DMC Global Inc. (Nasdaq: BOOM) today reported financial results for
its fourth quarter ended December 31, 2023.
Michael Kuta, president and CEO, said, “The
fourth quarter marked the end of a milestone year for DMC. In
addition to reporting record sales, adjusted EBITDA and free cash
flow, we refined the operating strategies of our three businesses
and initiated a review of alternative structures for DMC’s
portfolio as part of a broader strategy for enhancing stakeholder
value.
“At the business level, the fourth quarter was
notable for the varied conditions across our industrial end
markets. At Arcadia, our architectural building products business,
lower pricing impacted several of our markets in the western and
southwestern United States. Arcadia’s fourth quarter sales were
$68.0 million, down 9% from the 2022 fourth quarter. Adjusted
EBITDA margin improved to 13.6% from 9.6% in the comparable 2022
fourth quarter, as the decline in product pricing was not as
pronounced as the drop in raw material costs.
“DynaEnergetics, our oilfield products business,
reported continued strong demand in its international and North
American markets. However, industry consolidation in the United
States impacted pricing. Dyna’s fourth quarter sales were $75.3
million, down 3% versus the 2022 fourth quarter, but up 3%
sequentially. Adjusted EBITDA margin was 12.3% versus 18.6% in the
prior-year fourth quarter and 17.2% in the 2023 third quarter. We
expect the new automation and operational-excellence initiatives
coming on-line in 2024 will improve profitability at Dyna.
“NobelClad, our composite metals business,
continued to capitalize on healthy market conditions and delivered
a very strong fourth quarter. Sales of $30.8 million were up 33%
year-over-year. The increase, combined with a favorable product
mix, led to adjusted EBITDA margins of 24.7%, up from 14.8% in the
2022 fourth quarter.
“While challenging conditions in Arcadia’s
markets will lead to a soft first quarter, we anticipate the
business will experience improved demand during the balance of the
year. Moreover, the recent addition of new painting capacity has
improved Arcadia’s ability to capitalize on expected increases in
activity.
“At Dyna, strong demand for the new Gravity 2.0
self-orienting perforating system should be additive to the
expected margin benefits of improved manufacturing efficiencies. We
believe 2024 will be another strong year at NobelClad, as there are
a broad range of large project opportunities for both traditional
and new clad-plate applications.
“As we enter 2024, our primary objective is to
unlock value for DMC’s shareholders,” Kuta said. “Two key steps in
this process are the simplification of our portfolio and maximizing
the long-term growth opportunities at Arcadia. We are working with
our financial advisors to explore strategic alternatives for
NobelClad and DynaEnergetics, two valuable and innovative
businesses that will continue to lead their respective industries.
We also intend to capitalize on Arcadia’s differentiated business
model and large addressable market, and are pursuing a range of
compelling growth initiatives.”
Eric Walter, CFO, said “Our new $300 million
senior secured credit facility has strengthened DMC’s balance sheet
and enhanced our financial flexibility as we execute our strategy.
We believe we can fund our growth programs while maintaining our
leverage and debt-service costs at prudent levels.”
Kuta added, “We have the strategy, the
leadership team and the capital structure to be successful. We also
have an extraordinary team of dedicated employees who have enabled
the success of our businesses. I sincerely thank them for their
continued dedication.”
Summary Fourth Quarter
Results
|
|
Three months ended |
|
Change |
| (Amounts
in 000’s, except Per Share Data) |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
174,036 |
|
|
$ |
172,147 |
|
|
$ |
175,074 |
|
|
1 |
% |
|
(1 |
)% |
| Gross
profit percentage |
|
26.1 |
% |
|
|
30.6 |
% |
|
|
25.8 |
% |
|
|
|
|
|
SG&A |
$ |
27,179 |
|
|
$ |
28,713 |
|
|
$ |
30,636 |
|
|
(5 |
)% |
|
(11 |
)% |
| Net
income |
$ |
3,569 |
|
|
$ |
11,525 |
|
|
$ |
3,441 |
|
|
(69 |
)% |
|
4 |
% |
| Net
income attributable to DMC |
$ |
2,764 |
|
|
$ |
8,883 |
|
|
$ |
3,266 |
|
|
(69 |
)% |
|
(15 |
)% |
| Diluted
net income per share attributable to DMC |
$ |
0.01 |
|
|
$ |
0.38 |
|
|
$ |
0.52 |
|
|
(97 |
)% |
|
(98 |
)% |
| Adjusted
net income attributable to DMC |
$ |
5,179 |
|
|
$ |
9,861 |
|
|
$ |
4,259 |
|
|
(47 |
)% |
|
22 |
% |
| Adjusted
diluted net income per share |
$ |
0.26 |
|
|
$ |
0.50 |
|
|
$ |
0.22 |
|
|
(48 |
)% |
|
18 |
% |
| Adjusted
EBITDA attributable to DMC |
$ |
19,589 |
|
|
$ |
24,607 |
|
|
$ |
19,581 |
|
|
(20 |
)% |
|
— |
% |
|
Adjusted EBITDA before NCI allocation |
$ |
23,278 |
|
|
$ |
29,981 |
|
|
$ |
22,438 |
|
|
(22 |
)% |
|
4 |
% |
Arcadia
|
|
Three months ended |
|
Change |
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
67,958 |
|
|
$ |
71,455 |
|
|
$ |
74,400 |
|
|
(5 |
)% |
|
(9 |
)% |
| Gross
profit percentage |
|
27.8 |
% |
|
|
33.3 |
% |
|
|
24.2 |
% |
|
|
|
|
|
| Adjusted
EBITDA attributable to DMC |
$ |
5,533 |
|
|
$ |
8,060 |
|
|
$ |
4,286 |
|
|
(31 |
)% |
|
29 |
% |
|
Adjusted EBITDA before NCI allocation |
|
9,222 |
|
|
|
13,434 |
|
|
|
7,143 |
|
|
(31 |
)% |
|
29 |
% |
- Acadia’s year-over-year improvement
in adjusted EBITDA margin reflects a less pronounced drop in
product pricing as compared to aluminum costs.
