DMC Global Inc. (Nasdaq: BOOM) today reported financial results for
its second quarter ended June 30, 2023.
“Our consolidated sales were a quarterly record
$188.7 million and reflect the resiliency of our industrial end
markets, strong demand for our differentiated products, and
outstanding execution by our employees,” said Michael Kuta, who was
appointed DMC’s president and CEO yesterday. “All three of our
businesses delivered adjusted EBITDA margins in excess of 20%,
illustrating that the initiatives we implemented in early 2023 to
streamline our cost structure, improve operating efficiencies and
strengthen DMC’s profitability are delivering the desired
results.”
Michael Kuta, president and CEO, said,
“Arcadia, our building products business, reported steady demand
across its commercial construction and high-end residential
markets. Sales of $79.2 million were comparable with the first
quarter and up 4% versus the second quarter last year. Adjusted
EBITDA margin was 21%, a sequential improvement of approximately
800 basis points.
“Arcadia’s improved profitability reflects its
ability to hold pricing after selling through the balance of
high-priced aluminum inventory that had compressed profit margins
in recent quarters. Arcadia also benefited from several initiatives
designed to reduce costs and strengthen manufacturing operations.
Early in the third quarter, Arcadia completed its transition to a
new enterprise resource planning (ERP) platform, which will improve
visibility into key areas of Arcadia’s operations going
forward.
“DynaEnergetics, our energy products business,
reported sales of $84.8 million, which were up 3% sequentially, 26%
versus last year’s second quarter, and was the second-best
quarterly sales performance in Dyna’s history. The growth was
driven by strong demand in both North American and international
markets. Unit sales of Dyna’s flagship DS perforating system, which
is used in North America’s unconventional oil and gas fields,
reached another quarterly record.
“Dyna’s adjusted EBITDA margin of 23% was up
approximately 500 basis points sequentially and 300 basis points
versus last year’s second quarter. The improvements reflect lower
litigation expense, enhanced operational efficiencies and
implementation of new product designs.”
“At NobelClad, our composite metals business,
second quarter sales were $24.8 million, up 12% sequentially and
13% versus last year’s second quarter,” Kuta said. “A very
favorable project mix helped drive adjusted EBITDA margins to 22%,
up from 15% in the first quarter and 16% in last year’s second
quarter. The growing demand for NobelClad’s composite metal
products is reflected in its expanding order backlog, which
increased to $64 million from $60 million in the first quarter.
Rolling 12-month bookings improved to $108.4 million from $104.7 in
the first quarter, and NobelClad’s book-to-bill ratio remained at a
healthy 1.2. We are very encouraged by NobelClad’s strengthening
end markets and improving growth prospects.
“Looking forward, pricing pressure associated
with declining raw material costs in some of Arcadia’s commercial
construction markets, as well as a recent slowdown in North
American well completion activity, will likely taper adjusted
EBITDA versus the record results we reported in the second quarter.
Nevertheless, 2023 should represent a year of solid sales and
earnings growth for DMC.”
Eric Walter, CFO, said, “We expect free cash
flow to accelerate in the second half of 2023, which should
continue to strengthen our balance sheet. Our debt-to-adjusted
EBITDA leverage ratio improved to 1.3x at the end of the second
quarter, representing the sixth consecutive quarter of de-levering
our balance sheet. We expect to end 2023 with a leverage ratio
approaching 1.0x. In addition, we expect our net-debt to adjusted
EBITDA leverage ratio will be below 1.0x by the end of the
year.”
Kuta concluded, “I am very encouraged by our
recent financial and operational performance, as well as the
long-term outlook for DMC and its stakeholders. I want to thank
DMC’s employees for their outstanding effort and commitment to the
company’s success. I also want to thank our chairman, David Aldous,
who supported and collaborated with me as interim co-CEO for the
past seven months. Finally, I want to thank DMC’s Board of
Directors for their confidence in me and the Company.”
Summary Second
Quarter Results
|
|
Three months ended |
|
Change |
|
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
188,664 |
|
|
$ |
184,341 |
|
|
$ |
165,831 |
|
|
2 |
% |
|
14 |
% |
| Gross
profit percentage |
|
32.8 |
% |
|
|
28.3 |
% |
|
|
31.4 |
% |
|
|
|
|
|
SG&A |
|
29,226 |
|
|
|
39,324 |
|
|
|
29,361 |
|
|
(26 |
)% |
|
— |
% |
| Net
income |
|
17,526 |
|
|
|
2,139 |
|
|
|
6,459 |
|
|
719 |
% |
|
171 |
% |
| Net
income attributable to DMC |
$ |
13,703 |
|
|
$ |
909 |
|
|
$ |
5,552 |
|
|
1,407 |
% |
|
147 |
% |
| Diluted
net income (loss) per share attributable to DMC |
$ |
0.70 |
|
|
$ |
(0.01 |
) |
|
$ |
0.20 |
|
|
7,100 |
% |
|
250 |
% |
| Adjusted
net income attributable to DMC |
$ |
14,131 |
|
|
$ |
6,144 |
|
|
$ |
5,640 |
|
|
130 |
% |
|
151 |
% |
| Adjusted
diluted net income per share |
$ |
0.72 |
|
|
$ |
0.32 |
|
|
$ |
0.29 |
|
|
125 |
% |
|
148 |
% |
| Adjusted
EBITDA attributable to DMC |
$ |
31,776 |
|
|
$ |
20,091 |
|
|
$ |
22,362 |
|
|
58 |
% |
|
42 |
% |
|
Adjusted EBITDA before NCI allocation |
$ |
38,370 |
|
|
$ |
24,279 |
|
|
$ |
28,879 |
|
|
58 |
% |
|
33 |
% |
Second Quarter
Notes
