Dynamic Materials Reports 2003 Financial Results BOULDER, Colo.,
March 15 /PRNewswire-FirstCall/ -- Dynamic Materials Corporation, ,
"DMC," today announced its results for the year ended December 31,
2003. For the year ended December 31, 2003, DMC reported income
from continuing operations of $588,249, or $.12 per diluted share,
versus income from continuing operations of $3,202,266, or $.63 per
diluted share, in 2002. DMC's 2003 sales were $40,277,970, an 8%
decrease from 2002 sales of $43,885,896. For the year ended
December 31, 2003, DMC reported a net loss of $709,158, or $.14 per
diluted share, as compared to net income of $170,219, or $.03 per
diluted share, in 2002. The net loss for 2003 reflects a loss from
discontinued operations of$1,297,407, or $.26 per diluted share,
including a loss from operations of $587,098 and a loss on sale of
$710,309 associated with the discontinued operations of its
Precision Machined Products division ("PMP"), which was sold on
October 7, 2003. Net income for 2002 was reduced by a transitional
goodwill impairment charge of $2,318,108, or $.46 per diluted
share, associated with the cumulative effect of a change in
accounting principle relating to the write-off of PMP goodwill as
well as a loss fromdiscontinued operations of $714,029, or $.14 per
diluted share, relating to the reclassification of PMP's 2002
operating loss to discontinued operations. Explosive Metalworking
Group Performance DMC's Explosive Metalworking Group reported 2003
sales of $33,043,448, a 7% decrease from sales of $35,603,415 in
2002. After eliminating the favorable foreign exchange effects of
approximately $2.25 million relating to the translation of
Nobelclad Europe's sales from Euros to U.S. dollars, the
year-to-year sales decline for the Explosive Metalworking Group
approximated $4.8 million, or 13%. The Group reported income from
operations of $2,854,818 in 2003 versus income from operations of
$6,149,962 for the year ended December 31, 2002. Management
attributes the significant decline in Explosive Metalworking Group
sales and operating income to a low December 31, 2002 backlog and a
slow flow of new orders during the first half of 2003.
Additionally, 2003 did not enjoy the benefit of a major project
ordersuch as that relating to Inco's Goro Nickel Project that
contributed more than $5 million to 2002 sales. Aerospace Group
Performance For the year ended December 31, 2003, the Aerospace
Group reported sales of $7,234,522, a decrease of 13% from the
$8,282,481 in sales the Group posted in 2002. This decrease in
sales was split evenly between the Group's remaining two operating
units, Spin Forge and AMK Welding. As a result of this sales
decline, the Aerospace Group reported an operating loss of $681,151
for 2003 as compared to a 2002 operating loss of $140,189. Spin
Forge reported operating losses in excess of $1.1 million in both
2003 and 2002, with its 2002 operating loss being almost entirely
offset by record 2002 operating income at AMK Welding. In
commenting upon the Company's 2003 results, Yvon Cariou, DMC's
president and CEO, stated, "While we are disappointed with the 2003
operating results of the Explosive Metalworking Group following the
record operating income that the Group reported in 2002, we are
encouraged by an improvement in the Group's backlog to
approximately $11.7 as of December 31, 2003 from approximately $8.6
million at the end of 2002 and the strong flow of new orders during
the early weeks of 2004. We expect to see significant improvement
in full year 2004 sales and operating income for the Explosive
Metalworking Group." Cariou continued, "Management is concerned
that the Aerospace Group, even without PMP, reported an operating
loss in 2003 and will continue to focus appropriate attention on
this segment of our business." 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 reports on Form 10-K for the year ended
December 31, 2002 and Form 10-Q for the quarterly periods ending
March 31, 2003, June 30, 2003 and September 30, 2003. Based in
Boulder, Colorado, Dynamic Materials Corporation is a leading
metalworking company, and its products include explosion bonded
clad metal plates and other metal fabrications for the
petrochemical, chemical processing, power generation, commercial
aircraft, defense and a variety of other industries. For more
information on Dynamic Materials Corporation visit the Company's
web site at http://www.dynamicmaterials.com/. DYNAMIC MATERIALS
CORPORATION & SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002 2003 2002
NET SALES $40,277,970 $43,885,896 COST OF PRODUCTS SOLD 31,405,999
31,921,432 Gross profit 8,871,971 11,964,464 COSTS AND EXPENSES:
General and administrative expenses 3,682,150 3,446,363 Selling
expenses 3,016,154 2,508,328 Total costs and expenses 6,698,304
5,954,691 INCOME FROM OPERATIONS 2,173,667 6,009,773 OTHER INCOME
(EXPENSE): Other expense (18,907) (52,425) Interest expense, net
(508,505) (689,129) INCOME BEFORE INCOME TAXES 1,646,255 5,268,219
INCOME TAX PROVISION 1,058,006 2,065,953 INCOME FROM CONTINUING
OPERATIONS BEFORE DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT OF
A CHANGE IN ACCOUNTING PRINCIPLE 588,249 3,202,266 DISCONTINUED
OPERATIONS: Loss from operations of discontinued operations, net of
tax benefit (587,098) (714,029) Loss on sale of discontinued
operations, net of tax benefit (710,309) -- Loss from discontinued
operations (1,297,407) (714,029) CUMULATIVE EFFECT OF A CHANGE IN
ACCOUNTINGPRINCIPLE, NET OF TAX BENEFIT OF $1,482,000 --
(2,318,108) NET INCOME (LOSS) $(709,158) $170,129 NET INCOME (LOSS)
PER SHARE - BASIC: Continuing operations $0.12 $0.64 Discontinued
operations (0.26) (0.15) Cumulative effect of a change in
accounting principle -- (0.46) Net Income (Loss) $(0.14) $0.03 NET
INCOME (LOSS) PER SHARE - DILUTED: Continuing operations $0.12
$0.63 Discontinued operations (0.26) (0.14) Cumulative effect of a
change in accounting principle -- (0.46) Net Income (Loss) $(0.14)
$0.03 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic
5,067,324 5,042,382 Diluted 5,110,806 5,087,051 Note -- 2002
amounts have been adjusted to present PMP results as discontinued
operations. DATASOURCE: Dynamic Materials Corporation CONTACT:
Richard A. Santa, Vice President and Chief Financial Officer of
Dynamic Materials Corporation, +1-303-604-3938 Web site:
http://www.dynamicmaterials.com/
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