DynaEnergetics
|
|
Three months ended |
|
Change |
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
75,306 |
|
|
$ |
72,998 |
|
|
$ |
77,551 |
|
|
3 |
% |
|
(3 |
)% |
| Gross
profit percentage |
|
21.4 |
% |
|
|
26.8 |
% |
|
|
28.1 |
% |
|
|
|
|
|
|
Adjusted EBITDA |
$ |
9,286 |
|
|
$ |
12,568 |
|
|
$ |
14,439 |
|
|
(26 |
)% |
|
(36 |
)% |
- Fourth quarter 2023 adjusted EBITDA
was negatively impacted by $1.0 million in bad debt expense.
NobelClad
|
|
Three months ended |
|
Change |
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
30,772 |
|
|
$ |
27,694 |
|
|
$ |
23,123 |
|
|
11 |
% |
|
33 |
% |
| Gross
profit percentage |
|
33.8 |
% |
|
|
33.6 |
% |
|
|
23.9 |
% |
|
|
|
|
|
Adjusted EBITDA |
$ |
7,608 |
|
|
$ |
6,384 |
|
|
$ |
3,433 |
|
|
19 |
% |
|
122 |
% |
- NobelClad ended 2023 with an order
backlog of $59 million versus $61 million at the end of the third
quarter.
- Rolling 12-month bookings were
$109.8 million versus $110.9 million at the end of the third
quarter; and the book-to-bill ratio was 1.04.
Summary 2023 Results
|
|
Twelve months ended |
Change |
|
|
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
Net sales |
$ |
719,188 |
|
|
$ |
654,086 |
|
|
10 |
% |
| Gross
profit percentage |
|
29.5 |
% |
|
|
28.4 |
% |
|
|
|
SG&A |
$ |
124,442 |
|
|
$ |
118,349 |
|
|
5 |
% |
| Net
income |
$ |
34,759 |
|
|
$ |
13,833 |
|
|
151 |
% |
| Net
income attributable to DMC |
$ |
26,259 |
|
|
$ |
12,247 |
|
|
114 |
% |
| Diluted
net income per share attributable to DMC |
$ |
1.08 |
|
|
$ |
0.72 |
|
|
50 |
% |
| Adjusted
net income attributable to DMC |
$ |
35,316 |
|
|
$ |
13,475 |
|
|
162 |
% |
| Adjusted
diluted net income per share |
$ |
1.81 |
|
|
$ |
0.70 |
|
|
159 |
% |
| Adjusted
EBITDA attributable to DMC |
$ |
96,063 |
|
|
$ |
74,199 |
|
|
29 |
% |
|
Adjusted EBITDA before NCI allocation |
$ |
115,908 |
|
|
$ |
92,967 |
|
|
25 |
% |
First Quarter 2024
Guidance
|
Measure |
Expected Range |
|
Sales |
|
|
DMC Consolidated |
$168M - $178M |
|
Arcadia |
$67M - $71M |
|
DynaEnergetics |
$77M - $81M |
|
NobelClad |
$24M - $26M |
|
Adjusted EBITDA |
|
|
Arcadia before NCI allocation |
$7M - $10M |
|
Arcadia after NCI allocation |
$4M - $6M |
|
DynaEnergetics |
$11M - $13M |
|
NobelClad |
$3M - $4M |
|
Corporate Unallocated |
~ ($3M) |
|
Attributable to DMC |
$15M - $20M |
|
Full-Year 2024 Guidance on Select Items |
|
|
Depreciation and amortization |
$35M - $36M |
|
Interest expense |
$8M - $9M |
|
Annualized effective tax rate |
27% - 29% |
|
Capital expenditures |
$22M - $26M |
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=hzNWxwom
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 In addition to disclosing financial results that
are determined in accordance with generally accepted accounting
principles in the United States (GAAP), the Company also discloses
certain non-GAAP financial measures that we use in operational and
financial decision making. Non-GAAP financial measures include the
following:
- EBITDA: defined as net income (loss) plus net
interest, taxes, depreciation and amortization.
- Adjusted EBITDA:
excludes from EBITDA stock-based compensation, restructuring
expenses and asset impairment charges (if applicable) and, when
appropriate, nonrecurring items that management does not utilize in
assessing DMC’s operating performance (as further described in the
tables below).
- Adjusted EBITDA
attributable to DMC Global Inc. stockholders: excludes the
Adjusted EBITDA attributable to the 40% redeemable noncontrolling
interest in Arcadia Products.
- Adjusted EBITDA for DMC
business segments: defined as operating income (loss) plus
depreciation, amortization, allocated stock-based compensation (if
applicable), restructuring expenses and asset impairment charges
(if applicable) and, when appropriate, nonrecurring items that
management does not utilize in assessing operating
performance.
- Adjusted net income
(loss): defined as net income (loss) attributable to DMC
Global Inc. stockholders prior to the adjustment of redeemable
noncontrolling interest plus restructuring expenses and asset
impairment charges (if applicable) and, when appropriate,
nonrecurring items that management does not utilize in assessing
DMC’s operating performance.
- Adjusted diluted earnings
per share: defined as diluted earnings per share
attributable to DMC Global Inc. stockholders (exclusive of
adjustment of redeemable noncontrolling interest) plus
restructuring expenses and asset impairment charges (if applicable)
and, when appropriate, nonrecurring items that management does not
utilize in assessing DMC’s operating performance.
- Net debt: defined as total debt less total
cash, cash equivalents and marketable securities.
- Free-cash flow:
defined as cash flows provided by (used in) operating activities
less net acquisitions of property, plant and equipment.
Management believes providing these additional
financial measures is useful to investors in understanding the
Company’s operating performance, including the effects of
restructuring, impairment, and other nonrecurring charges, as well
as its liquidity. Management typically monitors the business
utilizing the above non-GAAP measures, in addition to GAAP results,
to understand and compare operating results across accounting
periods, and certain management incentive awards are based, in
part, on these measures. The presence of non-GAAP financial
measures in this report is not intended to suggest that such
measures be considered in isolation or as a substitute for, or as
superior to, DMC’s GAAP information, and investors are cautioned
that the non-GAAP financial measures are limited in their
usefulness.
