DMC Global Inc. (Nasdaq: BOOM) today reported financial results for
its third quarter ended September 30, 2019.
Consolidated sales were $100.1 million, up 14%
versus the third quarter of 2018 and down 10% sequentially. The
sequential decline principally was due to an anticipated slowdown
in well completion activity within North America’s unconventional
oil and gas industry.
Third quarter gross margin was 36% versus 34% in
the 2018 third quarter and 38% in the 2019 second quarter. Adjusted
gross margin* was 37%, and excludes a write down of inventory at
DynaEnergetics, DMC’s oilfield products business. The write
down is related to the previously announced closure of
DynaEnergetics’ manufacturing facility in Tyumen,
Siberia.
Operating income was $12.8 million, up 45% from
$8.8 million in the 2018 third quarter. Net income was $6.9
million, or $0.46 per diluted share, versus $4.9 million, or $0.33
per diluted share, in last year’s third quarter.
Adjusted operating income* was $19.3 million,
and excludes $6.5 million in special items related to the Tyumen
plant closure. Adjusted net income was $13.4 million, or $0.90 per
diluted share.
Third quarter adjusted EBITDA was $23.2 million,
up 35% from $17.2 million in the 2018 third quarter, and down 20%
sequentially versus the $29.0 million reported in the second
quarter.
Net debt* (total debt less cash and cash
equivalents) at September 30, 2019, was $16.0 million, down from
$21.0 million at June 30, 2019, and $28.0 million at December 31,
2018.
DynaEnergetics Third quarter sales at
DynaEnergetics were $77.4 million, up 17% from the 2018 third
quarter and down 13% sequentially. Gross margin was 39%, up from
37% in last year’s third quarter and down from 41% in the second
quarter. Excluding inventory write downs associated with the
Tyumen, Siberia, plant closure, adjusted gross margin was 40%.
Operating income was $14.9 million versus $9.9 million in the
comparable year-ago quarter. Excluding restructuring related
charges in 2019 and anti-dumping duty penalties in 2018, adjusted
operating income was $21.4 million versus $14.8 million in the 2018
third quarter. Adjusted EBITDA was $23.2 million versus $16.4
million in last year’s third quarter.
NobelClad Third quarter sales at NobelClad,
DMC’s composite metals business, were $22.7 million, up 5% versus
the 2018 third quarter and up 2% sequentially. Gross margin was
26%, up from 25% in the 2018 third quarter and flat versus the
second quarter. Operating income was $2.2 million versus $2.1
million in the year-ago third quarter. Excluding restructuring
charges related to NobelClad’s European consolidation, adjusted
operating income was $2.2 million versus $2.3 million in the
year-ago third quarter. Adjusted EBITDA was $3.1 million, flat
versus last year’s third quarter.
NobelClad’s trailing 12-month book-to-bill ratio
at the end of the third quarter was 0.97. Order backlog was $33.2
million versus $38.8 million at the end of the second quarter.
Nine-month resultsConsolidated
sales for the nine-month period were $311.2 million,
up 32% versus the same period a year ago. Gross
margin was 37% versus 34% in the 2018
nine-month period. Operating income was $57.9 million
versus $24.4 million in last year’s nine-month period, which
included $8.0 million in accrued anti-dumping penalties. Net income
was $39.3 million, or $2.64 per diluted share,
versus $15.2 million, or $1.02 per diluted share, in the
nine-month period a year ago.
Nine-month adjusted operating income was $64.9
million and adjusted net income was $46.2 million, or $3.10 per
diluted share. Adjusted EBITDA was $76.1
million versus $42.7 million in last year’s
nine-month period.
DynaEnergeticsNine-month sales at DynaEnergetics
were $245.8 million, up 41% from $174.3 million
in last year’s nine-month period. Operating income was $64.8
million versus $30.8 million in the comparable
year-ago period. Adjusted EBITDA was $76.2
million versus $43.5 million in last year’s
nine-month period.
NobelCladNine-month sales at NobelClad
were $65.4 million, up 6% from $61.8
million at the nine-month mark last year. Operating income
was $6.0 million versus $3.8 million in the
comparable year-ago period, while adjusted EBITDA was $8.9
million versus $6.8 million in the year-ago period.
Management Commentary Kevin
Longe, president and CEO, said, “DynaEnergetics and NobelClad
executed very well during a quarter in which market conditions grew
increasingly challenging. I am particularly encouraged by the
margin performance of both businesses, which illustrates that
customers continue to recognize the value of our differentiated
products and services.
“DynaEnergetics is taking an opportunistic
approach to the slowdown in onshore well completion activity,”
Longe added. “The sales team is onboarding new customers for
DynaEnergetics’ IS2™ intrinsically safe initiating systems and
DynaStage DS Factory-Assembled, Performance-Assured™ perforating
systems; and several existing customers are deploying these
products more broadly across their service fleets. We
also are working more closely with exploration and production
companies to demonstrate the safety, efficiency and reliability of
the DynaStage DS product line. Several of these operators
have begun to specify the DynaStage DS systems to their service
companies as they prepare for upcoming well completion
programs.
“DynaEnergetics announced during the third
quarter that sales of its DynaStage DS systems had exceeded one
million units. The milestone was the result of a widespread
transition by operators and service companies to our
Factory-Assembled, Performance-Assured perforating systems.
The two newest DS models – DS Trinity™ 3.5. and DS NLine™ – are now
fully commercialized and are enabling DynaEnergetics to extend its
lead at the premium end of the perforating market.
