• DMC Global Reports Fourth Quarter Financial Results

    来源: Nasdaq GlobeNewswire / 22 2月 2024 16:05:01   America/New_York

    • Fourth quarter sales were $174.0 million, flat versus Q4 2022
    • Net income attributable to DMC was $2.8 million, while total net income was $3.6 million
    • Adjusted net income attributable to DMC* was $5.2 million, or $0.26 per diluted share
    • Adjusted EBITDA attributable to DMC* was $19.6 million, while total adjusted EBITDA, inclusive of non-controlling interest (NCI), was $23.3 million
    • Free-cash flow* was $15.0 million
    • Full-year results include record sales, adjusted EBITDA attributable to DMC, and free-cash flow performance

    BROOMFIELD, Colo., Feb. 22, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its fourth quarter ended December 31, 2023.

    Michael Kuta, president and CEO, said, “The fourth quarter marked the end of a milestone year for DMC. In addition to reporting record sales, adjusted EBITDA and free cash flow, we refined the operating strategies of our three businesses and initiated a review of alternative structures for DMC’s portfolio as part of a broader strategy for enhancing stakeholder value.

    “At the business level, the fourth quarter was notable for the varied conditions across our industrial end markets. At Arcadia, our architectural building products business, lower pricing impacted several of our markets in the western and southwestern United States. Arcadia’s fourth quarter sales were $68.0 million, down 9% from the 2022 fourth quarter. Adjusted EBITDA margin improved to 13.6% from 9.6% in the comparable 2022 fourth quarter, as the decline in product pricing was not as pronounced as the drop in raw material costs.

    “DynaEnergetics, our oilfield products business, reported continued strong demand in its international and North American markets. However, industry consolidation in the United States impacted pricing. Dyna’s fourth quarter sales were $75.3 million, down 3% versus the 2022 fourth quarter, but up 3% sequentially. Adjusted EBITDA margin was 12.3% versus 18.6% in the prior-year fourth quarter and 17.2% in the 2023 third quarter. We expect the new automation and operational-excellence initiatives coming on-line in 2024 will improve profitability at Dyna.

    “NobelClad, our composite metals business, continued to capitalize on healthy market conditions and delivered a very strong fourth quarter. Sales of $30.8 million were up 33% year-over-year. The increase, combined with a favorable product mix, led to adjusted EBITDA margins of 24.7%, up from 14.8% in the 2022 fourth quarter.

    “While challenging conditions in Arcadia’s markets will lead to a soft first quarter, we anticipate the business will experience improved demand during the balance of the year. Moreover, the recent addition of new painting capacity has improved Arcadia’s ability to capitalize on expected increases in activity.

    “At Dyna, strong demand for the new Gravity 2.0 self-orienting perforating system should be additive to the expected margin benefits of improved manufacturing efficiencies. We believe 2024 will be another strong year at NobelClad, as there are a broad range of large project opportunities for both traditional and new clad-plate applications.

    “As we enter 2024, our primary objective is to unlock value for DMC’s shareholders,” Kuta said. “Two key steps in this process are the simplification of our portfolio and maximizing the long-term growth opportunities at Arcadia. We are working with our financial advisors to explore strategic alternatives for NobelClad and DynaEnergetics, two valuable and innovative businesses that will continue to lead their respective industries. We also intend to capitalize on Arcadia’s differentiated business model and large addressable market, and are pursuing a range of compelling growth initiatives.”

    Eric Walter, CFO, said “Our new $300 million senior secured credit facility has strengthened DMC’s balance sheet and enhanced our financial flexibility as we execute our strategy. We believe we can fund our growth programs while maintaining our leverage and debt-service costs at prudent levels.”

    Kuta added, “We have the strategy, the leadership team and the capital structure to be successful. We also have an extraordinary team of dedicated employees who have enabled the success of our businesses. I sincerely thank them for their continued dedication.”

