DMC Global Reports Third Quarter Financial Results
- Third quarter sales were $152.4 million, down 11% sequentially and year-over-year
- Net loss, inclusive of a $141.7 million non-cash goodwill impairment charge at Arcadia Products, was $159.4 million, while net loss attributable to DMC, inclusive of the goodwill impairment charge, was $101.3 million
- Adjusted net loss attributable to DMC* was $9.6 million, or $(0.49) per diluted share
- Adjusted EBITDA* attributable to DMC was $5.7 million, down 71% sequentially and down 77% vs. Q3 2023
- Total adjusted EBITDA, inclusive of non-controlling interest (NCI), was $7.0 million, or 5% of sales
BROOMFIELD, Colo., Nov. 04, 2024 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its third quarter ended September 30, 2024. As the Company recently announced, weakness in the U.S. construction and energy services industries negatively affected the performance of DMC’s two largest businesses.
At Arcadia, DMC’s architectural building products business, persistent high interest rates have impacted sales to the high-end luxury home market and have resulted in continued soft commercial construction activity. Under the direction of a new interim business president, Arcadia is executing a series of internal initiatives designed to strengthen sourcing and supply chain functions; improve sales, inventory and operations planning processes; and more effectively leverage Arcadia’s enterprise resource planning system. The business is also reviewing certain product lines that have not consistently met profitability targets.
Arcadia’s improvement initiatives are being led by interim president Chris Scocos, who joined the business in September 2024 with a 25-year track record of implementing lean manufacturing, process improvement and operational excellence programs for industrial manufacturing businesses across a broad range of industries, including building materials and industrial manufactured products.
Results at DynaEnergetics, DMC’s energy products business, reflect a further market-driven decline in U.S. well completions, which were down 6% sequentially and 13% versus last year’s third quarter. DynaEnergetics’ results also were impacted by a lower-margin customer mix. New automated assembly systems at DynaEnergetics’ U.S. manufacturing center in Blum, Texas, as well as a streamlined, next-generation model of its DynaStage perforating system, are expected to help strengthen DynaEnergetics’ profit margins beginning next year.
NobelClad, DMC’s composite metals business, delivered another solid quarter and achieved adjusted EBITDA margins of more than 23%. Management believes additional large order opportunities and continued strong demand for NobelClad’s Cylindra™ cryogenic transition joints will offset a recent slowdown in repair and maintenance work in North America’s downstream energy industry.
Guidance
Management has decided to limit quarterly financial guidance to consolidated sales and adjusted EBITDA during the current period of volatility and uncertainty in its energy and construction markets. For the fourth quarter, consolidated sales are expected to be in a range of $138 million to $148 million, while adjusted EBITDA attributable to DMC is expected in a range of $5 million to $8 million. The expected sequential decline in consolidated sales principally reflects challenging market conditions, including an anticipated extended frac holiday in DynaEnergetics’ North American market. The continued impact of stubbornly high interest rates on luxury home sales and the related impact of lower fixed-cost absorption in certain factories, particularly those supporting certain high-end residential products, are expected to negatively impact Arcadia’s fourth quarter performance.
