DMC Global Inc. (Nasdaq: BOOM) today reported financial results for
its second quarter ended June 30, 2019.
Consolidated sales were a record $111.0 million,
up 37% versus the second quarter of 2018 and up 11% sequentially.
The growth was driven by stronger than forecasted sales at both
DynaEnergetics, DMC’s oilfield products business, and NobelClad,
the Company’s composite metals business.
Second quarter gross margin was 38% versus 33%
in the 2018 second quarter and 36% in the 2019 first quarter. The
increase was principally due to a more favorable product mix and
improved manufacturing and supply chain efficiencies at
DynaEnergetics.
Operating income was $24.7 million, up 141% from
$10.2 million in the 2018 second quarter. Net income was $17.2
million, or $1.15 per diluted share, versus $6.4 million, or $0.43
per diluted share, in last year’s second quarter.
Adjusted operating income* was $25.0 million,
and excludes $324,000 in restructuring expenses at NobelClad.
Adjusted net income was $17.6 million, or $1.17 per diluted
share.
Second quarter adjusted EBITDA was $29.0
million, up 108% from $13.9 million in the 2018 second quarter, and
a 21% sequential increase versus $23.9 million reported in this
year’s first quarter.
Net debt* (total debt less cash and cash
equivalents) at June 30, 2019, was $21.0 million, down from
$28.5 million at March 31, 2019 and $28.0 million at December
31, 2018.
DynaEnergeticsSecond quarter sales at
DynaEnergetics were a record $88.6 million, up 50% from the 2018
second quarter and 11% sequentially. Gross margin was 41%, up from
37% in last year’s second quarter and 39% in the first quarter.
Operating income was $26.8 million versus $12.2 million in the
comparable year-ago quarter. Adjusted EBITDA was $28.5 million
versus $13.8 million in last year’s second quarter.
NobelCladNobelClad reported second-quarter sales
of $22.3 million, up 1% versus the 2018 second quarter and up 10%
sequentially. Gross margin was 26%, up from 23% in the 2018
second quarter and flat compared to this year’s first quarter.
Operating income was $1.9 million versus $1.7 million in the
year-ago second quarter. Excluding restructuring charges, adjusted
operating income was $2.2 million versus $1.9 million in the
year-ago second quarter. Adjusted EBITDA was $3.1 million versus
$2.7 million in last year’s second quarter.
NobelClad’s trailing 12-month book-to-bill ratio
at the end of the second quarter was 1.01. Order backlog was $38.8
million versus $40.5 million at the end of the first quarter.
Six-month resultsConsolidated
sales for the six-month period were $211.1 million,
up 42% versus the same period a year ago. Gross
margin was 37% versus 33% in the 2018 six-month
period. Operating income was $45.1 million versus $15.5
million in last year’s six-month period, which included $3.1
million in accrued anti-dumping penalties. Net income for the
period was $32.4 million, or $2.17 per diluted
share, versus $10.3 million, or $0.69 per diluted share,
in the same period a year ago.
Six-month adjusted operating income was $45.5
million and adjusted net income was $32.8 million, or $2.20 per
diluted share. Adjusted EBITDA was $52.9
million versus $25.6 million in last year’s
six-month period.
DynaEnergeticsSix-month sales at DynaEnergetics
were $168.5 million, up 56% from $108.0
million, in last year’s six-month period. Operating income
was $49.9 million versus $20.9 million in the
comparable year-ago period. Adjusted EBITDA was $53.0
million versus $27.2 million in last year’s
six-month period.
NobelCladNobelClad reported six-month sales
of $42.6 million, up 6% from $40.2
million at the six-month mark last year. Operating income
was $3.8 million versus $1.7 million in the
comparable year-ago period, while adjusted EBITDA was $5.8
million versus $3.7 million.
Management Commentary“Both
DynaEnergetics and NobelClad exceeded their second quarter
financial forecasts and continued to execute well on their 2019
business plans,” said Kevin Longe, president and CEO.
“DynaEnergetics further extended its product offering and added
several new customers for its intrinsically safe initiating systems
(IS2™) and its family of DynaStage® (DS) Factory-Assembled,
Performance-Assured™ perforating systems.
“The safety features of the IS2 product family
remain a critical point of differentiation versus other detonating
components in the market,” Longe added. “Our
solid-state IS2 systems do not contain internal wiring and require
a digital signal from a control panel at surface to fire, making
them immune to stray voltage and current. Although several
companies have incorporated addressable switches into their
perforating guns, we believe these devices are universally wired to
resistorized detonators, which are more sensitive to electrical
interference and increased failure. This distinction has
growing relevance as our industry addresses increased
electromagnetic interference, including from electric frac fleets
utilizing generators that can produce more than 30 megawatts of
power. We believe prudent operators will ultimately require
their service companies to deploy solid-state integrated initiating
systems that have been proven to be intrinsically safe.”
Longe said, “DynaEnergetics’ broad portfolio of
IS2 products, performance charges, and packaging options enable
customers to select from thousands of configurations of DS
Factory-Assembled, Performance-Assured perforating systems.”
DynaEnergetics introduced two new models to its
DS product family during the second quarter. DS Trinity™ 3.5
is currently in field trials and is a smaller-diameter version of
the DS Trinity™ 4.0, which was introduced in the first
quarter. DS Trinity 3.5 features three charges on a single
plane within a 7-inch long carrier, and does not require detonating
cord or a connecting sub. A second new system, DS NLine™, enables
the operator to align at surface the charges of multiple guns, and
then orient the gun string downhole to fire in a pre-determined
direction.
