adjusted net income, adjusted diluted earnings per share, net debt,
and return on invested capital (ROIC) are non-GAAP (generally
accepted accounting principles) financial measures used by
management to measure operating performance and liquidity. Non-GAAP
results are presented only as a supplement to the financial
statements based on U.S. generally accepted accounting principles
(GAAP). The non-GAAP financial information is provided to enhance
the reader’s understanding of DMC’s financial performance, but no
non-GAAP measure should be considered in isolation or as a
substitute for financial measures calculated in accordance with
GAAP. Reconciliations of the most directly comparable GAAP measures
to non-GAAP measures are provided within the schedules attached to
this release.
EBITDA is defined as net income plus or minus
net interest plus taxes, depreciation and amortization. Adjusted
EBITDA excludes from EBITDA stock-based compensation, restructuring
and impairment charges and, when appropriate, other items that
management does not utilize in assessing DMC’s operating
performance (as further described in the attached financial
schedules). Adjusted operating income is defined as operating
income plus restructuring and impairment charges and, when
appropriate, other items that management does not utilize in
assessing DMC’s operating performance. Adjusted net income is
defined as net income plus restructuring and impairment charges
and, when appropriate, other items that management does not utilize
in assessing DMC’s operating performance. Adjusted diluted earnings
per share is defined as diluted earnings per share plus
restructuring and impairment charges and, when appropriate, other
items that management does not utilize in assessing DMC’s operating
performance. Net cash is defined as total cash, cash equivalents
and marketable securities less total debt. ROIC is based on
Bloomberg Finance's most recent calculation methodology and is
computed as trailing 12-month net operating profit after tax
divided by average invested capital, where average of invested
capital is calculated based on the average of invested capital for
the current period and invested capital for the same period a year
ago. None of these non-GAAP financial measures are recognized terms
under GAAP and do not purport to be an alternative to net income as
an indicator of operating performance or any other GAAP
measure.
Management uses adjusted EBITDA in its
operational and financial decision-making, believing that it is
useful to eliminate certain items in order to focus on what it
deems to be a more reliable indicator of ongoing operating
performance. As a result, internal management reports used during
monthly operating reviews feature adjusted EBITDA measures.
Management believes that investors may find this non-GAAP financial
measure useful for similar reasons, although investors are
cautioned that non-GAAP financial measures are not a substitute for
GAAP disclosures. In addition, management incentive awards are
based, in part, on the amount of adjusted EBITDA achieved during
relevant periods. EBITDA and adjusted EBITDA are also used by
research analysts, investment bankers and lenders to assess
operating performance. For example, a measure similar to adjusted
EBITDA is required by the lenders under DMC’s credit facility.
Net cash or net debt is used by management to
supplement GAAP financial information and evaluate DMC’s
performance, and management believes this information may be
similarly useful to investors. Adjusted operating income, adjusted
net income, and adjusted diluted earnings per share are presented
because management believes these measures are useful to understand
the effects of restructuring and impairment charges on DMC’s
operating income, net income and diluted earnings per share,
respectively. ROIC is used by management as one measure of the
effectiveness of DMC’s use of capital in its operations, and
management believes it may be of similar usefulness to
investors.
Because not all companies use identical
calculations, DMC’s presentation of non-GAAP financial measures may
not be comparable to other similarly titled measures of other
companies. However, these measures can still be useful in
evaluating the company’s performance against its peer companies
because management believes the measures provide users with
valuable insight into key components of GAAP financial disclosures.
For example, a company with greater GAAP net income may not be as
appealing to investors if its net income is more heavily comprised
of gains on asset sales. Likewise, eliminating the effects of
interest income and expense moderates the impact of a company’s
capital structure on its performance.
All of the items included in the reconciliation
from net income to EBITDA and adjusted EBITDA are either (i)
non-cash items (e.g., depreciation, amortization of purchased
intangibles and stock-based compensation) or (ii) items that
management does not consider to be useful in assessing DMC’s
operating performance (e.g., income taxes, restructuring and
impairment charges). In the case of the non-cash items, management
believes that investors can better assess the company’s operating
performance if the measures are presented without such items
because, unlike cash expenses, these adjustments do not affect
DMC’s ability to generate free cash flow or invest in its business.
For example, by adjusting for depreciation and amortization in
computing EBITDA, users can compare operating performance without
regard to different accounting determinations such as useful life.
In the case of the other items, management believes that investors
can better assess operating performance if the measures are
presented without these items because their financial impact does
not reflect ongoing operating performance.