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.
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. Based 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, adjusted EBITDA, depreciation and amortization expense,
interest expense, tax rate, capital expenditures; our expectations
for a soft first quarter at Arcadia followed by improved demand
during the balance of the year; our intentions with respect to
growth at Arcadia; the impact of new painting and anodizing
capacity expansions at Arcadia; improved profitability at
DynaEnergetics resulting from new automation and operational
excellence initiatives, as well as the success of new premium
product offerings; our expectations of a strong year in NobelClad;
and our ability to fund our growth programs while maintaining our
leverage and debt-service costs at prudent levels. 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 |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
NET SALES |
$ |
174,036 |
|
|
$ |
172,147 |
|
|
$ |
175,074 |
|
|
1 |
% |
|
(1 |
)% |
| COST OF PRODUCTS SOLD |
|
128,682 |
|
|
|
119,550 |
|
|
|
129,970 |
|
|
8 |
% |
|
(1 |
)% |
|
Gross profit |
|
45,354 |
|
|
|
52,597 |
|
|
|
45,104 |
|
|
(14 |
)% |
|
1 |
% |
|
Gross profit percentage |
|
26.1 |
% |
|
|
30.6 |
% |
|
|
25.8 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
15,056 |
|
|
|
16,259 |
|
|
|
19,789 |
|
|
(7 |
)% |
|
(24 |
)% |
|
Selling and distribution expenses |
|
12,123 |
|
|
|
12,454 |
|
|
|
10,847 |
|
|
(3 |
)% |
|
12 |
% |
|
Amortization of purchased intangible assets |
|
5,666 |
|
|
|
5,667 |
|
|
|
3,772 |
|
|
— |
% |
|
50 |
% |
|
Restructuring expenses, net and asset impairments |
|
3,251 |
|
|
|
515 |
|
|
|
129 |
|
|
531 |
% |
|
2,420 |
% |
|
Total costs and expenses |
|
36,096 |
|
|
|
34,895 |
|
|
|
34,537 |
|
|
3 |
% |
|
5 |
% |
| OPERATING INCOME |
|
9,258 |
|
|
|
17,702 |
|
|
|
10,567 |
|
|
(48 |
)% |
|
(12 |
)% |
| OTHER (EXPENSE) INCOME: |
|
|
|
|
|
|
|
|
|
|
Other (expense) income, net |
|
(1,445 |
) |
|
|
302 |
|
|
|
(559 |
) |
|
578 |
% |
|
158 |
% |
|
Interest expense, net |
|
(2,311 |
) |
|
|
(2,392 |
) |
|
|
(2,129 |
) |
|
(3 |
)% |
|
9 |
% |
| INCOME BEFORE INCOME
TAXES |
|
5,502 |
|
|
|
15,612 |
|
|
|
7,879 |
|
|
(65 |
)% |
|
(30 |
)% |
| INCOME TAX PROVISION |
|
1,933 |
|
|
|
4,087 |
|
|
|
4,438 |
|
|
(53 |
)% |
|
(56 |
)% |
| NET INCOME |
|
3,569 |
|
|
|
11,525 |
|
|
|
3,441 |
|
|
(69 |
)% |
|
4 |
% |
|
Less: Net income attributable to redeemable noncontrolling
interest |
|
805 |
|
|
|
2,642 |
|
|
|
175 |
|
|
(70 |
)% |
|
360 |
% |
| NET INCOME ATTRIBUTABLE TO DMC
GLOBAL INC. STOCKHOLDERS |
$ |
2,764 |
|
|
$ |
8,883 |
|
|
$ |
3,266 |
|
|
(69 |
)% |
|
(15 |
)% |
|
NET INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC.
STOCKHOLDERS |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
|
$ |
0.38 |
|
|
$ |
0.52 |
|
|
(97 |
)% |
|
(98 |
)% |
|
Diluted |
$ |
0.01 |
|
|
$ |
0.38 |
|
|
$ |
0.52 |
|
|
(97 |
)% |
|
(98 |
)% |
| WEIGHTED AVERAGE SHARES
OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
19,561,494 |
|
|
|
19,543,251 |
|
|
|
19,384,678 |
|
|
— |
% |
|
1 |
% |
|
Diluted |
|
19,580,750 |
|
|
|
19,596,575 |
|
|
|
19,393,245 |
|
|
— |
% |
|
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 |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Net income attributable to DMC Global Inc. stockholders |
$ |
2,764 |
|
|
$ |
8,883 |
|
|
$ |
3,266 |
| Adjustment of redeemable
noncontrolling interest |
|
(2,581 |
) |
|
|
(1,263 |
) |
|
|
6,933 |
| Net income attributable to DMC
Global Inc. common stockholders after adjustment of redeemable
noncontrolling interest |
$ |
183 |
|
|
$ |
7,620 |
|
|
$ |
10,199 |
| |
Twelve months ended |
|
Change |
| |
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
NET SALES |
$ |
719,188 |
|
|
$ |
654,086 |
|
|
10 |
% |
| COST OF PRODUCTS SOLD |
|
507,136 |
|
|
|
468,639 |
|
|
8 |
% |
|
Gross profit |
|
212,052 |
|
|
|
185,447 |
|
|
14 |
% |
|
Gross profit percentage |
|
29.5 |
% |
|
|
28.4 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
75,341 |
|
|
|
76,119 |
|
|
(1 |
)% |
|
Selling and distribution expenses |
|
49,101 |
|
|
|
42,230 |
|
|
16 |
% |
|
Amortization of purchased intangible assets |
|
22,667 |
|
|
|
36,926 |
|
|
(39 |
)% |
|
Restructuring expenses, net and asset impairments |
|
3,766 |
|
|
|
182 |
|
|
1,969 |
% |
|
Total costs and expenses |
|
150,875 |
|
|
|
155,457 |
|
|
(3 |
)% |
| OPERATING INCOME |
|
61,177 |
|
|
|
29,990 |
|
|
104 |
% |
| OTHER (EXPENSE) INCOME: |
|
|
|
|
|
|
Other expense, net |
|
(1,782 |
) |
|
|
(594 |
) |
|
200 |
% |
|
Interest expense, net |
|
(9,516 |
) |
|
|
(6,187 |
) |
|
54 |
% |
| INCOME BEFORE INCOME
TAXES |
|
49,879 |
|
|
|
23,209 |
|
|
115 |
% |
| INCOME TAX PROVISION |
|
15,120 |
|
|
|
9,376 |
|
|
61 |
% |
| NET INCOME |
|
34,759 |
|
|
|
13,833 |
|
|
151 |
% |
|
Less: Net income attributable to redeemable noncontrolling
interest |
|
8,500 |
|
|
|
1,586 |
|
|
436 |
% |
| NET INCOME ATTRIBUTABLE TO DMC
GLOBAL INC. STOCKHOLDERS |
$ |
26,259 |
|
|
$ |
12,247 |
|
|
114 |
% |
| NET INCOME PER SHARE
ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS |
|
|
|
|
|
|
Basic |
$ |
1.08 |
|
|
$ |
0.72 |
|
|
50 |
% |
|
Diluted |
$ |
1.08 |
|
|
$ |
0.72 |
|
|
50 |
% |
| WEIGHTED AVERAGE SHARES
OUTSTANDING: |
|
|
|
|
|
|
Basic |
|
19,504,542 |
|
|
|
19,360,677 |
|
|
1 |
% |
|
Diluted |
|
19,518,382 |
|
|
|
19,369,165 |
|
|
1 |
% |
Reconciliation to net income attributable to DMC Global Inc.
