DMC Global Reports Third Quarter Financial Results
DMC Global (NASDAQ: BOOM) reported challenging third quarter results with sales of $152.4 million, down 11% both sequentially and year-over-year. The company recorded a net loss of $159.4 million, largely due to a $141.7 million non-cash goodwill impairment charge at Arcadia Products. Adjusted EBITDA attributable to DMC was $5.7 million, declining 71% sequentially and 77% year-over-year.
Weakness in U.S. construction and energy services industries negatively impacted performance. For Q4 2024, DMC expects consolidated sales between $138-148 million and adjusted EBITDA of $5-8 million, reflecting challenging market conditions and high interest rates affecting luxury home sales.
DMC Global (NASDAQ: BOOM) ha riportato risultati del terzo trimestre difficili, con vendite di 152,4 milioni di dollari, in calo dell'11% sia rispetto al trimestre precedente che rispetto all'anno scorso. L'azienda ha registrato una perdita netta di 159,4 milioni di dollari, principalmente a causa di una carica non monetaria per impairment di goodwill di 141,7 milioni di dollari presso Arcadia Products. L'EBITDA rettificato attribuibile a DMC è stato di 5,7 milioni di dollari, in calo del 71% rispetto al trimestre precedente e del 77% rispetto all'anno scorso.
La debolezza nei settori delle costruzioni e dei servizi energetici negli Stati Uniti ha impattato negativamente le performance. Per il quarto trimestre del 2024, DMC prevede vendite consolidate tra 138-148 milioni di dollari e un EBITDA rettificato di 5-8 milioni di dollari, riflettendo condizioni di mercato difficili e tassi di interesse elevati che influenzano le vendite di case di lusso.
DMC Global (NASDAQ: BOOM) reportó resultados desafiantes en el tercer trimestre con ventas de 152.4 millones de dólares, una disminución del 11% tanto en comparación con el trimestre anterior como con el año pasado. La compañía registró una pérdida neta de 159.4 millones de dólares, principalmente debido a un cargo por deterioro de goodwill no monetario de 141.7 millones de dólares en Arcadia Products. El EBITDA ajustado atribuible a DMC fue de 5.7 millones de dólares, una caída del 71% en comparación con el trimestre anterior y del 77% en comparación con el año anterior.
La debilidad en las industrias de la construcción y los servicios energéticos en los EE. UU. impactó negativamente el desempeño. Para el cuarto trimestre de 2024, DMC espera ventas consolidadas entre 138-148 millones de dólares y un EBITDA ajustado de 5-8 millones de dólares, reflejando condiciones difíciles del mercado y altas tasas de interés que afectan las ventas de viviendas de lujo.
DMC Global (NASDAQ: BOOM)는 매출 1억 5,240만 달러로 3분기 부진한 실적을 보고했으며, 이는 전 분기 대비와 전년 대비 각각 11% 감소한 수치입니다. 회사는 Arcadia Products에서 1억 4,170만 달러의 비현금 유 goodwill 손상 비용으로 인해 1억 5,940만 달러의 순손실을 기록했습니다. DMC에 할당된 조정 EBITDA는 570만 달러로, 전 분기 대비 71% 및 전년 대비 77% 감소했습니다.
미국 건설 및 에너지 서비스 산업의 약세가 성과에 부정적인 영향을 미쳤습니다. 2024년 4분기 동안 DMC는 통합 매출이 1억 3,800만 - 1억 4,800만 달러에 이를 것으로 예상하며, 조정 EBITDA는 500만 - 800만 달러에 이를 것으로 예상하여, 고급 주택 판매에 영향을 미치는 높은 금리와 어려운 시장 조건을 반영합니다.
DMC Global (NASDAQ: BOOM) a annoncé des résultats difficiles pour le troisième trimestre avec des ventes de 152,4 millions de dollars, en baisse de 11% à la fois par rapport au trimestre précédent et d'une année sur l'autre. L'entreprise a enregistré une perte nette de 159,4 millions de dollars, en grande partie en raison d'une charge de dépréciation de goodwill non monétaire de 141,7 millions de dollars chez Arcadia Products. L'EBITDA ajusté attribuable à DMC était de 5,7 millions de dollars, en baisse de 71% par rapport au trimestre précédent et de 77% par rapport à l'année précédente.
La faiblesse des secteurs de la construction et des services énergétiques aux États-Unis a eu un impact négatif sur la performance. Pour le quatrième trimestre 2024, DMC s'attend à des ventes consolidées entre 138-148 millions de dollars et un EBITDA ajusté de 5-8 millions de dollars, reflétant des conditions de marché difficiles et des taux d'intérêt élevés qui affectent les ventes de maisons de luxe.
DMC Global (NASDAQ: BOOM) berichtete über herausfordernde Ergebnisse im dritten Quartal mit einem Umsatz von 152,4 Millionen Dollar, was einem Rückgang von 11% sowohl im Vergleich zum Vorquartal als auch im Jahresvergleich entspricht. Das Unternehmen verzeichnete einen Nettoverlust von 159,4 Millionen Dollar, hauptsächlich aufgrund eines nicht zahlungswirksamen Goodwill-Abschreibungsaufwands in Höhe von 141,7 Millionen Dollar bei Arcadia Products. Das adjustierte EBITDA, das DMC zuzurechnen ist, betrug 5,7 Millionen Dollar, was einem Rückgang von 71% im Quartalsvergleich und 77% im Jahresvergleich entspricht.
Schwächen in den US-Bau- und Energieindustrien haben die Leistung negativ beeinflusst. Für das vierte Quartal 2024 erwartet DMC konsolidierte Verkäufe zwischen 138-148 Millionen Dollar und ein adjustiertes EBITDA von 5-8 Millionen Dollar, was die herausfordernden Marktbedingungen und die hohen Zinssätze, die den Verkauf von Luxusimmobilien beeinträchtigen, widerspiegelt.
