DMC Global Reports Second Quarter Financial Results
- Second quarter sales were $65.4 million, up 18% sequentially and 51% from Q2 2020
- Gross margin improved to 26% versus 23% in Q1 2021 and 15% in Q2 2020
- Net income was $1.7 million, or $0.10 per diluted share
- Adjusted EBITDA* increased to $7.5 million versus $4.0 million in Q1 2021 and negative $1.8 million in Q2 2020
- Cash and marketable securities at June 30, 2021, were $181.3 million versus $53.9 million at December 31, 2020
- NobelClad awarded $8.8 million order from chemical industry; introduces clad pipe offering
BROOMFIELD, Colo. - July 22, 2021 - DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its second quarter ended June 30, 2021.
Second quarter sales were $65.4 million, up 18% sequentially versus the first quarter, and up 51% versus the second quarter of 2020. The sales growth versus both prior periods is attributable to the accelerating recovery of the energy industry, which drove improved demand for well perforating systems at DynaEnergetics, DMC’s energy products business. The results also reflect increased order shipments at NobelClad, DMC’s composite metals business.
Second quarter gross margin was 26% up from 23% in the 2021 first quarter and 15% in last year's second quarter. The improvement reflects the impact of higher sales volume on fixed expenses at DynaEnergetics, and the receipt of the Employee Retention Credit under the CARES Act.
Selling, general and administrative expense (SG&A) was $14.0 million, up from $13.2 million in the first quarter and $12.2 million in the year-ago second quarter. SG&A in this year’s second quarter included $1.2 million in litigation expense related to several patent infringement cases in which DynaEnergetics is the plaintiff. Litigation expense was $1.0 million in this year’s first quarter and $400,000 in the second quarter a year ago.
Second quarter operating income was $2.7 million versus an operating loss of $8.0 million in last year's second quarter. Net income was $1.7 million, or $0.10 per diluted share, versus net loss of $5.6 million, or $0.38 per diluted share, in last year’s second quarter.
Second quarter adjusted EBITDA was $7.5 million versus $4.0 million in the 2021 first quarter, and negative $1.8 million in the 2020 second quarter.
DMC ended the second quarter with cash and marketable securities of $181.3 million, up from $66.8 million at March 31, 2021. During the quarter, the Company raised net proceeds of $123.5 million through a registered public equity offering.
Second quarter sales at DynaEnergetics were $42.3 million, up 11% sequentially and 79% from the 2020 second quarter. Gross margin was 25%, up from 22% in the first quarter of 2021 and 8% in last year’s second quarter. Adjusted EBITDA was $5.3 million versus negative $3.3 million in last year’s second quarter.
Second quarter sales at NobelClad were $23.2 million, up 33% sequentially and 18% versus the 2020 second quarter. Gross margin was 28%, up from 26% in the 2021 first quarter and 25% in last year's second quarter. The gross margin improvement reflects a more favorable project mix. Adjusted EBITDA was $4.3 million, up from $3.1 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, and its rolling 12-month bookings were $84 million. Order backlog increased to $45.1 million from $43.2 million at the end of the first quarter.