- Improved gross profit percentage
driven by strong gross margins across all three DMC businesses
- Lower SG&A reflects reduced
litigation expense at Dyna and leaner cost structure at
Arcadia
- Adjusted EBITDA improvement driven
by 20%+ adjusted EBITDA margins at all DMC businesses
Arcadia
|
|
Three months ended |
|
Change |
|
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
79,158 |
|
|
$ |
80,338 |
|
|
$ |
76,462 |
|
|
(1 |
)% |
|
4 |
% |
| Gross
profit percentage |
|
34.7 |
% |
|
|
27.5 |
% |
|
|
34.3 |
% |
|
|
|
|
| Adjusted
EBITDA attributable to DMC |
$ |
9,892 |
|
|
$ |
6,282 |
|
|
$ |
9,775 |
|
|
57 |
% |
|
1 |
% |
|
Adjusted EBITDA before NCI allocation |
|
16,486 |
|
|
|
10,470 |
|
|
|
16,292 |
|
|
57 |
% |
|
1 |
% |
- Improved gross profit percentage
reflects increased pricing after selling through the balance of
high-priced aluminum inventory
DynaEnergetics
|
|
Three months ended |
|
Change |
|
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
84,754 |
|
|
$ |
81,968 |
|
|
$ |
67,517 |
|
|
3 |
% |
|
26 |
% |
| Gross
profit percentage |
|
31.3 |
% |
|
|
29.8 |
% |
|
|
29.6 |
% |
|
|
|
|
|
Adjusted EBITDA |
$ |
19,461 |
|
|
$ |
14,955 |
|
|
$ |
13,276 |
|
|
30 |
% |
|
47 |
% |
- Sequential and year-over-year sales
growth reflects strong demand in both North American and
International markets and record unit sales of fully integrated DS
perforating systems
- Gross margin improvement driven by
better absorption on higher sales and increased sales of higher
margin products
NobelClad
|
|
Three months ended |
|
Change |
|
|
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
24,752 |
|
|
$ |
22,035 |
|
|
$ |
21,852 |
|
|
12 |
% |
|
13 |
% |
| Gross
profit percentage |
|
32.4 |
% |
|
|
26.2 |
% |
|
|
27.6 |
% |
|
|
|
|
|
Adjusted EBITDA |
$ |
5,407 |
|
|
$ |
3,361 |
|
|
$ |
3,404 |
|
|
61 |
% |
|
59 |
% |
- Sequential and year-over-year sales
growth reflect robust pressure vessel construction and improving
demand from multiple global industrial-processing markets
- Gross margin improvement driven by
favorable project mix and better absorption on higher sales
Third Quarter
2023 Guidance
|
Measure |
Expected Range |
|
Sales |
|
|
DMC Consolidated |
$178M - $188M |
|
Arcadia |
$73M - $78M |
|
DynaEnergetics |
$75M - $79M |
|
NobelClad |
$30M - $31M |
|
Consolidated Gross Margin |
29% - 30% |
|
Consolidated SG&A |
$28M - $30M |
|
Depreciation & Amortization |
~$9.2M |
|
Interest Expense |
$2.4M |
|
Annualized effective tax rate |
27% - 29% |
|
Adjusted EBITDA attributable to DMC |
$24M - $27M |
|
Adjusted EBITDA before NCI allocation |
$29M - $32M |
|
Capital Expenditures |
$5M - $7M |
|
Full Year Capital Expenditures |
$18M - $20M |
Conference call informationThe
conference call will begin at 5 p.m. Eastern (3 p.m. Mountain) and
will be accessible by dialing 800-245-3047 (or +1 203-518-9765 for
international callers) and entering the conference ID: DMCQ2.
Investors are invited to listen to the webcast live via the
Internet at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=WCM6TCSK
Webcast participants should access the website
at least 15 minutes early to register and download any necessary
audio software. The webcast also will be available on the Investor
page of DMC’s website, located at: ir.dmcglobal.com. A replay of
the webcast will be available for 6 months.
*Use of Non-GAAP Financial
Measures Adjusted EBITDA, adjusted net income (loss), and
adjusted diluted earnings per share 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 (loss) 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 net income (loss) is defined as net income
(loss) attributable to DMC stockholders plus restructuring and
impairment charges (if applicable) 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 (if applicable) and, when appropriate, other items that
management does not utilize in assessing DMC’s operating
performance. None of these non-GAAP financial measures are
recognized terms under GAAP and do not purport to be an alternative
to net income (loss) 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.
Adjusted net income (loss) and adjusted diluted
earnings per share are presented because management believes these
measures are useful to understand the effects of restructuring and
impairment charges (if applicable) and, when appropriate, other
items that management does not utilize in assessing DMC’s operating
performance, on DMC’s net income (loss) and diluted earnings per
share, respectively.
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 (loss) to EBITDA and adjusted EBITDA are either (i)
non-cash items (e.g., depreciation, amortization of purchased
intangible assets 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, CEO transition expenses). 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 DMC Global Inc.DMC Global
is an owner and operator of innovative, asset-light manufacturing
businesses that provide unique, highly engineered products and
differentiated solutions. DMC’s businesses have established
leadership positions in their respective markets and consist of:
Arcadia, a leading supplier of architectural building products;
DynaEnergetics, which serves the global energy industry; and
NobelClad, which addresses the global industrial infrastructure and
transportation sectors. DMC’s businesses are led by experienced,
strategically focused management teams, which are supported with
business resources and capital allocation expertise to advance
their operating strategies and generate the greatest returns.