About DMCDMC Global is a
diversified holding company. Our innovative businesses provide
differentiated products and services to niche industrial and
commercial markets around the world. DMC’s objective is to identify
well-run businesses and strong management teams and support them
with long-term capital and strategic, legal, technology and
operating resources. Our approach helps our portfolio companies
grow core businesses, launch new initiatives, upgrade technologies
and systems to support their long-term strategy, and make
acquisitions that improve their competitive positions and expand
their markets. DMC’s culture is to foster local innovation versus
centralized control, and stand behind our businesses in ways that
truly add value. Today, DMC’s portfolio consists of DynaEnergetics
and NobelClad, which collectively address the energy, industrial
processing and transportation markets. Based in Broomfield,
Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more
information, visit the Company’s website at:
http://www.dmcglobal.com
Safe Harbor LanguageExcept for
the historical information contained herein, this news release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, including first
quarter 2021 guidance on sales, gross margin, SG&A, and
adjusted EBITDA; first quarter and full-year guidance on
amortization expense and interest expense; expected capital
expenditures in 2021; our expectations of a significant increase in
DynaEnergetics international sales during the 2021 second half; our
expectations of a relatively slow start to 2021 at NobelClad, our
belief that several large international orders delayed by the
pandemic will ultimately be awarded to NobelClad and NobelClad’s
positive long-range outlook. Such statements and information are
based on numerous assumptions regarding present and future business
strategies, the markets in which we operate, anticipated costs and
ability to achieve goals. Forward-looking information and
statements are subject to known and unknown risks, uncertainties
and other important factors that may cause actual results and
performance to be materially different from those expressed or
implied by such forward-looking information and statements,
including but not limited to: our ability to realize sales from our
backlog; our ability to obtain new contracts at attractive prices;
the execution of purchase commitments by our customers, and our
ability to successfully deliver on those purchase commitments; the
size and timing of customer orders and shipments; changes to
customer orders; product pricing and margins; fluctuations in
customer demand; our ability to successfully navigate slowdowns in
market activity or execute and capitalize upon growth
opportunities; the success of DynaEnergetics’ product and
technology development initiatives; our ability to successfully
protect our technology and intellectual property and the costs
associated with these efforts; potential consolidation among
DynaEnergetics’ customers; fluctuations in foreign currencies;
fluctuations in tariffs and quotas; the cyclicality of our
business; competitive factors; the timely completion of contracts;
the timing and size of expenditures; the timing and price of metal
and other raw material; the adequacy of local labor supplies at our
facilities; current or future limits on manufacturing capacity at
our various operations; government actions or other changes in laws
and regulations; the availability and cost of funds; our ability to
access our borrowing capacity under our credit facility; impacts of
COVID-19 and any related preventive or protective actions taken by
governmental authorities and resulting economic impacts, including
recessions or depressions; general economic conditions, both
domestic and foreign, impacting our business and the business of
our customers and the end-market users we serve; as well as the
other risks detailed from time to time in our SEC reports,
including the annual report on Form 10-K for the year ended
December 31, 2019. We do not undertake any obligation to release
public revisions to any forward-looking statement, including,
without limitation, to reflect events or circumstances after the
date of this news release, or to reflect the occurrence of
unanticipated events, except as may be required under applicable
securities laws.
|