Longe continued, “The NobelClad team delivered
another quarter of strong contribution margins and made additional
progress in its effort to expand NobelClad’s composite-metal
solutions and end-market applications.
“I am very pleased with the progress DMC and its
businesses made during the first half of 2019. In addition
to our commercial and operational achievements, we reported a
12-month return on invested capital of 30%. I would like to
thank our customers for their continued support, and our employees
around the world for their innovative thinking, outstanding
execution, and dedication to DMC’s success.”
GuidanceMichael Kuta, CFO, said
third quarter sales are expected in a range of $96 million to $102
million versus the $87.9 million in the 2018 third quarter. At the
business level, DynaEnergetics is expected to report sales in a
range of $76 million to $80 million versus $66.3 million reported
in last year’s third quarter. NobelClad’s sales are expected to be
in the range of $20 million to $22 million versus $21.6 million
reported in the 2018 third quarter.
Consolidated gross margin is expected to be in
the 35.5% to 36.5% range versus 34% reported in the year-ago third
quarter. The sequential decline versus the 38% reported in this
year’s second quarter reflects unfavorable fixed manufacturing
overhead absorption from lower sales at DynaEnergetics and a less
favorable project mix in the second half at NobelClad.
Third quarter selling, general and
administrative (SG&A) expense is expected to be approximately
$17.5 million versus SG&A of $15.1 million in last year’s third
quarter. Amortization expense is expected to be approximately
$400,000 versus $769,000 in the third quarter last year, while
interest expense is expected to be approximately $400,000.
Adjusted EBITDA is expected in a range of $20
million to $24 million versus $17.2 million in last year’s third
quarter.
Kuta said due to widespread industry uncertainty
regarding near-term well completion activity, management is
lowering its prior full-year top-line sales forecasts, but is
maintaining its prior forecast for adjusted EBITDA and is
increasing the lower end of its range for anticipated adjusted net
income per share. Sales are now expected in a range of $400 million
to $415 million versus the $326.4 million reported in 2018. Sales
at DynaEnergetics are expected in a range of $315 million to $325
million versus the $237.4 million reported in 2018, while
NobelClad’s sales are expected to be in a range of $85 million to
$90 million versus the $89.0 million in 2018 and up from a prior
forecast of $80 million to $85 million. Gross margin is expected in
a range of 36% to 37% versus the 34% reported in 2018, and the
prior forecast of 35%. The increase reflects the Company’s
continued focus on enhancing manufacturing efficiencies and
achieving product margins that reflect the value of its
technologies.
Kuta said full-year SG&A should be
approximately $64 million to $67 million versus the $61.2 million
reported in 2018. The increase relates to higher expected spending
on sales and marketing programs at both DynaEnergetics and
NobelClad. Anticipated amortization expense remains at
approximately $1.6 million versus the $2.9 million reported in
2018.
Anticipated interest expense in 2019 is expected
to be approximately $1.5 million, and the expected effective tax
rate for 2019 is still approximately 30%, which reflects a higher
expected rate in the second half of the year primarily due to
geographic sales mix.
Adjusted EBITDA is expected in a range of $90
million to $100 million, up from 2018 adjusted EBITDA of $59.6
million. Full-year adjusted net income per share is expected in a
range of $3.55 to $3.70 versus the $2.07 reported in fiscal
2018.
Anticipated capital expenditures in 2019 are
expected to be in the range of $30 million.
Conference call
informationManagement will hold a conference call to
discuss these results today at 5:00 p.m. Eastern (3:00 p.m.
Mountain). The call is available live via the Internet at:
https://www.investornetwork.com/event/presentation/50089, or by
dialing 877-407-0778 (201-689-8565 for international callers). No
passcode is necessary. 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
August 1, 2019, by calling 877-481-4010 (919-882-2331 for
international callers) and entering the Conference ID #50089.
