Selected Highlights:
-- Explosive Metalworking segment reports year-end backlog of $97 million
-- Multiple large contracts awarded from alternative energy, aluminum
production & power generation sectors
-- Full-year operating cash flow increases 82% to $34.0 million versus
2007
-- Corporate liquidity strengthened through a 32%, or $21.8 million,
reduction in net debt
-- Preliminary full-year EPS reported at $1.91 versus $2.00 in fiscal
2007
Dynamic Materials Corporation (DMC) (
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,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
NET SALES $ 58,621 $ 55,211 $ 232,577 $ 165,175
COST OF PRODUCTS SOLD 41,561 37,426 161,732 110,168
---------- ---------- ---------- ----------
Gross profit 17,060 17,785 70,845 55,007
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
General and administrative
expenses 3,644 2,630 14,256 8,049
Selling expenses 3,070 1,962 11,155 6,875
Amortization expense of
purchased intangible
assets 1,193 1,191 7,382 1,191
---------- ---------- ---------- ----------
Total costs and expenses 7,907 5,783 32,793 16,115
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 9,153 12,002 38,052 38,892
OTHER INCOME (EXPENSE):
Other expense (40) (162) (269) (158)
Interest income (expense),
net (1,057) (601) (4,783) (24)
Equity in earnings of
joint ventures 4 24 274 24
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 8,060 11,263 33,274 38,734
INCOME TAX PROVISION 2,670 4,334 9,206 14,147
---------- ---------- ---------- ----------
NET INCOME $ 5,390 $ 6,929 $ 24,068 $ 24,587
========== ========== ========== ==========
INCOME PER SHARE - BASIC:
Net income $ 0.43 $ 0.57 $ 1.93 $ 2.03
========== ========== ========== ==========
INCOME PER SHARE - DILUTED:
Net income $ 0.43 $ 0.56 $ 1.91 $ 2.00
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING -
Basic 12,488,898 12,249,681 12,445,685 12,083,851
========== ========== ========== ==========
Diluted 12,562,767 12,455,468 12,579,598 12,293,158
========== ========== ========== ==========
ANNUAL DIVIDENDS DECLARED
PER COMMON SHARE $ - $ - $ 0.15 $ 0.15
========== ========== ========== ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(unaudited)
ASSETS 2008 2007
------------ ------------
Cash and cash equivalents $ 14,360 $ 9,045
Restricted cash - 371
Accounts receivable, net 34,719 39,833
Inventories 35,300 41,628
Other current assets 6,389 3,853
------------ ------------
Total current assets 90,768 94,730
Property, plant and equipment, net 40,457 35,446
Goodwill, net 43,066 45,862
Purchased intangible assets, net 52,264 61,914
Other long-term assets 2,664 2,947
------------ ------------
Total assets $ 229,219 $ 240,899
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 15,402 $ 22,590
Accrued income taxes 846 1,212
Other current liabilities 14,768 19,394
Lines of credit - current - 7,587
Current portion of long-term debt 14,450 8,035
------------ ------------
Total current liabilities 45,466 58,818
Long-term debt 46,178 61,530
Deferred tax liabilities 16,986 20,604
Other long-term liabilities 2,087 1,668
Stockholders' equity 118,502 98,279
------------ ------------
Total liabilities and stockholders' equity $ 229,219 $ 240,899
============ ============
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2008 AND 2007
(Dollars in Thousands)
(unaudited)
2008 2007
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 24,068 $ 24,587
Adjustments to reconcile net income to net
cash provided by operating activities -
Depreciation (including capital lease
amortization) 4,531 2,156
Amortization of purchased intangible assets 7,382 1,191
Amortization of capitalized debt issuance
costs 279 30
Stock-based compensation 3,237 1,301
Deferred income tax provision (benefit) (2,079) (357)
Equity in earnings of joint ventures (274) (24)
Change in working capital, net (3,141) (10,200)
------------ ------------
Net cash provided by operating activities 34,003 18,684
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of DYNAenergetics, net of cash
