DMC GLOBAL REPORTS RECORD THIRD QUARTER FINANCIAL RESULTS
Third quarter sales were a record $87.9 million, up 68% from Q3 2017 and 9% sequentially
DynaEnergetics sales increased 12% sequentially while NobelClad’s declined 2% sequentially; both businesses exceeded forecasted sales
Consolidated gross margin was 34% versus 33% in Q3 2017 and 33% in Q2 2018
Net income was $4.9 million, or $0.33 per diluted share; adjusted net income* was $10.0 million, or $0.68 per diluted share
Adjusted EBITDA* of $17.2 million was up 23% sequentially and 100% versus Q3 2017
DynaEnergetics resolves 2015 anti-dumping case; will tender one-time $8 million penalty in Q4 2018; penalty fully accrued as of Q3 2018
DynaEnergetics successfully defends itself in third consecutive patent infringement action brought by a competitor
BOULDER, Colo. - October 25, 2018 - DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its third quarter ended September 30, 2018.
Consolidated sales were a quarterly record $87.9 million, up 68% versus the third quarter of 2017 and up 9% sequentially from the 2018 second quarter. The results, which exceeded management’s forecasted range of $82 million to $85 million, principally were driven by strong demand and an expanding customer base at DynaEnergetics, DMC’s oilfield products business. Sales at NobelClad, DMC’s explosion welding business, also exceeded forecasts.
Third quarter gross margin was 34% versus 33% in the year-ago third quarter and 33% in the second quarter. The improvement primarily resulted from higher proportional sales from DynaEnergetics versus NobelClad, as well as higher average selling prices at DynaEnergetics and an improved project mix at NobelClad.
Operating income was $8.8 million versus an operating loss of $12.4 million in last year’s third quarter, which included a $17.6 million goodwill impairment charge. Net income was $4.9 million, or $0.33 per diluted share, versus net loss of $14.1 million, or a loss of $0.98 per diluted share, in last year’s third quarter.
Excluding $192,000 in restructuring expenses at NobelClad and $4.9 million of accrued anti-dumping penalties at DynaEnergetics, adjusted operating income* was $13.9 million and adjusted net income was $10.0 million, or $0.68 per diluted share.
Subsequent to the close of the third quarter, DynaEnergetics was notified by U.S. Customs of its decision to assess an $8.0 million penalty with respect to a 2015 anti-dumping and countervailing duties case. The Company previously estimated a potential penalty range of $3.1 million to $12.4 million. DynaEnergetics, which has elected not to continue its appeals in the case, recorded an accrual for potential penalties of $3.1 million in the first quarter of 2018 and an additional $4.9 million in the third quarter of 2018. DMC plans to tender the $8.0 million in the fourth quarter of 2018.
The following information was filed by Dmc Global Inc. (BOOM) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: BOOM CIK: 34067 Form Type:10-Q Quarterly Report Accession Number: 0000034067-18-000034 Submitted to the SEC: Thu Oct 25 2018 12:31:22 PM EST Accepted by the SEC: Thu Oct 25 2018 Period: Sunday, September 30, 2018 Industry: Miscellaneous Primary Metal Products