DMC Global Inc. (Nasdaq: BOOM) today reported financial results for
its third quarter ended September 30, 2020.
Consolidated sales were $55.3 million, up 28%
sequentially and down 45% versus the third quarter of 2019. The
sequential increase reflects improved demand in North America for
integrated perforating systems from DynaEnergetics, DMC’s oilfield
products business. North American sales improved 122% sequentially,
and were partially offset by a 27% sequential decline in
international sales, which can fluctuate based on order timing.
Consolidated third quarter sales also reflect an 8% sequential
improvement at NobelClad, DMC’s composite metals business. The
sales decline versus last year’s third quarter reflects the
collapse in global oil and gas demand as a result of the Covid-19
pandemic.
Gross margin for the third quarter was 25%
versus 15% in the 2020 second quarter and 36% in the 2019 third
quarter.
Third quarter operating income was $1.5 million,
down from $12.8 million in last year’s third quarter. Net income
was $1.0 million, or $0.07 per diluted share, versus net income of
$6.9 million, or $0.46 per diluted share, in last year’s third
quarter. Adjusted net income was $1.2 million, or $0.08 per diluted
share.
Third quarter adjusted EBITDA was $6.0 million
versus a negative $1.8 million in the 2020 second quarter, and a
positive $23.2 million in the 2019 third quarter.
Net cash (total cash and cash equivalents less
total debt) at September 30, 2020, was $12.6 million, up from net
cash of $4.5 million at June 30, 2020.
DynaEnergetics Third quarter sales at
DynaEnergetics were $34.2 million, up 45% sequentially and down 56%
from the 2019 third quarter. Gross margin was 24%, up from 8% in
the second quarter of 2020 and down from 39% in last year’s third
quarter. Operating income was $2.2 million versus $14.9 million in
the comparable year-ago quarter. Excluding restructuring charges,
adjusted operating income was $2.3 million versus $21.4 million in
the 2019 third quarter. Adjusted EBITDA was $4.2 million versus
$23.2 million in last year’s third quarter.
NobelClad Third quarter sales at NobelClad,
DMC's composite metals business, were $21.1 million, up 8%
sequentially and down 7% versus the 2019 third quarter. Gross
margin was 26%, up from 25% in the 2020 second quarter and flat
versus last year's third quarter. Operating income was $2.5 million
versus $2.2 million in the year-ago third quarter. Adjusted EBITDA
was $3.4 million versus $3.1 million in last year’s third
quarter.
NobelClad’s trailing 12-month book-to-bill ratio
at the end of the third quarter was 1.09, and its rolling 12-month
bookings were $90 million versus $89 million at June 30, 2020.
Order backlog was $42.6 million versus $42.9 million at the end of
the second quarter.
Nine-month resultsConsolidated
sales for the nine-month period were $172.0 million, down 45%
versus the same period a year ago. Gross margin was 26% versus 37%
in the 2019 nine-month period. Operating loss was $178,000 versus
operating income of $57.9 million in last year’s nine-month period.
Net loss for the period was $485,000, or $0.03 per diluted share,
versus net income of $39.3 million, or $2.64 per diluted share, in
the same period a year ago.
Nine-month adjusted operating income was $3.1
million and adjusted net income was $1.8 million, or $0.13 per
diluted share. Adjusted EBITDA was $15.5 million versus $76.1
million in last year’s nine-month period.
DynaEnergeticsNine-month sales at DynaEnergetics
were $111.1 million, down 55% from $245.8 million in last year’s
nine-month period. Operating income was $3.9 million versus $64.8
million in the comparable year-ago period. Adjusted EBITDA was
$12.2 million versus $76.2 million in last year’s nine-month
period.
NobelClad NobelClad reported nine-month sales of
$61.0 million, down 7% from $65.4 million at the nine-month mark
last year. Operating income was $5.9 million versus $6.0 million in
the comparable year-ago period, while adjusted EBITDA was $8.8
million versus $8.9 million in last year’s nine-month period.
Management Commentary President
and CEO Kevin Longe said, “The third quarter brought a
stronger-than-expected upturn in North American well completion
activity, and DynaEnergetics’ customers were able to quickly
accelerate operations, in part by deploying our Factory-Assembled,
Performance-Assured™ DS perforating systems, which are delivered
just-in-time to the wellsite. In addition, NobelClad reported
better-than-expected order shipments. These factors led to third
quarter financial results that exceeded publicly issued
guidance.
“Despite the recent improvement in well
completion activity, the environment for North America’s
unconventional oil and gas industry remains challenging, and most
operators and service companies are actively streamlining
operations and reducing costs. Many also are adopting new
well-completion technologies, including DynaEnergetics’ integrated
DS perforating systems, which require fewer people and less time to
arm and deploy, and significantly enhance the safety, performance
and reliability of our customers’ well-completion programs.
“DynaEnergetics made several additions to its
product portfolio during the third quarter, including the DS
MicroSet™, a compact, disposable setting tool used to install the
plug at the end of each stage in an unconventional oil or gas well.
The factory-assembled tool has performed extremely well in field
trials with multiple customers. It works seamlessly with our DS
perforating systems, and is fully disposable, eliminating the
dangerous redressing processes required with most setting tools. DS
MicroSet and the new DS Liberator™ ballistic release tool will be
commercially available next month.
“DynaEnergetics anticipates fourth quarter
demand from North America’s unconventional market will be
consistent with the third quarter. However, it also expects a
seasonal decline in international order volume, which is expected
to accelerate again in the first half of 2021.”
Longe continued, “During the third quarter,
NobelClad booked several orders in the petrochemical sector, as
well as the upstream and downstream energy industries. In addition,
shipments began on the first major order from the engineered wood
industry, which NobelClad expects could become a long-term end
market.
