DMC (US:BOOM)2024-08-01 20:16Financial Performance - Net sales for Q2 2024 were $171,179,000, a decrease of 9.2% from $188,664,000 in Q2 2023[8] - Gross profit for Q2 2024 was $46,413,000, down 25.0% from $61,890,000 in Q2 2023[8] - Net income attributable to DMC Global Inc. stockholders for Q2 2024 was $4,012,000, a decline of 70.7% compared to $13,703,000 in Q2 2023[9] - Operating income for Q2 2024 was $11,685,000, a decrease of 56.6% from $26,997,000 in Q2 2023[8] - Comprehensive income attributable to DMC Global Inc. stockholders for Q2 2024 was $3,497,000, down from $14,149,000 in Q2 2023[11] - The net income for the six months ended June 30, 2024, was $8,612,000, compared to $19,665,000 for the same period in 2023, indicating a decrease of approximately 56.2%[18] - Net income attributable to DMC Global Inc. stockholders for the six months ended June 30, 2024, was $6,575, a decrease of 55% compared to $14,612 for the same period in 2023[130] - Adjusted EBITDA attributable to DMC Global Inc. decreased to $19,420 for the three months ended June 30, 2024, from $31,776 in the same period in 2023, a decline of 39%[111] - Adjusted EBITDA attributable to DMC Global Inc. was $36,103 for the six months ended June 30, 2024, down 30% from $51,867 in 2023[131] Assets and Liabilities - Total assets as of June 30, 2024, were $869,485,000, a decrease from $884,495,000 as of December 31, 2023[5] - Total liabilities decreased to $266,416,000 as of June 30, 2024, from $286,440,000 as of December 31, 2023[5] - Cash and cash equivalents were $14,567,000 as of June 30, 2024, down from $31,040,000 as of December 31, 2023[5] - The total debt as of June 30, 2024, was $84,112 million, down from $115,851 million as of December 31, 2023, showing a reduction of about 27.5%[62] - The redeemable noncontrolling interest was valued at $187,080 million as of June 30, 2024, compared to $187,760 million on December 31, 2023[29] - The company reported a significant increase in accounts payable, which rose to $22,070,000 for the six months ended June 30, 2024, compared to $10,015,000 in 2023[18] Cash Flow - Cash flows provided by operating activities for the six months ended June 30, 2024, were $15,783,000, down from $18,544,000 in the prior year, reflecting a decline of about 9.5%[18] - The company experienced a net cash decrease of $16,473,000 for the six months ended June 30, 2024, compared to a decrease of $6,420,000 in the same period of 2023[18] - Net cash flows used in financing activities for the six months ended June 30, 2024, totaled $39,727, which included net credit facility repayments of $31,500[173] Inventory and Expenses - Total inventories as of June 30, 2024, amounted to $174,791 million, compared to $166,712 million as of December 31, 2023, indicating an increase of about 4.5%[54][55] - Consolidated SG&A expenses were $27,122 in Q2 2024, down from $29,226 in Q2 2023, mainly due to reduced compensation and outside services costs[101] - Selling and distribution expenses decreased by $802 for the six months ended June 30, 2024, primarily due to lower compensation and marketing costs[126] Strategic Initiatives - The company reported a strategic review expense of $2,020,000 in Q2 2024, which was not present in Q2 2023[8] - Strategic review expenses amounted to $4,189 for the six months ended June 30, 2024, related to a review of strategic alternatives for business segments[126] - DMC expects Arcadia Products to drive future growth, leveraging new digital technologies and increased manufacturing capacity[103] Market Conditions - The company’s expected loss rate reflects uncertainties in market conditions, including supply chain disruptions and rising interest rates[23] - The company is currently evaluating the impact of recent accounting standards updates on its financial statements and disclosures, which may affect future reporting[51][52] Shareholder Information - The Stockholder Protection Rights Agreement was adopted on June 5, 2024, allowing shareholders to purchase shares at $75.00 if certain conditions are met[68] - The company suspended its quarterly dividend indefinitely as of April 23, 2020, with future dividends subject to Board discretion[173]