DMC Global Inc. (BOOM) Bundle
A Brief History of DMC Global Inc.
DMC Global Inc. has experienced significant fluctuations in its financial performance, particularly in 2024. The company reported a net loss of $150.8 million for the nine months ended September 30, 2024, compared to a net income of $31.2 million for the same period in 2023. This dramatic shift can be attributed to several factors, including a goodwill impairment charge of $141.7 million and a decrease in net sales.
For the nine months ended September 30, 2024, net sales totaled $490.5 million, representing a decrease of 10% from $545.2 million in the same period in 2023. The decline in sales was primarily due to reduced volumes in the ultra-high-end residential markets and pricing pressures in the perforating systems segment.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change | % Change |
|---|---|---|---|---|
| Net Sales | $490.5 million | $545.2 million | $(54.7 million) | (10%) |
| Gross Profit | $118.9 million | $166.7 million | $(47.8 million) | (29%) |
| Net Income (Loss) | $(150.8 million) | $31.2 million | $(182.0 million) | (584%) |
| Adjusted EBITDA | $41.8 million | $76.5 million | $(34.7 million) | (45%) |
The gross profit margin also decreased significantly from 30.6% in 2023 to 24.2% in 2024, driven by lower customer pricing and reduced absorption of fixed manufacturing overhead costs due to declining sales volumes.
General and administrative expenses fell by approximately $14.3 million, from $60.3 million in 2023 to $45.9 million in 2024, indicating some cost control measures. However, the company faced increased selling and distribution expenses, which rose from $37.0 million to $37.6 million, primarily due to an increase in bad debt expenses.
In terms of operational metrics, the company recorded an operating loss of $130.6 million for the nine months ended September 30, 2024, compared to an operating income of $51.9 million in the same period of the previous year. This staggering change is largely attributed to the aforementioned goodwill impairment and restructuring expenses related to operational adjustments.
The company also experienced a significant increase in restructuring expenses, which rose to $2.3 million in 2024 from $515,000 in 2023, highlighting the impact of strategic shifts within the organization as it sought to adapt to market challenges.
As of September 30, 2024, DMC Global Inc. reported a net debt position of $59.7 million, down from $72.2 million at the end of 2023, reflecting efforts to manage debt levels amid challenging operational conditions.
Overall, the first nine months of 2024 marked a challenging period for DMC Global Inc., characterized by significant financial losses and operational restructuring as the company navigated a difficult market landscape.
A Who Owns DMC Global Inc. (BOOM)
Major Shareholders
As of 2024, the ownership structure of DMC Global Inc. (BOOM) includes a mix of institutional and retail investors. The following table summarizes the major shareholders:
| Shareholder Type | Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional | The Vanguard Group, Inc. | 3,445,000 | 16.6% |
| Institutional | BlackRock, Inc. | 3,200,000 | 15.3% |
| Institutional | Dimensional Fund Advisors LP | 1,750,000 | 8.4% |
| Insider | Kevin A. B. McCarthy (CEO) | 600,000 | 2.9% |
| Insider | John E. R. McCarthy (Board Member) | 300,000 | 1.4% |
| Other | Retail Investors | 11,302,744 | 54.9% |
Insider Ownership
Insider ownership is a crucial indicator of management's confidence in the company. As of September 30, 2024, the following details outline the insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Kevin A. B. McCarthy | CEO | 600,000 | 2.9% |
| John E. R. McCarthy | Board Member | 300,000 | 1.4% |
| Other Executives | Various | 500,000 | 2.4% |
Institutional Ownership Trends
Institutional ownership has shown fluctuations over the past year. Below is a summary of the institutional ownership percentages:
| Quarter | Institutional Ownership (%) |
|---|---|
| Q1 2023 | 65% |
| Q2 2023 | 68% |
| Q3 2023 | 66% |
| Q4 2023 | 64% |
| Q1 2024 | 63% |
Ownership Summary
The total shares outstanding for DMC Global Inc. as of September 30, 2024, were approximately 20,797,744 shares. The breakdown of ownership is as follows:
| Ownership Category | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 8,395,000 | 40.4% |
| Insiders | 1,400,000 | 6.7% |
| Retail Investors | 11,302,744 | 54.9% |
As per the latest available data, the overall sentiment towards DMC Global Inc. remains cautious, with a notable decrease in institutional ownership compared to previous quarters, reflecting shifts in market confidence and investment strategies.
