Group 1 - Galloper Gold Corp. has granted incentive stock options to purchase a total of 400,000 common shares at an exercise price of $0.05 per share for a period of 12 months to certain directors [1] - The company is focused on mineral exploration in the Central Newfoundland Gold Belt, specifically with its Glover Island and Mint Pond properties, which are prospective for gold and base metals [2] - The Glover Island Property consists of 532 mining claims totaling 13,300 hectares, while the Mint Pond Property consists of 499 claims totaling 12,475 hectares [2]

Core Insights - DMC Global reported revenue of $159.29 million for Q1 2025, a year-over-year decline of 4.5%, but exceeded the Zacks Consensus Estimate by 7.37% [1] - The company's EPS for the quarter was $0.11, down from $0.21 a year ago, with a significant surprise of 237.50% compared to the consensus estimate of -$0.08 [1] Financial Performance - DMC Global's net sales for Arcadia were $65.58 million, surpassing the average estimate of $58.15 million, reflecting a year-over-year increase of 5.9% [4] - NobelClad's net sales reached $28.16 million, exceeding the two-analyst average estimate of $25.65 million, with a year-over-year change of 5% [4] - DynaEnergetics reported net sales of $65.55 million, slightly above the average estimate of $64.55 million [4] Stock Performance - Over the past month, DMC Global's shares have declined by 23.8%, contrasting with a minor decline of 0.7% in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - DMC Global Inc. reported a solid start to Q1 2025, indicating positive performance despite potential uncertainties in the market [4]. Group 1: Company Overview - The conference call was hosted by Geoff High, VP of Investor Relations, with participation from interim CEO Jim O'Leary and CFO Eric Walter [1][2]. - The earnings release and related presentation for Q1 performance are available on the company's investor relations page [3]. Group 2: Financial Performance - The company emphasized that the first quarter results were a strong beginning for 2025, suggesting a positive outlook for the year ahead [4].

Group 1 - DMC Global reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of a loss of $0.08 per share, representing an earnings surprise of 237.50% [1] - The company posted revenues of $159.29 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.37%, although this is a decrease from year-ago revenues of $166.87 million [2] - DMC Global has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times in the same period [2] Group 2 - The stock has underperformed the market, losing about 11.7% since the beginning of the year compared to the S&P 500's decline of 5.3% [3] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $155.25 million, and for the current fiscal year, it is $0.08 on revenues of $619.8 million [7] - The Zacks Industry Rank indicates that the Industrial Services sector is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $159.3 million, up 5% sequentially, while adjusted EBITDA attributable to DMC was $14.4 million, 30.9% higher than the fourth quarter [5][9] - Adjusted EBITDA margin was 11.4%, up sequentially from 7.8% in the fourth quarter and flat with the prior year [9][10] - First quarter adjusted net income attributable to DMC was $2.2 million, with adjusted EPS of $0.11 [11] Business Line Data and Key Metrics Changes - Arcadia's sales were $65.6 million, a 9% sequential increase and a 6% year-over-year improvement [5] - DynaEnergetics reported first quarter sales of $65.6 million, up 3% sequentially but down 16% year-over-year [5][6] - NobelClad's first quarter sales were flat sequentially but up 5% year-over-year, with an order backlog of $41 million, down from $49 million at the end of the fourth quarter [7][8] Market Data and Key Metrics Changes - The U.S. onshore energy market saw a 20% decline in the number of active frac crews compared to the previous year [6] - Ongoing uncertainty around U.S. tariff policies has led to customers delaying orders in NobelClad's market [8] Company Strategy and Development Direction - The company is focused on driving absolute EBITDA growth, generating strong free cash flow, and restoring balance sheet health through deleveraging [15] - Management emphasized operational improvement initiatives despite external challenges such as tariffs and macroeconomic conditions [4][5] Management Comments on Operating Environment and Future Outlook - Management noted that the first quarter was a solid start to 2025 despite external challenges [4] - Future guidance reflects concerns over macroeconomic volatility and visibility issues due to current tariff policies and energy prices [13][14] Other Important Information - The company ended the first quarter with cash and cash equivalents of approximately $15 million and total debt of approximately $72 million [11] - The guidance for second quarter consolidated sales is expected to be in the range of $149 million to $157 million [13] Q&A Session Summary Question: Impact of tariffs and costs on guidance - Management indicated that tariffs have some impact, but demand destruction is a larger factor affecting guidance [18][20] Question: Automation and cost containment opportunities - Management stated that cost containment efforts are ongoing, particularly in DynaEnergetics and Arcadia, but quantifying total impact is challenging [25][27] Question: California commercial projects' contribution to EBITDA - Management confirmed that the commercial side of the business will remain profitable in Q2, with a significant project impacting EBITDA [35] Question: Pricing pressures from suppliers - Management is evaluating the supply chain but finds it difficult to predict pricing impacts for the next quarter and second half of the year [36] Question: Tariff surcharge effectiveness - Management reported partial success in passing along tariff surcharges to customers, with ongoing discussions about cost sharing [39] Question: Dyna business performance outlook - Management expects the Dyna business to be flat to modestly down if oil prices remain low and rig counts decrease [42] Question: Update on Steel Connect situation - Management stated that there is no new information regarding Steel Connect, the largest shareholder [43]