Headquartered in Broomfield, Colorado, DMC trades on Nasdaq under
the symbol “BOOM.” For more information, visit:
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 guidance
on sales, gross margin, SG&A, depreciation and amortization
expense, interest expense, tax rate, adjusted EBITDA, and capital
expenditures; our expectation that third quarter adjusted EBITDA
will taper versus the second quarter, while 2023 should bring solid
sales and earnings growth; our belief free cash flow will
accelerate in the second half of 2023, and our balance sheet will
strengthen; and our belief that our leverage ratios will improve by
the end of the year. Such statements and information are based on
numerous assumptions regarding present and future business
strategies, the markets in which we operate, anticipated costs and
the ability to achieve goals. Forward-looking information and
statements are subject to known and unknown risks, uncertainties
and other important factors that may cause actual results and
performance to be materially different from those expressed or
implied by such forward-looking information and statements,
including but not limited to: our ability to realize sales from our
backlog; our ability to obtain new contracts at attractive prices;
the execution of purchase commitments by our customers, and our
ability to successfully deliver on those purchase commitments; the
size and timing of customer orders and shipments; changes to
customer orders; product pricing and margins; fluctuations in
customer demand; our ability to successfully navigate slowdowns in
market activity or execute and capitalize upon growth
opportunities; the success of DynaEnergetics’ product and
technology development initiatives; our ability to successfully
protect our technology and intellectual property and the costs
associated with these efforts; potential consolidation among
DynaEnergetics’ customers; fluctuations in foreign currencies;
fluctuations in tariffs and quotas; the cost and availability of
energy; 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; our ability
to attract and retain key personnel; current or future limits on
manufacturing capacity at our various operations; government
actions or other changes in laws and regulations; the availability
and cost of funds; our ability to access our borrowing capacity
under our credit facility; geopolitical and economic instability,
including recessions, depressions, wars or other military actions;
inflation; supply chain delays and disruptions; transportation
disruptions; general economic conditions, both domestic and
foreign, impacting our business and the business of our customers
and the end-market users we serve; as well as the other risks
detailed from time to time in our SEC reports, including the annual
report on Form 10-K for the year ended December 31, 2022. 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, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
NET SALES |
$ |
188,664 |
|
|
$ |
184,341 |
|
|
$ |
165,831 |
|
|
2 |
% |
|
14 |
% |
| COST OF PRODUCTS SOLD |
|
126,774 |
|
|
|
132,130 |
|
|
|
113,732 |
|
|
(4 |
)% |
|
11 |
% |
|
Gross profit |
|
61,890 |
|
|
|
52,211 |
|
|
|
52,099 |
|
|
19 |
% |
|
19 |
% |
|
Gross profit percentage |
|
32.8 |
% |
|
|
28.3 |
% |
|
|
31.4 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
17,526 |
|
|
|
26,500 |
|
|
|
18,816 |
|
|
(34 |
)% |
|
(7 |
)% |
|
Selling and distribution expenses |
|
11,700 |
|
|
|
12,824 |
|
|
|
10,545 |
|
|
(9 |
)% |
|
11 |
% |
|
Amortization of purchased intangible assets |
|
5,667 |
|
|
|
5,667 |
|
|
|
12,793 |
|
|
— |
% |
|
(56 |
)% |
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
13 |
|
|
— |
% |
|
(100 |
)% |
|
Total costs and expenses |
|
34,893 |
|
|
|
44,991 |
|
|
|
42,167 |
|
|
(22 |
)% |
|
(17 |
)% |
| OPERATING INCOME |
|
26,997 |
|
|
|
7,220 |
|
|
|
9,932 |
|
|
274 |
% |
|
172 |
% |
| OTHER EXPENSE: |
|
|
|
|
|
|
|
|
|
|
Other (expense) income, net |
|
(439 |
) |
|
|
(200 |
) |
|
|
54 |
|
|
120 |
% |
|
913 |
% |
|
Interest expense, net |
|
(2,432 |
) |
|
|
(2,381 |
) |
|
|
(1,263 |
) |
|
2 |
% |
|
93 |
% |
| INCOME BEFORE INCOME
TAXES |
|
24,126 |
|
|
|
4,639 |
|
|
|
8,723 |
|
|
420 |
% |
|
177 |
% |
| INCOME TAX PROVISION |
|
6,600 |
|
|
|
2,500 |
|
|
|
2,264 |
|
|
164 |
% |
|
192 |
% |
| NET INCOME |
|
17,526 |
|
|
|
2,139 |
|
|
|
6,459 |
|
|
719 |
% |
|
171 |
% |
|
Less: Net income attributable to redeemable noncontrolling
interest |
|
3,823 |
|
|
|
1,230 |
|
|
|
907 |
|
|
211 |
% |
|
321 |
% |
| NET INCOME ATTRIBUTABLE TO DMC
GLOBAL INC. STOCKHOLDERS |
$ |
13,703 |
|
|
$ |
909 |
|
|
$ |
5,552 |
|
|
1,407 |
% |
|
147 |
% |
| NET INCOME (LOSS)
PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.70 |
|
|
$ |
(0.01 |
) |
|
$ |
0.20 |
|
|
7,100 |
% |
|
250 |
% |
|
Diluted |
$ |
0.70 |
|
|
$ |
(0.01 |
) |
|