stockholders after adjustment of redeemable noncontrolling interest
for purposes of calculating earnings per share
| |
|
Twelve months ended |
| |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Net income attributable to DMC Global Inc. stockholders |
|
$ |
26,259 |
|
|
$ |
12,247 |
| Adjustment of redeemable
noncontrolling interest |
|
|
(4,870 |
) |
|
|
1,937 |
| Net income attributable to DMC
Global Inc. common stockholders after adjustment of redeemable
noncontrolling interest |
|
$ |
21,389 |
|
|
$ |
14,184 |
|
DMC GLOBAL INC.SEGMENT STATEMENTS OF OPERATIONS(Amounts in
Thousands)(unaudited) |
|
Arcadia |
| |
Three months ended |
|
Change |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
67,958 |
|
|
$ |
71,455 |
|
|
$ |
74,400 |
|
|
(5 |
)% |
|
(9 |
)% |
| Gross profit |
|
18,910 |
|
|
|
23,789 |
|
|
|
17,970 |
|
|
(21 |
)% |
|
5 |
% |
| Gross profit percentage |
|
27.8 |
% |
|
|
33.3 |
% |
|
|
24.2 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
7,012 |
|
|
|
7,413 |
|
|
|
9,535 |
|
|
(5 |
)% |
|
(26 |
)% |
|
Selling and distribution expenses |
|
4,028 |
|
|
|
4,248 |
|
|
|
4,352 |
|
|
(5 |
)% |
|
(7 |
)% |
|
Amortization of purchased intangible assets |
|
5,652 |
|
|
|
5,652 |
|
|
|
3,642 |
|
|
— |
% |
|
55 |
% |
| Operating income |
|
2,218 |
|
|
|
6,476 |
|
|
|
441 |
|
|
(66 |
)% |
|
403 |
% |
| Adjusted EBITDA |
|
9,222 |
|
|
|
13,434 |
|
|
|
7,143 |
|
|
(31 |
)% |
|
29 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(3,689 |
) |
|
|
(5,374 |
) |
|
|
(2,857 |
) |
|
(31 |
)% |
|
29 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
5,533 |
|
|
$ |
8,060 |
|
|
$ |
4,286 |
|
|
(31 |
)% |
|
29 |
% |
| |
Twelve months ended |
|
Change |
| |
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
Net sales |
$ |
298,909 |
|
|
$ |
299,527 |
|
|
— |
% |
| Gross profit |
|
92,252 |
|
|
|
88,334 |
|
|
4 |
% |
| Gross profit percentage |
|
30.9 |
% |
|
|
29.5 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
30,488 |
|
|
|
31,872 |
|
|
(4 |
)% |
|
Selling and distribution expenses |
|
17,749 |
|
|
|
16,184 |
|
|
10 |
% |
|
Amortization of purchased intangible assets |
|
22,608 |
|
|
|
36,316 |
|
|
(38 |
)% |
| Operating income |
|
21,407 |
|
|
|
3,962 |
|
|
440 |
% |
| Adjusted EBITDA |
$ |
49,612 |
|
|
$ |
46,920 |
|
|
6 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
$ |
(19,845 |
) |
|
$ |
(18,768 |
) |
|
6 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
29,767 |
|
|
$ |
28,152 |
|
|
6 |
% |
|
DynaEnergetics |
| |
Three months ended |
|
Change |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
75,306 |
|
|
$ |
72,998 |
|
|
$ |
77,551 |
|
|
3 |
% |
|
(3 |
)% |
| Gross profit |
|
16,127 |
|
|
|
19,585 |
|
|
|
21,764 |
|
|
(18 |
)% |
|
(26 |
)% |
| Gross profit percentage |
|
21.4 |
% |
|
|
26.8 |
% |
|
|
28.1 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
2,937 |
|
|
|
3,095 |
|
|
|
4,970 |
|
|
(5 |
)% |
|
(41 |
)% |
|
Selling and distribution expenses |
|
5,584 |
|
|
|
5,604 |
|
|
|
4,270 |
|
|
— |
% |
|
31 |
% |
|
Amortization of purchased intangible assets |
|
14 |
|
|
|
15 |
|
|
|
54 |
|
|
(7 |
)% |
|
(74 |
)% |
|
Restructuring expenses, net and asset impairments |
|
3,011 |
|
|
|
— |
|
|
|
— |
|
|
100 |
% |
|
100 |
% |
| Operating income |
|
4,581 |
|
|
|
10,871 |
|
|
|
12,470 |
|
|
(58 |
)% |
|
(63 |
)% |
| Adjusted EBITDA |
$ |
9,286 |
|
|
$ |
12,568 |
|
|
$ |
14,439 |
|
|
(26 |
)% |
|
(36 |
)% |
| |
Twelve months ended |
|
Change |
| |
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
Net sales |
$ |
315,026 |
|
|
$ |
264,327 |
|
|
19 |
% |
| Gross profit |
|
86,701 |
|
|
|
75,569 |
|
|
15 |
% |
| Gross profit percentage |
|
27.5 |
% |
|
|
28.6 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
15,806 |
|
|
|
19,627 |
|
|
(19 |
)% |
|
Selling and distribution expenses |
|
21,472 |
|
|
|
16,588 |
|
|
29 |
% |
|
Amortization of purchased intangible assets |
|
59 |
|
|
|
299 |
|
|
(80 |
)% |
|
Restructuring expenses, net and asset impairments |
|
3,011 |
|
|
|
— |
|
|
100 |
% |
| Operating income |
|
46,353 |
|
|
|
39,055 |
|
|
19 |
% |
| Adjusted EBITDA |
$ |
56,270 |
|
|
$ |
46,932 |
|
|
20 |
% |
|
NobelClad |
| |
Three months ended |
|