- NobelClad segment maintained solid performance with 23.2% adjusted EBITDA margin
- Implementation of automated assembly systems at DynaEnergetics expected to improve profit margins in 2025
- New improvement initiatives at Arcadia under new interim president to strengthen operations
- Net loss of $159.4 million, including $141.7 million goodwill impairment charge
- Q3 sales declined 11% both sequentially and year-over-year to $152.4 million
- Adjusted EBITDA dropped 77% year-over-year to $5.7 million
- Expected sequential decline in Q4 2024 consolidated sales to $138-148 million
- DynaEnergetics segment saw 95% sequential decline in adjusted EBITDA
- Arcadia segment experienced 17% sequential sales decline due to high interest rates
Insights
The Q3 results reveal significant challenges across DMC Global's operations. The company reported a substantial
Key concerns include:
- Arcadia's exposure to high interest rates impacting luxury home and commercial construction
- DynaEnergetics' margin compression from lower U.S. well completions and unfavorable customer mix
- Q4 guidance suggests continued pressure with expected sales of
$138-148 million and adjusted EBITDA of$5-8 million
The bright spot is NobelClad, maintaining solid
The deteriorating market conditions in both construction and energy sectors are creating a perfect storm for DMC Global. The high interest rate environment has particularly impacted Arcadia's high-end residential segment, while DynaEnergetics faces a double whammy of reduced well completions and pricing pressures.
The sequential decline in adjusted EBITDA attributable to DMC from
- Third quarter sales were
$152.4 million , down11% sequentially and year-over-year - Net loss, inclusive of a
$141.7 million non-cash goodwill impairment charge at Arcadia Products, was$159.4 million , while net loss attributable to DMC, inclusive of the goodwill impairment charge, was$101.3 million - Adjusted net loss attributable to DMC* was
$9.6 million , or$(0.49) per diluted share - Adjusted EBITDA* attributable to DMC was
$5.7 million , down71% sequentially and down77% vs. Q3 2023 - Total adjusted EBITDA, inclusive of non-controlling interest (NCI), was
$7.0 million , or5% of sales
BROOMFIELD, Colo., Nov. 04, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its third quarter ended September 30, 2024. As the Company recently announced, weakness in the U.S. construction and energy services industries negatively affected the performance of DMC’s two largest businesses.
At Arcadia, DMC’s architectural building products business, persistent high interest rates have impacted sales to the high-end luxury home market and have resulted in continued soft commercial construction activity. Under the direction of a new interim business president, Arcadia is executing a series of internal initiatives designed to strengthen sourcing and supply chain functions; improve sales, inventory and operations planning processes; and more effectively leverage Arcadia’s enterprise resource planning system. The business is also reviewing certain product lines that have not consistently met profitability targets.
Arcadia’s improvement initiatives are being led by interim president Chris Scocos, who joined the business in September 2024 with a 25-year track record of implementing lean manufacturing, process improvement and operational excellence programs for industrial manufacturing businesses across a broad range of industries, including building materials and industrial manufactured products.
Results at DynaEnergetics, DMC’s energy products business, reflect a further market-driven decline in U.S. well completions, which were down
NobelClad, DMC’s composite metals business, delivered another solid quarter and achieved adjusted EBITDA margins of more than
Guidance
Management has decided to limit quarterly financial guidance to consolidated sales and adjusted EBITDA during the current period of volatility and uncertainty in its energy and construction markets. For the fourth quarter, consolidated sales are expected to be in a range of
Summary Third Quarter Results
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 152,429 | $ | 171,179 | $ | 172,147 | (11 | )% | (11 | )% | |||||||||
| Gross profit percentage | 19.8 | % | 27.1 | % | 30.6 | % | |||||||||||||
| SG&A* | $ | 28,205 | $ | 27,122 | $ | 28,713 | 4 | % | (2 | )% | |||||||||
| Net (loss) income | $ | (159,416 | ) | $ | 6,293 | $ | 11,525 | (2,633 | )% | (1,483 | )% | ||||||||
| Net (loss) income attributable to DMC | $ | (101,323 | ) | $ | 4,012 | $ | 8,883 | (2,625 | )% | (1,241 | )% | ||||||||
| Diluted net (loss) income per share attributable to DMC | $ | (8.27 | ) | $ | 0.24 | $ | 0.38 | (3,546 | )% | (2,276 | )% | ||||||||
| Adjusted net (loss) income attributable to DMC | $ | (9,615 | ) | $ | 5,675 | $ | 9,861 | (269 | )% | (198 | )% | ||||||||
| Adjusted diluted net (loss) income per share | $ | (0.49 | ) | $ | 0.29 | $ | 0.50 | (269 | )% | (198 | )% | ||||||||
| Adjusted EBITDA attributable to DMC | $ | 5,671 | $ | 19,420 | $ | 24,607 | (71 | )% | (77 | )% | |||||||||
| Adjusted EBITDA before NCI allocation | $ | 7,015 | $ | 24,398 | $ | 29,981 | (71 | )% | (77 | )% | |||||||||
| Adjusted EBITDA before NCI allocation margin | 4.6 | % | 14.3 | % | 17.4 | % | |||||||||||||
*SG&A in the three months ended September 30, 2023 included
Arcadia
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 57,818 | $ | 69,748 | $ | 71,455 | (17 | )% | (19 | )% | |||||||||
| Adjusted EBITDA attributable to DMC | $ | 2,014 | $ | 7,467 | $ | 8,060 | (73 | )% | (75 | )% | |||||||||
| Adjusted EBITDA before NCI allocation | $ | 3,358 | $ | 12,445 | $ | 13,434 | (73 | )% | (75 | )% | |||||||||
| Adjusted EBITDA before NCI allocation margin | 5.8 | % | 17.8 | % | 18.8 | % | |||||||||||||
DynaEnergetics
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 69,679 | $ | 76,210 | $ | 72,998 | (9 | )% | (5 | )% | |||||||||
| Adjusted EBITDA | $ | 414 | $ | 8,752 | $ | 12,568 | (95 | )% | (97 | )% | |||||||||
| Adjusted EBITDA margin | 0.6 | % | 11.5 | % | 17.2 | % | |||||||||||||
- Sales and margin declines reflect softer well-completion activity and continued pricing pressure in North America
- Third quarter 2024 adjusted EBITDA includes approximately
$5 million in inventory and bad debt charges
NobelClad
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 24,932 | $ | 25,221 | $ | 27,694 | (1 | )% | (10 | )% | |||||||||
| Adjusted EBITDA | $ | 5,776 | $ | 5,722 | $ | 6,384 | 1 | % | (10 | )% | |||||||||
| Adjusted EBITDA margin | 23.2 | % | 22.7 | % | 23.1 | % | |||||||||||||
- Backlog at the end of the third quarter was
$59.0 million versus$60.8 million at the end of the 2023 third quarter - Rolling 12-month bookings were
$103.9 million versus$108.4 million at the end of the prior-year third quarter; and the book-to-bill ratio was 0.96.
