0000034067FALSE00000340672024-08-012024-08-010000034067us-gaap:CommonStockMember2024-08-012024-08-010000034067boom:StockPurchaseRightsMember2024-08-012024-08-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): August 1, 2024
 
DMC Global Inc.
(Exact Name of Registrant as Specified in its Charter)
 
Delaware  001-14775 84-0608431
(State or Other Jurisdiction of
Incorporation)		 (Commission File Number) (I.R.S. Employer Identification No.)
 
11800 Ridge Parkway, Suite 300, Broomfield, Colorado 80021
(Address of Principal Executive Offices, Including Zip Code)
 
(303) 665-5700
(Registrant’s Telephone Number, Including Area Code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common Stock, $0.05 Par ValueBOOMThe Nasdaq Global Select Market
Stock Purchase RightsThe Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o







Item 2.02    Results of Operations and Financial Condition

On August 1, 2024, DMC Global Inc., a Delaware corporation (the “Company”), issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
The information provided in Item 2.02 of this Current Report, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended, unless specifically stated so therein.

Item 9.01     Financial Statements and Exhibits.

(d)        Exhibits.

Exhibit NumberDescription
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).





































SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 




 
DMC Global Inc.
 
Dated:
August 1, 2024
By:
/s/ Eric V. Walter
Eric V. Walter
Chief Financial Officer



image.jpg
     Exhibit 99.1

FOR IMMEDIATE RELEASE:CONTACT:
Geoff High, Vice President of Investor Relations
303-604-3924

DMC GLOBAL REPORTS SECOND QUARTER FINANCIAL RESULTS

•Second quarter sales were $171.2 million, up 3% sequentially and down 9% vs. Q2 2023
•Net income was $6.3 million, while net income attributable to DMC was $4.0 million
•Adjusted net income attributable to DMC* was $5.7 million, or $0.29 per diluted share
•Adjusted EBITDA* attributable to DMC was $19.4 million, up 16% sequentially and down 39% vs. Q2 2023
•Total adjusted EBITDA, inclusive of non-controlling interest (NCI), was $24.4 million, or 14.3% of sales

BROOMFIELD, Colo. - August 1, 2024 - DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its second quarter ended June 30, 2024.

“All three of our businesses delivered on key financial and operational objectives during the second quarter,” said Michael Kuta, president and CEO. “These accomplishments led to consolidated sales and adjusted EBITDA that were above the high end of our guidance.”

“We made significant progress at Arcadia, our architectural building products business,” Kuta added. “While construction spending across its key markets remains weak, Arcadia’s sales of $69.7 million were better than anticipated, reflecting solid execution by the entire Arcadia organization.

“Arcadia’s sales results, combined with ongoing efforts to improve operational efficiencies and streamline its cost structure, helped fuel a significant rebound in margins. Second quarter gross margin of 33.2% was up 600-basis-points versus the first quarter and approached the 34.7% reported in last year’s second quarter, when Arcadia delivered its strongest gross margin since its December 2021 acquisition by DMC. Adjusted EBITDA margin was 17.8% as compared with 9.5% in the first quarter, and 20.8% in the year-ago second quarter.”

Second quarter sales at DynaEnergetics, DMC’s energy products business, were $76.2 million, down 2% sequentially and down 10% versus last year’s second quarter. The declines reflect softer demand in Dyna’s core U.S. onshore market, where well completions fell 4% sequentially following a 7% sequential drop in the first quarter, according to the U.S. Energy Information Administration. Adjusted EBITDA margins were 11.5% versus 13.5% in the first quarter and 23.0% in the year-ago second quarter.

“We expect well completions will remain soft during the second half of 2024, and Dyna has adjusted its cost structure to align with anticipated activity levels,” Kuta said. “These adjustments, coupled with automation initiatives and product enhancements, are expected to drive improved EBITDA margins during the back half of the year.

“NobelClad, our composite metals business, reported sales of $25.2 million, up 2% versus last year’s second quarter, and down 6% sequentially. A favorable project mix led to an adjusted EBITDA margin of 22.7%, up from 21.9% in the first quarter and 21.8% in the year-ago second quarter. NobelClad’s order backlog increased to $64 million from $52 million at the end of the first quarter, reflecting the impact of a record order from the petrochemical industry. NobelClad is pursuing additional large order opportunities and is reporting continued strong demand for its Cylindra™ cryogenic transition joints.

