DMC (US:BOOM)2019-07-25 20:37Financial Performance - Net sales for Q2 2019 reached $110.954 million, a 37.1% increase from $80.915 million in Q2 2018[17] - Gross profit for the first half of 2019 was $78.478 million, up 58.5% from $49.528 million in the same period of 2018[17] - Net income for Q2 2019 was $17.244 million, compared to $6.372 million in Q2 2018, representing a 170.5% increase[19] - The comprehensive income for the first half of 2019 was $33.533 million, compared to $7.541 million in the same period of 2018[19] - Net income for the six months ended June 30, 2019, was $32,414,000, compared to $10,292,000 for the same period in 2018, representing a significant increase of 215%[26] - DynaEnergetics reported net sales of $88,628 million for the three months ended June 30, 2019, compared to $58,899 million for the same period in 2018, representing a growth of 50.5%[80] - NobelClad's net sales for the three months ended June 30, 2019, were $22,326 million, slightly up from $22,016 million in the same period of 2018[80] - The company's total net sales for the six months ended June 30, 2019, reached $211,089 million, compared to $148,228 million for the same period in 2018, indicating a year-over-year increase of 42.4%[80] Earnings and Profitability - The company reported a basic net income per share of $1.17 for Q2 2019, compared to $0.43 for Q2 2018, marking a significant increase[17] - Adjusted EBITDA for Q2 2019 was $29,026, a 108% increase from $13,922 in Q2 2018[118] - Operating income surged to $24,653 in Q2 2019, a 141% increase compared to $10,229 in Q2 2018[118] - Net income for the six months ended June 30, 2019 was $32,414, or $2.17 per diluted share, compared to $10,292, or $0.69 per diluted share, for the same period in 2018, representing a 215% increase[146] - Adjusted EBITDA for the six months ended June 30, 2019 was $52,923, an increase of 107% compared to $25,564 for the same period in 2018[132] - Gross profit for the six months ended June 30, 2019 was $78,478, up 58% from $49,528 in 2018, with a gross profit percentage of 37.2% compared to 33.4%[132] Assets and Liabilities - Total assets increased to $285.184 million as of June 30, 2019, up from $240.418 million at the end of 2018, reflecting a growth of 18.6%[14] - Current liabilities rose to $70.332 million, an increase of 8.7% from $64.565 million at the end of 2018[14] - Total stockholders' equity increased to $163.501 million as of June 30, 2019, up from $134.286 million at the end of 2018, a growth of 21.8%[14] - The long-term debt balance decreased to $32,744 at June 30, 2019 from $38,230 at December 31, 2018[187] Cash Flow - Cash flows provided by operating activities for the six months ended June 30, 2019, were $23,302,000, compared to a cash outflow of $1,579,000 in 2018[26] - Net cash provided by operating activities for the six months ended June 30, 2019 was $23,302, a significant increase from a cash outflow of $1,579 in the same period last year[188] - Net cash flows used in investing activities for the six months ended June 30, 2019 totaled $15,025, primarily for acquisitions of property, plant, and equipment[189] - Net cash flows used in financing activities for the six months ended June 30, 2019 totaled $6,757, a decrease from $15,748 provided in the same period last year[190] Dividends and Shareholder Returns - The company declared dividends of $0.02 per common share for both Q2 2019 and Q2 2018, maintaining consistency[17] - The company declared dividends totaling $598,000 for the six months ended June 30, 2019, compared to $593,000 in the same period of 2018[26] - A quarterly cash dividend of $0.02 per share was declared on May 7, 2019, totaling $299 payable to shareholders[191] Operational Metrics - Total inventories as of June 30, 2019, amounted to $59,980,000, an increase from $51,074,000 as of December 31, 2018, representing a 17% increase[57] - The company recorded unallocated corporate expenses of $(2,588) million for the three months ended June 30, 2019, compared to $(2,618) million for the same period in 2018[82] - General and administrative expenses were $9,460 in Q2 2019, a slight decrease from $9,743 in Q2 2018[118] - Selling and distribution expenses increased by 25% to $8,736 million in 2019, compared to $6,971 million in 2018[156] Debt and Financing - The company has a $75,000 million credit facility, which includes a $50,000 million revolving loan and a $25,000 million Capex Facility for financing expansion projects[178] - The maximum permitted leverage ratio for the June 30, 2019 reporting period was 3.00 to 1.0, while the actual leverage ratio was 0.4 to 1.0[183] - The actual debt service coverage ratio for the trailing twelve months ended June 30, 2019 was 12.5 to 1.0, exceeding the minimum required ratio of 1.35 to 1.0[185] - The company maintained compliance with all financial covenants and other provisions of its debt agreements as of June 30, 2019[186] Market and Revenue Insights - DynaEnergetics' revenue from the United States was $75,323 million for the three months ended June 30, 2019, compared to $44,164 million in the same period of 2018, reflecting a 70.7% increase[83] - NobelClad's revenue from the United States for the three months ended June 30, 2019, was $12,304 million, compared to $6,775 million in the same period of 2018, showing an 81.5% increase[85]