BOOM DMC Global Inc

Dynamic Materials Reports First Quarter Financial Results Selected Highlights BOULDER, Colo., May 5 /PRNewswire-FirstCall/ -- Dynamic Materials Corporation (DMC) (NASDAQ:BOOM), the world's leading provider of explosion- bonded clad metal plates and associated services, today reported financial results for the first quarter ended March 31, 2005. First quarter sales advanced 72% to $17.5 million from $10.2 million in the first quarter of 2004. Gross profit margin increased to 27% from 22% in last year's first quarter, reflecting a more favorable absorption of fixed manufacturing expenses within the European operations of the Company's Explosive Metalworking Group. Income from operations increased 247% to $2.7 million from $0.8 million in the first quarter last year. Net income increased 692% to $1.6 million, or $0.28 per diluted share, versus net income of $0.2 million, or $0.04 per diluted share, in the comparable year-ago quarter. Net income in last year's first quarter was impacted by a $0.2 million loss from discontinued operations, which resulted from operating losses by the Company's former Spin Forge division. Explosive Metalworking Group Sales at DMC's Explosive Metalworking Group advanced 76% to $17.0 million from $9.7 million in last year's first quarter. Operating income in the quarter increased to $2.8 million from $0.8 million in the comparable period last year. Record first quarter bookings, which included a $5.3 million order for work on a nickel hydrometallurgy project in New Caledonia, helped fuel a 24% sequential increase in the Group's order backlog. At March 31, 2005, backlog totaled an all-time high $34.1 million compared with the previous high of $27.5 million at December 31, 2004. AMK Welding Sales from the Company's AMK Welding division increased 9% to $0.54 million from $0.50 million in the first quarter last year. The division reported an operating loss of $0.11 million versus an operating loss of $0.05 million in the 2004 first quarter. The increased operating loss reflects greater spending by the division as it prepares for a significant ramp-up in business activity. AMK is expecting the second-quarter commencement of production work on a customer's ground-based turbine program. As a result, management expects marked improvement in AMK's sales and operating results during the remaining quarters of fiscal 2005. Management Commentary Yvon Cariou, president and CEO, stated, "We remain very encouraged by the robust sales and production activity being reported across all segments of our Explosive Metalworking Group. Our achievement of both record bookings and solid revenue growth in the same quarter is indicative of the current strength of our business. Improving economic conditions in our primary target markets is clearly having a positive impact on demand." Cariou added, "We also are encouraged by the upcoming increase in activity at our specialty welding business. AMK played an important role in the development of a customer's ground-based turbine product, and will now participate in the commercial production phase. This step-up in activity should make 2005 a strong year for AMK." "In addition to our emphasis on revenue and earnings growth, we also are focused on strengthening our balance sheet. In the coming quarters, we will work to further reduce our current debt levels." About Dynamic Materials Corporation Based in Boulder, Colorado, Dynamic Materials Corporation is a leading international metalworking company. Its products include explosion-bonded clad metal plates and other metal fabrications for use in a variety of industries, including petrochemicals, refining, hydrometallurgy, aluminum smelting and shipbuilding. The Company operates two business segments: the Explosive Metalworking Group, which uses proprietary explosive processes to fuse dissimilar metals and alloys, and AMK Welding, which utilizes various technologies to weld components for use in power-generation turbines, as well as commercial and military jet engines. With more than 30 years of international experience, DMC has captured a commanding share of the worldwide market for explosion-bonded clad metals. For more information, visit the Company's website at http://www.dynamicmaterials.com/. Except for the historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties including, but not limited to, the following: the ability to obtain new contracts at attractive prices; the size and timing of customer orders; fluctuations in customer demand; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timely receipt of government approvals and permits; the adequacy of local labor supplies at the Company's facilities; the availability and cost of funds; and general economic conditions, both domestically and abroad; as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2004. DYNAMIC MATERIALS CORPORATION & SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (Dollars in Thousands, Except Per Share Data) (unaudited) 2005 2004 NET SALES $17,510 $10,160 COST OF PRODUCTS SOLD 2,860 7,895 Gross profit 4,650 2,265 COSTS AND EXPENSES: General and administrative expenses 809 727 Selling expenses 1,126 756 Total costs and expenses 1,935 1,483 INCOME FROM OPERATIONS OF CONTINUING OPERATIONS 2,715 782 OTHER INCOME (EXPENSE): Other income 5 5 Interest expense (86) (124) Interest income 4 4 INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS 2,638 667 INCOME TAX PROVISION 990 261 INCOME FROM CONTINUING OPERATIONS BEFORE DISCONTINUED OPERATIONS 1,648 406 LOSS FROM OPERATIONS OF DISCONTINUED OPERATIONS, NET OF TAX -- (198) NET INCOME 1,648 $208 INCOME (LOSS) PER SHARE - BASIC: Continuing operations $0.31 $0.08 Discontinued operations -- (0.04) Net income $0.31 $0.04 INCOME (LOSS) PER SHARE - DILUTED: Continuing operations $0.28 $0.08 Discontinued operations -- (0.04) Net income $0.28 $0.04 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic 5,347,130 5,089,549 Diluted 5,930,550 5,366,934 DYNAMIC MATERIALS CORPORATION & SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) March 31, December 31, 2005 2004 (unaudited) ASSETS Cash and cash equivalents $1,523 $2,404 Accounts receivable, net 12,539 13,936 Inventories 8,424 8,000 Other current assets 1,232 1,906 Total current assets 23,718 26,246 Property, plant and equipment, net 11,763 11,844 Other long-term assets 5,690 5,663 Total assets $41,171 $43,753 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $6,014 $6,041 Other current liabilities 3,979 4,519 Bank lines of credit 171 3,216 Current portion of long-term debt 2,169 3,186 Total current liabilities 12,333 16,962 Long-term debt 2,797 2,906 Other long-term liabilities 3,773 3,815 Stockholders' equity 22,268 20,070 Total liabilities and stockholders' equity $41,171 $43,753 DYNAMIC MATERIALS CORPORATION & SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (Dollars in Thousands) (unaudited) 2005 2004 CASH FLOWS FROM OPERATING ACTIVITIES: Income from continuing operations $1,648 $406 Adjustments to reconcile income from continuing operations to net cash provided by operating activities - Depreciation and amortization 366 342 Provision for deferred income taxes (14) 256 Tax benefit related to stock options 214 -- Change in working capital, net 27 343 Net cash flows provided by operating activities 2,241 1,347 CASH FLOWS FROM INVESTING ACTIVITIES: Payment received on other receivable 874 -- Acquisition of property, plant and equipment (577) (490) Change in other non-current assets 91 6 Net cash flows provided by (used in) investing activities 388 (484) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings / (repayments) on lines of credit, net (3,170) 100 Payments on long-term debt (907) (558) Net proceeds from issuance of common stock 620 12 Other cash flows from financing activities 4 4 Net cash flows used in financing activities (3,453) (442) EFFECTS OF EXCHANGE RATES ON CASH (57) (19) CASH FLOWS USED IN DISCONTINUED OPERATIONS -- (401) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (881) 1 CASH AND CASH EQUIVALENTS, beginning of the period 2,404 522 CASH AND CASH EQUIVALENTS, end of the period $1,523 $523 DATASOURCE: Dynamic Materials Corporation CONTACT: Geoff High of Pfeiffer High Investor Relations, Inc., +1-303-393-7044, for Dynamic Materials Corporation Web site: http://www.dynamicmaterials.com/

Copyright