DMC (US:BOOM)2025-05-01 20:10Financial Performance - Net sales for Q1 2025 were $159.29 million, a decrease of 4.5% compared to $166.87 million in Q1 2024[14] - Gross profit for Q1 2025 was $41.20 million, down from $42.35 million in Q1 2024, reflecting a gross margin of 25.9%[14] - Operating income for Q1 2025 was $6.51 million, slightly lower than $6.69 million in Q1 2024[14] - Net income attributable to DMC Global Inc. stockholders for Q1 2025 was $0.68 million, a significant decrease from $2.56 million in Q1 2024[14] - The company reported a comprehensive income attributable to DMC Global Inc. stockholders of $1.85 million for Q1 2025, compared to $1.45 million in Q1 2024[15] - Net income for the three months ended March 31, 2025, was $1,863 million, a decrease of 19.7% from $2,319 million in the same period of 2024[19] - Basic and diluted net income per share for Q1 2025 was $0.04, compared to $0.01 in Q1 2024, reflecting a 300% increase[40] - Adjusted EBITDA attributable to DMC Global Inc. decreased by 14% to $14,391 in Q1 2025 from $16,683 in Q1 2024[117] - Net income attributable to DMC Global Inc. fell by 74% to $677 in Q1 2025 compared to $2,563 in Q1 2024[123] Assets and Liabilities - Total current assets increased to $296.91 million as of March 31, 2025, compared to $289.02 million at the end of 2024[12] - Total liabilities decreased to $229.64 million as of March 31, 2025, down from $233.29 million at the end of 2024[12] - Cash and cash equivalents increased to $14.71 million as of March 31, 2025, compared to $14.29 million at the end of 2024[12] - Total debt as of March 31, 2025, was $72,421,000, an increase from $70,818,000 as of December 31, 2024[64] - The net debt position increased to $57,716 as of March 31, 2025, compared to $56,529 at December 31, 2024, due to net borrowings of $1,500[146] Cash Flow - Net cash provided by operating activities decreased to $4,488 million from $13,440 million, reflecting a decline of 66.7% year-over-year[19] - The company reported a net cash used in investing activities of $(3,332) million, compared to a net cash provided of $9,651 million in the same period last year[19] - Net cash flows used in financing activities for Q1 2025 were $135, which included $1,151 in distributions to redeemable noncontrolling interest holders and $484 in treasury stock purchases[159] - In Q1 2024, net cash flows used in financing activities were significantly higher at $34,296, primarily due to $27,500 in net credit facility repayments[160] Sales Performance by Segment - For the three months ended March 31, 2025, total net sales were $159,290, with Arcadia Products contributing $65,580, DynaEnergetics $65,551, and NobelClad $28,159[82] - DynaEnergetics reported total sales of $65,551 for the three months ended March 31, 2025, down from $78,122 in the same period of 2024, representing a decrease of approximately 16%[85] - NobelClad's total sales increased to $28,159 in the first quarter of 2025, compared to $26,822 in the first quarter of 2024, reflecting an increase of about 5%[86] - Arcadia Products achieved sales of $65,580 in Q1 2025, a 6% increase compared to the same period in 2024, driven by higher sales volumes for longer-cycle commercial projects[107] Expenses and Costs - The company incurred restructuring expenses of $0.33 million in Q1 2025, indicating ongoing strategic adjustments[14] - General and administrative expenses increased by 4% to $16,674 in Q1 2025, primarily due to higher compensation costs[117] - Selling and distribution expenses increased by $350, primarily due to a $235 increase in bad debt expense and $152 in incentive compensation costs for the three months ended March 31, 2025[132] - The company recorded total operating lease expense of $3,132,000 for Q1 2025, down from $3,348,000 in Q1 2024[63] Strategic Initiatives and Risks - The company incurred strategic review expenses of $1,298 in Q1 2025, primarily due to professional service fees and employee retention compensation[96] - The company is exposed to foreign currency exchange risk and uses forward contracts to mitigate these risks, with net notional amounts of forward contracts held at $13,469 as of March 31, 2025[89] - The company announced a tariff surcharge of 7% to 9% on all perforating systems sold in North America in response to increased raw material costs due to tariffs[169] - There were no material changes in market risk related to foreign currency exchange rates and interest rates compared to the previous year[163] Compliance and Financial Ratios - The Company maintained a minimum debt service coverage ratio of 1.25 to 1.0 as per the credit facility[69] - As of March 31, 2025, the Company was in compliance with all financial covenants and provisions of its debt agreements[70] - The actual leverage ratio as of March 31, 2025 was 1.38 to 1.0, well below the maximum permitted ratio of 3.0 to 1.0[151] - The debt service coverage ratio for the trailing twelve months ended March 31, 2025 was 3.43 to 1.0, exceeding the minimum required ratio of 1.25 to 1.0[152]