DMC (BOOM) - 2019 Q1 - Quarterly Report

Financial Performance - Net sales for Q1 2019 reached $100.135 million, a significant increase of 48.8$67.313 million in Q1 2018[18] - Gross profit for Q1 2019 was $36.405 million, up 60.2$22.753 million in Q1 2018[18] - Operating income for Q1 2019 was $20.452 million, compared to$5.312 million in Q1 2018, reflecting a growth of 285.5%[18] - Net income for Q1 2019 was $15.170 million, a substantial increase of 286.5$3.920 million in Q1 2018[18] - Basic net income per share for Q1 2019 was $1.02, compared to$0.26 in Q1 2018, representing a 292.3% increase[18] - The company reported a total comprehensive income of $14.751 million for Q1 2019, compared to$5.525 million in Q1 2018, marking an increase of 167.5%[21] - Adjusted EBITDA for Q1 2019 was $23,897, up 105$11,642 in Q1 2018[109] - Operating income surged to $20,452 in Q1 2019, a 285$5,312 in Q1 2018, driven by improved earnings in both DynaEnergetics and NobelClad segments[109] Assets and Liabilities - Total assets as of March 31, 2019, were $266.106 million, up from$240.418 million as of December 31, 2018, indicating an increase of 10.7%[14] - Total liabilities increased to $117.195 million as of March 31, 2019, compared to$106.132 million as of December 31, 2018, reflecting a rise of 10.0%[14] - Stockholders' equity as of March 31, 2019, was $148.911 million, an increase from$134.286 million as of December 31, 2018, showing a growth of 10.9%[14] - Outstanding borrowings totaled $44,098 million as of March 31, 2019, compared to$42,128 million at December 31, 2018, reflecting an increase in debt levels[61] - Long-term debt increased to $40,239 as of March 31, 2019, from$38,230 at December 31, 2018[147] Cash Flow - Cash provided by operating activities was $6,997,000 for the three months ended March 31, 2019, compared to cash used of$(2,978,000) in the same period of 2018[25] - Total cash and cash equivalents at the end of the period increased to $14,874,000 from$10,768,000 year-over-year[25] - Cash used in investing activities was $(6,397,000) for the three months ended March 31, 2019, compared to$(5,302,000) in the same period of 2018[25] - Cash provided by financing activities was $818,000 for the three months ended March 31, 2019, down from$10,538,000 in the same period of 2018[25] - Net cash provided by operating activities for the three months ended March 31, 2019, was $6,997, compared to a cash outflow of$2,978 in the same period last year[148] - Net cash flows used in investing activities for the three months ended March 31, 2019, totaled $6,397, primarily for acquisitions of property, plant, and equipment[149] - Net cash flows provided by financing activities for the three months ended March 31, 2019, totaled$818, a decrease from $10,538 in the same period last year[150] Segment Performance - DynaEnergetics and NobelClad are the two reportable segments, with DynaEnergetics focusing on products for the oil and gas industry and NobelClad specializing in explosion-welded clad metal plates[71] - DynaEnergetics segment net sales increased to$79,836 million in Q1 2019 from $49,121 million in Q1 2018, representing a growth of 62.5$20,299 million in Q1 2019 compared to $18,192 million in Q1 2018, an increase of 11.5$67,959 million in net sales from the United States in Q1 2019, up from $36,130 million in Q1 2018, a growth of 88.0$3,458 million in Q1 2019 from $5,785 million in Q1 2018, a decline of 40.2$0.02 per common share for both Q1 2019 and Q1 2018[19] - A quarterly cash dividend of $0.02 per share was declared on February 27, 2019, totaling$299 payable to shareholders[151] Compliance and Governance - DMC Global Inc. reported its quarterly results for the period ended March 31, 2019, with a focus on financial certifications as per the Sarbanes-Oxley Act[31.1][31.2][32.1][32.2] - The report was signed by Michael Kuta, Chief Financial Officer, confirming the accuracy of the financial data presented[181] - The company was in compliance with all financial covenants and other provisions of its debt agreements as of March 31, 2019[146] Accounting and Standards - The company adopted a new accounting standard on January 1, 2019, requiring the recognition of right-of-use assets and lease liabilities on the balance sheet[46] - The company has no material leases in which it is the lessor, and it adopted a new accounting standard for lease-related rights and obligations on January 1, 2019[155] Strategic Initiatives - Management is exploring strategic alternatives for its Russia-based operations, which contributed approximately 1% to sales and operating income in Q1 2019[104] - The company anticipates closing the sale of its Rivesaltes production facility in France during Q2 2019[90]