DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Share Data)
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
NET SALES $ 42,630 $ 58,621 $ 164,898 $ 232,577
COST OF PRODUCTS SOLD 32,747 41,561 121,779 161,732
---------- ---------- ---------- ----------
Gross profit 9,883 17,060 43,119 70,845
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
General and administrative
expenses 3,661 3,644 12,980 14,256
Selling expenses 2,461 3,070 8,837 11,155
Amortization expense of
purchased intangible
assets 1,355 1,193 5,064 7,382
---------- ---------- ---------- ----------
Total costs and expenses 7,477 7,907 26,881 32,793
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 2,406 9,153 16,238 38,052
OTHER INCOME (EXPENSE):
Other income (expense),
net 285 (40) (275) (269)
Interest income (expense),
net (882) (1,057) (3,257) (4,783)
Equity in earnings of
joint ventures 51 4 221 274
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 1,860 8,060 12,927 33,274
INCOME TAX PROVISION 838 2,670 4,378 9,206
---------- ---------- ---------- ----------
NET INCOME $ 1,022 $ 5,390 $ 8,549 $ 24,068
========== ========== ========== ==========
INCOME PER SHARE:
Basic $ 0.08 $ 0.42 $ 0.67 $ 1.89
========== ========== ========== ==========
Diluted $ 0.08 $ 0.42 $ 0.66 $ 1.87
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING -
Basic 12,662,512 12,488,898 12,640,069 12,445,685
========== ========== ========== ==========
Diluted 12,676,231 12,555,407 12,662,440 12,554,402
========== ========== ========== ==========
DIVIDENDS DECLARED PER
COMMON SHARE $ 0.04 $ - $ 0.12 $ 0.15
========== ========== ========== ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(unaudited)
ASSETS 2009 2008
----------- -----------
Cash and cash equivalents $ 22,411 $ 14,360
Accounts receivable, net 25,807 34,719
Inventories 32,501 35,300
Other current assets 7,255 6,670
----------- -----------
Total current assets 87,974 91,049
Property, plant and equipment, net 42,052 40,457
Goodwill, net 43,164 43,066
Purchased intangible assets, net 49,079 52,264
Other long-term assets 2,907 2,750
----------- -----------
Total assets $ 225,176 $ 229,586
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 9,183 $ 15,402
Dividend payable 515 -
Accrued income taxes 1,485 846
Other current liabilities 15,690 15,049
Lines of credit 1,777 -
Current portion of long-term debt 13,485 14,450
----------- -----------
Total current liabilities 42,135 45,747
Long-term debt 34,120 46,178
Deferred tax liabilities 15,217 16,833
Other long-term liabilities 1,593 2,326
Stockholders' equity 132,111 118,502
----------- -----------
Total liabilities and stockholders' equity $ 225,176 $ 229,586
=========== ===========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008
(Dollars in Thousands)
(unaudited)
2009 2008
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,549 $ 24,068
Adjustments to reconcile net income to net cash
provided by operating activities -
Depreciation (including capital lease
amortization) 5,042 4,531
Amortization of purchased intangible assets 5,064 7,382
Amortization of capitalized debt issuance costs 297 279
Stock-based compensation 3,425 3,237
Deferred income tax benefit (2,784) (2,079)
Equity in earnings of joint ventures (221) (274)
Change in working capital, net 10,168 (3,141)
-------- --------
Net cash provided by operating activities 29,540 34,003
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of LRI, net of cash acquired (284) -
Acquisition of DYNAenergetics, net of cash acquired - (559)
Acquisition of property, plant and equipment (3,917) (9,925)
Change in other non-current assets 59 20
-------- --------
Net cash used in investing activities (4,142) (10,464)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on syndicated credit agreement (13,614) (6,282)
Repayments on lines of credit, net (952) (7,579)
Payments on long-term debt (2,107) (1,471)
Payments on capital lease obligations (203) (389)
Payment of dividends (1,028) (1,894)
Payment of deferred debt issuance costs (341) (218)
Net proceeds from issuance of common stock 425 441
Excess tax benefit related to stock options 90 143
-------- --------
Net cash used in financing activities (17,730) (17,249)
-------- --------
