0000034067FALSE00000340672024-02-222024-02-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): February 22, 2024
 
DMC Global Inc.
(Exact Name of Registrant as Specified in its Charter)
 
Delaware 001-14775 84-0608431
(State or Other Jurisdiction of
Incorporation)		 (Commission File Number) (I.R.S. Employer Identification No.)
 
11800 Ridge Parkway, Suite 300, Broomfield, Colorado 80021
(Address of Principal Executive Offices, Including Zip Code)
 
(303) 665-5700
(Registrant’s Telephone Number, Including Area Code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common Stock, $0.05 Par ValueBOOMThe Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o







Item 2.02    Results of Operations and Financial Condition

On February 22, 2024, DMC Global Inc., a Delaware corporation (the “Company”), issued a press release announcing its financial results for the fourth quarter and full fiscal year ended December 31, 2023. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
The information provided in Item 2.02 of this Current Report, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended, unless specifically stated so therein.

Item 9.01     Financial Statements and Exhibits.

(d)        Exhibits.

Exhibit NumberDescription
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 













 
DMC Global Inc.

 
 
Dated:
February 22, 2024
By:
/s/ Eric V. Walter
Eric V. Walter
Chief Financial Officer



letterheadpage2v2a09.jpg
Exhibit 99.1

FOR IMMEDIATE RELEASE:CONTACT:
Geoff High, Vice President of Investor Relations
303-604-3924
DMC GLOBAL REPORTS FOURTH QUARTER FINANCIAL RESULTS

•Fourth quarter sales were $174.0 million, flat versus Q4 2022
•Net income attributable to DMC was $2.8 million, while total net income was $3.6 million
•Adjusted net income attributable to DMC* was $5.2 million, or $0.26 per diluted share
•Adjusted EBITDA attributable to DMC* was $19.6 million, while total adjusted EBITDA, inclusive of non-controlling interest (NCI), was $23.3 million
•Free-cash flow* was $15.0 million
•Full-year results include record sales, adjusted EBITDA attributable to DMC, and free-cash flow performance

BROOMFIELD, Colo. - February 22, 2024 - 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.

1
letterheadpage2v2a09.jpg
“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 endedChange
 (Amounts in 000’s, except Per Share Data)Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Net sales$174,036 $172,147 $175,074 1 %(1)%
Gross profit percentage26.1 %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 endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Net sales$67,958 $71,455 $74,400 (5)%(9)%
Gross profit percentage27.8 %33.3 %24.2 %
Adjusted EBITDA attributable to DMC$5,533 $8,060 $4,286 (31)%29 %
Adjusted EBITDA before NCI allocation9,222 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.







2
letterheadpage2v2a09.jpg
DynaEnergetics

Three months endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Net sales$75,306 $72,998 $77,551 3 %(3)%
Gross profit percentage21.4 %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 endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Net sales$30,772 $27,694 $23,123 11 %33 %
Gross profit percentage33.8 %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 endedChange
 Dec 31, 2023Dec 31, 2022Year-on-year
Net sales$719,188 $654,086 10 %
Gross profit percentage29.5 %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 %

3
letterheadpage2v2a09.jpg
First Quarter 2024 Guidance

MeasureExpected 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 rate27% - 29%
Capital expenditures$22M - $26M

Conference call information
The 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.
4
letterheadpage2v2a09.jpg
•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
5
letterheadpage2v2a09.jpg
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.
6
DMC GLOBAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Share and Per Share Data)
(unaudited)

Three months endedChange
 Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
NET SALES$174,036 $172,147 $175,074 1 %(1)%
COST OF PRODUCTS SOLD128,682 119,550 129,970 8 %(1)%
Gross profit45,354 52,597 45,104 (14)%1 %
Gross profit percentage26.1 %30.6 %25.8 %
COSTS AND EXPENSES:
General and administrative expenses15,056 16,259 19,789 (7)%(24)%
Selling and distribution expenses12,123 12,454 10,847 (3)%12 %
Amortization of purchased intangible assets5,666 5,667 3,772 — %50 %
Restructuring expenses, net and asset impairments 3,251 515 129 531 %2,420 %
Total costs and expenses36,096 34,895 34,537 3 %5 %
OPERATING INCOME9,258 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 TAXES5,502 15,612 7,879 (65)%(30)%
INCOME TAX PROVISION1,933 4,087 4,438 (53)%(56)%
NET INCOME3,569 11,525 3,441 (69)%4 %
Less: Net income attributable to redeemable noncontrolling interest805 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:  
Basic19,561,49419,543,25119,384,678— %1 %
Diluted19,580,75019,596,57519,393,245— %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, 2023Sep 30, 2023Dec 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 
7
DMC GLOBAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Share and Per Share Data)
(unaudited)