Change |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Net sales |
$ |
30,772 |
|
|
$ |
27,694 |
|
|
$ |
23,123 |
|
|
11 |
% |
|
33 |
% |
| Gross profit |
|
10,416 |
|
|
|
9,309 |
|
|
|
5,518 |
|
|
12 |
% |
|
89 |
% |
| Gross profit percentage |
|
33.8 |
% |
|
|
33.6 |
% |
|
|
23.9 |
% |
|
|
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
1,114 |
|
|
|
1,106 |
|
|
|
943 |
|
|
1 |
% |
|
18 |
% |
|
Selling and distribution expenses |
|
2,435 |
|
|
|
2,531 |
|
|
|
2,071 |
|
|
(4 |
)% |
|
18 |
% |
|
Amortization of purchased intangible assets |
|
— |
|
|
|
— |
|
|
|
76 |
|
|
— |
% |
|
(100 |
)% |
|
Restructuring expenses, net and asset impairments |
|
— |
|
|
|
440 |
|
|
|
129 |
|
|
(100 |
)% |
|
(100 |
)% |
| Operating income |
|
6,867 |
|
|
|
5,232 |
|
|
|
2,299 |
|
|
31 |
% |
|
199 |
% |
| Adjusted EBITDA |
$ |
7,608 |
|
|
$ |
6,384 |
|
|
$ |
3,433 |
|
|
19 |
% |
|
122 |
% |
| |
Twelve months ended |
|
Change |
| |
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
Net sales |
$ |
105,253 |
|
|
$ |
90,232 |
|
|
17 |
% |
| Gross profit |
|
33,529 |
|
|
|
22,050 |
|
|
52 |
% |
| Gross profit percentage |
|
31.9 |
% |
|
|
24.4 |
% |
|
|
| COSTS AND EXPENSES: |
|
|
|
|
|
|
General and administrative expenses |
|
4,092 |
|
|
|
4,587 |
|
|
(11 |
)% |
|
Selling and distribution expenses |
|
9,570 |
|
|
|
8,981 |
|
|
7 |
% |
|
Amortization of purchased intangible assets |
|
— |
|
|
|
311 |
|
|
(100 |
)% |
|
Restructuring expenses, net and asset impairments |
|
440 |
|
|
|
182 |
|
|
142 |
% |
| Operating income |
|
19,427 |
|
|
|
7,989 |
|
|
143 |
% |
| Adjusted EBITDA |
$ |
22,760 |
|
|
$ |
11,901 |
|
|
91 |
% |
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in
Thousands) |
| |
|
|
|
|
|
|
Change |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
From year-end |
| |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
31,040 |
|
$ |
28,060 |
|
$ |
25,144 |
|
11 |
% |
|
23 |
% |
| Marketable securities |
|
12,619 |
|
|
7,516 |
|
|
— |
|
68 |
% |
|
100 |
% |
| Accounts receivable, net |
|
106,205 |
|
|
105,519 |
|
|
94,415 |
|
1 |
% |
|
12 |
% |
| Inventories |
|
166,712 |
|
|
185,777 |
|
|
156,590 |
|
(10 |
)% |
|
6 |
% |
| Prepaid expenses and
other |
|
10,236 |
|
|
9,945 |
|
|
10,723 |
|
3 |
% |
|
(5 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
326,812 |
|
|
336,817 |
|
|
286,872 |
|
(3 |
)% |
|
14 |
% |
| |
|
|
|
|
|
|
|
|
|
| Property, plant and equipment,
net |
|
129,267 |
|
|
126,095 |
|
|
129,445 |
|
3 |
% |
|
— |
% |
| Goodwill |
|
141,725 |
|
|
141,725 |
|
|
141,725 |
|
— |
% |
|
— |
% |
| Purchased intangible assets,
net |
|
195,260 |
|
|
200,925 |
|
|
217,925 |
|
(3 |
)% |
|
(10 |
)% |
| Other long-term assets |
|
91,431 |
|
|
90,716 |
|
|
103,011 |
|
1 |
% |
|
(11 |
)% |
| |
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
884,495 |
|
$ |
896,278 |
|
$ |
878,978 |
|
(1 |
)% |
|
1 |
% |
| |
|
|
|
|
|
|
|
|
|
| LIABILITIES,
REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Accounts payable |
$ |
40,202 |
|
$ |
45,589 |
|
$ |
46,816 |
|
(12 |
)% |
|
(14 |
)% |
| Contract liabilities |
|
21,621 |
|
|
28,557 |
|
|
32,080 |
|
(24 |
)% |
|
(33 |
)% |
| Accrued income taxes |
|
12,810 |
|
|
11,527 |
|
|
4,256 |
|
11 |
% |
|
201 |
% |
| Current portion of long-term
debt |
|
15,000 |
|
|
15,000 |
|
|
15,000 |
|
— |
% |
|
— |
% |
| Other current liabilities |
|
36,828 |
|
|
36,954 |
|
|
29,898 |
|
— |
% |
|
23 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
126,461 |
|
|
137,627 |
|
|
128,050 |
|
(8 |
)% |
|
(1 |
)% |
| |
|
|
|
|
|
|
|
|
|
| Long-term debt |
|
100,851 |
|
|
104,460 |
|
|
117,798 |
|
(3 |
)% |
|
(14 |
)% |
| Deferred tax liabilities |
|
1,956 |
|
|
3,336 |
|
|
1,908 |
|
(41 |
)% |
|
3 |
% |
| Other long-term
liabilities |
|
57,172 |
|
|
58,167 |
|
|
63,053 |
|
(2 |
)% |
|
(9 |
)% |
| Redeemable noncontrolling
interest |
|
187,760 |
|
|
187,522 |
|
|
187,522 |
|
— |
% |
|
— |
% |
| Stockholders’ equity |
|
410,295 |
|
|
405,166 |
|
|
380,647 |
|
1 |
% |
|
8 |
% |
| |
|
|
|
|
|
|
|
|
|
| Total liabilities, redeemable
noncontrolling interest, and stockholders’ equity |
$ |
884,495 |
|
$ |
896,278 |
|
$ |
878,978 |
|
(1 |
)% |
|
1 |
% |
