DMC (US:BOOM)2025-02-24 21:05Financial Performance - Fourth quarter sales were $152.4 million, exceeding the forecasted range of $138 million to $148 million, and down 12% year-over-year[3] - Adjusted EBITDA attributable to DMC was $10.4 million, significantly above the guidance of $5 million to $8 million[3] - DMC Global reported net sales of $152.374 million for the three months ended December 31, 2024, a decrease of 12% year-on-year from $174.036 million[28] - For the twelve months ended December 31, 2024, net sales totaled $642.851 million, an 11% decline compared to $719.188 million in 2023[30] - The company incurred a net loss attributable to DMC Global Inc. stockholders of $94.452 million for the twelve months ended December 31, 2024, compared to a net income of $26.259 million in 2023[30] - DMC Global's operating loss for the three months ended December 31, 2024, was $696,000, a significant improvement from an operating loss of $148.935 million in the previous quarter[28] - The company reported a goodwill impairment of $141.725 million for the twelve months ended December 31, 2024, marking a significant impact on overall financial performance[30] - The company experienced a year-on-year decline in net income, reporting a loss of $151,960,000 for the twelve months ended December 31, 2024, compared to a profit of $34,759,000 in the previous year, representing a 537% decrease[44] Sales and Revenue Trends - Arcadia's sales increased 4% sequentially but decreased 11% compared to Q4 2023, primarily due to weak demand from the luxury home market[4] - DynaEnergetics experienced a 9% sequential decline in sales and a 15% year-over-year decline, attributed to lower pricing in North America and seasonal slowdowns[6] - NobelClad's fourth quarter sales rose 14% sequentially but fell 8% year-over-year, with an order backlog of $49 million[8] - DynaEnergetics reported net sales of $63,675 million for the three months ended December 31, 2024, a 15% decrease year-on-year[34] - NobelClad achieved net sales of $28,427 million for the three months ended December 31, 2024, with a year-on-year decrease of 8%[35] - For the twelve months ended December 31, 2024, net sales totaled $249,763 million, representing a year-on-year decline of 16%[32] EBITDA and Profitability - The adjusted EBITDA margin for the full year 2024 was 9.7%, down from 16.1% in 2023[18] - Adjusted EBITDA for the three months ended December 31, 2024, was $11,876,000, a 69% increase from $7,015,000 in the previous quarter[43] - Adjusted EBITDA attributable to DMC Global Inc. for the three months ended December 31, 2024, was $2,243 million, a decrease of 59% compared to the previous year[32] - Adjusted EBITDA for DynaEnergetics was $5,098,000 in Q4 2024, a significant increase from $414,000 in Q3 2024, but a decrease of 45% from $9,286,000 in Q4 2023[47] - Adjusted EBITDA for NobelClad was $5,848,000 in Q4 2024, up 1% from $5,776,000 in Q3 2024, but down 23% from $7,608,000 in Q4 2023[48] Future Outlook and Strategic Initiatives - First quarter sales are expected to be in the range of $146 million to $154 million, with adjusted EBITDA projected between $8 million and $11 million[11] - The company aims for margin expansion, EBITDA growth, and debt reduction, with a focus on stabilizing operations in Arcadia and DynaEnergetics[10] - The company expects future periods to benefit from internal initiatives and anticipates sales growth from Arcadia's "back-to-basics" approach[26] - DynaEnergetics is expected to complete phase two of its automation initiative in the second quarter of 2025, which is anticipated to enhance operational efficiency[26] - DMC Global aims to expand margins, grow EBITDA, and reduce debt in the upcoming periods[26] Expenses and Impairments - General and administrative expenses decreased by 19% year-on-year to $61.401 million for the twelve months ended December 31, 2024[30] - General and administrative expenses for the three months ended December 31, 2024, increased by 14% sequentially to $8,237 million[32] - The company reported restructuring expenses and asset impairments of $645,000 for the twelve months ended December 31, 2024, indicating ongoing adjustments to improve operational efficiency[45] - Stock-based compensation expenses for the twelve months ended December 31, 2024, were $6,530,000, a decrease of 35% from $10,115,000 in the previous year[44] - The total interest expense for the twelve months ended December 31, 2024, was $8,664,000, a 9% decrease from $9,516,000 in the previous year[44]