*Use of Non-GAAP Financial Measures
Adjusted 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 debt is defined as total debt less cash and cash
equivalents. 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 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 DMCBased in Broomfield,
Colorado, DMC operates in two sectors: oilfield products and
services, and industrial infrastructure. The oilfield products and
services sector is served by DynaEnergetics, an international
developer, manufacturer and marketer of advanced explosive systems
used to perforate oil and gas wells. The industrial
infrastructure sector is served by DMC’s NobelClad business, the
world’s largest manufacturer of explosion-welded clad metal plates,
which are used to fabricate capital equipment utilized within
various process industries and other industrial sectors. 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 third
quarter and full-year 2019 guidance on sales and gross margin,
SG&A, litigation expense, amortization expenses, earnings per
share, adjusted EBITDA, interest expense, and our effective tax
rate, and expectations regarding the development of industry
preferences for solid state integrated initiating systems. 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
execute and capitalize upon growth opportunities; the success of
DynaEnergetics’ product and technology development initiatives;
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;
the availability and cost of funds; and general economic
conditions, both domestic and foreign, impacting our business and
the business of 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,
2018. 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 |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Jun 30, 2018 |
|
Sequential |
|
Year-on-year |
|
NET SALES |
$ |
110,954 |
|
|
$ |
100,135 |
|
|
$ |
80,915 |
|
|
11 |
% |
|
37 |
% |
| COST OF PRODUCTS SOLD |
68,881 |
|
|
63,730 |
|
|
54,140 |
|
|
8 |
% |
|
27 |
% |
|
Gross profit |
42,073 |
|
|
36,405 |
|
|
26,775 |
|
|
16 |
% |
|
57 |
% |
|
Gross profit percentage |
37.9 |
% |
|
36.4 |
% |
|
33.1 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
9,460 |
|
|
9,168 |
|
|
9,743 |
|
|
3 |
% |
|
-3 |
% |
|
Selling and distribution expenses |
7,239 |
|
|
6,309 |
|
|
5,795 |
|
|
15 |
% |
|
25 |
% |
|
Amortization of purchased intangible assets |
397 |
|
|
398 |
|
|
791 |
|
|
— |
% |
|
-50 |
% |
|
Restructuring expenses, net |
324 |
|
|
78 |
|
|
217 |
|
|
315 |
% |
|
49 |
% |
|
Total costs and expenses |
17,420 |
|
|
15,953 |
|
|
16,546 |
|
|
9 |
% |
|
5 |
% |
| OPERATING INCOME |
24,653 |
|
|
20,452 |
|
|
10,229 |
|
|
21 |
% |
|
141 |
% |
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
343 |
|
|
(21 |
) |
|
(327 |
) |
|
1,733 |
% |
|
205 |
% |
|
Interest expense, net |
(409 |
) |
|
(373 |
) |
|
(136 |
) |
|
-10 |
% |
|
-201 |
% |
| INCOME BEFORE INCOME
TAXES |
24,587 |
|
|
20,058 |
|
|
9,766 |
|
|
23 |
% |
|
152 |
% |
| INCOME TAX PROVISION |
7,343 |
|
|
4,888 |
|
|
3,394 |
|
|
50 |
% |
|
116 |
% |
| NET INCOME |
17,244 |
|
|
15,170 |
|
|
6,372 |
|
|
14 |
% |
|
171 |
% |
| NET INCOME PER SHARE |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.17 |
|
|
$ |
1.02 |
|
|
$ |
0.43 |
|
|
15 |
% |
|
172 |
% |
|
Diluted |
$ |
1.15 |
|
|
$ |
1.01 |
|
|
$ |
0.43 |
|
|
14 |
% |
|
167 |
% |
| WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
Basic |
14,647,019 |
|
|
14,606,052 |
|
|
14,534,016 |
|
|
— |
% |
|
1 |
% |
|
Diluted |
14,899,987 |
|
|
14,671,689 |
|
|
14,534,016 |
|
|
2 |
% |
|
3 |
% |
| DIVIDENDS DECLARED PER COMMON
SHARE |
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS(Amounts in Thousands, Except Share and Per Share
Data)(unaudited)
| |
|
|
|
| |
Six months ended |
|
Change |
| |
Jun 30, 2019 |
|
Jun 30, 2018 |
|
Year-on-year |
|
NET SALES |
$ |
211,089 |
|
|
$ |
148,228 |
|
|
42 |
% |
| COST OF PRODUCTS SOLD |
132,611 |
|
|
98,700 |
|
|
34 |
% |
|
Gross profit |
78,478 |
|
|
49,528 |
|
|
58 |
% |
|
Gross profit percentage |
37.2 |
% |
|
33.4 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
