HOUSTON, March 04, 2025 (GLOBE NEWSWIRE) -- DynaEnergetics, a business of DMC Global Inc. (Nasdaq: BOOM), today announced it will institute a tariff surcharge ranging from 7% to 9% on all perforating systems sold in North America, effective April 5, 2025. The surcharge is being implemented in response to higher raw material costs resulting from U.S. tariffs announced to date. The surcharge will be applied to DynaEnergetics’ DS Infinity™ 2.0, DS Gravity™ 2.0 and DS NLine™ 2.0 perforating systems, as well as ...

BROOMFIELD, Colo., March 03, 2025 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today announced that Company management will participate in the 37th Annual ROTH Conference, March 16 – 18, 2025, in Dana Point, California. To request a meeting, please contact your ROTH sales representative. For details about the conference or to register, visit: https://www.meetmax.com/sched/event_111373/conference_home.html About the ROTH ConferenceThe Annual ROTH Conference is one of the largest in the nation for small ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy w ...

Adjusted net income, adjusted diluted EPS, adjusted EBITDA, net debt, and free-cash flow are non-GAAP financial measures used by management to measure operating performance. For reconciliations of the most directly comparable GAAP measures to non-GAAP measures, please see the tables at the back of this presentation. For a discussion of why we use non-GAAP financial measures, please see our Form 10-K for the year ended December 31, 2024. © 2025 DMC. All rights reserved. DMC Global Fourth Quarter 2024 Earning ...

Financial Data and Key Metrics Changes - Fourth quarter sales were $152.4 million and adjusted EBITDA attributable to DMC was $10.4 million, both exceeding guidance [6][15] - Adjusted EBITDA margin was 7.8%, up from 4.6% in the third quarter but down from 13.4% in the prior year fourth quarter [16] - Fourth quarter adjusted net income attributable to DMC was $1.8 million, with adjusted EPS of $0.09 [18] Business Line Data and Key Metrics Changes - Arcadia's fourth quarter sales were $60.3 million, up 4% sequentially but down 11% year-over-year, primarily due to soft demand for custom residential windows and doors [7][8] - DynaEnergetics reported fourth quarter sales of $63.7 million, down 9% sequentially due to seasonal slowdown [9] - NobelClad's fourth quarter sales were $28.4 million, marking its second strongest performance in over 10 years, despite a sequential decline in order backlog [11][12] Market Data and Key Metrics Changes - The U.S. pressure pumping business is expected to remain flattish year-over-year, impacting margins for DynaEnergetics [41][43] - Tariff impacts are being closely monitored, with potential effects on demand and pricing environment [20][54] Company Strategy and Development Direction - The company is focusing on stabilizing its businesses and improving cash flow, with a significant emphasis on free cash flow generation [14][23] - A back-to-basics approach is being implemented at Arcadia, focusing on rightsizing the cost structure and refocusing on core commercial operations [8][30] - The company has extended the maturity of the Arcadia put-call arrangement until September 2026, providing more time to improve cash flow and explore refinancing options [13][14] Management Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year but highlighted significant progress in stabilizing the business [22] - The focus will be on self-help initiatives to improve margins, especially in a flat market environment [42][43] - Management expressed confidence in the ability to maintain momentum in NobelClad despite a decrease in backlog [36] Other Important Information - The company ended the fourth quarter with approximately $14 million in cash and cash equivalents, and total debt of approximately $71 million [19] - SG&A expenses were 16.5% of sales, down from 18.5% in the third quarter [18] Q&A Session Summary Question: Supply chain sourcing initiatives and finishing operations improvements - Management clarified that the back-to-basics approach focuses on rightsizing the cost structure rather than supply chain initiatives [28][30] Question: Confidence in NobelClad's momentum despite backlog decline - Management expressed confidence in maintaining momentum, although tariff impacts on U.S. fabricators could affect competitiveness [36][37] Question: Performance in a flattish U.S. pressure pumping business environment - Management indicated that margin improvements will primarily come from self-help initiatives, with expectations of high-single-digit margins [41][43] Question: Mid-cycle EBITDA margin expectations for Dyna and Arcadia - Management suggested mid-teens EBITDA margins for Arcadia and low double-digit margins for Dyna at mid-cycle [46][49] Question: Opportunities for working capital improvement - Management confirmed a focus on improving working capital efficiency across all businesses, particularly in Arcadia [68][70]

