• DMC Global Reports Second Quarter Financial Results

    ソース: Nasdaq GlobeNewswire / 22 7 2021 15:05:01   America/Chicago

    • Second quarter sales were $65.4 million, up 18% sequentially and 51% from Q2 2020
    • Gross margin improved to 26% versus 23% in Q1 2021 and 15% in Q2 2020
    • Net income was $1.7 million, or $0.10 per diluted share
    • Adjusted EBITDA* increased to $7.5 million versus $4.0 million in Q1 2021 and negative $1.8 million in Q2 2020
    • Cash and marketable securities at June 30, 2021, were $181.3 million versus $53.9 million at December 31, 2020
    • NobelClad awarded $8.8 million order from chemical industry; introduces clad pipe offering

    BROOMFIELD, Colo., July 22, 2021 (GLOBE NEWSWIRE) --  DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its second quarter ended June 30, 2021.

    Second quarter sales were $65.4 million, up 18% sequentially versus the first quarter, and up 51% versus the second quarter of 2020. The sales growth versus both prior periods is attributable to the accelerating recovery of the energy industry, which drove improved demand for well perforating systems at DynaEnergetics, DMC’s energy products business. The results also reflect increased order shipments at NobelClad, DMC’s composite metals business.

    Second quarter gross margin was 26% up from 23% in the 2021 first quarter and 15% in last year's second quarter. The improvement reflects the impact of higher sales volume on fixed expenses at DynaEnergetics, and the receipt of the Employee Retention Credit under the CARES Act.

    Selling, general and administrative expense (SG&A) was $14.0 million, up from $13.2 million in the first quarter and $12.2 million in the year-ago second quarter. SG&A in this year’s second quarter included $1.2 million in litigation expense related to several patent infringement cases in which DynaEnergetics is the plaintiff. Litigation expense was $1.0 million in this year’s first quarter and $400,000 in the second quarter a year ago.   

    Second quarter operating income was $2.7 million versus an operating loss of $8.0 million in last year's second quarter. Net income was $1.7 million, or $0.10 per diluted share, versus net loss of $5.6 million, or $0.38 per diluted share, in last year’s second quarter.

    Second quarter adjusted EBITDA was $7.5 million versus $4.0 million in the 2021 first quarter, and negative $1.8 million in the 2020 second quarter.

    DMC ended the second quarter with cash and marketable securities of $181.3 million, up from $66.8 million at March 31, 2021. During the quarter, the Company raised net proceeds of $123.5 million through a registered public equity offering.

    DynaEnergetics
    Second quarter sales at DynaEnergetics were $42.3 million, up 11% sequentially and 79% from the 2020 second quarter. Gross margin was 25%, up from 22% in the first quarter of 2021 and 8% in last year’s second quarter. Adjusted EBITDA was $5.3 million versus negative $3.3 million in last year’s second quarter.

    NobelClad
    Second quarter sales at NobelClad were $23.2 million, up 33% sequentially and 18% versus the 2020 second quarter. Gross margin was 28%, up from 26% in the 2021 first quarter and 25% in last year's second quarter. The gross margin improvement reflects a more favorable project mix. Adjusted EBITDA was $4.3 million, up from $3.1 million in last year’s second quarter.

    NobelClad’s trailing 12-month book-to-bill ratio at the end of the second quarter was 1.01, and its rolling 12-month bookings were $84 million. Order backlog increased to $45.1 million from $43.2 million at the end of the first quarter.

    Six-month results
    Consolidated sales for the six-month period were $121.1 million, up 4% versus the same period a year ago. Gross margin was 25% versus 27% in the 2020 six-month period. Operating income was $2.0 million versus an operating loss of $1.6 million in last year’s six-month period. Net income for the period was $2.2 million, or $0.13 per diluted share, versus a net loss of $1.5 million, or $0.10 per diluted share, in the same period a year ago.

    Six-month adjusted operating income was $2.1 million and adjusted net income was $2.3 million, or $0.14 per diluted share. Adjusted EBITDA was $11.6 million versus $9.5 million in last year’s six-month period.

    DynaEnergetics
    Six-month sales at DynaEnergetics were $80.4 million, up 5% from $76.9 million, in last year’s six-month period. Operating income was $4.7 million versus $1.7 million in the comparable year-ago period. Adjusted EBITDA was $8.8 million versus $8.0 million in last year’s six-month period.