Twelve months endedChange
 Dec 31, 2023Dec 31, 2022Year-on-year
NET SALES$719,188 $654,086 10 %
COST OF PRODUCTS SOLD507,136 468,639 8 %
Gross profit212,052 185,447 14 %
Gross profit percentage29.5 %28.4 %
COSTS AND EXPENSES:
General and administrative expenses75,341 76,119 (1)%
Selling and distribution expenses49,101 42,230 16 %
Amortization of purchased intangible assets22,667 36,926 (39)%
Restructuring expenses, net and asset impairments3,766 182 1,969 %
Total costs and expenses150,875 155,457 (3)%
OPERATING INCOME61,177 29,990 104 %
OTHER (EXPENSE) INCOME:
Other expense, net(1,782)(594)200 %
Interest expense, net(9,516)(6,187)54 %
INCOME BEFORE INCOME TAXES49,879 23,209 115 %
INCOME TAX PROVISION15,120 9,376 61 %
NET INCOME34,759 13,833 151 %
Less: Net income attributable to redeemable noncontrolling interest8,500 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:  
Basic19,504,54219,360,6771 %
Diluted19,518,38219,369,1651 %

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, 2023Dec 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 

8
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)

Arcadia
Three months endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Net sales$67,958 $71,455 $74,400 (5)%(9)%
Gross profit18,910 23,789 17,970 (21)%5 %
Gross profit percentage27.8 %33.3 %24.2 %
COSTS AND EXPENSES:
General and administrative expenses7,012 7,413 9,535 (5)%(26)%
Selling and distribution expenses4,028 4,248 4,352 (5)%(7)%
Amortization of purchased intangible assets5,652 5,652 3,642 — %55 %
Operating income2,218 6,476 441 (66)%403 %
Adjusted EBITDA9,222 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 endedChange
Dec 31, 2023Dec 31, 2022Year-on-year
Net sales$298,909 $299,527 — %
Gross profit92,252 88,334 4 %
Gross profit percentage30.9 %29.5 %
COSTS AND EXPENSES:
General and administrative expenses30,488 31,872 (4)%
Selling and distribution expenses17,749 16,184 10 %
Amortization of purchased intangible assets22,608 36,316 (38)%
Operating income21,407 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 endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Net sales$75,306 $72,998 $77,551 3 %(3)%
Gross profit16,127 19,585 21,764 (18)%(26)%
Gross profit percentage21.4 %26.8 %28.1 %
COSTS AND EXPENSES:
General and administrative expenses2,937 3,095 4,970 (5)%(41)%
Selling and distribution expenses5,584 5,604 4,270 — %31 %
Amortization of purchased intangible assets14 15 54 (7)%(74)%
Restructuring expenses, net and asset impairments3,011 — — 100%100%
Operating income4,581 10,871 12,470 (58)%(63)%
Adjusted EBITDA$9,286 $12,568 $14,439 (26)%(36)%

9
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)

Twelve months endedChange
Dec 31, 2023Dec 31, 2022Year-on-year
Net sales$315,026 $264,327 19 %
Gross profit86,701 75,569 15 %
Gross profit percentage27.5 %28.6 %
COSTS AND EXPENSES:
General and administrative expenses15,806 19,627 (19)%
Selling and distribution expenses21,472 16,588 29 %
Amortization of purchased intangible assets59 299 (80)%
Restructuring expenses, net and asset impairments3,011 — 100 %
Operating income46,353 39,055 19 %
Adjusted EBITDA$56,270 $46,932 20 %