“We continue to enhance our financial position,
and ended the third quarter with cash and cash equivalents of $24.6
million, and net cash of $12.6 million.
“Our third quarter performance was achieved in
the midst of difficult market conditions that were made more
challenging by the global pandemic. I am extremely proud of our
employees around the world for their efforts to keep themselves and
their co-workers safe, while also delivering on our commitments to
our customers.”
GuidanceMichael Kuta, CFO, said
fourth quarter 2020 sales are expected in a range of $50 million to
$55 million versus the $55.3 million reported in the 2020 third
quarter. At the business level, DynaEnergetics is expected to
report sales in a range of $30 million to $33 million versus the
$34.2 million reported in 2020 third quarter, while NobelClad’s
sales are expected in a range of $20 million to $22 million versus
the $21.1 million reported in the 2020 third quarter.
Consolidated gross margin is expected in a range
of 20% to 23% versus 25% in the 2020 third quarter. The anticipated
sequential decline reflects an expected seasonal drop in
higher-margin international sales at DynaEnergetics, and a less
favorable project mix at NobelClad.
Third quarter selling, general and
administrative (SG&A) expense is expected to be approximately
$12 million versus the $11.6 million reported in the 2020 third
quarter, while amortization expense is expected to be approximately
$370,000. Interest expense is expected in a range of $150,000 to
$200,000.
Adjusted EBITDA is expected in a range of $2
million to $4 million versus the $6.0 million in the third quarter
of 2020.
Fourth quarter capital expenditures are expected
in a range of $2 million to $3 million.
Conference call
informationManagement will hold a conference call to
discuss these results today at 5:00 p.m. Eastern (3:00 p.m.
Mountain). The call is available live via the Internet at:
https://www.webcaster4.com/Webcast/Page/2204/38112, or by dialing
844-407-9500 (862-298-0850 for international callers). No passcode
is necessary. Webcast participants should access the website at
least 15 minutes early to register and download any necessary audio
software. A replay of the webcast will be available for 90 days and
a telephonic replay will be available until November 5, 2020, by
calling 877-481-4010 (919-882-2331 for international callers) and
entering the Conference ID #38112.
*Use of Non-GAAP Financial
MeasuresAdjusted EBITDA, adjusted operating income (loss),
adjusted net income (loss), and net cash are non-GAAP (generally
accepted accounting principles) financial measures used by
management to measure operating performance and liquidity. Non-GAAP
results are presented only as a supplement to the financial
statements based on U.S. generally accepted accounting principles
(GAAP). The non-GAAP financial information is provided to enhance
the reader’s understanding of DMC’s financial performance, but no
non-GAAP measure should be considered in isolation or as a
substitute for financial measures calculated in accordance with
GAAP. Reconciliations of the most directly comparable GAAP measures
to non-GAAP measures are provided within the schedules attached to
this release.
EBITDA is defined as net income plus or minus
net interest plus taxes, depreciation and amortization. Adjusted
EBITDA excludes from EBITDA stock-based compensation, restructuring
and impairment charges and, when appropriate, other items that
management does not utilize in assessing DMC’s operating
performance (as further described in the attached financial
schedules). Adjusted operating income (loss) is defined as
operating income (loss) plus restructuring and impairment charges
and, when appropriate, other items that management does not utilize
in assessing DMC’s operating performance. Adjusted net income
(loss) is defined as net income plus restructuring and impairment
charges and, when appropriate, other items that management does not
utilize in assessing DMC’s operating performance. Net cash is
defined as cash and cash equivalents less total debt. None of these
non-GAAP financial measures are recognized terms under GAAP and do
not purport to be an alternative to net income as an indicator of
operating performance or any other GAAP measure.
Management uses adjusted EBITDA in its
operational and financial decision-making, believing that it is
useful to eliminate certain items in order to focus on what it
deems to be a more reliable indicator of ongoing operating
performance. As a result, internal management reports used during
monthly operating reviews feature adjusted EBITDA measures.
Management believes that investors may find this non-GAAP financial
measure useful for similar reasons, although investors are
cautioned that non-GAAP financial measures are not a substitute for
GAAP disclosures. In addition, management incentive awards are
based, in part, on the amount of adjusted EBITDA achieved during
relevant periods. EBITDA and adjusted EBITDA are also used by
research analysts, investment bankers and lenders to assess
operating performance. For example, a measure similar to adjusted
EBITDA is required by the lenders under DMC’s credit facility.
Net cash is used by management to supplement
GAAP financial information and evaluate DMC’s performance, and
management believes this information may be similarly useful to
investors. Adjusted operating income (loss) and adjusted net income
(loss) are presented because management believes these measures are
useful to understand the effects of restructuring and impairment
charges on DMC’s operating income (loss) and net income (loss),
respectively.
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.
All of the items included in the reconciliation
from net income to EBITDA and adjusted EBITDA are either (i)
non-cash items (e.g., depreciation, amortization of purchased
intangibles and stock-based compensation) or (ii) items that
management does not consider to be useful in assessing DMC’s
operating performance (e.g., income taxes, restructuring and
impairment charges). In the case of the non-cash items, management
believes that investors can better assess the company’s operating
performance if the measures are presented without such items
because, unlike cash expenses, these adjustments do not affect
DMC’s ability to generate free cash flow or invest in its business.
For example, by adjusting for depreciation and amortization in
computing EBITDA, users can compare operating performance without
regard to different accounting determinations such as useful life.
In the case of the other items, management believes that investors
can better assess operating performance if the measures are
presented without these items because their financial impact does
not reflect ongoing operating performance.
