UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol Name of exchange on which registered Common Stock, $0.05 Par Value BOOM The Nasdaq Global Select Market (Mark One) Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission file number 001 ...

Financial Data and Key Metrics Changes - Consolidated sales for Q1 2020 were $73.6 million, down 15% sequentially and down 27% year-over-year [8] - Adjusted net income for Q1 2020 was $5.3 million or $0.35 per diluted share, compared to $15.2 million or $1.02 per diluted share in Q1 2019 [12] - Consolidated adjusted operating income was $7.5 million, down from $20.5 million in Q1 2019 [11][12] - Adjusted EBITDA was $11.3 million, down from $23.9 million in Q1 2019 [12] Business Line Data and Key Metrics Changes - DynaEnergetics reported Q1 sales of $53.2 million, down 18% sequentially and 33% year-over-year [8] - NobelClad reported Q1 sales of $20.3 million, down 7% sequentially and flat year-over-year [9] - DynaEnergetics' gross margin for Q1 was 37%, down from 39% in Q1 2019 [10] - NobelClad's gross margin for Q1 was 25%, down from 26% in Q1 2019 [10] Market Data and Key Metrics Changes - The oil price dropped 65% during Q1 2020, with U.S. crude futures turning negative for the first time in history [6] - Anticipated well completions in Q2 2020 could be down by more than 60% year-over-year [19] - NobelClad booked $29 million in orders during Q1, marking the second strongest bookings quarter in five years [18] Company Strategy and Development Direction - The company is focused on maintaining liquidity and reducing costs while continuing investments in R&D, product development, and operational excellence [15] - The strategy remains unchanged despite the downturn, with a focus on innovation and value creation [25][56] - The company aims to emerge stronger from the downturn by maintaining a strong balance sheet and focusing on integrated perforating systems [56][70] Management's Comments on Operating Environment and Future Outlook - The management noted that the current downturn is expected to be more severe than previous downturns, with a rapid decline in activity [25][19] - The company is not providing financial guidance for Q2 or the full year due to the volatile environment [19] - Management expressed confidence in the company's long-term success despite current challenges [20] Other Important Information - The company has suspended its quarterly dividend and cut its 2020 capital budget by 50% to approximately $13 million [14][15] - SG&A expenses were reduced by 25% compared to the 2019 quarterly run rate [14] Q&A Session Summary Question: What are the priorities for technology and product development during this downturn? - Management confirmed that investments in technology and product development will continue as these are long-term programs [25] Question: How does the company plan to handle pricing pressure in the current environment? - Management acknowledged increased price competition but emphasized the importance of value over price, focusing on innovative and high-performance systems [32] Question: What is the outlook for free cash flow given the current operating environment? - Management indicated that free cash flow for Q2 is expected to be challenging, potentially slightly negative, but positive cash flow is anticipated in the latter half of the year [40][42] Question: How is the backlog for NobelClad being managed in the current market? - Management stated that the backlog for NobelClad is strong, with good margins, and expects revenues to pick up in the second half of the year [59] Question: How is the company addressing new market opportunities? - Management highlighted growth in new applications and markets, including metals and mining, which are contributing to revenue [63][64]