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in Thousands, Except Share and Per Share
Data)(unaudited) |
|
|
Three months ended |
|
Change |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
Year-on-year |
NET SALES |
$ |
57,113 |
|
|
$ |
55,281 |
|
|
$ |
86,367 |
|
|
3 |
% |
|
-34 |
% |
COST OF PRODUCTS SOLD |
44,927 |
|
|
41,688 |
|
|
56,146 |
|
|
8 |
% |
|
-20 |
% |
Gross profit |
12,186 |
|
|
13,593 |
|
|
30,221 |
|
|
-10 |
% |
|
-60 |
% |
Gross profit percentage |
|
21 |
% |
|
|
25 |
% |
|
|
35 |
% |
|
|
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
7,406 |
|
|
6,911 |
|
|
9,220 |
|
|
7 |
% |
|
-20 |
% |
Selling and distribution expenses |
5,143 |
|
|
4,705 |
|
|
6,944 |
|
|
9 |
% |
|
-26 |
% |
Amortization of purchased intangible assets |
373 |
|
|
369 |
|
|
355 |
|
|
1 |
% |
|
5 |
% |
Restructuring expenses, net and asset impairments |
82 |
|
|
143 |
|
|
13,203 |
|
|
-43 |
% |
|
-99 |
% |
Total costs and expenses |
13,004 |
|
|
12,128 |
|
|
29,722 |
|
|
7 |
% |
|
-56 |
% |
OPERATING (LOSS) INCOME |
(818 |
) |
|
1,465 |
|
|
499 |
|
|
-156 |
% |
|
-264 |
% |
OTHER EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net |
(115 |
) |
|
(148 |
) |
|
(661 |
) |
|
-22 |
% |
|
-83 |
% |
Interest expense, net |
(167 |
) |
|
(170 |
) |
|
(385 |
) |
|
-2 |
% |
|
-57 |
% |
(LOSS) INCOME BEFORE INCOME
TAXES |
(1,100 |
) |
|
1,147 |
|
|
(547 |
) |
|
-196 |
% |
|
-101 |
% |
INCOME TAX (BENEFIT)
PROVISION |
(173 |
) |
|
139 |
|
|
4,741 |
|
|
-224 |
% |
|
-104 |
% |
NET (LOSS) INCOME |
(927 |
) |
|
1,008 |
|
|
(5,288 |
) |
|
-192 |
% |
|
82 |
% |
NET (LOSS) INCOME PER
SHARE |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.06 |
) |
|
$ |
0.07 |
|
|
$ |
(0.36 |
) |
|
-186 |
% |
|
83 |
% |
Diluted |
$ |
(0.06 |
) |
|
$ |
0.07 |
|
|
$ |
(0.36 |
) |
|
-186 |
% |
|
83 |
% |
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
14,917,109 |
|
|
14,820,881 |
|
|
14,640,110 |
|
|
1 |
% |
|
2 |
% |
Diluted |
14,917,109 |
|
|
14,820,881 |
|
|
14,640,110 |
|
|
1 |
% |
|
2 |
% |
DIVIDENDS DECLARED PER COMMON
SHARE |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.125 |
|
|
|
|
|
|
|
Twelve months ended |
|
Change |
|
Dec 31, 2020 |
|
Dec 31, 2019 |
|
Year-on-year |
NET SALES |
$ |
229,161 |
|
|
$ |
397,550 |
|
|
-42 |
% |
COST OF PRODUCTS SOLD |
172,308 |
|
|
252,627 |
|
|
-32 |
% |
Gross profit |
56,853 |
|
|
144,923 |
|
|
-61 |
% |
Gross profit percentage |
|
25 |
% |
|
|
36 |
% |
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
29,150 |
|
|
37,976 |
|
|
-23 |
% |
Selling and distribution expenses |
23,863 |
|
|
27,475 |
|
|
-13 |
% |
Amortization of purchased intangible assets |
1,449 |
|
|
1,544 |
|
|
-6 |
% |
Restructuring expenses, net and asset impairments |
3,387 |
|
|
19,503 |
|
|
-83 |
% |
Total costs and expenses |
57,849 |
|
|
86,498 |
|
|
-33 |
% |
OPERATING (LOSS) INCOME |
(996 |
) |
|
58,425 |
|
|
-102 |
% |
OTHER EXPENSE: |
|
|
|
|
|
Other expense, net |
(233 |
) |
|
(169 |
) |
|
38 |
% |
Interest expense, net |
(731 |
) |
|
(1,554 |
) |
|
-53 |
% |
(LOSS) INCOME BEFORE INCOME
TAXES |
(1,960 |
) |
|
56,702 |
|
|
-103 |
% |
INCOME TAX (BENEFIT)
PROVISION |
(548 |
) |
|
22,661 |
|
|
-102 |
% |
NET (LOSS) INCOME |
(1,412 |
) |
|
34,041 |
|
|
-104 |
% |
NET (LOSS) INCOME PER
SHARE |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.10 |
) |
|
$ |
2.29 |
|
|
-104 |
% |
Diluted |
$ |
(0.10 |
) |
|
$ |
2.28 |
|
|
-104 |
% |
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
14,790,296 |
|
|
|
14,579,608 |
|
|
1 |
% |
Diluted |
|
14,790,296 |
|
|
|
14,655,350 |
|
|
1 |
% |
DIVIDENDS DECLARED PER COMMON
SHARE |
$ |
0.125 |
|
|
$ |
0.29 |
|
|
|
DMC GLOBAL INC.SEGMENT STATEMENTS OF OPERATIONS(Amounts in
Thousands)(unaudited) |
|
DynaEnergetics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Change |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
Year-on-year |
Net sales |
$ |
35,330 |
|
|
$ |
34,201 |
|
|
$ |
64,604 |
|
|
3 |
% |
|
-45 |
% |
Gross profit |
8,433 |
|
|
8,194 |
|
|
24,586 |
|
|
3 |
% |
|
-66 |
% |
Gross profit percentage |
24 |
% |
|
24 |
% |
|
38 |
% |
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
2,952 |
|
|
3,176 |
|
|
3,516 |
|
|
-7 |
% |
|
-16 |
% |
Selling and distribution expenses |
2,945 |
|
|
2,445 |
|
|
4,119 |
|
|
20 |
% |
|
-29 |
% |
Amortization of purchased intangible assets |
271 |
|
|
269 |
|
|
260 |
|
|
1 |
% |
|