    Summary Fourth Quarter Results

     Three months ended Change
    (Amounts in 000’s, except Per Share Data)Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Net sales$174,036  $172,147  $175,074  1% (1)%
    Gross profit percentage 26.1%  30.6%  25.8%    
    SG&A$27,179  $28,713  $30,636  (5)% (11)%
    Net income$3,569  $11,525  $3,441  (69)% 4%
    Net income attributable to DMC$2,764  $8,883  $3,266  (69)% (15)%
    Diluted net income per share attributable to DMC$0.01  $0.38  $0.52  (97)% (98)%
    Adjusted net income attributable to DMC$5,179  $9,861  $4,259  (47)% 22%
    Adjusted diluted net income per share$0.26  $0.50  $0.22  (48)% 18%
    Adjusted EBITDA attributable to DMC$19,589  $24,607  $19,581  (20)% —%
    Adjusted EBITDA before NCI allocation$23,278  $29,981  $22,438  (22)% 4%


    Arcadia

     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Net sales$67,958  $71,455  $74,400  (5)% (9)%
    Gross profit percentage 27.8%  33.3%  24.2%     
    Adjusted EBITDA attributable to DMC$5,533  $8,060  $4,286  (31)% 29%
    Adjusted EBITDA before NCI allocation 9,222   13,434   7,143  (31)% 29%
    • Acadia’s year-over-year improvement in adjusted EBITDA margin reflects a less pronounced drop in product pricing as compared to aluminum costs.

    DynaEnergetics

     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Net sales$75,306  $72,998  $77,551  3% (3)%
    Gross profit percentage 21.4%  26.8%  28.1%     
    Adjusted EBITDA$9,286  $12,568  $14,439  (26)% (36)%
    • Fourth quarter 2023 adjusted EBITDA was negatively impacted by $1.0 million in bad debt expense.

    NobelClad

     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Net sales$30,772  $27,694  $23,123  11% 33%
    Gross profit percentage 33.8%  33.6%  23.9%    
    Adjusted EBITDA$7,608  $6,384  $3,433  19% 122%
    • NobelClad ended 2023 with an order backlog of $59 million versus $61 million at the end of the third quarter.
    • Rolling 12-month bookings were $109.8 million versus $110.9 million at the end of the third quarter; and the book-to-bill ratio was 1.04.

    Summary 2023 Results

     Twelve months endedChange
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    Net sales$719,188  $654,086  10%
    Gross profit percentage 29.5%  28.4%  
    SG&A$124,442  $118,349  5%
    Net income$34,759  $13,833  151%
    Net income attributable to DMC$26,259  $12,247  114%
    Diluted net income per share attributable to DMC$1.08  $0.72  50%
    Adjusted net income attributable to DMC$35,316  $13,475  162%
    Adjusted diluted net income per share$1.81  $0.70  159%
    Adjusted EBITDA attributable to DMC$96,063  $74,199  29%
    Adjusted EBITDA before NCI allocation$115,908  $92,967  25%


    First Quarter     2024 Guidance

    MeasureExpected Range
    Sales 
    DMC Consolidated$168M - $178M
    Arcadia$67M - $71M
    DynaEnergetics$77M - $81M
    NobelClad$24M - $26M
    Adjusted EBITDA 
    Arcadia before NCI allocation$7M - $10M
    Arcadia after NCI allocation$4M - $6M
    DynaEnergetics$11M - $13M
    NobelClad$3M - $4M
    Corporate Unallocated~ ($3M)
    Attributable to DMC$15M - $20M
    Full-Year 2024 Guidance on Select Items 
    Depreciation and amortization$35M - $36M
    Interest expense$8M - $9M
    Annualized effective tax rate27% - 29%
    Capital expenditures$22M - $26M


    Conference call information
    The conference call will begin today at 5 p.m. Eastern (3 p.m. Mountain) and will be accessible by dialing 877-407-5783 (or +1 201-689-8782 for international callers).

    Investors are invited to listen to the webcast live via the Internet at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=hzNWxwom

    Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. The webcast also will be available on the Investor page of DMC’s website, located at: ir.dmcglobal.com. A replay of the webcast will be available for six months.

