Financial Performance - Net sales for the three months ended June 30, 2022, were 65,438,000,comparedto121,096,000 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,adecreasefrom29,884,000 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,comparedto2,156,000 for the same period in 2021, showing a growth of approximately 5.0%[14] - The company reported a basic net income per share of 0.10forthethreemonthsendedJune30,2021,whileforthesameperiodin2022,itreportedalossof0.26 per share[14] - Comprehensive income attributable to DMC Global Inc. stockholders for the three months ended June 30, 2022, was 2,965,000,comparedto2,197,000 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,comparedto2,156,000 for the same period in 2021, reflecting a slight increase[23] - The company recorded a net income of 5,552,000forthequarterendingJune30,2022,comparedtoanetincomeof2,264,000 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,comparedto1,724,000 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,upfrom0.10 in the same period of 2021[47] Assets and Liabilities - Total current assets increased to 268,728,000asofJune30,2022,comparedto239,196,000 as of December 31, 2021, reflecting a growth of approximately 12.4%[12] - Total liabilities rose to 311,304,000asofJune30,2022,comparedto306,691,000 as of December 31, 2021, marking an increase of about 1.0%[12] - Cash and cash equivalents decreased to 11,819,000asofJune30,2022,from30,810,000 as of December 31, 2021, indicating a decline of approximately 61.6%[12] - The total stockholders' equity decreased to 355,055,000asofJune30,2022,from360,525,000 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,anincreasefrom351,495,000 as of March 31, 2022[18] - The company had treasury stock at cost amounting to (597,758,000)asofJune30,2022,indicatingasignificantinvestmentinitsownshares[20]−TotalassetsacquiredfromArcadiaamountedto515,262,000, with liabilities assumed totaling 31,312,000[66]CashFlowandInvestments−Netcashprovidedbyoperatingactivitieswas2,536,000 for the six months ended June 30, 2022, compared to a cash outflow of 6,021,000in2021,indicatingimprovedoperationalefficiency[23]−Cashusedininvestingactivitieswas5,679,000 for the six months ended June 30, 2022, a significant reduction from 121,433,000in2021,reflectingashiftininvestmentstrategy[23]−Thecompanymaderepaymentsof7,500,000 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,whichincluded261,000,000 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,asignificantincreasefrom65,438 in the same period of 2021, representing a growth of approximately 153.5%[112] - Arcadia segment reported net sales of 76,462forthethreemonthsendedJune30,2022,whileDynaEnergeticsandNobelCladreported67,517 and 21,852respectively[112]−DynaEnergetics′netsalesforthesixmonthsendedJune30,2022,were116,404, up from 80,440inthesameperiodof2021,reflectingagrowthofapproximately44.7165,831, with a 37% increase to 89,369whenexcludingtheArcadiaacquisitioncomparedtothesecondquarterof2021[143]ExpensesandProfitability−Consolidatedgrossprofitwas52,099 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 29,361inQ22022from14,015 in Q2 2021, with Arcadia contributing 11,372tothisincrease[148]−Generalandadministrativeexpensesincreasedby20,134 for the six months ended June 30, 2022, compared to the same period in 2021, with the Arcadia acquisition contributing 13,555tothisincrease[180]−Interestexpense,netforthesixmonthsendedJune30,2022,was2,287, significantly higher than 216inthesameperiodin2021,duetoa150,000 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 (BOOM)2022-08-03 16:00