Conference call information
The conference call will begin today at 5 p.m. Eastern (3 p.m. Mountain) and will be accessible by dialing 877-407-5783 (or +1 201-689-8782 for international callers).
Investors are invited to listen to the webcast live via the Internet at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=kSCFTQNY
Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. The webcast also will be available on the Investor page of DMC’s website, located at: ir.dmcglobal.com. A replay of the webcast will be available for six months.
*Use of Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (GAAP), the Company also discloses certain non-GAAP financial measures that we use in operational and financial decision making. Non-GAAP financial measures include the following:
- EBITDA: defined as net income (loss) plus net interest, taxes, depreciation and amortization.
- Adjusted EBITDA: excludes from EBITDA stock-based compensation, restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance (as further described in the tables below).
- Adjusted EBITDA attributable to DMC Global Inc.: excludes the Adjusted EBITDA attributable to the
40% redeemable noncontrolling interest in Arcadia Products. - Adjusted EBITDA for DMC business segments: defined as operating income (loss) plus depreciation, amortization, allocated stock-based compensation (if applicable), restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing operating performance.
- Adjusted net income (loss): defined as net income (loss) attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
- Adjusted diluted earnings per share: defined as diluted earnings per share attributable to DMC Global Inc. stockholders (exclusive of adjustment of redeemable noncontrolling interest) plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
- Net debt: defined as total debt less total cash, cash equivalents and marketable securities.
- Free-cash flow: defined as cash flows provided by (used in) operating activities less net acquisitions of property, plant and equipment.
Management believes providing these additional financial measures is useful to investors in understanding the Company’s operating performance, including the effects of restructuring, impairment, and other nonrecurring charges, as well as its liquidity. Management typically monitors the business utilizing the above non-GAAP measures, in addition to GAAP results, to understand and compare operating results across accounting periods, and certain management incentive awards are based, in part, on these measures. The presence of non-GAAP financial measures in this report is not intended to suggest that such measures be considered in isolation or as a substitute for, or as superior to, DMC’s GAAP information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness.
Because not all companies use identical calculations, DMC’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the company’s performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company’s capital structure on its performance.
DMC is unable to reconcile its expected fourth quarter adjusted EBITDA attributable to DMC to the most directly comparable projected GAAP financial measure because certain information necessary to calculate such measure on a GAAP basis is unavailable or dependent on the timing of future events outside of DMC’s control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, DMC is unable to provide a reconciliation for expected adjusted EBITDA attributable to DMC without unreasonable efforts.
About DMC Global Inc.
DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC’s businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more information, visit: http://www.dmcglobal.com.
Safe Harbor Language
Except for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including fourth quarter 2024 guidance on sales and adjusted EBITDA; our expectations that automation initiatives and product enhancements at DynaEnergetics will strengthen its EBITDA margins beginning next year; that improvement initiatives at Arcadia will strengthen operations; and that large order opportunities and demand for NobelClad’s Cylindra™ product line will offset a recent slowdown in repair and maintenance work. Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and the ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; the timely completion of contracts; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics’ product, technology, and margin enhancement initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; consolidation among DynaEnergetics’ customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; the cyclicality of our business; competitive factors; the timing and size of expenditures; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; our ability to attract and retain key personnel; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions; inflation; supply chain delays and disruptions; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; the potential effects of activist stockholder actions and actions that we may take to discourage takeover attempts, as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2023, and our quarterly reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024. We do not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
| DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in Thousands, Except Share and Per Share Data) (unaudited) | |||||||||||||||||||
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| NET SALES | $ | 152,429 | $ | 171,179 | $ | 172,147 | (11 | )% | (11 | )% | |||||||||
| COST OF PRODUCTS SOLD | 122,324 | 124,766 | 119,550 | (2 | )% | 2 | % | ||||||||||||
| Gross profit | 30,105 | 46,413 | 52,597 | (35 | )% | (43 | )% | ||||||||||||
| Gross profit percentage | 19.8 | % | 27.1 | % | 30.6 | % | |||||||||||||
| COSTS AND EXPENSES: | |||||||||||||||||||
| General and administrative expenses | 14,349 | 15,623 | 16,259 | (8 | )% | (12 | )% | ||||||||||||
| Selling and distribution expenses | 13,856 | 11,499 | 12,454 | 20 | % | 11 | % | ||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,307 | 5,667 | (1 | )% | (7 | )% | ||||||||||||
| Goodwill impairment charge | 141,725 | — | — | 100 | % | 100 | % | ||||||||||||
| Strategic review expenses | 1,763 | 2,020 | — | (13 | )% | 100 | % | ||||||||||||
| Restructuring expenses and asset impairments | 2,069 | 279 | 515 | 642 | % | 302 | % | ||||||||||||
| Total costs and expenses | 179,040 | 34,728 | 34,895 | 416 | % | 413 | % | ||||||||||||
| OPERATING (LOSS) INCOME | (148,935 | ) | 11,685 | 17,702 | (1,375 | )% | (941 | )% | |||||||||||
| OTHER EXPENSE: | |||||||||||||||||||
| Other (expense) income, net | (520 | ) | (284 | ) | 302 | 83 | % | 272 | % | ||||||||||
| Interest expense, net | (2,113 | ) | (2,316 | ) | (2,392 | ) | (9 | )% | (12 | )% | |||||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (151,568 | ) | 9,085 | 15,612 | (1,768 | )% | (1,071 | )% | |||||||||||
| INCOME TAX PROVISION | 7,848 | 2,792 | 4,087 | 181 | % | 92 | % | ||||||||||||
| NET (LOSS) INCOME | (159,416 | ) | 6,293 | 11,525 | (2,633 | )% | (1,483 | )% | |||||||||||
| Less: Net (loss) income attributable to redeemable noncontrolling interest | (58,093 | ) | 2,281 | 2,642 | (2,647 | )% | (2,299 | )% | |||||||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | $ | (101,323 | ) | $ | 4,012 | $ | 8,883 | (2,625 | )% | (1,241 | )% | ||||||||
| NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | |||||||||||||||||||
| Basic | $ | (8.27 | ) | $ | 0.24 | $ | 0.38 | (3,546 | )% | (2,276 | )% | ||||||||
| Diluted | $ | (8.27 | ) | $ | 0.24 | $ | 0.38 | (3,546 | )% | (2,276 | )% | ||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||||||||||
| Basic | 19,706,587 | 19,659,908 | 19,543,251 | — | % | 1 | % | ||||||||||||
| Diluted | 19,706,587 | 19,671,169 | 19,596,575 | — | % | 1 | % | ||||||||||||
Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
| Three months ended | |||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | |||||||||
| Net (loss) income attributable to DMC Global Inc. stockholders | $ | (101,323 | ) | $ | 4,012 | $ | 8,883 | ||||
| Adjustment of redeemable noncontrolling interest | (61,687 | ) | 793 | (1,263 | ) | ||||||
| Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest | $ | (163,010 | ) | $ | 4,805 | $ | 7,620 | ||||
| DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in Thousands, Except Share and Per Share Data) (unaudited) | |||||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| NET SALES | $ | 490,477 | $ | 545,152 | (10 | )% | |||||
| COST OF PRODUCTS SOLD | 371,607 | 378,454 | (2 | )% | |||||||
| Gross profit | 118,870 | 166,698 | (29 | )% | |||||||
| Gross profit percentage | 24.2 | % | 30.6 | % | |||||||
| COSTS AND EXPENSES: | |||||||||||
| General and administrative expenses | 45,952 | 60,285 | (24 | )% | |||||||
| Selling and distribution expenses | 37,578 | 36,978 | 2 | % | |||||||
| Amortization of purchased intangible assets | 15,877 | 17,001 | (7 | )% | |||||||
| Goodwill impairment | 141,725 | — | 100 | % | |||||||
| Strategic review expenses | 5,952 | — | 100 | % | |||||||
| Restructuring expenses and asset impairments | 2,348 | 515 | 356 | % | |||||||
| Total costs and expenses | 249,432 | 114,779 | 117 | % | |||||||
| OPERATING (LOSS) INCOME | (130,562 | ) | 51,919 | (351 | )% | ||||||
| OTHER EXPENSE: | |||||||||||
| Other expense, net | (1,213 | ) | (337 | ) | 260 | % | |||||
| Interest expense, net | (6,746 | ) | (7,205 | ) | (6 | )% | |||||
| (LOSS) INCOME BEFORE INCOME TAXES | (138,521 | ) | 44,377 | (412 | )% | ||||||
| INCOME TAX PROVISION | 12,283 | 13,187 | (7 | )% | |||||||
| NET (LOSS) INCOME | (150,804 | ) | 31,190 | (584 | )% | ||||||
| Less: Net (loss) income attributable to redeemable noncontrolling interest | (56,056 | ) | 7,695 | (828 | )% | ||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | $ | (94,748 | ) | $ | 23,495 | (503 | )% | ||||
| NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | |||||||||||
| Basic | $ | (8.04 | ) | $ | 1.07 | (851 | )% | ||||
| Diluted | $ | (8.04 | ) | $ | 1.07 | (851 | )% | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||
