DMC (BOOM) - 2023 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2023, DMC Global Inc. reported a net income of $2,139,000, compared to a net loss of$4,280,000 for the same period in 2022, representing a significant turnaround[26]. - DMC Global Inc. reported a comprehensive income attributable to stockholders of $1,678,000 for the three months ended March 31, 2023, compared to a loss of$4,492,000 in the same period of 2022[26]. - Net income attributable to DMC Global Inc. stockholders for the three months ended March 31, 2023, was $909,000, compared to a net loss of$3,288,000 for the same period in 2022[79]. - Basic and diluted net loss per share attributable to DMC Global Inc. stockholders was $(0.01) for the three months ended March 31, 2023, compared to$(0.47) for the same period in 2022[79]. - Segment operating income for the three months ended March 31, 2023, was $18,922,000, significantly up from$1,560,000 in the same period of 2022[105]. Balance Sheet and Liabilities - Total current liabilities increased to $161,951,000 as of March 31, 2023, up from$128,050,000 at the end of 2022, reflecting a 26.5% increase[22]. - The company's total liabilities reached $334,204,000 as of March 31, 2023, compared to$310,809,000 at the end of 2022, indicating an increase of 7.5%[22]. - The company’s long-term debt decreased to $111,686,000 as of March 31, 2023, down from$117,798,000 at the end of 2022, reflecting a reduction of 5.0%[22]. - Total debt as of March 31, 2023, was $126,686,000, down from$132,798,000 as of December 31, 2022[93]. - Deferred compensation obligations that will be settled in cash amounted to $17,222,000 as of March 31, 2023, down from$15,292,000 as of December 31, 2022[83]. Cash Flow and Operating Activities - Cash and cash equivalents at the end of the period were $19,647,000, up from$15,376,000 at the end of March 31, 2022, showing a year-over-year increase of 27.5%[31]. - The company experienced a net cash provided by operating activities of $7,065,000 for the three months ended March 31, 2023, compared to a net cash used of$4,584,000 in the same period of 2022[31]. Equity and Stockholder Information - Stockholders' equity as of March 31, 2023, was $382,277,000, a slight increase from$380,647,000 at the end of 2022[22]. - DMC Global Inc. had a total of 20,399,461 common shares issued as of March 31, 2023, an increase from 20,140,654 shares at the end of 2022[28]. - The company incurred $5,027,000 in stock-based compensation for the three months ended March 31, 2023, compared to$2,358,000 in the same period of 2022, indicating a rise of approximately 112%[31]. Inventory and Receivables - Total inventories as of March 31, 2023, amounted to $179,545 million, with raw materials accounting for$42,502 million[61]. - As of March 31, 2023, the allowance for doubtful accounts decreased to $772 million from$925 million on December 31, 2022, reflecting a provision for expected credit losses of $32 million[41]. - During the three months ended March 31, 2023, net recoveries of accounts receivable amounted to$154 million[40]. Future Plans and Strategies - The company plans to continue focusing on operational efficiency and market expansion strategies to drive future growth[37]. - DMC Global Inc. plans to continue its focus on market expansion and product development, although specific new products or technologies were not detailed in the report[37]. Compliance and Financial Covenants - As of March 31, 2023, the company was in compliance with all financial covenants and other provisions of its debt agreements[97]. - The maximum leverage ratio permitted by the credit facility is 3.25 to 1.0 through the quarter ended March 31, 2023, and will decrease to 3.0 to 1.0 from the quarter ended June 30, 2023[96]. - The minimum debt service coverage ratio permitted under the credit facility is 1.35 to 1.0[125]. Miscellaneous - The company has established a Non-Qualified Deferred Compensation Plan, allowing participants to defer a portion of their salary and bonuses on a tax-deferred basis[50]. - The company recognizes deferred tax assets and liabilities for expected future income tax consequences, with a valuation allowance recorded when realization is not likely[46]. - The company continues to permanently reinvest the earnings of its international subsidiaries, avoiding U.S. income taxes on undistributed foreign income[129].