DMC Global Inc. (Nasdaq: BOOM) today reported financial results for
its third quarter ended September 30, 2023.
“Our third quarter sales of $172.1 million were
comparable to the third quarter of 2022, but below our forecasts,”
said Michael Kuta, president & CEO. “While our adjusted EBITDA
was within our forecasted range and we delivered solid free cash
flow, our sales shortfall was disappointing, and was principally
due to lower-than-expected top-line results at our Arcadia and
DynaEnergetics businesses.”
“Arcadia, our architectural building products
business, saw steady demand at its primary regional service centers
and its ultra-high-end residential business. However, third quarter
sales of $71.5 million were down 11% year-over-year due to lower
product pricing, soft demand for commercial interior products, and
brief operational challenges related to the go-live of a new ERP
system. Adjusted EBITDA margin was 18.8%, up from 15.0% in the 2022
third quarter, as the decline in product pricing was not as
pronounced as the year-over-year drop in raw material costs.
“DynaEnergetics, our energy products business,
reported sales of $73.0 million, up 4% versus last year’s third
quarter and down 14% sequentially. Demand in Dyna’s core North
American market was impacted by a 10% sequential decline in U.S.
well completions, as well as customer project delays late in the
quarter. The sales decline in North America was partially offset by
the continued strong performance of Dyna’s international business,
which is on pace to deliver record full-year sales. Dyna’s third
quarter adjusted EBITDA margin was 17.2%, down from 19.8% in last
year’s third quarter and 23.0% in this year’s second quarter. The
decline was related to lower absorption and customer mix.
“NobelClad, our composite metals business,
reported third quarter sales of $27.7 million, up 18% versus last
year’s third quarter and the strongest quarterly performance in
nearly 10 years. Adjusted EBITDA margin was 23.1%, up from 14.6% in
last year’s third quarter. NobelClad is benefitting from robust
activity across several industrial end markets, including liquified
natural gas, downstream energy and petrochemicals. Order backlog at
the end of the third quarter was $61 million versus $64 million at
the end of the second quarter. Rolling 12-month bookings increased
sequentially to $110.9 million from $108.4 million; and the
book-to-bill ratio at the end of the quarter was
1.1.”
Kuta added, “Arcadia and DynaEnergetics both are
taking steps to strengthen sales, profit margins and cash flow.
Arcadia has nearly completed the first phase of an expansion in
paint capacity, which will increase the sales potential of its
commercial and ultra-high-end residential businesses. We also
expect Arcadia’s new ERP system will deliver incremental
operational benefits in the coming quarters. DynaEnergetics is
implementing a series of automation, lean manufacturing and
cost-reduction initiatives designed to enhance profitability and
improve quality. DynaEnergetics has incurred approximately $1
million in fourth-quarter restructuring expenses, which we
anticipate will result in roughly $3 million in annualized
savings.”
Eric Walter, CFO, said, “We recorded
approximately $22 million in third-quarter free cash flow,
reflecting our focus on maximizing profitability and reducing
inventory. We further strengthened our balance sheet in the third
quarter, improving our debt-to-adjusted EBITDA leverage ratio to
1.26x, and our net-debt leverage ratio to 0.89x. This was the
seventh consecutive quarter in which we de-levered DMC’s balance
sheet.”
Walter said roughly half of this year’s $20
million capex budget has been allocated to the fourth quarter. “Our
fourth quarter expenditures should be in a range of $8 million to
$10 million and will include additional investments in painting
capacity at Arcadia and manufacturing automation at
DynaEnergetics.”
Kuta concluded, “Despite macro-economic
uncertainties, I am encouraged by the resiliency of Arcadia’s and
NobelClad’s diverse end markets, and by the expected acceleration
in well-completion activity in DynaEnergetics’ core North American
market beginning early next year. Our long-term strategy is to
deliver adjusted EBITDA margins of 20% or better at the business
level, and we are positioning our businesses to achieve this
objective with greater consistency. I want to thank DMC’s employees
for their consistent dedication and hard work.”
