BOOM DMC Global Inc

Dynamic Materials Reports Third Quarter 2003 Financial Results BOULDER, Colo., Nov. 13 /PRNewswire-FirstCall/ -- Dynamic Materials Corporation, , "DMC", today reported third quarter income from continuing operations of $226,239, or $.04 per diluted share, versus income from continuing operations of $547,959, or $.11 per diluted share, for the third quarter of 2002. DMC's third quarter 2003 sales were $11,129,210, an 8% increase from third quarter 2002 sales of $10,267,254. For the nine months ended September 30, 2003, DMC reported income from continuing operations of $1,077,948, or $.21 per diluted share, versus income from continuing operations of $2,031,524, or $.40 per diluted share, for the first nine months of 2002. DMC reported sales of $31,034,281 and $30,987,927 for the respective nine-month periods of 2003 and 2002. For the three months ended September 30, 2003, DMC reported a net loss of $679,393, or $.13 per diluted share, as compared to net income of $383,974, or $.08 per diluted share, for the third quarter of 2002. For the nine months ended September 30, 2003 and 2002, DMC reported net losses of $130,281, or $.03 per diluted share, and $851,995, or $.17 per diluted share, respectively. The net loss for the three and nine month periods of 2003 reflects a loss from discontinued operations of $905,632, or $.17 per diluted share, and $1,208,229, or $.24 per diluted share, respectively, including operating losses of $195,323 and $497,920 for the respective periods and an asset impairment loss of $710,309 associated with the discontinued operations of its Precision Machined Products division ("PMP"), which was sold on October 7, 2003. The net loss for the first nine months of 2002 included a transitional goodwill impairment charge of $2,318,108, or $.46 per diluted share, associated with the cumulative effect of a change in accounting principle as well as a loss from discontinued operations of $565,411, or $.11 per diluted share, relating to the reclassification of PMP's 2002 operating loss to discontinued operations. Explosive Metalworking Group Performance DMC's Explosive Metalworking Group reported third quarter 2003 sales of $9,068,486, an 11% increase from sales of $8,144,835 for the third quarter of 2002. For the three months ended September 30, 2003 and 2002, the Group reported income from operations of $820,852 and $1,183,179, respectively. Group sales for the nine months ended September 30, 2003 were $24,820,283, a decrease of 2% from sales of $25,245,221 for the first nine months of 2002. The Group reported income from operations of $2,397,995 and $4,124,018 for the nine months ended September 30, 2003 and 2002, respectively. On a year-to- date basis, Explosive Metalworking Group sales have been impacted by a weak first quarter that resulted from a low December 31, 2002 backlog and operating income has been impacted by a combination of unfavorable changes in product mix, principally at the Group's European locations, and lower sales volume in the U.S. Aerospace Group Performance The Aerospace Group contributed $2,060,724 to sales in the third quarter of 2003 as compared to reported sales of $2,122,419 in the third quarter of 2002. For the nine months ended September 30, 2003, the Aerospace Group reported sales of $6,213,998, an increase of 8% from the $5,742,706 in sales the Group posted for the comparable period of 2002. The Aerospace Group reported an operating loss of $26,537 for the nine months ended September 30, 2003 compared to an operating loss of $222,564 for the first nine months of 2002. For the three months ended September 30, 2003 and 2002, the Group reported operating losses of $122,782 and $60,785, respectively. The Group's decreased year-to-date 2003 operating loss is attributable to a decreased operating loss at the Spin Forge division. AMK Welding reported operating income for both the third quarter and year-to-date periods but at levels well below the record operating income that was reported for the comparable 2002 reporting periods. In commenting upon the Company's third quarter 2003 results, Yvon Cariou, DMC's President and CEO, stated, "As expected, Explosive Metalworking Group sales and operating income for the third quarter were comparable to those reported in the second quarter of 2003. While we expect to see a decline in fourth quarter sales and operating income from the amounts reported for each of the last two quarters, we are increasingly optimistic about the 2004 outlook for our Explosive Metalworking Group based on the recent flow of new orders and the high volume of customer inquiries." Cariou continued, "Results for our Aerospace Group no longer include the operating results of PMP which was sold on October 7, 2003 and whose operating losses for 2003 and 2002 have been reported as discontinued operations. However, we are concerned that the Aerospace Group, even without PMP, has reported losses in 2002 and 2003 that are expected to continue in the fourth quarter. These concerns are being addressed by management and appropriate actions will be taken during the remainder of 2003 and early part of 2004." 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, 2002. Based in Boulder, Colorado, Dynamic Materials Corporation is a leading metalworking company, and its products include explosion bonded clad metal plates and other metal fabrications for the petrochemical, chemical processing, satellite/launch vehicle, commercial aircraft, defense and a variety of other industries. For more information on Dynamic Materials Corporation visit the Company's web site at http://www.dynamicmaterials.com/ DYNAMIC MATERIALS CORPORATION & SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002 (unaudited) Three months ended Nine months ended September 30, September 30, 2003 2002 2003 2002 NET SALES $11,129,210 $10,267,254 $31,034,281 $30,987,927 COST OF PRODUCTS SOLD 8,885,435 7,686,775 23,809,147 22,657,293 Gross profit 2,243,775 2,580,479 7,225,134 8,330,634 COSTS AND EXPENSES: General and administrative expenses 861,511 826,215 2,667,921 2,581,411 Selling expenses 684,194 631,870 2,185,755 1,847,769 Total costs and expenses 1,545,705 1,458,085 4,853,676 4,429,180 INCOME FROM OPERATIONS 698,070 1,122,394 2,371,458 3,901,454 OTHER INCOME (EXPENSE): Other income (expense), net (16,268) 765 (16,230) (38,803) Interest expense (121,880) (169,078) (396,893) (526,969) Interest income 1,260 636 2,888 1,155 INCOME BEFORE INCOME TAXES 561,182 954,717 1,961,223 3,336,837 INCOME TAX PROVISION 334,943 406,758 883,275 1,305,313 INCOME FROM CONTINUING OPERATIONS BEFORE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 226,239 547,959 1,077,948 2,031,524 DISCONTINUED OPERATIONS: Loss from operations of discontinued operations, net of tax benefit (195,323) (163,985) (497,920) (565,411) Loss on impairment of assets associated with discontinued operations, net of tax benefit (710,309) -- (710,309) -- Loss from discontinued operations (905,632) (163,985) (1,208,229) (565,411) CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX BENEFIT OF $1,482,000 -- -- -- (2,318,108) NET INCOME (LOSS) $(679,393) $383,974 $(130,281) $(851,995) NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED: Continuing operations $0.04 $0.11 $0.21 $0.40 Discontinued operations (0.17) (0.03) (0.24) (0.11) Cumulative effect of a change in accounting principle -- -- -- (0.46) Net Income (Loss) $(0.13) $0.08 $(0.03) $(0.17) WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic 5,072,943 5,048,888 5,065,283 5,038,596 Diluted 5,139,144 5,073,508 5,093,010 5,092,379 DATASOURCE: Dynamic Materials Corporation CONTACT: Richard A. Santa, Vice President and Chief Financial Officer of Dynamic Materials Corporation, +1-303-604-3938 Web site: http://www.dynamicmaterials.com/

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