$ |
0.20 |
|
|
7,100 |
% |
|
250 |
% |
| WEIGHTED AVERAGE SHARES
OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
19,497,871 |
|
|
|
19,462,636 |
|
|
|
19,374,714 |
|
|
— |
% |
|
1 |
% |
|
Diluted |
|
19,504,963 |
|
|
|
19,462,636 |
|
|
|
19,374,736 |
|
|
— |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net income (loss) attributable to DMC Global
Inc. stockholders after adjustment of redeemable noncontrolling
interest for purposes of calculating earnings per share
| |
Three months ended |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Net income attributable to DMC Global Inc. stockholders |
$ |
13,703 |
|
|
$ |
909 |
|
|
$ |
5,552 |
|
| Adjustment of redeemable
noncontrolling interest |
|
112 |
|
|
|
(1,138 |
) |
|
|
(1,535 |
) |
| Net income (loss) attributable
to DMC Global Inc. stockholders after adjustment of redeemable
noncontrolling interest |
$ |
13,815 |
|
|
$ |
(229 |
) |
|
$ |
4,017 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
Six months ended |
|
Change |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Year-on-year |
|
NET SALES |
$ |
373,005 |
|
|
$ |
304,547 |
|
|
22 |
% |
| COST OF PRODUCTS SOLD |
|
258,904 |
|
|
|
215,542 |
|
|
20 |
% |
|
Gross profit |
|
114,101 |
|
|
|
89,005 |
|
|
28 |
% |
|
Gross profit percentage |
|
30.6 |
% |
|
|
29.2 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
44,026 |
|
|
|
36,534 |
|
|
21 |
% |
|
Selling and distribution expenses |
|
24,524 |
|
|
|
20,635 |
|
|
19 |
% |
|
Amortization of purchased intangible assets |
|
11,334 |
|
|
|
25,769 |
|
|
(56 |
)% |
|
Restructuring expenses |
|
— |
|
|
|
45 |
|
|
(100 |
)% |
|
Total costs and expenses |
|
79,884 |
|
|
|
82,983 |
|
|
(4 |
)% |
| OPERATING INCOME |
|
34,217 |
|
|
|
6,022 |
|
|
468 |
% |
| OTHER EXPENSE: |
|
|
|
|
|
|
Other expense, net |
|
(639 |
) |
|
|
(155 |
) |
|
312 |
% |
|
Interest expense, net |
|
(4,813 |
) |
|
|
(2,287 |
) |
|
110 |
% |
| INCOME BEFORE INCOME
TAXES |
|
28,765 |
|
|
|
3,580 |
|
|
703 |
% |
| INCOME TAX PROVISION |
|
9,100 |
|
|
|
1,401 |
|
|
550 |
% |
| NET INCOME |
|
19,665 |
|
|
|
2,179 |
|
|
802 |
% |
|
Less: Net income (loss) attributable to redeemable noncontrolling
interest |
|
5,053 |
|
|
|
(85 |
) |
|
6,045 |
% |
| NET INCOME ATTRIBUTABLE TO DMC
GLOBAL INC. STOCKHOLDERS |
$ |
14,612 |
|
|
$ |
2,264 |
|
|
545 |
% |
| NET INCOME (LOSS) PER SHARE
ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS |
|
|
|
|
|
|
Basic |
$ |
0.69 |
|
|
$ |
(0.26 |
) |
|
365 |
% |
|
Diluted |
$ |
0.69 |
|
|
$ |
(0.26 |
) |
|
365 |
% |
| WEIGHTED AVERAGE SHARES
OUTSTANDING: |
|
|
|
|
|
|
Basic |
|
19,477,576 |
|
|
|
19,338,049 |
|
|
1 |
% |
|
Diluted |
|
19,485,863 |
|
|
|
19,338,049 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net income (loss) attributable to DMC Global
Inc. stockholders after adjustment of redeemable noncontrolling
interest for purposes of calculating earnings per share
| |
Six months ended |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Net income attributable to DMC Global Inc. stockholders |
$ |
14,612 |
|
|
$ |
2,264 |
|
| Adjustment of redeemable
noncontrolling interest |
|
(1,026 |
) |
|
|
(7,252 |
) |
| Net income (loss) attributable
to DMC Global Inc. stockholders after adjustment of redeemable
noncontrolling interest |
$ |
13,586 |
|
|
$ |
(4,988 |
) |
| |
|
|
|
|
|
|
|
DMC GLOBAL INC.SEGMENT STATEMENTS OF
OPERATIONS(Amounts in Thousands)(unaudited)
Arcadia
| |
Three months ended |
|
Change |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
79,158 |
|
|
$ |
80,338 |
|
|
$ |
76,462 |
|
|
(1 |
)% |
|
4 |
% |
| Gross profit |
|
27,459 |
|
|
|
22,094 |
|
|
|
26,227 |
|
|
24 |
% |
|
5 |
% |
| Gross profit percentage |
|
34.7 |
% |
|
|
27.5 |
% |
|
|
34.3 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
8,206 |
|
|
|
7,857 |
|
|
|
7,412 |
|
|
4 |
% |
|
11 |
% |
|
Selling and distribution expenses |
|
4,021 |
|
|
|
5,452 |
|
|
|
3,960 |
|
|
(26 |
)% |
|
2 |
% |
|
Amortization of purchased intangible assets |
|
5,652 |
|
|
|
5,652 |
|
|
|
12,633 |
|
|
— |
% |
|
(55 |
)% |
| Operating income |
|
9,580 |
|
|
|
3,133 |
|
|
|
2,222 |
|
|
206 |
% |
|
331 |
% |
| Adjusted EBITDA |
|
16,486 |
|
|
|
10,470 |
|
|
|
16,292 |
|
|
57 |
% |
|
1 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(6,594 |
) |
|
|
(4,188 |
) |
|
|
(6,517 |
) |
|
57 |
% |
|
1 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
9,892 |
|
|
$ |
6,282 |
|
|
$ |
9,775 |
|
|
57 |
% |
|
1 |
% |
| |
Six months ended |
|
Change |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Year-on-year |
|
Net sales |
$ |
159,496 |
|
|
$ |
144,430 |
|
|
10 |
% |
| Gross profit |
|
49,553 |
|
|
|
46,472 |
|
|
7 |
% |
| Gross profit percentage |
|
31.1 |
% |
|
|
32.2 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
16,063 |
|
|
|
13,555 |
|
|
19 |
% |
|
Selling and distribution expenses |
|
9,473 |
|
