Dynamic Materials Reports First Quarter Financial Results
May 05 2005 - 8:00AM
PR Newswire (US)
Dynamic Materials Reports First Quarter Financial Results Selected
Highlights BOULDER, Colo., May 5 /PRNewswire-FirstCall/ -- Dynamic
Materials Corporation (DMC) (NASDAQ:BOOM), the world's leading
provider of explosion- bonded clad metal plates and associated
services, today reported financial results for the first quarter
ended March 31, 2005. First quarter sales advanced 72% to $17.5
million from $10.2 million in the first quarter of 2004. Gross
profit margin increased to 27% from 22% in last year's first
quarter, reflecting a more favorable absorption of fixed
manufacturing expenses within the European operations of the
Company's Explosive Metalworking Group. Income from operations
increased 247% to $2.7 million from $0.8 million in the first
quarter last year. Net income increased 692% to $1.6 million, or
$0.28 per diluted share, versus net income of $0.2 million, or
$0.04 per diluted share, in the comparable year-ago quarter. Net
income in last year's first quarter was impacted by a $0.2 million
loss from discontinued operations, which resulted from operating
losses by the Company's former Spin Forge division. Explosive
Metalworking Group Sales at DMC's Explosive Metalworking Group
advanced 76% to $17.0 million from $9.7 million in last year's
first quarter. Operating income in the quarter increased to $2.8
million from $0.8 million in the comparable period last year.
Record first quarter bookings, which included a $5.3 million order
for work on a nickel hydrometallurgy project in New Caledonia,
helped fuel a 24% sequential increase in the Group's order backlog.
At March 31, 2005, backlog totaled an all-time high $34.1 million
compared with the previous high of $27.5 million at December 31,
2004. AMK Welding Sales from the Company's AMK Welding division
increased 9% to $0.54 million from $0.50 million in the first
quarter last year. The division reported an operating loss of $0.11
million versus an operating loss of $0.05 million in the 2004 first
quarter. The increased operating loss reflects greater spending by
the division as it prepares for a significant ramp-up in business
activity. AMK is expecting the second-quarter commencement of
production work on a customer's ground-based turbine program. As a
result, management expects marked improvement in AMK's sales and
operating results during the remaining quarters of fiscal 2005.
Management Commentary Yvon Cariou, president and CEO, stated, "We
remain very encouraged by the robust sales and production activity
being reported across all segments of our Explosive Metalworking
Group. Our achievement of both record bookings and solid revenue
growth in the same quarter is indicative of the current strength of
our business. Improving economic conditions in our primary target
markets is clearly having a positive impact on demand." Cariou
added, "We also are encouraged by the upcoming increase in activity
at our specialty welding business. AMK played an important role in
the development of a customer's ground-based turbine product, and
will now participate in the commercial production phase. This
step-up in activity should make 2005 a strong year for AMK." "In
addition to our emphasis on revenue and earnings growth, we also
are focused on strengthening our balance sheet. In the coming
quarters, we will work to further reduce our current debt levels."