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in Thousands)(unaudited) |
| |
Three months ended |
|
Twelve months ended |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
| CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
3,569 |
|
|
$ |
11,525 |
|
|
$ |
3,441 |
|
|
$ |
34,759 |
|
|
$ |
13,833 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
3,546 |
|
|
|
3,460 |
|
|
|
3,703 |
|
|
|
13,840 |
|
|
|
14,281 |
|
|
Amortization of purchased intangible assets |
|
5,666 |
|
|
|
5,667 |
|
|
|
3,772 |
|
|
|
22,667 |
|
|
|
36,926 |
|
|
Amortization of deferred debt issuance costs |
|
141 |
|
|
|
141 |
|
|
|
141 |
|
|
|
553 |
|
|
|
553 |
|
|
Amortization of acquisition-related inventory valuation
step-up |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
430 |
|
|
Stock-based compensation |
|
1,712 |
|
|
|
1,832 |
|
|
|
3,167 |
|
|
|
10,270 |
|
|
|
10,058 |
|
|
Deferred income taxes |
|
(1,248 |
) |
|
|
1,558 |
|
|
|
1,013 |
|
|
|
970 |
|
|
|
(599 |
) |
|
Unrealized gain on marketable securities |
|
(148 |
) |
|
|
— |
|
|
|
— |
|
|
|
(148 |
) |
|
|
— |
|
|
Asset impairments |
|
1,956 |
|
|
|
515 |
|
|
|
— |
|
|
|
2,471 |
|
|
|
— |
|
|
Other |
|
1,859 |
|
|
|
(1,607 |
) |
|
|
1,768 |
|
|
|
(181 |
) |
|
|
1,526 |
|
|
Change in working capital, net |
|
6,126 |
|
|
|
1,113 |
|
|
|
3,596 |
|
|
|
(19,274 |
) |
|
|
(32,072 |
) |
|
Net cash provided by operating activities |
|
23,179 |
|
|
|
24,204 |
|
|
|
20,601 |
|
|
|
65,927 |
|
|
|
44,936 |
|
| CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
Consideration adjustments related to acquisition of business |
|
— |
|
|
|
— |
|
|
|
(370 |
) |
|
|
— |
|
|
|
(2,404 |
) |
|
Investment in marketable securities |
|
(4,955 |
) |
|
|
(5,102 |
) |
|
|
— |
|
|
|
(12,471 |
) |
|
|
— |
|
|
Acquisition of property, plant and equipment |
|
(8,519 |
) |
|
|
(2,333 |
) |
|
|
(7,307 |
) |
|
|
(15,974 |
) |
|
|
(18,584 |
) |
|
Proceeds on sale of property, plant and equipment |
|
344 |
|
|
|
— |
|
|
|
62 |
|
|
|
344 |
|
|
|
62 |
|
|
Net cash used in investing activities |
|
(13,130 |
) |
|
|
(7,435 |
) |
|
|
(7,615 |
) |
|
|
(28,101 |
) |
|
|
(20,926 |
) |
| CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
Repayments on term loan |
|
(3,750 |
) |
|
|
(3,750 |
) |
|
|
(3,750 |
) |
|
|
(17,500 |
) |
|
|
(15,000 |
) |
|
Payments of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(180 |
) |
|
Distributions to redeemable noncontrolling interest holder |
|
(3,170 |
) |
|
|
(4,034 |
) |
|
|
(2,007 |
) |
|
|
(13,515 |
) |
|
|
(12,300 |
) |
|
Net proceeds from issuance of common stock to employees and
directors |
|
102 |
|
|
|
— |
|
|
|
201 |
|
|
|
314 |
|
|
|
201 |
|
|
Treasury stock activity |
|
(153 |
) |
|
|
(157 |
) |
|
|
(139 |
) |
|
|
(2,481 |
) |
|
|
(1,231 |
) |
|
Net cash used in financing activities |
|
(6,971 |
) |
|
|
(7,941 |
) |
|
|
(5,696 |
) |
|
|
(33,182 |
) |
|
|
(28,510 |
) |
| EFFECTS OF EXCHANGE RATES ON
CASH |
|
(98 |
) |
|
|
508 |
|
|
|
(632 |
) |
|
|
1,252 |
|
|
|
(1,166 |
) |
| |
|
|
|
|
|
|
|
|
|
| NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
2,980 |
|
|
|
9,336 |
|
|
|
6,658 |
|
|
|
5,896 |
|
|
|
(5,666 |
) |
| CASH AND CASH EQUIVALENTS,
beginning of the period |
|
28,060 |
|
|
|
18,724 |
|
|
|
18,486 |
|
|
|
25,144 |
|
|
|
30,810 |
|
| CASH AND CASH EQUIVALENTS, end
of the period |
$ |
31,040 |
|
|
$ |
28,060 |
|
|
$ |
25,144 |
|
|
$ |
31,040 |
|
|
$ |
25,144 |
|
|
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 |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Net income |
|
3,569 |
|
|
|
11,525 |
|
|
|
3,441 |
|
|
(69 |
)% |
|
4 |
% |
| Interest expense, net |
|
2,311 |
|
|
|
2,392 |
|
|
|
2,129 |
|
|
(3 |
)% |
|
9 |
% |
| Income tax provision |
|
1,933 |
|
|
|
4,087 |
|
|
|
4,438 |
|
|
(53 |
)% |
|
(56 |
)% |
| Depreciation |
|
3,546 |
|
|
|
3,460 |
|
|
|
3,703 |
|
|
2 |
% |
|
(4 |
)% |
| Amortization of purchased
intangible assets |
|
5,666 |
|
|
|
5,667 |
|
|
|
3,772 |
|
|
— |
% |
|
50 |
% |
| EBITDA |
|
17,025 |
|
|
|
27,131 |
|
|
|
17,483 |
|
|
(37 |
)% |
|
(3 |
)% |
| Stock-based compensation |
|
1,557 |
|
|
|
1,832 |
|
|
|
3,167 |
|
|
(15 |
)% |
|
(51 |
)% |
| Restructuring expenses, net
and asset impairments |
|