NobelClad
Three months endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Net sales$30,772 $27,694 $23,123 11 %33 %
Gross profit10,416 9,309 5,518 12 %89 %
Gross profit percentage33.8 %33.6 %23.9 %
COSTS AND EXPENSES:
General and administrative expenses1,114 1,106 943 1 %18 %
Selling and distribution expenses2,435 2,531 2,071 (4)%18 %
Amortization of purchased intangible assets— — 76 —%(100)%
Restructuring expenses, net and asset impairments— 440 129 (100)%(100)%
Operating income6,867 5,232 2,299 31 %199 %
Adjusted EBITDA$7,608 $6,384 $3,433 19 %122 %

Twelve months endedChange
Dec 31, 2023Dec 31, 2022Year-on-year
Net sales$105,253 $90,232 17 %
Gross profit33,529 22,050 52 %
Gross profit percentage31.9 %24.4 %
COSTS AND EXPENSES:
General and administrative expenses4,092 4,587 (11)%
Selling and distribution expenses9,570 8,981 7 %
Amortization of purchased intangible assets— 311 (100)%
Restructuring expenses, net and asset impairments440 182 142 %
Operating income19,427 7,989 143 %
Adjusted EBITDA$22,760 $11,901 91 %

10
DMC GLOBAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)

Change
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialFrom year-end
(unaudited)(unaudited)
ASSETS  
Cash and cash equivalents$31,040 $28,060 $25,144 11 %23 %
Marketable securities12,619 7,516 — 68 %100 %
Accounts receivable, net106,205 105,519 94,415 1 %12 %
Inventories166,712 185,777 156,590 (10)%6 %
Prepaid expenses and other10,236 9,945 10,723 3 %(5)%
Total current assets326,812 336,817 286,872 (3)%14 %
Property, plant and equipment, net129,267 126,095 129,445 3 %— %
Goodwill141,725 141,725 141,725 — %— %
Purchased intangible assets, net195,260 200,925 217,925 (3)%(10)%
Other long-term assets91,431 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 liabilities21,621 28,557 32,080 (24)%(33)%
Accrued income taxes12,810 11,527 4,256 11 %201 %
Current portion of long-term debt15,000 15,000 15,000 — %— %
Other current liabilities36,828 36,954 29,898 — %23 %
Total current liabilities126,461 137,627 128,050 (8)%(1)%
Long-term debt100,851 104,460 117,798 (3)%(14)%
Deferred tax liabilities1,956 3,336 1,908 (41)%3 %
Other long-term liabilities57,172 58,167 63,053 (2)%(9)%
Redeemable noncontrolling interest187,760 187,522 187,522 — %— %
Stockholders’ equity410,295 405,166 380,647 1 %8 %
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity$884,495 $896,278 $878,978 (1)%1 %

11
DMC GLOBAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
(unaudited)

Three months endedTwelve months ended
 Dec 31, 2023Sep 30, 2023Dec 31, 2022Dec 31, 2023Dec 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:
Depreciation3,546 3,460 3,703 13,840 14,281 
Amortization of purchased intangible assets5,666 5,667 3,772 22,667 36,926 
Amortization of deferred debt issuance costs141 141 141 553 553 
Amortization of acquisition-related inventory valuation step-up— — — — 430 
Stock-based compensation1,712 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 impairments1,956 515 — 2,471 — 
Other1,859 (1,607)1,768 (181)1,526 
Change in working capital, net6,126 1,113 3,596 (19,274)(32,072)
Net cash provided by operating activities23,179 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 equipment344 — 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 directors102 — 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 EQUIVALENTS2,980 9,336 6,658 5,896 (5,666)
CASH AND CASH EQUIVALENTS, beginning of the period28,060 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 



