DMC Global Inc. (NASDAQ:BOOM) Q4 2022 Earnings Conference Call February 23, 2023 5:00 PM ET Company Participants Geoff High – Vice President-Investor Relations David Aldous – Director and Interim Co-Chief Executive Officer Mike Kuta – Co-Chief Executive Officer and Chief Financial Officer Conference Call Participants Stephen Gengaro – Stifel Gerry Sweeney – ROTH Capital Ken Newman – KeyBanc Capital Samir Patel – Askeladden Capital Operator Good day, everyone, and welcome to the DMC Global Fourth Quarter Ea ...

DMC Global Inc. (NASDAQ:BOOM) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Geoff High - Vice President, Investor Relations Kevin Longe - President & Chief Executive Officer Mike Kuta - Chief Financial Officer Conference Call Participants Cameron Lochridge - Stephens Ken Newman - KeyBanc Capital Markets Alec Scheibelhoffer - Stifel Samir Patel - Askeladden Ken Newman - KeyBanc Capital Markets Operator Good afternoon, ladies and gentlemen, and welcome to the DMC Global Thi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol Name of exchange on which registered Common Stock, $0.05 Par Value BOOM The Nasdaq Global Select Market Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission file numbe ...

Financial 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]

DMC Global Inc. (NASDAQ:BOOM) Q1 2022 Earnings Conference Call May 5, 2022 5:00 PM ET Company Participants Geoff High – Vice President, Investor Relations & Corporate Communications Kevin Longe – President and Chief Executive Officer Mike Kuta – Chief Financial Officer Conference Call Participants Stephen Gengaro – Stifel Cameron Lochridge – Stephens Ken Newman – KeyBanc Jim Brilliant – Century Management Operator Good afternoon, ladies and gentlemen. And welcome to the DMC Global First Quarter Earnings Cal ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol Name of exchange on which registered Common Stock, $0.05 Par Value BOOM The Nasdaq Global Select Market Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission file number 00 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO | --- | --- | --- | |--------------------------------------------------|----------------------------------------------------------------------------------------|------------- ...

Financial Data and Key Metrics Changes - In Q4 2021, consolidated sales increased 7% sequentially to $71.8 million, with DynaEnergetics sales rising 15% to $50.7 million [12][16] - Fourth quarter consolidated gross margin was 18%, down from 25% in Q3, attributed to inventory reserve adjustments and project mix [14][16] - Adjusted EBITDA for Q4 was $2.8 million, down from $5.8 million in Q3, while full-year consolidated sales were $260.1 million, up 14% from 2020 [16][23] Business Line Data and Key Metrics Changes - DynaEnergetics International sales grew 75% to $8.1 million, while North American sales increased 7% to $42.6 million [13] - NobelClad sales declined 8% sequentially to $21.2 million due to delays in receiving metals [13] - Arcadia's pro forma sales for 2021 were $500.5 million, with a pro forma gross margin of 28% [16] Market Data and Key Metrics Changes - DynaEnergetics sales in North America exceeded the 4% increase in U.S. well completions reported by the Energy Information Administration [13] - Arcadia serves a $7 billion addressable market, capturing approximately 10% market share in its regions [7][8] Company Strategy and Development Direction - The acquisition of Arcadia is expected to double DMC's pro forma sales and strengthen its market position in the building products sector [7][20] - DMC aims to improve operating efficiencies and increase manufacturing capacity at Arcadia through investments in new facilities and systems [10][11] - The company is focused on margin improvement and long-term revenue growth across its asset-light businesses [20][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strengthening end markets and the ability to meet demand, particularly in the oil and gas sector [17] - DynaEnergetics is expected to see margin recovery through price increases and increased well completion activity [18][46] - NobelClad is positioned to improve bookings and financial performance as supply chain disruptions ease [19] Other Important Information - Fourth quarter net loss attributable to DMC was $2.8 million, with an adjusted net income of $840,000 [22][23] - First quarter 2022 consolidated sales are expected to be between $125 million and $135 million, with Arcadia projected to report sales of $57 million to $62 million [24][25] Q&A Session Summary Question: Discussion on Arcadia's CapEx and growth expectations - Management plans $8 million to $10 million in CapEx for Arcadia, focusing on operational efficiency and capacity expansion [29][30] Question: Arcadia's revenue seasonality and growth direction - Revenue is expected to remain stable, with growth driven by price increases and capacity improvements [31][32] Question: DynaEnergetics' Q1 guidance and international sales - International sales are expected to pull back slightly, while North American sales are projected to increase [35][36] Question: Pricing strategy and competitive behavior in DynaEnergetics - A 5% price increase was implemented, with expectations for further increases to offset inflation [43][46] Question: Arcadia's EBITDA margins and growth potential - Expected EBITDA margins for Arcadia are around 20%, with growth driven by pricing and operational improvements [50][51] Question: Capital allocation and debt management for 2022 - The company aims to reduce debt to below 2x debt-to-EBITDA by the end of 2022, with a long-term CapEx target of 3% to 4% of sales [57][58]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol Name of exchange on which registered Common Stock, $0.05 Par Value BOOM The Nasdaq Global Select Market Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission file numbe ...

DMC Global Inc. (NASDAQ:BOOM) Q2 2021 Earnings Conference Call July 22, 2021 5:00 PM ET Company Participants Geoff High - Vice President of Investor Relations Kevin Longe - President, Chief Executive Officer Mike Kuta - Chief Financial Officer Conference Call Participants Tommy Moll - Stephens Taylor Zurcher - Tudor, Pickering, Holt & Co. Stephen Gengaro - Stifel Matthew Galinko - Sidoti & Company Operator Good afternoon, ladies and gentlemen and welcome to the DMC Global Second Quarter Earnings Call. At th ...