DMC Global Inc. (Nasdaq: BOOM) today announced Kevin Longe has
stepped down as president and chief executive officer, effective
immediately. DMC’s board of directors has named chief financial
officer Michael Kuta and the Company’s chairman, David Aldous, as
interim co-CEOs. Mr. Kuta has agreed to postpone his previously
announced retirement and will remain on DMC’s leadership team to
ensure a smooth transition. He will also retain the title of CFO
until his successor is named.
Director Richard Graff, a member of DMC’s Board
of Directors, was appointed interim chairman of the board while
Aldous serves as Co-CEO.
The DMC board will work with a leading executive
search firm to identify and evaluate internal and external
candidates for a new CEO to lead DMC in the next stage of its
development.
“On behalf of the Board, I want to thank Kevin
for his stewardship of DMC, and his service to our employees,
customers and stakeholders,” Aldous said. “As we enter the next
phase of DMC’s evolution, we are dedicated to improving returns for
the Company’s stakeholders. We will continue to ensure each of our
businesses has the leadership, strategy, and resources that will
enable their long-term growth. With our businesses positioned for
success, we are now at an important inflection point in our
development as a company.”
Kuta added, “We are laser focused on enabling
each of our businesses to achieve their growth objectives, deliver
industry leading margins and improved free cash flow. Our highest
priorities include accelerating the integration of Arcadia,
strengthening the profitability of DynaEnergetics, achieving
commercial success with NobelClad’s new products, and improving
DMC’s cash flow through more effective working capital management
and targeted cost reductions. I am very encouraged by the strength
of DMC and its businesses, as well as our prospects for growth and
improved returns for our shareholders.”
DMC Updates Guidance DMC
updated its guidance for the 2022 fourth quarter. Sales are now
expected in a range of $173 million to $175 million versus prior
guidance of $158 million to $168 million. The Company also expects
adjusted EBITDA will be at or slightly above the high end of its
previously guided range of $15 million to $18 million.
About David Aldous Aldous
joined the DMC board of directors in 2013 and became chairman in
2018. He has over 35 years of corporate leadership experience in
the energy, alternative energy, chemical and petrochemical
industries. Most recently, he was the CEO and director of Rive
Technology Inc., a privately held nanotechnology company providing
solutions for diffusion-limited reactions to the refining,
chemical, and petrochemical industries. Prior to joining Rive
Technology in 2012, Aldous served as CEO and director of Range
Fuels Inc., a clean energy and biofuels company from 2009 to 2012.
Aldous also spent more than 20 years with Royal Dutch Shell where
he held the roles of executive vice president of portfolio and
strategy, president of Shell Canada Products, and president and CEO
of CRI/Criterion, a global portfolio of technology, licensing, and
manufacturing companies. Additionally, he served as director and
chairman of several Shell joint ventures and as a director of
Lanzatech. Aldous holds a bachelor of science in fuels engineering
from the University of Utah and an MBA with distinction from
Northwestern University.
About Michael Kuta During his
25-year financial career, Kuta has gained extensive experience
managing complex financing transactions, developing long-range
strategic business-unit growth plans, integrating mergers and
acquisitions, managing capital structure, debt and equity
financing, building and developing financial teams, and providing
financial and operational leadership. His industry experience spans
industrial, energy, and petrochemical sectors.
Prior to joining DMC as CFO in 2014, Kuta was
Corporate Controller of the Lubrizol Corporation, a global
specialty chemicals company owned by Berkshire Hathaway, where he
was responsible for corporate accounting, consolidation and
financial reporting functions, and oversight of internal controls.
Prior to Berkshire Hathaway’s 2011 acquisition of Lubrizol, Kuta
held a variety of financial roles at Lubrizol, where he gained
extensive experience in business partnering, financial planning and
analysis, treasury and capital markets, and leading finance and
accounting organizations. Kuta also held several roles of
increasing responsibility at other diversified manufacturing
companies, including Lincoln Electric. He earned a bachelor’s
degree in accounting from Kent State University and an MBA in
finance from Case Western Reserve University. He also is a CPA.
About DMC Global Inc. DMC
Global operates three differentiated, asset-light
manufacturing businesses that serve niche segments of the building
products, energy, and industrial infrastructure
industries. DMC supports its companies with long-term
capital and strategic, financial, legal, technology and operating
resources, enabling them to grow their core businesses, launch new
initiatives, upgrade technologies and systems, and make
acquisitions that improve their competitive positions and expand
their markets. The DMC family of companies consists 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 WWW.DMCGLOBAL.COM.
Safe Harbor Language 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
statements regarding leadership matters, business objectives, and
financial results including growth, sales, adjusted EBITDA, margins
and cash flows. Such statements and information are based on
numerous assumptions regarding factors including 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 the risks detailed from
time to time in our SEC reports, including the annual report on
Form 10-K for the year ended December 31, 2021, all of which are
incorporated by reference herein. 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.
INVESTOR CONTACT: Geoff High Vice
President of Investor Relations 303-604-3924
MEDIA CONTACT: Dan Gagnier or
Riyaz Lalani Gagnier Communications 646-342-8087
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