    *Use of Non-GAAP Financial Measures
    In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (GAAP), the Company also discloses certain non-GAAP financial measures that we use in operational and financial decision making. Non-GAAP financial measures include the following:

    • EBITDA: defined as net income (loss) plus net interest, taxes, depreciation and amortization.
    • Adjusted EBITDA: excludes from EBITDA stock-based compensation, restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance (as further described in the tables below).
    • Adjusted EBITDA attributable to DMC Global Inc. stockholders: excludes the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest in Arcadia Products.
    • Adjusted EBITDA for DMC business segments: defined as operating income (loss) plus depreciation, amortization, allocated stock-based compensation (if applicable), restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing operating performance.
    • Adjusted net income (loss): defined as net income (loss) attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
    • Adjusted diluted earnings per share: defined as diluted earnings per share attributable to DMC Global Inc. stockholders (exclusive of adjustment of redeemable noncontrolling interest) plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
    • Net debt: defined as total debt less total cash, cash equivalents and marketable securities.
    • Free-cash flow: defined as cash flows provided by (used in) operating activities less net acquisitions of property, plant and equipment.

    Management believes providing these additional financial measures is useful to investors in understanding the Company’s operating performance, including the effects of restructuring, impairment, and other nonrecurring charges, as well as its liquidity. Management typically monitors the business utilizing the above non-GAAP measures, in addition to GAAP results, to understand and compare operating results across accounting periods, and certain management incentive awards are based, in part, on these measures. The presence of non-GAAP financial measures in this report is not intended to suggest that such measures be considered in isolation or as a substitute for, or as superior to, DMC’s GAAP information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness.

    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.

    About DMC Global Inc.
    DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC’s businesses have established leadership positions in their respective markets and consist 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: 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 guidance on sales, adjusted EBITDA, depreciation and amortization expense, interest expense, tax rate, capital expenditures; our expectations for a soft first quarter at Arcadia followed by improved demand during the balance of the year; our intentions with respect to growth at Arcadia; the impact of new painting and anodizing capacity expansions at Arcadia; improved profitability at DynaEnergetics resulting from new automation and operational excellence initiatives, as well as the success of new premium product offerings; our expectations of a strong year in NobelClad; and our ability to fund our growth programs while maintaining our leverage and debt-service costs at prudent levels. Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and the 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; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics’ product and technology development initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; consolidation among DynaEnergetics’ customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; 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; our ability to attract and retain key personnel; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions; inflation; supply chain delays and disruptions; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and 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, 2022. 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
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    NET SALES$174,036  $172,147  $175,074  1% (1)%
    COST OF PRODUCTS SOLD 128,682   119,550   129,970  8% (1)%
    Gross profit 45,354   52,597   45,104  (14)% 1%
    Gross profit percentage 26.1%  30.6%  25.8%    
    COSTS AND EXPENSES:         
    General and administrative expenses 15,056   16,259   19,789  (7)% (24)%
    Selling and distribution expenses 12,123   12,454   10,847  (3)% 12%
    Amortization of purchased intangible assets 5,666   5,667   3,772  —% 50%
    Restructuring expenses, net and asset impairments 3,251   515   129  531% 2,420%
    Total costs and expenses 36,096   34,895   34,537  3% 5%
    OPERATING INCOME 9,258   17,702   10,567  (48)% (12)%
    OTHER (EXPENSE) INCOME:         
    Other (expense) income, net (1,445)  302   (559) 578% 158%
    Interest expense, net (2,311)  (2,392)  (2,129) (3)% 9%
    INCOME BEFORE INCOME TAXES 5,502   15,612   7,879  (65)% (30)%
    INCOME TAX PROVISION 1,933   4,087   4,438  (53)% (56)%
    NET INCOME 3,569   11,525   3,441  (69)% 4%
    Less: Net income attributable to redeemable noncontrolling interest 805   2,642   175  (70)% 360%
    NET INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS$2,764  $8,883  $3,266  (69)% (15)%
    NET INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS        
    Basic$0.01  $0.38  $0.52  (97)% (98)%
    Diluted$0.01  $0.38  $0.52  (97)% (98)%
    WEIGHTED AVERAGE SHARES OUTSTANDING:         
    Basic 19,561,494   19,543,251   19,384,678  —% 1%
    Diluted 19,580,750   19,596,575   19,393,245  —% 1%