|
|
7,697 |
|
|
23 |
% |
|
Amortization of purchased intangible assets |
|
11,304 |
|
|
|
25,441 |
|
|
(56 |
)% |
| Operating income |
|
12,713 |
|
|
|
(221 |
) |
|
5,852 |
% |
| Adjusted EBITDA |
|
26,956 |
|
|
|
27,712 |
|
|
(3 |
)% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(10,782 |
) |
|
|
(11,085 |
) |
|
(3 |
)% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
16,174 |
|
|
$ |
16,627 |
|
|
(3 |
)% |
| |
|
|
|
|
|
|
|
|
|
DynaEnergetics
| |
Three months ended |
|
Change |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
84,754 |
|
|
$ |
81,968 |
|
|
$ |
67,517 |
|
|
3 |
% |
|
26 |
% |
| Gross profit |
|
26,552 |
|
|
|
24,437 |
|
|
|
19,960 |
|
|
9 |
% |
|
33 |
% |
| Gross profit percentage |
|
31.3 |
% |
|
|
29.8 |
% |
|
|
29.6 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
3,577 |
|
|
|
6,197 |
|
|
|
4,411 |
|
|
(42 |
)% |
|
(19 |
)% |
|
Selling and distribution expenses |
|
5,227 |
|
|
|
5,057 |
|
|
|
4,158 |
|
|
3 |
% |
|
26 |
% |
|
Amortization of purchased intangible assets |
|
15 |
|
|
|
15 |
|
|
|
82 |
|
|
— |
% |
|
(82 |
)% |
| Operating income |
|
17,733 |
|
|
|
13,168 |
|
|
|
11,309 |
|
|
35 |
% |
|
57 |
% |
| Adjusted EBITDA |
$ |
19,461 |
|
|
$ |
14,955 |
|
|
$ |
13,276 |
|
|
30 |
% |
|
47 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Six months ended |
|
Change |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Year-on-year |
|
Net sales |
$ |
166,722 |
|
|
$ |
116,404 |
|
|
43 |
% |
| Gross profit |
|
50,989 |
|
|
|
32,568 |
|
|
57 |
% |
| Gross profit percentage |
|
30.6 |
% |
|
|
28.0 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
9,774 |
|
|
|
9,733 |
|
|
— |
% |
|
Selling and distribution expenses |
|
10,284 |
|
|
|
8,061 |
|
|
28 |
% |
|
Amortization of purchased intangible assets |
|
30 |
|
|
|
167 |
|
|
(82 |
)% |
| Operating income |
|
30,901 |
|
|
|
14,607 |
|
|
112 |
% |
| Adjusted EBITDA |
$ |
34,416 |
|
|
$ |
18,558 |
|
|
85 |
% |
| |
|
|
|
|
|
|
|
|
|
|
NobelClad
| |
Three months ended |
|
Change |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
24,752 |
|
|
$ |
22,035 |
|
|
$ |
21,852 |
|
|
12 |
% |
|
13 |
% |
| Gross profit |
|
8,021 |
|
|
|
5,783 |
|
|
|
6,026 |
|
|
39 |
% |
|
33 |
% |
| Gross profit percentage |
|
32.4 |
% |
|
|
26.2 |
% |
|
|
27.6 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
949 |
|
|
|
923 |
|
|
|
1,132 |
|
|
3 |
% |
|
(16 |
)% |
|
Selling and distribution expenses |
|
2,365 |
|
|
|
2,239 |
|
|
|
2,323 |
|
|
6 |
% |
|
2 |
% |
|
Amortization of purchased intangible assets |
|
— |
|
|
|
— |
|
|
|
78 |
|
|
— |
% |
|
(100 |
)% |
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
13 |
|
|
— |
% |
|
(100 |
)% |
| Operating income |
|
4,707 |
|
|
|
2,621 |
|
|
|
2,480 |
|
|
80 |
% |
|
90 |
% |
| Adjusted EBITDA |
$ |
5,407 |
|
|
$ |
3,361 |
|
|
$ |
3,404 |
|
|
61 |
% |
|
59 |
% |
| |
Six months ended |
|
Change |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Year-on-year |
|
Net sales |
$ |
46,787 |
|
|
$ |
43,713 |
|
|
7 |
% |
| Gross profit |
|
13,804 |
|
|
|
10,207 |
|
|
35 |
% |
| Gross profit percentage |
|
29.5 |
% |
|
|
23.4 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
1,872 |
|
|
|
2,169 |
|
|
(14 |
)% |
|
Selling and distribution expenses |
|
4,604 |
|
|
|
4,647 |
|
|
(1 |
)% |
|
Amortization of purchased intangible assets |
|
— |
|
|
|
161 |
|
|
(100 |
)% |
|
Restructuring expenses |
|
— |
|
|
|
45 |
|
|
(100 |
)% |
| Operating income |
|
7,328 |
|
|
|
3,185 |
|
|
130 |
% |
| Adjusted EBITDA |
$ |
8,768 |
|
|
$ |
5,056 |
|
|
73 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in
Thousands) |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Change |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-end |
| |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
18,724 |
|
|
$ |
19,647 |
|
|
$ |
25,144 |
|
|
(5 |
)% |
|
(26 |
)% |
| Marketable securities |
|
2,414 |
|
|
|
— |
|
|
|
— |
|
|
100 |
% |
|
100 |
% |
| Accounts receivable, net |
|
112,177 |
|
|
|
109,332 |
|
|
|
94,415 |
|
|
3 |
% |
|
19 |
% |
| Inventories |
|
190,947 |
|
|
|
179,545 |
|
|
|
156,590 |
|
|
6 |
% |
|
22 |
% |
| Prepaid expenses and
other |
|
16,434 |
|
|
|
17,069 |
|
|
|
10,723 |
|
|
(4 |
)% |
|
53 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
340,696 |
|
|
|
325,593 |
|
|
|
286,872 |
|
|
5 |
% |
|
19 |
% |
| |
|
|
|
|
|
|
|
|
|
| Property, plant and equipment,
net |
|
128,627 |
|
|
|
128,795 |
|
|
|
129,445 |
|
|
— |
% |
|
(1 |
)% |
| Goodwill |
|
141,725 |
|
|
|
141,725 |
|
|
|
141,725 |
|
|
— |
% |
|
— |
% |
| Purchased intangible assets,
net |
|
206,593 |
|
|
|
212,258 |
|
|
|
217,925 |
|
|
(3 |
)% |
|
(5 |
)% |
| Other long-term assets |
|
92,706 |
|
|
|
95,632 |
|
|
|
103,011 |
|
|
(3 |
)% |
|
(10 |
)% |
| |
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
910,347 |
|
|
$ |
904,003 |
|
|
$ |
878,978 |
|
|
1 |
% |
|
4 |