    NobelClad
    NobelClad reported six-month sales of $40.7 million, up 2% from $39.9 million at the six-month mark last year. Operating income was $5.0 million versus $3.5 million in the comparable year-ago period, while adjusted EBITDA was $7.0 million versus $5.4 million in last year’s six-month period.

    Management Commentary
    Kevin Longe, president and CEO, said, “Improving economic conditions led to increased activity in several of our end markets during the second quarter. Rising energy prices drove improved demand for DynaEnergetics’ DS well perforating systems, and NobelClad secured a large international order from the chemical industry.”    

    “DynaEnergetics benefitted from a modest improvement in pricing during the quarter,” Longe added. “However, despite increased well completion activity in North America, irrational pricing for products and services persists, and is delaying the margin recovery of our industry.

    “The leading operators and service companies in North America’s unconventional oil and gas industry are transitioning to safer, more efficient and more reliable factory-assembled perforating systems built by a single source provider. However, during the recent market instability, a number of machine shops have taken advantage of extreme price sensitivity by commercializing undifferentiated, less reliable carrier assemblies. These businesses are being supported and supplied by some of our industry’s large energetics manufacturers, which have not yet fully transitioned to their own integrated systems.”

    Longe added, “We believe many of the pre-wired carriers in the market incorporate features that violate DynaEnergetics patents, and we are taking aggressive legal action against the companies that make these products. DynaEnergetics has made significant investments in technologies and products that have improved the safety, efficiency and performance of its customers’ well completions, and have enhanced the effectiveness and profitability of the industry as a whole. Our patent strategy is designed to protect these investments and provide transparency so others can innovate without violating our intellectual property. As we previously have stated, if intellectual property is not protected, the incentive to innovate is lost and the sustainability of our industry is at risk.”

    NobelClad was awarded an $8.8 million order during the second quarter for titanium clad plates that will be used to fabricate specialized equipment for a large purified terephthalic acid (PTA) plant. The plant was engineered in Europe, will be built in Southwest Asia and will include titanium-clad equipment fabricated in China. “NobelClad’s global presence and manufacturing skill set positioned it to win this complex project,” Longe said.   “The clad plates, which will be used to fabricate pressure vessels and heat exchangers, will be manufactured at NobelClad’s production facility in Mt. Braddock, Penn., and are scheduled to ship in this year’s third and fourth quarters.

    “This large order will help offset a pandemic-related downturn in NobelClad’s base repair and maintenance business, which tends to lag the cycles of the broader economy. We expect repair and maintenance work in NobelClad’s primary downstream energy market will accelerate in the coming year. In addition, NobelClad continues to pursue several large orders in a broad range of industrial end markets.”  

    Earlier this week, NobelClad introduced DetaPipe™, a high-performance clad-pipe solution for the chemical and metal-processing markets. “This product offering reflects several years of work by NobelClad’s product development team and is expected to provide customers with a better-performing, cost-effective alternative to solid zirconium or titanium pipe in their high-pressure, high temperature processing environments.”

    Longe concluded, “I am encouraged by the improving conditions in the end markets of DynaEnergetics and NobelClad, and believe our businesses are well positioned with the right people, products and technologies to address the growing demand. Our stock offering during the second quarter further strengthened our financial position and enhanced our ability to pursue strategic growth opportunities.”

    Guidance
    Michael Kuta, CFO, said third quarter 2021 sales are expected to be in a range of $70 million to $73 million versus the $65.4 million reported in the 2021 second quarter. DynaEnergetics expects demand from North America’s onshore unconventional oil and gas market will continue to improve in the third quarter, although at a more moderate pace than in the first half of the year. The growth is expected to be partially offset by lower sales in the Middle East. DynaEnergetics is expected to report third quarter sales in a range of $46 million to $48 million versus the $42.3 million reported in 2021 second quarter. NobelClad’s sales are expected in a range of $24 million to $25 million versus the $23.2 million reported in the 2021 second quarter.

    Consolidated gross margin is expected in a range of 24% to 26% versus 26% in the 2021 second quarter. The potential decline relates to the expected increase in North American sales versus higher margin international sales at DynaEnergetics, as well as inflationary pressures that will likely offset pricing increases. Gross margin at NobelClad also is expected to decline due to a less favorable project mix.