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“I am encouraged by the accomplishments at each of our businesses during the second quarter,” Kuta continued. “Arcadia’s execution is driving improved lead times and customer service, which is helping mitigate the impact of a weak market. Dyna remains the technology leader in the well perforating sector, and its operational excellence initiatives are expected to improve its profitability in the coming quarters. Meanwhile, NobelClad continues to extend its position as a leader in the global composite-metal manufacturing industry.”

Kuta added, “Our focus remains on evaluating options to drive improved value for DMC’s stockholders, and we look forward to providing an update on our efforts when appropriate.”

Summary Second Quarter Results

Three months endedChange
 Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Net sales$171,179 $166,869 $188,664 3 %(9)%
Gross profit percentage27.1 %25.4 %32.8 %
SG&A*$27,122 $28,203 $29,226 (4)%(7)%
Net income$6,293 $2,319 $17,526 171 %(64)%
Net income attributable to DMC$4,012 $2,563 $13,703 57 %(71)%
Diluted net income per share attributable to DMC$0.24 $0.01 $0.70 2,300 %(66)%
Adjusted net income attributable to DMC $5,675 $4,167 $14,131 36 %(60)%
Adjusted diluted net income per share $0.29 $0.21 $0.72 38 %(60)%
Adjusted EBITDA attributable to DMC$19,420 $16,683 $31,776 16 %(39)%
Adjusted EBITDA before NCI allocation$24,398 $19,045 $38,370 28 %(36)%
Adjusted EBITDA before NCI allocation margin14.3 %11.4 %20.3 %
*SG&A in the three months ended June 30, 2023 included $573 of CEO transition expenses

Arcadia
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Net sales$69,748 $61,925 $79,158 13 %(12)%
Adjusted EBITDA attributable to DMC$7,467 $3,544 $9,892 111 %(25)%
Adjusted EBITDA before NCI allocation$12,445 $5,906 $16,486 111 %(25)%
Adjusted EBITDA before NCI allocation margin17.8 %9.5 %20.8 %
•Sequential adjusted EBITDA recovery driven by higher sales on fixed overhead and streamlining of cost structure

DynaEnergetics
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Net sales$76,210 $78,122 $84,754 (2)%(10)%
Adjusted EBITDA$8,752 $10,539 $19,461 (17)%(55)%
Adjusted EBITDA margin11.5 %13.5 %23.0 %
•Sales and margin declines reflect softer well-completion activity and continued pricing pressure in North America

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NobelClad
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Net sales$25,221 $26,822 $24,752 (6)%2 %
Adjusted EBITDA$5,722 $5,880 $5,407 (3)%6 %
Adjusted EBITDA margin22.7 %21.9 %21.8 %
•Rolling 12-month bookings were $110.1 million versus $108.4 million at the end of the prior-year second quarter; and the book-to-bill ratio was 1.0.

Third Quarter 2024 Guidance

MeasureExpected Range
Sales
DMC Consolidated$158M - $168M
Arcadia$64M - $68M
DynaEnergetics$70M - $74M
NobelClad$24M - $26M
Adjusted EBITDA
Arcadia before NCI allocation$10M - $12M
Arcadia after NCI allocation$6M - $7M
DynaEnergetics$9M - $10M
NobelClad$3M - $4M
Corporate Unallocated~ ($3M)
Attributable to DMC$15M - $18M
Full-Year 2024 Guidance on Select Items
Depreciation and amortization$35M - $36M
Interest expense$8M - $9M
Annualized effective tax rate30% - 32%
Capital expenditures$16M - $20M

Conference call information
The conference call will begin today at 5 p.m. Eastern (3 p.m. Mountain) and will be accessible by dialing 877-407-5783 (or +1 201-689-8782 for international callers).

Investors are invited to listen to the webcast live via the Internet at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=07VusKiV

Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. The webcast also will be available on the Investor page of DMC’s website, located at: ir.dmcglobal.com. A replay of the webcast will be available for six months.