    Reconciliation to net income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share

     Three months ended
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022
    Net income attributable to DMC Global Inc. stockholders$2,764  $8,883  $3,266
    Adjustment of redeemable noncontrolling interest (2,581)  (1,263)  6,933
    Net income attributable to DMC Global Inc. common stockholders after adjustment of redeemable noncontrolling interest$183  $7,620  $10,199


     Twelve months ended Change
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    NET SALES$719,188  $654,086  10%
    COST OF PRODUCTS SOLD 507,136   468,639  8%
    Gross profit 212,052   185,447  14%
    Gross profit percentage 29.5%  28.4%  
    COSTS AND EXPENSES:     
    General and administrative expenses 75,341   76,119  (1)%
    Selling and distribution expenses 49,101   42,230  16%
    Amortization of purchased intangible assets 22,667   36,926  (39)%
    Restructuring expenses, net and asset impairments 3,766   182  1,969%
    Total costs and expenses 150,875   155,457  (3)%
    OPERATING INCOME 61,177   29,990  104%
    OTHER (EXPENSE) INCOME:     
    Other expense, net (1,782)  (594) 200%
    Interest expense, net (9,516)  (6,187) 54%
    INCOME BEFORE INCOME TAXES 49,879   23,209  115%
    INCOME TAX PROVISION 15,120   9,376  61%
    NET INCOME 34,759   13,833  151%
    Less: Net income attributable to redeemable noncontrolling interest 8,500   1,586  436%
    NET INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS$26,259  $12,247  114%
    NET INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS     
    Basic$1.08  $0.72  50%
    Diluted$1.08  $0.72  50%
    WEIGHTED AVERAGE SHARES OUTSTANDING:     
    Basic 19,504,542   19,360,677  1%
    Diluted 19,518,382   19,369,165  1%

    Reconciliation to net income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share

      Twelve months ended
      Dec 31, 2023 Dec 31, 2022
    Net income attributable to DMC Global Inc. stockholders $26,259  $12,247
    Adjustment of redeemable noncontrolling interest  (4,870)  1,937
    Net income attributable to DMC Global Inc. common stockholders after adjustment of redeemable noncontrolling interest $21,389  $14,184



    DMC GLOBAL INC.
    SEGMENT STATEMENTS OF OPERATIONS
    (Amounts in Thousands)
    (unaudited)
    Arcadia
     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Net sales$67,958  $71,455  $74,400  (5)% (9)%
    Gross profit 18,910   23,789   17,970  (21)% 5%
    Gross profit percentage 27.8%  33.3%  24.2%    
    COSTS AND EXPENSES:         
    General and administrative expenses 7,012   7,413   9,535  (5)% (26)%
    Selling and distribution expenses 4,028   4,248   4,352  (5)% (7)%
    Amortization of purchased intangible assets 5,652   5,652   3,642  —% 55%
    Operating income 2,218   6,476   441  (66)% 403%
    Adjusted EBITDA 9,222   13,434   7,143  (31)% 29%
    Less: adjusted EBITDA attributable to redeemable noncontrolling interest (3,689)  (5,374)  (2,857) (31)% 29%
    Adjusted EBITDA attributable to DMC Global Inc.$5,533  $8,060  $4,286  (31)% 29%