18,628 |
|
|
17,920 |
|
|
4 |
% |
|
Selling and distribution expenses |
13,548 |
|
|
11,007 |
|
|
23 |
% |
|
Amortization of purchased intangible assets |
795 |
|
|
1,596 |
|
|
-50 |
% |
|
Restructuring expenses, net |
402 |
|
|
361 |
|
|
11 |
% |
|
Anti-dumping duty penalties |
— |
|
|
3,103 |
|
|
-100 |
% |
|
Total costs and expenses |
33,373 |
|
|
33,987 |
|
|
-2 |
% |
| OPERATING INCOME |
45,105 |
|
|
15,541 |
|
|
190 |
% |
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
Other income (expense), net |
322 |
|
|
(704 |
) |
|
146 |
% |
|
Interest expense, net |
(782 |
) |
|
(601 |
) |
|
-30 |
% |
| INCOME BEFORE INCOME
TAXES |
44,645 |
|
|
14,236 |
|
|
214 |
% |
| INCOME TAX PROVISION |
12,231 |
|
|
3,944 |
|
|
210 |
% |
| NET INCOME |
32,414 |
|
|
10,292 |
|
|
215 |
% |
| NET INCOME PER SHARE |
|
|
|
|
|
|
Basic |
$ |
2.20 |
|
|
$ |
0.69 |
|
|
219 |
% |
|
Diluted |
$ |
2.17 |
|
|
$ |
0.69 |
|
|
214 |
% |
| WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: |
|
|
|
|
|
|
Basic |
14,624,718 |
|
|
14,491,569 |
|
|
1 |
% |
|
Diluted |
14,849,816 |
|
|
14,491,569 |
|
|
2 |
% |
| DIVIDENDS DECLARED PER COMMON
SHARE |
$ |
0.04 |
|
|
$ |
0.04 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.SEGMENT STATEMENTS OF
OPERATIONS(Amounts in Thousands)(unaudited)
DynaEnergetics
| |
|
|
|
| |
Three months ended |
|
Change |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Jun 30, 2018 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
88,628 |
|
|
$ |
79,836 |
|
|
$ |
58,899 |
|
|
11 |
% |
|
50 |
% |
| Gross profit |
36,341 |
|
|
31,232 |
|
|
21,748 |
|
|
16 |
% |
|
67 |
% |
| Gross profit percentage |
41.0 |
% |
|
39.1 |
% |
|
36.9 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
4,591 |
|
|
3,722 |
|
|
5,120 |
|
|
23 |
% |
|
-10 |
% |
|
Selling and distribution expenses |
4,637 |
|
|
4,099 |
|
|
3,711 |
|
|
13 |
% |
|
25 |
% |
|
Amortization of purchased intangible assets |
300 |
|
|
301 |
|
|
689 |
|
|
— |
% |
|
-56 |
% |
| Operating income |
26,813 |
|
|
23,110 |
|
|
12,228 |
|
|
16 |
% |
|
119 |
% |
| Adjusted EBITDA |
$ |
28,532 |
|
|
$ |
24,509 |
|
|
$ |
13,803 |
|
|
16 |
% |
|
107 |
% |
| |
Six months ended |
|
Change |
| |
Jun 30, 2019 |
|
Jun 30, 2018 |
|
Year-on-year |
|
Net sales |
$ |
168,464 |
|
|
$ |
108,020 |
|
|
56 |
% |
| Gross profit |
67,573 |
|
|
41,375 |
|
|
63 |
% |
| Gross profit percentage |
40.1 |
% |
|
38.3 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
8,313 |
|
|
8,964 |
|
|
-7 |
% |
|
Selling and distribution expenses |
8,736 |
|
|
6,971 |
|
|
25 |
% |
|
Amortization of purchased intangible assets |
601 |
|
|
1,389 |
|
|
-57 |
% |
|
Anti-dumping duty penalties |
— |
|
|
3,103 |
|
|
-100 |
% |
| Operating income |
49,923 |
|
|
20,948 |
|
|
138 |
% |
| Adjusted EBITDA |
$ |
53,041 |
|
|
$ |
27,185 |
|
|
95 |
% |
| |
|
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.SEGMENT STATEMENTS OF
OPERATIONS(Amounts in Thousands)(unaudited)
NobelClad
| |
|
|
|
| |
Three months ended |
|
Change |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Jun 30, 2018 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
22,326 |
|
|
$ |
20,299 |
|
|
$ |
22,016 |
|
|
10 |
% |
|
1 |
% |
| Gross profit |
5,884 |
|
|
5,360 |
|
|
5,120 |
|
|
10 |
% |
|
15 |
% |
| Gross profit percentage |
26.4 |
% |
|
26.4 |
% |
|
23.3 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
1,102 |
|
|
1,244 |
|
|
1,135 |
|
|
-11 |
% |
|
-3 |
% |
|
Selling and distribution expenses |
2,438 |
|
|
2,111 |
|
|
1,963 |
|
|
15 |
% |
|
24 |
% |
|
Amortization of purchased intangible assets |
97 |
|
|
97 |
|
|
102 |
|
|
— |
% |
|
-5 |
% |
|
Restructuring expenses, net |
324 |
|
|
78 |
|
|
217 |
|
|
315 |
% |
|
49 |
% |
| Operating income |
1,923 |
|
|
1,830 |
|
|
1,703 |
|
|
5 |
% |
|
13 |
% |
| Adjusted EBITDA |
$ |
3,082 |
|
|
$ |
2,705 |
|
|
$ |
2,737 |
|
|
14 |
% |
|
13 |
% |
| |
Six months ended |
|
Change |
| |
Jun 30, 2019 |
|
Jun 30, 2018 |
|
Year-on-year |
|
Net sales |
$ |
42,625 |
|
|
$ |
40,208 |
|
|
6 |
% |
| Gross profit |
11,244 |
|
|
8,312 |
|
|
35 |
% |
| Gross profit percentage |