*Use of Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (GAAP), the Company also discloses certain non-GAAP financial measures that we use in operational and financial decision making. Non-GAAP financial measures include the following:

•EBITDA: defined as net income (loss) plus net interest, taxes, depreciation and amortization.
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•Adjusted EBITDA: excludes from EBITDA stock-based compensation, restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance (as further described in the tables below).
•Adjusted EBITDA attributable to DMC Global Inc.: excludes the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest in Arcadia Products.
•Adjusted EBITDA for DMC business segments: defined as operating income (loss) plus depreciation, amortization, allocated stock-based compensation (if applicable), restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing operating performance.
•Adjusted net income (loss): defined as net income (loss) attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
•Adjusted diluted earnings per share: defined as diluted earnings per share attributable to DMC Global Inc. stockholders (exclusive of adjustment of redeemable noncontrolling interest) plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
•Net debt: defined as total debt less total cash, cash equivalents and marketable securities.
•Free-cash flow: defined as cash flows provided by (used in) operating activities less net acquisitions of property, plant and equipment.

Management believes providing these additional financial measures is useful to investors in understanding the Company’s operating performance, including the effects of restructuring, impairment, and other nonrecurring charges, as well as its liquidity. Management typically monitors the business utilizing the above non-GAAP measures, in addition to GAAP results, to understand and compare operating results across accounting periods, and certain management incentive awards are based, in part, on these measures. The presence of non-GAAP financial measures in this report is not intended to suggest that such measures be considered in isolation or as a substitute for, or as superior to, DMC’s GAAP information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness.

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.

About DMC Global Inc.
DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC’s businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more information, visit: http://www.dmcglobal.com.

###

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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 third quarter 2024 guidance on sales, adjusted EBITDA, depreciation and amortization expense, interest expense, tax rate, and capital expenditures; our expectation regarding well completions in the second half of 2024 and that initiatives and product enhancements at DynaEnergetics will strengthen its EBITDA margins during the second half of 2024; and our expectation that we will provide details on our options for driving improved shareholder value at a future date. Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and the ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; the timely completion of contracts; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics’ product, technology, and margin enhancement initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; consolidation among DynaEnergetics’ customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; the cyclicality of our business; competitive factors; the timing and size of expenditures; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; our ability to attract and retain key personnel; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions; inflation; supply chain delays and disruptions; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; the potential effects of activist stockholder actions and actions that we may take to discourage takeover attempts, as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2023, and our quarterly reports on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024. We do not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
5
DMC GLOBAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Share and Per Share Data)
(unaudited)

Three months endedChange
 Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
NET SALES$171,179 $166,869 $188,664 3 %(9)%
COST OF PRODUCTS SOLD124,766 124,517 126,774 — %(2)%
Gross profit46,413 42,352 61,890 10 %(25)%
Gross profit percentage27.1 %25.4 %32.8 %
COSTS AND EXPENSES:
General and administrative expenses15,623 15,980 17,526 (2)%(11)%
Selling and distribution expenses11,499 12,223 11,700 (6)%(2)%
Amortization of purchased intangible assets5,307 5,292 5,667 — %(6)%
Strategic review expenses2,020 2,169 — (7)%100%
Restructuring expenses279 — — 100 %100%
Total costs and expenses34,728 35,664 34,893 (3)%— %
OPERATING INCOME11,685 6,688 26,997 75 %(57)%
OTHER EXPENSE:
Other expense, net(284)(409)(439)(31)%(35)%
Interest expense, net(2,316)(2,317)(2,432)— %(5)%
INCOME BEFORE INCOME TAXES9,085 3,962 24,126 129 %(62)%
INCOME TAX PROVISION2,792 1,643 6,600 70 %(58)%
NET INCOME6,293 2,319 17,526 171 %(64)%
Less: Net income (loss) attributable to redeemable noncontrolling interest2,281 (244)3,823 1,035 %(40)%
NET INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS$4,012 $2,563 $13,703 57 %(71)%
NET INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
Basic$0.24 $0.01 $0.70 2,300 %(66)%
Diluted$0.24 $0.01 $0.70 2,300 %(66)%
WEIGHTED AVERAGE SHARES OUTSTANDING:  
Basic19,659,90819,610,64419,497,871— %1 %
Diluted19,671,16919,622,45519,504,963— %1 %