Field trials of the ultra-compact DS Trinity
3.5, which features three charges on a single radial plane, were
completed earlier this month. Customer response was very positive,
and commercial shipments are underway. DS NLine, which
enables the user to align the charges at surface and then orient
the gun in the wellbore, has been adopted by several operators and
service companies, and we expect sales volumes will continue
increasing as more completion engineers incorporate the system into
their well designs.”
“Our NobelClad business is reporting solid
demand from the downstream energy sector, and also is bidding on a
number of international upstream projects that are expected to be
awarded in the coming months. New composite-metal
applications also are generating increased customer interest within
a variety of industrial processing sectors. With NobelClad’s
sales team pursuing a growing number of large project opportunities
in both new and traditional end markets, we believe 2020 could be a
year of meaningful growth for the business.”
Longe continued, “We ended the third quarter
with a trailing 12-month return on invested capital of 30%, and a
net debt position that has improved 43% since the end of last
year. As a result of our financial strength and commitment to
delivering value to our stakeholders, we recently increased our
annual dividend to $0.50 from $0.08.
“Despite the anticipated slowdown in North
American well-completion activity, we are maintaining our full-year
2019 guidance for sales, and now expect adjusted EPS will be in a
range of $3.65 to $3.80, up from a previously forecasted range of
$3.55 to $3.70. We expect to end 2019 with record revenue,
income and returns on invested capital, as well as a clean balance
sheet. We also anticipate our markets will begin to recover next
year, and believe 2020 will bring continued financial growth for
DMC.
“I sincerely appreciate the commitment and
consistent effort of DMC’s employees around the world,” Longe
added. “Our continued success would not be possible without
them. I also want to thank our customers for their loyalty
and ongoing support of our businesses.”
GuidanceMichael Kuta, CFO, said
fourth quarter sales are expected in a range of $92 million to $97
million versus the $90.3 million in the 2018 fourth quarter. At the
business level, DynaEnergetics is expected to report sales in a
range of $72 million to $75 million versus the $63.2 million
reported in last year’s fourth quarter. NobelClad’s sales are
expected to be in the range of $20 million to $22 million versus
the $27.1 million reported in the 2018 fourth quarter.
Consolidated gross margin is expected to be in a
range of 34% to 35% versus 35% reported in the year-ago fourth
quarter. The anticipated sequential decline versus this year’s
third quarter is due to lower fixed overhead absorption on lower
expected sales at DynaEnergetics, and a less favorable project mix
at NobelClad.
Fourth quarter selling, general and
administrative (SG&A) expense is expected to be approximately
$17 million versus SG&A of $17.2 million in last year’s fourth
quarter. Amortization expense is expected to be approximately
$400,000 versus $579,000 in the fourth quarter last year, while
interest expense is expected to be approximately $400,000.
Adjusted EBITDA is expected in a range of $17.5
million to $20 million versus $16.9 million in last year’s fourth
quarter.
Full-year adjusted earnings per share are
expected in a range of $3.65 to $3.80, up from the $2.07 reported
in fiscal 2018, and above a previously forecasted range of $3.55 to
$3.70.
DMC expects to record an additional charge
related to the winddown of operations in Tyumen, Siberia. The
charge primarily is associated with the write off of cumulative
foreign currency translation losses incurred since the plant
commenced operations in 2011. These losses, which had a
carrying value of approximately $8.0 million as of September 30,
2019, will be fully written off once the assets in Tyumen have been
substantially liquidated.
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/54704, or by
dialing 844-369-8770 (862-298-0840 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 until October
31, 2019, by calling 877-481-4010 (919-882-2331 for international
callers) and entering the Conference ID #54704.
*Use of Non-GAAP Financial Measures
Adjusted EBITDA, adjusted operating income,
adjusted net income, adjusted gross margin, 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 gross margin is
defined as gross margin plus inventory write downs associated with
restructuring. 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, adjusted
gross margin 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 Language Except 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 fourth
quarter and full-year 2019 guidance on sales, gross margin,
adjusted gross margin, SG&A, amortization expenses, adjusted
earnings per share, adjusted EBITDA and interest expense; as well
as our belief that sales volumes of DS NLine will continue
increasing as more completion engineers incorporate the system into
their well designs; our belief that a number of international
upstream projects in NobelClad’s markets will be awarded in the
coming months; our belief that 2020 could be year of meaningful
growth for NobelClad; our expectation that our markets will begin
to recover next year and that 2020 will bring continued financial
growth for DMC; and our expectation that losses associated with the
winddown of operations in Tyumen, Siberia, will result in a charge
in the range of $8 million associated primarily with the write off
of cumulative foreign currency translation losses. 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.