Summary Third
Quarter Results
|
|
Three months ended |
|
Change |
|
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
172,147 |
|
|
$ |
188,664 |
|
|
$ |
174,465 |
|
|
(9)% |
|
(1)% |
| Gross
profit percentage |
|
30.6 |
% |
|
|
32.8 |
% |
|
|
29.4 |
% |
|
|
|
|
|
SG&A |
|
28,713 |
|
|
|
29,226 |
|
|
|
30,544 |
|
|
(2)% |
|
(6) % |
| Net
income |
|
11,525 |
|
|
|
17,526 |
|
|
|
8,213 |
|
|
(34)% |
|
40% |
| Net
income attributable to DMC |
$ |
8,883 |
|
|
$ |
13,703 |
|
|
$ |
6,717 |
|
|
(35)% |
|
32% |
| Diluted
net income per share attributable to DMC |
$ |
0.38 |
|
|
$ |
0.70 |
|
|
$ |
0.46 |
|
|
(46)% |
|
(17)% |
| Adjusted
net income attributable to DMC |
$ |
9,861 |
|
|
$ |
14,131 |
|
|
$ |
6,722 |
|
|
(30)% |
|
47% |
| Adjusted
diluted net income per share |
$ |
0.50 |
|
|
$ |
0.72 |
|
|
$ |
0.35 |
|
|
(31)% |
|
43% |
| Adjusted
EBITDA attributable to DMC |
$ |
24,607 |
|
|
$ |
31,776 |
|
|
$ |
21,751 |
|
|
(23)% |
|
13% |
|
Adjusted EBITDA before NCI allocation |
$ |
29,981 |
|
|
$ |
38,370 |
|
|
$ |
26,577 |
|
|
(22)% |
|
13% |
Arcadia
|
|
Three months ended |
|
Change |
|
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
71,455 |
|
|
$ |
79,158 |
|
|
$ |
80,697 |
|
|
(10)% |
|
(11)% |
| Gross
profit percentage |
|
33.3 |
% |
|
|
34.7 |
% |
|
|
29.6 |
% |
|
|
|
|
| Adjusted
EBITDA attributable to DMC |
$ |
8,060 |
|
|
$ |
9,892 |
|
|
$ |
7,239 |
|
|
(19)% |
|
11% |
|
Adjusted EBITDA before NCI allocation |
|
13,434 |
|
|
|
16,486 |
|
|
|
12,065 |
|
|
(19)% |
|
11% |
- Sales decline reflects reduced
product pricing and brief ERP go-live challenges
DynaEnergetics
|
|
Three months ended |
|
Change |
|
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
72,998 |
|
|
$ |
84,754 |
|
|
$ |
70,372 |
|
|
(14)% |
|
4% |
| Gross
profit percentage |
|
26.8 |
% |
|
|
31.3 |
% |
|
|
30.2 |
% |
|
|
|
|
|
Adjusted EBITDA |
$ |
12,568 |
|
|
$ |
19,461 |
|
|
$ |
13,935 |
|
|
(35)% |
|
(10)% |
- Sequential sales decline reflects
lower North American well-completion activity and project delays at
end of quarter
NobelClad
|
|
Three months ended |
|
Change |
|
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
27,694 |
|
|
$ |
24,752 |
|
|
$ |
23,396 |
|
|
12% |
|
18% |
| Gross
profit percentage |
|
33.6 |
% |
|
|
32.4 |
% |
|
|
27.0 |
% |
|
|
|
|
|
Adjusted EBITDA |
$ |
6,384 |
|
|
$ |
5,407 |
|
|
$ |
3,412 |
|
|
18% |
|
87% |
- Sales growth reflects healthy
pressure vessel construction and strong demand for Cylindra™
cryogenic transition joints
- Gross margin improvement driven by
favorable petrochemical project mix
Fourth Quarter 2023
Guidance
|
Measure |
Expected Range |
|
Sales |
|
|
DMC Consolidated |
$170M - $180M |
|
Arcadia |
$70M - $74M |
|
DynaEnergetics |
$72M - $76M |
|
NobelClad |
$28M - $30M |
|
Consolidated Gross Margin |
28% - 30% |
|
Consolidated SG&A* |
$28M - $29M |
|
Depreciation & Amortization |
~$9.2M |
|
Interest Expense |
~$2.4M |
|
Annualized effective tax rate |
27% - 29% |
|
Adjusted EBITDA attributable to DMC |
$20M - $24M |
|
Adjusted EBITDA before NCI allocation |
$25M - $29M |
|
Capital Expenditures |
$8M - $10M |
*Excludes one-time expenses
Conference call informationThe
conference call will begin today at 5 p.m. Eastern (3 p.m.
Mountain) and will be accessible by dialing 877-407-5783 (or
+1 201-689-8782 for international callers).
Investors are invited to listen to the webcast live via the
Internet at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=VxX1JGSY
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 six months.
*Use of Non-GAAP Financial
Measures Adjusted EBITDA, adjusted net income (loss),
adjusted diluted earnings per share and free cash flow 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, 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. Free cash flow is defined as cash flows provided by
(used in) operating activities minus acquisitions of property,
plant and equipment. Management believes that free cash flow is a
key measure to assess liquidity of the business. 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 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 guidance
on sales, gross margin, SG&A, depreciation and amortization
expense, interest expense, tax rate, adjusted EBITDA, and capital
expenditures, as well as our expectation of record full-year sales