Financial Performance - Net sales for Q1 2020 were $73,564,000, a decrease of 26.7% compared to $100,135,000 in Q1 2019[16] - Gross profit for Q1 2020 was $24,470,000, down 32.8% from $36,405,000 in Q1 2019[16] - Operating income decreased to $6,347,000 in Q1 2020, a decline of 68.9% from $20,452,000 in Q1 2019[16] - Net income for Q1 2020 was $4,155,000, representing a 72.6% decrease from $15,170,000 in Q1 2019[16] - Basic net income per share for Q1 2020 was $0.28, down from $1.02 in Q1 2019[16] - Adjusted EBITDA decreased to $11,287, a decline of 53% compared to $23,897 in the same quarter of the previous year[121] - Consolidated income before income taxes decreased by 68.9% to $6,224, compared to $20,058 in the same period last year[86] - Gross profit margin fell to 33.3% in Q1 2020 from 36.4% in Q1 2019, primarily due to lower volume and unfavorable project mix[122] Assets and Liabilities - Total current assets as of March 31, 2020, were $138,441,000, a decrease from $144,353,000 as of December 31, 2019[12] - Total assets decreased to $268,940,000 as of March 31, 2020, compared to $277,421,000 as of December 31, 2019[12] - Total liabilities as of March 31, 2020, were $95,251,000, down from $105,280,000 as of December 31, 2019[12] - Total stockholders' equity increased to $173,689,000 as of March 31, 2020, from $172,141,000 as of December 31, 2019[12] - Long-term debt decreased to $10,406 as of March 31, 2020, from $11,147 as of December 31, 2019[157] Cash Flow - Net cash provided by operating activities was $4,920,000, down from $6,997,000 in the prior year, reflecting a decline of 29.7%[24] - Cash and cash equivalents at the end of the period were $16,451,000, down from $20,353,000 at the beginning of the period, representing a decrease of 19.0%[24] - Cash flows used in investing activities amounted to $5,121,000, a decrease from $6,601,000 in the same period of 2019[24] - Net cash used in financing activities was $(3,681,000) compared to $818,000 provided in the same period of the previous year[24] Inventory and Expenses - As of March 31, 2020, total inventories increased to $61,445 from $53,728 as of December 31, 2019, representing a growth of approximately 14.5%[57] - Selling and distribution expenses increased by $1,741 in Q1 2020, primarily due to higher provisions for expected credit losses[136] - Total depreciation for the three months ended March 31, 2020, was $2,352,000, an increase of 30.8% from $1,798,000 in the same period of 2019[24] - Stock-based compensation expenses were $1,118,000 for the three months ended March 31, 2020, slightly down from $1,171,000 in the prior year[24] Dividends and Shareholder Returns - Dividends declared per common share increased to $0.125 in Q1 2020, compared to $0.02 in Q1 2019[16] - The company declared a quarterly cash dividend of $0.125 per share, totaling $1,883, which was payable to shareholders of record as of March 31, 2020[162] - The company suspended its quarterly dividend on April 23, 2020, to preserve capital amid the uncertain economic environment[113] - The company suspended its quarterly dividend indefinitely on April 23, 2020, due to the uncertain economic outlook caused by the COVID-19 pandemic[163] Workforce and Restructuring - DMC reduced its workforce by 264 positions in response to a decline in activity levels due to the COVID-19 pandemic[96] - Total restructuring and impairment charges incurred during the first quarter of 2020 amounted to $880[98] - Restructuring expenses amounted to $1,116 in Q1 2020, reflecting a workforce reduction of 264 positions, or 32% of the total workforce[113] Segment Performance - DynaEnergetics segment net sales decreased by 33.4% to $53,220, compared to $79,836 in the same period last year[84] - NobelClad segment net sales slightly increased by 0.2% to $20,344, compared to $20,299 in the same period last year[84] - Net sales for DynaEnergetics in Q1 2020 were $53,220, a decline of 33% from $79,836 in Q1 2019[132] - DynaEnergetics sales decreased by 33% year-over-year to $53,220, while NobelClad sales decreased by 7% to $20,344[112] Credit Losses and Provisions - The allowance for doubtful accounts increased to $2,320,000 as of March 31, 2020, compared to $967,000 at the end of 2019, indicating a significant rise in expected credit losses[34] - The company recorded provisions of $2,299,000 for expected credit losses during the three months ended March 31, 2020, due to the impact of the COVID-19 pandemic[32] Economic Impact and Future Outlook - The company anticipates a more than 60% year-over-year decline in well completions during Q2 2020 due to COVID-19 impacts[113] - A 25% reduction in selling, general and administrative expenses is planned for Q2 2020 compared to the 2019 quarterly run rate of $16.3 million[113] - The company recorded a tax overpayment refund of $2,700 under the CARES Act during the first quarter of 2020[80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol Name of each exchange on which registered Common Stock, $.05 Par Value BOOM The Nasdaq Global Select Market Form 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number 001-1477 ...

