BOOM DMC Global Inc

Dynamic Materials Reports First Quarter 2004 Financial Results BOULDER, Colo., May 10 /PRNewswire-FirstCall/ -- Dynamic Materials Corporation, , "DMC," today reported first quarter net income of $208,214, or $.04 per diluted share, versus net income of $153,705 or $.03 per diluted share, for the first quarter of 2003. DMC's first quarter 2004 sales were $10,981,508, an increase of 19% from 2003 first quarter sales of $9,203,866. First quarter 2003 net income included a loss from discontinued operations of $182,487, or $.04 per diluted share, relating to the discontinued operations of the Company's Precision Machined Products division that was sold on October 7, 2003. Explosive Metalworking Group Performance DMC's Explosive Metalworking Group reported first quarter 2004 sales of $9,660,434, a 33% increase from sales of $7,273,031 for the first quarter of 2003. This increase reflects a 58% increase in sales by the Group's U.S. Clad Metal division and relatively flat sales at Nobelclad Europe. The Explosive Metalworking Group reported income from operations of $835,559 for the first quarter of 2004 versus income from operations of $676,634 for the 2003 first quarter. This 24% increase in operating income did not keep pace with the sales increase due to lower first quarter gross margin levels at Nobelclad Europe that resulted from unfavorable product mix changes and stiff local market price competition. Aerospace Group Performance The Aerospace Group contributed $1,321,074 to sales in the first quarter of 2004 as compared to sales of $1,930,835 in the 2003 first quarter. As a result of this 32% sales decrease, the Aerospace Group reported an operating loss of $378,088 in the first quarter of 2004 versus operating income of $14,323 in the prior year first quarter. Spin Forge, whose sales continue to suffer as a result of a major missile motor case program being placed in a hold status, reported a first quarter 2004 operating loss of $325,244 and AMK Welding reported an operating loss of $52,844. In the 2003 first quarter, AMK reported operating income of $139,663 that offset an operating loss of $125,340 reported by Spin Forge. In commenting upon the Company's first quarter 2004 results, Yvon Cariou, DMC's president and CEO, stated, "While the first quarter operating results of the Explosive Metalworking Group were below our expectations, the Group's backlog increased to approximately $17.3 million as of March 31, 2004 from approximately $11.7 million at the end of 2003 and order inquiries remain strong. The increased March 31 backlog reflects stronger than expected first quarter 2004 booking levels that should result in significant improvement in both second quarter and full year 2004 sales and operating income for the Explosive Metalworking Group." Cariou continued, "The large first quarter 2004 operating loss reported by our Aerospace group is a major concern that is receiving management's full attention." 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, 2003. 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, power generation, 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 MONTHS ENDED MARCH 31, 2004 AND 2003 (unaudited) 2004 2003 NET SALES $10,981,508 $9,203,866 COST OF PRODUCTS SOLD 8,849,785 6,894,189 Gross profit 2,131,723 2,309,677 COSTS AND EXPENSES: General and administrative expenses 918,221 889,662 Selling expenses 756,031 729,058 Total costs and expenses 1,674,252 1,618,720 INCOME FROM OPERATIONS 457,471 690,957 OTHER INCOME (EXPENSE): Other income (expense), net 4,641 3,926 Interest expense (123,511) (143,709) Interest income 4,170 1,342 INCOME BEFORE INCOME TAXES 342,771 552,516 INCOME TAX PROVISION 134,557 216,324 INCOME FROM CONTINUING OPERATIONS 208,214 336,192 DISCONTINUED OPERATIONS: Loss from discontinued operations, net of tax benefit -- (182,487) NET INCOME $208,214 $153,705 NET INCOME PER SHARE - BASIC AND DILUTED: Continuing operations $0.04 $0.07 Discontinued operations -- (0.04) Net Income $0.04 $0.03 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING -- Basic 5,089,549 5,061,390 Diluted 5,166,934 5,080,340 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/

Copyright