About DMCDMC Global is a
diversified holding company. Our innovative businesses provide
differentiated products and services to niche industrial and
commercial markets around the world. DMC’s objective is to identify
well-run businesses and strong management teams and support them
with long-term capital and strategic, legal, technology and
operating resources. Our approach helps our portfolio companies
grow core businesses, launch new initiatives, upgrade technologies
and systems to support their long-term strategy, and make
acquisitions that improve their competitive positions and expand
their markets. DMC’s culture is to foster local innovation versus
centralized control, and stand behind our businesses in ways that
truly add value. Today, DMC’s portfolio consists of DynaEnergetics
and NobelClad, which collectively address the energy, industrial
processing and transportation markets. Based in Broomfield,
Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more
information, visit the Company’s website at:
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 fourth
quarter guidance on sales, gross margin, SG&A, amortization
expense, interest expense, adjusted EBITDA, capital expenditures;
as well as our expectation that the DS MicroSet and DS Liberator
products will be commercially available in November 2020, fourth
quarter demand from North America’s unconventional market will be
consistent with the third quarter, international order volume will
decline in the fourth quarter and accelerate again in the first
half of 2021; and our expectation that the engineered wood industry
could become a meaningful long-term end market for NobelClad. Such
statements and information are based on numerous assumptions
regarding present and future business strategies, the markets in
which we operate, anticipated costs and 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;
our ability to collect on our accounts receivable; fluctuations in
customer demand; our ability to successfully execute and capitalize
upon growth opportunities; the success of DynaEnergetics’ product
and technology development initiatives; fluctuations in foreign
currencies; fluctuations in tariffs and quotas; 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; current or future limits on
manufacturing capacity at our various operations; the availability
and cost of funds; our ability to access our borrowing capacity
under our credit facility; impacts of COVID-19 and any related
preventive or protective actions taken by governmental authorities
and resulting economic impacts, including recessions or
depressions; and general economic conditions, both domestic and
foreign, impacting our business and the business of 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, 2019. 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 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2019 |
|
Sequential |
|
Year-on-year |
NET SALES |
$ |
55,281 |
|
|
$ |
43,203 |
|
|
$ |
100,094 |
|
|
28% |
|
-45% |
COST OF PRODUCTS SOLD |
41,688 |
|
|
36,599 |
|
|
63,870 |
|
|
14% |
|
-35% |
Gross profit |
13,593 |
|
|
6,604 |
|
|
36,224 |
|
|
106% |
|
-62% |
Gross profit percentage |
25 |
% |
|
15 |
% |
|
36 |
% |
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
General and administrative expenses |
6,911 |
|
|
6,707 |
|
|
10,128 |
|
|
3% |
|
-32% |
Selling and distribution expenses |
4,705 |
|
|
5,488 |
|
|
6,983 |
|
|
-14% |
|
-33% |
Amortization of purchased intangible assets |
369 |
|
|
353 |
|
|
394 |
|
|
5% |
|
-6% |
Restructuring expenses and asset impairments |
143 |
|
|
2,046 |
|
|
5,898 |
|
|
-93% |
|
-98% |
Total costs and expenses |
12,128 |
|
|
14,594 |
|
|
23,403 |
|
|
-17% |
|
-48% |
OPERATING INCOME (LOSS) |
1,465 |
|
|
(7,990 |
) |
|
12,821 |
|
|
118% |
|
-89% |
OTHER (EXPENSE) INCOME: |
|
|
|
|
|
|
|
|
|
Other (expense) income, net |
(148 |
) |
|
(85 |
) |
|
170 |
|
|
-74% |
|
-187% |
Interest expense, net |
(170 |
) |
|
(156 |
) |
|
(387 |
) |
|
-9% |
|
56% |
INCOME (LOSS) BEFORE INCOME
TAXES |
1,147 |
|
|
(8,231 |
) |
|
12,604 |
|
|
114% |
|
-91% |
INCOME TAX PROVISION
(BENEFIT) |
139 |
|
|
(2,583 |
) |
|
5,689 |
|
|
105% |
|
-98% |
NET INCOME (LOSS) |
1,008 |
|
|
(5,648 |
) |
|
6,915 |
|
|
118% |
|
-85% |
NET INCOME (LOSS) PER
SHARE |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.07 |
|
|
$ |
(0.38 |
) |
|
$ |
0.47 |
|
|
118% |
|
-85% |
Diluted |
$ |
0.07 |
|
|
$ |
(0.38 |