12
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 endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Net income3,569 11,525 3,441 (69)%4 %
Interest expense, net2,311 2,392 2,129 (3)%9 %
Income tax provision1,933 4,087 4,438 (53)%(56)%
Depreciation3,546 3,460 3,703 2 %(4)%
Amortization of purchased intangible assets5,666 5,667 3,772 — %50 %
EBITDA17,025 27,131 17,483 (37)%(3)%
Stock-based compensation1,557 1,832 3,167 (15)%(51)%
Restructuring expenses, net and asset impairments3,251 515 129 531 %2,420 %
CEO transition expenses— 805 — (100)%— %
Nonrecurring retirement expenses— — 1,100 —%(100)%
Other expense (income), net1,445 (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 endedChange
Dec 31, 2023Dec 31, 2022Year-on-year
Net income$34,759 $13,833 151 %
Interest expense, net9,516 6,187 54 %
Income tax provision15,120 9,376 61 %
Depreciation13,840 14,281 (3)%
Amortization of purchased intangible assets22,667 36,926 (39)%
EBITDA95,902 80,603 19 %
Stock-based compensation10,115 10,058 1 %
CEO transition expenses4,343 — 100 %
Restructuring expenses, net and asset impairments3,766 182 1,969 %
Amortization of acquisition-related inventory valuation step-up— 430 (100)%
Nonrecurring retirement expenses— 1,100 (100)%
Other expense, net1,782 594 200 %
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 %
13
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)

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 tax2,415 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 tax620 0.03 
Restructuring expenses, net and asset impairments, net of tax358 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 tax905 0.05 
Restructuring expenses, net and asset impairments, net of tax88 — 
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 tax2,773 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 tax199 0.01 
Restructuring expenses, net and asset impairments, net of tax124 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.
14
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)

Segment Adjusted EBITDA

Arcadia
Three months endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Operating income, as reported$2,218 $6,476 $441 (66)%403 %
Adjustments:
Depreciation1,020 969 762 5 %34 %
Amortization of purchased intangible assets5,652 5,652 3,642 — %55 %
Stock-based compensation332 337 1,198 (1)%(72)%
Nonrecurring retirement expenses— — 1,100 — %(100)%
Adjusted EBITDA9,222 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 endedChange
Dec 31, 2023Dec 31, 2022Year-on-year
Operating income, as reported$21,407 $3,962 440 %
Adjustments:
Depreciation3,695 2,906 27 %
Amortization of purchased intangible assets22,608 36,316 (38)%
Stock-based compensation1,571 2,206 (29)%
CEO transition expenses331 — 100 %
Nonrecurring retirement expenses— 1,100 (100)%
Amortization of acquisition-related inventory valuation step-up— 430 (100)%
Adjusted EBITDA49,612 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 %
15
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)


DynaEnergetics
Three months endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Operating income, as reported$4,581 $10,871 $12,470 (58)%(63)%
Adjustments:
Depreciation1,680 1,682 1,915 — %(12)%
Amortization of purchased intangible assets14 15 54 (7)%(74)%
Restructuring expenses, net and asset impairments3,011 — — 100%100%
Adjusted EBITDA$9,286 $12,568 $14,439 (26)%(36)%

Twelve months endedChange
Dec 31, 2023Dec 31, 2022Year-on-year
Operating income, as reported$46,353 $39,055 19 %
Adjustments:
Depreciation6,847 7,578 (10)%
Amortization of purchased intangible assets59 299 (80)%
Restructuring expenses, net and asset impairments3,011 — 100 %
Adjusted EBITDA$56,270 $46,932 20 %

NobelClad
Three months endedChange
Dec 31, 2023Sep 30, 2023Dec 31, 2022SequentialYear-on-year
Operating income, as reported$6,867 $5,232 $2,299 31 %199 %
Adjustments:
Depreciation741 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 endedChange
Dec 31, 2023Dec 31, 2022Year-on-year
Operating income, as reported$19,427 $7,989 143 %
Adjustments:
Depreciation2,893 3,419 (15)%
Amortization of purchased intangible assets— 311 (100)%
Restructuring expenses, net and asset impairments440 182 142 %
Adjusted EBITDA$22,760 $11,901 91 %

16
v3.24.0.1
Cover
Feb. 22, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 22, 2024
Entity Registrant Name DMC Global Inc.
Entity Address, Address Line One 11800 Ridge Parkway
Entity Address, Address Line Two Suite 300
Entity Address, City or Town Broomfield
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80021
City Area Code 303
Local Phone Number 665-5700
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.05 Par Value
Trading Symbol BOOM
Security Exchange Name NASDAQ
Entity Incorporation, State or Country Code DE
Entity File Number 001-14775
Entity Tax Identification Number 84-0608431
Entity Central Index Key 0000034067
Amendment Flag false
DMC Global (NASDAQ:BOOM)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more DMC Global Charts.
DMC Global (NASDAQ:BOOM)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more DMC Global Charts.