|
|
|
CONTACT: |
|
Geoff High, Vice President of Investor Relations |
|
303-604-3924 |
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS(Amounts in Thousands, Except Share and Per Share
Data)(unaudited)
|
Three months ended |
|
Change |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
|
Sequential |
|
Year-on-year |
NET SALES |
$ |
100,094 |
|
|
$ |
110,954 |
|
|
$ |
87,883 |
|
|
-10 |
% |
|
14 |
% |
COST OF PRODUCTS SOLD |
63,870 |
|
|
68,881 |
|
|
58,155 |
|
|
-7 |
% |
|
10 |
% |
Gross profit |
36,224 |
|
|
42,073 |
|
|
29,728 |
|
|
-14 |
% |
|
22 |
% |
Gross profit percentage |
|
36.2 |
% |
|
|
37.9 |
% |
|
|
33.8 |
% |
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
General and administrative expenses |
10,128 |
|
|
9,460 |
|
|
9,630 |
|
|
7 |
% |
|
5 |
% |
Selling and distribution expenses |
6,983 |
|
|
7,239 |
|
|
5,420 |
|
|
-4 |
% |
|
29 |
% |
Amortization of purchased intangible assets |
394 |
|
|
397 |
|
|
769 |
|
|
-1 |
% |
|
-49 |
% |
Restructuring expenses, net |
5,898 |
|
|
324 |
|
|
192 |
|
|
1,720 |
% |
|
2,972 |
% |
Anti-dumping duty penalties |
— |
|
|
— |
|
|
4,897 |
|
|
n/a |
|
|
-100 |
% |
Total costs and expenses |
23,403 |
|
|
17,420 |
|
|
20,908 |
|
|
34 |
% |
|
12 |
% |
OPERATING INCOME |
12,821 |
|
|
24,653 |
|
|
8,820 |
|
|
-48 |
% |
|
45 |
% |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
Other income (expense), net |
170 |
|
|
343 |
|
|
(335 |
) |
|
-50 |
% |
|
151 |
% |
Interest expense, net |
(387 |
) |
|
(409 |
) |
|
(495 |
) |
|
5 |
% |
|
22 |
% |
INCOME BEFORE INCOME
TAXES |
12,604 |
|
|
24,587 |
|
|
7,990 |
|
|
-49 |
% |
|
58 |
% |
INCOME TAX PROVISION |
5,689 |
|
|
7,343 |
|
|
3,080 |
|
|
-23 |
% |
|
85 |
% |
NET INCOME |
6,915 |
|
|
17,244 |
|
|
4,910 |
|
|
-60 |
% |
|
41 |
% |
NET INCOME PER SHARE |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.47 |
|
|
$ |
1.17 |
|
|
$ |
0.33 |
|
|
-60 |
% |
|
42 |
% |
Diluted |
$ |
0.46 |
|
|
$ |
1.15 |
|
|
$ |
0.33 |
|
|
-60 |
% |
|
39 |
% |
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
Basic |
14,632,276 |
|
|
14,647,019 |
|
|
14,571,155 |
|
|
— |
% |
|
— |
% |
Diluted |
14,851,166 |
|
|
14,899,987 |
|
|
14,571,155 |
|
|
— |
% |
|
2 |
% |
DIVIDENDS DECLARED PER COMMON
SHARE |
$ |
0.125 |
|
|
$ |
0.020 |
|
|
$ |
0.020 |
|
|
|
|
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS(Amounts in Thousands, Except Share and Per Share
Data)(unaudited)
|
Nine months ended |
|
Change |
|
Sep 30, 2019 |
|
Sep 30, 2018 |
|
Year-on-year |
NET SALES |
$ |
311,183 |
|
|
$ |
236,111 |
|
|
32 |
% |
COST OF PRODUCTS SOLD |
196,481 |
|
|
156,855 |
|
|
25 |
% |
Gross profit |
114,702 |
|
|
79,256 |
|
|
45 |
% |
Gross profit percentage |
|
36.9 |
% |
|
|
33.6 |
% |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
General and administrative expenses |
28,756 |
|
|
27,550 |
|
|
4 |
% |
Selling and distribution expenses |
20,531 |
|
|
16,427 |
|
|
25 |
% |
Amortization of purchased intangible assets |
1,189 |
|
|
2,365 |
|
|
-50 |
% |
Restructuring expenses, net |
6,300 |
|
|
553 |
|
|
1,039 |
% |
Anti-dumping duty penalties |
— |
|
|
8,000 |
|
|
-100 |
% |
Total costs and expenses |
56,776 |
|
|
54,895 |
|
|
3 |
% |
OPERATING INCOME |
57,926 |
|
|
24,361 |
|
|
138 |
% |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
Other income (expense), net |
492 |
|
|
(1,039 |
) |
|
147 |
% |
Interest expense, net |
(1,169 |
) |
|
(1,096 |
) |
|
-7 |
% |
INCOME BEFORE INCOME
TAXES |
57,249 |
|
|
22,226 |
|
|
158 |
% |
INCOME TAX PROVISION |
17,920 |
|
|
7,024 |
|
|
155 |
% |
NET INCOME |
39,329 |
|
|
15,202 |
|
|
159 |
% |
NET INCOME PER SHARE |
|
|
|
|
|
Basic |
$ |
2.67 |
|
|
$ |
1.02 |
|
|
162 |
% |
Diluted |
$ |
2.64 |
|
|
$ |
1.02 |
|
|
159 |
% |
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: |
|
|
|
|
|
Basic |
14,589,655 |
|
|
14,518,765 |
|
|
— |
% |
Diluted |
14,800,132 |
|
|
14,518,765 |
|
|
2 |
% |
DIVIDENDS DECLARED PER COMMON
SHARE |
$ |
0.165 |
|
|
$ |
0.060 |
|
|
|
DMC GLOBAL INC.SEGMENT STATEMENTS OF
OPERATIONS(Amounts in Thousands)(unaudited)
