DMC (US:BOOM)2025-11-04 21:10Financial Performance - Total net sales for Q3 2025 were $151.532 million, a slight decrease of 0.6% compared to $152.429 million in Q3 2024[14] - Gross profit for Q3 2025 increased to $32.829 million, up 8.9% from $30.105 million in Q3 2024[14] - Operating income for the nine months ended September 30, 2025, was $11.020 million, a significant improvement from an operating loss of $130.562 million in the same period of 2024[14] - Net loss attributable to DMC Global Inc. stockholders for Q3 2025 was $3.081 million, compared to a net loss of $101.323 million in Q3 2024[14] - For the nine months ended September 30, 2025, the net income was $114,000 compared to a net loss of $150,804,000 in the same period of 2024[22] - The company reported a significant increase in inventories, with a change of $14,495,000 for the nine months ended September 30, 2025, compared to $1,357,000 in the previous year[22] - The company recorded a bad debt expense of $1,025,000 for the nine months ended September 30, 2025, compared to $4,979,000 in the same period of 2024[27] - The company reported stock-based compensation of $18 million for the three months ended September 30, 2025, compared to $315 million in the same period of 2024[90][91] Assets and Liabilities - Cash and cash equivalents increased to $26.412 million as of September 30, 2025, from $14.289 million at the end of 2024[12] - Total assets decreased to $644.143 million as of September 30, 2025, down from $671.337 million at the end of 2024[12] - Current liabilities decreased to $103.771 million as of September 30, 2025, compared to $114.102 million at the end of 2024[12] - The total stockholders' equity as of September 30, 2025, was $252,974,000, a decrease from $410,295,000 as of December 31, 2023[19] - The company had a redeemable noncontrolling interest of $187,080,000 as of September 30, 2025[19] - The total paid-in capital as of September 30, 2025, was $306,461,000, reflecting a slight increase from $306,951,000 as of March 31, 2025[19] - The carrying value of money market funds held to satisfy future deferred compensation obligations was $685 thousand as of September 30, 2025[54] Segment Performance - The Company’s business is organized into three segments: Arcadia Products, DynaEnergetics, and NobelClad, each with distinct products and customer bases[89] - DynaEnergetics accounted for $68.946 million in net sales for the three months ended September 30, 2025, a decrease from $69.679 million in the same period of 2024[94] - NobelClad reported net sales of $20.925 million for the three months ended September 30, 2025, down from $24.932 million in the same period of 2024[95] - For the three months ended September 30, 2025, net sales for Arcadia Products increased by 7% to $61,661, driven by higher customer pricing in response to raw material cost increases[163] Expenses and Costs - General and administrative expenses increased by $933 to $15,282, primarily due to a remediation liability recognition and higher outside services costs[131] - Selling and distribution expenses decreased by $3,188 to $10,668, driven by lower bad debt expenses and reduced selling costs[132] - Total cost of products sold for the nine months ended September 30, 2025, was $355.337 million, compared to $371.359 million in the same period of 2024, indicating cost control efforts[90][91] - The company had a total depreciation expense of $11,100,000 for the nine months ended September 30, 2025, compared to $10,294,000 in 2024[22] Cash Flow and Financing - Net cash provided by operating activities increased to $38,340,000 from $34,785,000 year-over-year[22] - The net cash used in financing activities decreased to $22,149,000 from $53,424,000 in the previous year[22] - The net debt position improved to $30,122 at September 30, 2025, down from $56,529 at December 31, 2024, due to net credit facility repayments of $14,521[203] - The actual debt service coverage ratio for the trailing twelve months ended September 30, 2025, was 4.15 to 1.0, exceeding the minimum required ratio of 1.25 to 1.0[210] Market Conditions and Outlook - The Company anticipates that low energy prices and tariff impacts could adversely affect sales and profitability in the upcoming periods[122] - The effective tax rate varies due to differences in tax rates across jurisdictions, with foreign tax rates ranging from 20% to 32%[82]