EFFECTS OF EXCHANGE RATES ON CASH 383 (975)
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS 8,051 5,315
CASH AND CASH EQUIVALENTS, beginning of the period 14,360 9,045
-------- --------
CASH AND CASH EQUIVALENTS, end of the period $ 22,411 $ 14,360
======== ========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Dollars in thousands)
Three months ended Twelve months ended
December 31, December 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
(unaudited) (unaudited)
Explosive Metalworking Group $ 31,693 $ 47,656 $ 134,096 $ 194,999
Oilfield Products 8,593 8,705 21,764 27,833
AMK Welding 2,344 2,260 9,038 9,745
--------- --------- --------- ---------
Net sales $ 42,630 $ 58,621 $ 164,898 $ 232,577
========= ========= ========= =========
Explosive Metalworking Group $ 3,453 $ 9,063 $ 20,835 $ 37,454
Oilfield Products (728) 697 (2,742) 1,472
AMK Welding 448 267 1,570 2,363
Unallocated expenses (767) (874) (3,425) (3,237)
--------- --------- --------- ---------
Income from operations $ 2,406 $ 9,153 $ 16,238 $ 38,052
========= ========= ========= =========
For the three months ended December 31, 2009
-----------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
------------ ----------- ------------ ----------- -------
(unaudited)
Income (loss)
from
operations $ 3,453 $ (728) $ 448 $ (767) $ 2,406
Adjustments:
Stock-based
compensation - - - 767 767
Depreciation 900 328 114 1,342
Amortization
of
purchased
intangibles 637 718 - - 1,355
------------ ----------- ------------ ----------- -------
Adjusted EBITDA $ 4,990 $ 318 $ 562 $ - $ 5,870
============ =========== ============ =========== =======
For the three months ended December 31, 2008
------------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
------------ ------------ ------------ ----------- --------
(unaudited)
Income from
operations $ 9,063 $ 697 $ 267 $ (874) $ 9,153
Adjustments:
Stock-
based
compensation - - - 874 874
Depreciation 396 402 111 - 909
Amortization
of purchased
intangibles 569 624 - - 1,193
------------ ------------ ------------ ----------- --------
Adjusted
EBITDA $ 10,028 $ 1,723 $ 378 $ - $ 12,129
============ ============ ============ =========== ========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Dollars in thousands)
For the twelve months ended December 31, 2009
-----------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
----------- ---------- ----------- ---------- -----------
(unaudited)
Income (loss)
from
operations $ 20,835 $ (2,742) $ 1,570 $ (3,425) $ 16,238
Adjustments:
Stock-based
compensation - - - 3,425 3,425
Depreciation 3,581 1,005 456 - 5,042
Amortization
of purchased
intangibles 2,407 2,657 - - 5,064
----------- ---------- ----------- ---------- -----------
Adjusted EBITDA $ 26,823 $ 920 $ 2,026 $ - $ 29,769
=========== ========== =========== ========== ===========
For the twelve months ended December 31, 2008
-----------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
----------- ----------- ----------- ---------- -----------
(unaudited)
Income from
operations $ 37,454 $ 1,472 $ 2,363 $ (3,237) $ 38,052
Adjustments:
Stock-based
compensation - - - 3,237 3,237
Depreciation 2,989 1,107 435 - 4,531
Amortization
of purchased
intangibles 4,596 2,786 - - 7,382
----------- ----------- ----------- ---------- -----------
Adjusted EBITDA $ 45,039 $ 5,365 $ 2,798 $ - $ 53,202
=========== =========== =========== ========== ===========
Three months ended Twelve months ended
December 31, December 31,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
(unaudited) (unaudited)
Net income $ 1,022 $ 5,390 $ 8,549 $ 24,068
Interest expense 952 1,269 3,473 5,472
Interest income (70) (212) (216) (689)
Provision for income taxes 838 2,670 4,378 9,206
Depreciation 1,342 909 5,042 4,531
Amortization of purchased
intangible assets 1,355 1,193 5,064 7,382
---------- ---------- ---------- ----------
EBITDA 5,439 11,219 26,290 49,970
Stock-based compensation 767 874 3,425 3,237
Other expense (285) 40 275 269
Equity in earnings of
joint ventures (51) (4) (221) (274)
---------- ---------- ---------- ----------
Adjusted EBITDA $ 5,870 $ 12,129 $ 29,769 $ 53,202
========== ========== ========== ==========
Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044