) |
|
$ |
0.46 |
|
|
118% |
|
-85% |
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
Basic |
14,820,881 |
|
|
14,832,242 |
|
|
14,632,276 |
|
|
—% |
|
1% |
Diluted |
14,820,881 |
|
|
14,832,242 |
|
|
14,851,166 |
|
|
—% |
|
—% |
DIVIDENDS DECLARED PER COMMON
SHARE |
$ |
— |
|
|
$ |
— |
|
|
$ |
0.125 |
|
|
|
|
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS(Amounts in Thousands, Except Share and Per Share
Data)(unaudited)
|
Nine months ended |
|
Change |
|
Sep 30, 2020 |
|
Sep 30, 2019 |
|
Year-on-year |
NET SALES |
$ |
172,048 |
|
|
$ |
311,183 |
|
|
-45% |
COST OF PRODUCTS SOLD |
127,381 |
|
|
196,481 |
|
|
-35% |
Gross profit |
44,667 |
|
|
114,702 |
|
|
-61% |
Gross profit percentage |
26 |
% |
|
37 |
% |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
General and administrative expenses |
21,744 |
|
|
28,756 |
|
|
-24% |
Selling and distribution expenses |
18,720 |
|
|
20,531 |
|
|
-9% |
Amortization of purchased intangible assets |
1,076 |
|
|
1,189 |
|
|
-10% |
Restructuring expenses and asset impairments |
3,305 |
|
|
6,300 |
|
|
-48% |
Total costs and expenses |
44,845 |
|
|
56,776 |
|
|
-21% |
OPERATING (LOSS) INCOME |
(178 |
) |
|
57,926 |
|
|
-100% |
OTHER (EXPENSE) INCOME: |
|
|
|
|
|
Other (expense) income, net |
(118 |
) |
|
492 |
|
|
-124% |
Interest expense, net |
(564 |
) |
|
(1,169 |
) |
|
52% |
(LOSS) INCOME BEFORE INCOME
TAXES |
(860 |
) |
|
57,249 |
|
|
-102% |
INCOME TAX (BENEFIT)
PROVISION |
(375 |
) |
|
17,920 |
|
|
-102% |
NET (LOSS) INCOME |
(485 |
) |
|
39,329 |
|
|
-101% |
NET (LOSS) INCOME PER
SHARE |
|
|
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
2.67 |
|
|
-101% |
Diluted |
$ |
(0.03 |
) |
|
$ |
2.64 |
|
|
-101% |
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING: |
|
|
|
|
|
Basic |
14,759,062 |
|
|
14,589,655 |
|
|
1% |
Diluted |
14,759,062 |
|
|
14,800,132 |
|
|
—% |
DIVIDENDS DECLARED PER COMMON
SHARE |
$ |
0.125 |
|
|
$ |
0.165 |
|
|
|
DMC GLOBAL INC.SEGMENT STATEMENTS OF
OPERATIONS(Amounts in Thousands)(unaudited)
DynaEnergetics
|
Three months ended |
|
Change |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2019 |
|
Sequential |
|
Year-on-year |
Net sales |
$ |
34,201 |
|
|
$ |
23,643 |
|
|
|
$ |
77,356 |
|
|
45% |
|
-56% |
Gross profit |
8,194 |
|
|
1,967 |
|
|
|
30,543 |
|
|
317% |
|
-73% |
Gross profit percentage |
24 |
% |
|
8 |
% |
|
39 |
% |
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
General and administrative expenses |
3,176 |
|
|
3,157 |
|
|
|
5,048 |
|
|
1% |
|
-37% |
Selling and distribution expenses |
2,445 |
|
|
3,595 |
|
|
|
4,405 |
|
|
-32% |
|
-44% |
Amortization of purchased intangible assets |
269 |
|
|
259 |
|
|
|
299 |
|
|
4% |
|
-10% |
Restructuring expenses and asset impairments |
133 |
|
|
1,851 |
|
|
|
5,880 |
|
|
-93% |
|
-98% |
Operating income (loss) |
2,171 |
|
|
(6,895 |
) |
|
|
14,911 |
|
|
131% |
|
-85% |
Adjusted EBITDA |
$ |
4,170 |
|
|
$ |
(3,272 |
) |
|
|
$ |
23,193 |
|
|
227% |
|
-82% |
|
Nine months ended |
|
Change |
|
Sep 30, 2020 |
|
Sep 30, 2019 |
|
Year-on-year |
Net sales |
$ |
111,065 |
|
|
$ |
245,820 |
|
|
-55% |
Gross profit |
29,640 |
|
|
98,116 |
|
|
-70% |
Gross profit percentage |
27 |
% |
|
40 |
% |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
General and administrative expenses |
10,164 |
|
|
13,360 |
|
|
-24% |
Selling and distribution expenses |
11,880 |
|
|
13,142 |
|
|
-10% |
Amortization of purchased intangible assets |
788 |
|
|
900 |
|
|
-12% |
Restructuring expenses and asset impairments |
2,922 |
|
|
5,880 |
|
|
-50% |
Operating income |
3,886 |
|
|
64,834 |
|
|
-94% |
Adjusted EBITDA |
$ |
12,218 |
|
|
$ |
76,234 |
|
|
-84% |
NobelClad
|
Three months ended |
|
Change |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2019 |
|
Sequential |
|
Year-on-year |
Net sales |
$ |
21,080 |
|
|
$ |
19,560 |
|
|
$ |
22,738 |
|
|
8% |
|
-7% |
Gross profit |
5,577 |
|
|
4,802 |
|
|
5,811 |
|
|
16% |
|
-4% |
Gross profit percentage |
26 |
% |
|
25 |
% |
|
26 |
% |
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
General and administrative expenses |
878 |
|
|
797 |
|
|
1,032 |
|
|
10% |
|
-15% |
Selling and distribution expenses |
2,106 |
|
|
1,731 |
|
|
2,447 |
|
|
22% |
|
-14% |
Amortization of purchased intangible assets |
100 |
|
|
94 |
|
|
95 |
|
|
6% |
|
5% |
Restructuring expenses and asset impairments |
10 |
|
|
195 |
|
|
18 |
|
|
-95% |
|
-44% |
Operating income |
2,483 |
|
|
1,985 |
|
|