| Basic | 19,648,253 | 19,492,212 | 1 | % | |||||||
| Diluted | 19,648,253 | 19,540,978 | 1 | % | |||||||
Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
| Nine months ended | |||||||
| Sep 30, 2024 | Sep 30, 2023 | ||||||
| Net (loss) income attributable to DMC Global Inc. stockholders | $ | (94,748 | ) | $ | 23,495 | ||
| Adjustment of redeemable noncontrolling interest | (63,201 | ) | (2,289 | ) | |||
| Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest | $ | (157,949 | ) | $ | 21,206 | ||
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)
Arcadia
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 57,818 | $ | 69,748 | $ | 71,455 | (17 | )% | (19 | )% | |||||||||
| Gross profit | 13,562 | 23,157 | 23,789 | (41 | )% | (43 | )% | ||||||||||||
| Gross profit percentage | 23.5 | % | 33.2 | % | 33.3 | % | |||||||||||||
| COSTS AND EXPENSES: | |||||||||||||||||||
| General and administrative expenses | 7,223 | 7,765 | 7,413 | (7 | )% | (3 | )% | ||||||||||||
| Selling and distribution expenses | 4,210 | 4,116 | 4,248 | 2 | % | (1 | )% | ||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,278 | 5,652 | — | % | (7 | )% | ||||||||||||
| Goodwill impairment | 141,725 | — | — | 100 | % | 100 | % | ||||||||||||
| Restructuring expenses and asset impairments | 248 | 279 | — | (11 | )% | 100 | % | ||||||||||||
| Operating (loss) income | (145,122 | ) | 5,719 | 6,476 | (2,638 | )% | (2,341 | )% | |||||||||||
| Adjusted EBITDA | 3,358 | 12,445 | 13,434 | (73 | )% | (75 | )% | ||||||||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (1,344 | ) | (4,978 | ) | (5,374 | ) | (73 | )% | (75 | )% | |||||||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 2,014 | $ | 7,467 | $ | 8,060 | (73 | )% | (75 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Net sales | $ | 189,491 | $ | 230,951 | (18 | )% | |||||
| Gross profit | 53,532 | 73,342 | (27 | )% | |||||||
| Gross profit percentage | 28.3 | % | 31.8 | % | |||||||
| COSTS AND EXPENSES: | |||||||||||
| General and administrative expenses | 22,644 | 23,476 | (4 | )% | |||||||
| Selling and distribution expenses | 12,794 | 13,721 | (7 | )% | |||||||
| Amortization of purchased intangible assets | 15,833 | 16,956 | (7 | )% | |||||||
| Goodwill impairment | 141,725 | — | 100 | % | |||||||
| Restructuring expenses and asset impairments | 527 | — | 100 | % | |||||||
| Operating (loss) income | (139,991 | ) | 19,189 | (830 | )% | ||||||
| Adjusted EBITDA | 21,709 | 40,390 | (46 | )% | |||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (8,684 | ) | (16,156 | ) | (46 | )% | |||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 13,025 | $ | 24,234 | (46 | )% | |||||
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)
DynaEnergetics
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 69,679 | $ | 76,210 | $ | 72,998 | (9 | )% | (5 | )% | |||||||||
| Gross profit | 8,347 | 15,133 | 19,585 | (45 | )% | (57 | )% | ||||||||||||
| Gross profit percentage | 12.0 | % | 19.9 | % | 26.8 | % | |||||||||||||
| COSTS AND EXPENSES: | |||||||||||||||||||
| General and administrative expenses | 2,299 | 3,011 | 3,095 | (24 | )% | (26 | )% | ||||||||||||
| Selling and distribution expenses | 7,276 | 5,041 | 5,604 | 44 | % | 30 | % | ||||||||||||
| Amortization of purchased intangible assets | — | 29 | 15 | (100 | )% | (100 | )% | ||||||||||||
| Restructuring expenses and asset impairments | 1,821 | — | — | 100 | % | 100 | % | ||||||||||||
| Operating (loss) income | (3,049 | ) | 7,052 | 10,871 | (143 | )% | (128 | )% | |||||||||||
| Adjusted EBITDA | $ | 414 | $ | 8,752 | $ | 12,568 | (95 | )% | (97 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Net sales | $ | 224,011 | $ | 239,720 | (7 | )% | |||||
| Gross profit | 40,451 | 70,574 | (43 | )% | |||||||
| Gross profit percentage | 18.1 | % | 29.4 | % | |||||||
| COSTS AND EXPENSES: | |||||||||||
| General and administrative expenses | 8,201 | 12,869 | (36 | )% | |||||||
| Selling and distribution expenses | 17,540 | 15,888 | 10 | % | |||||||
| Amortization of purchased intangible assets | 44 | 45 | (2 | )% | |||||||
| Restructuring expenses and asset impairments | 1,821 | — | 100 | % | |||||||
| Operating income | 12,845 | 41,772 | (69 | )% | |||||||
| Adjusted EBITDA | $ | 19,705 | $ | 46,984 | (58 | )% | |||||
NobelClad
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 24,932 | $ | 25,221 | $ | 27,694 | (1 | )% | (10 | )% | |||||||||
| Gross profit | 8,269 | 8,222 | 9,309 | 1 | % | (11 | )% | ||||||||||||
| Gross profit percentage | 33.2 | % | 32.6 | % | 33.6 | % | |||||||||||||
| COSTS AND EXPENSES: | |||||||||||||||||||
| General and administrative expenses | 1,110 | 1,023 | 1,106 | 9 | % | — | % | ||||||||||||
| Selling and distribution expenses | 2,190 | 2,267 | 2,531 | (3 | )% | (13 | )% | ||||||||||||
| Restructuring expenses and asset impairments | — | — | 440 | — | % | (100 | )% | ||||||||||||
| Operating income | 4,969 | 4,932 | 5,232 | 1 | % | (5 | )% | ||||||||||||
| Adjusted EBITDA | $ | 5,776 | $ | 5,722 | $ | 6,384 | 1 | % | (10 | )% | |||||||||
