DMC GLOBAL REDUCES WORKFORCE BY APPROXIMATELY ONE THIRD TO ADDRESS ECONOMIC DOWNTURN AND CONTRACTION OF CORE MARKET
April 01 2020 - 4:05PM
DMC Global Inc. (Nasdaq: BOOM) today reported it has reduced its
workforce by 264 positions, 97 of which were temporary
workers. The reduction, which eliminated approximately one
third of DMC’s workforce, was taken primarily to address sharply
lower activity levels in the Company’s core oil and gas end market.
The workforce reduction principally impacted full-time, part-time
and temporary direct-labor roles in manufacturing and assembly at
DynaEnergetics, DMC’s oilfield products business. Several general
and administrative positions also were eliminated at
DynaEnergetics, as well as at DMC’s corporate office, and at
NobelClad, DMC’s composite metals business. Additionally,
DynaEnergetics’ manufacturing facilities in the United States and
Europe have transitioned to reduced work weeks. DMC expects
to incur related cash severance costs of approximately $820,000
during the first quarter.
A steep decline in energy demand has resulted in
a sudden slowdown in well-completion activity, reducing orders for
DynaEnergetics’ well perforating systems. Kevin Longe,
president and CEO of DMC, said, “This workforce reduction is a
difficult and unfortunate process, but it is essential we realign
the size of our organization to match the smaller size of our
addressable market. We hope to offer impacted employees an
opportunity to rejoin the company when our markets
improve.”
Longe added, “The challenges associated the
market downturn have not altered DMC’s long-range strategy.
We will continue investing in the development of differentiated,
high-value products that strengthen our customers’ operations and
enhance their profitability. We have a solid balance sheet and a
resilient business model, and we expect to emerge from this
downturn a strong company that continues to lead its respective
industries and delivers value to its stakeholders.”
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 expected
cash severance costs of $820,000, the potential of offering former
employees an opportunity to rejoin the company when our markets
improve, and the expectation that DMC will emerge from the current
downturn a strong company that continues to lead its respective
industries and delivers value to its stakeholders. 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; 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; potential supply-chain
disruptions, including as may be related to the coronavirus; 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,
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.
CONTACT:Geoff High, Vice President of Investor
Relations303-604-3924
DMC Global (NASDAQ:BOOM)
Historical Stock Chart
From Mar 2024 to Apr 2024
DMC Global (NASDAQ:BOOM)
Historical Stock Chart
From Apr 2023 to Apr 2024