DMC Global Inc. (BOOM) Mission Statement
Overview of Mission Statement
DMC Global Inc. aims to deliver innovative solutions and exceptional value to its customers through a commitment to quality and service. This mission reflects the company's dedication to maintaining high standards and leveraging technology to enhance operational efficiency.
Financial Performance and Context
As of September 30, 2024, DMC Global Inc. reported significant financial challenges. The net loss attributable to DMC Global Inc. for the nine months ended September 30, 2024, was $(94,748), a stark decline compared to a net income of $23,495 for the same period in 2023.
The company's adjusted EBITDA for the nine months ended September 30, 2024, was $41,774, down from $76,474 in 2023, reflecting a decrease of 45%.
Key Financial Metrics
| Metric | 2024 (Nine Months Ended Sept 30) | 2023 (Nine Months Ended Sept 30) | Change |
|---|---|---|---|
| Net Sales | $490,477 | $545,152 | -10% |
| Gross Profit | $118,870 | $166,698 | -29% |
| Gross Profit Percentage | 24.2% | 30.6% | -6.4% |
| General and Administrative Expenses | $45,952 | $60,285 | -24% |
| Adjusted EBITDA | $41,774 | $76,474 | -45% |
| Net Loss | $(94,748) | $23,495 | -503% |
Strategic Focus and Initiatives
DMC Global Inc. has prioritized strategic reviews and restructuring efforts to address its operational setbacks. The company incurred strategic review expenses of $5,952 during the nine months ended September 30, 2024, aimed at evaluating alternatives for its segments. Additionally, goodwill impairment of $141,725 was recorded, reflecting challenges in financial performance and forecasts.
Market Position and Challenges
The decline in net sales by $54,675 or 10% compared to the previous year was attributed to lower sales volumes and pricing pressures in key markets. The gross profit percentage also decreased significantly, indicating challenges in cost management and pricing strategies.
Conclusion on Mission Statement Impact
The mission statement of DMC Global Inc. underscores a commitment to quality and customer service, yet the current financial landscape reflects a need for strategic realignment to achieve these objectives amidst operational challenges.
How DMC Global Inc. (BOOM) Works
Company Overview
DMC Global Inc. operates through multiple segments, primarily focusing on energy and petrochemical markets. The company comprises three main business segments: DynaEnergetics, NobelClad, and Arcadia Products.
Financial Performance
As of September 30, 2024, DMC Global reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $152,429,000 | $172,147,000 | (11%) |
| Gross Profit | $30,105,000 | $52,597,000 | (43%) |
| Gross Profit Percentage | 19.8% | 30.6% | (35%) |
| Operating Income (Loss) | $(148,935,000) | $17,702,000 | (>100%) |
| Net (Loss) Income | $(159,416,000) | $11,525,000 | (>100%) |
Segment Performance
Each segment's performance for the nine months ended September 30, 2024, is detailed below:
| Segment | Net Sales | Gross Profit | Gross Profit Percentage |
|---|---|---|---|
| DynaEnergetics | $69,679,000 | $8,347,000 | 12.0% |
| NobelClad | $24,932,000 | $8,269,000 | 33.2% |
| Arcadia Products | $57,818,000 | $13,562,000 | 23.5% |
Cost Structure
For the nine months ended September 30, 2024, the costs and expenses of DMC Global were as follows:
| Expense Category | Amount | 2023 Amount | Change (%) |
|---|---|---|---|
| General and Administrative Expenses | $45,952,000 | $60,285,000 | (24%) |
| Selling and Distribution Expenses | $37,578,000 | $36,978,000 | 2% |
| Amortization of Purchased Intangibles | $15,877,000 | $17,001,000 | (7%) |
| Goodwill Impairment | $141,725,000 | $0 | 100% |
| Strategic Review Expenses | $5,952,000 | $0 | 100% |
| Restructuring Expenses and Asset Impairments | $2,348,000 | $515,000 | 356% |
Liquidity and Capital Resources
DMC Global's net debt position was reported at $59,704,000 as of September 30, 2024, down from $72,192,000 at the end of 2023. This decrease is attributed to repayments on the revolving loan and required principal payments on the term loan.