% |
| |
|
|
|
|
|
|
|
|
|
| LIABILITIES,
REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY |
|
|
| |
|
|
|
|
|
|
|
|
|
| Accounts payable |
$ |
57,559 |
|
|
$ |
71,408 |
|
|
$ |
46,816 |
|
|
(19 |
)% |
|
23 |
% |
| Contract liabilities |
|
32,863 |
|
|
|
31,198 |
|
|
|
32,080 |
|
|
5 |
% |
|
2 |
% |
| Accrued income taxes |
|
9,455 |
|
|
|
5,837 |
|
|
|
4,256 |
|
|
62 |
% |
|
122 |
% |
| Current portion of long-term
debt |
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
— |
% |
|
— |
% |
| Other current liabilities |
|
40,259 |
|
|
|
38,508 |
|
|
|
29,898 |
|
|
5 |
% |
|
35 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
155,136 |
|
|
|
161,951 |
|
|
|
128,050 |
|
|
(4 |
)% |
|
21 |
% |
| |
|
|
|
|
|
|
|
|
|
| Long-term debt |
|
108,069 |
|
|
|
111,686 |
|
|
|
117,798 |
|
|
(3 |
)% |
|
(8 |
)% |
| Deferred tax liabilities |
|
2,214 |
|
|
|
2,122 |
|
|
|
1,908 |
|
|
4 |
% |
|
16 |
% |
| Other long-term
liabilities |
|
59,100 |
|
|
|
58,445 |
|
|
|
63,053 |
|
|
1 |
% |
|
(6 |
)% |
| Redeemable noncontrolling
interest |
|
187,522 |
|
|
|
187,522 |
|
|
|
187,522 |
|
|
— |
% |
|
— |
% |
| Stockholders’ equity |
|
398,306 |
|
|
|
382,277 |
|
|
|
380,647 |
|
|
4 |
% |
|
5 |
% |
| |
|
|
|
|
|
|
|
|
|
| Total liabilities, redeemable
noncontrolling interest, and stockholders’ equity |
$ |
910,347 |
|
|
$ |
904,003 |
|
|
$ |
878,978 |
|
|
1 |
% |
|
4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in Thousands)(unaudited) |
| |
|
|
|
| |
Three months ended |
|
Six months ended |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Jun 30, 2023 |
|
Jun 30, 2022 |
| CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Net income |
$ |
17,526 |
|
|
$ |
2,139 |
|
|
$ |
6,459 |
|
|
$ |
19,665 |
|
|
$ |
2,179 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
3,434 |
|
|
|
3,400 |
|
|
|
3,678 |
|
|
|
6,834 |
|
|
|
7,037 |
|
|
Amortization of purchased intangible assets |
|
5,667 |
|
|
|
5,667 |
|
|
|
12,793 |
|
|
|
11,334 |
|
|
|
25,769 |
|
|
Amortization of deferred debt issuance costs |
|
133 |
|
|
|
138 |
|
|
|
135 |
|
|
|
271 |
|
|
|
267 |
|
|
Amortization of acquisition-related inventory valuation
step-up |
|
— |
|
|
|
— |
|
|
|
172 |
|
|
|
— |
|
|
|
430 |
|
|
Stock-based compensation |
|
1,699 |
|
|
|
5,027 |
|
|
|
2,291 |
|
|
|
6,726 |
|
|
|
4,649 |
|
|
Deferred income taxes |
|
482 |
|
|
|
178 |
|
|
|
2,550 |
|
|
|
660 |
|
|
|
(164 |
) |
|
Other |
|
(28 |
) |
|
|
(405 |
) |
|
|
49 |
|
|
|
(433 |
) |
|
|
90 |
|
|
Change in working capital, net |
|
(17,434 |
) |
|
|
(9,079 |
) |
|
|
(21,007 |
) |
|
|
(26,513 |
) |
|
|
(37,721 |
) |
|
Net cash provided by operating activities |
|
11,479 |
|
|
|
7,065 |
|
|
|
7,120 |
|
|
|
18,544 |
|
|
|
2,536 |
|
| CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Investment in marketable securities |
|
(2,414 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,414 |
) |
|
|
— |
|
|
Proceeds from escrow related to acquisition of business |
|
— |
|
|
|
— |
|
|
|
640 |
|
|
|
— |
|
|
|
640 |
|
|
Acquisition of property, plant and equipment |
|
(2,896 |
) |
|
|
(2,226 |
) |
|
|
(4,783 |
) |
|
|
(5,122 |
) |
|
|
(6,319 |
) |
|
Net cash used in investing activities |
|
(5,310 |
) |
|
|
(2,226 |
) |
|
|
(4,143 |
) |
|
|
(7,536 |
) |
|
|
(5,679 |
) |
| CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Repayments on term loan |
|
(3,750 |
) |
|
|
(6,250 |
) |
|
|
(3,750 |
) |
|
|
(10,000 |
) |
|
|
(7,500 |
) |
|
Payment of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(79 |
) |
|
|
— |
|
|
|
(176 |
) |
|
Distribution to redeemable noncontrolling interest holder |
|
(3,711 |
) |
|
|
(2,600 |
) |
|
|
(2,600 |
) |
|
|
(6,311 |
) |
|
|
(7,000 |
) |
|
Net proceeds from issuance of common stock to employees and
directors |
|
212 |
|
|
|
— |
|
|
|
— |
|
|
|
212 |
|
|
|
— |
|
|
Treasury stock activity |
|
(14 |
) |
|
|
(2,157 |
) |
|
|
(6 |
) |
|
|
(2,171 |
) |
|
|
(1,094 |
) |
|
Net cash used in financing activities |
|
(7,263 |
) |
|
|
(11,007 |
) |
|
|
(6,435 |
) |
|
|
(18,270 |
) |
|
|
(15,770 |
) |
| |
|
|
|
|
|
|
|
|
|
| EFFECTS OF EXCHANGE RATES ON
CASH |
|
171 |
|
|
|
671 |
|
|
|
(99 |
) |
|
|
842 |
|
|
|
(78 |
) |
| |
|
|
|
|
|
|
|
|
|
| NET DECREASE IN CASH AND CASH
EQUIVALENTS |
|
(923 |
) |
|
|
(5,497 |
) |
|
|
(3,557 |
) |
|
|
(6,420 |
) |
|
|
(18,991 |
) |
| CASH AND CASH EQUIVALENTS,
beginning of the period |
|
19,647 |
|
|
|
25,144 |
|
|
|
15,376 |
|
|
|
25,144 |
|
|
|
30,810 |
|
| CASH AND CASH EQUIVALENTS, end
of the period |
$ |
18,724 |
|
|
$ |
19,647 |
|
|
$ |
11,819 |
|
|
$ |
18,724 |
|
|
$ |
11,819 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net income |
|
17,526 |
|
|
|
2,139 |
|
|
|
6,459 |
|
|
719 |
% |
|
171 |
% |
| Interest expense, net |
|
2,432 |
|
|
|
2,381 |
|
|
|
1,263 |
|
|
2 |
% |
|
93 |
% |
| Income tax provision |
|
6,600 |
|
|
|
2,500 |
|
|
|
2,264 |
|
|
164 |