DMC Global, Inc. (NASDAQ:BOOM) Q4 2019 Earnings Conference Call February 20, 2020 5:00 PM ET Company Participants Geoff High – Vice President-Investor Relations Kevin Longe – President and Chief Executive Officer Mike Kuta – Chief Financial Officer Conference Call Participants Stephen Gengaro – Stifel George O’Leary – Tudor Pickering Holt & Company Gerry Sweeney – ROTH Capital Edward Marshall – Sidoti & Company Jim Brilliant – Century Management Tommy Moll – Stephens Operator Good day, ladies and gentlemen, ...

Financial Data and Key Metrics Changes - Consolidated sales for Q3 2019 were $100.1 million, up 14% year-over-year but down 10% sequentially [5] - Adjusted gross margin was 37%, compared to 34% in Q3 2018 and 38% in Q2 2019 [7][8] - Adjusted net income was $13.4 million or $0.90 per diluted share, up from $10 million or $0.68 per diluted share in Q3 2018 [9] - Adjusted EBITDA was $23.2 million, up from $17.2 million in Q3 2018 but down from $29 million in Q2 2019 [10] Business Line Data and Key Metrics Changes - Sales at DynaEnergetics were $77.4 million, up 17% year-over-year but down 13% sequentially [5] - NobelClad sales were $22.7 million, up 5% year-over-year and up 2% sequentially, with an order backlog of $33.2 million [6] - Adjusted operating income for DynaEnergetics was $21.4 million, while NobelClad reported $2.2 million [9] Market Data and Key Metrics Changes - DynaEnergetics is focusing on onboarding new service companies and improving safety and efficiency in well completion [11][12] - NobelClad is seeing increased interest in composite metal applications across various end markets, including alternative energy and aerospace [16] Company Strategy and Development Direction - The company is maintaining its 2019 sales guidance and has increased its full-year adjusted EPS forecast to a range of $3.65 to $3.80 [19] - DynaEnergetics is introducing new models to enhance customer adoption rates and improve performance in hydraulic fracturing [13][14] - NobelClad is bidding on large projects expected to be awarded soon, which could lead to significant sales growth in 2020 [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the energy industry is facing challenges, but both business lines delivered sales growth and margin improvements [4] - The company expects continued financial strength, with a 43% improvement in net debt and a 30% return on invested capital [18] - Management is optimistic about 2020, expecting it to be better than 2019, despite a weaker second half of the year [37] Other Important Information - The company raised its annual dividend to $0.50 per share from $0.08 per share [18] - The company anticipates Q4 consolidated sales in the range of $92 million to $97 million, with expected gross margins of 34% to 35% [22][23] Q&A Session Summary Question: Onboarding new customers in a softer market - Management acknowledged pricing pressure but emphasized the importance of maintaining margins and not chasing volume at the expense of profitability [26][27] Question: EPS guidance implications - EPS guidance of $3.65 to $3.80 is based on year-to-date adjusted EPS of $3.07 [30] Question: Relationship with Halliburton - Management refrained from discussing specifics but acknowledged Halliburton's importance in the industry [31] Question: DynaEnergetics revenue decline - Management noted that the decline in revenue was anticipated and that they expect a smaller drop in Q4 compared to Q3 [36] Question: Capital expenditures for 2020 - Management expects CapEx to be in the $15 million to $20 million range for 2020, significantly lower than previous years [43] Question: NobelClad's growth opportunities - Management highlighted ongoing bids for sizable projects that could significantly impact revenue in the coming year [82] Question: Market share updates - Management reported an increase in market share from the high teens to the low 20s, indicating stable to growing trends [57] Question: Future acquisitions - Management is open to acquisitions but emphasized a cautious approach to leverage and a focus on organic growth opportunities [61][64]