4 |
% |
Restructuring expenses, net and asset impairments |
— |
|
|
133 |
|
|
12,744 |
|
|
-100 |
% |
|
-100 |
% |
Operating income |
2,265 |
|
|
2,171 |
|
|
3,947 |
|
|
4 |
% |
|
-43 |
% |
Adjusted EBITDA |
$ |
4,118 |
|
|
$ |
4,170 |
|
|
$ |
18,472 |
|
|
-1 |
% |
|
-78 |
% |
|
Twelve months ended |
|
Change |
|
Dec 31, 2020 |
|
Dec 31, 2019 |
|
Year-on-year |
Net sales |
$ |
146,395 |
|
|
$ |
310,424 |
|
|
-53 |
% |
Gross profit |
38,072 |
|
|
122,703 |
|
|
-69 |
% |
Gross profit percentage |
26 |
% |
|
40 |
% |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
13,116 |
|
|
16,876 |
|
|
-22 |
% |
Selling and distribution expenses |
14,825 |
|
|
17,260 |
|
|
-14 |
% |
Amortization of purchased intangible assets |
1,059 |
|
|
1,162 |
|
|
-9 |
% |
Restructuring expenses, net and asset impairments |
2,922 |
|
|
18,624 |
|
|
-84 |
% |
Operating income |
6,150 |
|
|
68,781 |
|
|
-91 |
% |
Adjusted EBITDA |
$ |
16,335 |
|
|
$ |
94,541 |
|
|
-83 |
% |
NobelClad |
|
|
Three months ended |
|
Change |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
Year-on-year |
Net sales |
$ |
21,783 |
|
|
$ |
21,080 |
|
|
$ |
21,763 |
|
|
3 |
% |
|
— |
% |
Gross profit |
3,902 |
|
|
5,577 |
|
|
5,786 |
|
|
-30 |
% |
|
-33 |
% |
Gross profit percentage |
18 |
% |
|
26 |
% |
|
27 |
% |
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
General and administrative expenses |
739 |
|
|
878 |
|
|
1,324 |
|
|
-16 |
% |
|
-44 |
% |
Selling and distribution expenses |
2,036 |
|
|
2,106 |
|
|
2,687 |
|
|
-3 |
% |
|
-24 |
% |
Amortization of purchased intangible assets |
102 |
|
|
100 |
|
|
95 |
|
|
2 |
% |
|
7 |
% |
Restructuring expenses, net and asset impairments |
82 |
|
|
10 |
|
|
459 |
|
|
720 |
% |
|
-82 |
% |
Operating income |
943 |
|
|
2,483 |
|
|
1,221 |
|
|
-62 |
% |
|
-23 |
% |
Adjusted EBITDA |
$ |
1,935 |
|
|
$ |
3,372 |
|
|
$ |
2,390 |
|
|
-43 |
% |
|
-19 |
% |
|
|
Twelve months ended |
|
Change |
|
Dec 31, 2020 |
|
Dec 31, 2019 |
|
Year-on-year |
Net sales |
$ |
82,766 |
|
|
$ |
87,126 |
|
|
-5 |
% |
Gross profit |
19,433 |
|
|
22,840 |
|
|
-15 |
% |
Gross profit percentage |
23 |
% |
|
26 |
% |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
General and administrative expenses |
3,388 |
|
|
4,703 |
|
|
-28 |
% |
Selling and distribution expenses |
8,423 |
|
|
9,683 |
|
|
-13 |
% |
Amortization of purchased intangible assets |
390 |
|
|
382 |
|
|
2 |
% |
Restructuring expenses, net and asset impairments |
346 |
|
|
879 |
|
|
-61 |
% |
Operating income |
6,886 |
|
|
7,193 |
|
|
-4 |
% |
Adjusted EBITDA |
$ |
10,736 |
|
|
$ |
11,118 |
|
|
-3 |
% |
DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in
Thousands)(unaudited) |
|
|
|
|
|
|
|
Change |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
From year-end |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
28,187 |
|
|
$ |
24,604 |
|
|
$ |
20,353 |
|
|
15 |
% |
|
38 |
% |
Marketable securities |
25,736 |
|
|
— |
|
|
— |
|
|
n/a |
|
|
n/a |
|
Accounts receivable, net |
31,366 |
|
|
34,424 |
|
|
60,855 |
|
|
-9 |
% |
|
-48 |
% |
Inventories |
52,573 |
|
|
56,958 |
|
|
53,728 |
|
|
-8 |
% |
|
-2 |
% |
Other current assets |
5,448 |
|
|
9,831 |
|
|
9,417 |
|
|
-45 |
% |
|
-42 |
% |
|
|
|
|
|
|
|
|
|
|
Total current assets |
143,310 |
|
|
125,817 |
|
|
144,353 |
|
|
14 |
% |
|
-1 |
% |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net |
109,411 |
|
|
107,402 |
|
|
108,234 |
|
|
2 |
% |
|
1 |
% |
Purchased intangible assets,
net |
3,665 |
|
|
4,383 |
|
|
5,880 |
|
|
-16 |
% |
|
-38 |
% |
Other long-term assets |
23,259 |
|
|
21,681 |
|
|
18,954 |
|
|
7 |
% |
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
279,645 |
|
|
$ |
259,283 |
|
|
$ |
277,421 |
|
|
8 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
17,574 |
|
|
$ |
22,123 |
|
|
$ |
34,758 |
|
|
-21 |
% |
|
-49 |
% |
Contract liabilities |
4,928 |
|
|
5,195 |
|
|
2,736 |
|
|
-5 |
% |
|
80 |
% |
Dividend payable |
— |
|
|
— |
|
|
1,866 |
|
|
n/a |
|
|
-100 |
% |
Accrued income taxes |
7,279 |
|
|
7,080 |
|
|
9,651 |
|
|
3 |
% |
|
-25 |
% |
Current portion of long-term
debt |
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
— |
% |
|
— |
% |
Other current liabilities |
14,202 |
|
|
16,555 |
|
|
19,287 |
|
|
-14 |
% |
|
-26 |
% |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
47,108 |
|
|
54,078 |
|
|
71,423 |
|
|
-13 |
% |
|
-34 |