Core Insights - DMC Global reported revenue of $152.37 million for Q4 2024, a year-over-year decline of 12.5%, but exceeded the Zacks Consensus Estimate by 8.84% [1] - The company's EPS for the quarter was $0.09, a significant decrease from $0.26 a year ago, and surpassed the consensus EPS estimate of -$0.24 by 137.50% [1] Financial Performance - DMC Global's net sales for its segments were as follows: Arcadia at $60.27 million (down 11.3% year-over-year), NobelClad at $28.43 million (down 7.6% year-over-year), and DynaEnergetics at $63.68 million (slightly above the estimate of $63.30 million) [4] - The stock has returned +15.5% over the past month, contrasting with the Zacks S&P 500 composite's -0.5% change, indicating a relatively strong performance [3] Market Position - DMC Global currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Performance - Consolidated net sales decreased by 11% to $642,851 in 2024 from $719,188 in 2023, primarily due to lower sales volumes in Arcadia Products and decreased pricing in DynaEnergetics' DS perforating systems [259]. - Adjusted EBITDA attributable to DMC Global Inc. decreased by 46% to $52,156 in 2024 from $96,063 in 2023 [262]. - Operating loss for 2024 was $131,258, a significant decline from operating income of $61,177 in 2023, mainly due to goodwill impairment at Arcadia Products [269]. - The company reported a net loss of $151.960 million in 2024, compared to a net income of $34.759 million in 2023 [348]. - Comprehensive loss attributable to DMC Global Inc. stockholders was $97.586 million in 2024, compared to a comprehensive income of $28.591 million in 2023 [348]. - Basic net loss per share attributable to DMC Global Inc. stockholders was $(8.20) in 2024, down from $1.08 in 2023 [345]. Goodwill and Impairments - Goodwill impairment of $141,725 in 2024 was due to the full impairment of Arcadia Products' goodwill, reflecting recent financial performance not meeting expectations [266]. - The company recorded a goodwill impairment charge of $141,725 for the year ended December 31, 2024 [319]. - The company performed a quantitative goodwill impairment test for the Arcadia Products reporting unit due to recent financial performance not meeting expectations [318]. - The company recorded asset impairments of $1,182 in 2024, primarily due to the abandonment of a planned manufacturing expansion at DynaEnergetics [371]. Expenses and Costs - Gross profit margin declined to 23.4% in 2024 from 29.5% in 2023, attributed to margin declines at DynaEnergetics and Arcadia Products, along with lower absorption of fixed manufacturing overhead costs [263]. - General and administrative expenses decreased by $13,940 to $61,401 in 2024, influenced by lower variable compensation costs and the absence of CEO transition expenses from the previous year [264]. - Total restructuring expenses recorded were $2,526 million in 2024, $3,766 million in 2023, and $182 million in 2022, showing a significant increase in restructuring costs in 2024 [401]. - The company’s operating lease expense for 2024 was $13,678, an increase of 6.7% from $12,822 in 2023 [418]. Cash Flow and Liquidity - Cash and marketable securities decreased by $29,370 to $14,289 at December 31, 2024, primarily due to debt repayments [259]. - Net cash provided by operating activities decreased to $46,596 in 2024 from $65,927 in 2023, driven by lower net income [308]. - Net cash used in investing activities was $3,569 in 2024, primarily for property, plant, and equipment acquisitions [309]. - Net cash used in financing activities totaled $59,788 in 2024, including $45,000 in net credit facility repayments [310]. Sales and Market Performance - DynaEnergetics reported net sales of $287,686 in 2024, down 9% from $315,026 in 2023, primarily due to decreased pricing of DS perforating systems [286]. - Arcadia Products is focusing on stabilizing its high-end residential products and may eliminate underperforming offerings to strengthen its core commercial operations [256]. - DynaEnergetics expects first quarter sales to be flat to modestly up compared to the seasonally soft fourth quarter of 2024, with anticipated growth in North America offset by lower international sales [257]. Assets and Liabilities - Total current assets decreased to $289.022 million in 2024 from $326.812 million in 2023, a decline of 11.5% [343]. - Total liabilities decreased to $233.286 million in 2024 from $286.440 million in 2023, a reduction of 18.6% [343]. - Total assets decreased to $671.337 million in 2024 from $884.495 million in 2023, a decline of 24.0% [343]. - Total debt as of December 31, 2024, was $70,818, down from $115,851 in 2023, representing a reduction of 38.8% [421]. Tax and Valuation - Income tax provision for 2024 was $10,970 on a loss before taxes of $140,990, influenced by the full impairment at Arcadia Products' goodwill [272]. - The effective tax rate was adversely affected by income generated in foreign jurisdictions and the establishment of a valuation allowance against U.S. deferred tax assets [272]. - A consolidated valuation allowance of $32,121 was recorded against net deferred tax assets in the U.S. as of December 31, 2024 [323]. Stock and Compensation - The company issued 615,689 shares in connection with stock compensation plans during 2024 [350]. - Total stock-based compensation expense for the year ended December 31, 2024, was $6,902, down from $10,270 in 2023, reflecting a decrease of approximately 32.5% [431]. - The total unrecognized stock-based compensation related to unvested awards as of December 31, 2024, was $6,705, with unvested RSAs at $4,565, RSUs at $813, and PSUs at $1,327 [438]. Future Outlook - The company expects performance obligations under short-term contracts to be satisfied within the next 12 months, indicating a positive outlook for revenue recognition [384]. - DynaEnergetics expects first quarter sales to be flat to modestly up compared to the seasonally soft fourth quarter of 2024, with anticipated growth in North America offset by lower international sales [257].