Reconciliation to net income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
Three months ended
Jun 30, 2024Mar 31, 2024Jun 30, 2023
Net income attributable to DMC Global Inc. stockholders$4,012 $2,563 $13,703 
Adjustment of redeemable noncontrolling interest793 (2,307)112 
Net income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest$4,805 $256 $13,815 






6
DMC GLOBAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands, Except Share and Per Share Data)
(unaudited)

Six months endedChange
 Jun 30, 2024Jun 30, 2023Year-on-year
NET SALES$338,048 $373,005 (9)%
COST OF PRODUCTS SOLD249,283 258,904 (4)%
Gross profit88,765 114,101 (22)%
Gross profit percentage26.3 %30.6 %
COSTS AND EXPENSES:
General and administrative expenses31,603 44,026 (28)%
Selling and distribution expenses23,722 24,524 (3)%
Amortization of purchased intangible assets10,599 11,334 (6)%
Strategic review expenses4,189 — 100 %
Restructuring expenses279 — 100 %
Total costs and expenses70,392 79,884 (12)%
OPERATING INCOME18,373 34,217 (46)%
OTHER EXPENSE:
Other expense, net(693)(639)8 %
Interest expense, net(4,633)(4,813)(4)%
INCOME BEFORE INCOME TAXES13,047 28,765 (55)%
INCOME TAX PROVISION4,435 9,100 (51)%
NET INCOME8,612 19,665 (56)%
Less: Net income attributable to redeemable noncontrolling interest2,037 5,053 (60)%
NET INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS$6,575 $14,612 (55)%
NET INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS  
Basic$0.25 $0.69 (64)%
Diluted$0.25 $0.69 (64)%
WEIGHTED AVERAGE SHARES OUTSTANDING:  
Basic19,635,71619,477,5761 %
Diluted19,647,00519,485,8631 %

Reconciliation to net income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
Six months ended
Jun 30, 2024Jun 30, 2023
Net income attributable to DMC Global Inc. stockholders$6,575 $14,612 
Adjustment of redeemable noncontrolling interest(1,514)(1,026)
Net income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest$5,061 $13,586 
7
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)


Arcadia
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Net sales$69,748 $61,925 $79,158 13 %(12)%
Gross profit23,157 16,813 27,459 38 %(16)%
Gross profit percentage33.2 %27.2 %34.7 %
COSTS AND EXPENSES:
General and administrative expenses7,765 7,656 8,206 1 %(5)%
Selling and distribution expenses4,116 4,468 4,021 (8)%2 %
Amortization of purchased intangible assets5,278 5,277 5,652 — %(7)%
Restructuring expenses279 — — 100 %100 %
Operating income (loss)5,719 (588)9,580 1,073 %(40)%
Adjusted EBITDA12,445 5,906 16,486 111 %(25)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest(4,978)(2,362)(6,594)111 %(25)%
Adjusted EBITDA attributable to DMC Global Inc.$7,467 $3,544 $9,892 111 %(25)%

Six months endedChange
Jun 30, 2024Jun 30, 2023Year-on-year
Net sales$131,673 $159,496 (17)%
Gross profit39,970 49,553 (19)%
Gross profit percentage30.4 %31.1 %
COSTS AND EXPENSES:
General and administrative expenses15,421 16,063 (4)%
Selling and distribution expenses8,584 9,473 (9)%
Amortization of purchased intangible assets10,555 11,304 (7)%
Restructuring expenses279 — 100 %
Operating income5,131 12,713 (60)%
Adjusted EBITDA18,351 26,956 (32)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest(7,340)(10,782)(32)%
Adjusted EBITDA attributable to DMC Global Inc.$11,011 $16,174 (32)%

8
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)

DynaEnergetics
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Net sales$76,210 $78,122 $84,754 (2)%(10)%
Gross profit15,133 16,971 26,552 (11)%(43)%
Gross profit percentage19.9 %21.7 %31.3 %
COSTS AND EXPENSES:
General and administrative expenses3,011 2,891 3,577 4 %(16)%
Selling and distribution expenses5,041 5,223 5,227 (3)%(4)%
Amortization of purchased intangible assets29 15 15 93 %93 %
Operating income7,052 8,842 17,733 (20)%(60)%
Adjusted EBITDA$8,752 $10,539 $19,461 (17)%(55)%