Financial Performance - Net sales for Q3 2019 reached $100,094,000, a 14% increase from $87,883,000 in Q3 2018[18] - Gross profit for Q3 2019 was $36,224,000, up from $29,728,000 in Q3 2018, representing a 22% increase[18] - Operating income for the nine months ended September 30, 2019, was $57,926,000, compared to $24,361,000 for the same period in 2018, reflecting a 137% increase[18] - Net income for Q3 2019 was $6,915,000, a 41% increase from $4,910,000 in Q3 2018[18] - Net income for the nine months ended September 30, 2019, was $39,329,000, compared to $15,202,000 for the same period in 2018, representing a 159% increase[25] - Adjusted EBITDA for Q3 2019 was $23,208 million, a 35% increase from $17,176 million in Q3 2018[140] - Adjusted EBITDA for the nine months ended September 30, 2019, increased to $76,234, up 75% from $43,530 in 2018[175] Assets and Liabilities - Total assets increased to $275,815,000 as of September 30, 2019, compared to $240,418,000 as of December 31, 2018[14] - Total liabilities increased slightly to $108,739,000 as of September 30, 2019, from $106,132,000 at the end of 2018[14] - Total stockholders' equity as of September 30, 2019, was $167,076,000, up from $134,286,000 at the end of 2018, indicating a growth of approximately 24%[21] - Cash and cash equivalents at the end of the period were $12,183,000, compared to $11,098,000 at the end of the previous year, showing an increase of approximately 9.8%[25] - As of September 30, 2019, total outstanding borrowings amounted to $28.785 million, down from $42.128 million as of December 31, 2018, showing a reduction of about 32%[69] - The total debt as of September 30, 2019, was $28.135 million, a decrease of approximately 32% from $41.355 million at the end of 2018[69] Dividends - The company declared dividends of $0.125 per common share in Q3 2019, compared to $0.02 in Q3 2018[18] - The company declared dividends totaling $896,000 for the nine months ended September 30, 2019, slightly higher than $891,000 in the same period of 2018[25] - The company declared an annual cash dividend of $0.50 per share, increased from $0.08 per share, with a quarterly cash dividend of $0.125 per share paid on October 15, 2019[202] Segment Performance - DynaEnergetics segment net sales for the nine months ended September 30, 2019, reached $245.820 million, up from $174.270 million in 2018, indicating a growth of about 41%[85] - NobelClad segment net sales for the nine months ended September 30, 2019, were $65.363 million, compared to $61.841 million in 2018, reflecting an increase of approximately 6%[85] - DynaEnergetics reported operating income of $14,911 million for 2019, up from $9,860 million in 2018, representing a 51.9% increase[87] - NobelClad's operating income for 2019 was $2,219 million, compared to $2,099 million in 2018, reflecting a 5.7% growth[87] - Total segment operating income increased to $17,130 million in 2019 from $11,959 million in 2018, a rise of 43.1%[87] Expenses - The company reported depreciation expenses of $6,178,000 for the nine months ended September 30, 2019, compared to $4,799,000 in the same period of 2018, reflecting a 29% increase[25] - Stock-based compensation for the nine months ended September 30, 2019, was $3,908,000, up from $2,662,000 in the previous year, marking a 47% increase[25] - General and administrative expenses decreased by 8% to $13,360 in the nine months ended September 30, 2019, compared to $14,526 in 2018[167] - Selling and distribution expenses increased by 25% to $13,142 in the nine months ended September 30, 2019, compared to $10,493 in 2018[167] - Restructuring expenses and asset impairments totaled $5,880 in Q3 2019, primarily related to the shutdown of DynaEnergetics' operations in Tyumen, Siberia[124] - Restructuring expenses, net and asset impairments for the nine months ended