| DMC GLOBAL INC. SEGMENT STATEMENTS OF OPERATIONS (Amounts in Thousands) (unaudited) | |||||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Net sales | $ | 76,975 | $ | 74,481 | 3 | % | |||||
| Gross profit | 25,135 | 23,113 | 9 | % | |||||||
| Gross profit percentage | 32.7 | % | 31.0 | % | |||||||
| COSTS AND EXPENSES: | |||||||||||
| General and administrative expenses | 3,207 | 2,978 | 8 | % | |||||||
| Selling and distribution expenses | 6,927 | 7,135 | (3 | )% | |||||||
| Restructuring expenses and asset impairments | — | 440 | (100 | )% | |||||||
| Operating income | 15,001 | 12,560 | 19 | % | |||||||
| Adjusted EBITDA | $ | 17,378 | $ | 15,152 | 15 | % | |||||
| DMC GLOBAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in Thousands) | |||||||||||||||||||
| Change | |||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Dec 31, 2023 | Sequential | Year-end | |||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and cash equivalents | $ | 14,511 | $ | 14,567 | $ | 31,040 | — | % | (53 | )% | |||||||||
| Marketable securities | — | — | 12,619 | — | % | (100 | )% | ||||||||||||
| Accounts receivable, net | 110,996 | 118,247 | 106,205 | (6 | )% | 5 | % | ||||||||||||
| Inventories | 165,636 | 174,791 | 166,712 | (5 | )% | (1 | )% | ||||||||||||
| Prepaid expenses and other | 16,734 | 13,270 | 10,236 | 26 | % | 63 | % | ||||||||||||
| Total current assets | 307,877 | 320,875 | 326,812 | (4 | )% | (6 | )% | ||||||||||||
| Property, plant and equipment, net | 129,674 | 128,189 | 129,267 | 1 | % | — | % | ||||||||||||
| Goodwill | — | 141,725 | 141,725 | (100 | )% | (100 | )% | ||||||||||||
| Purchased intangible assets, net | 179,380 | 184,658 | 195,260 | (3 | )% | (8 | )% | ||||||||||||
| Other long-term assets | 85,079 | 94,038 | 91,431 | (10 | )% | (7 | )% | ||||||||||||
| Total assets | $ | 702,010 | $ | 869,485 | $ | 884,495 | (19 | )% | (21 | )% | |||||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
| Accounts payable | $ | 55,883 | $ | 62,594 | $ | 40,202 | (11 | )% | 39 | % | |||||||||
| Contract liabilities | 21,263 | 16,401 | 21,621 | 30 | % | (2 | )% | ||||||||||||
| Accrued income taxes | 16,616 | 13,917 | 12,810 | 19 | % | 30 | % | ||||||||||||
| Current portion of long-term debt | 2,500 | 2,500 | 15,000 | — | % | (83 | )% | ||||||||||||
| Other current liabilities | 33,787 | 31,266 | 36,828 | 8 | % | (8 | )% | ||||||||||||
| Total current liabilities | 130,049 | 126,678 | 126,461 | 3 | % | 3 | % | ||||||||||||
| Long-term debt | 71,715 | 81,612 | 100,851 | (12 | )% | (29 | )% | ||||||||||||
| Deferred tax liabilities | 1,702 | 1,935 | 1,956 | (12 | )% | (13 | )% | ||||||||||||
| Other long-term liabilities | 54,940 | 56,191 | 57,172 | (2 | )% | (4 | )% | ||||||||||||
| Redeemable noncontrolling interest | 187,080 | 187,080 | 187,760 | — | % | — | % | ||||||||||||
| Stockholders’ equity | 256,524 | 415,989 | 410,295 | (38 | )% | (37 | )% | ||||||||||||
| Total liabilities, redeemable noncontrolling interest, and stockholders’ equity | $ | 702,010 | $ | 869,485 | $ | 884,495 | (19 | )% | (21 | )% | |||||||||
| DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) (unaudited) | |||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
| Net (loss) income | $ | (159,416 | ) | $ | 6,293 | $ | 11,525 | $ | (150,804 | ) | $ | 31,190 | |||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation | 3,444 | 3,431 | 3,460 | 10,294 | 10,294 | ||||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,307 | 5,667 | 15,877 | 17,001 | ||||||||||||||
| Amortization of deferred debt issuance costs | 217 | 217 | 141 | 624 | 412 | ||||||||||||||
| Stock-based compensation | 1,772 | 1,782 | 1,832 | 5,103 | 8,558 | ||||||||||||||
| Bad debt expense | 3,943 | 560 | 317 | 4,979 | 141 | ||||||||||||||
| Deferred income taxes | 6,026 | (746 | ) | 1,558 | 4,734 | 2,218 | |||||||||||||
| Asset impairments | 1,044 | — | 515 | 1,044 | 515 | ||||||||||||||
| Goodwill impairment | 141,725 | — | — | 141,725 | — | ||||||||||||||
| Other | 712 | 197 | (1,607 | ) | (76 | ) | (2,040 | ) | |||||||||||
| Change in working capital, net | 14,257 | (14,698 | ) | 796 | 1,285 | (25,541 | ) | ||||||||||||
| Net cash provided by operating activities | 19,002 | 2,343 | 24,204 | 34,785 | 42,748 | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
| Investment in marketable securities | — | — | (5,102 | ) | — | (7,516 | ) | ||||||||||||
| Proceeds from maturities of marketable securities | — | — | — | 3,000 | — | ||||||||||||||
| Proceeds from sales of marketable securities | — | — | — | 9,619 | — | ||||||||||||||
| Acquisition of property, plant and equipment | (6,085 | ) | (2,547 | ) | (2,333 | ) | (11,600 | ) | (7,455 | ) | |||||||||
| Proceeds from property, plant and equipment reimbursements | 406 | — | — | 406 | — | ||||||||||||||
| Proceeds on sale of property, plant and equipment | — | 100 | — | 100 | — | ||||||||||||||
| Net cash (used in) provided by investing activities | (5,679 | ) | (2,447 | ) | (7,435 | ) | 1,525 | (14,971 | ) | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
| Repayments on term loan | (625 | ) | (625 | ) | (3,750 | ) | (118,750 | ) | (13,750 | ) | |||||||||
