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]

Sales Performance - NobelClad reported fourth quarter sales of $30.8 million, a 33% increase year-over-year, with adjusted EBITDA margins rising to 24.7% from 14.8% in Q4 2022[2]. - DMC Global's net sales for Q4 2023 were $174.036 million, a 1% sequential decrease and a 1% year-over-year decrease[4]. - DynaEnergetics achieved net sales of $30.772 million in Q4 2023, an 11% sequential increase and a 33% year-over-year increase[6]. - Arcadia's fourth quarter sales were $68.0 million, down 9% from Q4 2022, but adjusted EBITDA margin improved to 13.6% from 9.6%[20]. - Fourth quarter 2023 net sales were $67.958 million, a sequential decrease of 5% and a year-on-year decrease of 9%[23]. - Full-year 2023 net sales reached $719.188 million, representing a 10% year-on-year increase from $654.086 million[25]. - DynaEnergetics reported Q4 2023 sales of $75.3 million, down 3% year-on-year but up 3% sequentially[60]. - Net sales for the twelve months ended December 31, 2023, were $315,026 million, reflecting a year-on-year increase of 19%[74]. Income and Profitability - Adjusted net income attributable to DMC was $5.179 million, down 47% sequentially and up 22% year-over-year[4]. - Adjusted EBITDA attributable to DMC for Q4 2023 was $19.589 million, a 20% decrease sequentially[4]. - The gross profit percentage for DMC Global was 26.1% in Q4 2023, down from 30.6% in Q3 2023[4]. - DMC Global's diluted net income per share attributable to DMC was $0.01, a 97% decrease sequentially and a 98% decrease year-over-year[4]. - Adjusted EBITDA attributable to DMC for Q4 2023 was $5.533 million, down 31% sequentially and up 29% year-on-year[23]. - Adjusted net income attributable to DMC for the full year 2023 was $35.316 million, a 162% increase from $13.475 million in 2022[25]. - Operating income decreased by 48% sequentially to $9,258 million, and by 12% year-on-year[71]. - Net income attributable to DMC Global Inc. stockholders for the three months ended December 31, 2023, was $2,764 million, a 69% decrease sequentially[71]. - The gross profit for the twelve months was $212,052 million, with a gross profit percentage of 29.5%, up from 28.4% year-on-year[72]. - Operating income for the twelve months increased by 104% year-on-year to $61,177 million[72]. - Net income attributable to DMC Global Inc. stockholders for the twelve months was $26,259 million, a 114% increase year-on-year[72]. - Basic and diluted net income per share for the twelve months was $1.08, reflecting a 50% increase year-on-year[72]. - Adjusted EBITDA for the twelve months was $56,270 million, a 20% increase compared to the previous year[74]. - Net income for the twelve months ended December 31, 2023, was $34,759 million, a 151% increase compared to $13,833 million in the previous year[77]. - Adjusted EBITDA for the same period was $115,908 million, reflecting a 25% year-on-year growth from $92,967 million[77]. - Operating income reported was $21,407 million, a significant increase of 440% from $3,962 million year-on-year[81]. Expenses and Liabilities - Restructuring expenses for the three months ended December 31, 2023, were $3,251 million, a significant increase of 531% sequentially and 2,420% year-on-year[71]. - General and administrative expenses decreased by 19% year-on-year to $15,806 million[74]. - The company experienced a 54% rise in net interest expense, totaling $9,516 million compared to $6,187 million in the previous year[77]. - The company incurred CEO transition expenses of $4,343 million, marking a new expense category for the year[77]. - Restructuring expenses and asset impairments were reported at $3,011 million for the twelve months ended December 31, 2023, indicating a 100% increase from the previous year[88]. Cash Flow and Assets - Cash flows from operating activities amounted to $23,179 million, slightly down from $24,204 million in the previous year[76]. - The company reported a net cash used in investing activities of $13,130 million, an increase from $7,435 million in the previous year[76]. - Cash and cash equivalents increased to $31,040 million, up 11% sequentially and 23% year-on-year[75]. - Total current assets as of December 31, 2023, were $326,812 million, a decrease of 3% from the previous quarter but an increase of 14% year-on-year[75]. - The cash and cash equivalents at the end of the period were $31,040 million, up from $28,060 million at the beginning of the period[76]. Strategic Initiatives - DMC Global is exploring strategic alternatives for NobelClad and DynaEnergetics to maximize long-term growth opportunities[3]. - The company anticipates strong demand for the new Gravity 2.0 self-orienting perforating system in 2024, contributing to margin improvements[21]. - DMC's new $300 million senior secured credit facility enhances financial flexibility and supports growth programs[42]. - Full-year 2024 sales guidance for DMC is projected between $168 million and $178 million[45].

The upcoming report from DMC Global (BOOM) is expected to reveal quarterly earnings of $0.34 per share, indicating an increase of 54.6% compared to the year-ago period. Analysts forecast revenues of $172.13 million, representing a decrease of 1.7% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company reveals its earnings, it i ...