26.4 |
% |
|
20.7 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
2,346 |
|
|
2,215 |
|
|
6 |
% |
|
Selling and distribution expenses |
4,549 |
|
|
3,838 |
|
|
19 |
% |
|
Amortization of purchased intangible assets |
194 |
|
|
207 |
|
|
-6 |
% |
|
Restructuring expenses, net |
402 |
|
|
361 |
|
|
11 |
% |
| Operating income |
3,753 |
|
|
1,691 |
|
|
122 |
% |
| Adjusted EBITDA |
$ |
5,787 |
|
|
$ |
3,685 |
|
|
57 |
% |
| |
|
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in Thousands)
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Change |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Dec 31, 2018 |
|
Sequential |
|
From year-end |
| |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
14,881 |
|
|
$ |
14,874 |
|
|
$ |
13,375 |
|
|
— |
% |
|
11 |
% |
|
Accounts receivable, net |
76,800 |
|
|
73,252 |
|
|
59,709 |
|
|
5 |
% |
|
29 |
% |
|
Inventory, net |
59,980 |
|
|
50,851 |
|
|
51,074 |
|
|
18 |
% |
|
17 |
% |
|
Other current assets |
6,650 |
|
|
7,015 |
|
|
8,058 |
|
|
-5 |
% |
|
-17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
158,311 |
|
|
145,992 |
|
|
132,216 |
|
|
8 |
% |
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Property, plant and equipment,
net |
105,232 |
|
|
99,911 |
|
|
95,140 |
|
|
5 |
% |
|
11 |
% |
| Purchased intangible assets,
net |
7,375 |
|
|
7,882 |
|
|
8,589 |
|
|
-6 |
% |
|
-14 |
% |
| Other long-term assets |
14,266 |
|
|
12,321 |
|
|
4,473 |
|
|
16 |
% |
|
219 |
% |
| |
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
285,184 |
|
|
$ |
266,106 |
|
|
$ |
240,418 |
|
|
7 |
% |
|
19 |
% |
| |
|
|
|
|
|
|
|
|
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Accounts payable |
$ |
36,179 |
|
|
$ |
29,747 |
|
|
$ |
24,243 |
|
|
22 |
% |
|
49 |
% |
| Accrued anti-dumping
penalties |
— |
|
|
8,000 |
|
|
8,000 |
|
|
-100 |
% |
|
-100 |
% |
| Contract liabilities |
2,076 |
|
|
2,490 |
|
|
1,140 |
|
|
-17 |
% |
|
82 |
% |
| Dividend payable |
299 |
|
|
299 |
|
|
295 |
|
|
— |
% |
|
1 |
% |
| Accrued income taxes |
9,419 |
|
|
5,367 |
|
|
9,545 |
|
|
75 |
% |
|
-1 |
% |
| Current portion of long-term
debt |
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
— |
% |
|
— |
% |
| Other current liabilities |
19,234 |
|
|
17,895 |
|
|
18,217 |
|
|
7 |
% |
|
6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
70,332 |
|
|
66,923 |
|
|
64,565 |
|
|
5 |
% |
|
9 |
% |
| |
|
|
|
|
|
|
|
|
|
| Long-term debt |
32,744 |
|
|
40,239 |
|
|
38,230 |
|
|
-19 |
% |
|
-14 |
% |
| Deferred tax liabilities |
458 |
|
|
880 |
|
|
379 |
|
|
-48 |
% |
|
21 |
% |
| Other long-term
liabilities |
18,149 |
|
|
9,153 |
|
|
2,958 |
|
|
98 |
% |
|
514 |
% |
| Stockholders’ equity |
163,501 |
|
|
148,911 |
|
|
134,286 |
|
|
10 |
% |
|
22 |
% |
| |
|
|
|
|
|
|
|
|
|
| Total liabilities and
stockholders’ equity |
$ |
285,184 |
|
|
$ |
266,106 |
|
|
$ |
240,418 |
|
|
7 |
% |
|
19 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Amounts in Thousands)(unaudited)
| |
|
| |
Three months ended |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Jun 30, 2018 |
| CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
Net income |
$ |
17,244 |
|
|
$ |
15,170 |
|
|
$ |
6,372 |
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
|
|
Depreciation |
2,157 |
|
|
1,798 |
|
|
1,601 |
|
|
Amortization of purchased intangible assets |
397 |
|
|
398 |
|
|
791 |
|
|
Amortization of deferred debt issuance costs |
36 |
|
|
47 |
|
|
34 |
|
|
Stock-based compensation |
1,495 |
|
|
1,171 |
|
|
1,084 |
|
|
Deferred income taxes |
81 |
|
|
343 |
|
|
341 |
|
|
Loss on disposal of property, plant and equipment |
317 |
|
|
— |
|
|
26 |
|
|
Restructuring expenses |
324 |
|
|
78 |
|
|
217 |
|
|
Change in working capital, net |
(5,746 |
) |
|
(12,008 |
) |
|
(9,067 |
) |
|
Net cash provided by operating activities |
16,305 |
|
|
6,997 |
|
|
1,399 |
|
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
Acquisition of property, plant and equipment |
(9,682 |
) |
|
(6,601 |
) |
|
(10,899 |
) |
|
Proceeds on sale of property, plant and equipment |
1,054 |
|
|
204 |
|
|
— |
|