acquired (559) (81,224)
Acquisition of property, plant and equipment (9,925) (8,979)
Change in other non-current assets 20 (87)
------------ ------------
Net cash used in investing activities (10,464) (90,290)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowed under syndicated credit agreement - 65,480
Borrowings on lines of credit, net (7,579) (524)
Payments on long-term debt (7,753) (655)
Payments on capital lease obligations (389) (34)
Payment of dividends (1,894) (1,821)
Payment of deferred debt issuance costs (218) (1,534)
Net proceeds from issuance of common stock 441 891
Excess tax benefit related to stock options 143 402
Other cash flows from financing activities - 87
------------ ------------
Net cash provided by (used in) financing
activities (17,249) 62,292
------------ ------------
EFFECTS OF EXCHANGE RATES ON CASH (975) 473
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 5,315 (8,841)
CASH AND CASH EQUIVALENTS, beginning of the
period 9,045 17,886
----------- -----------
CASH AND CASH EQUIVALENTS, end of the period $ 14,360 $ 9,045
=========== ===========
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,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
(unaudited) (unaudited)
Explosive Metalworking Group $ 47,656 $ 50,181 $ 194,999 $ 155,438
Oilfield Products 8,705 2,545 27,833 2,545
AMK Welding 2,260 2,485 9,745 7,192
--------- --------- --------- ---------
Net sales $ 58,621 $ 55,211 $ 232,577 $ 165,175
========= ========= ========= =========
Explosive Metalworking Group $ 9,063 $ 11,706 $ 37,454 $ 38,902
Oilfield Products 697 (126) 1,472 (126)
AMK Welding 267 811 2,363 1,417
Unallocated expenses (874) (389) (3,237) (1,301)
--------- --------- --------- ---------
Income from operations $ 9,153 $ 12,002 $ 38,052 $ 38,892
========= ========= ========= =========
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
========= ========= ========== ========= ==========
For the three months ended December 31, 2007
-----------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
--------- --------- ---------- --------- ----------
(unaudited)
Income from
operations $ 11,706 $ (126) $ 811 $ (389) $ 12,002
Adjustments:
Stock-based
compensation - - - 389 389
Depreciation 555 105 101 - 761
Amortization of
purchased
intangibles 845 346 - - 1,191
--------- --------- ---------- --------- ----------
Adjusted EBITDA $ 13,106 $ 325 $ 912 $ - $ 14,343
========= ========= ========== ========= ==========
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, 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
========= ========= ========== ========= ==========
For the twelve months ended December 31, 2007
-----------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
--------- --------- ---------- --------- ----------
(unaudited)
Income from
operations $ 38,902 $ (126) $ 1,417 $ (1,301) $ 38,892
Adjustments:
Stock-based
compensation - - - 1,301 1,301
Depreciation 1,746 105 305 - 2,156
Amortization of
purchased
intangibles 845 346 - - 1,191
--------- --------- ---------- --------- ----------
Adjusted EBITDA $ 41,493 $ 325 $ 1,722 $ - $ 43,540
========= ========= ========== ========= ==========
Three months ended Twelve months ended
December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
(unaudited) (unaudited)
Net income $ 5,390 $ 6,929 $ 24,068 $ 24,587
Interest expense 1,269 765 5,472 722
Interest income (212) (164) (689) (698)
Provision for income taxes 2,670 4,334 9,206 14,147
Depreciation 909 761 4,531 2,156
Amortization of purchased
intangible assets 1,193 1,191 7,382 1,191
--------- --------- --------- ---------
EBITDA 11,219 13,816 49,970 42,105
Stock-based compensation 874 389 3,237 1,301
Other expense 40 162 269 158
Equity in earnings of joint
ventures (4) (24) (274) (24)
--------- --------- --------- ---------
Adjusted EBITDA $ 12,129 $ 14,343 $ 53,202 $ 43,540
========= ========= ========= =========
Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044