Financial Performance - Fourth quarter sales were $152.4 million, exceeding the forecasted range of $138 million to $148 million, and down 12% year-over-year[3] - Adjusted EBITDA attributable to DMC was $10.4 million, significantly above the guidance of $5 million to $8 million[3] - DMC Global reported net sales of $152.374 million for the three months ended December 31, 2024, a decrease of 12% year-on-year from $174.036 million[28] - For the twelve months ended December 31, 2024, net sales totaled $642.851 million, an 11% decline compared to $719.188 million in 2023[30] - The company incurred a net loss attributable to DMC Global Inc. stockholders of $94.452 million for the twelve months ended December 31, 2024, compared to a net income of $26.259 million in 2023[30] - DMC Global's operating loss for the three months ended December 31, 2024, was $696,000, a significant improvement from an operating loss of $148.935 million in the previous quarter[28] - The company reported a goodwill impairment of $141.725 million for the twelve months ended December 31, 2024, marking a significant impact on overall financial performance[30] - The company experienced a year-on-year decline in net income, reporting a loss of $151,960,000 for the twelve months ended December 31, 2024, compared to a profit of $34,759,000 in the previous year, representing a 537% decrease[44] Sales and Revenue Trends - Arcadia's sales increased 4% sequentially but decreased 11% compared to Q4 2023, primarily due to weak demand from the luxury home market[4] - DynaEnergetics experienced a 9% sequential decline in sales and a 15% year-over-year decline, attributed to lower pricing in North America and seasonal slowdowns[6] - NobelClad's fourth quarter sales rose 14% sequentially but fell 8% year-over-year, with an order backlog of $49 million[8] - DynaEnergetics reported net sales of $63,675 million for the three months ended December 31, 2024, a 15% decrease year-on-year[34] - NobelClad achieved net sales of $28,427 million for the three months ended December 31, 2024, with a year-on-year decrease of 8%[35] - For the twelve months ended December 31, 2024, net sales totaled $249,763 million, representing a year-on-year decline of 16%[32] EBITDA and Profitability - The adjusted EBITDA margin for the full year 2024 was 9.7%, down from 16.1% in 2023[18] - Adjusted EBITDA for the three months ended December 31, 2024, was $11,876,000, a 69% increase from $7,015,000 in the previous quarter[43] - Adjusted EBITDA attributable to DMC Global Inc. for the three months ended December 31, 2024, was $2,243 million, a decrease of 59% compared to the previous year[32] - Adjusted EBITDA for DynaEnergetics was $5,098,000 in Q4 2024, a significant increase from $414,000 in Q3 2024, but a decrease of 45% from $9,286,000 in Q4 2023[47] - Adjusted EBITDA for NobelClad was $5,848,000 in Q4 2024, up 1% from $5,776,000 in Q3 2024, but down 23% from $7,608,000 in Q4 2023[48] Future Outlook and Strategic Initiatives - First quarter sales are expected to be in the range of $146 million to $154 million, with adjusted EBITDA projected between $8 million and $11 million[11] - The company aims for margin expansion, EBITDA growth, and debt reduction, with a focus on stabilizing operations in Arcadia and DynaEnergetics[10] - The company expects future periods to benefit from internal initiatives and anticipates sales growth from Arcadia's "back-to-basics" approach[26] - DynaEnergetics is expected to complete phase two of its automation initiative in the second quarter of 2025, which is anticipated to enhance operational efficiency[26] - DMC Global aims to expand margins, grow EBITDA, and reduce debt in the upcoming periods[26] Expenses and Impairments - General and administrative expenses decreased by 19% year-on-year to $61.401 million for the twelve months ended December 31, 2024[30] - General and administrative expenses for the three months ended December 31, 2024, increased by 14% sequentially to $8,237 million[32] - The company reported restructuring expenses and asset impairments of $645,000 for the twelve months ended December 31, 2024, indicating ongoing adjustments to improve operational efficiency[45] - Stock-based compensation expenses for the twelve months ended December 31, 2024, were $6,530,000, a decrease of 35% from $10,115,000 in the previous year[44] - The total interest expense for the twelve months ended December 31, 2024, was $8,664,000, a 9% decrease from $9,516,000 in the previous year[44]