| Borrowings on term loan | — | — | — | 50,000 | — | ||||||||||||||
| Borrowings on revolving loans | 500 | 6,700 | — | 77,650 | — | ||||||||||||||
| Repayments on revolving loans | (9,875 | ) | (10,075 | ) | — | (50,400 | ) | — | |||||||||||
| Payment of debt issuance costs | — | — | — | (2,735 | ) | — | |||||||||||||
| Distributions to redeemable noncontrolling interest holder | (3,649 | ) | (1,547 | ) | (4,034 | ) | (8,321 | ) | (10,345 | ) | |||||||||
| Net proceeds from issuance of common stock to employees and directors | — | 132 | — | 132 | 212 | ||||||||||||||
| Treasury stock purchases | (48 | ) | (16 | ) | (157 | ) | (1,000 | ) | (2,328 | ) | |||||||||
| Net cash used in financing activities | (13,697 | ) | (5,431 | ) | (7,941 | ) | (53,424 | ) | (26,211 | ) | |||||||||
| EFFECTS OF EXCHANGE RATES ON CASH | 318 | (342 | ) | 508 | 585 | 1,350 | |||||||||||||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (56 | ) | (5,877 | ) | 9,336 | (16,529 | ) | 2,916 | |||||||||||
| CASH AND CASH EQUIVALENTS, beginning of the period | 14,567 | 20,444 | 18,724 | 31,040 | 25,144 | ||||||||||||||
| CASH AND CASH EQUIVALENTS, end of the period | $ | 14,511 | $ | 14,567 | $ | 28,060 | $ | 14,511 | $ | 28,060 | |||||||||
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)
DMC Global
EBITDA and Adjusted EBITDA
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net (loss) income | (159,416 | ) | 6,293 | 11,525 | (2,633 | )% | (1,483 | )% | |||||||||||
| Interest expense, net | 2,113 | 2,316 | 2,392 | (9 | )% | (12 | )% | ||||||||||||
| Income tax provision | 7,848 | 2,792 | 4,087 | 181 | % | 92 | % | ||||||||||||
| Depreciation | 3,444 | 3,431 | 3,460 | — | % | — | % | ||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,307 | 5,667 | (1 | )% | (7 | )% | ||||||||||||
| EBITDA | (140,733 | ) | 20,139 | 27,131 | (799 | )% | (619 | )% | |||||||||||
| Stock-based compensation | 1,671 | 1,676 | 1,832 | — | % | (9 | )% | ||||||||||||
| Goodwill impairment | 141,725 | — | — | 100 | % | 100 | % | ||||||||||||
| Strategic review expenses | 1,763 | 2,020 | — | (13 | )% | 100 | % | ||||||||||||
| Restructuring expenses and asset impairments | 2,069 | 279 | 515 | 642 | % | 302 | % | ||||||||||||
| CEO transition expenses | — | — | 805 | — | % | (100 | )% | ||||||||||||
| Other expense (income), net | 520 | 284 | (302 | ) | 83 | % | 272 | % | |||||||||||
| Adjusted EBITDA | $ | 7,015 | $ | 24,398 | $ | 29,981 | (71 | )% | (77 | )% | |||||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (1,344 | ) | (4,978 | ) | (5,374 | ) | (73 | )% | (75 | )% | |||||||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 5,671 | $ | 19,420 | $ | 24,607 | (71 | )% | (77 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Net (loss) income | $ | (150,804 | ) | $ | 31,190 | (584 | )% | ||||
| Interest expense, net | 6,746 | 7,205 | (6 | )% | |||||||
| Income tax provision | 12,283 | 13,187 | (7 | )% | |||||||
| Depreciation | 10,294 | 10,294 | — | % | |||||||
| Amortization of purchased intangible assets | 15,877 | 17,001 | (7 | )% | |||||||
| EBITDA | (105,604 | ) | 78,877 | (234 | )% | ||||||
| Stock-based compensation | 4,824 | 8,558 | (44 | )% | |||||||
| Goodwill impairment | 141,725 | — | 100 | % | |||||||
| Strategic review expenses | 5,952 | — | 100 | % | |||||||
| Restructuring expenses and asset impairments | 2,348 | 515 | 356 | % | |||||||
| CEO transition expenses | — | 4,343 | (100 | )% | |||||||
| Other expense, net | 1,213 | 337 | 260 | % | |||||||
| Adjusted EBITDA | $ | 50,458 | $ | 92,630 | (46 | )% | |||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (8,684 | ) | (16,156 | ) | (46 | )% | |||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 41,774 | $ | 76,474 | (45 | )% | |||||
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)
Adjusted Net Income* and Adjusted Diluted Earnings per Share
*Net income attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest
| Three months ended September 30, 2024 | |||||||
| Amount | Per Share (1) | ||||||
| Net loss attributable to DMC Global Inc. stockholders* | $ | (101,323 | ) | $ | (5.14 | ) | |
| Goodwill impairment, net of tax | 85,035 | 4.31 | |||||
| Strategic review expenses, net of tax | 1,322 | 0.07 | |||||
| Restructuring expenses and asset impairments, net of tax | 1,451 | 0.07 | |||||
| Establishment of income tax valuation allowance | 3,900 | 0.20 | |||||
| As adjusted | $ | (9,615 | ) | $ | (0.49 | ) | |
(1) Calculated using diluted weighted average shares outstanding of 19,706,587
| Three months ended June 30, 2024 | |||||||
| Amount | Per Share (1) | ||||||
| Net income attributable to DMC Global Inc. stockholders* | $ | 4,012 | $ | 0.20 | |||
| Strategic review expenses, net of tax | 1,538 | 0.08 | |||||
| Restructuring expenses and asset impairments, net of tax | 125 | 0.01 | |||||
| As adjusted | $ | 5,675 | $ | 0.29 | |||
(1) Calculated using diluted weighted average shares outstanding of 19,671,169
| Three months ended September 30, 2023 | |||||||
| Amount | Per Share (1) | ||||||