    Third quarter selling, general and administrative (SG&A) expense is expected to be in a range of $14.5 million to $15 million versus the $14.0 million reported in the 2021 second quarter. The increase reflects expected headcount additions for commercial and digital positions, higher variable compensation expense, and a pickup in travel expenses.

    Amortization expense is expected to be approximately $225,000, and interest expense is expected to be approximately $80,000. DMC’s full year tax-rate is expected in a range of 31% to 33%.

    Adjusted EBITDA is expected in a range of $6.5 million to $8.5 million versus the $7.5 million in the second quarter of 2021.

    Third quarter capital expenditures are expected in a range of $4.0 million to $6.0 million. For modeling purposes, third quarter weighted average shares outstanding will be approximately 18.7 million.

    Kuta said management is not providing full-year financial guidance, however, pricing at DynaEnergetics is expected to improve during the second half of the year, which should offset the impact of inflation on materials, labor, and benefits from employee retention credits under the CARES Act that are expected to roll off in the fourth quarter of 2021.

    Conference call information
    Management 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/2204/42038, or by dialing 888-506-0062 (973-528-0011 for international callers) and entering the code 860474.  A telephonic replay will be available through July 29, 2021, by calling 877-481-4010 (919-882-2331 for international callers) and entering the Conference ID #42038. 

    *Use of Non-GAAP Financial Measures
    Adjusted 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 DMC
    DMC 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
    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 third quarter guidance on sales, gross margin, SG&A, amortization expense, interest expense, adjusted EBITDA, capital expenditures, and tax rate; as well as our belief that repair and maintenance work in NobelClad’s primary downstream energy market will accelerate in the coming year; our expectation that NobelClad’s DetaPipe product will provide customers with a better-performing, cost-effective alternative to solid zirconium or titanium pipe; our expectation that pricing at DynaEnergetics will improve during the second half of the year; and our belief that our businesses are well positioned to address growing demand. Statements other than those of historical fact included in this press release are forward-looking statements. Forward-looking statements are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs, ability to achieve goals and numerous other factors. 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 materials; 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, 2020. 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
     Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Sequential Year-on-year
    NET SALES$65,438   $55,658   $43,203   18% 51%
    COST OF PRODUCTS SOLD48,467   42,745   36,599   13% 32%
    Gross profit16,971   12,913   6,604   31% 157%
    Gross profit percentage26%   23%   15%      
    COSTS AND EXPENSES:         
    General and administrative expenses8,471   7,929   6,707   7% 26%
    Selling and distribution expenses5,544   5,243   5,488   6% 1%
    Amortization of purchased intangible assets288   324   353   -11% -18%
    Restructuring expenses and asset impairments—   127   2,046   -100% -100%
    Total costs and expenses14,303   13,623   14,594   5% -2%
    OPERATING INCOME (LOSS)2,668   (710)  (7,990)  476% 133%
    OTHER INCOME (EXPENSE) :         
    Other income (expense), net108   394   (85)  -73% 227%
    Interest expense, net(81)  (135)  (156)  40% 48%
    INCOME (LOSS) BEFORE INCOME TAXES2,695   (451)  (8,231)  698% 133%
    INCOME TAX PROVISION (BENEFIT)971   (883)  (2,583)  210% 138%
    NET INCOME (LOSS)1,724   432   (5,648)  299% 131%
    NET INCOME (LOSS) PER SHARE         
    Basic$0.10   $0.03   $(0.38)  233% 126%
    Diluted$0.10   $0.03   $(0.38)  233% 126%
    WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:         
    Basic17,554,809   15,543,103   14,832,242   13% 18%
    Diluted17,568,444   15,463,923   14,832,242   14% 18%
    DIVIDENDS DECLARED PER COMMON SHARE$—   $—   $—      


