NASDAQ$BOOM

Dmc Global Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported financial results with increased sales and improved gross margin.

DMC Global reported a strong second quarter with sales increasing 18% sequentially and 51% year-over-year to $65.4 million. Gross margin improved to 26%, and net income was $1.7 million, or $0.10 per diluted share. Adjusted EBITDA increased to $7.5 million, and the company ended the quarter with $181.3 million in cash and marketable securities.

  • Second quarter sales were $65.4 million, up 18% sequentially and 51% from Q2 2020.
  • Gross margin improved to 26% versus 23% in Q1 2021 and 15% in Q2 2020.
  • Net income was $1.7 million, or $0.10 per diluted share.
  • Adjusted EBITDA increased to $7.5 million versus $4.0 million in Q1 2021 and negative $1.8 million in Q2 2020.

Headline financials

Total Revenue

$65.4M

Previous: $43.2M+51.5%
EPS (adj)

$0.10

Previous: -$0.29+134.5%
Capital Expenditures

-$3.25M

Previous: -$7.48M+56.5%
Free Cash Flow

-$1.53M

Previous: -$13.1M+88.4%
Net Income

$1.72M

Previous: -$5.65M+130.5%
Operating Income

$2.67M

Previous: -$7.99M+133.4%
Gross Profit

$17M

Previous: $6.6M+157.0%
Cash & Equivalents

$36.4M

Previous: $17.2M+110.8%
Total Assets

$434M

Previous: $252M+72.3%
Stock-Based Comp

$1.73M

Previous: $1.44M+19.8%

Revenue & EPS history

DMC Global · Revenue · Quarterly

$65.4M

Q2 2021+51.5%vs Q2 2020
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

Third quarter 2021 sales are expected to be in a range of $70 million to $73 million. Consolidated gross margin is expected in a range of 24% to 26%. Adjusted EBITDA is expected in a range of $6.5 million to $8.5 million.

Tailwinds

  • DynaEnergetics expects demand from North America’s onshore unconventional oil and gas market will continue to improve in the third quarter.
  • NobelClad’s sales are expected in a range of $24 million to $25 million.
  • Pricing at DynaEnergetics is expected to improve during the second half of the year.
  • DynaEnergetics is expected to report third quarter sales in a range of $46 million to $48 million.
  • Third quarter 2021 sales are expected to be in a range of $70 million to $73 million.

Headwinds

  • The growth is expected to be partially offset by lower sales in the Middle East.
  • The potential decline (in gross margin) relates to the expected increase in North American sales versus higher margin international sales at DynaEnergetics
  • Inflationary pressures that will likely offset pricing increases.
  • Gross margin at NobelClad also is expected to decline due to a less favorable project mix.
  • Employee retention credits under the CARES Act that are expected to roll off in the fourth quarter of 2021.

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 2021

Historical avgQ2 2021

+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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