% |
|
192 |
% |
| Depreciation |
|
3,434 |
|
|
|
3,400 |
|
|
|
3,678 |
|
|
1 |
% |
|
(7 |
)% |
| Amortization of purchased
intangible assets |
|
5,667 |
|
|
|
5,667 |
|
|
|
12,793 |
|
|
— |
% |
|
(56 |
)% |
| |
|
|
|
|
|
|
|
|
|
| EBITDA |
|
35,659 |
|
|
|
16,087 |
|
|
|
26,457 |
|
|
122 |
% |
|
35 |
% |
| Stock-based compensation |
|
1,699 |
|
|
|
5,027 |
|
|
|
2,291 |
|
|
(66 |
)% |
|
(26 |
)% |
| CEO transition
expenses(1) |
|
573 |
|
|
|
2,965 |
|
|
|
— |
|
|
(81 |
)% |
|
100 |
% |
| Other expense (income),
net |
|
439 |
|
|
|
200 |
|
|
|
(54 |
) |
|
120 |
% |
|
913 |
% |
| Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
13 |
|
|
— |
% |
|
(100 |
)% |
| Amortization of
acquisition-related inventory valuation step-up |
|
— |
|
|
|
— |
|
|
|
172 |
|
|
— |
% |
|
(100 |
)% |
| Adjusted EBITDA |
$ |
38,370 |
|
|
$ |
24,279 |
|
|
$ |
28,879 |
|
|
58 |
% |
|
33 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(6,594 |
) |
|
|
(4,188 |
) |
|
|
(6,517 |
) |
|
57 |
% |
|
1 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
31,776 |
|
|
$ |
20,091 |
|
|
$ |
22,362 |
|
|
58 |
% |
|
42 |
% |
| |
Six months ended |
|
Change |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Year-on-year |
|
Net income |
$ |
19,665 |
|
|
$ |
2,179 |
|
|
802 |
% |
| Interest expense, net |
|
4,813 |
|
|
|
2,287 |
|
|
110 |
% |
| Income tax provision |
|
9,100 |
|
|
|
1,401 |
|
|
550 |
% |
| Depreciation |
|
6,834 |
|
|
|
7,037 |
|
|
(3 |
)% |
| Amortization of purchased
intangible assets |
|
11,334 |
|
|
|
25,769 |
|
|
(56 |
)% |
| |
|
|
|
|
|
| EBITDA |
|
51,746 |
|
|
|
38,673 |
|
|
34 |
% |
| Stock-based compensation |
|
6,726 |
|
|
|
4,649 |
|
|
45 |
% |
| CEO transition
expenses(1) |
|
3,538 |
|
|
|
— |
|
|
100 |
% |
| Restructuring expenses |
|
— |
|
|
|
45 |
|
|
(100 |
)% |
| Amortization of
acquisition-related inventory valuation step-up |
|
— |
|
|
|
430 |
|
|
(100 |
)% |
| Other expense, net |
|
639 |
|
|
|
155 |
|
|
312 |
% |
| Adjusted EBITDA |
$ |
62,649 |
|
|
$ |
43,952 |
|
|
43 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(10,782 |
) |
|
|
(11,085 |
) |
|
(3 |
)% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
51,867 |
|
|
$ |
32,867 |
|
|
58 |
% |
| |
|
|
|
|
|
|
|
|
|
|
(1) The Company and its former CEO entered into a separation
agreement in the first quarter of 2023. In conjunction with this
event as well as a reprioritization of near-term initiatives, we
incurred certain expenses during the six months ended June 30,
2023, primarily including: (a) severance-related charges for the
former CEO and other impacted employees of $1,948; (b) CEO
transition and executive search firm costs of $1,088; and (c)
contract termination costs of $350.
Adjusted Net Income and Adjusted Diluted Earnings per Share
| |
Three months ended June 30, 2023 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc.(2) |
$ |
13,703 |
|
|
$ |
0.70 |
|
| CEO transition expenses, net
of tax |
|
428 |
|
|
|
0.02 |
|
| As adjusted |
$ |
14,131 |
|
|
$ |
0.72 |
|
(1) Calculated using diluted weighted average shares outstanding
of 19,504,963(2) Net income attributable to DMC Global Inc. prior
to the adjustment of redeemable noncontrolling interest
| |
Three months ended March 31, 2023 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc.(2) |
$ |
909 |
|
|
$ |
0.05 |
|
| CEO transition expenses and
accelerated stock-based compensation, net of tax |
|
5,235 |
|
|
|
0.27 |
|
| As adjusted |
$ |
6,144 |
|
|
$ |
0.32 |
|
(1) Calculated using diluted weighted average shares outstanding
of 19,462,636(2) Net income attributable to DMC Global Inc. prior
to the adjustment of redeemable noncontrolling interest
| |
Three months ended June 30, 2022 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc.(2) |
$ |
5,552 |
|
|
$ |
0.29 |
|
| Amortization of
acquisition-related inventory valuation step-up, net of tax |
|
79 |
|
|
|
— |
|
| NobelClad restructuring
expenses and asset impairments, net of tax |
|
9 |
|
|
|
— |
|
| As adjusted |
$ |
5,640 |
|
|
$ |
0.29 |
|
(1) Calculated using diluted weighted average shares outstanding
of 19,374,736(2) Net income attributable to DMC Global Inc. prior
to the adjustment of redeemable noncontrolling interest
| |
Six months ended June 30, 2023 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc.(2) |
$ |
14,612 |
|
|
$ |
0.75 |
|
| CEO transition expenses and
accelerated stock-based compensation, net of tax(3) |
|
5,663 |
|
|
|
0.29 |
|
| As adjusted |
$ |
20,275 |
|
|
$ |
1.04 |
|
(1) Calculated using diluted weighted average shares outstanding
of 19,485,863(2) Net income attributable to DMC Global Inc. prior
to the adjustment of redeemable noncontrolling interest(3) Includes
CEO transition expenses of $3,538 and accelerated stock-based
compensation of $3,040 related to the vesting of the former CEO’s
outstanding equity awards, net of tax.