% |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
8,139 |
|
|
8,867 |
|
|
11,147 |
|
|
-8 |
% |
|
-27 |
% |
Deferred tax liabilities |
2,254 |
|
|
3,181 |
|
|
3,786 |
|
|
-29 |
% |
|
-40 |
% |
Other long-term
liabilities |
25,230 |
|
|
23,206 |
|
|
18,924 |
|
|
9 |
% |
|
33 |
% |
Stockholders' equity |
196,914 |
|
|
169,951 |
|
|
172,141 |
|
|
16 |
% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
279,645 |
|
|
$ |
259,283 |
|
|
$ |
277,421 |
|
|
8 |
% |
|
1 |
% |
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in Thousands)(unaudited) |
|
|
Three months ended |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
Net (loss) income |
$ |
(927 |
) |
|
$ |
1,008 |
|
|
$ |
(5,288 |
) |
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
2,465 |
|
|
2,451 |
|
|
2,138 |
|
Amortization of purchased intangible assets |
373 |
|
|
369 |
|
|
355 |
|
Amortization of deferred debt issuance costs |
53 |
|
|
55 |
|
|
48 |
|
Stock-based compensation |
1,521 |
|
|
1,595 |
|
|
1,296 |
|
Deferred income taxes |
(1,474 |
) |
|
521 |
|
|
2,629 |
|
Loss on disposal of property, plant and equipment |
134 |
|
|
114 |
|
|
187 |
|
Restructuring expenses, net and asset impairments |
82 |
|
|
143 |
|
|
13,203 |
|
Change in working capital, net |
6,781 |
|
|
3,970 |
|
|
14,930 |
|
Net cash provided by operating activities |
9,008 |
|
|
10,226 |
|
|
29,498 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
Investment in marketable securities |
(25,740 |
) |
|
— |
|
|
— |
|
Acquisition of property, plant and equipment |
(4,171 |
) |
|
(2,206 |
) |
|
(4,833 |
) |
Proceeds on sale of property, plant and equipment |
16 |
|
|
6 |
|
|
5 |
|
Net cash used in investing activities |
(29,895 |
) |
|
(2,200 |
) |
|
(4,828 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
Payments on revolving loans |
— |
|
|
— |
|
|
(6,130 |
) |
Payments on capital expenditure facility |
(781 |
) |
|
(782 |
) |
|
(7,781 |
) |
Payment of dividends |
— |
|
|
— |
|
|
(1,866 |
) |
Payment of deferred debt issuance costs |
(2 |
) |
|
(4 |
) |
|
— |
|
Net proceeds from issuance of common stock through at-the-market
offering program |
25,740 |
|
|
— |
|
|
— |
|
Net proceeds from issuance of common stock |
165 |
|
|
3 |
|
|
199 |
|
Treasury stock purchases |
(767 |
) |
|
(55 |
) |
|
(24 |
) |
Net cash provided by (used in) financing activities |
24,355 |
|
|
(838 |
) |
|
(15,602 |
) |
EFFECTS OF EXCHANGE RATES ON
CASH |
115 |
|
|
168 |
|
|
(898 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND CASH
EQUIVALENTS |
3,583 |
|
|
7,356 |
|
|
8,170 |
|
CASH AND CASH EQUIVALENTS,
beginning of the period |
24,604 |
|
|
17,248 |
|
|
12,183 |
|
CASH AND CASH EQUIVALENTS, end
of the period |
$ |
28,187 |
|
|
$ |
24,604 |
|
|
$ |
20,353 |
|
|
|
|
Twelve months ended |
|
Dec 31, 2020 |
|
Dec 31, 2019 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net (loss) income |
$ |
(1,412 |
) |
|
$ |
34,041 |
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
Depreciation |
9,632 |
|
|
8,316 |
|
Amortization of purchased intangible assets |
1,449 |
|
|
1,544 |
|
Amortization of deferred debt issuance costs |
207 |
|
|
178 |
|
Stock-based compensation |
5,675 |
|
|
5,204 |
|
Deferred income taxes |
(2,313 |
) |
|
4,289 |
|
Loss on disposal of property, plant and equipment |
247 |
|
|
530 |
|
Restructuring expenses, net and asset impairments |
3,387 |
|
|
19,503 |
|
Change in working capital, net |
13,490 |
|
|
(9,011 |
) |
Net cash provided by operating activities |
30,362 |
|
|
64,594 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Investment in marketable securities |
(25,740 |
) |
|
— |
|
Acquisition of property, plant and equipment |
(13,853 |
) |
|
(27,210 |
) |
Proceeds on sale of property, plant and equipment |
36 |
|
|
1,263 |
|
Net cash used in investing activities |
(39,557 |
) |
|
(25,947 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Payments on revolving loans |
— |
|
|
(17,129 |
) |
Payments on capital expenditure facility |
(3,125 |
) |
|
(10,125 |
) |
Payment of dividends |
(3,749 |
) |
|
(2,762 |
) |
Payment of deferred debt issuance costs |
(90 |
) |
|
— |
|
Net proceeds from issuance of common stock through at-the-market
offering program |
25,740 |
|
|
— |
|
Net proceeds from issuance of common stock |
431 |
|
|
557 |
|
Treasury stock purchases |
(1,890 |
) |
|
(1,103 |
) |
Net cash provided by (used in) financing activities |
