NASDAQ$BOOM

Dmc Global Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported financial results with corrected non-GAAP adjusted earnings per share for the fourth quarter and full-year ended December 31, 2021.

DMC Global reported Q4 sales of $71.8 million, a 26% increase year-over-year, but experienced a net loss of $2.8 million. The sequential improvement reflects a 15% sales increase at DynaEnergetics, DMC’s energy products business. The acquisition of Arcadia, which serves both commercial and high-end residential markets, increased DMC’s total addressable market from $2 billion to approximately $7 billion.

  • Fourth quarter sales were $71.8 million, up 7% sequentially and 26% versus Q4 2020
  • Fourth quarter gross margin was 18% versus 25% in Q3 2021 and 21% in Q4 2020
  • Fourth quarter net loss attributable to DMC was $2.8 million
  • Fourth quarter adjusted net income attributable to DMC was $197,000, or $0.01 per diluted share

Headline financials

Total Revenue

$71.8M

Previous: $57.1M+25.8%
EPS (adj)

$0.01

Previous: -$0.05+120.0%
NobelClad Order Backlog

$41.2M

Previous: $39.9M+3.3%
Book-to-Bill Ratio

1.03

No prior period
Adjusted EBITDA

$2.83M

Previous: $3.6M-21.4%
Capital Expenditures

$2.31M

Previous: $4.17M-44.6%
Free Cash Flow

-$13.2M

Previous: $4.84M-373.2%
Net Income

-$3.57M

Previous: -$927K-285.0%
Operating Income

-$5.5M

Previous: -$818K-572.0%
Gross Profit

$12.9M

Previous: $12.2M+6.1%
Cash & Equivalents

$30.8M

Previous: $28.2M+9.3%
Total Assets

$864M

Previous: $280M+209.1%
Stock-Based Comp

$1.67M

Previous: $1.52M+9.8%

Revenue & EPS history

DMC Global · Revenue · Quarterly

$71.8M

Q4 2021+25.8%vs Q4 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

DMC Global anticipates first quarter 2022 consolidated sales to be in the range of $125 million to $135 million with a gross margin between 25% and 27%. Adjusted EBITDA is expected to be $8.0 million to $10.0 million.

Tailwinds

  • Arcadia is expected to report sales of $57 million to $61 million.
  • DynaEnergetics is expected to report sales in a range of $48 million to $52 million.
  • Capital expenditures are expected to be $2.0 million to $4.0 million.
  • For the balance of 2022, amortization expense is expected to be approximately $13.5 million in the second quarter, $7.0 million in the third quarter and $4.0 million in the fourth quarter.
  • After amortizing the backlog value, 2023 quarterly amortization expense is expected to be approximately $4.0 million.

Headwinds

  • NobelClad’s sales are expected in a range of $20 million to $21 million.
  • First quarter selling, general and administrative (SG&A) expense is expected in a range of $25.5 million to $26.5 million.
  • First quarter amortization expense is expected to be approximately $13.5 million, and relates principally to the acquired trade names, customer relationships and backlog of Arcadia.
  • First quarter 2022 depreciation expense is expected to be $4.0 million
  • Interest expense is expected to be approximately $1.0 million

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 Q4 2021

Historical avgQ4 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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