at DynaEnergetics’ international business; stronger sales, margin
and cashflow at Arcadia and DynaEnergetics; operational benefits in
the coming quarters from Arcadia’s new ERP system; initiatives
expected to deliver improvements in profitability and quality at
DynaEnergetics; approximately $3 million in expected annualized
savings at DynaEnergetics from cost reduction initiatives; the
resiliency of Arcadia’s and NobelClad’s end markets; the expected
acceleration in well-completion activity in DynaEnergetics’ core
North American market early next year; and our objective to achieve
consistent quarterly adjusted EBITDA margins of 20% or greater at
our businesses. 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; 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 |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
NET SALES |
$ |
172,147 |
|
|
$ |
188,664 |
|
|
$ |
174,465 |
|
|
(9 |
)% |
|
(1 |
)% |
| COST OF PRODUCTS SOLD |
|
119,550 |
|
|
|
126,774 |
|
|
|
123,127 |
|
|
(6 |
)% |
|
(3 |
)% |
|
Gross profit |
|
52,597 |
|
|
|
61,890 |
|
|
|
51,338 |
|
|
(15 |
)% |
|
2 |
% |
|
Gross profit percentage |
|
30.6 |
% |
|
|
32.8 |
% |
|
|
29.4 |
% |
|
|
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
16,259 |
|
|
|
17,526 |
|
|
|
19,796 |
|
|
(7 |
)% |
|
(18 |
)% |
|
Selling and distribution expenses |
|
12,454 |
|
|
|
11,700 |
|
|
|
10,748 |
|
|
6 |
% |
|
16 |
% |
|
Amortization of purchased intangible assets |
|
5,667 |
|
|
|
5,667 |
|
|
|
7,385 |
|
|
— |
% |
|
(23 |
)% |
|
Restructuring expenses and asset impairments |
|
515 |
|
|
|
— |
|
|
|
8 |
|
|
— |
% |
|
6,338 |
% |
|
Total costs and expenses |
|
34,895 |
|
|
|
34,893 |
|
|
|
37,937 |
|
|
— |
% |
|
(8 |
)% |
| OPERATING INCOME |
|
17,702 |
|
|
|
26,997 |
|
|
|
13,401 |
|
|
(34 |
)% |
|
32 |
% |
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
302 |
|
|
|
(439 |
) |
|
|
120 |
|
|
169 |
% |
|
152 |
% |
|
Interest expense, net |
|
(2,392 |
) |
|
|
(2,432 |
) |
|
|
(1,771 |
) |
|
(2 |
)% |
|
35 |
% |
| INCOME BEFORE INCOME
TAXES |
|
15,612 |
|
|
|
24,126 |
|
|
|
11,750 |
|
|
(35 |
)% |
|
33 |
% |
| INCOME TAX PROVISION |
|
4,087 |
|
|
|
6,600 |
|
|
|
3,537 |
|
|
(38 |
)% |
|
16 |
% |
| NET INCOME |
|
11,525 |
|
|
|
17,526 |
|
|
|
8,213 |
|
|
(34 |
)% |
|
40 |
% |
|
Less: Net income attributable to redeemable noncontrolling
interest |
|
2,642 |
|
|
|
3,823 |
|
|
|
1,496 |
|
|
(31 |
)% |
|
77 |
% |
| NET INCOME ATTRIBUTABLE TO DMC
GLOBAL INC. STOCKHOLDERS |
$ |
8,883 |
|
|
$ |
13,703 |
|
|
$ |
6,717 |
|
|
(35 |
)% |
|
32 |
% |
| NET INCOME PER SHARE
ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.38 |
|
|
$ |
0.70 |
|
|
$ |
0.46 |
|
|
(46 |
)% |
|
(17 |
)% |
|
Diluted |
$ |
0.38 |
|
|
$ |
0.70 |
|
|
$ |
0.46 |
|
|
(46 |
)% |
|
(17 |
)% |
| WEIGHTED AVERAGE SHARES
OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
19,543,251 |
|
|
|
19,497,871 |
|
|
|
19,381,489 |
|
|
— |
% |
|
1 |
% |
|
Diluted |
|
19,596,575 |
|
|
|
19,504,963 |
|
|
|
19,381,794 |
|
|
— |
% |
|
1 |
% |
|
|
Reconciliation to net income attributable to DMC
Global Inc. stockholders after adjustment of redeemable
noncontrolling interest for purposes of calculating earnings per
share
| |
| |
Three months ended |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Net income attributable to DMC Global Inc. stockholders |
$ |
8,883 |
|
|
$ |
13,703 |
|
$ |
6,717 |
| Adjustment of redeemable
noncontrolling interest |
|
(1,263 |
) |
|
|
112 |
|
|
2,256 |
| Net income attributable to DMC
Global Inc. stockholders after adjustment of redeemable
noncontrolling interest |
$ |
7,620 |
|
|
$ |
13,815 |
|
$ |
8,973 |
|
|
Nine months ended |
|
Change |
|
|
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Year-on-year |
|
NET SALES |
$ |
545,152 |
|
|
$ |
479,012 |
|
|
14 |
% |
| COST OF PRODUCTS SOLD |
|
378,454 |
|
|
|
338,669 |
|
|
12 |
% |
|
Gross profit |
|
166,698 |
|
|
|
140,343 |
|
|
19 |
% |
|
Gross profit percentage |
|
30.6 |
% |
|
|
29.3 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
60,285 |
|
|
|
56,330 |
|
|
7 |
% |
|
Selling and distribution expenses |
|
36,978 |
|
|
|
31,383 |
|
|
18 |
% |
|
Amortization of purchased intangible assets |
|
17,001 |
|
|
|
33,154 |
|
|
(49 |
)% |
|
Restructuring expenses and asset impairments |
|
515 |
|
|
|
53 |
|
|
872 |
% |
|
Total costs and expenses |
|
114,779 |
|
|
|
120,920 |
|
|
(5 |
)% |