Summary Third Quarter Results
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 152,429 | $ | 171,179 | $ | 172,147 | (11 | )% | (11 | )% | |||||||||
| Gross profit percentage | 19.8 | % | 27.1 | % | 30.6 | % | |||||||||||||
| SG&A* | $ | 28,205 | $ | 27,122 | $ | 28,713 | 4 | % | (2 | )% | |||||||||
| Net (loss) income | $ | (159,416 | ) | $ | 6,293 | $ | 11,525 | (2,633 | )% | (1,483 | )% | ||||||||
| Net (loss) income attributable to DMC | $ | (101,323 | ) | $ | 4,012 | $ | 8,883 | (2,625 | )% | (1,241 | )% | ||||||||
| Diluted net (loss) income per share attributable to DMC | $ | (8.27 | ) | $ | 0.24 | $ | 0.38 | (3,546 | )% | (2,276 | )% | ||||||||
| Adjusted net (loss) income attributable to DMC | $ | (9,615 | ) | $ | 5,675 | $ | 9,861 | (269 | )% | (198 | )% | ||||||||
| Adjusted diluted net (loss) income per share | $ | (0.49 | ) | $ | 0.29 | $ | 0.50 | (269 | )% | (198 | )% | ||||||||
| Adjusted EBITDA attributable to DMC | $ | 5,671 | $ | 19,420 | $ | 24,607 | (71 | )% | (77 | )% | |||||||||
| Adjusted EBITDA before NCI allocation | $ | 7,015 | $ | 24,398 | $ | 29,981 | (71 | )% | (77 | )% | |||||||||
| Adjusted EBITDA before NCI allocation margin | 4.6 | % | 14.3 | % | 17.4 | % | |||||||||||||
*SG&A in the three months ended September 30, 2023 included $805 of CEO transition expenses
Arcadia
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 57,818 | $ | 69,748 | $ | 71,455 | (17 | )% | (19 | )% | |||||||||
| Adjusted EBITDA attributable to DMC | $ | 2,014 | $ | 7,467 | $ | 8,060 | (73 | )% | (75 | )% | |||||||||
| Adjusted EBITDA before NCI allocation | $ | 3,358 | $ | 12,445 | $ | 13,434 | (73 | )% | (75 | )% | |||||||||
| Adjusted EBITDA before NCI allocation margin | 5.8 | % | 17.8 | % | 18.8 | % | |||||||||||||
DynaEnergetics
| Three months ended | Change |
||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 69,679 | $ | 76,210 | $ | 72,998 | (9 | )% | (5 | )% | |||||||||
| Adjusted EBITDA | $ | 414 | $ | 8,752 | $ | 12,568 | (95 | )% | (97 | )% | |||||||||
| Adjusted EBITDA margin | 0.6 | % | 11.5 | % | 17.2 | % | |||||||||||||
- Sales and margin declines reflect softer well-completion activity and continued pricing pressure in North America
- Third quarter 2024 adjusted EBITDA includes approximately $5 million in inventory and bad debt charges
NobelClad
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 24,932 | $ | 25,221 | $ | 27,694 | (1 | )% | (10 | )% | |||||||||
| Adjusted EBITDA | $ | 5,776 | $ | 5,722 | $ | 6,384 | 1 | % | (10 | )% | |||||||||
| Adjusted EBITDA margin | 23.2 | % | 22.7 | % | 23.1 | % | |||||||||||||
- Backlog at the end of the third quarter was $59.0 million versus $60.8 million at the end of the 2023 third quarter
-
Rolling 12-month bookings were $103.9 million versus $108.4 million at the end of the prior-year third quarter; and the book-to-bill ratio was 0.96.
Conference call information
The conference call will begin today at 5 p.m. Eastern (3 p.m. Mountain) and will be accessible by dialing 877-407-5783 (or +1 201-689-8782 for international callers).
Investors are invited to listen to the webcast live via the Internet at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=kSCFTQNY
Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. The webcast also will be available on the Investor page of DMC’s website, located at: ir.dmcglobal.com. A replay of the webcast will be available for six months.
*Use of Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (GAAP), the Company also discloses certain non-GAAP financial measures that we use in operational and financial decision making. Non-GAAP financial measures include the following:
- EBITDA: defined as net income (loss) plus net interest, taxes, depreciation and amortization.
- Adjusted EBITDA: excludes from EBITDA stock-based compensation, restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance (as further described in the tables below).
- Adjusted EBITDA attributable to DMC Global Inc.: excludes the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest in Arcadia Products.
- Adjusted EBITDA for DMC business segments: defined as operating income (loss) plus depreciation, amortization, allocated stock-based compensation (if applicable), restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing operating performance.
- Adjusted net income (loss): defined as net income (loss) attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
- Adjusted diluted earnings per share: defined as diluted earnings per share attributable to DMC Global Inc. stockholders (exclusive of adjustment of redeemable noncontrolling interest) plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
- Net debt: defined as total debt less total cash, cash equivalents and marketable securities.
