- First quarter sales were
$138.7 million - Excluding the acquisition of
Arcadia , first quarter sales were$70.7 million , down 2% sequentially and up 27% versus Q1 2021 - First quarter gross margin improved to 27% from 18% in Q4 2021 and 23% in Q1 2021
- First quarter net loss attributable to DMC was
$3.3 million - First quarter net loss per diluted share, inclusive of adjustment for redeemable noncontrolling interest, was
$0.47 - First quarter adjusted net loss attributable to DMC*, inclusive of
$13.0 million in non-cash amortization expense for purchased intangible assets, was$3.1 million , or$0.16 per diluted share - First quarter adjusted EBITDA attributable to DMC* was
$10.5 million versus$2.8 million in Q4 2021 and$4.0 million in Q1 2021
First quarter sales were
Excluding
First quarter gross margin was 27% versus 18% in the fourth quarter and 23% in the first quarter a year ago. The sequential and year-over-year improvements reflect the addition of Arcadia’s higher-margin first quarter sales, as well as increased North American sales at DynaEnergetics, which resulted in more favorable absorption of fixed manufacturing overhead expenses. These improvements were partially offset by a lower-margin project mix at NobelClad.
Selling, general and administrative expense (SG&A) was
First quarter operating loss was
First quarter net loss attributable to DMC was
First quarter adjusted net loss attributable to DMC*, which includes
First quarter adjusted EBITDA attributable to DMC* was
Cash flow used in operations was
DMC’s debt-to-adjusted EBITDA leverage ratio at
First quarter gross margin was 30% versus pro forma gross margin of 28% in the fourth quarter and 37% in last year’s first quarter. The gross margin decline versus last year’s first quarter reflects inflation on raw materials that outpaced increases in selling prices. However, during both periods,
Arcadia’s first quarter adjusted EBITDA attributable to DMC was
DynaEnergetics
DynaEnergetics reported first quarter sales of
NobelClad
NobelClad reported first quarter sales of
NobelClad’s trailing 12-month book-to-bill ratio at the end of the first quarter was 1.02. Order backlog increased to
Management Commentary
“DMC’s businesses delivered a solid start to 2022, despite a variety of macro-economic challenges,” said
“The sales growth at
“Arcadia continues report very healthy demand from its core low-rise and mid-rise building markets throughout the western and southwestern
“At DynaEnergetics, demand from North America’s unconventional oil and gas industry accelerated in March and led to a new monthly record for shipments of our fully integrated DS perforating systems. Strong demand has continued into the second quarter, as high energy prices and growing reliance on North American oil and gas are driving increased well completion activity. These factors, coupled with the significant performance and cost benefits of our DS systems; should fuel continued growth at DynaEnergetics during the balance of 2022. We also believe recent price increases; enhanced operating efficiencies at our
“At NobelClad, global supply chain constraints continue to impede progress on several large projects on which we are bidding. However, bookings are healthy, order backlog is improving, and the medium to longer-range outlook for profitable growth remains positive.
“We are encouraged by our start to 2022, and by the strong early contributions of Arcadia,” Longe added. “We now operate three differentiated and innovative businesses that have built leading positions in their respective industries. I am confident DMC’s prospects for long-term growth and improved returns for our stakeholders have never been stronger.”
Guidance
Consolidated gross margin is expected in a range of 28% to 30% versus the 27% reported in the first quarter. The expected improvement reflects DynaEnergetics’ anticipated increase in international sales and improved pricing in
Second quarter amortization expense is expected to be
Second quarter depreciation expense is expected to be
Second quarter adjusted EBITDA attributable to DMC, after deducting the 40% noncontrolling interest, is expected in a range of
Second quarter capital expenditures are expected to be
Conference call information
Management will hold a conference call to discuss these results today at
*Use of Non-GAAP Financial Measures
Adjusted EBITDA, adjusted net income (loss), and adjusted diluted earnings per share are non-GAAP (generally accepted accounting principles) financial measures used by management to measure operating performance and liquidity. Non-GAAP results are presented only as a supplement to the financial statements based on
EBITDA is defined as net income plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation, restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance (as further described in the attached financial schedules). Adjusted net income (loss) is defined as net income (loss) attributable to DMC stockholders plus restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance. Adjusted diluted earnings per share is defined as diluted earnings per share plus restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance. None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure.