Six months endedChange
Jun 30, 2024Jun 30, 2023Year-on-year
Net sales$154,332 $166,722 (7)%
Gross profit32,104 50,989 (37)%
Gross profit percentage20.8 %30.6 %
COSTS AND EXPENSES:
General and administrative expenses5,903 9,774 (40)%
Selling and distribution expenses10,263 10,284 — %
Amortization of purchased intangible assets44 30 47 %
Operating income15,894 30,901 (49)%
Adjusted EBITDA$19,291 $34,416 (44)%

NobelClad
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Net sales$25,221 $26,822 $24,752 (6)%2 %
Gross profit8,222 8,644 8,021 (5)%3 %
Gross profit percentage32.6 %32.2 %32.4 %
COSTS AND EXPENSES:
General and administrative expenses1,023 1,074 949 (5)%8 %
Selling and distribution expenses2,267 2,470 2,365 (8)%(4)%
Operating income4,932 5,100 4,707 (3)%5 %
Adjusted EBITDA$5,722 $5,880 $5,407 (3)%6 %
9
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)


Six months endedChange
Jun 30, 2024Jun 30, 2023Year-on-year
Net sales$52,043 $46,787 11 %
Gross profit16,866 13,804 22 %
Gross profit percentage32.4 %29.5 %
COSTS AND EXPENSES:
General and administrative expenses2,096 1,872 12 %
Selling and distribution expenses4,738 4,604 3 %
Operating income10,032 7,328 37 %
Adjusted EBITDA$11,602 $8,768 32 %
10
DMC GLOBAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)

Change
Jun 30, 2024Dec 31, 2023Year-end
(unaudited)
ASSETS  
Cash and cash equivalents$14,567 $31,040 (53)%
Marketable securities— 12,619 (100)%
Accounts receivable, net118,247 106,205 11 %
Inventories174,791 166,712 5 %
Prepaid expenses and other13,270 10,236 30 %
Total current assets320,875 326,812 (2)%
Property, plant and equipment, net128,189 129,267 (1)%
Goodwill141,725 141,725 — %
Purchased intangible assets, net184,658 195,260 (5)%
Other long-term assets94,038 91,431 3 %
Total assets$869,485 $884,495 (2)%
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
Accounts payable$62,594 $40,202 56 %
Contract liabilities16,401 21,621 (24)%
Accrued income taxes13,917 12,810 9 %
Current portion of long-term debt2,500 15,000 (83)%
Other current liabilities31,266 36,828 (15)%
Total current liabilities126,678 126,461 — %
Long-term debt81,612 100,851 (19)%
Deferred tax liabilities1,935 1,956 (1)%
Other long-term liabilities56,191 57,172 (2)%
Redeemable noncontrolling interest187,080 187,760 — %
Stockholders’ equity415,989 410,295 1 %
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity$869,485 $884,495 (2)%