- Free-cash flow: defined as cash flows provided by (used in) operating activities less net acquisitions of property, plant and equipment.
Management believes providing these additional financial measures is useful to investors in understanding the Company’s operating performance, including the effects of restructuring, impairment, and other nonrecurring charges, as well as its liquidity. Management typically monitors the business utilizing the above non-GAAP measures, in addition to GAAP results, to understand and compare operating results across accounting periods, and certain management incentive awards are based, in part, on these measures. The presence of non-GAAP financial measures in this report is not intended to suggest that such measures be considered in isolation or as a substitute for, or as superior to, DMC’s GAAP information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness.
Because not all companies use identical calculations, DMC’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the company’s performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company’s capital structure on its performance.
DMC is unable to reconcile its expected fourth quarter adjusted EBITDA attributable to DMC to the most directly comparable projected GAAP financial measure because certain information necessary to calculate such measure on a GAAP basis is unavailable or dependent on the timing of future events outside of DMC’s control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, DMC is unable to provide a reconciliation for expected adjusted EBITDA attributable to DMC without unreasonable efforts.
About DMC Global Inc.
DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC’s businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more information, visit: http://www.dmcglobal.com.
Safe Harbor Language
Except for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including fourth quarter 2024 guidance on sales and adjusted EBITDA; our expectations that automation initiatives and product enhancements at DynaEnergetics will strengthen its EBITDA margins beginning next year; that improvement initiatives at Arcadia will strengthen operations; and that large order opportunities and demand for NobelClad’s Cylindra™ product line will offset a recent slowdown in repair and maintenance work. Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and the ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; the timely completion of contracts; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics’ product, technology, and margin enhancement initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; consolidation among DynaEnergetics’ customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; the cyclicality of our business; competitive factors; the timing and size of expenditures; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; our ability to attract and retain key personnel; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions; inflation; supply chain delays and disruptions; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; the potential effects of activist stockholder actions and actions that we may take to discourage takeover attempts, as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2023, and our quarterly reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024. We do not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
| DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in Thousands, Except Share and Per Share Data) (unaudited) | |||||||||||||||||||
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| NET SALES | $ | 152,429 | $ | 171,179 | $ | 172,147 | (11 | )% | (11 | )% | |||||||||