     Twelve months ended Change
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    Net sales$298,909  $299,527  —%
    Gross profit 92,252   88,334  4%
    Gross profit percentage 30.9%  29.5%  
    COSTS AND EXPENSES:     
    General and administrative expenses 30,488   31,872  (4)%
    Selling and distribution expenses 17,749   16,184  10%
    Amortization of purchased intangible assets 22,608   36,316  (38)%
    Operating income 21,407   3,962  440%
    Adjusted EBITDA$49,612  $46,920  6%
    Less: adjusted EBITDA attributable to redeemable noncontrolling interest$(19,845) $(18,768) 6%
    Adjusted EBITDA attributable to DMC Global Inc.$29,767  $28,152  6%


    DynaEnergetics
     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Net sales$75,306  $72,998  $77,551  3% (3)%
    Gross profit 16,127   19,585   21,764  (18)% (26)%
    Gross profit percentage 21.4%  26.8%  28.1%    
    COSTS AND EXPENSES:         
    General and administrative expenses 2,937   3,095   4,970  (5)% (41)%
    Selling and distribution expenses 5,584   5,604   4,270  —% 31%
    Amortization of purchased intangible assets 14   15   54  (7)% (74)%
    Restructuring expenses, net and asset impairments 3,011   —   —  100% 100%
    Operating income 4,581   10,871   12,470  (58)% (63)%
    Adjusted EBITDA$9,286  $12,568  $14,439  (26)% (36)%


     Twelve months ended Change
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    Net sales$315,026  $264,327  19%
    Gross profit 86,701   75,569  15%
    Gross profit percentage 27.5%  28.6%  
    COSTS AND EXPENSES:     
    General and administrative expenses 15,806   19,627  (19)%
    Selling and distribution expenses 21,472   16,588  29%
    Amortization of purchased intangible assets 59   299  (80)%
    Restructuring expenses, net and asset impairments 3,011   —  100%
    Operating income 46,353   39,055  19%
    Adjusted EBITDA$56,270  $46,932  20%


    NobelClad
     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Net sales$30,772  $27,694  $23,123  11% 33%
    Gross profit 10,416   9,309   5,518  12% 89%
    Gross profit percentage 33.8%  33.6%  23.9%    
    COSTS AND EXPENSES:         
    General and administrative expenses 1,114   1,106   943  1% 18%
    Selling and distribution expenses 2,435   2,531   2,071  (4)% 18%
    Amortization of purchased intangible assets —   —   76  —% (100)%
    Restructuring expenses, net and asset impairments —   440   129  (100)% (100)%
    Operating income 6,867   5,232   2,299  31% 199%
    Adjusted EBITDA$7,608  $6,384  $3,433  19% 122%


     Twelve months ended Change
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    Net sales$105,253  $90,232  17%
    Gross profit 33,529   22,050  52%
    Gross profit percentage 31.9%  24.4%  
    COSTS AND EXPENSES:     
    General and administrative expenses 4,092   4,587  (11)%
    Selling and distribution expenses 9,570   8,981  7%
    Amortization of purchased intangible assets —   311  (100)%
    Restructuring expenses, net and asset impairments 440   182  142%
    Operating income 19,427   7,989  143%
    Adjusted EBITDA$22,760  $11,901  91%


    DMC GLOBAL INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Amounts in Thousands)
           Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential From year-end
     (unaudited) (unaudited)      
    ASSETS         
              
    Cash and cash equivalents$31,040 $28,060 $25,144 11% 23%
    Marketable securities 12,619  7,516  — 68% 100%
    Accounts receivable, net 106,205  105,519  94,415 1% 12%
    Inventories 166,712  185,777  156,590 (10)% 6%
    Prepaid expenses and other 10,236  9,945  10,723 3% (5)%
              
    Total current assets 326,812  336,817  286,872 (3)% 14%
              
    Property, plant and equipment, net 129,267  126,095  129,445 3% —%
    Goodwill 141,725  141,725  141,725 —% —%
    Purchased intangible assets, net 195,260  200,925  217,925 (3)% (10)%
    Other long-term assets 91,431  90,716  103,011 1% (11)%
              