3,251 |
|
|
|
515 |
|
|
|
129 |
|
|
531 |
% |
|
2,420 |
% |
| CEO transition expenses |
|
— |
|
|
|
805 |
|
|
|
— |
|
|
(100 |
)% |
|
— |
% |
| Nonrecurring retirement
expenses |
|
— |
|
|
|
— |
|
|
|
1,100 |
|
|
— |
% |
|
(100 |
)% |
| Other expense (income),
net |
|
1,445 |
|
|
|
(302 |
) |
|
|
559 |
|
|
578 |
% |
|
158 |
% |
| Adjusted EBITDA |
$ |
23,278 |
|
|
$ |
29,981 |
|
|
$ |
22,438 |
|
|
(22 |
)% |
|
4 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(3,689 |
) |
|
|
(5,374 |
) |
|
|
(2,857 |
) |
|
(31 |
)% |
|
29 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. stockholders |
$ |
19,589 |
|
|
$ |
24,607 |
|
|
$ |
19,581 |
|
|
(20 |
)% |
|
— |
% |
| |
Twelve months ended |
|
Change |
| |
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
Net income |
$ |
34,759 |
|
|
$ |
13,833 |
|
|
151 |
% |
| Interest expense, net |
|
9,516 |
|
|
|
6,187 |
|
|
54 |
% |
| Income tax provision |
|
15,120 |
|
|
|
9,376 |
|
|
61 |
% |
| Depreciation |
|
13,840 |
|
|
|
14,281 |
|
|
(3 |
)% |
| Amortization of purchased
intangible assets |
|
22,667 |
|
|
|
36,926 |
|
|
(39 |
)% |
| EBITDA |
|
95,902 |
|
|
|
80,603 |
|
|
19 |
% |
| Stock-based compensation |
|
10,115 |
|
|
|
10,058 |
|
|
1 |
% |
| CEO transition expenses |
|
4,343 |
|
|
|
— |
|
|
100 |
% |
| Restructuring expenses, net
and asset impairments |
|
3,766 |
|
|
|
182 |
|
|
1,969 |
% |
| Amortization of
acquisition-related inventory valuation step-up |
|
— |
|
|
|
430 |
|
|
(100 |
)% |
| Nonrecurring retirement
expenses |
|
— |
|
|
|
1,100 |
|
|
(100 |
)% |
| Other expense, net |
|
1,782 |
|
|
|
594 |
|
|
200 |
% |
| Adjusted EBITDA |
$ |
115,908 |
|
|
$ |
92,967 |
|
|
25 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(19,845 |
) |
|
|
(18,768 |
) |
|
6 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. stockholders |
$ |
96,063 |
|
|
$ |
74,199 |
|
|
29 |
% |
| Adjusted Net
Income* and Adjusted Diluted Earnings per Share |
| *Net income
attributable to DMC Global Inc. prior to the adjustment of
redeemable noncontrolling interest |
| |
Three months ended December 31, 2023 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc. stockholders* |
$ |
2,764 |
|
$ |
0.14 |
| Restructuring expenses, net
and asset impairments, net of tax |
|
2,415 |
|
|
0.12 |
| As adjusted |
$ |
5,179 |
|
$ |
0.26 |
| (1) Calculated
using diluted weighted average shares outstanding of
19,580,750 |
| |
Three months ended September 30, 2023 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc. stockholders* |
$ |
8,883 |
|
$ |
0.45 |
| CEO transition expenses, net
of tax |
|
620 |
|
|
0.03 |
| Restructuring expenses, net
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 |
| |
Three months ended December 31, 2022 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc. stockholders* |
$ |
3,266 |
|
$ |
0.17 |
| Nonrecurring retirement
expenses, net of tax |
|
905 |
|
|
0.05 |
| Restructuring expenses, net
and asset impairments, net of tax |
|
88 |
|
|
— |
| As adjusted |
$ |
4,259 |
|
$ |
0.22 |
| (1)Calculated
using diluted weighted average shares outstanding of
19,393,245 |
| |
Twelve months ended December 31, 2023 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc. stockholders* |
$ |
26,259 |
|
$ |
1.35 |
| CEO transition expenses and
accelerated stock-based compensation, net of tax(2) |
|
6,284 |
|
|
0.32 |
| Restructuring expenses, net
and asset impairments, net of tax |
|
2,773 |
|
|
0.14 |
| As adjusted |
$ |
35,316 |
|
$ |
1.81 |
| (1)Calculated
using diluted weighted average shares outstanding of
19,518,382 |
| (2)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. |
| |
Twelve months ended December 31, 2022 |
| |
Amount |
|
Per Share(1) |
|
Net income attributable to DMC Global Inc. stockholders* |
$ |
12,247 |
|
$ |
0.63 |
| Nonrecurring retirement
expenses, net of tax(2) |
|
905 |
|
|
0.05 |
| Amortization of
acquisition-related inventory valuation step-up, net of tax |
|
199 |
|
|
0.01 |
| Restructuring expenses, net
and asset impairments, net of tax |
|
124 |
|
|
0.01 |
| As adjusted |
$ |
13,475 |
|
$ |
0.70 |
| (1)Calculated
using diluted weighted average shares outstanding of
19,369,165 |
| (2)Includes