2,219 |
|
|
25% |
|
12% |
Adjusted EBITDA |
$ |
3,372 |
|
|
$ |
3,061 |
|
|
$ |
3,082 |
|
|
10% |
|
9% |
DMC GLOBAL INC.SEGMENT STATEMENTS OF
OPERATIONS(Amounts in Thousands)(unaudited)
|
Nine months ended |
|
Change |
|
Sep 30, 2020 |
|
Sep 30, 2019 |
|
Year-on-year |
Net sales |
$ |
60,983 |
|
|
$ |
65,363 |
|
|
-7% |
Gross profit |
15,530 |
|
|
17,055 |
|
|
-9% |
Gross profit percentage |
25 |
% |
|
26 |
% |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
General and administrative expenses |
2,649 |
|
|
3,378 |
|
|
-22% |
Selling and distribution expenses |
6,388 |
|
|
6,996 |
|
|
-9% |
Amortization of purchased intangible assets |
288 |
|
|
289 |
|
|
—% |
Restructuring expenses and asset impairments |
264 |
|
|
420 |
|
|
-37% |
Operating income |
5,941 |
|
|
5,972 |
|
|
-1% |
Adjusted EBITDA |
$ |
8,799 |
|
|
$ |
8,869 |
|
|
-1% |
DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in Thousands)
|
|
|
|
|
|
|
Change |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Dec 31, 2019 |
|
Sequential |
|
From year-end |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
24,604 |
|
|
$ |
17,248 |
|
|
$ |
20,353 |
|
|
43% |
|
21% |
Accounts receivable, net |
34,424 |
|
|
33,684 |
|
|
60,855 |
|
|
2% |
|
-43% |
Inventory, net |
56,958 |
|
|
59,760 |
|
|
53,728 |
|
|
-5% |
|
6% |
Other current assets |
9,831 |
|
|
8,419 |
|
|
9,417 |
|
|
17% |
|
4% |
|
|
|
|
|
|
|
|
|
|
Total current assets |
125,817 |
|
|
119,111 |
|
|
144,353 |
|
|
6% |
|
-13% |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net |
107,402 |
|
|
106,453 |
|
|
108,234 |
|
|
1% |
|
-1% |
Purchased intangible assets,
net |
4,383 |
|
|
4,784 |
|
|
5,880 |
|
|
-8% |
|
-25% |
Other long-term assets |
21,681 |
|
|
21,669 |
|
|
18,954 |
|
|
—% |
|
14% |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
259,283 |
|
|
$ |
252,017 |
|
|
$ |
277,421 |
|
|
3% |
|
-7% |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
22,123 |
|
|
$ |
21,473 |
|
|
$ |
34,758 |
|
|
3% |
|
-36% |
Contract liabilities |
5,195 |
|
|
5,226 |
|
|
2,736 |
|
|
-1% |
|
90% |
Dividend payable |
— |
|
|
— |
|
|
1,866 |
|
|
n/a |
|
-100% |
Accrued income taxes |
7,080 |
|
|
5,727 |
|
|
9,651 |
|
|
24% |
|
-27% |
Current portion of long-term
debt |
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
—% |
|
—% |
Other current liabilities |
16,555 |
|
|
14,340 |
|
|
19,287 |
|
|
15% |
|
-14% |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
54,078 |
|
|
49,891 |
|
|
71,423 |
|
|
8% |
|
-24% |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
8,867 |
|
|
9,595 |
|
|
11,147 |
|
|
-8% |
|
-20% |
Deferred tax liabilities |
3,181 |
|
|
2,747 |
|
|
3,786 |
|
|
16% |
|
-16% |
Other long-term
liabilities |
23,206 |
|
|
19,501 |
|
|
18,924 |
|
|
19% |
|
23% |
Stockholders’ equity |
169,951 |
|
|
170,283 |
|
|
172,141 |
|
|
—% |
|
-1% |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
$ |
259,283 |
|
|
$ |
252,017 |
|
|
$ |
277,421 |
|
|
3% |
|
-7% |
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Amounts in Thousands)(unaudited)
|
Three months ended |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2019 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
Net income (loss) |
$ |
1,008 |
|
|
$ |
(5,648 |
) |
|
$ |
6,915 |
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation |
2,451 |
|
|
2,364 |
|
|
2,223 |
|
Amortization of purchased intangible assets |
369 |
|
|
353 |
|
|
394 |
|
Amortization of deferred debt issuance costs |
55 |
|
|
59 |
|
|
47 |
|
Stock-based compensation |
1,595 |
|
|
1,441 |
|
|
1,242 |
|
Deferred income taxes |
521 |
|
|
(1,200 |
) |
|
1,236 |
|
Loss (gain) on disposal of property, plant and equipment |
114 |
|
|
(14 |
) |
|
26 |
|
Restructuring expenses and asset impairment |
143 |
|
|
2,046 |
|
|
5,898 |
|
Change in working capital, net |
3,970 |
|
|
6,807 |
|
|
(6,187 |
) |
Net cash provided by operating activities |
10,226 |
|
|
6,208 |
|
|
11,794 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
Acquisition of property, plant and equipment |
(2,206 |
) |
|
(2,355 |
) |
|
(6,094 |
) |
Proceeds on sale of property, plant and equipment |
6 |
|
|
14 |
|
|
— |
|
Net cash used in investing activities |
(2,200 |
) |
|
(2,341 |
) |
|
(6,094 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
Repayments on revolving loans, net |
— |
|
|
— |
|
|
(7,000 |
) |
Repayments on capital expenditure facility |
(782 |
) |
|
(781 |
) |
|
(782 |
) |
Payment of dividends |