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $159.3 million, up 5% sequentially, while adjusted EBITDA attributable to DMC was $14.4 million, 30.9% higher than the fourth quarter [4] - Adjusted EBITDA margin was 11.4%, up sequentially from 7.8% in the fourth quarter and flat with the prior year [8][10] - First quarter adjusted net income attributable to DMC was $2.2 million, with adjusted EPS of $0.11 [10] Business Line Data and Key Metrics Changes - Arcadia's sales were $65.6 million, a 9% sequential increase and a 6% year-over-year improvement, driven by increased sales of commercial exterior storefront products [4] - DynaEnergetics reported first quarter sales of $65.6 million, up 3% sequentially but down 16% year-over-year due to pricing adjustments in response to a downturn in the U.S. onshore energy market [4][5] - NobelClad's first quarter sales were flat sequentially but up 5% year-over-year, with an order backlog of $41 million, down from $49 million at the end of the fourth quarter [6][7] Market Data and Key Metrics Changes - The number of active frac crews in DynaEnergetics' core U.S. onshore energy market was down approximately 20% compared to the previous year [5] - Ongoing uncertainty around U.S. tariff policies has led customers to delay orders in NobelClad's markets [7] Company Strategy and Development Direction - The company is focused on driving absolute EBITDA growth, generating strong free cash flow, and restoring its balance sheet through deleveraging [14] - Management emphasized a renewed focus on core operations and cost containment initiatives across business lines [4][14] Management's Comments on Operating Environment and Future Outlook - Management noted external challenges including tariffs, volatile macroeconomic conditions, and decreasing visibility into core end markets [2][4] - Future guidance indicates expectations for lower project billings at Arcadia and a slowdown in NobelClad sales due to tariff uncertainties [11][12] Other Important Information - The company ended the first quarter with cash and cash equivalents of approximately $15 million and total debt of approximately $72 million, resulting in a debt to adjusted EBITDA leverage ratio of 1.38 [10] Q&A Session Summary Question: Impact of guidance factors including tariffs and costs - Management indicated that tariffs are creating demand destruction, particularly affecting NobelClad and Arcadia, which is more impacted by interest rates than tariffs [18][20] Question: Progress on cost containment and automation initiatives - Management stated that Arcadia is focused on fixing its residential business and refocusing on commercial operations, while DynaEnergetics is implementing automation to improve efficiency [25][26] Question: Performance expectations for Dyna in a declining rig count scenario - Management expects Dyna's business to be softer if oil prices remain low and rig counts decline, with guidance reflecting a flat to modestly down outlook [41] Question: Update on tariff surcharges and pricing strategies - Management reported some success in passing along tariff surcharges but noted that not all costs have been recovered, and discussions with customers are ongoing [38] Question: Status of Steel Connect situation - Management stated that Steel Connect is the largest shareholder, and there are no new updates beyond periodic conversations [43]

