We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. Additionally, a three-year cumulative loss at a consolidated financial statement level may be viewed as negative evidence impacting a jurisdiction that by itself is not in a three-year cumulative loss position. During the three months ended March 31, 2024 and 2023, we did not record any adjustments to previously established valuation allowances, except ...

FOR IMMEDIATE RELEASE: CONTACT: Geoff High, Vice President of Investor Relations 303-604-3924 • First quarter sales were $166.9 million, down 9% vs. Q1 2023 • Net income was $2.3 million, while net income attributable to DMC was $2.6 million • Adjusted net income attributable to DMC* was $4.2 million versus $6.1 million in Q1 2023 • Adjusted diluted EPS attributable to DMC* was $0.21 versus $0.32 in Q1 2023 • Adjusted EBITDA* attributable to DMC was $16.7 million, down 17% vs. Q1 2023 • Total adjusted EBITD ...

BROOMFIELD, Colo., April 17, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) will announce its 2024 first quarter financial results after the stock market closes on Thursday, May 2, 2024. Following the earnings release, executive management will host a conference call and simultaneous webcast. The conference call will begin at 5 p.m. Eastern (3 p.m. Mountain) and will be accessible by dialing 877-407-5783 (or +1 201-689-8782 for international callers). Investors are invited to listen to the webcast ...

BROOMFIELD, Colo., April 02, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (NASDAQ:BOOM) today published its Annual Letter to Stakeholders from President and CEO Michael Kuta. The letter is available HERE, or under "Company Info" on the INVESTORS page of DMC's website. About DMC GlobalDMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC's businesses have established leadership positions in their ...

BROOMFIELD, Colo., March 15, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (NASDAQ:BOOM) today announced that the Company has entered into a cooperation agreement (the "Cooperation Agreement") with Bradley L. Radoff and his affiliate (the "Radoff Parties"), pursuant to which the Company and the Radoff Parties will identify and mutually agree to appoint a new independent director to the board of directors of DMC (the "Board") with expertise and experience in the building products sector. Pursuant to the terms of ...

DMC Global Inc. (NASDAQ:BOOM) Q4 2023 Earnings Call Transcript February 22, 2024 5:00 PM ET Company Participants Geoff High - VP of IR Michael Kuta - CEO Eric Walter - CFO Conference Call Participants Ken Newman - KeyBanc Capital Markets Alec Scheibelhoffer - Stifel Operator Greetings. Welcome to the DMC Global Fourth Quarter and Full Year Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] I will ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|------------------------------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DMC Fourth Quarter 2023 Earnings Presentation February 22, 2024 | | | | | | 2 Safe Harbor Language 2023 Fourth Quarter Earnings Presentation 2023 Fourth Quarter Earnings Presentation 3 * Non-GAAP ...

For the quarter ended December 2023, DMC Global (BOOM) reported revenue of $174.04 million, down 0.6% over the same period last year. EPS came in at $0.26, compared to $0.22 in the year-ago quarter.The reported revenue represents a surprise of +1.90% over the Zacks Consensus Estimate of $170.8 million. With the consensus EPS estimate being $0.33, the EPS surprise was -21.21%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

DMC Global (BOOM) came out with quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -21.21%. A quarter ago, it was expected that this diversified holding company would post earnings of $0.54 per share when it actually produced earnings of $0.50, delivering a surprise of -7.41%.Over the last four quarte ...