Management uses adjusted EBITDA in its operational and financial decision-making, believing that it is useful to eliminate certain items in order to focus on what it deems to be a more reliable indicator of ongoing operating performance. As a result, internal management reports used during monthly operating reviews feature adjusted EBITDA measures. Management believes that investors may find this non-GAAP financial measure useful for similar reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures. In addition, management incentive awards are based, in part, on the amount of adjusted EBITDA achieved during relevant periods. EBITDA and adjusted EBITDA are also used by research analysts, investment bankers and lenders to assess operating performance. For example, a measure similar to adjusted EBITDA is required by the lenders under DMC’s credit facility.
Adjusted net income (loss) and adjusted diluted earnings per share are presented because management believes these measures are useful to understand the effects of restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance, on DMC’s net income and diluted earnings per share, respectively.
Because not all companies use identical calculations, DMC’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the company’s performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company’s capital structure on its performance.
All of the items included in the reconciliation from net income to EBITDA and adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles and stock-based compensation) or (ii) items that management does not consider to be useful in assessing DMC’s operating performance (e.g., income taxes, restructuring and impairment charges). In the case of the non-cash items, management believes that investors can better assess the company’s operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect DMC’s ability to generate free cash flow or invest in its business. For example, by adjusting for depreciation and amortization in computing EBITDA, users can compare operating performance without regard to different accounting determinations such as useful life. In the case of the other items, management believes that investors can better assess operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.
About
Safe Harbor Language
Except for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including second quarter 2022 guidance on sales, gross margin, SG&A, depreciation expense, interest expense, adjusted EBITDA and capital expenditures; second quarter and full-year amortization expense; our expectations that new manufacturing capacity at
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(Amounts in Thousands, Except Share and Per Share Data) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Three months ended | Change | ||||||||||||||||
Sequential | Year-on-year | ||||||||||||||||
$ | 138,716 | $ | 71,844 | $ | 55,658 | 93 | % | 149 | % | ||||||||
COST OF PRODUCTS SOLD | 101,810 | 58,910 | 42,745 | 73 | % | 138 | % | ||||||||||
Gross profit | 36,906 | 12,934 | 12,913 | 185 | % | 186 | % | ||||||||||
Gross profit percentage | 27 | % | 18 | % | 23 | % | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||||
General and administrative expenses | 17,718 | 10,155 | 7,929 | 74 | % | 123 | % | ||||||||||
Selling and distribution expenses | 10,090 | 6,127 | 5,243 | 65 | % | 92 | % | ||||||||||
Amortization of purchased intangible assets | 12,976 | 568 | 324 | 2,185 | % | 3,905 | % | ||||||||||
Acquisition expenses | — | 1,581 | — | -100 | % | — | % | ||||||||||
Restructuring expenses and asset impairments | 32 | — | 127 | — | % | -75 | % | ||||||||||
Total costs and expenses | 40,816 | 18,431 | 13,623 | 121 | % | 200 | % | ||||||||||