|
Net cash used in investing activities |
(8,628 |
) |
|
(6,397 |
) |
|
(10,899 |
) |
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
(Repayments) borrowings on revolving loans, net |
(6,749 |
) |
|
2,750 |
|
|
(3,076 |
) |
|
(Repayments) borrowings on capital expenditure facility |
(781 |
) |
|
(781 |
) |
|
8,525 |
|
|
Payment of dividends |
(300 |
) |
|
(298 |
) |
|
(298 |
) |
|
Payment of deferred debt issuance costs |
— |
|
|
— |
|
|
(131 |
) |
|
Net proceeds from issuance of common stock |
358 |
|
|
— |
|
|
230 |
|
|
Treasury stock purchases |
(103 |
) |
|
(853 |
) |
|
(40 |
) |
|
Net cash provided by (used in) financing activities |
(7,575 |
) |
|
818 |
|
|
5,210 |
|
| EFFECTS OF EXCHANGE RATES ON
CASH |
(95 |
) |
|
81 |
|
|
151 |
|
| |
|
|
|
|
|
| NET INCREASE IN CASH AND CASH
EQUIVALENTS |
7 |
|
|
1,499 |
|
|
(4,139 |
) |
| CASH AND CASH EQUIVALENTS,
beginning of the period |
14,874 |
|
|
13,375 |
|
|
10,768 |
|
| CASH AND CASH EQUIVALENTS, end
of the period |
$ |
14,881 |
|
|
$ |
14,874 |
|
|
$ |
6,629 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Amounts in Thousands)(unaudited)
| |
|
| |
Six months ended |
| |
Jun 30, 2019 |
|
Jun 30, 2018 |
| CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
Net income |
$ |
32,414 |
|
|
$ |
10,292 |
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
Depreciation |
3,955 |
|
|
3,171 |
|
|
Amortization of purchased intangible assets |
795 |
|
|
1,596 |
|
|
Amortization of deferred debt issuance costs |
83 |
|
|
224 |
|
|
Stock-based compensation |
2,666 |
|
|
1,792 |
|
|
Deferred income taxes |
424 |
|
|
33 |
|
|
Loss on disposal of property, plant and equipment |
317 |
|
|
26 |
|
|
Restructuring expenses |
402 |
|
|
361 |
|
|
Transition tax liability |
— |
|
|
(268 |
) |
|
Change in working capital, net |
(17,754 |
) |
|
(18,806 |
) |
|
Net cash provided by (used in) operating activities |
23,302 |
|
|
(1,579 |
) |
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
Acquisition of property, plant and equipment |
(16,283 |
) |
|
(16,201 |
) |
|
Proceeds on sale of property, plant and equipment |
1,258 |
|
|
— |
|
|
Net cash used in investing activities |
(15,025 |
) |
|
(16,201 |
) |
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
(Repayments) borrowings on revolving loans, net |
(3,999 |
) |
|
4,822 |
|
|
(Repayments) borrowings on capital expenditure facility |
(1,562 |
) |
|
11,803 |
|
|
Payment of dividends |
(598 |
) |
|
(593 |
) |
|
Payment of deferred debt issuance costs |
— |
|
|
(131 |
) |
|
Net proceeds from issuance of common stock |
358 |
|
|
230 |
|
|
Treasury stock purchases |
(956 |
) |
|
(383 |
) |
|
Net cash provided by (used in) financing activities |
(6,757 |
) |
|
15,748 |
|
| EFFECTS OF EXCHANGE RATES ON
CASH |
(14 |
) |
|
(322 |
) |
| |
|
|
|
| NET INCREASE IN CASH AND CASH
EQUIVALENTS |
1,506 |
|
|
(2,354 |
) |
| CASH AND CASH EQUIVALENTS,
beginning of the period |
13,375 |
|
|
8,983 |
|
| CASH AND CASH EQUIVALENTS, end
of the period |
$ |
14,881 |
|
|
$ |
6,629 |
|
| |
|
|
|
|
|
|
|
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
DMC Global
EBITDA and Adjusted EBITDA
| |
Three months ended |
|
Change |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Jun 30, 2018 |
|
Sequential |
|
Year-on-year |
|
Net income |
$ |
17,244 |
|
|
$ |
15,170 |
|
|
$ |
6,372 |
|
|
14 |
% |
|
171 |
% |
| Interest expense, net |
409 |
|
|
373 |
|
|
136 |
|
|
10 |
% |
|
201 |
% |
| Income tax provision |
7,343 |
|
|
4,888 |
|
|
3,394 |
|
|
50 |
% |
|
116 |
% |
| Depreciation |
2,157 |
|
|
1,798 |
|
|
1,601 |
|
|
20 |
% |
|
35 |
% |
| Amortization of purchased
intangible assets |
397 |
|
|
398 |
|
|
791 |
|
|
— |
% |
|
-50 |
% |
| |
|
|
|
|
|
|
|
|
|
| EBITDA |
27,550 |
|
|
22,627 |
|
|
12,294 |
|
|
22 |
% |
|
124 |
% |
| Restructuring expenses,
net |
324 |
|
|
78 |
|
|
217 |
|
|
315 |
% |
|
49 |
% |
| Stock-based compensation |
1,495 |
|
|
1,171 |
|
|
1,084 |
|
|
28 |
% |
|
38 |
% |
| Other (income) expense,
net |
(343 |
) |
|
21 |
|
|
327 |
|
|
-1,733 |
% |
|
-205 |
% |
| Adjusted EBITDA |
$ |
29,026 |
|
|
$ |
23,897 |