11
DMC GLOBAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
(unaudited)

Three months endedSix months ended
 Jun 30, 2024Mar 31, 2024Jun 30, 2023Jun 30, 2024Jun 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES: 
Net income$6,293 $2,319 $17,526 $8,612 $19,665 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation3,431 3,419 3,434 6,850 6,834 
Amortization of purchased intangible assets5,307 5,292 5,667 10,599 11,334 
Amortization of deferred debt issuance costs217 190 133 407 271 
Stock-based compensation1,782 1,549 1,699 3,331 6,726 
Deferred income taxes(746)(546)482 (1,292)660 
Other197 (985)(28)(788)(433)
Change in working capital, net(14,138)2,202 (17,434)(11,936)(26,513)
Net cash provided by operating activities2,343 13,440 11,479 15,783 18,544 
CASH FLOWS FROM INVESTING ACTIVITIES: 
Investment in marketable securities— — (2,414)— (2,414)
Proceeds from maturities of marketable securities— 3,000 — 3,000 — 
Proceeds from sales of marketable securities— 9,619 — 9,619 — 
Acquisition of property, plant and equipment(2,547)(2,968)(2,896)(5,515)(5,122)
Proceeds on sale of property, plant and equipment100 — — 100 — 
Net cash (used in) provided by investing activities(2,447)9,651 (5,310)7,204 (7,536)
CASH FLOWS FROM FINANCING ACTIVITIES: 
Repayments on term loan(625)(117,500)(3,750)(118,125)(10,000)
Borrowings on term loan— 50,000 — 50,000 — 
Borrowings on revolving loans6,700 70,450 — 77,150 — 
Repayments on revolving loans(10,075)(30,450)— (40,525)— 
Payment of debt issuance costs— (2,735)— (2,735)— 
Distributions to redeemable noncontrolling interest holder(1,547)(3,125)(3,711)(4,672)(6,311)
Net proceeds from issuance of common stock to employees and directors132 — 212 132 212 
Treasury stock purchases(16)(936)(14)(952)(2,171)
Net cash used in financing activities(5,431)(34,296)(7,263)(39,727)(18,270)
EFFECTS OF EXCHANGE RATES ON CASH(342)609 171 267 842 
NET DECREASE IN CASH AND CASH EQUIVALENTS(5,877)(10,596)(923)(16,473)(6,420)
CASH AND CASH EQUIVALENTS, beginning of the period20,444 31,040 19,647 31,040 25,144 
CASH AND CASH EQUIVALENTS, end of the period$14,567 $20,444 $18,724 $14,567 $18,724 



12
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)

DMC Global

EBITDA and Adjusted EBITDA
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Net income6,293 2,319 17,526 171 %(64)%
Interest expense, net2,316 2,317 2,432 — %(5)%
Income tax provision2,792 1,643 6,600 70 %(58)%
Depreciation3,431 3,419 3,434 — %— %
Amortization of purchased intangible assets5,307 5,292 5,667 — %(6)%
EBITDA20,139 14,990 35,659 34 %(44)%
Stock-based compensation1,676 1,477 1,699 13 %(1)%
Strategic review expenses2,020 2,169 — (7)%100%
Restructuring expenses279 — — 100 %100%
CEO transition expenses— — 573 —%(100)%
Other expense, net284 409 439 (31)%(35)%
Adjusted EBITDA$24,398 $19,045 $38,370 28 %(36)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest(4,978)(2,362)(6,594)111 %(25)%
Adjusted EBITDA attributable to DMC Global Inc.$19,420 $16,683 $31,776 16 %(39)%

Six months endedChange
Jun 30, 2024Jun 30, 2023Year-on-year
Net income$8,612 $19,665 (56)%
Interest expense, net4,633 4,813 (4)%
Income tax provision4,435 9,100 (51)%
Depreciation6,850 6,834 — %
Amortization of purchased intangible assets10,599 11,334 (6)%
EBITDA35,129 51,746 (32)%
Stock-based compensation3,153 6,726 (53)%
Strategic review expenses4,189 — 100 %
Restructuring expenses279 — 100 %
CEO transition expenses— 3,538 (100)%
Other expense, net693 639 8 %
Adjusted EBITDA $43,443 $62,649 (31)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest(7,340)(10,782)(32)%
Adjusted EBITDA attributable to DMC Global Inc.$36,103 $51,867 (30)%


13
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)

Adjusted Net Income* and Adjusted Diluted Earnings per Share

*Net income attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest

Three months ended June 30, 2024
Amount
Per Share (1)
Net income attributable to DMC Global Inc. stockholders*
$4,012 $0.20 
Strategic review expenses, net of tax1,538 0.08 
Restructuring expenses, net of tax125 0.01 
As adjusted$5,675 $0.29 
(1) Calculated using diluted weighted average shares outstanding of 19,671,169

Three months ended March 31, 2024
Amount
Per Share (1)
Net income attributable to DMC Global Inc. stockholders*
$2,563 $0.13 
Strategic review expenses, net of tax1,604 0.08 
As adjusted$4,167 $0.21 
(1) Calculated using diluted weighted average shares outstanding of 19,622,455

Three months ended June 30, 2023
Amount
Per Share (1)
Net income attributable to DMC Global Inc. stockholders*
$13,703 $0.70 
CEO transition expenses and accelerated stock-based compensation, net of tax428 0.02 
As adjusted$14,131 $0.72 
(1) Calculated using diluted weighted average shares outstanding of 19,504,963


