Dynamic Materials Reports Third Quarter 2004 Financial Results
BOULDER, Colo., Nov. 11 /PRNewswire-FirstCall/ -- Dynamic Materials
Corporation, (NASDAQ:BOOM), "DMC", today reported third quarter
income from continuing operations of $1,135,275, or $.22 per
diluted share, versus income from continuing operations of
$358,568, or $.07 per diluted share, for the third quarter of 2003.
DMC's third quarter 2004 sales were $12,070,114, a 24% increase
from third quarter 2003 sales of $9,724,125. For the nine months
ended September 30, 2004, DMC reported income from continuing
operations of $2,106,667, or $.41 per diluted share, versus income
from continuing operations of $1,367,312, or $.27 per diluted
share, for the first nine months of 2003. Reported sales for the
first nine months of 2004 increased by 27% to $34,215,328 from
$26,930,181 for the comparable period of 2003. For the three months
ended September 30, 2004, DMC reported net income of $833,902, or
$.16 per diluted share, compared to a net loss of $679,393, or $.13
per diluted share, for the third quarter of 2003. For the nine
months ended September 30, 2004, DMC reported net income of
$537,130, or $.10 per diluted share, versus a net loss $130,281, or
$.03 per diluted share, for the first nine months of 2003. Reported
net income for the three and nine months ended September 30, 2004
reflects the negative effect of a loss from discontinued operations
of $301,373, or $.06 per diluted share, and $1,569,537, or $.31 per
diluted share, respectively, including operating losses of $133,373
and $782,537 for the respective periods and a $787,000 loss for the
nine-month period relating to the previously announced divestiture
of the Company's Spin Forge Division under a transaction that
closed on September 17, 2004. The net loss for the three and nine
months ended September 30, 2003 included losses from discontinued
operations of $1,037,961, or $.20 per diluted share, and
$1,497,593, or $.30 per diluted share, respectively, relating to
the combined 2003 operating losses of Spin Forge and the former
Precision Machined Products ("PMP") division, which was sold on
October 7, 2003, and a loss on the sale of PMP in the amount of
$710,309 that was recorded in the third quarter of 2003. Explosive
Metalworking Group Performance DMC's Explosive Metalworking Group
reported third quarter 2004 sales of $11,341,677, a 25% increase
from sales of $9,068,486 for the third quarter of 2003. For the
three months ended September 30, 2004 and 2003, the Group reported
income from operations of $1,868,924 and $820,852, respectively.
Group sales for the nine months ended September 30, 2004 were
$32,428,150, an increase of 31% from sales of $24,820,283 for the
first nine months of 2003. The Group reported income from
operations of $3,736,230 and $2,397,995 for the nine months ended
September 30, 2004 and 2003, respectively. The 56% increase in the
Group's year-to-date operating income follows a 31% sales increase
and reflects a more favorable absorption of both fixed
manufacturing overhead expenses and operating expenses. The
Explosive Metalworking Group's backlog, which had increased from
$11.7 million at the end of 2003 to $21.1 million as of June 30,
2004, increased further to $25.6 million as of September 30, 2004.
This record backlog should result in the Group reporting strong
sales and operating income in the fourth quarter of 2004 and first
quarter of 2005. AMK Welding Performance Historically, DMC's
Aerospace Group was comprised of the AMK Welding ("AMK"), Spin
Forge and PMP divisions. Since PMP and Spin Forge are now reported
as discontinued operations due to the 2003 sale of PMP and the 2004
divestiture of Spin Forge, the Aerospace Group no longer exists and
AMK is now being reported as a stand-alone business segment. AMK
contributed $728,437 to sales in the third quarter of 2004, an
increase of 11% from reported sales of $655,639 in the third
quarter of 2003. For the nine months ended September 30, 2004,
AMK's sales decreased by 15% to $1,787,178 from the $2,109,898 in
sales that AMK posted for the comparable period of 2003. AMK
reported operating income of $43,519 for the nine months ended
September 30, 2004 compared to operating income of $447,827 for the
comparable period of 2003. For the three months ended September 30,
2004 and 2003, AMK reported operating income of $77,830 and
$92,547, respectively. AMK year-to-date sales and operating income
levels have declined as a result of less development work during
2004 on a new ground turbine product that AMK's customer has
experienced delays in transitioning from a development phase into
production. Management Comments In commenting upon the Company's
third quarter 2004 results, Yvon Cariou, DMC's President and CEO,
stated, "The business fundamentals and near-term outlook for our
Explosive Metalworking Group remain very good and, with a record
backlog as of September 30, 2004, the Group expects further
improvement in sales and operating results during the fourth
quarter of 2004 and to get off to a strong start in 2005." Cariou
continued, "AMK's sales and operating income are also expected to
show improvement in the fourth quarter. Based upon our
understanding of AMK's customer's 2005 production plans for its new
product and an expected increase in demand for commercial and
military aircraft engines, prospects for measurable improvement in
2005 sales and operating results at AMK appear to be quite good."
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 NINE MONTHS ENDED SEPTEMBER 30,
2004 AND 2003 (unaudited) Three months ended Nine months ended
September 30, September 30, 2004 2003 2004 2003 NET SALES
$12,070,114 $9,724,125 $34,215,328 $26,930,181 COST OF PRODUCTS
SOLD 8,776,634 7,442,252 25,707,669 19,765,074 Gross profit
3,293,480 2,281,873 8,507,659 7,165,107 COSTS AND EXPENSES: General
and administrative expenses 572,325 684,280 2,256,825 2,133,530
Selling expenses 774,401 684,194 2,471,085 2,185,755 Total costs
and expenses 1,346,726 1,368,474 4,727,910 4,319,285 INCOME FROM
OPERATIONS OF CONTINUING OPERATIONS 1,946,754 913,399 3,779,749
2,845,822 OTHER INCOME (EXPENSE): Other income (expense), net
(4,823) (16,268) 2,219 (16,230) Interest expense (116,695)
(121,880) (350,717) (396,893) Interest income 6,481 1,260 18,100
2,888 INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS
1,831,717 776,511 3,449,351 2,435,587 INCOME TAX PROVISION 696,442
417,943 1,342,684 1,068,275 INCOME FROM CONTINUING OPERATIONS
1,135,275 358,568 2,106,667 1,367,312 DISCONTINUED OPERATIONS: Loss
from operations of discontinued operations, net of tax benefit
(133,373) (327,652) (782,537) (787,284) Loss on sale of assets
associated with discontinued operations, net of tax benefit
(168,000) (710,309) (787,000) (710,309) Loss from discontinued
operations (301,373) (1,037,961) (1,569,537) (1,497,593) NET INCOME
(LOSS) $833,902 $(679,393) $537,130 $(130,281) NET INCOME (LOSS)
PER SHARE - BASIC AND DILUTED: Income from continuing operations
$0.22 $0.07 $0.41 $0.27 Loss from discontinued operations (0.06)
(0.20) (0.31) (0.30) Net income (loss) $0.16 $(0.13) $0.10 $(0.03)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic 5,122,225
5,072,943 5,106,287 5,065,283 Diluted 5,216,542 5,139,144 5,192,441
5,093,010 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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