OPERATING LOSS | (3,910 | ) | (5,497 | ) | (710 | ) | 29 | % | -451 | % | |||||||
OTHER (EXPENSE) INCOME: | |||||||||||||||||
Other (expense) income, net | (209 | ) | (152 | ) | 394 | -38 | % | -153 | % | ||||||||
Interest expense, net | (1,024 | ) | (74 | ) | (135 | ) | -1,284 | % | -659 | % | |||||||
LOSS BEFORE INCOME TAXES | (5,143 | ) | (5,723 | ) | (451 | ) | 10 | % | -1,040 | % | |||||||
INCOME TAX BENEFIT | (863 | ) | (2,154 | ) | (883 | ) | -60 | % | -2 | % | |||||||
NET (LOSS) INCOME | (4,280 | ) | (3,569 | ) | 432 | -20 | % | -1,091 | % | ||||||||
Less: Net loss attributable to redeemable noncontrolling interest | (992 | ) | (808 | ) | — | -23 | % | — | % | ||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | $ | (3,288 | ) | $ | (2,761 | ) | $ | 432 | -19 | % | -861 | % | |||||
NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | |||||||||||||||||
Basic | $ | (0.47 | ) | $ | (0.38 | ) | $ | 0.03 | -24 | % | -1,667 | % | |||||
Diluted | $ | (0.47 | ) | $ | (0.38 | ) | $ | 0.03 | -24 | % | -1,667 | % | |||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | |||||||||||||||||
Basic | 19,301,126 | 18,754,250 | 15,453,103 | 3 | % | 25 | % | ||||||||||
Diluted | 19,301,126 | 18,754,250 | 15,463,923 | 3 | % | 25 | % |
Reconciliation to net (loss) income attributable to
Three months ended | ||||||||||
Net (loss) income attributable to | $ | (3,288 | ) | $ | (2,761 | ) | $ | 432 | ||
Adjustment of redeemable noncontrolling interest | (5,717 | ) | (4,424 | ) | — | |||||
Net (loss) income attributable to | $ | (9,005 | ) | $ | (7,185 | ) | $ | 432 |
SEGMENT STATEMENTS OF OPERATIONS | |||
(Amounts in Thousands) | |||
(unaudited) | |||
Three months ended | |||
Net sales | $ | 67,968 | |
Gross profit | 20,245 | ||
Gross profit percentage | 30 | % | |
COSTS AND EXPENSES: | |||
General and administrative expenses | 6,143 | ||
Selling and distribution expenses | 3,737 | ||
Amortization of purchased intangible assets | 12,808 | ||
Operating loss | (2,443 | ) | |
Adjusted EBITDA | 11,420 | ||
Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (4,568 | ) | |
Adjusted EBITDA attributable to | $ | 6,852 |
DynaEnergetics | |||||||||||||||||
Three months ended | Change | ||||||||||||||||
Sequential | Year-on-year | ||||||||||||||||
Net sales | $ | 48,887 | $ | 50,679 | $ | 38,172 | -4 | % | 28 | % | |||||||
Gross profit | 12,608 | 9,922 | 8,434 | 27 | % | 49 | % | ||||||||||
Gross profit percentage | 26 | % | 20 | % | 22 | % | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||||
General and administrative expenses | 5,322 | 4,559 | 3,574 | 17 | % | 49 | % | ||||||||||
Selling and distribution expenses | 3,903 | 3,348 | 3,140 | 17 | % | 24 | % | ||||||||||
Amortization of purchased intangible assets | 85 | 87 | 199 | -2 | % | -57 | % | ||||||||||
Operating income | 3,298 | 1,928 | 1,521 | 71 | % | 117 | % | ||||||||||
Adjusted EBITDA | $ | 5,282 | $ | 3,950 | $ | 3,521 | 34 | % | 50 | % |
NobelClad | |||||||||||||||||
Three months ended | Change | ||||||||||||||||
Sequential | Year-on-year | ||||||||||||||||
Net sales | $ | 21,861 | $ | 21,165 | $ | 17,486 | 3 | % | 25 | % | |||||||
Gross profit | 4,181 | 4,212 | 4,617 | -1 | % | -9 | % | ||||||||||
Gross profit percentage | 19 | % | 20 | % | 26 | % | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||||
General and administrative expenses | 1,037 | 581 | 813 | 78 | % | 28 | % | ||||||||||
Selling and distribution expenses | 2,324 | 2,326 | 1,948 | — | % | 19 | % | ||||||||||
Amortization of purchased intangible assets | 83 | 118 | 125 | -30 | % | -34 | % | ||||||||||
Restructuring expenses and asset impairments | 32 | — | 127 | — | % | -75 | % | ||||||||||
Operating income | 705 | 1,187 | 1,604 | -41 | % | -56 | % | ||||||||||
