DMC (US:BOOM)2019-10-25 00:33Financial Performance - Net sales for Q3 2019 reached $100,094,000, a 14% increase from $87,883,000 in Q3 2018[18] - Gross profit for Q3 2019 was $36,224,000, up from $29,728,000 in Q3 2018, representing a 22% increase[18] - Operating income for the nine months ended September 30, 2019, was $57,926,000, compared to $24,361,000 for the same period in 2018, reflecting a 137% increase[18] - Net income for Q3 2019 was $6,915,000, a 41% increase from $4,910,000 in Q3 2018[18] - Net income for the nine months ended September 30, 2019, was $39,329,000, compared to $15,202,000 for the same period in 2018, representing a 159% increase[25] - Adjusted EBITDA for Q3 2019 was $23,208 million, a 35% increase from $17,176 million in Q3 2018[140] - Adjusted EBITDA for the nine months ended September 30, 2019, increased to $76,234, up 75% from $43,530 in 2018[175] Assets and Liabilities - Total assets increased to $275,815,000 as of September 30, 2019, compared to $240,418,000 as of December 31, 2018[14] - Total liabilities increased slightly to $108,739,000 as of September 30, 2019, from $106,132,000 at the end of 2018[14] - Total stockholders' equity as of September 30, 2019, was $167,076,000, up from $134,286,000 at the end of 2018, indicating a growth of approximately 24%[21] - Cash and cash equivalents at the end of the period were $12,183,000, compared to $11,098,000 at the end of the previous year, showing an increase of approximately 9.8%[25] - As of September 30, 2019, total outstanding borrowings amounted to $28.785 million, down from $42.128 million as of December 31, 2018, showing a reduction of about 32%[69] - The total debt as of September 30, 2019, was $28.135 million, a decrease of approximately 32% from $41.355 million at the end of 2018[69] Dividends - The company declared dividends of $0.125 per common share in Q3 2019, compared to $0.02 in Q3 2018[18] - The company declared dividends totaling $896,000 for the nine months ended September 30, 2019, slightly higher than $891,000 in the same period of 2018[25] - The company declared an annual cash dividend of $0.50 per share, increased from $0.08 per share, with a quarterly cash dividend of $0.125 per share paid on October 15, 2019[202] Segment Performance - DynaEnergetics segment net sales for the nine months ended September 30, 2019, reached $245.820 million, up from $174.270 million in 2018, indicating a growth of about 41%[85] - NobelClad segment net sales for the nine months ended September 30, 2019, were $65.363 million, compared to $61.841 million in 2018, reflecting an increase of approximately 6%[85] - DynaEnergetics reported operating income of $14,911 million for 2019, up from $9,860 million in 2018, representing a 51.9% increase[87] - NobelClad's operating income for 2019 was $2,219 million, compared to $2,099 million in 2018, reflecting a 5.7% growth[87] - Total segment operating income increased to $17,130 million in 2019 from $11,959 million in 2018, a rise of 43.1%[87] Expenses - The company reported depreciation expenses of $6,178,000 for the nine months ended September 30, 2019, compared to $4,799,000 in the same period of 2018, reflecting a 29% increase[25] - Stock-based compensation for the nine months ended September 30, 2019, was $3,908,000, up from $2,662,000 in the previous year, marking a 47% increase[25] - General and administrative expenses decreased by 8% to $13,360 in the nine months ended September 30, 2019, compared to $14,526 in 2018[167] - Selling and distribution expenses increased by 25% to $13,142 in the nine months ended September 30, 2019, compared to $10,493 in 2018[167] - Restructuring expenses and asset impairments totaled $5,880 in Q3 2019, primarily related to the shutdown of DynaEnergetics' operations in Tyumen, Siberia[124] - Restructuring expenses, net and asset impairments for the nine months ended September 30, 2019, were $5,880, with no such expenses recorded in 2018[175] Cash Flow - Operating cash flow for the nine months ended September 30, 2019, was $35,096,000, significantly higher than $6,545,000 in the prior year[25] - Net cash provided by operating activities was $35,096 million for the nine months ended September 30, 2019, compared to $6,545 million in the same period last year[199] - Net cash flows used in investing activities for the nine months ended September 30, 2019, were $21,119 million, primarily for acquisitions of property and equipment[200] Other Financial Metrics - The income tax provision for Q3 2019 was $5,689 million on pretax income of $12,604 million, reflecting an effective tax rate impacted by non-deductible restructuring expenses[139][154] - The actual debt service coverage ratio for the trailing twelve months ended September 30, 2019, was 9.3 to 1.0, significantly above the minimum required ratio of 1.35 to 1.0[196] - The company accrued $8,000 million in penalties related to anti-dumping duties during the second quarter of 2019[104] Market and Product Developments - DynaEnergetics announced that sales of its DynaStage® systems exceeded one million units, reflecting a transition to Factory-Assembled, Performance-Assured systems[117] - DynaEnergetics introduced new products, including DS Trinity 4.0 and DS NLine, enhancing its product offerings in the perforating systems market[118] - The company experienced increased sales volume due to higher perforating intensity in U.S. well completions and growth in customer demand for advanced perforating systems[160]