Financial Performance - Net sales for Q1 2025 were $159.29 million, a decrease of 4.5% compared to $166.87 million in Q1 2024[14] - Gross profit for Q1 2025 was $41.20 million, down from $42.35 million in Q1 2024, reflecting a gross margin of 25.9%[14] - Operating income for Q1 2025 was $6.51 million, slightly lower than $6.69 million in Q1 2024[14] - Net income attributable to DMC Global Inc. stockholders for Q1 2025 was $0.68 million, a significant decrease from $2.56 million in Q1 2024[14] - The company reported a comprehensive income attributable to DMC Global Inc. stockholders of $1.85 million for Q1 2025, compared to $1.45 million in Q1 2024[15] - Net income for the three months ended March 31, 2025, was $1,863 million, a decrease of 19.7% from $2,319 million in the same period of 2024[19] - Basic and diluted net income per share for Q1 2025 was $0.04, compared to $0.01 in Q1 2024, reflecting a 300% increase[40] - Adjusted EBITDA attributable to DMC Global Inc. decreased by 14% to $14,391 in Q1 2025 from $16,683 in Q1 2024[117] - Net income attributable to DMC Global Inc. fell by 74% to $677 in Q1 2025 compared to $2,563 in Q1 2024[123] Assets and Liabilities - Total current assets increased to $296.91 million as of March 31, 2025, compared to $289.02 million at the end of 2024[12] - Total liabilities decreased to $229.64 million as of March 31, 2025, down from $233.29 million at the end of 2024[12] - Cash and cash equivalents increased to $14.71 million as of March 31, 2025, compared to $14.29 million at the end of 2024[12] - Total debt as of March 31, 2025, was $72,421,000, an increase from $70,818,000 as of December 31, 2024[64] - The net debt position increased to $57,716 as of March 31, 2025, compared to $56,529 at December 31, 2024, due to net borrowings of $1,500[146] Cash Flow - Net cash provided by operating activities decreased to $4,488 million from $13,440 million, reflecting a decline of 66.7% year-over-year[19] - The company reported a net cash used in investing activities of $(3,332) million, compared to a net cash provided of $9,651 million in the same period last year[19] - Net cash flows used in financing activities for Q1 2025 were $135, which included $1,151 in distributions to redeemable noncontrolling interest holders and $484 in treasury stock purchases[159] - In Q1 2024, net cash flows used in financing activities were significantly higher at $34,296, primarily due to $27,500 in net credit facility repayments[160] Sales Performance by Segment - For the three months ended March 31, 2025, total net sales were $159,290, with Arcadia Products contributing $65,580, DynaEnergetics $65,551, and NobelClad $28,159[82] - DynaEnergetics reported total sales of $65,551 for the three months ended March 31, 2025, down from $78,122 in the same period of 2024, representing a decrease of approximately 16%[85] - NobelClad's total sales increased to $28,159 in the first quarter of 2025, compared to $26,822 in the first quarter of 2024, reflecting an increase of about 5%[86] - Arcadia Products achieved sales of $65,580 in Q1 2025, a 6% increase compared to the same period in 2024, driven by higher sales volumes for longer-cycle commercial projects[107] Expenses and Costs - The company incurred restructuring expenses of $0.33 million in Q1 2025, indicating ongoing strategic adjustments[14] - General and administrative expenses increased by 4% to $16,674 in Q1 2025, primarily due to higher compensation costs[117] - Selling and distribution expenses increased by $350, primarily due to a $235 increase in bad debt expense and $152 in incentive compensation costs for the three months ended March 31, 2025[132] - The company recorded total operating lease expense of $3,132,000 for Q1 2025, down from $3,348,000 in Q1 2024[63] Strategic Initiatives and Risks - The company incurred strategic review expenses of $1,298 in Q1 2025, primarily due to professional service fees and employee retention compensation[96] - The company is exposed to foreign currency exchange risk and uses forward contracts to mitigate these risks, with net notional amounts of forward contracts held at $13,469 as of March 31, 2025[89] - The company announced a tariff surcharge of 7% to 9% on all perforating systems sold in North America in response to increased raw material costs due to tariffs[169] - There were no material changes in market risk related to foreign currency exchange rates and interest rates compared to the previous year[163] Compliance and Financial Ratios - The Company maintained a minimum debt service coverage ratio of 1.25 to 1.0 as per the credit facility[69] - As of March 31, 2025, the Company was in compliance with all financial covenants and provisions of its debt agreements[70] - The actual leverage ratio as of March 31, 2025 was 1.38 to 1.0, well below the maximum permitted ratio of 3.0 to 1.0[151] - The debt service coverage ratio for the trailing twelve months ended March 31, 2025 was 3.43 to 1.0, exceeding the minimum required ratio of 1.25 to 1.0[152]

© 2025 DMC. All rights reserved. First Quarter 2025 Earnings Presentation May 1, 2025 ARCADIA COMMERCIAL FRAMING SYSTEMS USED IN HILTON'S CANOPY HOTEL, TEMPE ARIZONA 1 USE OF NON-GAAP FINANCIAL MEASURES & SAFE HARBOR LANGUAGE *Use of Non-GAAP Financial Measures 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-GAA ...

