NASDAQ$BOOM

Dmc Global Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record sales and margin expansion, with NobelClad's order backlog reaching a 10-year high.

DMC Global reported a strong start to 2023 with record consolidated sales of $184.3 million, up 5% sequentially and 33% year-over-year. The company saw improvements in gross margins across its businesses, and NobelClad's order backlog reached a 10-year high.

  • First quarter sales reached a record $184.3 million, a 5% sequential increase and a 33% increase compared to Q1 2022.
  • Consolidated gross margin improved to 28%, up from 26% in Q4 2022 and 27% in Q1 2022.
  • Net income was $2.1 million, with net income attributable to DMC at $0.9 million.
  • Adjusted EBITDA attributable to DMC was $20.1 million, and total adjusted EBITDA, including non-controlling interest, was $24.3 million.

Headline financials

Total Revenue

$184M

Previous: $139M+32.9%
EPS (adj)

$0.32

Previous: -$0.16+300.0%
Capital Expenditures

-$2.23M

Previous: -$1.54M-44.9%
Free Cash Flow

-$1.32M

Previous: -$4.82M+72.7%
Net Income

$909K

Previous: -$3.29M+127.6%
Operating Income

$7.22M

Previous: -$3.91M+284.7%
Gross Profit

$52.2M

Previous: $36.9M+41.5%
Cash & Equivalents

$19.6M

Previous: $15.4M+27.8%
Total Assets

$904M

Previous: $864M+4.6%
Stock-Based Comp

$5.03M

Previous: $2.36M+113.2%

Revenue & EPS history

DMC Global · Revenue · Quarterly

$184M

Q1 2023+32.9%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
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 provided guidance for the second quarter of 2023, including sales, gross margin, SG&A, depreciation & amortization, interest expense, tax rate, adjusted EBITDA, and capital expenditures. They anticipate sequential sales growth at NobelClad and expect growth and improved profitability for the full year 2023.

Tailwinds

  • DMC Consolidated sales are expected to be between $177 million and $187 million.
  • Consolidated gross margin is projected to be between 29% and 30%.
  • Consolidated SG&A is expected to be between $29 million and $31 million.
  • Adjusted EBITDA attributable to DMC is forecasted to be between $23 million and $26 million.
  • Adjusted EBITDA before NCI allocation is expected to be between $27 million and $30 million.

Headwinds

  • Arcadia sales are expected to be between $75 million and $80 million.
  • DynaEnergetics sales are expected to be between $78 million and $82 million.
  • NobelClad sales are expected to be between $24 million and $25 million.
  • Depreciation & Amortization is estimated to be around $9.2 million.
  • The annualized effective tax rate is projected to be between 28% and 30%.

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 2023

Historical avgQ1 2023

+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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