— |
|
|
(1,883 |
) |
|
(298 |
) |
Payment of deferred debt issuance costs |
(4 |
) |
|
(84 |
) |
|
— |
|
Net proceeds from issuance of common stock |
3 |
|
|
263 |
|
|
— |
|
Treasury stock purchases |
(55 |
) |
|
(34 |
) |
|
(123 |
) |
Net cash used in financing activities |
(838 |
) |
|
(2,519 |
) |
|
(8,203 |
) |
EFFECTS OF EXCHANGE RATES ON
CASH |
168 |
|
|
(551 |
) |
|
(195 |
) |
|
|
|
|
|
|
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
7,356 |
|
|
797 |
|
|
(2,698 |
) |
CASH AND CASH EQUIVALENTS,
beginning of the period |
17,248 |
|
|
16,451 |
|
|
14,881 |
|
CASH AND CASH EQUIVALENTS, end
of the period |
$ |
24,604 |
|
|
$ |
17,248 |
|
|
$ |
12,183 |
|
DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Amounts in Thousands)(unaudited)
|
Nine months ended |
|
Sep 30, 2020 |
|
Sep 30, 2019 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net (loss) income |
(485 |
) |
|
39,329 |
|
Adjustments to reconcile net (loss) Income to net cash provided by
operating activities: |
|
|
|
Depreciation |
7,167 |
|
|
6,178 |
|
Amortization of purchased intangible assets |
1,076 |
|
|
1,189 |
|
Amortization of deferred debt issuance costs |
154 |
|
|
130 |
|
Stock-based compensation |
4,154 |
|
|
3,908 |
|
Deferred income taxes |
(839 |
) |
|
1,660 |
|
Loss on disposal of property, plant and equipment |
113 |
|
|
343 |
|
Restructuring expenses and asset impairments |
3,305 |
|
|
6,300 |
|
Change in working capital, net |
6,709 |
|
|
(23,941 |
) |
Net cash provided by operating activities |
21,354 |
|
|
35,096 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Acquisition of property, plant and equipment |
(9,682 |
) |
|
(22,377 |
) |
Proceeds on sale of property, plant and equipment |
20 |
|
|
1,258 |
|
Net cash used in investing activities |
(9,662 |
) |
|
(21,119 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Repayments on revolving loans, net |
— |
|
|
(10,999 |
) |
Repayments on capital expenditure facility |
(2,344 |
) |
|
(2,344 |
) |
Payment of dividends |
(3,749 |
) |
|
(896 |
) |
Payment of deferred debt issuance costs |
(88 |
) |
|
— |
|
Net proceeds from issuance of common stock |
266 |
|
|
358 |
|
Treasury stock purchases |
(1,123 |
) |
|
(1,079 |
) |
Net cash used in financing activities |
(7,038 |
) |
|
(14,960 |
) |
EFFECTS OF EXCHANGE RATES ON
CASH |
(403 |
) |
|
(209 |
) |
|
|
|
|
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
4,251 |
|
|
(1,192 |
) |
CASH AND CASH EQUIVALENTS,
beginning of the period |
20,353 |
|
|
13,375 |
|
CASH AND CASH EQUIVALENTS, end of the period |
$ |
24,604 |
|
|
$ |
12,183 |
|
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 |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2019 |
|
Sequential |
|
Year-on-year |
Net income (loss) |
$ |
1,008 |
|
|
$ |
(5,648 |
) |
|
$ |
6,915 |
|
|
118% |
|
-85% |
Interest expense, net |
170 |
|
|
156 |
|
|
387 |
|
|
9% |
|
-56% |
Income tax provision
(benefit) |
139 |
|
|
(2,583 |
) |
|
5,689 |
|
|
105% |
|
-98% |
Depreciation |
2,451 |
|
|
2,364 |
|
|
2,223 |
|
|
4% |
|
10% |
Amortization of purchased
intangible assets |
369 |
|
|
353 |
|
|
394 |
|
|
5% |
|
-6% |
|
|
|
|
|
|
|
|
|
|
EBITDA |
4,137 |
|
|
(5,358 |
) |
|
15,608 |
|
|
177% |
|
-73% |
Restructuring expenses and
asset impairments |
143 |
|
|
2,046 |
|
|
5,898 |
|
|
-93% |
|
-98% |
Restructuring related
inventory write down |
— |
|
|
— |
|
|
630 |
|
|
n/a |
|
-100% |
Stock-based compensation |
1,595 |
|
|
1,441 |
|
|
1,242 |
|
|
11% |
|
28% |
Other expense (income),
net |
148 |
|
|
85 |
|
|
(170 |
) |
|
74% |
|
187% |
Adjusted EBITDA |
$ |
6,023 |
|
|
$ |
(1,786 |
) |
|
$ |
23,208 |
|
|
437% |
|
-74% |
|
Nine months ended |
|
Change |
|
Sep 30, 2020 |
|
Sep 30, 2019 |
|
Year-on-year |
Net (loss) income |
(485 |
) |
|
39,329 |
|
|
-101% |
Interest expense, net |
564 |
|
|
1,169 |
|
|
-52% |
Income tax (benefit)
provision |
(375 |
) |
|
17,920 |
|
|
-102% |
Depreciation |
7,167 |
|
|
6,178 |
|
|
16% |
Amortization of purchased
intangible assets |
1,076 |
|
|
1,189 |
|
|
-10% |
|
|
|
|
|
|
EBITDA |
7,947 |
|
|
65,785 |
|
|
-88% |
Restructuring expenses and
asset impairments |
3,305 |
|
|
6,300 |
|
|
-48% |
Restructuring related
inventory write down |
— |
|
|
630 |
|
|
-100% |
Stock-based compensation |
4,154 |
|
|
3,908 |
|
|
6% |
Other expense (income),
net |
118 |
|
|
(492 |
) |
|
124% |
Adjusted EBITDA |
$ |
15,524 |
|
|
$ |
76,131 |
|
|
-80% |
Adjusted operating income