Sales Performance - First quarter sales were $159.3 million, representing a 5% sequential increase but a 5% decline compared to Q1 2024[9]. - Arcadia's sales reached $65.6 million, a 9% sequential increase and a 6% increase compared to the same quarter last year[4]. - DynaEnergetics reported sales of $65.6 million, a 3% sequential increase but a 16% decline year-on-year due to pricing adjustments and lower unit sales[5]. - NobelClad's sales were flat sequentially at $28.2 million, with a 5% increase compared to the previous year's first quarter[7]. - DynaEnergetics segment net sales were $65,551,000, a 3% increase sequentially but a 16% decrease year-on-year[31]. - NobelClad segment net sales were $28,159,000, a 1% decrease sequentially but a 5% increase year-on-year[33]. Financial Metrics - Adjusted EBITDA attributable to DMC was $14.4 million, up 39% sequentially but down 14% year-on-year[12]. - The gross profit percentage for the first quarter improved to 25.9%, up from 20.8% in the previous quarter[12]. - Gross profit increased by 30% sequentially to $41,199,000, while year-on-year it decreased by 3%[28]. - Operating income for Q1 2025 was $6,513,000, a significant improvement from a loss of $696,000 in Q4 2024, but a 3% decrease compared to Q1 2024[28]. - Net income attributable to DMC Global Inc. stockholders was $677,000, a 129% increase sequentially but a 74% decrease year-on-year[28]. - Adjusted EBITDA for the Arcadia segment was $9,327,000, a 150% increase sequentially and a 58% increase year-on-year[30]. - Adjusted EBITDA for the same period was $18,122,000, a 53% increase from $11,876,000 in the previous quarter, but a 5% decrease year-on-year[38]. - DynaEnergetics reported adjusted EBITDA of $7,379,000 for the three months ended March 31, 2025, a 45% increase from $5,098,000 in the previous quarter[41]. - NobelClad's operating income for the same period was $4,622,000, down 8% from $5,050,000 in the previous quarter[42]. Cash Flow and Assets - Total current assets increased by 3% to $296,909,000 compared to the end of Q4 2024[35]. - Cash and cash equivalents rose by 3% to $14,705,000 from $14,289,000 at the end of Q4 2024[35]. - Cash flows from operating activities provided $4,488,000, a decrease from $11,811,000 in the previous quarter[37]. - The cash and cash equivalents at the end of the period were $14,705,000, an increase from $14,289,000 at the beginning of the period[37]. Guidance and Future Outlook - Second quarter sales guidance is projected to be between $149 million and $157 million, with adjusted EBITDA expected in the range of $10 million to $13 million[11]. - Arcadia's results are anticipated to be below the prior year's second quarter due to decreased demand in the luxury residential market[11]. Operational Initiatives - DynaEnergetics completed a major automation initiative aimed at increasing production capacity and streamlining operations[6]. - The company experienced a 150% sequential increase in adjusted EBITDA attributable to DMC Global Inc. from $2,243,000 to $5,596,000 in the Arcadia segment[40]. - Strategic review and related expenses for the three months ended March 31, 2025, amounted to $1,298,000, down 28% from $1,813,000 in the previous quarter[38].

Core Insights - DMC Global Inc. reported a solid start to 2025 with a 5% sequential increase in consolidated sales and a 39% sequential rise in consolidated adjusted EBITDA for Q1 2025 [1][9]. Financial Performance - Total net sales for Q1 2025 were $159.3 million, reflecting a 5% increase from Q4 2024 but a 5% decrease compared to Q1 2024 [9][11]. - Adjusted net income attributable to DMC was $2.2 million, or $0.11 per diluted share, down 48% year-on-year [9][11]. - Adjusted EBITDA attributable to DMC was $14.4 million, a 39% increase sequentially but a 14% decrease year-on-year [9][11]. Segment Performance Arcadia - Arcadia's sales reached $65.6 million, up 9% sequentially and 6% year-on-year, driven by increased sales in commercial products [2][12]. - Adjusted EBITDA for Arcadia was $5.6 million, up 149% sequentially and 58% year-on-year [2][12]. DynaEnergetics - DynaEnergetics reported sales of $65.6 million, a 3% sequential increase but a 16% decline year-on-year due to pricing adjustments and lower unit sales [3][13]. - Adjusted EBITDA for DynaEnergetics was $7.4 million, up 45% sequentially but down 30% year-on-year [3][13]. NobelClad - NobelClad's sales were flat sequentially at $28.2 million, with a 5% increase year-on-year [5][32]. - Adjusted EBITDA for NobelClad was $5.4 million, down 7% sequentially and 8% year-on-year [5][32]. Operational Initiatives - DMC has focused on operational improvements, including a major automation initiative at DynaEnergetics' manufacturing center to enhance production capacity [4][7]. - The company has emphasized cost control and a return to core operations amid a volatile macroeconomic environment [2][6]. Guidance - For Q2 2025, DMC expects sales between $149 million and $157 million, with adjusted EBITDA anticipated between $10 million and $13 million [8][10]. - The guidance reflects anticipated lower project billings at Arcadia and ongoing macroeconomic challenges impacting demand [8][10].