Sales Performance - DynaEnergetics' sales increased by 19% to $315,026 in 2023, driven by a 28% increase in international sales and an 18% increase in North American sales[435] - Net sales increased by 10% to $719,188 for the twelve months ended December 31, 2023, driven by DynaEnergetics' DS perforating systems and NobelClad's energy and petrochemical markets[468] - DynaEnergetics total revenue increased to $315.026 million in 2023 from $264.327 million in 2022, with significant growth in the United States ($245.391 million in 2023 vs. $211.025 million in 2022)[802] - Arcadia Products reported sales of $298,909 in 2023, consistent with $299,527 in 2022[462] Expenses and Costs - Consolidated SG&A expenses rose to $124,442 in 2023, up from $118,349 in 2022, primarily due to $4,343 in CEO transition expenses and higher compensation costs[436] - General and administrative expenses decreased by $3,821 in 2023, primarily due to lower patent litigation costs of $3,019[486] - Research and development costs were $6,864 in 2023, slightly higher than $6,781 in 2022 but lower than $7,240 in 2021[733] - Restructuring expenses totaled $3,766 in 2023, including $1,871 in asset impairments at DynaEnergetics and $440 at NobelClad[766] - Total restructuring expenses for 2023 were $3,766, primarily related to asset impairments and employee severance[741] - Unallocated corporate expenses, including restructuring and asset impairments, increased by $3,584 in 2023, primarily due to $2,471 in software asset impairments and $1,295 in cost reduction initiatives at DynaEnergetics[470] - Restructuring expenses and asset impairments totaled $17,466, with unallocated stock-based compensation at $8,544[826] Assets and Liabilities - Current assets increased to $326,812 in 2023 from $286,872 in 2022, driven by higher cash and cash equivalents ($31,040 vs. $25,144) and accounts receivable ($106,205 vs. $94,415)[644] - Property, plant, and equipment net value slightly decreased to $129,267 in 2023 from $129,445 in 2022, despite an increase in gross property value to $223,683 from $211,277[644] - Goodwill remained unchanged at $141,725 in 2023, while purchased intangible assets decreased to $195,260 from $217,925 in 2022[644] - Total assets increased marginally to $884,495 in 2023 from $878,978 in 2022, with a notable increase in inventories to $166,712 from $156,590[644] - The company's total debt as of December 31, 2023, was $115,851, with a term loan of $117,500 and no outstanding revolving loan[775] - The company's line of credit with a German bank has a borrowing capacity of €7,000, with no outstanding borrowings as of December 31, 2023[756] - The company's ROU asset and lease liability as of December 31, 2023, were $45,409 and $47,396, respectively[772] - The company's total future minimum lease payments as of December 31, 2023, were $55,495, with imputed interest of $8,099[752] - The company's total intangible assets were $195,260 as of December 31, 2023, with customer relationships accounting for $176,215 of the net value[769] Income and Profitability - The company's net income attributable to DMC Global Inc. stockholders increased from $12,247,000 in 2022 to $26,259,000 in 2023[712] - Basic EPS increased from $0.72 in 2022 to $1.08 in 2023, with diluted EPS remaining the same as basic EPS[712] - Adjusted EBITDA increased to $56,270 in 2023 from $46,932 in 2022, driven by higher operating income and lower depreciation expenses[487] - Total income before income taxes increased to $49.879 million in 2023 from $23.209 million in 2022, driven by foreign income ($33.698 million in 2023 vs. $23.511 million in 2022)[819] - Income before income taxes for Arcadia Products was $21,407, compared to a loss of $2,020 in the previous period[826] - Segment operating income was $87,187, with DynaEnergetics contributing $46,353 and NobelClad contributing $19,427[826] Taxes and Provisions - The income tax provision (benefit) for the year ended December 31, 2023 was $15,120, compared to $9,376 in 2022 and ($1,544) in 2021[796] - Current income tax expense increased to $14.150 million in 2023 from $9.975 million in 2022, with foreign tax expense contributing $9.895 million in 2023[819] - Net deferred tax assets decreased to $4.782 million in 2023 from $5.725 million in 2022, primarily due to changes in valuation allowances[821] - The company's tax benefits from uncertain tax positions are recognized only when it is more likely than not that the position will be sustained upon examination[709] - The company had tax loss carryforwards totaling approximately $55,317 as of December 31, 2023, with $37,072 foreign and $18,245 domestic state loss carryforwards[795] Leases and Contracts - DynaEnergetics leases manufacturing and storage facilities in Germany, the U.S., and Canada, with lease expirations ranging from 2025 to 2050[445][446] - Total operating lease expense for 2023 was $12,822, compared to $11,883 in 2022 and $4,453 in 2021[750] - The weighted average remaining lease term for operating leases as of December 31, 2023, was 7.0 years, with a weighted average discount rate of 4.3%[752] - Contract liabilities decreased