Six months ended June 30, 2024
Amount
Per Share (1)
Net income attributable to DMC Global Inc. stockholders*$6,575 $0.33 
Strategic review expenses, net of tax3,142 0.16 
Restructuring expenses, net of tax125 0.01 
As adjusted$9,842 $0.50 
(1) Calculated using diluted weighted average shares outstanding of 19,647,005


Six months ended June 30, 2023
Amount
Per Share (1)
Net income attributable to DMC Global Inc. stockholders*$14,612 $0.75 
CEO transition expenses and accelerated stock-based compensation, net of tax5,663 0.29 
As adjusted$20,275 $1.04 
(1) Calculated using diluted weighted average shares outstanding of 19,485,863

14
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)

Segment Adjusted EBITDA

Arcadia
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Operating income (loss), as reported$5,719 $(588)$9,580 1,073 %(40)%
Adjustments:
Depreciation888 875 889 1 %— %
Amortization of purchased intangible assets5,278 5,277 5,652 — %(7)%
Stock-based compensation281 342 323 (18)%(13)%
Restructuring expenses279 — — 100 %100 %
CEO transition expenses— — 42 —%(100)%
Adjusted EBITDA12,445 5,906 16,486 111 %(25)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest(4,978)$(2,362)$(6,594)111 %(25)%
Adjusted EBITDA attributable to DMC Global Inc.$7,467 $3,544 $9,892 111 %(25)%


Six months endedChange
Jun 30, 2024Jun 30, 2023Year-on-year
Operating income, as reported$5,131 $12,713 (60)%
Adjustments:
Depreciation1,763 1,706 3 %
Amortization of purchased intangible assets10,555 11,304 (7)%
Stock-based compensation623 902 (31)%
Restructuring expenses279 — 100 %
CEO transition expenses— 331 (100)%
Adjusted EBITDA18,351 26,956 (32)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest(7,340)$(10,782)(32)%
Adjusted EBITDA attributable to DMC Global Inc.$11,011 $16,174 (32)%

15
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)

DynaEnergetics
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Operating income, as reported$7,052 $8,842 $17,733 (20)%(60)%
Adjustments:
Depreciation1,671 1,682 1,713 (1)%(2)%
Amortization of purchased intangible assets29 15 15 93 %93 %
Adjusted EBITDA$8,752 $10,539 $19,461 (17)%(55)%


Six months endedChange
Jun 30, 2024Jun 30, 2023Year-on-year
Operating income, as reported$15,894 $30,901 (49)%
Adjustments:
Depreciation3,353 3,485 (4)%
Amortization of purchased intangible assets44 30 47 %
Adjusted EBITDA$19,291 $34,416 (44)%

NobelClad
Three months endedChange
Jun 30, 2024Mar 31, 2024Jun 30, 2023SequentialYear-on-year
Operating income, as reported$4,932 $5,100 $4,707 (3)%5 %
Adjustments:
Depreciation790 780 700 1 %13 %
Adjusted EBITDA$5,722 $5,880 $5,407 (3)%6 %


Six months endedChange
Jun 30, 2024Jun 30, 2023Year-on-year
Operating income, as reported$10,032 $7,328 37 %
Adjustments:
Depreciation1,570 1,440 9 %
Adjusted EBITDA$11,602 $8,768 32 %
16
v3.24.2.u1
Cover
Aug. 01, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Aug. 01, 2024
Entity Registrant Name DMC Global Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-14775
Entity Tax Identification Number 84-0608431
Entity Address, Address Line One 11800 Ridge Parkway
Entity Address, Address Line Two Suite 300
Entity Address, City or Town Broomfield
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80021
City Area Code 303
Local Phone Number 665-5700
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000034067
Amendment Flag false
Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, $0.05 Par Value
Trading Symbol BOOM
Security Exchange Name NASDAQ
Stock Purchase Rights  
Document Information [Line Items]  
Title of 12(b) Security Stock Purchase Rights
No Trading Symbol Flag true
Security Exchange Name NASDAQ
DMC Global (NASDAQ:BOOM)
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