| OPERATING INCOME |
|
51,919 |
|
|
|
19,423 |
|
|
167 |
% |
| OTHER EXPENSE: |
|
|
|
|
|
|
Other expense, net |
|
(337 |
) |
|
|
(35 |
) |
|
863 |
% |
|
Interest expense, net |
|
(7,205 |
) |
|
|
(4,058 |
) |
|
78 |
% |
| INCOME BEFORE INCOME
TAXES |
|
44,377 |
|
|
|
15,330 |
|
|
189 |
% |
| INCOME TAX PROVISION |
|
13,187 |
|
|
|
4,938 |
|
|
167 |
% |
| NET INCOME |
|
31,190 |
|
|
|
10,392 |
|
|
200 |
% |
|
Less: Net income attributable to redeemable noncontrolling
interest |
|
7,695 |
|
|
|
1,411 |
|
|
445 |
% |
| NET INCOME ATTRIBUTABLE TO DMC
GLOBAL INC. STOCKHOLDERS |
$ |
23,495 |
|
|
$ |
8,981 |
|
|
162 |
% |
| NET INCOME PER SHARE
ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS |
|
|
|
|
|
|
Basic |
$ |
1.07 |
|
|
$ |
0.20 |
|
|
435 |
% |
|
Diluted |
$ |
1.07 |
|
|
$ |
0.20 |
|
|
435 |
% |
| WEIGHTED AVERAGE SHARES
OUTSTANDING: |
|
|
|
|
|
|
Basic |
|
19,492,212 |
|
|
|
19,352,638 |
|
|
1 |
% |
|
Diluted |
|
19,540,978 |
|
|
|
19,357,333 |
|
|
1 |
% |
|
|
Reconciliation to net income attributable to DMC
Global Inc. stockholders after adjustment of redeemable
noncontrolling interest for purposes of calculating earnings per
share
| |
| |
Nine months ended |
| |
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Net income attributable to DMC Global Inc. stockholders |
$ |
23,495 |
|
|
$ |
8,981 |
|
| Adjustment of redeemable
noncontrolling interest |
|
(2,289 |
) |
|
|
(4,996 |
) |
| Net income attributable to DMC
Global Inc. stockholders after adjustment of redeemable
noncontrolling interest |
$ |
21,206 |
|
|
$ |
3,985 |
|
|
|
|
DMC GLOBAL INC. |
|
SEGMENT STATEMENTS OF OPERATIONS |
|
(Amounts in Thousands) |
|
(unaudited) |
|
|
| |
|
Arcadia |
| |
Three months ended |
|
Change |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
71,455 |
|
|
$ |
79,158 |
|
|
$ |
80,697 |
|
|
(10 |
)% |
|
(11 |
)% |
| Gross profit |
|
23,789 |
|
|
|
27,459 |
|
|
|
23,892 |
|
|
(13 |
)% |
|
— |
% |
| Gross profit percentage |
|
33.3 |
% |
|
|
34.7 |
% |
|
|
29.6 |
% |
|
|
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
7,413 |
|
|
|
8,206 |
|
|
|
8,782 |
|
|
(10 |
)% |
|
(16 |
)% |
|
Selling and distribution expenses |
|
4,248 |
|
|
|
4,021 |
|
|
|
4,135 |
|
|
6 |
% |
|
3 |
% |
|
Amortization of purchased intangible assets |
|
5,652 |
|
|
|
5,652 |
|
|
|
7,233 |
|
|
— |
% |
|
(22 |
)% |
| Operating income |
|
6,476 |
|
|
|
9,580 |
|
|
|
3,742 |
|
|
(32 |
)% |
|
73 |
% |
| Adjusted EBITDA |
|
13,434 |
|
|
|
16,486 |
|
|
|
12,065 |
|
|
(19 |
)% |
|
11 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(5,374 |
) |
|
|
(6,594 |
) |
|
|
(4,826 |
) |
|
(19 |
)% |
|
11 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
8,060 |
|
|
$ |
9,892 |
|
|
$ |
7,239 |
|
|
(19 |
)% |
|
11 |
% |
| |
| |
Nine months ended |
|
Change |
| |
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Year-on-year |
|
Net sales |
$ |
230,951 |
|
|
$ |
225,127 |
|
|
3 |
% |
| Gross profit |
|
73,342 |
|
|
|
70,364 |
|
|
4 |
% |
| Gross profit percentage |
|
31.8 |
% |
|
|
31.3 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
23,476 |
|
|
|
22,337 |
|
|
5 |
% |
|
Selling and distribution expenses |
|
13,721 |
|
|
|
11,832 |
|
|
16 |
% |
|
Amortization of purchased intangible assets |
|
16,956 |
|
|
|
32,674 |
|
|
(48 |
)% |
| Operating income |
|
19,189 |
|
|
|
3,521 |
|
|
445 |
% |
| Adjusted EBITDA |
|
40,390 |
|
|
|
39,777 |
|
|
2 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(16,156 |
) |
|
|
(15,911 |
) |
|
2 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
24,234 |
|
|
$ |
23,866 |
|
|
2 |
% |
| |
|
DynaEnergetics |
| |
Three months ended |
|
Change |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
72,998 |
|
|
$ |
84,754 |
|
|
$ |
70,372 |
|
|
(14 |
)% |
|
4 |
% |
| Gross profit |
|
19,585 |
|
|
|
26,552 |
|
|
|
21,237 |
|
|
(26 |
)% |
|
(8 |
)% |
| Gross profit percentage |
|
26.8 |
% |
|
|
31.3 |
% |
|
|
30.2 |
% |
|
|
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
3,095 |
|
|
|
3,577 |
|
|
|
4,924 |
|
|
(13 |
)% |
|
(37 |
)% |
|
Selling and distribution expenses |
|
5,604 |
|
|
|
5,227 |
|
|
|
4,257 |
|
|
7 |
% |
|
32 |
% |
|
Amortization of purchased intangible assets |
|
15 |
|
|
|
15 |
|
|
|
78 |
|
|
— |
% |
|
(81 |
)% |
| Operating income |
|
10,871 |
|
|
|
17,733 |
|
|
|
11,978 |
|
|
(39 |
)% |
|
(9 |
)% |
| Adjusted EBITDA |
$ |
12,568 |