    Total assets$884,495 $896,278 $878,978 (1)% 1%
              
    LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY      
              
    Accounts payable$40,202 $45,589 $46,816 (12)% (14)%
    Contract liabilities 21,621  28,557  32,080 (24)% (33)%
    Accrued income taxes 12,810  11,527  4,256 11% 201%
    Current portion of long-term debt 15,000  15,000  15,000 —% —%
    Other current liabilities 36,828  36,954  29,898 —% 23%
              
    Total current liabilities 126,461  137,627  128,050 (8)% (1)%
              
    Long-term debt 100,851  104,460  117,798 (3)% (14)%
    Deferred tax liabilities 1,956  3,336  1,908 (41)% 3%
    Other long-term liabilities 57,172  58,167  63,053 (2)% (9)%
    Redeemable noncontrolling interest 187,760  187,522  187,522 —% —%
    Stockholders’ equity 410,295  405,166  380,647 1% 8%
              
    Total liabilities, redeemable noncontrolling interest, and stockholders’ equity$884,495 $896,278 $878,978 (1)% 1%


    DMC GLOBAL INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Amounts in Thousands)
    (unaudited)
     Three months ended Twelve months ended
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022
    CASH FLOWS FROM OPERATING ACTIVITIES:         
    Net income$3,569  $11,525  $3,441  $34,759  $13,833 
    Adjustments to reconcile net income to net cash provided by operating activities:         
    Depreciation 3,546   3,460   3,703   13,840   14,281 
    Amortization of purchased intangible assets 5,666   5,667   3,772   22,667   36,926 
    Amortization of deferred debt issuance costs 141   141   141   553   553 
    Amortization of acquisition-related inventory valuation step-up —   —   —   —   430 
    Stock-based compensation 1,712   1,832   3,167   10,270   10,058 
    Deferred income taxes (1,248)  1,558   1,013   970   (599)
    Unrealized gain on marketable securities (148)  —   —   (148)  — 
    Asset impairments 1,956   515   —   2,471   — 
    Other 1,859   (1,607)  1,768   (181)  1,526 
    Change in working capital, net 6,126   1,113   3,596   (19,274)  (32,072)
    Net cash provided by operating activities 23,179   24,204   20,601   65,927   44,936 
    CASH FLOWS FROM INVESTING ACTIVITIES:         
    Consideration adjustments related to acquisition of business —   —   (370)  —   (2,404)
    Investment in marketable securities (4,955)  (5,102)  —   (12,471)  — 
    Acquisition of property, plant and equipment (8,519)  (2,333)  (7,307)  (15,974)  (18,584)
    Proceeds on sale of property, plant and equipment 344   —   62   344   62 
    Net cash used in investing activities (13,130)  (7,435)  (7,615)  (28,101)  (20,926)
    CASH FLOWS FROM FINANCING ACTIVITIES:         
    Repayments on term loan (3,750)  (3,750)  (3,750)  (17,500)  (15,000)
    Payments of debt issuance costs —   —   (1)  —   (180)
    Distributions to redeemable noncontrolling interest holder (3,170)  (4,034)  (2,007)  (13,515)  (12,300)
    Net proceeds from issuance of common stock to employees and directors 102   —   201   314   201 
    Treasury stock activity (153)  (157)  (139)  (2,481)  (1,231)
    Net cash used in financing activities (6,971)  (7,941)  (5,696)  (33,182)  (28,510)
    EFFECTS OF EXCHANGE RATES ON CASH (98)  508   (632)  1,252   (1,166)
              
    NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,980   9,336   6,658   5,896   (5,666)
    CASH AND CASH EQUIVALENTS, beginning of the period 28,060   18,724   18,486   25,144   30,810 
    CASH AND CASH EQUIVALENTS, end of the period$31,040  $28,060  $25,144  $31,040  $25,144 