BROOMFIELD, Colo., Feb. 07, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (NASDAQ:BOOM) today announced it has closed a $300 million, five-year senior secured credit facility consisting of a $200 million revolving credit facility, a $50 million term loan and a $50 million delayed draw term loan. The facility replaces DMC's prior $200 million credit facility. "This new credit agreement strengthens our balance sheet and improves our near-term financial flexibility as we pursue strategic alternatives for our DynaEn ...

BROOMFIELD, Colo., Jan. 29, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (NASDAQ:BOOM) today announced its board of directors ("the Board") has initiated a review of strategic alternatives for its DynaEnergetics and NobelClad businesses. The strategic review process formalizes DMC's ongoing efforts over the past several months to consider opportunities for unlocking shareholder value. The Board has retained a financial advisor and may retain other advisors to assist the Board in evaluating DMC's current strateg ...

Financial Data and Key Metrics Changes - Consolidated sales for the third quarter were $172 million, flat compared to the previous year, and below prior forecasts [84] - Adjusted net income attributable to DMC was $10 million, with adjusted EPS of $0.50, up over 40% year-over-year [73] - Consolidated adjusted EBITDA was $25 million, or 14.3% of sales, which was within the forecasted range despite lower-than-expected sales [86] - Free cash flow for the quarter was $22 million, the highest quarterly level since 2019, up from $17 million in the same quarter last year [111] Business Line Data and Key Metrics Changes - Arcadia's sales were $72 million, down 11% year-over-year, impacted by pricing pressure and operational slowdown due to ERP transition [3] - NobelClad's sales improved 18% to $28 million, driven by strong demand for pressure vessel plates and specialized transition joints [4] - Dyna reported sales of $73 million, up 4% year-over-year but down 14% sequentially, affected by customer project delays [76] Market Data and Key Metrics Changes - The North American oil and gas market is expected to see continued consolidation, focusing on safety, technology, and efficiency [87] - Dyna anticipates maintaining its market share in North America, although overall activity levels are expected to remain soft due to year-end seasonality [31] Company Strategy and Development Direction - The company aims to position each business to deliver adjusted EBITDA margins of 20% or greater, with ongoing operational enhancements and investments [106] - Arcadia is implementing additional paint capacity and a new ERP system to drive long-term improvements in sales and profitability [72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strengths of their differentiated manufacturing businesses and prospects for profitable long-term growth [6] - The company expects a stable pricing environment going into 2024, with initiatives in place to drive margins [40][42] Other Important Information - Consolidated gross margin for the third quarter was 30.6%, up 110 basis points from the previous year, due to a favorable project mix at NobelClad [77] - SG&A expenses for the third quarter were $29 million, down from 17.5% to 16.7% of sales, primarily due to lower litigation expenses at Dyna [109] Q&A Session Summary Question: How does the commercial interior business compare with other businesses? - Management noted that the commercial interior business is currently experiencing a slowdown, while other segments are performing better [13][34] Question: What are the expectations for pricing and margins in Dyna and Arcadia going into 2024? - Management indicated that they expect pricing to stabilize and are implementing initiatives to drive margins, focusing on EBITDA margins rather than gross margins [40][42] Question: Can you elaborate on capital allocation and free cash flow expectations? - The company plans to continue deleveraging while reinvesting in the business, with expectations for strong free cash flow generation going forward [46][57] Question: What impact is the new ERP system expected to have? - The ERP system is expected to improve controls and visibility into data, enhancing inventory management rather than directly adding capacity [48][49] Question: How is the customer mix evolving? - Management noted a shift from a heavier private customer mix to a more balanced approach, aligning with leading end users and service companies [51][62]

• Adjusted EBITDA attributable to DMC up 13% Y-O-Y • Total adjusted EBITDA of $30.0 million up 13% Y-O-Y • Consolidated adjusted EBITDA margin of 17.4% 2023 Third Quarter Earnings Presentation 5 THIRD QUARTER 2023 BUSINESS-LEVEL FINANCIAL PERFORMANCE $81 $79 $72 $0 $5 0 $1 00 Q3 22 Q2 23 Q3 23 Sales $ In Millions Arcadia DynaEnergetics NobelClad USE OF NON-GAAP FINANCIAL MEASURES & SAFE HARBOR LANGUAGE *Use of Non-GAAP Financial Measures Adjusted net income (loss), adjusted EBITDA and net debt are non-GAAP ...

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) For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 Commission file number 001-14775 (303) 665-5700 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant has submitted ele ...

DMC Global Inc. (NASDAQ:BOOM) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Geoff High - Vice President, Investor Relations Kevin Longe - President and CEO Mike Kuta - Chief Financial Officer Conference Call Participants Cameron Lochridge - Stephens Stephen Gengaro - Stifel Gerry Sweeney - ROTH Capital Jim Brilliant - Century Management Operator Good day, ladies and gentlemen. And welcome to the DMC Global Second Quarter Earnings Call. At this time, all participants have be ...

In connection with the vesting of Company restricted common stock under our equity incentive plans or distributions of shares of common stock pursuant to our Amended and Restated Non-Qualified Deferred Compensation Plan ("deferred compensation plan") during the second quarter of 2023, we retained shares of common stock in satisfaction of withholding tax obligations. We also retained shares of common stock as the result of participants' diversification of equity awards held in the deferred compensation plan ...