September 30, 2019, were $5,880, with no such expenses recorded in 2018[175] Cash Flow - Operating cash flow for the nine months ended September 30, 2019, was $35,096,000, significantly higher than $6,545,000 in the prior year[25] - Net cash provided by operating activities was $35,096 million for the nine months ended September 30, 2019, compared to $6,545 million in the same period last year[199] - Net cash flows used in investing activities for the nine months ended September 30, 2019, were $21,119 million, primarily for acquisitions of property and equipment[200] Other Financial Metrics - The income tax provision for Q3 2019 was $5,689 million on pretax income of $12,604 million, reflecting an effective tax rate impacted by non-deductible restructuring expenses[139][154] - The actual debt service coverage ratio for the trailing twelve months ended September 30, 2019, was 9.3 to 1.0, significantly above the minimum required ratio of 1.35 to 1.0[196] - The company accrued $8,000 million in penalties related to anti-dumping duties during the second quarter of 2019[104] Market and Product Developments - DynaEnergetics announced that sales of its DynaStage® systems exceeded one million units, reflecting a transition to Factory-Assembled, Performance-Assured systems[117] - DynaEnergetics introduced new products, including DS Trinity 4.0 and DS NLine, enhancing its product offerings in the perforating systems market[118] - The company experienced increased sales volume due to higher perforating intensity in U.S. well completions and growth in customer demand for advanced perforating systems[160]

DMC Global, Inc. (NASDAQ:BOOM) Q2 2019 Earnings Conference Call July 25, 2019 5:00 PM ET Company Participants Geoff High – Vice President-Investor Relations Kevin Longe – President and Chief Executive Officer Mike Kuta – Chief Financial Officer Conference Call Participants Tommy Moll – Stephens Incorporated Stephen Gengaro – Stifel Gerry Sweeney – ROTH Capital Partners Edward Marshall – Sidoti & Company Jim McIlree – Chardan Capital Jim Brilliant – Century Management Operator Greetings and welcome to the DM ...

Financial Performance - Net sales for Q2 2019 reached $110.954 million, a 37.1% increase from $80.915 million in Q2 2018[17] - Gross profit for the first half of 2019 was $78.478 million, up 58.5% from $49.528 million in the same period of 2018[17] - Net income for Q2 2019 was $17.244 million, compared to $6.372 million in Q2 2018, representing a 170.5% increase[19] - The comprehensive income for the first half of 2019 was $33.533 million, compared to $7.541 million in the same period of 2018[19] - Net income for the six months ended June 30, 2019, was $32,414,000, compared to $10,292,000 for the same period in 2018, representing a significant increase of 215%[26] - DynaEnergetics reported net sales of $88,628 million for the three months ended June 30, 2019, compared to $58,899 million for the same period in 2018, representing a growth of 50.5%[80] - NobelClad's net sales for the three months ended June 30, 2019, were $22,326 million, slightly up from $22,016 million in the same period of 2018[80] - The company's total net sales for the six months ended June 30, 2019, reached $211,089 million, compared to $148,228 million for the same period in 2018, indicating a year-over-year increase of 42.4%[80] Earnings and Profitability - The company reported a basic net income per share of $1.17 for Q2 2019, compared to $0.43 for Q2 2018, marking a significant increase[17] - Adjusted EBITDA for Q2 2019 was $29,026, a 108% increase from $13,922 in Q2 2018[118] - Operating income surged to $24,653 in Q2 2019, a 141% increase compared to $10,229 in Q2 2018[118] - Net income for the six months ended June 30, 2019 was $32,414, or $2.17 per diluted share, compared to $10,292, or $0.69 per diluted share, for the same period in 2018, representing a 215% increase[146] - Adjusted EBITDA for the six months ended June 30, 2019 was $52,923, an increase of 