NASDAQ$BOOM

Dmc Global Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

DMC Global's financial performance declined due to the COVID-19 pandemic and related decrease in oil and gas demand.

DMC Global reported a decrease in consolidated sales, gross margin, and operating income for the first quarter of 2020 compared to both the previous quarter and the first quarter of 2019. The decline was attributed to lower demand for well perforating systems and decreased well completion activity due to the COVID-19 pandemic. The company has taken cost-containment actions, including workforce reductions and reduced spending, to maintain liquidity during the economic downturn.

  • Consolidated first quarter sales were $73.6 million, a decrease of 15% sequentially and 27% year-over-year.
  • Operating income decreased to $6.3 million, down 69% from Q1 2019.
  • Net income was $4.2 million, or $0.28 per diluted share.
  • The company suspended its dividend to maintain liquidity during the economic downturn.

Headline financials

Total Revenue

$73.6M

Previous: $100M-26.5%
EPS (adj)

$0.35

Previous: $1.02-65.7%
NobelClad Order Backlog

$41.3M

No prior period
Book-to-Bill Ratio

1.01

No prior period
Capital Expenditures

-$5.12M

Previous: -$6.6M+22.4%
Free Cash Flow

-$966K

Previous: $8.57M-111.3%
Net Income

$4.16M

Previous: $15.2M-72.6%
Operating Income

$6.35M

Previous: $20.5M-69.0%
Gross Profit

$24.5M

Previous: $36.4M-32.8%
Cash & Equivalents

$16.5M

Previous: $14.9M+10.6%
Total Assets

$269M

Previous: $266M+1.1%
Stock-Based Comp

$1.12M

Previous: $1.17M-4.5%

Revenue & EPS history

DMC Global · Revenue · Quarterly

$73.6M

Q1 2020-26.5%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

DMC Global · $57.1M total across 2 segments · Q4 2020

  • DynaEnergetics
    $35.3M-45.3%
  • NobelClad
    $21.8M+0.1%

Forward guidance

DMC Global anticipates a significant decline in second quarter well completions and is not providing financial guidance due to market volatility. The company is focused on maintaining liquidity, reducing costs, and investing in new technology.

Tailwinds

  • DMC has a strong financial position and efficient operating structure.
  • The company has taken aggressive action to maintain liquidity and reduce costs.
  • DMC is focused on innovation and creating value for customers.
  • DynaEnergetics expects increased adoption of its DynaStage perforating systems.
  • NobelClad reported a strong start to 2020 with high first-quarter bookings.

Headwinds

  • Global crude oil demand began to collapse late in the first quarter.
  • The demand decline has been exacerbated by rapidly rising crude supplies and dwindling storage capacity.
  • Operators and service companies are revising their activity plans daily.
  • Second quarter well completions could be down by more than 60% year over year.
  • Market volatility has made it very difficult to forecast near-term performance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+2.6%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.4%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+38.0%

Q4 2018

Best reaction

-29.3%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+21.5%+8.4%
Q4 2025-29.3%-32.4%-40.0%
Q3 2025-4.5%-24.6%-22.5%
Q1 2025+14.1%+3.9%+0.2%
Q4 2024+9.0%+2.0%+7.5%
Q3 2024-6.3%-6.1%-18.9%
Q2 2024-4.4%-11.1%-8.4%
Q1 2024-13.1%-16.9%-17.3%
Q4 2023-1.5%+1.7%+8.6%
Q3 2023-9.0%-13.1%-11.8%
Q2 2023+22.0%+18.1%+44.4%
Q1 2023+6.5%+1.0%+3.8%
Q4 2022+0.9%+7.5%-18.8%
Q3 2022+2.7%+1.6%-11.7%
Q2 2022+6.4%+12.6%+5.5%
Q1 2022+13.2%-2.1%+31.9%
Q4 2021-5.2%-19.7%-5.3%
Q3 2021+7.0%+11.3%-2.3%
Q2 2021-17.1%-14.0%-26.5%
Q1 2021-5.4%-4.9%-1.7%
Q4 2020-2.9%-2.4%-17.0%
Q3 2020+12.1%+2.8%+23.9%
Q2 2020-0.0%+4.6%+18.5%
Q1 2020+3.5%+0.8%+12.0%
Q4 2019+0.5%-3.7%-39.1%
Q3 2019+17.5%+15.7%+15.7%
Q2 2019-16.8%-14.4%-32.8%
Q1 2019-4.5%+3.4%-0.2%
Q4 2018+38.0%+36.6%+36.0%
Q3 2018+20.8%+22.0%+10.8%
Q2 2018-19.8%-17.5%-10.9%
Q1 2018+25.9%+23.2%+38.7%
Q4 2017+10.8%+22.5%+11.7%
Q3 2017+8.6%+13.3%+14.3%
Q2 2017+8.8%+8.8%-1.5%
Q1 2017+0.0%-11.8%-15.4%
Q4 2016-0.7%-7.1%-11.1%
Q3 2016+1.7%+5.7%+66.3%
Q2 2016-0.1%-1.2%+11.3%
Q1 2016+14.8%
Q4 2015+2.6%
Q3 2015-18.0%
Q2 2015+19.6%
Q1 2015+0.8%
Q4 2014-6.3%
Q3 2014+2.5%
Q2 2014+3.0%
Q1 2014+5.1%
Q4 2013-10.7%
Q3 2013-0.7%
Q2 2013+9.1%
Q1 2013-0.5%
Q4 2012-0.2%
Q3 2012+2.7%
Q2 2012-8.3%
Q1 2011+5.0%
Q1 2012+1.8%
Q4 2009+4.3%
Q4 2011+4.3%
Q3 2010+4.1%
Q3 2011+4.1%
Q4 2010+15.2%
Q2 2010+15.2%
Q2 2011+15.2%
Q1 2010-1.6%

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