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
|
Three months ended |
|
Change |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2019 |
|
Sequential |
|
Year-on-year |
Operating income (loss), as reported |
$ |
1,465 |
|
|
$ |
(7,990 |
) |
|
$ |
12,821 |
|
|
118% |
|
-89% |
Restructuring programs: |
|
|
|
|
|
|
|
|
|
DynaEnergetics |
133 |
|
|
1,851 |
|
|
5,880 |
|
|
-93% |
|
-98% |
NobelClad |
10 |
|
|
195 |
|
|
18 |
|
|
-95% |
|
-44% |
Restructuring related
inventory write down |
— |
|
|
— |
|
|
630 |
|
|
n/a |
|
-100% |
Adjusted operating income
(loss) |
$ |
1,608 |
|
|
$ |
(5,944 |
) |
|
$ |
19,349 |
|
|
127% |
|
-92% |
|
Nine months ended |
|
Change |
|
Sep 30, 2020 |
|
Sep 30, 2019 |
|
Year-on-year |
Operating (loss) income, as reported |
$ |
(178 |
) |
|
$ |
57,926 |
|
|
-100% |
Restructuring programs: |
|
|
|
|
|
DynaEnergetics |
2,922 |
|
|
5,880 |
|
|
-50% |
NobelClad |
264 |
|
|
420 |
|
|
-37% |
Corporate |
119 |
|
|
— |
|
|
n/a |
Restructuring related
inventory write down |
— |
|
|
630 |
|
|
-100% |
Adjusted operating income |
$ |
3,127 |
|
|
$ |
64,856 |
|
|
-95% |
Adjusted Net Income and Adjusted Diluted Earnings per Share
|
Three months ended September 30, 2020 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net income, as reported |
$ |
1,147 |
|
|
$ |
139 |
|
|
$ |
1,008 |
|
|
$ |
0.07 |
|
Restructuring programs: |
|
|
|
|
|
|
|
DynaEnergetics |
133 |
|
|
(39 |
) |
|
172 |
|
|
0.01 |
|
NobelClad |
10 |
|
|
3 |
|
|
7 |
|
|
— |
|
Adjusted net income |
$ |
1,290 |
|
|
$ |
103 |
|
|
$ |
1,187 |
|
|
$ |
0.08 |
|
|
Three months ended June 30, 2020 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net loss, as reported |
$ |
(8,231 |
) |
|
$ |
(2,583 |
) |
|
$ |
(5,648 |
) |
|
$ |
(0.38 |
) |
Restructuring programs: |
|
|
|
|
|
|
|
DynaEnergetics |
1,851 |
|
|
728 |
|
|
1,123 |
|
|
0.08 |
|
NobelClad |
195 |
|
|
65 |
|
|
130 |
|
|
0.01 |
|
Adjusted net loss |
$ |
(6,185 |
) |
|
$ |
(1,790 |
) |
|
$ |
(4,395 |
) |
|
$ |
(0.29 |
) |
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
|
Three months ended September 30, 2019 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net income, as reported |
$ |
12,604 |
|
|
$ |
5,689 |
|
|
$ |
6,915 |
|
|
$ |
0.46 |
|
Restructuring programs: |
|
|
|
|
|
|
|
DynaEnergetics |
5,880 |
|
|
77 |
|
|
5,803 |
|
|
0.40 |
|
NobelClad |
18 |
|
|
— |
|
|
18 |
|
|
— |
|
Restructuring related
inventory write down |
630 |
|
|
— |
|
|
630 |
|
|
0.04 |
|
Adjusted net income |
$ |
19,132 |
|
|
$ |
5,766 |
|
|
$ |
13,366 |
|
|
$ |
0.90 |
|
|
Nine months ended September 30, 2020 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net loss, as reported |
$ |
(860 |
) |
|
$ |
(375 |
) |
|
$ |
(485 |
) |
|
$ |
(0.03 |
) |
Restructuring programs: |
|
|
|
|
|
|
|
DynaEnergetics |
2,922 |
|
|
896 |
|
|
2,026 |
|
|
0.14 |
|
NobelClad |
264 |
|
|
77 |
|
|
187 |
|
|
0.01 |
|
Corporate |
119 |
|
|
25 |
|
|
94 |
|
|
0.01 |
|
Adjusted net income |
$ |
2,445 |
|
|
$ |
623 |
|
|
$ |
1,822 |
|
|
$ |
0.13 |
|
|
Nine months ended September 30, 2019 |
|
Pretax |
|
Tax |
|
Net |
|
Diluted EPS |
Net income, as reported |
$ |
57,249 |
|
|
$ |
17,920 |
|
|
$ |
39,329 |
|
|
$ |
2.64 |
|
Restructuring programs: |
|
|
|
|
|
|
|
DynaEnergetics |
5,880 |
|
|
77 |
|
|
5,803 |
|
|
0.39 |
|
NobelClad |
420 |
|
|
— |
|
|
420 |
|
|
0.03 |
|
Restructuring related
inventory write down |
630 |
|
|
— |
|
|
630 |
|
|
0.04 |
|
Adjusted net income |
$ |
64,179 |
|
|
$ |
17,997 |
|
|
$ |
46,182 |
|
|
$ |
3.10 |
|
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
Return on Invested Capital
|
|
|
Three months ended |
|
|
|
Sep 30, 2019 |
|
Dec 31, 2019 |
|
Mar 31, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2020 |
Operating income (loss) |
|
|
12,821 |
|
|
$ |
499 |
|
|
$ |
6,347 |
|
|
$ |
(7,990 |
) |
|
$ |
1,465 |
|
Income tax provision (benefit)
(1) |
|
|
5,782 |
|
|
5,227 |
|
|
2,107 |
|
|
(2,509 |
) |
|
177 |
|
Net operating profit (loss)
after taxes (NOPAT) |
|
|
7,039 |
|
|
(4,728 |
) |
|
4,240 |
|
|
(5,481 |
) |
|
1,288 |
|
Trailing Twelve Months
NOPAT |
|
|
|
|
|
|
|
|
1,070 |
|
|
(4,681 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of |
|
Jun 30, 2019 |
|
Sep 30, 2019 |
|
Dec 31, 2019 |
|
Mar 31, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2020 |
Allowance for doubtful
accounts |
428 |
|
|
405 |
|
|
967 |
|
|
2,320 |
|
|
2,882 |
|
|
2,709 |
|
Deferred tax assets |
(3,656 |
) |
|
(3,431 |
) |
|
(3,836 |
) |
|