to $21,621 in 2023 from $32,080 in 2022, with Arcadia Products contributing $13,815 and NobelClad contributing $6,662[722] Investments and Financial Instruments - The company's foreign currency forward contracts and money market funds are classified as Level 2 assets, valued at $3,257 as of December 31, 2023[713] - The company did not hold any Level 3 assets or liabilities as of December 31, 2023 or December 31, 2022[714] - The company's investment policy limits credit exposure to any one issuer and focuses on preserving principal and providing liquidity[687] - The fair value of RSAs and RSUs granted to employees and non-employee directors is based on the fair value of DMC's stock on the grant date[759] Employee Benefits and Compensation - 5,000,000 shares were approved for grant under the 2016 Omnibus Incentive Plan, with 3,360,119 shares available at inception and 1,777,266 shares remaining as of December 31, 2023[780] - Unvested RSUs under the 2016 Plan had a balance of 53,971 shares as of December 31, 2023, with a weighted average grant date fair value of $28.33[784] - The Employee Stock Purchase Plan (ESPP) had 161,269 shares available for future purchase as of December 31, 2023, with 20,686 shares purchased in 2023[785] - Total DMC contributions to the 401(k) Plan were $2,590, $1,772, and $1,057 for the years ended December 31, 2023, 2022, and 2021, respectively[788] - The company recorded an unfunded pension obligation of $1,490 and $1,352 as of December 31, 2023 and 2022, respectively[789] - Deferred compensation obligations settled in cash are adjusted based on changes in the value of underlying investment options chosen by Plan participants[791] - Stock-based compensation increased to $10.270 million in 2023 from $10.058 million in 2022, with a net impact of $7.166 million after taxes[806] - The company contributed $285 to the defined contribution plan in 2023, compared to $261 in 2022 and $282 in 2021[814] - Unvested PSUs under the 2016 Plan decreased to a balance of 33.62 at the end of 2023, down from 51.67 at the end of 2022[811] Market and Industry Dependence - NobelClad's business is highly dependent on cyclical markets and metal prices, with demand driven by maintenance, retrofit projects, and new industrial projects[460][295] - NobelClad's backlog increased to $59,357 as of December 31, 2023, compared to $55,451 in 2022, with most orders expected to ship within twelve months[439] Foreign Currency and Exchange Rates - Sales in currencies other than U.S. dollars accounted for 9% of total sales in 2023, down from 16% in 2021, with the Euro being the primary foreign currency exposure[629] - The company's functional currency for foreign operations is the local currency, with assets and liabilities translated at period-end exchange rates, and Statements of Operations at average exchange rates during the period[657] Credit and Allowances - The allowance for doubtful accounts increased from $925,000 in 2022 to $1,955,000 in 2023, with a current period provision for expected credit losses of $1,508,000[689] - The company's leverage ratio is capped at 3.0 to 1.0 from December 31, 2023, as per the credit facility terms[804] - The company's debt service coverage ratio under the credit facility must maintain a minimum of 1.35 to 1.0[777] Revenue Recognition - Revenue recognition for DynaEnergetics and NobelClad occurs when control is transferred at a point in time, while Arcadia Products may recognize revenue over time for customized products[700] - The company's revenue recognition for customized products in Arcadia Products is based on an over-time output method, with shipments fulfilling performance obligations[703] Depreciation and Amortization - Consolidated depreciation and amortization decreased to $36.507 million in 2023 from $51.207 million in 2022[800] - Consolidated acquisition of property, plant, and equipment decreased to $15.974 million in 2023 from $18.584 million in 2022[800] - The company's purchased intangible assets have a remaining weighted average amortization period of approximately 13 years[746] Legal and Regulatory Matters - The company reached a settlement of $375 out of a total $600 to resolve PAGA claims in the Felipe and Mayorga actions[837] - The company's disclosure controls and procedures were deemed effective as of December 31, 2023[843] - No changes or disagreements with accountants on accounting and financial disclosure for the fiscal year ended December 31, 2023[842] Interest and Debt - Interest expense, net, increased to $9,516 in 2023 from $6,187 in 2022[826] - The redeemable noncontrolling interest was $187,760 as of December 31, 2023, compared to $187,522 in 2022[725] Asset Impairments - Asset impairments of $2,471 were recorded in 2023, including $1,871 for a software asset at DynaEnergetics and $440 for a manufacturing asset at NobelClad[719] - The company's reporting units for goodwill impairment assessment are Arcadia Products, DynaEnergetics, and NobelClad[663] Earnings Per Share - Earnings per share calculations for 2023 and 2022 included all potentially dilutive shares, as the company was in a net income position[736]