Adjusted EBITDA | $ | 1,652 | $ | 2,141 | $ | 2,670 | -23 | % | -38 | % |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Amounts in Thousands) | ||||||||
Change | ||||||||
From year-end | ||||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 15,376 | $ | 30,810 | -50 | % | ||
Accounts receivable, net | 79,782 | 71,932 | 11 | % | ||||
Inventories | 143,304 | 124,214 | 15 | % | ||||
Other current assets | 17,354 | 12,240 | 42 | % | ||||
Total current assets | 255,816 | 239,196 | 7 | % | ||||
Property, plant and equipment, net | 120,479 | 122,078 | -1 | % | ||||
140,234 | 141,266 | -1 | % | |||||
Purchased intangible assets, net | 242,568 | 255,576 | -5 | % | ||||
Other long-term assets | 104,827 | 106,296 | -1 | % | ||||
Total assets | $ | 863,924 | $ | 864,412 | — | % | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY | ||||||||
Accounts payable | $ | 48,114 | $ | 40,276 | 19 | % | ||
Contract liabilities | 26,952 | 21,052 | 28 | % | ||||
Accrued income taxes | 834 | 9 | 9,167 | % | ||||
Current portion of long-term debt | 15,000 | 15,000 | — | % | ||||
Other current liabilities | 30,288 | 29,477 | 3 | % | ||||
Total current liabilities | 121,188 | 105,814 | 15 | % | ||||
Long-term debt | 128,710 | 132,425 | -3 | % | ||||
Deferred tax liabilities | 937 | 2,202 | -57 | % | ||||
Other long-term liabilities | 64,398 | 66,250 | -3 | % | ||||
Redeemable noncontrolling interest | 197,196 | 197,196 | — | % | ||||
Stockholders’ equity | 351,495 | 360,525 | -3 | % | ||||
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity | $ | 863,924 | $ | 864,412 | — | % |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(Amounts in Thousands) | |||||||||||
(unaudited) | |||||||||||
Three months ended | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net (loss) income | $ | (4,280 | ) | $ | (3,569 | ) | $ | 432 | |||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation | 3,359 | 2,903 | 2,698 | ||||||||
Amortization of purchased intangible assets | 12,976 | 568 | 324 | ||||||||
Amortization of deferred debt issuance costs | 132 | 80 | 56 | ||||||||
Amortization of acquisition-related inventory valuation step-up | 258 | — | — | ||||||||
Stock-based compensation | 2,358 | 1,670 | 1,608 | ||||||||
Deferred income taxes | (2,714 | ) | 200 | (2,334 | ) | ||||||
Loss (gain) on disposal of property, plant and equipment | 9 | 94 | (288 | ) | |||||||
Restructuring expenses and asset impairments | 32 | — | 127 | ||||||||
Change in working capital, net | (16,714 | ) | (12,852 | ) | (447 | ) | |||||
Net cash (used in) provided by operating activities | (4,584 | ) | (10,906 | ) | 2,176 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Acquisition of business, net of cash acquired | — | (261,000 | ) | — | |||||||
Proceeds from maturities of marketable securities | — | — | 4,799 | ||||||||
Proceeds from sales of marketable securities | — | 144,921 | — | ||||||||
Acquisition of property, plant and equipment | (1,536 | ) | (2,311 | ) | (1,365 | ) | |||||
Proceeds on sale of property, plant and equipment | — | — | 281 | ||||||||
Promissory note to redeemable noncontrolling interest holder | — | (24,902 | ) | — | |||||||
Net cash (used in) provided by investing activities | (1,536 | ) | (143,292 | ) | 3,715 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Payments on capital expenditure facility | — | — | (11,750 | ) | |||||||
Borrowings on term loan | — | 150,000 | — | ||||||||
Payments on term loan | (3,750 | ) | — | — | |||||||
Payment of debt issuance costs | (97 | ) | (2,337 | ) | — | ||||||
Net proceeds from issuance of common stock through at-the-market offering program | — | — | 25,262 | ||||||||
Net proceeds from issuance of common stock to employees and directors | — | 181 | — | ||||||||