| COST OF PRODUCTS SOLD | 122,324 | 124,766 | 119,550 | (2 | )% | 2 | % | ||||||||||||
| Gross profit | 30,105 | 46,413 | 52,597 | (35 | )% | (43 | )% | ||||||||||||
| Gross profit percentage | 19.8 | % | 27.1 | % | 30.6 | % | |||||||||||||
| COSTS AND EXPENSES: | |||||||||||||||||||
| General and administrative expenses | 14,349 | 15,623 | 16,259 | (8 | )% | (12 | )% | ||||||||||||
| Selling and distribution expenses | 13,856 | 11,499 | 12,454 | 20 | % | 11 | % | ||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,307 | 5,667 | (1 | )% | (7 | )% | ||||||||||||
| Goodwill impairment charge | 141,725 | — | — | 100 | % | 100 | % | ||||||||||||
| Strategic review expenses | 1,763 | 2,020 | — | (13 | )% | 100 | % | ||||||||||||
| Restructuring expenses and asset impairments | 2,069 | 279 | 515 | 642 | % | 302 | % | ||||||||||||
| Total costs and expenses | 179,040 | 34,728 | 34,895 | 416 | % | 413 | % | ||||||||||||
| OPERATING (LOSS) INCOME | (148,935 | ) | 11,685 | 17,702 | (1,375 | )% | (941 | )% | |||||||||||
| OTHER EXPENSE: | |||||||||||||||||||
| Other (expense) income, net | (520 | ) | (284 | ) | 302 | 83 | % | 272 | % | ||||||||||
| Interest expense, net | (2,113 | ) | (2,316 | ) | (2,392 | ) | (9 | )% | (12 | )% | |||||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (151,568 | ) | 9,085 | 15,612 | (1,768 | )% | (1,071 | )% | |||||||||||
| INCOME TAX PROVISION | 7,848 | 2,792 | 4,087 | 181 | % | 92 | % | ||||||||||||
| NET (LOSS) INCOME | (159,416 | ) | 6,293 | 11,525 | (2,633 | )% | (1,483 | )% | |||||||||||
| Less: Net (loss) income attributable to redeemable noncontrolling interest | (58,093 | ) | 2,281 | 2,642 | (2,647 | )% | (2,299 | )% | |||||||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | $ | (101,323 | ) | $ | 4,012 | $ | 8,883 | (2,625 | )% | (1,241 | )% | ||||||||
| NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | |||||||||||||||||||
| Basic | $ | (8.27 | ) | $ | 0.24 | $ | 0.38 | (3,546 | )% | (2,276 | )% | ||||||||
| Diluted | $ | (8.27 | ) | $ | 0.24 | $ | 0.38 | (3,546 | )% | (2,276 | )% | ||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||||||||||
| Basic | 19,706,587 | 19,659,908 | 19,543,251 | — | % | 1 | % | ||||||||||||
| Diluted | 19,706,587 | 19,671,169 | 19,596,575 | — | % | 1 | % | ||||||||||||
Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
| Three months ended | |||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | |||||||||
| Net (loss) income attributable to DMC Global Inc. stockholders | $ | (101,323 | ) | $ | 4,012 | $ | 8,883 | ||||
| Adjustment of redeemable noncontrolling interest | (61,687 | ) | 793 | (1,263 | ) | ||||||
| Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest | $ | (163,010 | ) | $ | 4,805 | $ | 7,620 | ||||
| DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in Thousands, Except Share and Per Share Data) (unaudited) | |||||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| NET SALES | $ | 490,477 | $ | 545,152 | (10 | )% | |||||
| COST OF PRODUCTS SOLD | 371,607 | 378,454 | (2 | )% | |||||||
| Gross profit | 118,870 | 166,698 | (29 | )% | |||||||
| Gross profit percentage | 24.2 | % | 30.6 | % | |||||||
| COSTS AND EXPENSES: | |||||||||||
| General and administrative expenses | 45,952 | 60,285 | (24 | )% | |||||||
| Selling and distribution expenses | 37,578 | 36,978 | 2 | % | |||||||
| Amortization of purchased intangible assets | 15,877 | 17,001 | (7 | )% | |||||||
| Goodwill impairment | 141,725 | — | 100 | % | |||||||
| Strategic review expenses | 5,952 | — | 100 | % | |||||||
| Restructuring expenses and asset impairments | 2,348 | 515 | 356 | % | |||||||