DynaEnergetics
|
Three months ended |
|
Change |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
|
Sequential |
|
Year-on-year |
Net sales |
$ |
77,356 |
|
|
$ |
88,628 |
|
|
$ |
66,250 |
|
|
-13 |
% |
|
17 |
% |
Gross profit |
30,543 |
|
|
36,341 |
|
|
24,505 |
|
|
-16 |
% |
|
25 |
% |
Gross profit percentage |
|
39.5 |
% |
|
|
41.0 |
% |
|
|
37.0 |
% |
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
5,048 |
|
|
4,591 |
|
|
5,556 |
|
|
10 |
% |
|
-9 |
% |
Selling and distribution expenses |
4,405 |
|
|
4,637 |
|
|
3,522 |
|
|
-5 |
% |
|
25 |
% |
Amortization of purchased intangible assets |
299 |
|
|
300 |
|
|
670 |
|
|
— |
% |
|
-55 |
% |
Restructuring expenses |
5,880 |
|
|
— |
|
|
— |
|
|
n/a |
|
|
n/a |
|
Anti-dumping duty penalties |
— |
|
|
— |
|
|
4,897 |
|
|
n/a |
|
|
-100 |
% |
Operating income |
14,911 |
|
|
26,813 |
|
|
9,860 |
|
|
-44 |
% |
|
51 |
% |
Adjusted EBITDA |
$ |
23,193 |
|
|
$ |
28,532 |
|
|
$ |
16,352 |
|
|
-19 |
% |
|
42 |
% |
|
Nine months ended |
|
Change |
|
Sep 30, 2019 |
|
Sep 30, 2018 |
|
Year-on-year |
Net sales |
$ |
245,820 |
|
|
$ |
174,270 |
|
|
41 |
% |
Gross profit |
98,116 |
|
|
65,879 |
|
|
49 |
% |
Gross profit percentage |
|
39.9 |
% |
|
|
37.8 |
% |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
General and administrative expenses |
13,360 |
|
|
14,526 |
|
|
-8 |
% |
Selling and distribution expenses |
13,142 |
|
|
10,493 |
|
|
25 |
% |
Amortization of purchased intangible assets |
900 |
|
|
2,059 |
|
|
-56 |
% |
Restructuring expenses |
5,880 |
|
|
— |
|
|
n/a |
|
Anti-dumping duty penalties |
— |
|
|
8,000 |
|
|
-100 |
% |
Operating income |
64,834 |
|
|
30,801 |
|
|
110 |
% |
Adjusted EBITDA |
$ |
76,234 |
|
|
$ |
43,530 |
|
|
75 |
% |
DMC GLOBAL INC.SEGMENT STATEMENTS OF
OPERATIONS(Amounts in Thousands)(unaudited)
NobelClad
|
Three months ended |
|
Change |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
|
Sequential |
|
Year-on-year |
Net sales |
$ |
22,738 |
|
|
$ |
22,326 |
|
|
$ |
21,633 |
|
|
2 |
% |
|
5 |
% |
Gross profit |
5,811 |
|
|
5,884 |
|
|
5,302 |
|
|
-1 |
% |
|
10 |
% |
Gross profit percentage |
|
25.6 |
% |
|
|
26.4 |
% |
|
|
24.5 |
% |
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
1,032 |
|
|
1,102 |
|
|
1,090 |
|
|
-6 |
% |
|
-5 |
% |
Selling and distribution expenses |
2,447 |
|
|
2,438 |
|
|
1,822 |
|
|
— |
% |
|
34 |
% |
Amortization of purchased intangible assets |
95 |
|
|
97 |
|
|
99 |
|
|
-2 |
% |
|
-4 |
% |
Restructuring expenses, net |
17 |
|
|
324 |
|
|
192 |
|
|
-95 |
% |
|
-91 |
% |
Operating income |
2,219 |
|
|
1,923 |
|
|
2,099 |
|
|
15 |
% |
|
6 |
% |
Adjusted EBITDA |
$ |
3,082 |
|
|
$ |
3,082 |
|
|
$ |
3,093 |
|
|
— |
% |
|
— |
% |
|
Nine months ended |
|
Change |
|
Sep 30, 2019 |
|
Sep 30, 2018 |
|
Year-on-year |
Net sales |
$ |
65,363 |
|
|
$ |
61,841 |
|
|
6 |
% |
Gross profit |
17,055 |
|
|
13,615 |
|
|
25 |
% |
Gross profit percentage |
|
26.1 |
% |
|
|
22.0 |
% |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
General and administrative expenses |
3,378 |
|
|
3,305 |
|
|
2 |
% |
Selling and distribution expenses |
6,996 |
|
|
5,660 |
|
|
24 |
% |
Amortization of purchased intangible assets |
289 |
|
|
306 |
|
|
-6 |
% |
Restructuring expenses, net |
420 |
|
|
553 |
|
|
-24 |
% |
Operating income |
5,972 |
|
|
3,791 |
|
|
58 |
% |
Adjusted EBITDA |
$ |
8,869 |
|
|
$ |
6,779 |
|
|
31 |
% |
DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in Thousands)
|
|
|
|
|
|
|
Change |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Dec 31, 2018 |
|
Sequential |
|
From year-end |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
12,183 |
|
$ |
14,881 |
|
$ |
13,375 |
|
-18 |
% |
|
-9 |
% |
Accounts receivable, net |
71,689 |
|
76,800 |
|
59,709 |
|
-7 |
% |
|
20 |
% |
Inventory, net |
58,923 |
|
59,980 |
|
51,074 |
|
-2 |
% |
|
15 |
% |
Other current assets |
9,206 |
|
6,650 |
|
8,058 |
|
38 |
% |
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
Total current assets |
152,001 |
|
158,311 |
|
