DMC (US:BOOM)2022-08-03 16:00Financial Performance - Net sales for the three months ended June 30, 2022, were $65,438,000, compared to $121,096,000 for the same period in 2021, representing a decrease of approximately 46.0%[14] - Gross profit for the six months ended June 30, 2022, was $89,005,000, a decrease from $29,884,000 in the same period of 2021, indicating a significant increase in profitability[14] - Net income attributable to DMC Global Inc. stockholders for the six months ended June 30, 2022, was $2,264,000, compared to $2,156,000 for the same period in 2021, showing a growth of approximately 5.0%[14] - The company reported a basic net income per share of $0.10 for the three months ended June 30, 2021, while for the same period in 2022, it reported a loss of $0.26 per share[14] - Comprehensive income attributable to DMC Global Inc. stockholders for the three months ended June 30, 2022, was $2,965,000, compared to $2,197,000 for the same period in 2021, an increase of approximately 35.0%[16] - Net income for the six months ended June 30, 2022, was $2,179,000, compared to $2,156,000 for the same period in 2021, reflecting a slight increase[23] - The company recorded a net income of $5,552,000 for the quarter ending June 30, 2022, compared to a net income of $2,264,000 for the quarter ending December 31, 2021[20] - Net income attributable to DMC Global Inc. stockholders for the three months ended June 30, 2022, was $5,552,000, compared to $1,724,000 for the same period in 2021, representing a significant increase[47] - Basic and diluted EPS for the three months ended June 30, 2022, was $0.20, up from $0.10 in the same period of 2021[47] Assets and Liabilities - Total current assets increased to $268,728,000 as of June 30, 2022, compared to $239,196,000 as of December 31, 2021, reflecting a growth of approximately 12.4%[12] - Total liabilities rose to $311,304,000 as of June 30, 2022, compared to $306,691,000 as of December 31, 2021, marking an increase of about 1.0%[12] - Cash and cash equivalents decreased to $11,819,000 as of June 30, 2022, from $30,810,000 as of December 31, 2021, indicating a decline of approximately 61.6%[12] - The total stockholders' equity decreased to $355,055,000 as of June 30, 2022, from $360,525,000 as of December 31, 2021, representing a decline of about 1.5%[12] - As of June 30, 2022, DMC Global Inc. reported total stockholders' equity of $355,055,000, an increase from $351,495,000 as of March 31, 2022[18] - The company had treasury stock at cost amounting to $(597,758,000) as of June 30, 2022, indicating a significant investment in its own shares[20] - Total assets acquired from Arcadia amounted to $515,262,000, with liabilities assumed totaling $31,312,000[66] Cash Flow and Investments - Net cash provided by operating activities was $2,536,000 for the six months ended June 30, 2022, compared to a cash outflow of $6,021,000 in 2021, indicating improved operational efficiency[23] - Cash used in investing activities was $5,679,000 for the six months ended June 30, 2022, a significant reduction from $121,433,000 in 2021, reflecting a shift in investment strategy[23] - The company made repayments of $7,500,000 on term loans during the period, indicating a focus on reducing debt[23] Acquisitions and Growth Strategy - The company completed the acquisition of a 60% controlling interest in Arcadia Products, LLC, for total consideration of $290,370,000, which included $261,000,000 in cash and 551,458 shares of common stock[62][66] - The acquisition of Arcadia is part of the company's strategy to build a diversified portfolio of industry-leading businesses with differentiated products and services[64] - DynaEnergetics plans additional price increases in the second half of 2022 to offset rising labor and material costs[153] - Arcadia is focusing on increasing manufacturing throughput and expects new finishing capacity to be operational next year[155] Revenue and Sales Performance - For the three months ended June 30, 2022, net sales were $165,831, a significant increase from $65,438 in the same period of 2021, representing a growth of approximately 153.5%[112] - Arcadia segment reported net sales of $76,462 for the three months ended June 30, 2022, while DynaEnergetics and NobelClad reported $67,517 and $21,852 respectively[112] - DynaEnergetics' net sales for the six months ended June 30, 2022, were $116,404, up from $80,440 in the same period of 2021, reflecting a growth of approximately 44.7%[116] - Consolidated sales for the second quarter of 2022 were $165,831, with a 37% increase to $89,369 when excluding the Arcadia acquisition compared to the second quarter of 2021[143] Expenses and Profitability - Consolidated gross profit was $52,099 in Q2 2022, representing a gross profit percentage of 31.4%, up from 25.9% in Q2 2021, primarily due to the acquisition of Arcadia[147][164] - Consolidated selling, general and administrative expenses increased to $29,361 in Q2 2022 from $14,015 in Q2 2021, with Arcadia contributing $11,372 to this increase[148] - General and administrative expenses increased by $20,134 for the six months ended June 30, 2022, compared to the same period in 2021, with the Arcadia acquisition contributing $13,555 to this increase[180] - Interest expense, net for the six months ended June 30, 2022, was $2,287, significantly higher than $216 in the same period in 2021, due to a $150,000 credit facility related to the Arcadia acquisition[184] Market and Economic Conditions - Future sales to Russia have been indefinitely suspended due to the ongoing conflict in Ukraine[118] - The company anticipates filling most backlog orders within the following 12 months, indicating a positive outlook for revenue generation[139] - The effective tax rate varies due to differences in foreign tax rates, which range from 20% to 33%[105] - The company continues to permanently reinvest the earnings of its international subsidiaries, avoiding U.S. income taxes on undistributed foreign income[109]