| Total costs and expenses | 249,432 | 114,779 | 117 | % | |||||||
| OPERATING (LOSS) INCOME | (130,562 | ) | 51,919 | (351 | )% | ||||||
| OTHER EXPENSE: | |||||||||||
| Other expense, net | (1,213 | ) | (337 | ) | 260 | % | |||||
| Interest expense, net | (6,746 | ) | (7,205 | ) | (6 | )% | |||||
| (LOSS) INCOME BEFORE INCOME TAXES | (138,521 | ) | 44,377 | (412 | )% | ||||||
| INCOME TAX PROVISION | 12,283 | 13,187 | (7 | )% | |||||||
| NET (LOSS) INCOME | (150,804 | ) | 31,190 | (584 | )% | ||||||
| Less: Net (loss) income attributable to redeemable noncontrolling interest | (56,056 | ) | 7,695 | (828 | )% | ||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | $ | (94,748 | ) | $ | 23,495 | (503 | )% | ||||
| NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS | |||||||||||
| Basic | $ | (8.04 | ) | $ | 1.07 | (851 | )% | ||||
| Diluted | $ | (8.04 | ) | $ | 1.07 | (851 | )% | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||
| Basic | 19,648,253 | 19,492,212 | 1 | % | |||||||
| Diluted | 19,648,253 | 19,540,978 | 1 | % | |||||||
Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
| Nine months ended | |||||||
| Sep 30, 2024 | Sep 30, 2023 | ||||||
| Net (loss) income attributable to DMC Global Inc. stockholders | $ | (94,748 | ) | $ | 23,495 | ||
| Adjustment of redeemable noncontrolling interest | (63,201 | ) | (2,289 | ) | |||
| Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest | $ | (157,949 | ) | $ | 21,206 | ||
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)
Arcadia
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 57,818 | $ | 69,748 | $ | 71,455 | (17 | )% | (19 | )% | |||||||||
| Gross profit | 13,562 | 23,157 | 23,789 | (41 | )% | (43 | )% | ||||||||||||
| Gross profit percentage | 23.5 | % | 33.2 | % | 33.3 | % | |||||||||||||
| COSTS AND EXPENSES: | |||||||||||||||||||
| General and administrative expenses | 7,223 | 7,765 | 7,413 | (7 | )% | (3 | )% | ||||||||||||
| Selling and distribution expenses | 4,210 | 4,116 | 4,248 | 2 | % | (1 | )% | ||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,278 | 5,652 | — | % | (7 | )% | ||||||||||||
| Goodwill impairment | 141,725 | — | — | 100 | % | 100 | % | ||||||||||||
| Restructuring expenses and asset impairments | 248 | 279 | — | (11 | )% | 100 | % | ||||||||||||
| Operating (loss) income | (145,122 | ) | 5,719 | 6,476 | (2,638 | )% | (2,341 | )% | |||||||||||
| Adjusted EBITDA | 3,358 | 12,445 | 13,434 | (73 | )% | (75 | )% | ||||||||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (1,344 | ) | (4,978 | ) | (5,374 | ) | (73 | )% | (75 | )% | |||||||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 2,014 | $ | 7,467 | $ | 8,060 | (73 | )% | (75 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Net sales | $ | 189,491 | $ | 230,951 | (18 | )% | |||||
| Gross profit | 53,532 | 73,342 | (27 | )% | |||||||
| Gross profit percentage | 28.3 | % | 31.8 | % | |||||||
| COSTS AND EXPENSES: | |||||||||||
| General and administrative expenses | 22,644 | 23,476 | (4 | )% | |||||||
| Selling and distribution expenses | 12,794 | 13,721 | (7 | )% | |||||||
| Amortization of purchased intangible assets | 15,833 | 16,956 | (7 | )% | |||||||
| Goodwill impairment | 141,725 | — | 100 | % | |||||||
| Restructuring expenses and asset impairments | 527 | — | 100 | % | |||||||
| Operating (loss) income | (139,991 | ) | 19,189 | (830 | )% | ||||||
| Adjusted EBITDA | 21,709 | 40,390 | (46 | )% | |||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (8,684 | ) | (16,156 | ) | (46 | )% | |||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 13,025 | $ | 24,234 | (46 | )% | |||||
DMC GLOBAL INC.
