In This Article:
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Consolidated Sales: $171 million, up 3% sequentially, down 9% year-over-year.
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Consolidated Gross Margin: 27.1%, up from 25.4% sequentially, down from 32.8% year-over-year.
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Adjusted EBITDA Margin: 14.3% of sales, up from 11.4% sequentially, down from 20.3% year-over-year.
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Adjusted Net Income: $5.7 million.
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Adjusted EPS: $0.29.
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Cash and Cash Equivalents: $15 million.
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Total Debt: $84 million.
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Net Debt: $70 million.
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Debt to Adjusted EBITDA Leverage Ratio: 1.1.
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Arcadia Sales: $69.7 million, gross margin 33.2%.
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DynaEnergetics Sales: $76.2 million, adjusted EBITDA margin 11.5%.
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NobelClad Sales: $25.2 million, adjusted EBITDA margin 22.7%.
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NobelClad Order Backlog: $64 million, up over 20% sequentially.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DMC Global Inc (NASDAQ:BOOM) reported second-quarter sales of $171.2 million, which exceeded the high end of their guidance range.
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Arcadia, the Building Products business, significantly improved its financial performance with second-quarter sales of $69.7 million and a gross margin increase of 600 basis points from the first quarter.
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NobelClad, the composite metals business, reported a strong adjusted EBITDA margin of 22.7% and a 20% increase in order backlog sequentially.
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DMC Global Inc (NASDAQ:BOOM) maintained a healthy debt to adjusted EBITDA leverage ratio of 1.1, well below the covenant threshold of 3.0.
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The company is actively pursuing strategic options to unlock shareholder value, indicating a proactive approach to enhancing investor returns.
Negative Points
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DynaEnergetics, the Energy Products business, experienced a 2% sequential decline in sales and a 10% decrease compared to the previous year's second quarter.
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The adjusted EBITDA margin for DynaEnergetics fell to 11.5%, down from 13.5% in the first quarter and 23% in the previous year's second quarter.
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DMC Global Inc (NASDAQ:BOOM) anticipates continued softness in North American completion activity for the second half of the year.
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The company faced a $500,000 bad debt expense in the second quarter, impacting financial performance.
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Arcadia's adjusted EBITDA margin is expected to moderate in the third quarter due to lower sales and less absorption of overhead expenses.
Q & A Highlights
Q: Revenue at Arcadia was ahead of forecast and gross margins were strong. Can you provide more details on the operational efficiencies and cost reductions implemented in this segment? Are these improvements sustainable? A: Michael Kuta, CEO: We've streamlined the organization and improved efficiency, particularly in our finishing operations, which are crucial for our customer service model. These efforts have increased capacity and productivity, driving sustainable improvements in the business.