NASDAQ$BOOM

Dmc Global Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

DMC Global's financial performance declined due to a collapse in oil and gas demand and the impact of the COVID-19 pandemic.

DMC Global reported a significant decrease in sales and profitability for the second quarter of 2020, primarily due to the sharp decline in oil and gas demand affecting DynaEnergetics, though NobelClad showed more resilience. Consolidated sales were $43.2 million, a 61% decrease year-over-year, and the company experienced an operating loss of $8.0 million compared to an operating income of $24.7 million in Q2 2019.

  • Consolidated sales decreased by 61% year-over-year, totaling $43.2 million.
  • DynaEnergetics' sales dropped significantly due to decreased well-completion activity.
  • NobelClad's sales declined modestly, and the company is pursuing opportunities in a broader range of end markets.
  • The company is adjusting its cost structure and investing in technology and product development.

Headline financials

Total Revenue

$43.2M

Previous: $111M-61.1%
EPS (adj)

-$0.29

Previous: $1.17-124.8%
Capital Expenditures

-$7.48M

Previous: -$16.3M+54.1%
Free Cash Flow

-$13.1M

Previous: $961K-1465.7%
Net Income

-$5.65M

Previous: $17.2M-132.8%
Operating Income

-$7.99M

Previous: $24.7M-132.4%
Gross Profit

$6.6M

Previous: $42.1M-84.3%
Cash & Equivalents

$17.2M

Previous: $14.9M+15.9%
Total Assets

$252M

Previous: $285M-11.6%
Stock-Based Comp

$1.44M

Previous: $1.5M-3.6%

Revenue & EPS history

DMC Global · Revenue · Quarterly

$43.2M

Q2 2020-61.1%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
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 third quarter 2020 sales to be in the range of $45 million to $50 million, with DynaEnergetics expected to report sales between $27 million and $30 million, and NobelClad between $18 million and $20 million. The consolidated gross margin is projected to be between 20% and 24%, and adjusted EBITDA is expected to be in the range of $1.5 million to $4.0 million.

Tailwinds

  • Sales are expected to increase slightly compared to Q2 2020
  • DynaEnergetics sales are expected to increase in Q3 2020
  • Gross margin is expected to improve compared to Q2 2020
  • SG&A expense is expected to decrease slightly
  • The company anticipates ending Q3 in a neutral to slightly positive net cash position.

Headwinds

  • Uncertainty in global economic activity
  • Potential delays in customer projects
  • Pricing pressure in the oilfield services industry
  • Risk of further declines in well-completion activity
  • Potential impacts from COVID-19

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 Q2 2020

Historical avgQ2 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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