    DMC GLOBAL INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
    DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
    (Amounts in Thousands)
    (unaudited)
    DMC Global
    EBITDA and Adjusted EBITDA
     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Net income 3,569   11,525   3,441  (69)% 4%
    Interest expense, net 2,311   2,392   2,129  (3)% 9%
    Income tax provision 1,933   4,087   4,438  (53)% (56)%
    Depreciation 3,546   3,460   3,703  2% (4)%
    Amortization of purchased intangible assets 5,666   5,667   3,772  —% 50%
    EBITDA 17,025   27,131   17,483  (37)% (3)%
    Stock-based compensation 1,557   1,832   3,167  (15)% (51)%
    Restructuring expenses, net and asset impairments 3,251   515   129  531% 2,420%
    CEO transition expenses —   805   —  (100)% —%
    Nonrecurring retirement expenses —   —   1,100  —% (100)%
    Other expense (income), net 1,445   (302)  559  578% 158%
    Adjusted EBITDA$23,278  $29,981  $22,438  (22)% 4%
    Less: adjusted EBITDA attributable to redeemable noncontrolling interest (3,689)  (5,374)  (2,857) (31)% 29%
    Adjusted EBITDA attributable to DMC Global Inc. stockholders$19,589  $24,607  $19,581  (20)% —%


     Twelve months ended Change
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    Net income$34,759  $13,833  151%
    Interest expense, net 9,516   6,187  54%
    Income tax provision 15,120   9,376  61%
    Depreciation 13,840   14,281  (3)%
    Amortization of purchased intangible assets 22,667   36,926  (39)%
    EBITDA 95,902   80,603  19%
    Stock-based compensation 10,115   10,058  1%
    CEO transition expenses 4,343   —  100%
    Restructuring expenses, net and asset impairments 3,766   182  1,969%
    Amortization of acquisition-related inventory valuation step-up —   430  (100)%
    Nonrecurring retirement expenses —   1,100  (100)%
    Other expense, net 1,782   594  200%
    Adjusted EBITDA$115,908  $92,967  25%
    Less: adjusted EBITDA attributable to redeemable noncontrolling interest (19,845)  (18,768) 6%
    Adjusted EBITDA attributable to DMC Global Inc. stockholders$96,063  $74,199  29%


    Adjusted Net Income* and Adjusted Diluted Earnings per Share
    *Net income attributable to DMC Global Inc. prior to the adjustment of redeemable noncontrolling interest
     Three months ended December 31, 2023
     Amount Per Share(1)
    Net income attributable to DMC Global Inc. stockholders*$2,764 $0.14
    Restructuring expenses, net and asset impairments, net of tax 2,415  0.12
    As adjusted$5,179 $0.26
    (1) Calculated using diluted weighted average shares outstanding of 19,580,750


     Three months ended September 30, 2023
     Amount Per Share(1)
    Net income attributable to DMC Global Inc. stockholders*$8,883 $0.45
    CEO transition expenses, net of tax 620  0.03
    Restructuring expenses, net and asset impairments, net of tax 358  0.02
    As adjusted$9,861 $0.50
    (1)Calculated using diluted weighted average shares outstanding of 19,596,575


     Three months ended December 31, 2022
     Amount Per Share(1)
    Net income attributable to DMC Global Inc. stockholders*$3,266 $0.17
    Nonrecurring retirement expenses, net of tax 905  0.05
    Restructuring expenses, net and asset impairments, net of tax 88  —
    As adjusted$4,259 $0.22
    (1)Calculated using diluted weighted average shares outstanding of 19,393,245


     Twelve months ended December 31, 2023
     Amount Per Share(1)
    Net income attributable to DMC Global Inc. stockholders*$26,259 $1.35
    CEO transition expenses and accelerated stock-based compensation, net of tax(2) 6,284  0.32
    Restructuring expenses, net and asset impairments, net of tax 2,773  0.14
    As adjusted$35,316 $1.81
    (1)Calculated using diluted weighted average shares outstanding of 19,518,382
    (2)Includes CEO transition expenses of $4,343 and accelerated stock-based compensation of $3,040 related to the vesting of the former CEO’s outstanding equity awards, net of tax.