132,216 |
|
-4 |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net |
103,670 |
|
105,232 |
|
95,140 |
|
-1 |
% |
|
9 |
% |
Purchased intangible assets,
net |
6,251 |
|
7,375 |
|
8,589 |
|
-15 |
% |
|
-27 |
% |
Other long-term assets |
13,893 |
|
14,266 |
|
4,473 |
|
-3 |
% |
|
211 |
% |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
275,815 |
|
$ |
285,184 |
|
$ |
240,418 |
|
-3 |
% |
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
24,306 |
|
$ |
36,179 |
|
$ |
24,243 |
|
-33 |
% |
|
— |
% |
Accrued anti-dumping
penalties |
— |
|
— |
|
8,000 |
|
n/a |
|
|
-100 |
% |
Contract liabilities |
2,563 |
|
2,076 |
|
1,140 |
|
23 |
% |
|
125 |
% |
Dividend payable |
1,866 |
|
299 |
|
295 |
|
524 |
% |
|
533 |
% |
Accrued income taxes |
10,427 |
|
9,419 |
|
9,545 |
|
11 |
% |
|
9 |
% |
Current portion of long-term
debt |
3,125 |
|
3,125 |
|
3,125 |
|
— |
% |
|
— |
% |
Other current liabilities |
21,671 |
|
19,234 |
|
18,217 |
|
13 |
% |
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
63,958 |
|
70,332 |
|
64,565 |
|
-9 |
% |
|
-1 |
% |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
25,010 |
|
32,744 |
|
38,230 |
|
-24 |
% |
|
-35 |
% |
Deferred tax liabilities |
1,469 |
|
458 |
|
379 |
|
221 |
% |
|
288 |
% |
Other long-term
liabilities |
18,302 |
|
18,149 |
|
2,958 |
|
1 |
% |
|
519 |
% |
Stockholders’ equity |
167,076 |
|
163,501 |
|
134,286 |
|
2 |
% |
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
275,815 |
|
$ |
285,184 |
|
$ |
240,418 |
|
-3 |
% |
|
15 |
% |
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Amounts in Thousands)(unaudited)
|
Three months ended |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
Net income |
$ |
6,915 |
|
|
$ |
17,244 |
|
|
$ |
4,910 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation |
2,223 |
|
|
2,157 |
|
|
1,628 |
|
Amortization of purchased intangible assets |
394 |
|
|
397 |
|
|
769 |
|
Amortization of deferred debt issuance costs |
47 |
|
|
36 |
|
|
44 |
|
Stock-based compensation |
1,242 |
|
|
1,495 |
|
|
870 |
|
Deferred income taxes |
1,236 |
|
|
81 |
|
|
243 |
|
Loss on disposal of property, plant and equipment |
26 |
|
|
317 |
|
|
4 |
|
Restructuring expenses, net |
5,898 |
|
|
324 |
|
|
192 |
|
Transition tax liability |
— |
|
|
— |
|
|
(411 |
) |
Change in working capital, net |
(6,187 |
) |
|
(5,746 |
) |
|
(125 |
) |
Net cash provided by operating activities |
11,794 |
|
|
16,305 |
|
|
8,124 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
Acquisition of property, plant and equipment |
(6,094 |
) |
|
(9,682 |
) |
|
(10,373 |
) |
Proceeds on sale of property, plant and equipment |
— |
|
|
1,054 |
|
|
— |
|
Net cash used in investing activities |
(6,094 |
) |
|
(8,628 |
) |
|
(10,373 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
Repayments on revolving loans, net |
(7,000 |
) |
|
(6,749 |
) |
|
(300 |
) |
(Repayments) borrowings on capital expenditure facility |
(782 |
) |
|
(781 |
) |
|
7,187 |
|
Payment of dividends |
(298 |
) |
|
(300 |
) |
|
(298 |
) |
Payment of deferred debt issuance costs |
— |
|
|
— |
|
|
(179 |
) |
Net proceeds from issuance of common stock |
— |
|
|
358 |
|
|
2 |
|
Treasury stock purchases |
(123 |
) |
|
(103 |
) |
|
(70 |
) |
Net cash provided by (used in) financing activities |
(8,203 |
) |
|
(7,575 |
) |
|
6,342 |
|
EFFECTS OF EXCHANGE RATES ON
CASH |
(195 |
) |
|
(95 |
) |
|
376 |
|
|
|
|
|
|
|
NET (DECREASE) INCREASE IN
CASH AND CASH EQUIVALENTS |
(2,698 |
) |
|
7 |
|
|
4,469 |
|
CASH AND CASH EQUIVALENTS,
beginning of the period |
14,881 |
|
|
14,874 |
|
|
6,629 |
|
CASH AND CASH EQUIVALENTS, end
of the period |
$ |
12,183 |
|
|
$ |
14,881 |
|
|
$ |
11,098 |
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Amounts in Thousands)(unaudited)
|
Nine months ended |
|
Sep 30, 2019 |
|
Sep 30, 2018 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net income |
$ |
39,329 |
|
|
$ |
15,202 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation |
6,178 |
|
|
4,799 |
|
Amortization of purchased intangible assets |