Core Insights - DMC Global Inc. reported better-than-expected financial results for Q4 2024, with sales of $152.4 million exceeding the forecast range of $138 million to $148 million, and adjusted EBITDA of $10.4 million surpassing guidance of $5 million to $8 million [1][10][8] Financial Performance - Q4 2024 sales were $152.4 million, flat sequentially and down 12% year-over-year from $174 million in Q4 2023 [10][28] - Adjusted net income attributable to DMC was $1.8 million, or $0.09 per diluted share, compared to a loss of $9.6 million in the previous quarter [10][28] - Total net loss for Q4 2024 was $1.2 million, a significant improvement from a loss of $159.4 million in Q3 2024 [10][28] Segment Performance Arcadia - Arcadia's sales increased 4% sequentially to $60.3 million but decreased 11% year-over-year due to weak demand in the luxury home market [2][12] - Adjusted EBITDA for Arcadia was $2.2 million, down 59% year-over-year [12][36] DynaEnergetics - DynaEnergetics experienced a 9% sequential decline in sales to $63.7 million and a 15% year-over-year decline, primarily due to lower pricing in North America [4][14] - Adjusted EBITDA for DynaEnergetics was $5.1 million, a significant increase from the previous quarter [14][38] NobelClad - NobelClad reported a 14% sequential increase in sales to $28.4 million, but an 8% decline year-over-year [6][40] - The order backlog at the end of Q4 was $49 million, down from $59 million at the end of Q3 [6][40] Future Guidance - For Q1 2025, DMC expects sales in the range of $146 million to $154 million and adjusted EBITDA between $8 million and $11 million [8][24] - The company is focused on margin expansion, EBITDA growth, and debt reduction, with plans to explore refinancing opportunities [7][24]

Core Viewpoint - DMC Global Inc. rejected a non-binding acquisition proposal from Steel Connect, stating that the offer undervalues the company and denies stockholders the opportunity to participate in its emerging value creation [1][2]. Group 1: Proposal Rejection Reasons - The Board determined that the Steel Connect Proposal fails to account for the turnaround potential at Arcadia, especially with the return of former president Jim Schladen, who is focusing on core operations and high-end residential products [2]. - The Proposal does not reflect the cyclical improvements at DynaEnergetics, which has made significant advancements in automation and value engineering, expected to yield benefits in the first half of 2025 [2]. - The Board believes Steel Connect has prioritized its interests over those of DMC's stockholders, proposing terms that would dilute stockholder value and allow Steel Connect to gain control without a proper premium [2]. - DMC's business is stabilizing, with expectations that fourth quarter sales and adjusted EBITDA will exceed prior guidance, and a search for a new CEO is underway [2]. - Steel Connect's initial proposal was for $16.50 per share, which has since dropped to $10.18, indicating a lack of serious engagement [2]. Group 2: Company Overview - DMC Global operates innovative, asset-light manufacturing businesses, including Arcadia, DynaEnergetics, and NobelClad, which have established leadership positions in their respective markets [5].