|
|
$ |
19,461 |
|
|
$ |
13,935 |
|
|
(35 |
)% |
|
(10 |
)% |
|
|
Nine months ended |
|
Change |
|
|
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Year-on-year |
|
Net sales |
$ |
239,720 |
|
|
$ |
186,776 |
|
|
28 |
% |
| Gross profit |
|
70,574 |
|
|
|
53,805 |
|
|
31 |
% |
| Gross profit percentage |
|
29.4 |
% |
|
|
28.8 |
% |
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
General and administrative expenses |
|
12,869 |
|
|
|
14,657 |
|
|
(12 |
)% |
|
Selling and distribution expenses |
|
15,888 |
|
|
|
12,318 |
|
|
29 |
% |
|
Amortization of purchased intangible assets |
|
45 |
|
|
|
245 |
|
|
(82 |
)% |
| Operating income |
|
41,772 |
|
|
|
26,585 |
|
|
57 |
% |
| Adjusted EBITDA |
$ |
46,984 |
|
|
$ |
32,493 |
|
|
45 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
NobelClad |
| |
Three months ended |
|
Change |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
27,694 |
|
|
$ |
24,752 |
|
|
$ |
23,396 |
|
|
12 |
% |
|
18 |
% |
| Gross profit |
|
9,309 |
|
|
|
8,021 |
|
|
|
6,325 |
|
|
16 |
% |
|
47 |
% |
| Gross profit percentage |
|
33.6 |
% |
|
|
32.4 |
% |
|
|
27.0 |
% |
|
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
1,106 |
|
|
|
949 |
|
|
|
1,475 |
|
|
17 |
% |
|
(25 |
)% |
|
Selling and distribution expenses |
|
2,531 |
|
|
|
2,365 |
|
|
|
2,263 |
|
|
7 |
% |
|
12 |
% |
|
Amortization of purchased intangible assets |
|
— |
|
|
|
— |
|
|
|
74 |
|
|
— |
% |
|
(100 |
)% |
|
Restructuring expenses and asset impairments |
|
440 |
|
|
|
— |
|
|
|
8 |
|
|
— |
% |
|
5,400 |
% |
| Operating income |
|
5,232 |
|
|
|
4,707 |
|
|
|
2,505 |
|
|
11 |
% |
|
109 |
% |
| Adjusted EBITDA |
$ |
6,384 |
|
|
$ |
5,407 |
|
|
$ |
3,412 |
|
|
18 |
% |
|
87 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Nine months ended |
|
Change |
| |
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Year-on-year |
|
Net sales |
$ |
74,481 |
|
|
$ |
67,109 |
|
|
11 |
% |
| Gross profit |
|
23,113 |
|
|
|
16,532 |
|
|
40 |
% |
| Gross profit percentage |
|
31.0 |
% |
|
|
24.6 |
% |
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
General and administrative expenses |
|
2,978 |
|
|
|
3,644 |
|
|
(18 |
)% |
|
Selling and distribution expenses |
|
7,135 |
|
|
|
6,910 |
|
|
3 |
% |
|
Amortization of purchased intangible assets |
|
— |
|
|
|
235 |
|
|
(100 |
)% |
|
Restructuring expenses and asset impairments |
|
440 |
|
|
|
53 |
|
|
730 |
% |
| Operating income |
|
12,560 |
|
|
|
5,690 |
|
|
121 |
% |
| Adjusted EBITDA |
$ |
15,152 |
|
|
$ |
8,468 |
|
|
79 |
% |
|
|
|
DMC GLOBAL INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(Amounts in Thousands) |
|
|
|
|
|
|
|
|
|
|
Change |
|
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-end |
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
28,060 |
|
$ |
18,724 |
|
$ |
25,144 |
|
50 |
% |
|
12 |
% |
| Marketable securities |
|
7,516 |
|
|
2,414 |
|
|
— |
|
211 |
% |
|
100 |
% |
| Accounts receivable, net |
|
105,519 |
|
|
112,177 |
|
|
94,415 |
|
(6 |
)% |
|
12 |
% |
| Inventories |
|
185,777 |
|
|
190,947 |
|
|
156,590 |
|
(3 |
)% |
|
19 |
% |
| Prepaid expenses and
other |
|
9,945 |
|
|
16,434 |
|
|
10,723 |
|
(39 |
)% |
|
(7 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
336,817 |
|
|
340,696 |
|
|
286,872 |
|
(1 |
)% |
|
17 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Property, plant and equipment,
net |
|
126,095 |
|
|
128,627 |
|
|
129,445 |
|
(2 |
)% |
|
(3 |
)% |
| Goodwill |
|
141,725 |
|
|
141,725 |
|
|
141,725 |
|
— |
% |
|
— |
% |
| Purchased intangible assets,
net |
|
200,925 |
|
|
206,593 |
|
|
217,925 |
|
(3 |
)% |
|
(8 |
)% |
| Other long-term assets |
|
90,716 |
|
|
92,706 |
|
|
103,011 |
|
(2 |
)% |
|
(12 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
896,278 |
|
$ |
910,347 |
|
$ |
878,978 |
|
(2 |
)% |
|
2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| LIABILITIES,
REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
$ |
45,589 |
|
$ |
57,559 |
|
$ |
46,816 |
|
(21 |
)% |
|
(3 |
)% |
| Contract liabilities |
|
28,557 |
|
|
32,863 |
|
|
32,080 |
|
(13 |
)% |
|
(11 |
)% |
| Accrued income taxes |
|
11,527 |
|
|
9,455 |
|
|
4,256 |
|
22 |
% |
|
171 |
% |
| Current portion of long-term
debt |
|
15,000 |
|
|
15,000 |
|
|
15,000 |
|
— |
% |
|
— |
% |
| Other current liabilities |
|
36,954 |
|
|
40,259 |
|
|
29,898 |
|
(8 |
)% |
|