|
|
$ |
13,922 |
|
|
21 |
% |
|
108 |
% |
| |
Six months ended |
|
|
| |
Jun 30, 2019 |
|
Jun 30, 2018 |
|
Year-on-year |
|
Net income |
$ |
32,414 |
|
|
$ |
10,292 |
|
|
215 |
% |
| Interest expense, net |
782 |
|
|
601 |
|
|
30 |
% |
| Income tax provision |
12,231 |
|
|
3,944 |
|
|
210 |
% |
| Depreciation |
3,955 |
|
|
3,171 |
|
|
25 |
% |
| Amortization of purchased
intangible assets |
795 |
|
|
1,596 |
|
|
-50 |
% |
| |
|
|
|
|
|
| EBITDA |
50,177 |
|
|
19,604 |
|
|
156 |
% |
| Restructuring expenses,
net |
402 |
|
|
361 |
|
|
11 |
% |
| Accrued anti-dumping
penalties |
— |
|
|
3,103 |
|
|
-100 |
% |
| Stock-based compensation |
2,666 |
|
|
1,792 |
|
|
49 |
% |
| Other (income) expense,
net |
(322 |
) |
|
704 |
|
|
-146 |
% |
| Adjusted EBITDA |
$ |
52,923 |
|
|
$ |
25,564 |
|
|
107 |
% |
Adjusted operating income
| |
Three months ended |
|
Change |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Jun 30, 2018 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
24,653 |
|
|
$ |
20,452 |
|
|
$ |
10,229 |
|
|
21 |
% |
|
141 |
% |
| Restructuring programs: |
|
|
|
|
|
|
|
|
|
|
NobelClad |
324 |
|
|
78 |
|
|
217 |
|
|
315 |
% |
|
49 |
% |
| Adjusted operating income |
$ |
24,977 |
|
|
$ |
20,530 |
|
|
$ |
10,446 |
|
|
22 |
% |
|
139 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
| |
|
|
|
| |
Six months ended |
|
|
| |
Jun 30, 2019 |
|
Jun 30, 2018 |
|
Year-on-year |
|
Operating income, as reported |
$ |
45,105 |
|
|
$ |
15,541 |
|
|
190 |
% |
| Restructuring programs: |
|
|
|
|
|
|
NobelClad |
402 |
|
|
361 |
|
|
11 |
% |
| Accrued anti-dumping
penalties |
— |
|
|
3,103 |
|
|
-100 |
% |
| Adjusted operating income |
$ |
45,507 |
|
|
$ |
19,005 |
|
|
139 |
% |
Adjusted Net Income and Adjusted Diluted Earnings per Share
| |
Three months ended June 30, 2019 |
| |
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
|
Net income, as reported |
$ |
24,587 |
|
|
$ |
7,343 |
|
|
$ |
17,244 |
|
|
$ |
1.15 |
|
| Restructuring programs: |
|
|
|
|
|
|
|
|
NobelClad |
324 |
|
|
— |
|
|
324 |
|
|
0.02 |
|
| Adjusted net income |
$ |
24,911 |
|
|
$ |
7,343 |
|
|
$ |
17,568 |
|
|
$ |
1.17 |
|
| |
Three months ended March 31, 2019 |
| |
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
|
Net income, as reported |
$ |
20,058 |
|
|
$ |
4,888 |
|
|
$ |
15,170 |
|
|
$ |
1.01 |
|
| Restructuring programs: |
|
|
|
|
|
|
|
|
NobelClad |
78 |
|
|
— |
|
|
78 |
|
|
0.01 |
|
| Adjusted net income |
$ |
20,136 |
|
|
$ |
4,888 |
|
|
$ |
15,248 |
|
|
$ |
1.02 |
|
| |
Three months ended June 30, 2018 |
| |
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
|
Net income, as reported |
$ |
9,766 |
|
|
$ |
3,394 |
|
|
$ |
6,372 |
|
|
$ |
0.43 |
|
| Restructuring programs: |
|
|
|
|
|
|
|
|
NobelClad |
217 |
|
|
— |
|
|
217 |
|
|
0.02 |
|
| Adjusted net income |
$ |
9,983 |
|
|
$ |
3,394 |
|
|
$ |
6,589 |
|
|
$ |
0.45 |
|
| |
Six months ended June 30, 2019 |
| |
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
|
Net income, as reported |
$ |
44,645 |
|
|
$ |
12,231 |
|
|
$ |
32,414 |
|
|
$ |
2.17 |
|
| Restructuring programs: |
|
|
|
|
|
|
|
|
NobelClad |
402 |
|
|
— |
|
|
402 |
|
|
0.03 |
|
| Adjusted net income |
$ |
45,047 |
|
|
$ |
12,231 |
|
|
$ |
32,816 |
|
|
$ |
2.20 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
| |
|
| |
Six months ended June 30, 2018 |
| |
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
|
Net income, as reported |
$ |
14,236 |
|
|
$ |
3,944 |
|
|
$ |
10,292 |
|
|
$ |
0.69 |
|
| Restructuring programs: |
|
|
|
|
|
|
|
|
NobelClad |
361 |
|
|
— |
|
|
361 |
|
|
0.03 |
|
| Accrued anti-dumping
duties |
3,103 |
|
|
— |
|
|
3,103 |
|
|
0.22 |
|
| Adjusted net income |
$ |
17,700 |
|
|
$ |
3,944 |
|
|
$ |
13,756 |
|
|
$ |
0.94 |
|
Return on Invested Capital
| |
|
|
Three months ended |
| |
|
|
Jun 30, 2018 |
|
Sep 30, 2018 |
|
Dec 31, 2018 |
|
Mar 31, 2019 |
|
Jun 30, 2019 |
|
Operating income |
|
|
|
$ |
10,229 |
|
|
$ |
8,820 |
|
|
$ |
13,063 |
|
|
$ |
20,452 |
|
|
$ |
24,653 |
|
| Income tax provision (benefit)
(1) |
|
|
|
|
3,555 |
|
|
3,396 |
|
|
(2,809 |
) |
|