17,317 |
|
|
(30,562 |
) |
EFFECTS OF EXCHANGE RATES ON
CASH |
(288 |
) |
|
(1,107 |
) |
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND CASH
EQUIVALENTS |
7,834 |
|
|
6,978 |
|
CASH AND CASH EQUIVALENTS,
beginning of the period |
20,353 |
|
|
13,375 |
|
CASH AND CASH EQUIVALENTS, end
of the period |
$ |
28,187 |
|
|
$ |
20,353 |
|
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS
TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in
Thousands, Except Per Share Data)(unaudited) |
DMC
Global Inc. |
|
EBITDA and
Adjusted EBITDA |
|
|
Three months ended |
|
Change |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
Year-on-year |
Net (loss) income |
$ |
(927 |
) |
|
$ |
1,008 |
|
|
$ |
(5,288 |
) |
|
-192 |
% |
|
470 |
% |
Interest expense, net |
167 |
|
|
170 |
|
|
385 |
|
|
-2 |
% |
|
-131 |
% |
Income tax (benefit)
provision |
(173 |
) |
|
139 |
|
|
4,741 |
|
|
-224 |
% |
|
-2,840 |
% |
Depreciation |
2,465 |
|
|
2,451 |
|
|
2,138 |
|
|
1 |
% |
|
15 |
% |
Amortization of purchased
intangible assets |
373 |
|
|
369 |
|
|
355 |
|
|
1 |
% |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
1,905 |
|
|
4,137 |
|
|
2,331 |
|
|
-54 |
% |
|
-22 |
% |
Restructuring expenses, net
and asset impairments |
82 |
|
|
143 |
|
|
13,203 |
|
|
-43 |
% |
|
-16,001 |
% |
Restructuring related accounts
receivable write off |
— |
|
|
— |
|
|
131 |
|
|
n/a |
|
|
n/a |
|
Stock-based compensation |
1,521 |
|
|
1,595 |
|
|
1,296 |
|
|
-5 |
% |
|
17 |
% |
Other expense, net |
115 |
|
|
148 |
|
|
661 |
|
|
-22 |
% |
|
-475 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
3,623 |
|
|
$ |
6,023 |
|
|
$ |
17,622 |
|
|
-40 |
% |
|
-386 |
% |
|
Twelve months ended |
|
Change |
|
Dec 31, 2020 |
|
Dec 31, 2019 |
|
Year-on-year |
Net (loss) income |
$ |
(1,412 |
) |
|
$ |
34,041 |
|
|
-104 |
% |
Interest expense, net |
731 |
|
|
1,554 |
|
|
-53 |
% |
Income tax (benefit)
provision |
(548 |
) |
|
22,661 |
|
|
-102 |
% |
Depreciation |
9,632 |
|
|
8,316 |
|
|
16 |
% |
Amortization of purchased
intangible assets |
1,449 |
|
|
1,544 |
|
|
-6 |
% |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
9,852 |
|
|
68,116 |
|
|
-86 |
% |
Restructuring expenses, net
and asset impairments |
3,387 |
|
|
19,503 |
|
|
-83 |
% |
Restructuring related
inventory write down |
— |
|
|
630 |
|
|
-100 |
% |
Restructuring related accounts
receivable write off |
— |
|
|
131 |
|
|
-100 |
% |
Stock-based compensation |
5,675 |
|
|
5,204 |
|
|
9 |
% |
Other expense, net |
233 |
|
|
169 |
|
|
38 |
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
19,147 |
|
|
$ |
93,753 |
|
|
-80 |
% |
|
Adjusted
Operating (Loss) Income |
|
Three months ended |
|
Change |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
Year-on-year |
Operating (loss) income, as reported |
$ |
(818 |
) |
|
|
$ |
1,465 |
|
|
$ |
499 |
|
|
-156 |
% |
|
194 |
% |
Restructuring programs: |
|
|
|
|
|
|
|
|
|
DynaEnergetics |
— |
|
|
|
133 |
|
|
12,745 |
|
|
-100 |
% |
|
-99 |
% |
NobelClad |
82 |
|
|
|
10 |
|
|
458 |
|
|
720 |
% |
|
-98 |
% |
Restructuring related accounts
receivable write off |
— |
|
|
|
— |
|
|
131 |
|
|
n/a |
|
|
-100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating (loss)
income |
$ |
(736 |
) |
|
|
$ |
1,608 |
|
|
$ |
13,833 |
|
|
-146 |
% |
|
-88 |
% |
|
Twelve months ended |
|
Change |
|
Dec 31, 2020 |
|
Dec 31, 2019 |
|
Year-on-year |
Operating (loss) income, as reported |
$ |
(996 |
) |
|
$ |
58,425 |
|
|
-102 |
% |
Restructuring programs: |
|
|
|
|
|
|
|
|
|
|
DynaEnergetics |
2,922 |
|
|
18,631 |
|
|
-84 |
% |
NobelClad |
346 |
|
|
872 |
|
|
-60 |
% |
Corporate |
119 |
|
|
— |
|
|
n/a |
|
Restructuring related
inventory write down |
— |
|
|
630 |
|
|
-100 |
% |
Restructuring related accounts
receivable write off |
— |
|
|
131 |
|
|
-100 |
% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
$ |
2,391 |
|
|
$ |
78,689 |
|
|
-97 |
% |
Adjusted Net
(Loss) Income and Diluted (Loss) Income per Share |
|
|
Three months ended December 31, 2020 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted weighted average shares outstanding |
|
Diluted EPS |
Net loss, as reported |
$ |
(1,100 |
) |
|
$ |
(173 |
) |
|
$ |
(927 |
) |
|
14,917,109 |
|
|
$ |
(0.06 |
) |
Restructuring programs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NobelClad |
82 |
|
|
(20 |
) |
|
102 |
|
|