24 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
137,627 |
|
|
155,136 |
|
|
128,050 |
|
(11 |
)% |
|
7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Long-term debt |
|
104,460 |
|
|
108,069 |
|
|
117,798 |
|
(3 |
)% |
|
(11 |
)% |
| Deferred tax liabilities |
|
3,336 |
|
|
2,214 |
|
|
1,908 |
|
51 |
% |
|
75 |
% |
| Other long-term
liabilities |
|
58,167 |
|
|
59,100 |
|
|
63,053 |
|
(2 |
)% |
|
(8 |
)% |
| Redeemable noncontrolling
interest |
|
187,522 |
|
|
187,522 |
|
|
187,522 |
|
— |
% |
|
— |
% |
| Stockholders’ equity |
|
405,166 |
|
|
398,306 |
|
|
380,647 |
|
2 |
% |
|
6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities, redeemable
noncontrolling interest, and stockholders’ equity |
$ |
896,278 |
|
$ |
910,347 |
|
$ |
878,978 |
|
(2 |
)% |
|
2 |
% |
|
|
|
DMC GLOBAL INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(Amounts in Thousands) |
|
(unaudited) |
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sep 30, 2023 |
|
Sep 30, 2022 |
| CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
11,525 |
|
|
$ |
17,526 |
|
|
$ |
8,213 |
|
|
$ |
31,190 |
|
|
$ |
10,392 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
3,460 |
|
|
|
3,434 |
|
|
|
3,541 |
|
|
|
10,294 |
|
|
|
10,578 |
|
|
Amortization of purchased intangible assets |
|
5,667 |
|
|
|
5,667 |
|
|
|
7,385 |
|
|
|
17,001 |
|
|
|
33,154 |
|
|
Amortization of deferred debt issuance costs |
|
141 |
|
|
|
133 |
|
|
|
145 |
|
|
|
412 |
|
|
|
412 |
|
|
Amortization of acquisition-related inventory valuation
step-up |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
430 |
|
|
Stock-based compensation |
|
1,832 |
|
|
|
1,699 |
|
|
|
2,242 |
|
|
|
8,558 |
|
|
|
6,891 |
|
|
Deferred income taxes |
|
1,558 |
|
|
|
482 |
|
|
|
(1,448 |
) |
|
|
2,218 |
|
|
|
(1,612 |
) |
|
Restructuring expenses and asset impairments |
|
515 |
|
|
|
— |
|
|
|
8 |
|
|
|
515 |
|
|
|
53 |
|
|
Other |
|
(1,607 |
) |
|
|
(28 |
) |
|
|
(340 |
) |
|
|
(2,040 |
) |
|
|
(295 |
) |
|
Change in working capital, net |
|
1,113 |
|
|
|
(17,434 |
) |
|
|
2,053 |
|
|
|
(25,400 |
) |
|
|
(35,668 |
) |
|
Net cash provided by operating activities |
|
24,204 |
|
|
|
11,479 |
|
|
|
21,799 |
|
|
|
42,748 |
|
|
|
24,335 |
|
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment in marketable securities |
|
(5,102 |
) |
|
|
(2,414 |
) |
|
|
— |
|
|
|
(7,516 |
) |
|
|
— |
|
|
Consideration adjustments related to acquisition of business |
|
— |
|
|
|
— |
|
|
|
(2,674 |
) |
|
|
— |
|
|
|
(2,034 |
) |
|
Acquisition of property, plant and equipment |
|
(2,333 |
) |
|
|
(2,896 |
) |
|
|
(4,958 |
) |
|
|
(7,455 |
) |
|
|
(11,277 |
) |
|
Net cash used in investing activities |
|
(7,435 |
) |
|
|
(5,310 |
) |
|
|
(7,632 |
) |
|
|
(14,971 |
) |
|
|
(13,311 |
) |
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Repayments on term loan |
|
(3,750 |
) |
|
|
(3,750 |
) |
|
|
(3,750 |
) |
|
|
(13,750 |
) |
|
|
(11,250 |
) |
|
Payment of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(179 |
) |
|
Distribution to redeemable noncontrolling interest holder |
|
(4,034 |
) |
|
|
(3,711 |
) |
|
|
(3,293 |
) |
|
|
(10,345 |
) |
|
|
(10,293 |
) |
|
Net proceeds from issuance of common stock to employees and
directors |
|
— |
|
|
|
212 |
|
|
|
— |
|
|
|
212 |
|
|
|
— |
|
|
Treasury stock activity |
|
(157 |
) |
|
|
(14 |
) |
|
|
2 |
|
|
|
(2,328 |
) |
|
|
(1,092 |
) |
|
Net cash used in financing activities |
|
(7,941 |
) |
|
|
(7,263 |
) |
|
|
(7,044 |
) |
|
|
(26,211 |
) |
|
|
(22,814 |
) |
| |
|
|
|
|
|
|
|
|
|
| EFFECTS OF EXCHANGE RATES ON
CASH |
|
508 |
|
|
|
171 |
|
|
|
(456 |
) |
|
|
1,350 |
|
|
|
(534 |
) |
| |
|
|
|
|
|
|
|
|
|
| NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
9,336 |
|
|
|
(923 |
) |
|
|
6,667 |
|
|
|
2,916 |
|
|
|
(12,324 |
) |
| CASH AND CASH EQUIVALENTS,
beginning of the period |
|
18,724 |
|
|
|
19,647 |
|
|
|
11,819 |
|
|
|
25,144 |
|
|
|
30,810 |
|
| CASH AND CASH EQUIVALENTS, end
of the period |
$ |
28,060 |
|
|
$ |
18,724 |
|
|
$ |
18,486 |
|
|
$ |
28,060 |
|
|
$ |
18,486 |
|
|
|
|
DMC GLOBAL INC. |
|
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST |
|
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS |
|
(Amounts in Thousands) |
|
(unaudited) |
|
|
| DMC
Global |
| |
| EBITDA and
Adjusted EBITDA |
| |
Three months ended |
|
Change |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Net income |