| |
Six months ended June 30, 2022 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc.(2) |
$ |
2,264 |
|
|
$ |
0.12 |
|
| Amortization of
acquisition-related inventory valuation step-up, net of tax |
|
199 |
|
|
|
0.01 |
|
| NobelClad restructuring
expenses, net of tax |
|
30 |
|
|
|
— |
|
| As adjusted |
$ |
2,493 |
|
|
$ |
0.13 |
|
(1) Calculated using diluted weighted average shares outstanding
of 19,338,049(2) Net income attributable to DMC Global Inc. prior
to the adjustment of redeemable noncontrolling interest
Segment Adjusted EBITDA
Arcadia
| |
Three months ended |
|
Change |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
9,580 |
|
|
$ |
3,133 |
|
|
$ |
2,222 |
|
|
206 |
% |
|
331 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
889 |
|
|
|
817 |
|
|
|
870 |
|
|
9 |
% |
|
2 |
% |
|
Amortization of purchased intangible assets |
|
5,652 |
|
|
|
5,652 |
|
|
|
12,633 |
|
|
— |
% |
|
(55 |
)% |
|
Stock-based compensation |
|
323 |
|
|
|
579 |
|
|
|
395 |
|
|
(44 |
)% |
|
(18 |
)% |
|
CEO transition expenses |
|
42 |
|
|
|
289 |
|
|
|
— |
|
|
(85 |
)% |
|
100 |
% |
|
Amortization of acquisition-related inventory valuation
step-up |
|
— |
|
|
|
— |
|
|
|
172 |
|
|
— |
% |
|
(100 |
)% |
| Adjusted EBITDA |
|
16,486 |
|
|
|
10,470 |
|
|
|
16,292 |
|
|
57 |
% |
|
1 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(6,594 |
) |
|
$ |
(4,188 |
) |
|
$ |
(6,517 |
) |
|
57 |
% |
|
1 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
9,892 |
|
|
$ |
6,282 |
|
|
$ |
9,775 |
|
|
57 |
% |
|
1 |
% |
| |
Six months ended |
|
Change |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Year-on-year |
|
Operating income (loss), as reported |
$ |
12,713 |
|
|
$ |
(221 |
) |
|
5,852 |
% |
| Adjustments: |
|
|
|
|
|
|
Depreciation |
|
1,706 |
|
|
|
1,411 |
|
|
21 |
% |
|
Amortization of purchased intangible assets |
|
11,304 |
|
|
|
25,441 |
|
|
(56 |
)% |
|
Stock-based compensation |
|
902 |
|
|
|
651 |
|
|
39 |
% |
|
CEO transition expenses |
|
331 |
|
|
|
— |
|
|
100 |
% |
|
Amortization of acquisition-related inventory valuation
step-up |
|
— |
|
|
|
430 |
|
|
(100 |
)% |
| Adjusted EBITDA |
|
26,956 |
|
|
|
27,712 |
|
|
(3 |
)% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(10,782 |
) |
|
$ |
(11,085 |
) |
|
(3 |
)% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
16,174 |
|
|
$ |
16,627 |
|
|
(3 |
)% |
| |
|
|
|
|
|
|
|
|
|
DynaEnergetics
| |
Three months ended |
|
Change |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
17,733 |
|
|
$ |
13,168 |
|
|
$ |
11,309 |
|
|
35 |
% |
|
57 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
1,713 |
|
|
|
1,772 |
|
|
|
1,885 |
|
|
(3 |
)% |
|
(9 |
)% |
|
Amortization of purchased intangible assets |
|
15 |
|
|
|
15 |
|
|
|
82 |
|
|
— |
% |
|
(82 |
)% |
| Adjusted EBITDA |
$ |
19,461 |
|
|
$ |
14,955 |
|
|
$ |
13,276 |
|
|
30 |
% |
|
47 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Six months ended |
|
Change |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Year-on-year |
|
Operating income, as reported |
$ |
30,901 |
|
|
$ |
14,607 |
|
|
112 |
% |
| Adjustments: |
|
|
|
|
|
|
Depreciation |
|
3,485 |
|
|
|
3,784 |
|
|
(8 |
)% |
|
Amortization of purchased intangible assets |
|
30 |
|
|
|
167 |
|
|
(82 |
)% |
| Adjusted EBITDA |
$ |
34,416 |
|
|
$ |
18,558 |
|
|
85 |
% |
| |
|
|
|
|
|
|
|
|
|
|
NobelClad
| |
Three months ended |
|
Change |
| |
Jun 30, 2023 |
|
Mar 31, 2023 |
|
Jun 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
4,707 |
|
|
$ |
2,621 |
|
|
$ |
2,480 |
|
|
80 |
% |
|
90 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
700 |
|
|
|
740 |
|
|
|
833 |
|
|
(5 |
)% |
|
(16 |
)% |
|
Amortization of purchased intangible assets |
|
— |
|
|
|
— |
|
|
|
78 |
|
|
— |
% |
|
(100 |
)% |
|
Restructuring expenses |
|
— |
|
|
|
— |
|
|
|
13 |
|
|
— |
% |
|
(100 |
)% |
| Adjusted EBITDA |
$ |
5,407 |
|
|
$ |
3,361 |
|
|
$ |
3,404 |
|
|
61 |
% |
|
59 |
% |
| |
Six months ended |
|
Change |
| |
Jun 30, 2023 |
|
Jun 30, 2022 |
|
Year-on-year |
|
Operating income, as reported |
$ |
7,328 |
|
|
$ |
3,185 |
|
|
130 |
% |
| Adjustments: |
|
|
|
|
|
|
Depreciation |
|
1,440 |
|
|
|
1,665 |
|
|
(14 |
)% |
|
Amortization of purchased intangible assets |
|
— |
|
|
|
161 |
|
|
(100 |
)% |
|
Restructuring expenses |
|
— |
|
|
|
45 |
|
|
(100 |
)% |
| Adjusted EBITDA |
$ |
8,768 |
|
|
$ |
5,056 |
|
|
73 |
% |
| |
|
|
|
|
|
|
|
|
|
|
CONTACT:Geoff High, Vice President of Investor
Relations303-604-3924
DMC Global (NASDAQ:BOOM)
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