14,917,109 |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss |
$ |
(1,018 |
) |
|
$ |
(193 |
) |
|
$ |
(825 |
) |
|
14,917,109 |
|
|
$ |
(0.05 |
) |
|
|
Three months ended September 30, 2020 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted weighted average shares outstanding |
|
Diluted EPS |
Net income, as reported |
$ |
1,147 |
|
|
$ |
139 |
|
|
|
$ |
1,008 |
|
|
14,820,881 |
|
|
$ |
0.07 |
|
Restructuring programs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DynaEnergetics |
133 |
|
|
(39 |
) |
|
|
172 |
|
|
14,820,881 |
|
|
0.01 |
|
NobelClad |
10 |
|
|
3 |
|
|
|
7 |
|
|
14,820,881 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
1,290 |
|
|
$ |
103 |
|
|
|
$ |
1,187 |
|
|
14,820,881 |
|
|
$ |
0.08 |
|
|
Three months ended December 31, 2019 |
|
Pre-Tax |
|
Tax |
|
Net |
|
Diluted weighted average shares outstanding |
|
Diluted EPS |
Net loss, as reported |
$ |
(547 |
) |
|
$ |
4,741 |
|
|
$ |
(5,288 |
) |
|
14,640,110 |
|
|
$ |
(0.36 |
) |
Restructuring programs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DynaEnergetics |
12,745 |
|
|
160 |
|
|
12,585 |
|
|
14,640,110 |
|
|
0.86 |
|
NobelClad |
458 |
|
|
4 |
|
|
454 |
|
|
14,640,110 |
|
|
0.03 |
|
Restructuring related accounts
receivable write off |
131 |
|
|
— |
|
|
131 |
|
|
14,640,110 |
|
|
0.01 |
|
Impact of tax valuation
allowances |
— |
|
|
(1,647 |
) |
|
1,647 |
|
|
14,640,110 |
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
12,787 |
|
|
$ |
3,258 |
|
|
$ |
9,529 |
|
|
14,640,110 |
|
|
$ |
0.65 |
|
|
Twelve months ended December 31, 2020 |
|
Pre-Tax |
|
Tax |
|
Net |
|
Diluted weighted average shares outstanding |
|
Diluted EPS |
Net loss, as reported |
$ |
(1,960 |
) |
|
$ |
(548 |
) |
|
$ |
(1,412 |
) |
|
14,790,296 |
|
|
$ |
(0.10 |
) |
Restructuring programs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DynaEnergetics |
2,922 |
|
|
863 |
|
|
2,059 |
|
|
14,790,296 |
|
|
0.14 |
|
NobelClad |
346 |
|
|
56 |
|
|
290 |
|
|
14,790,296 |
|
|
0.02 |
|
Corporate |
119 |
|
|
25 |
|
|
94 |
|
|
14,790,296 |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
1,427 |
|
|
$ |
396 |
|
|
$ |
1,031 |
|
|
14,790,296 |
|
|
$ |
0.07 |
|
|
|
Twelve months ended December 31, 2019 |
|
Pre-Tax |
|
Tax |
|
Net |
|
Diluted weighted average shares outstanding |
|
Diluted EPS |
Net income, as reported |
$ |
56,702 |
|
|
$ |
22,661 |
|
|
$ |
34,041 |
|
|
14,655,350 |
|
|
$ |
2.28 |
|
Restructuring programs: |
|
|
|
|
|
|
|
|
|
DynaEnergetics |
18,625 |
|
|
239 |
|
|
18,386 |
|
|
14,655,350 |
|
|
1.25 |
|
NobelClad |
873 |
|
|
33 |
|
|
840 |
|
|
14,655,350 |
|
|
0.06 |
|
Restructuring related
inventory write down |
630 |
|
|
109 |
|
|
521 |
|
|
14,655,350 |
|
|
0.04 |
|
Restructuring related accounts
receivable write off |
131 |
|
|
— |
|
|
131 |
|
|
14,655,350 |
|
|
0.01 |
|
Impact of tax valuation
allowances |
— |
|
|
(1,647 |
) |
|
1,647 |
|
|
14,655,350 |
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income |
$ |
76,961 |
|
|
$ |
21,395 |
|
|
$ |
55,566 |
|
|
14,655,350 |
|
|
$ |
3.75 |
|
|
Return on Invested
Capital |
|
|
|
|
|
|
|
Three months ended |
|
|
Dec 31, 2019 |
|
Mar 31, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2020 |
Operating income (loss) |
|
|
|
$ |
499 |
|
|
$ |
6,347 |
|
|
$ |
(7,990 |
) |
|
$ |
1,465 |
|
|
$ |
(818 |
) |
Income tax provision (benefit)
(1) |
|
|
|
5,227 |
|
|
2,107 |
|
|
(2,509 |
) |
|
177 |
|
|
(54 |
) |
Net operating (loss) profit
after taxes (NOPAT) |
|
|
|
(4,728 |
) |
|
4,240 |
|
|
(5,481 |
) |
|
1,288 |
|
|
(764 |
) |
Trailing Twelve Months
NOPAT |
|
|
|
|
|
|
|
|
|
(4,681 |
) |
|
(717 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of |
|
Sep 30, 2019 |
Dec 31, 2019 |
|
Mar 31, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2020 |
Allowance for doubtful
accounts |
$ |
405 |
|
$ |
967 |
|
|
$ |
2,320 |
|
|
$ |
2,882 |
|
|
$ |
2,709 |
|
|
$ |
2,605 |
|
Deferred tax assets |
(3,431 |
) |
(3,836 |
) |
|
(3,902 |
) |
|
(4,157 |
) |
|
(4,070 |
) |
|
(4,582 |
) |
Deferred tax liabilities |
1,469 |
|
3,786 |
|
|
3,692 |
|
|
2,747 |
|
|
3,181 |
|
|
2,254 |
|
Accrued income taxes |
10,427 |
|
9,651 |
|
|
8,666 |
|
|
5,727 |
|
|
7,080 |
|
|
7,279 |
|
Current portion of lease
liabilities |
1,944 |
|
1,716 |
|
|
1,618 |
|
|
1,846 |
|
|
1,804 |
|
|
1,741 |
|
Long-term portion of lease
liabilities |
9,487 |
|
9,777 |
|
|
9,454 |
|
|
10,430 |
|
|
10,155 |
|
|