nonrecurring expenses of $1,100 in accrued cash compensation and
$859 in accelerated stock-based compensation, net of tax, related
to the retirement of Arcadia’s former president. |
| Segment Adjusted
EBITDA |
|
Arcadia |
| |
Three months ended |
|
Change |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
2,218 |
|
|
$ |
6,476 |
|
|
$ |
441 |
|
|
(66 |
)% |
|
403 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
1,020 |
|
|
|
969 |
|
|
|
762 |
|
|
5 |
% |
|
34 |
% |
|
Amortization of purchased intangible assets |
|
5,652 |
|
|
|
5,652 |
|
|
|
3,642 |
|
|
— |
% |
|
55 |
% |
|
Stock-based compensation |
|
332 |
|
|
|
337 |
|
|
|
1,198 |
|
|
(1 |
)% |
|
(72 |
)% |
|
Nonrecurring retirement expenses |
|
— |
|
|
|
— |
|
|
|
1,100 |
|
|
— |
% |
|
(100 |
)% |
| Adjusted EBITDA |
|
9,222 |
|
|
|
13,434 |
|
|
|
7,143 |
|
|
(31 |
)% |
|
29 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(3,689 |
) |
|
|
(5,374 |
) |
|
|
(2,857 |
) |
|
(31 |
)% |
|
29 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
5,533 |
|
|
$ |
8,060 |
|
|
$ |
4,286 |
|
|
(31 |
)% |
|
29 |
% |
| |
Twelve months ended |
|
Change |
| |
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
Operating income, as reported |
$ |
21,407 |
|
|
$ |
3,962 |
|
|
440 |
% |
| Adjustments: |
|
|
|
|
|
|
Depreciation |
|
3,695 |
|
|
|
2,906 |
|
|
27 |
% |
|
Amortization of purchased intangible assets |
|
22,608 |
|
|
|
36,316 |
|
|
(38 |
)% |
|
Stock-based compensation |
|
1,571 |
|
|
|
2,206 |
|
|
(29 |
)% |
|
CEO transition expenses |
|
331 |
|
|
|
— |
|
|
100 |
% |
|
Nonrecurring retirement expenses |
|
— |
|
|
|
1,100 |
|
|
(100 |
)% |
|
Amortization of acquisition-related inventory valuation
step-up |
|
— |
|
|
|
430 |
|
|
(100 |
)% |
| Adjusted EBITDA |
|
49,612 |
|
|
|
46,920 |
|
|
6 |
% |
| Less: adjusted EBITDA
attributable to redeemable noncontrolling interest |
|
(19,845 |
) |
|
|
(18,768 |
) |
|
6 |
% |
| Adjusted EBITDA attributable
to DMC Global Inc. |
$ |
29,767 |
|
|
$ |
28,152 |
|
|
6 |
% |
|
DynaEnergetics |
| |
Three months ended |
|
Change |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
4,581 |
|
$ |
10,871 |
|
$ |
12,470 |
|
(58 |
)% |
|
(63 |
)% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
1,680 |
|
|
1,682 |
|
|
1,915 |
|
— |
% |
|
(12 |
)% |
|
Amortization of purchased intangible assets |
|
14 |
|
|
15 |
|
|
54 |
|
(7 |
)% |
|
(74 |
)% |
|
Restructuring expenses, net and asset impairments |
|
3,011 |
|
|
— |
|
|
— |
|
100 |
% |
|
100 |
% |
| Adjusted EBITDA |
$ |
9,286 |
|
$ |
12,568 |
|
$ |
14,439 |
|
(26 |
)% |
|
(36 |
)% |
| |
Twelve months ended |
|
Change |
| |
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
Operating income, as reported |
$ |
46,353 |
|
$ |
39,055 |
|
19 |
% |
| Adjustments: |
|
|
|
|
|
|
Depreciation |
|
6,847 |
|
|
7,578 |
|
(10 |
)% |
|
Amortization of purchased intangible assets |
|
59 |
|
|
299 |
|
(80 |
)% |
|
Restructuring expenses, net and asset impairments |
|
3,011 |
|
|
— |
|
100 |
% |
| Adjusted EBITDA |
$ |
56,270 |
|
$ |
46,932 |
|
20 |
% |
|
NobelClad |
| |
Three months ended |
|
Change |
| |
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Sequential |
|
Year-on-year |
|
Operating income, as reported |
$ |
6,867 |
|
$ |
5,232 |
|
$ |
2,299 |
|
31 |
% |
|
199 |
% |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
741 |
|
|
712 |
|
|
929 |
|
4 |
% |
|
(20 |
)% |
|
Amortization of purchased intangible assets |
|
— |
|
|
— |
|
|
76 |
|
— |
% |
|
(100 |
)% |
|
Restructuring expenses, net and asset impairments |
|
— |
|
|
440 |
|
|
129 |
|
(100 |
)% |
|
(100 |
)% |
| Adjusted EBITDA |
$ |
7,608 |
|
$ |
6,384 |
|
$ |
3,433 |
|
19 |
% |
|
122 |
% |
| |
Twelve months ended |
|
Change |
| |
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Year-on-year |
|
Operating income, as reported |
$ |
19,427 |
|
$ |
7,989 |
|
143 |
% |
| Adjustments: |
|
|
|
|
|
|
Depreciation |
|
2,893 |
|
|
3,419 |
|
(15 |
)% |
|
Amortization of purchased intangible assets |
|
— |
|
|
311 |
|
(100 |
)% |
|
Restructuring expenses, net and asset impairments |
|
440 |
|
|
182 |
|
142 |
% |
| Adjusted EBITDA |
$ |
22,760 |
|
$ |
11,901 |
|
91 |
% |
| |
|
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
