NASDAQ$BOOM

Dmc Global Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

DMC Global's Q4 2023 financial performance was reported, marked by varied conditions across industrial end markets and strategic initiatives to enhance stakeholder value.

DMC Global reported flat sales compared to Q4 2022, with varied performance across its segments. While Arcadia faced pricing pressures, NobelClad delivered strong growth. The company is exploring strategic alternatives for NobelClad and DynaEnergetics to unlock shareholder value.

  • Fourth quarter sales were $174.0 million, flat versus Q4 2022.
  • Net income attributable to DMC was $2.8 million.
  • Adjusted EBITDA attributable to DMC was $19.6 million.
  • Free-cash flow was $15.0 million.

Headline financials

Total Revenue

$174M

Previous: $175M-0.6%
EPS (adj)

$0.26

Previous: $0.22+18.2%
Capital Expenditures

-$8.52M

Previous: $7.31M-216.6%
Net Income

$3.57M

Previous: $3.44M+3.7%
Operating Income

$9.26M

Previous: $10.6M-12.4%
Gross Profit

$45.4M

Previous: $45.1M+0.6%
Stock-Based Comp

$1.71M

Previous: $3.17M-45.9%

Revenue & EPS history

DMC Global · Revenue · Quarterly

$174M

Q4 2023-0.6%vs Q4 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 first quarter 2024 guidance with consolidated sales expected to be in the range of $168 million to $178 million and adjusted EBITDA attributable to DMC expected to be in the range of $15M - $20M.

Tailwinds

  • Strong demand for the new Gravity 2.0 self-orienting perforating system should be additive to the expected margin benefits of improved manufacturing efficiencies at Dyna.
  • 2024 will be another strong year at NobelClad, as there are a broad range of large project opportunities for both traditional and new clad-plate applications.
  • The recent addition of new painting capacity has improved Arcadia’s ability to capitalize on expected increases in activity.
  • New automation and operational-excellence initiatives coming on-line in 2024 will improve profitability at Dyna.
  • Arcadia will experience improved demand during the balance of the year.

Headwinds

  • Challenging conditions in Arcadia’s markets will lead to a soft first quarter.
  • Industry consolidation in the United States impacted pricing at DynaEnergetics.
  • Lower pricing impacted several of Arcadia’s markets in the western and southwestern United States.
  • Fourth quarter 2023 adjusted EBITDA was negatively impacted by $1.0 million in bad debt expense at DynaEnergetics.
  • NobelClad ended 2023 with an order backlog of $59 million versus $61 million at the end of the third quarter.

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 2023

Historical avgQ4 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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