(3,902 |
) |
|
(4,157 |
) |
|
(4,070 |
) |
Deferred tax liabilities |
458 |
|
|
1,469 |
|
|
3,786 |
|
|
3,692 |
|
|
2,747 |
|
|
3,181 |
|
Accrued income taxes |
9,419 |
|
|
10,427 |
|
|
9,651 |
|
|
8,666 |
|
|
5,727 |
|
|
7,080 |
|
Current portion of lease
liabilities |
2,016 |
|
|
1,944 |
|
|
1,716 |
|
|
1,618 |
|
|
1,846 |
|
|
1,804 |
|
Long-term portion of lease
liabilities |
9,506 |
|
|
9,487 |
|
|
9,777 |
|
|
9,454 |
|
|
10,430 |
|
|
10,155 |
|
Current portion of long-term
debt |
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
|
3,125 |
|
Long-term debt |
32,744 |
|
|
25,010 |
|
|
11,147 |
|
|
10,406 |
|
|
9,595 |
|
|
8,867 |
|
Total stockholders'
equity |
163,501 |
|
|
167,076 |
|
|
172,141 |
|
|
173,689 |
|
|
170,283 |
|
|
169,951 |
|
Total invested capital |
217,541 |
|
|
215,512 |
|
|
208,474 |
|
|
209,068 |
|
|
202,478 |
|
|
202,802 |
|
Average invested capital |
|
|
|
|
|
|
206,300 |
|
|
210,010 |
|
|
209,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve Months Return
on Invested Capital (ROIC) |
|
|
|
|
|
18 |
% |
|
12 |
% |
|
1 |
% |
|
(2 |
)% |
(1) Tax
calculation for NOPAT: |
|
Three months ended |
|
Twelve months ended |
|
Three months ended |
|
Sep 30, 2019 |
|
Dec 31, 2019 |
|
Dec 31, 2019 |
|
Mar 31, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2020 |
Income (loss) before income taxes |
12,604 |
|
|
(547 |
) |
|
|
56,702 |
|
|
6,224 |
|
|
(8,231 |
) |
|
|
1,147 |
|
Income tax provision
(benefit) |
5,689 |
|
|
4,741 |
|
|
|
22,661 |
|
|
2,069 |
|
|
(2,583 |
) |
|
|
139 |
|
Effective tax rate |
45.1 |
% |
|
(866.7 |
)% |
|
|
40.0 |
% |
|
33.2 |
% |
|
31.4 |
% |
|
|
12.1 |
% |
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
DynaEnergetics
|
Three months ended |
|
Change |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2019 |
|
Sequential |
|
Year-on-year |
Operating income (loss), as reported |
$ |
2,171 |
|
|
$ |
(6,895 |
) |
|
$ |
14,911 |
|
|
131% |
|
|
-85% |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring |
133 |
|
|
1,851 |
|
|
5,880 |
|
|
-93% |
|
|
-98% |
|
Restructuring related inventory write down |
— |
|
|
— |
|
|
630 |
|
|
n/a |
|
-100% |
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating (loss)
income |
2,304 |
|
|
(5,044 |
) |
|
21,421 |
|
|
146% |
|
|
-89% |
|
Depreciation |
1,597 |
|
|
1,513 |
|
|
1,473 |
|
|
6% |
|
|
8% |
|
Amortization of purchased intangibles |
269 |
|
|
259 |
|
|
299 |
|
|
4% |
|
|
-10% |
|
Adjusted EBITDA |
$ |
4,170 |
|
|
$ |
(3,272 |
) |
|
$ |
23,193 |
|
|
227% |
|
|
-82% |
|
|
Nine months ended |
|
|
|
Sep 30, 2020 |
|
Sep 30, 2019 |
|
Year-on-year |
Operating income, as reported |
$ |
3,886 |
|
|
$ |
64,834 |
|
|
-94% |
Adjustments: |
|
|
|
|
|
Restructuring |
2,922 |
|
|
5,880 |
|
|
-50% |
Restructuring related inventory write down |
— |
|
|
630 |
|
|
-100% |
|
|
|
|
|
|
Adjusted operating income |
6,808 |
|
|
71,344 |
|
|
-90% |
Depreciation |
4,622 |
|
|
3,990 |
|
|
16% |
Amortization of purchased intangibles |
788 |
|
|
900 |
|
|
-12% |
Adjusted EBITDA |
$ |
12,218 |
|
|
$ |
76,234 |
|
|
-84% |
NobelClad
|
Three months ended |
|
Change |
|
Sep 30, 2020 |
|
Jun 30, 2020 |
|
Sep 30, 2019 |
|
Sequential |
|
Year-on-year |
Operating income, as reported |
$ |
2,483 |
|
|
$ |
1,985 |
|
|
$ |
2,219 |
|
|
25% |
|
12% |
Adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring expenses and asset impairments |
10 |
|
|
195 |
|
|
18 |
|
|
-95% |
|
-44% |
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
2,493 |
|
|
2,180 |
|
|
2,237 |
|
|
|
|
|
Depreciation |
779 |
|
|
787 |
|
|
750 |
|
|
-1% |
|
4% |
Amortization of purchased intangibles |
100 |
|
|
94 |
|
|
95 |
|
|
6% |
|
5% |
Adjusted EBITDA |
$ |
3,372 |
|
|
$ |
3,061 |
|
|
$ |
3,082 |
|
|
10% |
|
9% |
DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL
MEASUREMENTS(Amounts in Thousands)(unaudited)
|
Nine months ended |
|
|
|
Sep 30, 2020 |
|
Sep 30, 2019 |
|
Year-on-year |
Operating income, as reported |
$ |
5,941 |
|
|
$ |
5,972 |
|
|
-1% |
Adjustments: |
|
|
|
|
|
Restructuring expenses and asset impairments |
264 |
|
|
420 |
|
|
-37% |
|
|
|
|
|
|
Adjusted operating income |
6,205 |
|
|
6,392 |
|
|
|
Depreciation |
2,306 |
|
|
2,188 |
|
|
5% |
Amortization of purchased intangibles |
288 |
|
|
289 |
|
|
—% |
Adjusted EBITDA |
$ |
8,799 |
|
|
$ |
8,869 |
|
|
-1% |
CONTACT:Geoff High, Vice President of Investor
Relations303-604-3924
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