|
11,525 |
|
|
|
17,526 |
|
|
|
8,213 |
|
|
(34 |
)% |
|
40 |
% |
| Interest expense, net |
|
2,392 |
|
|
|
2,432 |
|
|
|
1,771 |
|
|
(2 |
)% |
|
35 |
% |
| Income tax provision |
|
4,087 |
|
|
|
6,600 |
|
|
|
3,537 |
|
|
(38 |
)% |
|
16 |
% |
| Depreciation |
|
3,460 |
|
|
|
3,434 |
|
|
|
3,541 |
|
|
1 |
% |
|
(2 |
)% |
| Amortization of purchased
intangible assets |
|
5,667 |
|
|
|
5,667 |
|
|
|
7,385 |
|
|
— |
% |
|
(23 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
27,131 |
|
|
|
35,659 |
|
|
|
24,447 |
|
|
(24 |
)% |
|
11 |
% |
| Stock-based compensation |
|
1,832 |
|
|
|
1,699 |
|
|
|
2,242 |
|
|
8 |
% |
|
(18 |
)% |
| CEO transition expenses
(1) |
|
805 |
|
|
|
573 |
|
|
|
— |
|
|
40 |
% |
|
100 |
% |
| Other (income) expense,
net |
|
(302 |
) |
|
|
439 |
|
|
|
(120 |
) |
|
169 |
% |
|
152 |
% |
| Restructuring expenses and
asset impairments |
|
515 |
|
|
|
— |
|
|
|
8 |
|
|
100 |
% |
|
6,338 |
% |
| Adjusted EBITDA |
$ |
29,981 |
|
|
$ |
38,370 |
|
|
$ |
26,577 |
|
|
(22 |
)% |
|
13 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(5,374 |
) |
|
|
(6,594 |
) |
|
|
(4,826 |
) |
|
(19 |
)% |
|
11 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
24,607 |
|
|
$ |
31,776 |
|
|
$ |
21,751 |
|
|
(23 |
)% |
|
13 |
% |
| |
| |
Nine months ended |
|
Change |
| |
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Year-on-year |
|
Net income |
$ |
31,190 |
|
|
$ |
10,392 |
|
|
200 |
% |
| Interest expense, net |
|
7,205 |
|
|
|
4,058 |
|
|
78 |
% |
| Income tax provision |
|
13,187 |
|
|
|
4,938 |
|
|
167 |
% |
| Depreciation |
|
10,294 |
|
|
|
10,578 |
|
|
(3 |
)% |
| Amortization of purchased
intangible assets |
|
17,001 |
|
|
|
33,154 |
|
|
(49 |
)% |
| |
|
|
|
|
|
|
| EBITDA |
|
78,877 |
|
|
|
63,120 |
|
|
25 |
% |
| Stock-based compensation |
|
8,558 |
|
|
|
6,891 |
|
|
24 |
% |
| CEO transition expenses
(1) |
|
4,343 |
|
|
|
— |
|
|
100 |
% |
| Restructuring expenses and
asset impairments |
|
515 |
|
|
|
53 |
|
|
872 |
% |
| Amortization of
acquisition-related inventory valuation step-up |
|
— |
|
|
|
430 |
|
|
(100 |
)% |
| Other expense, net |
|
337 |
|
|
|
35 |
|
|
863 |
% |
| Adjusted EBITDA |
$ |
92,630 |
|
|
$ |
70,529 |
|
|
31 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(16,156 |
) |
|
|
(15,911 |
) |
|
2 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
76,474 |
|
|
$ |
54,618 |
|
|
40 |
% |
| |
(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 nine months
ended September 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 $1,893; and (c) contract termination costs of $350.
| Adjusted Net
Income and Adjusted Diluted Earnings per Share |
| |
| |
Three months ended September 30, 2023 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc.(2) |
$ |
8,883 |
|
$ |
0.45 |
| CEO transition expenses, net
of tax |
|
620 |
|
|
0.03 |
| Restructuring expenses and
asset impairments, net of tax |
|
358 |
|
|
0.02 |
| As adjusted |
$ |
9,861 |
|
$ |
0.50 |
(1) Calculated using diluted weighted average
shares outstanding of 19,596,575(2) Net income attributable to DMC
Global Inc. prior to the adjustment of redeemable noncontrolling
interest
| |
| |
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 September 30, 2022 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc. (2) |
$ |
6,717 |
|
$ |
0.35 |
| NobelClad restructuring
expenses, net of tax |
|
5 |
|
|
— |
| As adjusted |
$ |
6,722 |
|
$ |
0.35 |
(1) Calculated using diluted weighted average
shares outstanding of 19,381,794(2) Net income attributable to DMC
Global Inc. prior to the adjustment of redeemable noncontrolling
interest
| |
| |
Nine months ended September 30, 2023 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc. (2) |
$ |
23,495 |
|
$ |
1.20 |
| CEO transition expenses and
accelerated stock-based compensation, net of tax (3) |
|
6,284 |
|
|
0.32 |
| Restructuring expenses and
asset impairments, net of tax |
|
358 |
|
|
0.02 |
| As adjusted |
$ |
30,137 |
|
$ |
1.54 |
(1) Calculated using diluted weighted average
shares outstanding of 19,540,978(2) Net income attributable to DMC
Global Inc. prior to the adjustment of redeemable noncontrolling
interest(3) Includes CEO transition expenses of $4,343 and
accelerated stock-based compensation of $3,040 related to the
vesting of the former CEO’s outstanding equity awards, net of
tax.