Distribution to redeemable noncontrolling interest holder | (4,400 | ) | — | — | |||||||
(1,088 | ) | (9 | ) | (2,435 | ) | ||||||
Net cash (used in) provided by financing activities | (9,335 | ) | 147,835 | 11,077 | |||||||
EFFECTS OF EXCHANGE RATES ON CASH | 21 | 153 | 682 | ||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (15,434 | ) | (6,210 | ) | 17,650 | ||||||
CASH AND CASH EQUIVALENTS, beginning of the period | 30,810 | 37,020 | 28,187 | ||||||||
CASH AND CASH EQUIVALENTS, end of the period | $ | 15,376 | $ | 30,810 | $ | 45,837 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST | |||||||||||||||||
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS | |||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||
(unaudited) | |||||||||||||||||
EBITDA and Adjusted EBITDA | |||||||||||||||||
Three months ended | Change | ||||||||||||||||
Sequential | Year-on-year | ||||||||||||||||
Net (loss) income | (4,280 | ) | (3,569 | ) | 432 | -20 | % | -1,091 | % | ||||||||
Interest expense, net | 1,024 | 74 | 135 | 1,284 | % | 659 | % | ||||||||||
Income tax benefit | (863 | ) | (2,154 | ) | (883 | ) | -60 | % | -2 | % | |||||||
Depreciation | 3,359 | 2,903 | 2,698 | 16 | % | 24 | % | ||||||||||
Amortization of purchased intangible assets | 12,976 | 568 | 324 | 2,185 | % | 3,905 | % | ||||||||||
EBITDA | 12,216 | (2,178 | ) | 2,706 | 661 | % | 351 | % | |||||||||
Acquisition expenses | — | 1,581 | — | -100 | % | — | % | ||||||||||
— | 1,605 | — | -100 | % | — | % | |||||||||||
Amortization of acquisition-related inventory valuation step-up | 258 | — | — | — | % | — | % | ||||||||||
Restructuring expenses and asset impairments | 32 | — | 127 | — | % | -75 | % | ||||||||||
Stock-based compensation | 2,358 | 1,670 | 1,608 | 41 | % | 47 | % | ||||||||||
Other expense (income), net | 209 | 152 | (394 | ) | 38 | % | 153 | % | |||||||||
Adjusted EBITDA | $ | 15,073 | $ | 2,830 | $ | 4,047 | 433 | % | 272 | % | |||||||
Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (4,568 | ) | — | — | — | % | — | % | |||||||||
Adjusted EBITDA attributable to | $ | 10,505 | $ | 2,830 | $ | 4,047 | 271 | % | 160 | % |
Adjusted Net Income and Adjusted Diluted Earnings per Share | |||||||
Three months ended | |||||||
Amount | Per Share(1) | ||||||
Net loss attributable to | $ | (3,288 | ) | $ | (0.17 | ) | |
Amortization of acquisition-related inventory valuation step-up, net of tax | 133 | 0.01 | |||||
NobelClad restructuring expenses and asset impairments, net of tax | 22 | — | |||||
As adjusted | $ | (3,133 | ) | $ | (0.16 | ) |
(1) Calculated using diluted weighted average shares outstanding of 19,301,126
Three months ended | |||||||
Amount | Per Share(1) | ||||||
Net loss attributable to | $ | (2,761 | ) | $ | (0.15 | ) | |
Acquisition expenses, net of tax | 1,217 | 0.07 | |||||
1,741 | 0.09 | ||||||
As adjusted | $ | 197 | $ | 0.01 |
(1) Calculated using diluted weighted average shares outstanding of 18,754,250
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST | |||||
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS | |||||
(Amounts in Thousands) | |||||
(unaudited) | |||||
Three months ended | |||||
Amount | Per Share(1) | ||||
Net income attributable to | $ | 432 | $ | 0.03 | |
NobelClad restructuring expenses and asset impairments, net of tax | 127 | 0.01 | |||
As adjusted | $ | 559 | $ | 0.04 |
(1) Calculated using diluted weighted average shares outstanding of 15,463,923
Segment Adjusted EBITDA | |||
Three months ended | |||
Operating (loss), as reported | $ | (2,443 | ) |
Adjustments: | |||
Amortization of acquisition-related inventory valuation step-up | 258 | ||
Depreciation | 541 | ||
Amortization of purchased intangible assets | 12,808 | ||
Stock-based compensation | 256 | ||
Adjusted EBITDA | 11,420 | ||
Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (4,568 | ) | |
Adjusted EBITDA attributable to | $ | 6,852 |
DynaEnergetics | ||||||||||||||
Three months ended | Change | |||||||||||||
Sequential | Year-on-year | |||||||||||||
Operating income, as reported | $ | 3,298 | $ | 1,928 | $ | 1,521 | 71 | % | 117 | % | ||||
Adjustments: | ||||||||||||||
Depreciation | 1,899 | 1,935 | 1,801 | -2 | % | 5 | % | |||||||
Amortization of purchased intangible assets | 85 | 87 | 199 | -2 | % | -57 | % | |||||||
Adjusted EBITDA | $ | 5,282 | $ | 3,950 | $ | 3,521 | 34 | % | 50 | % |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST | ||||||||||||||
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS | ||||||||||||||
(Amounts in Thousands) | ||||||||||||||
(unaudited) | ||||||||||||||
NobelClad | ||||||||||||||
Three months ended | Change | |||||||||||||
Sequential | Year-on-year | |||||||||||||
Operating income, as reported | $ | 705 | $ | 1,187 | $ | 1,604 | -41 | % | -56 | % | ||||
Adjustments: | ||||||||||||||
Restructuring expenses and asset impairments | 32 | — | 127 | — | % | -75 | % | |||||||
Depreciation | 832 | 836 | 814 | — | % | 2 | % | |||||||
Amortization of purchased intangible assets | 83 | 118 | 125 | -30 | % | -34 | % | |||||||
Adjusted EBITDA | $ | 1,652 | $ | 2,141 | $ | 2,670 | -23 | % | -38 | % |
DMC GLOBAL INC. | ||||||||||||||||||
PRO FORMA RESULTS | ||||||||||||||||||
(Amounts in Thousands, Except Per Share Data) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Pro Forma Summary Income Statement* | ||||||||||||||||||
Three months ended | ||||||||||||||||||
DMC | Redeemable Noncontrolling Interest(1) | Pro Forma | Pro Forma Combined | |||||||||||||||
$ | 55,658 | $ | 57,241 | $ | 57,241 | $ | 112,899 | |||||||||||
Gross profit | 12,913 | 20,930 | 20,930 | 33,843 | ||||||||||||||
Gross profit % | 23.2 | % | 36.6 | % | 36.6 | % | 30.0 | % | ||||||||||
Selling, general, and administrative expenses | 13,172 | 8,453 | 8,453 | 21,625 | ||||||||||||||
Amortization of purchased intangible assets | 324 | — | — | 324 | ||||||||||||||
Restructuring expenses and asset impairments | 127 | — | — | 127 | ||||||||||||||
Operating (loss) income | (710 | ) | 12,477 | 12,477 | 11,767 | |||||||||||||
Depreciation and Amortization | 3,022 | 406 | 406 | 3,428 | ||||||||||||||
Restructuring expenses and asset impairments | 127 | — | — | 127 | ||||||||||||||
Stock-based compensation expense | 1,608 | — | — | 1,608 | ||||||||||||||
Adjusted EBITDA | 4,047 | 12,883 | (5,153 | ) | 7,730 | 11,777 | ||||||||||||
Adjusted EBITDA % | 7.3 | % | 22.5 | % | 13.5 | % | 10.4 | % |
(1) Represents the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest.
Pro Forma EBITDA and Adjusted EBITDA* | |||||||||||
Three months ended | |||||||||||
DMC | Pro Forma Combined | ||||||||||
Net income | $ | 432 | $ | 12,477 | $ | 12,909 | |||||
Interest expense, net | 135 | — | 135 | ||||||||
Income tax benefit | (883 | ) | — | (883 | ) | ||||||
Depreciation | 2,698 | 406 | 3,104 | ||||||||
Amortization | 324 | — | 324 | ||||||||
EBITDA | 2,706 | 12,883 | 15,589 | ||||||||
Restructuring | 127 | — | 127 | ||||||||
Stock-based compensation expense | 1,608 | — | 1,608 | ||||||||
Other income, net | (394 | ) | — | (394 | ) | ||||||
Adjusted EBITDA | 4,047 | 12,883 | 16,930 | ||||||||
Less: adjusted EBITDA attributable to redeemable noncontrolling interest | — | (5,153 | ) | (5,153 | ) | ||||||
Adjusted EBITDA attributable to | 4,047 | 7,730 | 11,777 |
*This unaudited pro forma combined financial information was not prepared under Article 11 of SEC Regulation S-X (“Article 11”) or Financial Accounting Standards Board Accounting Standards Codification 805 (“ASC 805”).
CONTACT:
303-604-3924
Source:
2022 GlobeNewswire, Inc., source