NASDAQ$BOOM

Dmc Global Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported financial results for the third quarter ended September 30, 2020.

DMC Global reported consolidated third quarter sales of $55.3 million, a 28% increase sequentially and a 45% decrease compared to Q3 2019. Net income was $1.0 million, or $0.07 per diluted share.

  • Consolidated third quarter sales were $55.3 million, up 28% sequentially and down 45% from Q3 2019
  • Gross margin was 25%, up from 15% in Q2 2020 and down from 36% in Q3 2019
  • Operating income was $1.5 million versus $12.8 million in Q3 2019
  • Cash and cash equivalents at September 30, 2020, were $24.6 million, up from $17.2 million at June 30, 2020

Headline financials

Total Revenue

$55.3M

Previous: $100M-44.8%
EPS (adj)

$0.08

Previous: $0.90-91.1%
NobelClad Order Backlog

$42.6M

No prior period
Book-to-Bill Ratio

1.09

No prior period
Adjusted EBITDA

$6M

Previous: $23.2M-74.1%
Capital Expenditures

-$9.68M

Previous: -$22.4M+56.7%
Free Cash Flow

-$8.67M

Previous: -$15.5M+43.9%
Net Income

$1.01M

Previous: $6.92M-85.4%
Operating Income

$1.47M

Previous: $12.8M-88.6%
Gross Profit

$13.6M

Previous: $36.2M-62.5%
Cash & Equivalents

$24.6M

Previous: $12.2M+102.0%
Total Assets

$259M

Previous: $276M-6.0%
Stock-Based Comp

$1.6M

Previous: $1.24M+28.4%

Revenue & EPS history

DMC Global · Revenue · Quarterly

$55.3M

Q3 2020-44.8%vs Q3 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

Fourth quarter 2020 sales are expected in a range of $50 million to $55 million versus the $55.3 million reported in the 2020 third quarter. Consolidated gross margin is expected in a range of 20% to 23% versus 25% in the 2020 third quarter. Adjusted EBITDA is expected in a range of $2 million to $4 million versus the $6.0 million in the third quarter of 2020.

Tailwinds

  • DynaEnergetics anticipates fourth quarter demand from North America’s unconventional market will be consistent with the third quarter.
  • Shipments began on the first major order from the engineered wood industry, which NobelClad expects could become a long-term end market.
  • DynaEnergetics’ customers were able to quickly accelerate operations, in part by deploying our Factory-assembled, Performance-Assured™ DS perforating systems, which are delivered just-in-time to the wellsite.
  • NobelClad reported better-than-expected order shipments.
  • DynaEnergetics made several additions to its product portfolio during the third quarter, including the DS MicroSet™, a compact, disposable setting tool used to install the plug at the end of each stage in an unconventional oil or gas well.

Headwinds

  • DynaEnergetics also expects a seasonal decline in international order volume, which is expected to accelerate again in the first half of 2021.
  • The environment for North America’s unconventional oil and gas industry remains challenging, and most operators and service companies are actively streamlining operations and reducing costs.
  • Consolidated gross margin is expected in a range of 20% to 23% versus 25% in the 2020 third quarter. The anticipated sequential decline reflects an expected seasonal drop in higher-margin international sales at DynaEnergetics, and a less favorable project mix at NobelClad.
  • Third quarter selling, general and administrative (SG&A) expense is expected to be approximately $12 million versus the $11.6 million reported in the 2020 third quarter.
  • Adjusted EBITDA is expected in a range of $2 million to $4 million versus the $6.0 million in the third quarter of 2020.

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 Q3 2020

Historical avgQ3 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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