     Six months ended Change
     Jun 30, 2021 Jun 30, 2020 Year-on-year
    NET SALES$121,096   $116,766   4%
    COST OF PRODUCTS SOLD91,212   85,696   6%
    Gross profit29,884   31,070   -4%
    Gross profit percentage25%   27%    
    COSTS AND EXPENSES:     
    General and administrative expenses16,400   14,831   11%
    Selling and distribution expenses10,787   14,015   -23%
    Amortization of purchased intangible assets612   707   -13%
    Restructuring expenses and asset impairments127   3,162   -96%
    Total costs and expenses27,926   32,715   -15%
    OPERATING INCOME (LOSS)1,958   (1,645)  219%
    OTHER INCOME (EXPENSE):     
    Other income, net502   32   1,469%
    Interest expense, net(216)  (394)  45%
    INCOME (LOSS) BEFORE INCOME TAXES2,244   (2,007)  212%
    INCOME TAX PROVISION (BENEFIT)88   (514)  117%
    NET INCOME (LOSS)2,156   (1,493)  244%
    NET INCOME (LOSS) PER SHARE     
    Basic$0.13   $(0.10)  230%
    Diluted$0.13   $(0.10)  230%
    WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:     
    Basic16,495,685   14,745,661   12%
    Diluted16,507,500   14,745,661   12%
    DIVIDENDS DECLARED PER COMMON SHARE$—   $0.125    


    DMC GLOBAL INC.
    SEGMENT STATEMENTS OF OPERATIONS
    (Amounts in Thousands)
    (unaudited)

    DynaEnergetics

     Three months ended Change
     Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Sequential Year-on-year
    Net sales$42,268  $38,172  $23,643   11% 79%
    Gross profit10,676  8,434  1,967   27% 443%
    Gross profit percentage25% 22% 8%      
    COSTS AND EXPENSES:         
    General and administrative expenses4,012  3,574  3,157   12% 27%
    Selling and distribution expenses3,300  3,140  3,595   5% -8%
    Amortization of purchased intangible assets163  199  259   -18% -37%
    Restructuring expenses and asset impairments—  —  1,851   n/a  -100%
    Operating income (loss)3,201  1,521  (6,895)  110% 146%
    Adjusted EBITDA$5,284  $3,521  $(3,272)  50% 261%


     Six months ended Change
     Jun 30, 2021 Jun 30, 2020 Year-on-year
    Net sales$80,440  $76,863  5%
    Gross profit19,111  21,442  -11%
    Gross profit percentage24% 28%  
    COSTS AND EXPENSES:     
    General and administrative expenses7,587  6,988  9%
    Selling and distribution expenses6,442  9,435  -32%
    Amortization of purchased intangible assets362  519  -30%
    Restructuring expenses and asset impairments—  2,789  -100%
    Operating income4,720  1,711  176%
    Adjusted EBITDA$8,803  $8,044  9%

    NobelClad

     Three months ended Change
     Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Sequential Year-on-year
    Net sales$23,170  $17,486  $19,560  33% 18%
    Gross profit6,460  4,617  4,802  40% 35%
    Gross profit percentage28% 26% 25%    
    COSTS AND EXPENSES:         
    General and administrative expenses889  813  797  9% 12%
    Selling and distribution expenses2,075  1,948  1,731  7% 20%
    Amortization of purchased intangible assets125  125  94  —% 33%
    Restructuring expenses and asset impairments—  127  195  -100% -100%
    Operating income3,371  1,604  1,985  110% 70%
    Adjusted EBITDA$4,316  $2,670  $3,061  62% 41%


     Six months ended Change
     Jun 30, 2021 Jun 30, 2020 Year-on-year
    Net sales$40,656  $39,903  2%
    Gross profit11,077  9,954  11%
    Gross profit percentage27% 25%  
    COSTS AND EXPENSES:     
    General and administrative expenses1,702  1,771  -4%
    Selling and distribution expenses4,022  4,282  -6%
    Amortization of purchased intangible assets250  188  33%
    Restructuring expenses and asset impairments127  254  -50%
    Operating income4,976  3,459  44%
    Adjusted EBITDA$6,987  $5,428  29%


    DMC GLOBAL INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Amounts in Thousands)

           Change
     Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sequential From year-end
     (unaudited) (unaudited)      
    ASSETS         
              
    Cash and cash equivalents$36,363  $45,837  $28,187  -21% 29%
    Marketable securities144,931  20,943  25,736  592% 463%
    Accounts receivable, net43,027  35,609  31,366  21% 37%
    Inventories62,478  57,944  52,573  8% 19%
    Other current assets10,577  7,855  5,448  35% 94%
              
    Total current assets297,376  168,188  143,310  77% 108%
              
    Property, plant and equipment, net105,589  106,800  109,411  -1% -3%
    Purchased intangible assets, net2,391  2,927  3,665  -18% -35%
    Other long-term assets28,990  26,902  23,259  8% 25%
              