1,189 |
|
|
2,365 |
|
Amortization of deferred debt issuance costs |
130 |
|
|
268 |
|
Stock-based compensation |
3,908 |
|
|
2,662 |
|
Deferred income taxes |
1,660 |
|
|
276 |
|
Loss on disposal of property, plant and equipment |
343 |
|
|
30 |
|
Restructuring expenses, net |
6,300 |
|
|
553 |
|
Transition tax liability |
— |
|
|
(679 |
) |
Change in working capital, net |
(23,941 |
) |
|
(18,931 |
) |
Net cash provided by operating activities |
35,096 |
|
|
6,545 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Acquisition of property, plant and equipment |
(22,377 |
) |
|
(26,574 |
) |
Proceeds on sale of property, plant and equipment |
1,258 |
|
|
— |
|
Net cash used in investing activities |
(21,119 |
) |
|
(26,574 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
(Repayments) borrowings on revolving loans, net |
(10,999 |
) |
|
4,522 |
|
(Repayments) borrowings on capital expenditure facility |
(2,344 |
) |
|
18,990 |
|
Payment of dividends |
(896 |
) |
|
(891 |
) |
Payment of deferred debt issuance costs |
— |
|
|
(310 |
) |
Net proceeds from issuance of common stock |
358 |
|
|
232 |
|
Treasury stock purchases |
(1,079 |
) |
|
(453 |
) |
Net cash (used in) provided by financing activities |
(14,960 |
) |
|
22,090 |
|
EFFECTS OF EXCHANGE RATES ON
CASH |
(209 |
) |
|
54 |
|
|
|
|
|
NET (DECREASE) INCREASE IN
CASH AND CASH EQUIVALENTS |
(1,192 |
) |
|
2,115 |
|
CASH AND CASH EQUIVALENTS,
beginning of the period |
13,375 |
|
|
8,983 |
|
CASH AND CASH EQUIVALENTS, end
of the period |
$ |
12,183 |
|
|
$ |
11,098 |
|
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 |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
|
Sequential |
|
Year-on-year |
Net income |
$ |
6,915 |
|
|
$ |
17,244 |
|
|
$ |
4,910 |
|
-60 |
% |
|
41 |
% |
Interest expense, net |
387 |
|
|
409 |
|
|
495 |
|
-5 |
% |
|
-22 |
% |
Income tax provision |
5,689 |
|
|
7,343 |
|
|
3,080 |
|
-23 |
% |
|
85 |
% |
Depreciation |
2,223 |
|
|
2,157 |
|
|
1,628 |
|
3 |
% |
|
37 |
% |
Amortization of purchased
intangible assets |
394 |
|
|
397 |
|
|
769 |
|
-1 |
% |
|
-49 |
% |
|
|
|
|
|
|
|
|
|
|
EBITDA |
15,608 |
|
|
27,550 |
|
|
10,882 |
|
-43 |
% |
|
43 |
% |
Restructuring expenses,
net |
5,898 |
|
|
324 |
|
|
192 |
|
1,720 |
% |
|
2,972 |
% |
Restructuring related
inventory write down |
630 |
|
|
— |
|
|
— |
|
n/a |
|
|
n/a |
|
Accrued anti-dumping
penalties |
— |
|
|
— |
|
|
4,897 |
|
n/a |
|
|
-100 |
% |
Stock-based compensation |
1,242 |
|
|
1,495 |
|
|
870 |
|
-17 |
% |
|
43 |
% |
Other (income) expense,
net |
(170 |
) |
|
(343 |
) |
|
335 |
|
50 |
% |
|
-151 |
% |
Adjusted EBITDA |
$ |
23,208 |
|
|
$ |
29,026 |
|
|
$ |
17,176 |
|
-20 |
% |
|
35 |
% |
|
Nine months ended |
|
|
|
Sep 30, 2019 |
|
Sep 30, 2018 |
|
Year-on-year |
Net income |
$ |
39,329 |
|
|
$ |
15,202 |
|
159 |
% |
Interest expense, net |
1,169 |
|
|
1,096 |
|
7 |
% |
Income tax provision |
17,920 |
|
|
7,024 |
|
155 |
% |
Depreciation |
6,178 |
|
|
4,799 |
|
29 |
% |
Amortization of purchased
intangible assets |
1,189 |
|
|
2,365 |
|
-50 |
% |
|
|
|
|
|
|
EBITDA |
65,785 |
|
|
30,486 |
|
116 |
% |
Restructuring expenses,
net |
6,300 |
|
|
553 |
|
1,039 |
% |
Restructuring related
inventory write down |
630 |
|
|
— |
|
n/a |
|
Accrued anti-dumping
penalties |
— |
|
|
8,000 |
|
-100 |
% |
Stock-based compensation |
3,908 |
|
|
2,662 |
|
47 |
% |
Other (income) expense,
net |
(492 |
) |
|
1,039 |
|
-147 |
% |
Adjusted EBITDA |
$ |
76,131 |
|
|
$ |
42,740 |
|
78 |
% |
Adjusted gross margin
|
Three months ended |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
Gross margin, as
reported |
36.2 |
% |
|
37.9 |
% |
|
33.8 |
% |
Restructuring
related inventory write down |
0.6 |
% |
|
— |
% |
|
— |
% |
Adjusted gross
margin |
36.8 |
% |
|
37.9 |
% |
|
33.8 |
% |
|
Nine months ended |
|
Sep 30, 2019 |
|
Sep 30, 2018 |
Gross margin, as
reported |
36.9 |
% |
|
33.6 |
% |
Restructuring
related inventory write down |
0.2 |
% |
|
— |
Adjusted gross
margin |
37.1 |
% |
|
33.6 |
% |