SEGMENT STATEMENTS OF OPERATIONS
(Amounts in Thousands)
(unaudited)
DynaEnergetics
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 69,679 | $ | 76,210 | $ | 72,998 | (9 | )% | (5 | )% | |||||||||
| Gross profit | 8,347 | 15,133 | 19,585 | (45 | )% | (57 | )% | ||||||||||||
| Gross profit percentage | 12.0 | % | 19.9 | % | 26.8 | % | |||||||||||||
| COSTS AND EXPENSES: | |||||||||||||||||||
| General and administrative expenses | 2,299 | 3,011 | 3,095 | (24 | )% | (26 | )% | ||||||||||||
| Selling and distribution expenses | 7,276 | 5,041 | 5,604 | 44 | % | 30 | % | ||||||||||||
| Amortization of purchased intangible assets | — | 29 | 15 | (100 | )% | (100 | )% | ||||||||||||
| Restructuring expenses and asset impairments | 1,821 | — | — | 100 | % | 100 | % | ||||||||||||
| Operating (loss) income | (3,049 | ) | 7,052 | 10,871 | (143 | )% | (128 | )% | |||||||||||
| Adjusted EBITDA | $ | 414 | $ | 8,752 | $ | 12,568 | (95 | )% | (97 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Net sales | $ | 224,011 | $ | 239,720 | (7 | )% | |||||
| Gross profit | 40,451 | 70,574 | (43 | )% | |||||||
| Gross profit percentage | 18.1 | % | 29.4 | % | |||||||
| COSTS AND EXPENSES: | |||||||||||
| General and administrative expenses | 8,201 | 12,869 | (36 | )% | |||||||
| Selling and distribution expenses | 17,540 | 15,888 | 10 | % | |||||||
| Amortization of purchased intangible assets | 44 | 45 | (2 | )% | |||||||
| Restructuring expenses and asset impairments | 1,821 | — | 100 | % | |||||||
| Operating income | 12,845 | 41,772 | (69 | )% | |||||||
| Adjusted EBITDA | $ | 19,705 | $ | 46,984 | (58 | )% | |||||
NobelClad
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net sales | $ | 24,932 | $ | 25,221 | $ | 27,694 | (1 | )% | (10 | )% | |||||||||
| Gross profit | 8,269 | 8,222 | 9,309 | 1 | % | (11 | )% | ||||||||||||
| Gross profit percentage | 33.2 | % | 32.6 | % | 33.6 | % | |||||||||||||
| COSTS AND EXPENSES: | |||||||||||||||||||
| General and administrative expenses | 1,110 | 1,023 | 1,106 | 9 | % | — | % | ||||||||||||
| Selling and distribution expenses | 2,190 | 2,267 | 2,531 | (3 | )% | (13 | )% | ||||||||||||
| Restructuring expenses and asset impairments | — | — | 440 | — | % | (100 | )% | ||||||||||||
| Operating income | 4,969 | 4,932 | 5,232 | 1 | % | (5 | )% | ||||||||||||
| Adjusted EBITDA | $ | 5,776 | $ | 5,722 | $ | 6,384 | 1 | % | (10 | )% | |||||||||
| DMC GLOBAL INC. SEGMENT STATEMENTS OF OPERATIONS (Amounts in Thousands) (unaudited) | |||||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Net sales | $ | 76,975 | $ | 74,481 | 3 | % | |||||
| Gross profit | 25,135 | 23,113 | 9 | % | |||||||
| Gross profit percentage | 32.7 | % | 31.0 | % | |||||||
| COSTS AND EXPENSES: | |||||||||||
| General and administrative expenses | 3,207 | 2,978 | 8 | % | |||||||
| Selling and distribution expenses | 6,927 | 7,135 | (3 | )% | |||||||
| Restructuring expenses and asset impairments | — | 440 | (100 | )% | |||||||
| Operating income | 15,001 | 12,560 | 19 | % | |||||||
| Adjusted EBITDA | $ | 17,378 | $ | 15,152 | 15 | % | |||||
| DMC GLOBAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in Thousands) | |||||||||||||||||||
| Change | |||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Dec 31, 2023 | Sequential | Year-end | |||||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and cash equivalents | $ | 14,511 | $ | 14,567 | $ | 31,040 | — | % | (53 | )% | |||||||||
| Marketable securities | — | — | 12,619 | — | % | (100 | )% | ||||||||||||
| Accounts receivable, net | 110,996 | 118,247 | 106,205 | (6 | )% | 5 | % | ||||||||||||
| Inventories | 165,636 | 174,791 | 166,712 | (5 | )% | (1 | )% | ||||||||||||