    Total assets$434,346  $304,817  $279,645  42% 55%
              
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
              
    Accounts payable$25,122  $27,336  $17,574  -8% 43%
    Contract liabilities10,188  7,205  4,928  41% 107%
    Accrued income taxes8,696  7,975  7,279  9% 19%
    Current portion of long-term debt—  —  3,125  n/a  -100%
    Other current liabilities15,204  15,857  14,202  -4% 7%
              
    Total current liabilities59,210  58,373  47,108  1% 26%
              
    Long-term debt—  —  8,139  n/a  -100%
    Deferred tax liabilities1,153  1,211  2,254  -5% -49%
    Other long-term liabilities27,946  26,803  25,230  4% 11%
    Stockholders’ equity346,037  218,430  196,914  58% 76%
              
    Total liabilities and stockholders’ equity$434,346  $304,817  $279,645  42% 55%


    DMC GLOBAL INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Amounts in Thousands)
    (unaudited)

     Three months ended
     Jun 30, 2021 Mar 31, 2021 Jun 30, 2020
    CASH FLOWS FROM OPERATING ACTIVITIES:     
    Net income (loss)$1,724   $432   $(5,648) 
    Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:     
    Depreciation2,832   2,698   2,364  
    Amortization of purchased intangible assets288   324   353  
    Amortization of deferred debt issuance costs56   56   59  
    Stock-based compensation1,727   1,608   1,441  
    Deferred income taxes(282)  (2,334)  (1,200) 
    Loss (gain) on disposal of property, plant and equipment5   (288)  (14) 
    Restructuring expenses and asset impairments—   127   2,046  
    Change in working capital, net(14,547)  (447)  6,807  
    Net cash (used in) provided by operating activities(8,197)  2,176   6,208  
    CASH FLOWS FROM INVESTING ACTIVITIES:     
    Investment in marketable securities(123,984)  —   —  
    Proceeds from maturities of marketable securities—   4,799   —  
    Acquisition of property, plant and equipment(1,887)  (1,365)  (2,355) 
    Proceeds on sale of property, plant and equipment723   281   14  
    Net cash (used in) provided by investing activities(125,148)  3,715   (2,341) 
    CASH FLOWS FROM FINANCING ACTIVITIES:     
    Repayments on capital expenditure facility—   (11,750)  (781) 
    Payment of dividends—   —   (1,883) 
    Payment of deferred debt issuance costs—   —   (84) 
    Net proceeds from issuance of common stock through equity offering123,461   —   —  
    Net proceeds from issuance of common stock through at-the-market offering program—   25,262   —  
    Net proceeds from issuance of common stock253   —   263  
    Treasury stock purchases(16)  (2,435)  (34) 
    Net cash provided by (used in) financing activities123,698   11,077   (2,519) 
    EFFECTS OF EXCHANGE RATES ON CASH173   682   (551) 
          
    NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS(9,474)  17,650   797  
    CASH AND CASH EQUIVALENTS, beginning of the period45,837   28,187   16,451  
    CASH AND CASH EQUIVALENTS, end of the period$36,363   $45,837   $17,248  


     Six months ended
     Jun 30, 2021 Jun 30, 2020
    CASH FLOWS FROM OPERATING ACTIVITIES:   
    Net income (loss)$2,156   $(1,493) 
    Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:   
    Depreciation5,530   4,716  
    Amortization of purchased intangible assets612   707  
    Amortization of deferred debt issuance costs112   99  
    Stock-based compensation3,335   2,559  
    Deferred income taxes(2,616)  (1,360) 
    Gain on disposal of property, plant and equipment(283)  (1) 
    Restructuring expenses and asset impairments127   3,162  
    Change in working capital, net(14,994)  2,739  
    Net cash (used in) provided by operating activities(6,021)  11,128  
    CASH FLOWS FROM INVESTING ACTIVITIES:   
    Investment in marketable securities(123,984)  —  
    Proceeds from maturities of marketable securities4,799   —  
    Acquisition of property, plant and equipment(3,252)  (7,476) 
    Proceeds on sale of property, plant and equipment1,004   14  
    Net cash used in investing activities(121,433)  (7,462) 
    CASH FLOWS FROM FINANCING ACTIVITIES:   
    Repayments on capital expenditure facility(11,750)  (1,562) 
    Payment of dividends—   (3,749) 
    Payment of deferred debt issuance costs—   (84) 
    Net proceeds from issuance of common stock through equity offering123,461   —  
    Net proceeds from issuance of common stock through at-the-market offering program25,262   —  
    Net proceeds from issuance of common stock253   263  
    Treasury stock purchases(2,451)  (1,068) 
    Net cash provided by (used in) financing activities134,775   (6,200) 
    EFFECTS OF EXCHANGE RATES ON CASH855   (571) 
        
    NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS8,176   (3,105) 
    CASH AND CASH EQUIVALENTS, beginning of the period28,187   20,353  
    CASH AND CASH EQUIVALENTS, end of the period$36,363   $17,248  


    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
     Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Sequential Year-on-year
    Net income (loss)$1,724   $432   $(5,648)  299% 131%
    Interest expense, net81   135   156   -40% -48%
    Income tax provision (benefit)971   (883)  (2,583)  210% 138%
    Depreciation2,832   2,698   2,364   5% 20%
    Amortization of purchased intangible assets288   324   353   -11% -18%
              
    EBITDA5,896   2,706   (5,358)  118% 210%
    Restructuring expenses and asset impairments—   127   2,046   -100% -100%
    Stock-based compensation1,727   1,608   1,441   7% 20%
    Other (income) expense, net(108)  (394)  85   73% -227%
    Adjusted EBITDA$7,515   $4,047   $(1,786)  86% 521%


     Six months ended Change
     Jun 30, 2021 Jun 30, 2020 Year-on-year
    Net income (loss)$2,156   $(1,493)  244%
    Interest expense, net216   394   -45%
    Income tax provision (benefit)88   (514)  117%
    Depreciation5,530   4,716   17%
    Amortization of purchased intangible assets612   707   -13%
          
    EBITDA8,602   3,810   126%
    Restructuring expenses and asset impairments127   3,162   -96%
    Stock-based compensation3,335   2,559   30%
    Other income, net(502)  (32)  -1,469%
    Adjusted EBITDA$11,562   $9,499   22%

    Adjusted operating income (loss)

     Three months ended Change
     Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Sequential Year-on-year
    Operating income (loss), as reported$2,668  $(710)  $(7,990)  476% 133%
    Restructuring expenses and asset impairments:         
    DynaEnergetics—  —   1,851   n/a  -100%
    NobelClad—  127   195   -100% -100%
    Adjusted operating income (loss)$2,668  $(583)  $(5,944)  558% 145%


     Six months ended Change
     Jun 30, 2021 Jun 30, 2020 Year-on-year
    Operating income (loss), as reported$1,958  $(1,645)  219%
    Restructuring expenses and asset impairments:     
    DynaEnergetics—  2,789   -100%
    NobelClad127  254   -50%
    Corporate—  119   -100%
    Adjusted operating income$2,085  $1,517   37%

    Adjusted Net Income and Adjusted Diluted Earnings per Share

     Three months ended March 31, 2021
     Pretax Tax Benefit Net Diluted weighted
    average shares
    outstanding    		 Diluted EPS
    Net income, as reported$(451)  $(883)  $432  15,463,923  $0.03 
    Restructuring expenses and asset impairments:         
    NobelClad127   —   127  15,463,923  0.01 
    Adjusted net income$(324)  $(883)  $559  15,463,923  $0.04 


     Three months ended June 30, 2020
     Pretax Tax Benefit Net Diluted weighted
    average shares
    outstanding    		 Diluted EPS
    Net loss, as reported$(8,231)  $(2,583)  $(5,648)  14,832,242  $(0.38) 
    Restructuring expenses and asset impairments:         
    DynaEnergetics1,851   728   1,123   14,832,242  0.08  
    NobelClad195   65   130   14,832,242  0.01  
    Adjusted net loss$(6,185)  $(1,790)  $(4,395)  14,832,242  $(0.29) 


     Six months ended June 30, 2021
     Pretax Tax Provision Net Diluted weighted
    average shares
    outstanding    		 Diluted EPS
    Net income, as reported$2,244  $88  $2,156  16,507,500  0.13 
    Restructuring expenses and asset impairments:         
    NobelClad127  —  127  16,507,500  0.01 
    Adjusted net income$2,371  $88  $2,283  16,507,500  $0.14 