| Net income attributable to DMC Global Inc. stockholders* | $ | 8,883 | $ | 0.45 | |||
| CEO transition expenses, net of tax | 620 | 0.03 | |||||
| Restructuring expenses and asset impairments, net of tax | 358 | 0.02 | |||||
| As adjusted | $ | 9,861 | $ | 0.50 | |||
(1) Calculated using diluted weighted average shares outstanding of 19,596,575
| Nine months ended September 30, 2024 | |||||||
| Amount | Per Share (1) | ||||||
| Net loss attributable to DMC Global Inc. stockholders* | $ | (94,748 | ) | $ | (4.82 | ) | |
| Goodwill impairment, net of tax | 85,035 | 4.33 | |||||
| Strategic review expenses, net of tax | 4,464 | 0.22 | |||||
| Restructuring expenses and asset impairments, net of tax | 1,576 | 0.08 | |||||
| Establishment of income tax valuation allowance | 3,900 | 0.20 | |||||
| As adjusted | $ | 227 | $ | 0.01 | |||
(1) Calculated using diluted weighted average shares outstanding of 19,648,253
| Nine months ended September 30, 2023 | |||||||
| Amount | Per Share (1) | ||||||
| Net income attributable to DMC Global Inc. stockholders* | $ | 23,495 | $ | 1.20 | |||
| CEO transition expenses and accelerated stock-based compensation, net of tax | 6,284 | 0.32 | |||||
| Restructuring expenses and asset impairments, net of tax | 358 | 0.02 | |||||
| As adjusted | $ | 30,137 | $ | 1.54 | |||
(1) Calculated using diluted weighted average shares outstanding of 19,540,978
Segment Adjusted EBITDA
Arcadia
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Operating (loss) income, as reported | $ | (145,122 | ) | $ | 5,719 | $ | 6,476 | (2,638 | )% | (2,341 | )% | ||||||||
| Adjustments: | |||||||||||||||||||
| Depreciation | 914 | 888 | 969 | 3 | % | (6 | )% | ||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,278 | 5,652 | — | % | (7 | )% | ||||||||||||
| Stock-based compensation | 315 | 281 | 337 | 12 | % | (7 | )% | ||||||||||||
| Goodwill impairment | 141,725 | — | — | 100 | % | 100 | % | ||||||||||||
| Restructuring expenses and asset impairments | 248 | 279 | — | (11 | )% | 100 | % | ||||||||||||
| Adjusted EBITDA | 3,358 | 12,445 | 13,434 | (73 | )% | (75 | )% | ||||||||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (1,344 | ) | $ | (4,978 | ) | $ | (5,374 | ) | (73 | )% | (75 | )% | |||||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 2,014 | $ | 7,467 | $ | 8,060 | (73 | )% | (75 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Operating (loss) income, as reported | $ | (139,991 | ) | $ | 19,189 | (830 | )% | ||||
| Adjustments: | |||||||||||
| Depreciation | 2,677 | 2,675 | — | % | |||||||
| Amortization of purchased intangible assets | 15,833 | 16,956 | (7 | )% | |||||||
| Stock-based compensation | 938 | 1,239 | (24 | )% | |||||||
| Goodwill impairment | 141,725 | — | 100 | % | |||||||
| Restructuring expenses and asset impairments | 527 | — | 100 | % | |||||||
| CEO transition expenses | — | 331 | (100 | )% | |||||||
| Adjusted EBITDA | 21,709 | 40,390 | (46 | )% | |||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (8,684 | ) | $ | (16,156 | ) | (46 | )% | ||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 13,025 | $ | 24,234 | (46 | )% | |||||
DynaEnergetics
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Operating (loss) income, as reported | $ | (3,049 | ) | $ | 7,052 | $ | 10,871 | (143 | )% | (128 | )% | ||||||||
| Adjustments: | |||||||||||||||||||
| Depreciation | 1,642 | 1,671 | 1,682 | (2 | )% | (2 | )% | ||||||||||||
| Amortization of purchased intangible assets | — | 29 | 15 | (100 | )% | (100 | )% | ||||||||||||
| Restructuring expenses and asset impairments | 1,821 | — | — | 100 | % | 100 | % | ||||||||||||
| Adjusted EBITDA | $ | 414 | $ | 8,752 | $ | 12,568 | (95 | )% | (97 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Operating income, as reported | $ | 12,845 | $ | 41,772 | (69 | )% | |||||
| Adjustments: | |||||||||||
| Depreciation | 4,995 | 5,167 | (3 | )% | |||||||
| Amortization of purchased intangible assets | 44 | 45 | (2 | )% | |||||||
| Restructuring expenses and asset impairments | 1,821 | — | 100 | % | |||||||
| Adjusted EBITDA | $ | 19,705 | $ | 46,984 | (58 | )% | |||||
NobelClad
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Operating income, as reported | $ | 4,969 | $ | 4,932 | $ | 5,232 | 1 | % | (5 | )% | |||||||||
| Adjustments: | |||||||||||||||||||
| Depreciation | 807 | 790 | 712 | 2 | % | 13 | % | ||||||||||||
| Restructuring expenses and asset impairments | — | — | 440 | — | % | (100 | )% | ||||||||||||
| Adjusted EBITDA | $ | 5,776 | $ | 5,722 | $ | 6,384 | 1 | % | (10 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Operating income, as reported | $ | 15,001 | $ | 12,560 | 19 | % | |||||
| Adjustments: | |||||||||||
| Depreciation | 2,377 | 2,152 | 10 | % | |||||||
| Restructuring expenses and asset impairments | — | 440 | (100 | )% | |||||||
| Adjusted EBITDA | $ | 17,378 | $ | 15,152 | 15 | % | |||||
FAQ
What was DMC Global's (BOOM) revenue in Q3 2024?
How much was DMC Global's (BOOM) net loss in Q3 2024?
What is DMC Global's (BOOM) Q4 2024 revenue guidance?
How did DMC Global's (BOOM) Arcadia segment perform in Q3 2024?