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
Adjusted operating income
|
Three months ended |
|
Change |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
|
Sequential |
|
Year-on-year |
Operating income, as reported |
$ |
12,821 |
|
$ |
24,653 |
|
$ |
8,820 |
|
-48 |
% |
|
45 |
% |
Restructuring programs: |
|
|
|
|
|
|
|
|
|
NobelClad |
18 |
|
324 |
|
192 |
|
-94 |
% |
|
-91 |
% |
DynaEnergetics |
5,880 |
|
— |
|
— |
|
n/a |
|
|
n/a |
|
Restructuring related
inventory write down |
630 |
|
— |
|
— |
|
n/a |
|
|
n/a |
|
Accrued anti-dumping
penalties |
— |
|
— |
|
4,897 |
|
n/a |
|
|
-100 |
% |
Adjusted operating income |
$ |
19,349 |
|
$ |
24,977 |
|
$ |
13,909 |
|
-23 |
% |
|
39 |
% |
|
Nine months ended |
|
|
|
Sep 30, 2019 |
|
Sep 30, 2018 |
|
Year-on-year |
Operating income, as reported |
$ |
57,926 |
|
$ |
24,361 |
|
138 |
% |
Restructuring programs: |
|
|
|
|
|
NobelClad |
420 |
|
553 |
|
-24 |
% |
DynaEnergetics |
5,880 |
|
— |
|
n/a |
|
Restructuring related
inventory write down |
630 |
|
— |
|
n/a |
|
Accrued anti-dumping
penalties |
— |
|
8,000 |
|
-100 |
% |
Adjusted operating income |
$ |
64,856 |
|
$ |
32,914 |
|
97 |
% |
Adjusted Net Income and Adjusted Diluted Earnings per Share
|
Three months ended September 30, 2019 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net income, as reported |
$ |
12,604 |
|
$ |
5,689 |
|
$ |
6,915 |
|
$ |
0.46 |
Restructuring programs: |
|
|
|
|
|
|
|
NobelClad |
18 |
|
— |
|
18 |
|
— |
DynaEnergetics |
5,880 |
|
77 |
|
5,803 |
|
0.40 |
Restructuring related
inventory write down |
630 |
|
— |
|
630 |
|
0.04 |
Adjusted net income |
$ |
19,132 |
|
$ |
5,766 |
|
$ |
13,366 |
|
$ |
0.90 |
|
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 |
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
|
Three months ended September 30, 2018 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net income, as reported |
$ |
7,990 |
|
$ |
3,080 |
|
$ |
4,910 |
|
$ |
0.33 |
Restructuring programs: |
|
|
|
|
|
|
|
NobelClad |
192 |
|
— |
|
192 |
|
0.01 |
Accrued anti-dumping
duties |
4,897 |
|
— |
|
4,897 |
|
0.34 |
Adjusted net income |
$ |
13,079 |
|
$ |
3,080 |
|
$ |
9,999 |
|
$ |
0.68 |
|
Nine months ended September 30, 2019 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net income, as reported |
$ |
57,249 |
|
$ |
17,920 |
|
$ |
39,329 |
|
$ |
2.64 |
Restructuring programs: |
|
|
|
|
|
|
|
NobelClad |
420 |
|
— |
|
420 |
|
0.03 |
DynaEnergetics |
5,880 |
|
77 |
|
5,803 |
|
0.39 |
Restructuring related
inventory write down |
630 |
|
— |
|
630 |
|
0.04 |
Adjusted net income |
$ |
64,179 |
|
$ |
17,997 |
|
$ |
46,182 |
|
$ |
3.10 |
|
Nine months ended September 30, 2018 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net income, as reported |
$ |
22,226 |
|
$ |
7,024 |
|
$ |
15,202 |
|
$ |
1.02 |
Restructuring programs: |
|
|
|
|
|
|
|
NobelClad |
553 |
|
— |
|
553 |
|
0.04 |
Accrued anti-dumping
duties |
8,000 |
|
— |
|
8,000 |
|
0.55 |
Adjusted net income |
$ |
30,779 |
|
$ |
7,024 |
|
$ |
23,755 |
|
$ |
1.61 |
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
Return on Invested Capital
|
|
|
Three months ended |
|
|
|
Sep 30, 2018 |
|
Dec 31, 2018 |
|
Mar 31, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2019 |
Operating income |
|
|
8,820 |
|
$ |
13,063 |
|
|
$ |
20,452 |
|
|
$ |
24,653 |
|
|
$ |
12,821 |
|
Income tax provision (benefit)
(1) |
|
|
3,396 |
|
(2,809 |
) |
|
4,990 |
|
|
7,371 |
|
|
5,782 |
|
Net operating profit after
taxes (NOPAT) |
|
|
5,424 |
|
15,872 |
|
|
15,462 |
|
|
17,282 |
|
|
7,039 |
|
Trailing Twelve Months
NOPAT |
|
|
|
|
|
|
|
|
54,040 |
|
|
55,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of |
|
June 30, 2018 |
|
Sep 30, 2018 |
|
Dec 31, 2018 |
|
Mar 31, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2019 |
Allowance for doubtful
accounts |
572 |
|
490 |
|
513 |
|
|
574 |
|
|
428 |
|
|
405 |
|
Deferred tax assets |
— |
|
— |
|
(4,001 |
) |
|
(3,843 |
) |
|
(3,656 |
) |
|
(3,431 |
) |
Deferred tax liabilities |
606 |
|
849 |