| |
| |
Nine months ended September 30, 2022 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc. (2) |
$ |
8,981 |
|
$ |
0.47 |
| Amortization of
acquisition-related inventory valuation step-up, net of tax |
|
199 |
|
|
0.01 |
| NobelClad restructuring
expenses, net of tax |
|
36 |
|
|
— |
| As adjusted |
$ |
9,216 |
|
$ |
0.48 |
(1) Calculated using diluted weighted average
shares outstanding of 19,357,333(2) Net income attributable to DMC
Global Inc. prior to the adjustment of redeemable noncontrolling
interest
| Segment Adjusted
EBITDA |
| |
|
Arcadia |
| |
| |
Three months ended |
|
Change |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
6,476 |
|
|
$ |
9,580 |
|
|
$ |
3,742 |
|
|
(32 |
)% |
|
73 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
969 |
|
|
|
889 |
|
|
|
733 |
|
|
9 |
% |
|
32 |
% |
|
Amortization of purchased intangible assets |
|
5,652 |
|
|
|
5,652 |
|
|
|
7,233 |
|
|
— |
% |
|
(22 |
)% |
|
Stock-based compensation |
|
337 |
|
|
|
323 |
|
|
|
357 |
|
|
4 |
% |
|
(6 |
)% |
|
CEO transition expenses |
|
— |
|
|
|
42 |
|
|
|
— |
|
|
(100 |
)% |
|
— |
% |
| Adjusted EBITDA |
|
13,434 |
|
|
|
16,486 |
|
|
|
12,065 |
|
|
(19 |
)% |
|
11 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(5,374 |
) |
|
$ |
(6,594 |
) |
|
$ |
(4,826 |
) |
|
(19 |
)% |
|
11 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
8,060 |
|
|
$ |
9,892 |
|
|
$ |
7,239 |
|
|
(19 |
)% |
|
11 |
% |
|
|
|
|
Nine months ended |
|
Change |
|
|
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Year-on-year |
|
Operating income, as reported |
$ |
19,189 |
|
|
$ |
3,521 |
|
|
445 |
% |
| Adjustments: |
|
|
|
|
|
|
|
Depreciation |
|
2,675 |
|
|
|
2,144 |
|
|
25 |
% |
|
Amortization of purchased intangible assets |
|
16,956 |
|
|
|
32,674 |
|
|
(48 |
)% |
|
Stock-based compensation |
|
1,239 |
|
|
|
1,008 |
|
|
23 |
% |
|
CEO transition expenses |
|
331 |
|
|
|
— |
|
|
100 |
% |
|
Amortization of acquisition-related inventory valuation
step-up |
|
— |
|
|
|
430 |
|
|
(100 |
)% |
| Adjusted EBITDA |
|
40,390 |
|
|
|
39,777 |
|
|
2 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(16,156 |
) |
|
$ |
(15,911 |
) |
|
2 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
24,234 |
|
|
$ |
23,866 |
|
|
2 |
% |
|
DynaEnergetics |
| |
Three months ended |
|
Change |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
10,871 |
|
$ |
17,733 |
|
$ |
11,978 |
|
(39 |
)% |
|
(9 |
)% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
1,682 |
|
|
1,713 |
|
|
1,879 |
|
(2 |
)% |
|
(10 |
)% |
|
Amortization of purchased intangible assets |
|
15 |
|
|
15 |
|
|
78 |
|
— |
% |
|
(81 |
)% |
| Adjusted EBITDA |
$ |
12,568 |
|
$ |
19,461 |
|
$ |
13,935 |
|
(35 |
)% |
|
(10 |
)% |
| |
| |
Nine months ended |
|
Change |
| |
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Year-on-year |
|
Operating income, as reported |
$ |
41,772 |
|
$ |
26,585 |
|
57 |
% |
| Adjustments: |
|
|
|
|
|
|
|
Depreciation |
|
5,167 |
|
|
5,663 |
|
(9 |
)% |
|
Amortization of purchased intangible assets |
|
45 |
|
|
245 |
|
(82 |
)% |
| Adjusted EBITDA |
$ |
46,984 |
|
$ |
32,493 |
|
45 |
% |
| |
NobelClad
| |
Three months ended |
|
Change |
| |
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Sep 30, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
5,232 |
|
$ |
4,707 |
|
$ |
2,505 |
|
11 |
% |
|
109 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
712 |
|
|
700 |
|
|
825 |
|
2 |
% |
|
(14 |
)% |
|
Amortization of purchased intangible assets |
|
— |
|
|
— |
|
|
74 |
|
— |
% |
|
(100 |
)% |
|
Restructuring expenses and asset impairments |
|
440 |
|
|
— |
|
|
8 |
|
100 |
% |
|
5,400 |
% |
| Adjusted EBITDA |
$ |
6,384 |
|
$ |
5,407 |
|
$ |
3,412 |
|
18 |
% |
|
87 |
% |
|
|
|
|
Nine months ended |
|
Change |
|
|
Sep 30, 2023 |
|
Sep 30, 2022 |
|
Year-on-year |
|
Operating income, as reported |
$ |
12,560 |
|
$ |
5,690 |
|
121 |
% |
| Adjustments: |
|
|
|
|
|
|
|
Depreciation |
|
2,152 |
|
|
2,490 |
|
(14 |
)% |
|
Amortization of purchased intangible assets |
|
— |
|
|
235 |
|
(100 |
)% |
|
Restructuring expenses and asset impairments |
|
440 |
|
|
53 |
|
730 |
% |
| Adjusted EBITDA |
$ |
15,152 |
|
$ |
8,468 |
|
79 |
% |
|
|
|
CONTACT: |
| Geoff High, Vice
President of Investor Relations |
| 303-604-3924 |
| |
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
