DMC Global Reports Second Quarter Financial Results

  • Consolidated second quarter sales were $111.0 million, up 11% sequentially and 37% versus Q2 2018
  • Gross margin was 38%, up from 36% in Q1 2019 and 33% in Q2 2018
  • Operating income was $24.7 million versus $10.2 million in Q2 2018
  • Net income was $17.2 million, or $1.15 per diluted share; adjusted net income* was $17.6 million, or $1.17 per diluted share
  • Adjusted EBITDA* of $29.0 million was up 21% sequentially and 108% versus Q2 2018
  • Return on invested capital* increases to 30%

    BROOMFIELD, Colo. - July 25, 2019 - DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its second quarter ended June 30, 2019.

    Consolidated sales were a record $111.0 million, up 37% versus the second quarter of 2018 and up 11% sequentially. The growth was driven by stronger than forecasted sales at both DynaEnergetics, DMC’s oilfield products business, and NobelClad, the Company’s composite metals business.

    Second quarter gross margin was 38% versus 33% in the 2018 second quarter and 36% in the 2019 first quarter. The increase was principally due to a more favorable product mix and improved manufacturing and supply chain efficiencies at DynaEnergetics.

    Operating income was $24.7 million, up 141% from $10.2 million in the 2018 second quarter. Net income was $17.2 million, or $1.15 per diluted share, versus $6.4 million, or $0.43 per diluted share, in last year’s second quarter.

    Adjusted operating income* was $25.0 million, and excludes $324,000 in restructuring expenses at NobelClad. Adjusted net income was $17.6 million, or $1.17 per diluted share.

    Second quarter adjusted EBITDA was $29.0 million, up 108% from $13.9 million in the 2018 second quarter, and a 21% sequential increase versus $23.9 million reported in this year’s first quarter.

    Net debt* (total debt less cash and cash equivalents) at June 30, 2019, was $21.0 million, down from $28.5 million at March 31, 2019 and $28.0 million at December 31, 2018.

    DynaEnergetics
    Second quarter sales at DynaEnergetics were a record $88.6 million, up 50% from the 2018 second quarter and 11% sequentially. Gross margin was 41%, up from 37% in last year’s second quarter and 39% in the first quarter. Operating income was $26.8 million versus $12.2 million in the comparable year-ago quarter. Adjusted EBITDA was $28.5 million versus $13.8 million in last year’s second quarter.

    NobelClad
    NobelClad reported second-quarter sales of $22.3 million, up 1% versus the 2018 second quarter and up 10% sequentially. Gross margin was 26%, up from 23% in the 2018 second quarter and flat compared to this year’s first quarter. Operating income was $1.9 million versus $1.7 million in the year-ago second quarter. Excluding restructuring charges, adjusted operating income was $2.2 million versus $1.9 million in the year-ago second quarter. Adjusted EBITDA was $3.1 million versus $2.7 million in last year’s second quarter.

    NobelClad’s trailing 12-month book-to-bill ratio at the end of the second quarter was 1.01. Order backlog was $38.8 million versus $40.5 million at the end of the first quarter.

    Six-month results
    Consolidated sales for the six-month period were $211.1 million, up 42% versus the same period a year ago. Gross margin was 37% versus 33% in the 2018 six-month period. Operating income was $45.1 million versus $15.5 million in last year’s six-month period, which included $3.1 million in accrued anti-dumping penalties. Net income for the period was $32.4 million, or $2.17 per diluted share, versus $10.3 million, or $0.69 per diluted share, in the same period a year ago.

    Six-month adjusted operating income was $45.5 million and adjusted net income was $32.8 million, or $2.20 per diluted share. Adjusted EBITDA was $52.9 million versus $25.6 million in last year’s six-month period.

    DynaEnergetics
    Six-month sales at DynaEnergetics were $168.5 million, up 56% from $108.0 million, in last year’s six-month period. Operating income was $49.9 million versus $20.9 million in the comparable year-ago period. Adjusted EBITDA was $53.0 million versus $27.2 million in last year’s six-month period.

    NobelClad
    NobelClad reported six-month sales of $42.6 million, up 6% from $40.2 million at the six-month mark last year. Operating income was $3.8 million versus $1.7 million in the comparable year-ago period, while adjusted EBITDA was $5.8 million versus $3.7 million.

Information

Date

07.25.2019

Type

Press Release

Company

DMC Global

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