10,066 |
|
Current portion of long-term
debt |
3,125 |
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
Long-term debt |
25,010 |
|
11,147 |
|
|
10,406 |
|
|
9,595 |
|
|
8,867 |
|
|
8,139 |
|
Total stockholders'
equity |
167,076 |
|
172,141 |
|
|
173,689 |
|
|
170,283 |
|
|
169,951 |
|
|
196,914 |
|
Total invested capital |
215,512 |
|
208,474 |
|
|
209,068 |
|
|
202,478 |
|
|
202,802 |
|
|
227,541 |
|
Average invested capital |
|
195,276 |
|
|
206,300 |
|
|
210,010 |
|
|
209,157 |
|
|
218,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve
Months Return on Invested Capital (ROIC) |
18 |
% |
|
12 |
% |
|
1 |
% |
|
(2% |
) |
|
— |
% |
(1) Tax
calculation for NOPAT: |
|
|
|
Three months ended |
|
Twelve months ended |
|
Three months ended |
|
Twelve months ended |
|
Dec 31, 2019 |
|
Dec 31, 2019 |
|
Mar 31, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2020 |
|
Dec 31, 2020 |
(Loss) income before income taxes |
$ |
(547 |
) |
|
$ |
56,702 |
|
|
$ |
6,224 |
|
|
$ |
(8,231 |
) |
|
$ |
1,147 |
|
|
$ |
(1,100 |
) |
|
(1,960 |
) |
Income tax provision
(benefit) |
4,741 |
|
|
22,661 |
|
|
2,069 |
|
|
(2,583 |
) |
|
139 |
|
|
(173 |
) |
|
(548 |
) |
Effective tax rate |
(866.7 |
)% |
|
40.0 |
% |
|
33.2 |
% |
|
31.4 |
% |
|
12.1 |
% |
|
15.7 |
% |
|
28.0 |
% |
DynaEnergetics |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
Three months ended |
|
Change |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
Year-on-year |
Operating income, as reported |
$ |
2,265 |
|
|
$ |
2,171 |
|
|
$ |
3,947 |
|
|
4 |
% |
|
-43 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring expenses, net and asset impairments |
— |
|
|
133 |
|
|
12,744 |
|
|
-100 |
% |
|
-100 |
% |
Restructuring related accounts receivable write off |
— |
|
|
— |
|
|
131 |
|
|
n/a |
|
|
-100 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
2,265 |
|
|
2,304 |
|
|
16,822 |
|
|
-2 |
% |
|
-87 |
% |
Depreciation |
1,582 |
|
|
1,597 |
|
|
1,390 |
|
|
-1 |
% |
|
14 |
% |
Amortization of purchased intangible assets |
271 |
|
|
269 |
|
|
260 |
|
|
1 |
% |
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
4,118 |
|
|
$ |
4,170 |
|
|
$ |
18,472 |
|
|
-1 |
% |
|
-78 |
% |
|
Twelve months ended |
|
Change |
|
Dec 31, 2020 |
|
Dec 31, 2019 |
|
Year-on-year |
Operating income, as reported |
$ |
6,150 |
|
|
$ |
68,781 |
|
|
-91 |
% |
Adjustments: |
|
|
|
|
|
Restructuring expenses, net and asset impairments |
2,922 |
|
|
18,624 |
|
|
-84 |
% |
Restructuring related inventory write down |
— |
|
|
630 |
|
|
-100 |
% |
Restructuring related accounts receivable write off |
— |
|
|
131 |
|
|
-100 |
% |
|
|
|
|
|
|
Adjusted operating income |
9,072 |
|
|
88,166 |
|
|
-90 |
% |
Depreciation |
6,204 |
|
|
5,213 |
|
|
19 |
% |
Amortization of purchased intangible assets |
1,059 |
|
|
1,162 |
|
|
-9 |
% |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
16,335 |
|
|
$ |
94,541 |
|
|
-83 |
% |
NobelClad |
|
Adjusted
EBITDA |
|
|
|
|
|
Three months ended |
|
Change |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
Year-on-year |
Operating income, as reported |
$ |
943 |
|
|
$ |
2,483 |
|
|
$ |
1,221 |
|
|
-62 |
% |
|
-23 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring expenses, net and asset impairments |
82 |
|
|
10 |
|
|
459 |
|
|
720 |
% |
|
-82 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
1,025 |
|
|
2,493 |
|
|
1,680 |
|
|
-59 |
% |
|
-39 |
% |
Depreciation |
808 |
|
|
779 |
|
|
615 |
|
|
4 |
% |
|
31 |
% |
Amortization of purchased intangible assets |
102 |
|
|
100 |
|
|
95 |
|
|
2 |
% |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
1,935 |
|
|
$ |
3,372 |
|
|
$ |
2,390 |
|
|
-43 |
% |
|
-19 |
% |
|
Twelve months ended |
|
Change |
|
Dec 31, 2020 |
|
Dec 31, 2019 |
|
Year-on-year |
Operating income, as reported |
$ |
6,886 |
|
|
$ |
7,193 |
|
|
-4 |
% |
Adjustments: |
|
|
|
|
|
Restructuring expenses, net and asset impairments |
346 |
|
|
879 |
|
|
-61 |
% |
|
|
|
|
|
|
Adjusted operating income |
7,232 |
|
|
8,072 |
|
|
-10 |
% |
Depreciation |
3,114 |
|
|
2,664 |
|
|
17 |
% |
Amortization of purchased intangible assets |
390 |
|
|
382 |
|
|
2 |
% |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
10,736 |
|
|
$ |
11,118 |
|
|
-3 |
% |
|
|
|
|
|
|
|
|
|
|
|
CONTACT:Geoff High, Vice
President of Investor Relations303-604-3924
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