-- Company Reports Q3 EPS of $.08 on Sales of $34.7 Million
-- Year-to-date Cash Flow from Operations at $23.4 Million
-- Explosion Welding Order Backlog Increases to $63 Million
Dynamic Materials Corporation (DMC) (
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(Dollars in Thousands, Except Share Data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
NET SALES $ 34,690 $ 52,380 $ 122,268 $ 173,957
COST OF PRODUCTS SOLD 25,936 35,355 89,032 120,171
---------- ---------- ---------- ----------
Gross profit 8,754 17,025 33,236 53,786
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
General and
administrative
expenses 2,749 3,679 9,318 10,612
Selling expenses 2,212 2,611 6,376 8,085
Amortization expense of
purchased intangible
assets 1,293 1,363 3,709 6,188
---------- ---------- ---------- ----------
Total costs and
expenses 6,254 7,653 19,403 24,885
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 2,500 9,372 13,833 28,901
OTHER INCOME (EXPENSE):
Other expense (633) (268) (560) (227)
Interest expense (752) (1,469) (2,521) (4,203)
Interest income 41 153 145 477
Equity in earnings
(losses) of joint
ventures 91 (19) 170 270
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 1,247 7,769 11,067 25,218
INCOME TAX PROVISION 151 546 3,540 6,535
---------- ---------- ---------- ----------
NET INCOME $ 1,096 $ 7,223 $ 7,527 $ 18,683
========== ========== ========== ==========
INCOME PER SHARE:
Basic $ 0.09 $ 0.57 $ 0.59 $ 1.48
========== ========== ========== ==========
Diluted $ 0.08 $ 0.57 $ 0.58 $ 1.47
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING -
Basic 12,632,406 12,463,060 12,597,023 12,426,369
========== ========== ========== ==========
Diluted 12,645,500 12,556,320 12,621,970 12,546,743
========== ========== ========== ==========
DIVIDENDS DECLARED PER
COMMON SHARE $ 0.04 $ - $ 0.08 $ 0.15
========== ========== ========== ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
September 30, December 31,
2009 2008
ASSETS (unaudited)
------------- -------------
Cash and cash equivalents $ 30,031 $ 14,360
Accounts receivable, net 21,945 34,719
Inventories 32,565 35,300
Other current assets 6,643 6,670
------------- -------------
Total current assets 91,184 91,049
Property, plant and equipment, net 40,768 40,457
Goodwill, net 44,045 43,066
Purchased intangible assets, net 50,137 52,264
Other long-term assets 2,785 2,750
------------- -------------
Total assets $ 228,919 $ 229,586
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 9,403 $ 15,402
Dividend payable 515 -
Accrued income taxes 72 846
Other current liabilities 12,401 15,049
Current portion of long-term debt 10,690 14,450
------------- -------------
Total current liabilities 33,081 45,747
Long-term debt 45,957 46,178
Deferred tax liabilities 15,909 16,833
Other long-term liabilities 1,803 2,326
Stockholders' equity 132,169 118,502
------------- -------------
Total liabilities and stockholders' equity $ 228,919 $ 229,586
============= =============
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(Dollars in Thousands)
(unaudited)
2009 2008
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 7,527 $ 18,683
Adjustments to reconcile net income to net cash
provided by operating activities -
Depreciation (including capital lease
amortization) 3,701 3,621
Amortization of purchased intangible assets 3,709 6,188
Amortization of capitalized debt issuance costs 215 210
Stock-based compensation 2,657 2,363
Deferred income tax benefit (1,875) (2,735)
Equity in earnings of joint ventures (170) (270)
Change in working capital, net 7,650 (3,255)
-------- --------
Net cash provided by operating activities 23,414 24,805
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and equipment (3,238) (7,325)
Change in other non-current assets 42 50
-------- --------
Net cash used in investing activities (3,196) (7,275)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on syndicated credit agreement (3,912) -
Borrowings on lines of credit, net - 7,247
Payments on long-term debt (653) (1,251)
Payments on capital lease obligations (132) (308)
Payment of dividends (513) (1,894)
Payment of deferred debt issuance costs (58) (167)
Net proceeds from issuance of common stock 373 333