|
379 |
|
|
880 |
|
|
458 |
|
|
1,469 |
|
Accrued income taxes |
6,557 |
|
9,299 |
|
9,545 |
|
|
5,367 |
|
|
9,419 |
|
|
10,427 |
|
Current portion of long-term
debt |
— |
|
— |
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
Long-term debt |
34,611 |
|
41,454 |
|
38,230 |
|
|
40,239 |
|
|
32,744 |
|
|
25,010 |
|
Total stockholders'
equity |
114,229 |
|
119,390 |
|
134,286 |
|
|
148,911 |
|
|
163,501 |
|
|
167,076 |
|
Total invested capital |
156,575 |
|
171,482 |
|
182,077 |
|
|
195,253 |
|
|
206,019 |
|
|
204,081 |
|
Average invested capital |
|
|
|
|
|
|
171,049 |
|
|
181,297 |
|
|
187,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve Months Return on Invested Capital (ROIC) |
|
|
|
|
|
|
|
25 |
% |
|
|
|
30 |
% |
|
|
|
30 |
% |
(1) Tax
calculation for NOPAT: |
|
Three months ended |
|
Twelve months ended |
|
Three months ended |
|
Sep 30, 2018 |
|
Dec 31, 2018 |
|
Dec 31, 2018 |
|
Mar 31, 2019 |
|
June 30, 2019 |
|
Sep 30, 2019 |
Income before income taxes |
7,990 |
|
|
12,381 |
|
|
34,607 |
|
|
20,058 |
|
|
24,587 |
|
|
12,604 |
|
Income tax provision
(benefit) |
3,080 |
|
|
(2,890 |
) |
|
4,134 |
|
|
4,888 |
|
|
7,343 |
|
|
5,689 |
|
Effective tax rate |
38.5 |
% |
|
(23.3 |
)% |
|
11.9 |
% |
|
24.4 |
% |
|
29.9 |
% |
|
45.1 |
% |
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
DynaEnergetics
|
Three months ended |
|
Change |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
|
Sequential |
|
Year-on-year |
Operating income |
$ |
14,911 |
|
$ |
26,813 |
|
$ |
9,860 |
|
-44 |
% |
|
51 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring |
5,880 |
|
— |
|
— |
|
n/a |
|
|
n/a |
|
Restructuring related inventory write down |
630 |
|
— |
|
— |
|
n/a |
|
|
n/a |
|
Accrued anti-dumping penalties |
— |
|
— |
|
4,897 |
|
n/a |
|
|
-100 |
% |
Depreciation |
1,473 |
|
1,419 |
|
925 |
|
4 |
% |
|
59 |
% |
Amortization of purchased intangibles |
299 |
|
300 |
|
670 |
|
— |
% |
|
-55 |
% |
Adjusted EBITDA |
$ |
23,193 |
|
$ |
28,532 |
|
$ |
16,352 |
|
-19 |
% |
|
42 |
% |
|
Nine months ended |
|
Change |
|
Sep 30, 2019 |
|
Sep 30, 2018 |
|
Year-on-year |
Operating income |
$ |
64,834 |
|
$ |
30,801 |
|
110 |
% |
Adjustments: |
|
|
|
|
|
Restructuring |
5,880 |
|
— |
|
n/a |
|
Restructuring related inventory write down |
630 |
|
— |
|
n/a |
|
Accrued anti-dumping penalties |
— |
|
8,000 |
|
-100 |
% |
Depreciation |
3,990 |
|
2,670 |
|
49 |
% |
Amortization of purchased intangibles |
900 |
|
2,059 |
|
-56 |
% |
Adjusted EBITDA |
$ |
76,234 |
|
$ |
43,530 |
|
75 |
% |
Adjusted gross margin
|
Three months ended |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
Gross margin, as
reported |
39.5 |
% |
|
41.0 |
% |
|
37.0 |
% |
Restructuring
related inventory write down |
0.8 |
% |
|
— |
% |
|
— |
% |
Adjusted gross
margin |
40.3 |
% |
|
41.0 |
% |
|
37.0 |
% |
|
Nine months ended |
|
Sep 30, 2019 |
|
Sep 30, 2018 |
Gross margin, as
reported |
39.9 |
% |
|
37.8 |
% |
Restructuring
related inventory write down |
0.3 |
% |
|
— |
|
Adjusted gross
margin |
40.2 |
% |
|
37.8 |
% |
NobelClad
|
Three months ended |
|
Change |
|
Sep 30, 2019 |
|
Jun 30, 2019 |
|
Sep 30, 2018 |
|
Sequential |
|
Year-on-year |
Operating income |
$ |
2,219 |
|
$ |
1,923 |
|
$ |
2,099 |
|
15 |
% |
|
6 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring expenses, net |
18 |
|
324 |
|
192 |
|
-94 |
% |
|
-91 |
% |
Depreciation |
750 |
|
738 |
|
703 |
|
2 |
% |
|
7 |
% |
Amortization of purchased intangibles |
95 |
|
97 |
|
99 |
|
-2 |
% |
|
-4 |
% |
Adjusted EBITDA |
$ |
3,082 |
|
$ |
3,082 |
|
$ |
3,093 |
|
— |
% |
|
— |
% |
|
Nine months ended |
|
|
|
Sep 30, 2019 |
|
Sep 30, 2018 |
|
Year-on-year |
Operating income |
$ |
5,972 |
|
$ |
3,791 |
|
58 |
% |
Adjustments: |
|
|
|
|
|
Restructuring expenses, net |
420 |
|
553 |
|
-24 |
% |
Depreciation |
2,188 |
|
2,129 |
|
3 |
% |
Amortization of purchased intangibles |
289 |
|
306 |
|
-6 |
% |
Adjusted EBITDA |
$ |
8,869 |
|
$ |
6,779 |
|
31 |
% |
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