107% compared to $25,564 for the same period in 2018[132] - Gross profit for the six months ended June 30, 2019 was $78,478, up 58% from $49,528 in 2018, with a gross profit percentage of 37.2% compared to 33.4%[132] Assets and Liabilities - Total assets increased to $285.184 million as of June 30, 2019, up from $240.418 million at the end of 2018, reflecting a growth of 18.6%[14] - Current liabilities rose to $70.332 million, an increase of 8.7% from $64.565 million at the end of 2018[14] - Total stockholders' equity increased to $163.501 million as of June 30, 2019, up from $134.286 million at the end of 2018, a growth of 21.8%[14] - The long-term debt balance decreased to $32,744 at June 30, 2019 from $38,230 at December 31, 2018[187] Cash Flow - Cash flows provided by operating activities for the six months ended June 30, 2019, were $23,302,000, compared to a cash outflow of $1,579,000 in 2018[26] - Net cash provided by operating activities for the six months ended June 30, 2019 was $23,302, a significant increase from a cash outflow of $1,579 in the same period last year[188] - Net cash flows used in investing activities for the six months ended June 30, 2019 totaled $15,025, primarily for acquisitions of property, plant, and equipment[189] - Net cash flows used in financing activities for the six months ended June 30, 2019 totaled $6,757, a decrease from $15,748 provided in the same period last year[190] Dividends and Shareholder Returns - The company declared dividends of $0.02 per common share for both Q2 2019 and Q2 2018, maintaining consistency[17] - The company declared dividends totaling $598,000 for the six months ended June 30, 2019, compared to $593,000 in the same period of 2018[26] - A quarterly cash dividend of $0.02 per share was declared on May 7, 2019, totaling $299 payable to shareholders[191] Operational Metrics - Total inventories as of June 30, 2019, amounted to $59,980,000, an increase from $51,074,000 as of December 31, 2018, representing a 17% increase[57] - The company recorded unallocated corporate expenses of $(2,588) million for the three months ended June 30, 2019, compared to $(2,618) million for the same period in 2018[82] - General and administrative expenses were $9,460 in Q2 2019, a slight decrease from $9,743 in Q2 2018[118] - Selling and distribution expenses increased by 25% to $8,736 million in 2019, compared to $6,971 million in 2018[156] Debt and Financing - The company has a $75,000 million credit facility, which includes a $50,000 million revolving loan and a $25,000 million Capex Facility for financing expansion projects[178] - The maximum permitted leverage ratio for the June 30, 2019 reporting period was 3.00 to 1.0, while the actual leverage ratio was 0.4 to 1.0[183] - The actual debt service coverage ratio for the trailing twelve months ended June 30, 2019 was 12.5 to 1.0, exceeding the minimum required ratio of 1.35 to 1.0[185] - The company maintained compliance with all financial covenants and other provisions of its debt agreements as of June 30, 2019[186] Market and Revenue Insights - DynaEnergetics' revenue from the United States was $75,323 million for the three months ended June 30, 2019, compared to $44,164 million in the same period of 2018, reflecting a 70.7% increase[83] - NobelClad's revenue from the United States for the three months ended June 30, 2019, was $12,304 million, compared to $6,775 million in the same period of 2018, showing an 81.5% increase[85]

DMC Global Inc. (NASDAQ:BOOM) Q1 2019 Results Earnings Conference Call April 25, 2019 5:00 PM ET Company Participants Geoff High - VP of Investor Relations Kevin Longe - President and CEO Mike Kuta - CFO Conference Call Participants Tommy Moll - Stephens Stephen Gengaro - Stifel Gerry Sweeney - Roth Capital Partners Edward Marshall - Sidoti & Company Jim McIlree - Chardan Capital Ian Macpherson - Simmons Will Hamilton - Manatuck Hill Partners Operator Greetings, and welcome to DMC Global First Quarter 2019 ...