     Six months ended June 30, 2020
     Pretax Tax (Benefit)
    Provision    		 Net Diluted weighted
    average shares
    outstanding    		 Diluted EPS
    Net loss, as reported$(2,007)  $(514)  $(1,493)  14,745,661  $(0.10) 
    Restructuring expenses and asset impairments:         
    DynaEnergetics2,789   882   1,907   14,745,661  0.13  
    NobelClad254   78   176   14,745,661  0.01  
    Corporate119   25   94   14,745,661  0.01  
    Adjusted net income$1,155   $471   $684   14,745,661  $0.05  

    Return on Invested Capital

       Three months ended
       Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021
    Operating (loss) income $(7,990)  $1,465  $(818)  $(710)  $2,668 
    Income tax (benefit) provision (1) (2,509)  177  (54)  (1,390)  960 
    Net operating (loss) profit after taxes (NOPAT) (5,481)  1,288  (764)  680   1,708 
    Trailing Twelve Months NOPAT     (717)  (4,277)  2,912 
                
     Balances as of
     Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021
    Current portion of lease liabilities1,618  1,846   1,804  1,741   1,505   1,477 
    Long-term portion of lease liabilities9,454  10,430   10,155  10,066   10,137   9,944 
    Current portion of long-term debt3,125  3,125   3,125  3,125   —   — 
    Long-term debt10,406  9,595   8,867  8,139   —   — 
    Total stockholders' equity173,689  170,283   169,951  196,914   218,430   346,037 
    Total invested capital198,292  195,279   193,902  219,985   230,072   357,458 
    Average invested capital      208,946   214,182   276,369 
                
    Trailing Twelve Months Return on Invested Capital (ROIC)   —%   (2)% 1%
                  
    (1) Tax calculation for NOPAT:             


     
     Three months ended Twelve months
    ended    		 Three months ended
     Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021
    (Loss) income before income taxes(8,231)  1,147  (1,100)  (1,960)  (451)  2,695 
    Income tax (benefit) provision(2,583)  139  (173)  (548)  (883)  971 
    Effective tax rate31.4%  12.1% 15.7%   28.0%   195.8%   36.0%

    DynaEnergetics

     Three months ended Change
     Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Sequential Year-on-year
    Operating income (loss), as reported$3,201  $1,521  $(6,895)  110% 146%
    Adjustments:         
    Restructuring expenses and asset impairments—  —  1,851   n/a  -100%
              
    Adjusted operating income (loss)3,201  1,521  (5,044)  110% 163%
    Depreciation1,920  1,801  1,513   7% 27%
    Amortization of purchased intangibles163  199  259   -18% -37%
    Adjusted EBITDA$5,284  $3,521  $(3,272)  50% 261%


     Six months ended  
     Jun 30, 2021 Jun 30, 2020 Year-on-year
    Operating income, as reported$4,720  $1,711  176%
    Adjustments:     
    Restructuring expenses and asset impairments—  2,789  -100%
          
    Adjusted operating income4,720  4,500  5%
    Depreciation3,721  3,025  23%
    Amortization of purchased intangibles362  519  -30%
    Adjusted EBITDA$8,803  $8,044  9%

    NobelClad

     Three months ended Change
     Jun 30, 2021 Mar 31, 2021 Jun 30, 2020 Sequential Year-on-year
    Operating income, as reported$3,371  $1,604  $1,985  110% 70%
    Adjustments:         
    Restructuring expenses and asset impairments—  127  195  -100% -100%
              
    Adjusted operating income3,371  1,731  2,180     
    Depreciation820  814  787  1% 4%
    Amortization of purchased intangibles125  125  94  —% 33%
    Adjusted EBITDA$4,316  $2,670  $3,061  62% 41%


     Six months ended  
     Jun 30, 2021 Jun 30, 2020 Year-on-year
    Operating income, as reported$4,976  $3,459  44%
    Adjustments:     
    Restructuring expenses and asset impairments127  254  -50%
          
    Adjusted operating income5,103  3,713  37%
    Depreciation1,634  1,527  7%
    Amortization of purchased intangibles250  188  33%
    Adjusted EBITDA$6,987  $5,428  29%

     

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


    Primary Logo

シェアする