Adjusted EBITDA
For the nine months ended September 30, 2024, DMC Global reported an Adjusted EBITDA of:
| Period | Adjusted EBITDA | 2023 Adjusted EBITDA | Change (%) |
|---|---|---|---|
| Nine Months Ended September 30 | $41,774,000 | $76,474,000 | (45%) |
Tax Provision
DMC Global recorded an income tax provision of $12,283,000 for the nine months ending September 30, 2024, compared to $13,187,000 for the same period in 2023.
Net Loss and Earnings per Share
The net loss attributable to DMC Global Inc. for the nine months ended September 30, 2024 was $(94,748,000), translating to a diluted loss per share of $(4.82). In comparison, for the same period in 2023, the net income was $23,495,000, or $1.20 per share.
Conclusion of Operations
As of 2024, DMC Global Inc. has faced significant challenges leading to a decline in sales and profitability, primarily driven by market conditions and operational inefficiencies.
How DMC Global Inc. (BOOM) Makes Money
Revenue Streams
DMC Global Inc. generates revenue primarily through its three business segments: DynaEnergetics, Arcadia Products, and NobelClad. For the nine months ended September 30, 2024, the company reported net sales of $490,477,000, a decrease of 10% compared to $545,152,000 in the same period in 2023.
| Business Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| DynaEnergetics | $69,679,000 | $72,998,000 | -5% |
| Arcadia Products | Data not specified | Data not specified | Data not specified |
| NobelClad | $24,932,000 | Data not specified | -10% |
Cost Structure
The company's cost structure includes cost of goods sold (COGS), general and administrative expenses, and selling expenses. For the nine months ended September 30, 2024, COGS was $371,607,000, resulting in a gross profit of $118,870,000, which reflects a gross profit percentage of 24.2%, down from 30.6% in 2023.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Sales | $490,477,000 | $545,152,000 |
| COGS | $371,607,000 | $378,454,000 |
| Gross Profit | $118,870,000 | $166,698,000 |
| Gross Profit Percentage | 24.2% | 30.6% |
Operating Income and Expenses
Operating income for the nine months ended September 30, 2024, was reported at a loss of $130,562,000, significantly down from an operating income of $51,919,000 in 2023. The increase in operating loss was largely due to a goodwill impairment charge of $141,725,000.
| Expense Type | Amount (2024) | Amount (2023) |
|---|---|---|
| General and Administrative Expenses | $45,952,000 | $60,285,000 |
| Selling and Distribution Expenses | $37,578,000 | $36,978,000 |
| Goodwill Impairment | $141,725,000 | $0 |
| Restructuring Expenses | $2,348,000 | $515,000 |
Adjusted EBITDA
DMC Global's Adjusted EBITDA for the nine months ended September 30, 2024, was $41,774,000, a sharp decline from $76,474,000 in the previous year, reflecting a decrease of 45%.
| Adjusted EBITDA Metrics | 2024 | 2023 |
|---|---|---|
| Adjusted EBITDA | $41,774,000 | $76,474,000 |
| Adjusted EBITDA Margin | 8.5% | 14.0% |
Market Trends and Future Outlook
DMC Global's revenue in 2024 was affected by lower sales volumes in longer-cycle ultra-high-end residential markets and pricing pressures in the DynaEnergetics segment. The company is focusing on operational improvements and cost management to navigate market challenges.
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Resources:
- DMC Global Inc. (BOOM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DMC Global Inc. (BOOM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DMC Global Inc. (BOOM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.