About Dynamic Materials Corporation Based in Boulder, Colorado,
Dynamic Materials Corporation is a leading international
metalworking company. Its products include explosion-bonded clad
metal plates and other metal fabrications for use in a variety of
industries, including petrochemicals, refining, hydrometallurgy,
aluminum smelting and shipbuilding. The Company operates two
business segments: the Explosive Metalworking Group, which uses
proprietary explosive processes to fuse dissimilar metals and
alloys, and AMK Welding, which utilizes various technologies to
weld components for use in power-generation turbines, as well as
commercial and military jet engines. With more than 30 years of
international experience, DMC has captured a commanding share of
the worldwide market for explosion-bonded clad metals. For more
information, visit the Company's website at
http://www.dynamicmaterials.com/. Except for the historical
information contained herein, this news release contains
forward-looking statements that involve risks and uncertainties
including, but not limited to, the following: the ability to obtain
new contracts at attractive prices; the size and timing of customer
orders; fluctuations in customer demand; competitive factors; the
timely completion of contracts; the timing and size of
expenditures; the timely receipt of government approvals and
permits; the adequacy of local labor supplies at the Company's
facilities; the availability and cost of funds; and general
economic conditions, both domestically and abroad; as well as the
other risks detailed from time to time in the Company's SEC
reports, including the report on Form 10-K for the year ended
December 31, 2004. DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED
MARCH 31, 2005 AND 2004 (Dollars in Thousands, Except Per Share
Data) (unaudited) 2005 2004 NET SALES $17,510 $10,160 COST OF
PRODUCTS SOLD 2,860 7,895 Gross profit 4,650 2,265 COSTS AND
EXPENSES: General and administrative expenses 809 727 Selling
expenses 1,126 756 Total costs and expenses 1,935 1,483 INCOME FROM
OPERATIONS OF CONTINUING OPERATIONS 2,715 782 OTHER INCOME
(EXPENSE): Other income 5 5 Interest expense (86) (124) Interest
income 4 4 INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS
2,638 667 INCOME TAX PROVISION 990 261 INCOME FROM CONTINUING
OPERATIONS BEFORE DISCONTINUED OPERATIONS 1,648 406 LOSS FROM
OPERATIONS OF DISCONTINUED OPERATIONS, NET OF TAX -- (198) NET
INCOME 1,648 $208 INCOME (LOSS) PER SHARE - BASIC: Continuing
operations $0.31 $0.08 Discontinued operations -- (0.04) Net income
$0.31 $0.04 INCOME (LOSS) PER SHARE - DILUTED: Continuing
operations $0.28 $0.08 Discontinued operations -- (0.04) Net income
$0.28 $0.04 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic
5,347,130 5,089,549 Diluted 5,930,550 5,366,934 DYNAMIC MATERIALS
CORPORATION & SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands) March 31, December 31, 2005 2004 (unaudited)
ASSETS Cash and cash equivalents $1,523 $2,404 Accounts receivable,
net 12,539 13,936 Inventories 8,424 8,000 Other current assets
1,232 1,906 Total current assets 23,718 26,246 Property, plant and
equipment, net 11,763 11,844 Other long-term assets 5,690 5,663
Total assets $41,171 $43,753 LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $6,014 $6,041 Other current liabilities 3,979
4,519 Bank lines of credit 171 3,216 Current portion of long-term
debt 2,169 3,186 Total current liabilities 12,333 16,962 Long-term
debt 2,797 2,906 Other long-term liabilities 3,773 3,815
Stockholders' equity 22,268 20,070 Total liabilities and
stockholders' equity $41,171 $43,753 DYNAMIC MATERIALS CORPORATION
& SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (Dollars in
Thousands) (unaudited) 2005 2004 CASH FLOWS FROM OPERATING
ACTIVITIES: Income from continuing operations $1,648 $406
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities - Depreciation and
amortization 366 342 Provision for deferred income taxes (14) 256
Tax benefit related to stock options 214 -- Change in working
capital, net 27 343 Net cash flows provided by operating activities
2,241 1,347 CASH FLOWS FROM INVESTING ACTIVITIES: Payment received
on other receivable 874 -- Acquisition of property, plant and
equipment (577) (490) Change in other non-current assets 91 6 Net
cash flows provided by (used in) investing activities 388 (484)
CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings / (repayments) on
lines of credit, net (3,170) 100 Payments on long-term debt (907)
(558) Net proceeds from issuance of common stock 620 12 Other cash
flows from financing activities 4 4 Net cash flows used in
financing activities (3,453) (442) EFFECTS OF EXCHANGE RATES ON
CASH (57) (19) CASH FLOWS USED IN DISCONTINUED OPERATIONS -- (401)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (881) 1 CASH
AND CASH EQUIVALENTS, beginning of the period 2,404 522 CASH AND
CASH EQUIVALENTS, end of the period $1,523 $523 DATASOURCE: Dynamic
Materials Corporation CONTACT: Geoff High of Pfeiffer High Investor
Relations, Inc., +1-303-393-7044, for Dynamic Materials Corporation
Web site: http://www.dynamicmaterials.com/
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