     Twelve months ended December 31, 2022
     Amount Per Share(1)
    Net income attributable to DMC Global Inc. stockholders*$12,247 $0.63
    Nonrecurring retirement expenses, net of tax(2) 905  0.05
    Amortization of acquisition-related inventory valuation step-up, net of tax 199  0.01
    Restructuring expenses, net and asset impairments, net of tax 124  0.01
    As adjusted$13,475 $0.70
    (1)Calculated using diluted weighted average shares outstanding of 19,369,165
    (2)Includes nonrecurring expenses of $1,100 in accrued cash compensation and $859 in accelerated stock-based compensation, net of tax, related to the retirement of Arcadia’s former president.


    Segment Adjusted EBITDA
    Arcadia
     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Operating income, as reported$2,218  $6,476  $441  (66)% 403%
    Adjustments:         
    Depreciation 1,020   969   762  5% 34%
    Amortization of purchased intangible assets 5,652   5,652   3,642  —% 55%
    Stock-based compensation 332   337   1,198  (1)% (72)%
    Nonrecurring retirement expenses —   —   1,100  —% (100)%
    Adjusted EBITDA 9,222   13,434   7,143  (31)% 29%
    Less: adjusted EBITDA attributable to redeemable noncontrolling interest (3,689)  (5,374)  (2,857) (31)% 29%
    Adjusted EBITDA attributable to DMC Global Inc.$5,533  $8,060  $4,286  (31)% 29%


     Twelve months ended Change
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    Operating income, as reported$21,407  $3,962  440%
    Adjustments:     
    Depreciation 3,695   2,906  27%
    Amortization of purchased intangible assets 22,608   36,316  (38)%
    Stock-based compensation 1,571   2,206  (29)%
    CEO transition expenses 331   —  100%
    Nonrecurring retirement expenses —   1,100  (100)%
    Amortization of acquisition-related inventory valuation step-up —   430  (100)%
    Adjusted EBITDA 49,612   46,920  6%
    Less: adjusted EBITDA attributable to redeemable noncontrolling interest (19,845)  (18,768) 6%
    Adjusted EBITDA attributable to DMC Global Inc.$29,767  $28,152  6%


    DynaEnergetics
     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Operating income, as reported$4,581 $10,871 $12,470 (58)% (63)%
    Adjustments:         
    Depreciation 1,680  1,682  1,915 —% (12)%
    Amortization of purchased intangible assets 14  15  54 (7)% (74)%
    Restructuring expenses, net and asset impairments 3,011  —  — 100% 100%
    Adjusted EBITDA$9,286 $12,568 $14,439 (26)% (36)%


     Twelve months ended Change
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    Operating income, as reported$46,353 $39,055 19%
    Adjustments:     
    Depreciation 6,847  7,578 (10)%
    Amortization of purchased intangible assets 59  299 (80)%
    Restructuring expenses, net and asset impairments 3,011  — 100%
    Adjusted EBITDA$56,270 $46,932 20%


    NobelClad
     Three months ended Change
     Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sequential Year-on-year
    Operating income, as reported$6,867 $5,232 $2,299 31% 199%
    Adjustments:         
    Depreciation 741  712  929 4% (20)%
    Amortization of purchased intangible assets —  —  76 —% (100)%
    Restructuring expenses, net and asset impairments —  440  129 (100)% (100)%
    Adjusted EBITDA$7,608 $6,384 $3,433 19% 122%


     Twelve months ended Change
     Dec 31, 2023 Dec 31, 2022 Year-on-year
    Operating income, as reported$19,427 $7,989 143%
    Adjustments:     
    Depreciation 2,893  3,419 (15)%
    Amortization of purchased intangible assets —  311 (100)%
    Restructuring expenses, net and asset impairments 440  182 142%
    Adjusted EBITDA$22,760 $11,901 91%


     
    CONTACT:
    Geoff High, Vice President of Investor Relations
    303-604-3924


    Primary Logo

分享