4,990 |
|
|
7,371 |
|
| Net operating profit after
taxes (NOPAT) |
|
|
|
|
6,674 |
|
|
5,424 |
|
|
15,872 |
|
|
15,462 |
|
|
17,282 |
|
| Trailing Twelve Months
NOPAT |
|
|
|
|
|
|
|
|
|
43,432 |
|
|
54,040 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Balances as of |
| |
Mar 31, 2018 |
|
Jun 30, 2018 |
|
Sep 30, 2018 |
|
Dec 31, 2018 |
|
Mar 31, 2019 |
|
Jun 30, 2019 |
| Allowance for doubtful
accounts |
1,269 |
|
|
|
572 |
|
|
490 |
|
|
513 |
|
|
574 |
|
|
428 |
|
| Deferred tax assets |
— |
|
|
|
— |
|
|
— |
|
|
(4,001 |
) |
|
(3,843 |
) |
|
(3,656 |
) |
| Deferred tax liabilities |
265 |
|
|
|
606 |
|
|
849 |
|
|
379 |
|
|
880 |
|
|
458 |
|
| Accrued income taxes |
4,603 |
|
|
|
6,557 |
|
|
9,299 |
|
|
9,545 |
|
|
5,367 |
|
|
9,419 |
|
| Current portion of long-term
debt |
— |
|
|
|
— |
|
|
— |
|
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
| Long-term debt |
29,350 |
|
|
|
34,611 |
|
|
41,454 |
|
|
38,230 |
|
|
40,239 |
|
|
32,744 |
|
| Total stockholders'
equity |
111,357 |
|
|
|
114,229 |
|
|
119,390 |
|
|
134,286 |
|
|
148,911 |
|
|
163,501 |
|
| Total invested capital |
146,844 |
|
|
|
156,575 |
|
|
171,482 |
|
|
182,077 |
|
|
195,253 |
|
|
206,019 |
|
| Average invested capital |
|
|
|
|
|
|
|
|
171,049 |
|
|
181,297 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Trailing Twelve
Months Return on Invested Capital (ROIC) |
|
|
|
|
|
25 |
% |
|
30 |
% |
| (1) Tax
calculation for NOPAT: |
| |
Three months ended |
|
Twelve months ended |
|
Three months ended |
| |
Jun 30, 2018 |
|
Sep 30, 2018 |
|
Dec 31, 2018 |
|
Dec 31, 2018 |
|
Mar 31, 2019 |
|
Jun 30, 2019 |
|
Income before income taxes |
9,766 |
|
|
7,990 |
|
|
12,381 |
|
|
34,607 |
|
|
20,058 |
|
|
24,587 |
|
| Income tax provision
(benefit) |
3,394 |
|
|
3,080 |
|
|
(2,890 |
) |
|
4,134 |
|
|
4,888 |
|
|
7,343 |
|
| Effective tax rate |
34.8 |
% |
|
38.5 |
% |
|
(23.3 |
)% |
|
11.9 |
% |
|
24.4 |
% |
|
29.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
DynaEnergetics
| |
Three months ended |
|
Change |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Jun 30, 2018 |
|
Sequential |
|
Year-on-year |
|
Operating income |
$ |
26,813 |
|
|
$ |
23,110 |
|
|
$ |
12,228 |
|
|
16 |
% |
|
119 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
1,419 |
|
|
1,098 |
|
|
886 |
|
|
29 |
% |
|
60 |
% |
|
Amortization of purchased intangibles |
300 |
|
|
301 |
|
|
689 |
|
|
— |
% |
|
-56 |
% |
| Adjusted EBITDA |
$ |
28,532 |
|
|
$ |
24,509 |
|
|
$ |
13,803 |
|
|
16 |
% |
|
107 |
% |
| |
Six months ended |
|
Change |
| |
Jun 30, 2019 |
|
Jun 30, 2018 |
|
Year-on-year |
|
Operating income |
$ |
49,923 |
|
|
$ |
20,948 |
|
|
138 |
% |
| Adjustments: |
|
|
|
|
|
|
Accrued anti-dumping penalties |
— |
|
|
3,103 |
|
|
-100 |
% |
|
Depreciation |
2,517 |
|
|
1,745 |
|
|
44 |
% |
|
Amortization of purchased intangibles |
601 |
|
|
1,389 |
|
|
-57 |
% |
| Adjusted EBITDA |
$ |
53,041 |
|
|
$ |
27,185 |
|
|
95 |
% |
NobelClad
| |
Three months ended |
|
Change |
| |
Jun 30, 2019 |
|
Mar 31, 2019 |
|
Jun 30, 2018 |
|
Sequential |
|
Year-on-year |
|
Operating income |
$ |
1,923 |
|
|
$ |
1,830 |
|
|
$ |
1,703 |
|
|
5 |
% |
|
13 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Restructuring expenses, net |
324 |
|
|
78 |
|
|
217 |
|
|
315 |
% |
|
49 |
% |
|
Depreciation |
738 |
|
|
700 |
|
|
715 |
|
|
5 |
% |
|
3 |
% |
|
Amortization of purchased intangibles |
97 |
|
|
97 |
|
|
102 |
|
|
— |
% |
|
-5 |
% |
| Adjusted EBITDA |
$ |
3,082 |
|
|
$ |
2,705 |
|
|
$ |
2,737 |
|
|
14 |
% |
|
13 |
% |
| |
Six months ended |
|
|
| |
Jun 30, 2019 |
|
Jun 30, 2018 |
|
Year-on-year |
|
Operating income |
$ |
3,753 |
|
|
$ |
1,691 |
|
|
122 |
% |
| Adjustments: |
|
|
|
|
|
|
Restructuring expenses, net |
402 |
|
|
361 |
|
|
11 |
% |
|
Depreciation |
1,438 |
|
|
1,426 |
|
|
1 |
% |
|
Amortization of purchased intangibles |
194 |
|
|
207 |
|
|
-6 |
% |
| Adjusted EBITDA |
$ |
5,787 |
|
|
$ |
3,685 |
|
|
57 |
% |
|
CONTACT: |
|
Geoff High, Vice President of Investor Relations |
|
303-604-3924 |
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