Excess tax benefit related to stock options 90 9
-------- --------
Net cash provided by (used in) financing
activities (4,805) 3,969
-------- --------
EFFECTS OF EXCHANGE RATES ON CASH 258 (36)
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS 15,671 21,463
CASH AND CASH EQUIVALENTS, beginning of the period 14,360 9,045
-------- --------
CASH AND CASH EQUIVALENTS, end of the period $ 30,031 $ 30,508
======== ========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Dollars in thousands)
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
(unaudited) (unaudited)
Explosive Metalworking Group $ 27,327 $ 42,703 $ 102,403 $ 147,344
Oilfield Products 5,123 6,756 13,171 19,128
AMK Welding 2,240 2,921 6,694 7,485
--------- --------- --------- ---------
Net sales $ 34,690 $ 52,380 $ 122,268 $ 173,957
========= ========= ========= =========
Explosive Metalworking Group $ 3,370 $ 8,593 $ 17,381 $ 28,393
Oilfield Products (414) 725 (2,013) 775
AMK Welding 441 874 1,122 2,096
Unallocated expenses (897) (820) (2,657) (2,363)
--------- --------- --------- ---------
Income from operations $ 2,500 $ 9,372 $ 13,833 $ 28,901
========= ========= ========= =========
For the three months ended September 30, 2009
------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
---------- --------- ---------- --------- ----------
(unaudited)
Income (loss) from
operations $ 3,370 $ (414) $ 441 $ (897) $ 2,500
Adjustments:
Stock-based
compensation - - - 897 897
Depreciation 910 236 114 1,260
Amortization of
purchased
intangibles 617 676 - - 1,293
---------- --------- ---------- --------- ----------
Adjusted EBITDA $ 4,897 $ 498 $ 555 $ - $ 5,950
========== ========= ========== ========= ==========
For the three months ended September 30, 2008
------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
---------- --------- ---------- --------- ----------
(unaudited)
Income from
operations $ 8,593 $ 725 $ 874 $ (820) $ 9,372
Adjustments:
Stock-based
compensation - - - 820 820
Depreciation 924 234 109 - 1,267
Amortization of
purchased
intangibles 650 713 - - 1,363
---------- --------- ---------- --------- ----------
Adjusted EBITDA $ 10,167 $ 1,672 $ 983 $ - $ 12,822
========== ========= ========== ========= ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Dollars in thousands)
For the nine months ended September 30, 2009
------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
---------- --------- ---------- --------- ----------
(unaudited)
Income (loss) from
operations $ 17,381 $ (2,013) $ 1,122 $ (2,657) $ 13,833
Adjustments:
Stock-based
compensation - - - 2,657 2,657
Depreciation 2,683 676 342 - 3,701
Amortization of
purchased
intangibles 1,769 1,940 - - 3,709
---------- --------- ---------- --------- ----------
Adjusted EBITDA $ 21,833 $ 603 $ 1,464 $ - $ 23,900
========== ========= ========== ========= ==========
For the nine months ended September 30, 2008
------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
---------- --------- ---------- --------- ----------
(unaudited)
Income from
operations $ 28,393 $ 775 $ 2,096 $ (2,363) $ 28,901
Adjustments:
Stock-based
compensation - - - 2,363 2,363
Depreciation 2,593 704 324 - 3,621
Amortization of
purchased
intangibles 4,026 2,162 - - 6,188
---------- --------- ---------- --------- ----------
Adjusted EBITDA $ 35,012 $ 3,641 $ 2,420 $ - $ 41,073
========== ========= ========== ========= ==========
Three months ended Nine months ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
(unaudited) (unaudited)
Net income $ 1,096 $ 7,223 $ 7,527 $ 18,683
Interest expense 752 1,469 2,521 4,203
Interest income (41) (153) (145) (477)
Provision for income taxes 151 546 3,540 6,535
Depreciation 1,260 1,267 3,701 3,621
Amortization of purchased
intangible assets 1,293 1,363 3,709 6,188
-------- -------- -------- --------
EBITDA 4,511 11,715 20,853 38,753
Stock-based compensation 897 820 2,657 2,363
Other expense 633 268 560 227
Equity in (earnings) / loss of
joint ventures (91) 19 (170) (270)
-------- -------- -------- --------
Adjusted EBITDA $ 5,950 $ 12,822 $ 23,900 $ 41,073
======== ======== ======== ========
Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044