| Prepaid expenses and other | 16,734 | 13,270 | 10,236 | 26 | % | 63 | % | ||||||||||||
| Total current assets | 307,877 | 320,875 | 326,812 | (4 | )% | (6 | )% | ||||||||||||
| Property, plant and equipment, net | 129,674 | 128,189 | 129,267 | 1 | % | — | % | ||||||||||||
| Goodwill | — | 141,725 | 141,725 | (100 | )% | (100 | )% | ||||||||||||
| Purchased intangible assets, net | 179,380 | 184,658 | 195,260 | (3 | )% | (8 | )% | ||||||||||||
| Other long-term assets | 85,079 | 94,038 | 91,431 | (10 | )% | (7 | )% | ||||||||||||
| Total assets | $ | 702,010 | $ | 869,485 | $ | 884,495 | (19 | )% | (21 | )% | |||||||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
| Accounts payable | $ | 55,883 | $ | 62,594 | $ | 40,202 | (11 | )% | 39 | % | |||||||||
| Contract liabilities | 21,263 | 16,401 | 21,621 | 30 | % | (2 | )% | ||||||||||||
| Accrued income taxes | 16,616 | 13,917 | 12,810 | 19 | % | 30 | % | ||||||||||||
| Current portion of long-term debt | 2,500 | 2,500 | 15,000 | — | % | (83 | )% | ||||||||||||
| Other current liabilities | 33,787 | 31,266 | 36,828 | 8 | % | (8 | )% | ||||||||||||
| Total current liabilities | 130,049 | 126,678 | 126,461 | 3 | % | 3 | % | ||||||||||||
| Long-term debt | 71,715 | 81,612 | 100,851 | (12 | )% | (29 | )% | ||||||||||||
| Deferred tax liabilities | 1,702 | 1,935 | 1,956 | (12 | )% | (13 | )% | ||||||||||||
| Other long-term liabilities | 54,940 | 56,191 | 57,172 | (2 | )% | (4 | )% | ||||||||||||
| Redeemable noncontrolling interest | 187,080 | 187,080 | 187,760 | — | % | — | % | ||||||||||||
| Stockholders’ equity | 256,524 | 415,989 | 410,295 | (38 | )% | (37 | )% | ||||||||||||
| Total liabilities, redeemable noncontrolling interest, and stockholders’ equity | $ | 702,010 | $ | 869,485 | $ | 884,495 | (19 | )% | (21 | )% | |||||||||
| DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) (unaudited) | |||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
| Net (loss) income | $ | (159,416 | ) | $ | 6,293 | $ | 11,525 | $ | (150,804 | ) | $ | 31,190 | |||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||||
| Depreciation | 3,444 | 3,431 | 3,460 | 10,294 | 10,294 | ||||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,307 | 5,667 | 15,877 | 17,001 | ||||||||||||||
| Amortization of deferred debt issuance costs | 217 | 217 | 141 | 624 | 412 | ||||||||||||||
| Stock-based compensation | 1,772 | 1,782 | 1,832 | 5,103 | 8,558 | ||||||||||||||
| Bad debt expense | 3,943 | 560 | 317 | 4,979 | 141 | ||||||||||||||
| Deferred income taxes | 6,026 | (746 | ) | 1,558 | 4,734 | 2,218 | |||||||||||||
| Asset impairments | 1,044 | — | 515 | 1,044 | 515 | ||||||||||||||
| Goodwill impairment | 141,725 | — | — | 141,725 | — | ||||||||||||||
| Other | 712 | 197 | (1,607 | ) | (76 | ) | (2,040 | ) | |||||||||||
| Change in working capital, net | 14,257 | (14,698 | ) | 796 | 1,285 | (25,541 | ) | ||||||||||||
| Net cash provided by operating activities | 19,002 | 2,343 | 24,204 | 34,785 | 42,748 | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
| Investment in marketable securities | — | — | (5,102 | ) | — | (7,516 | ) | ||||||||||||
| Proceeds from maturities of marketable securities | — | — | — | 3,000 | — | ||||||||||||||
| Proceeds from sales of marketable securities | — | — | — | 9,619 | — | ||||||||||||||
| Acquisition of property, plant and equipment | (6,085 | ) | (2,547 | ) | (2,333 | ) | (11,600 | ) | (7,455 | ) | |||||||||
| Proceeds from property, plant and equipment reimbursements | 406 | — | — | 406 | — | ||||||||||||||
| Proceeds on sale of property, plant and equipment | — | 100 | — | 100 | — | ||||||||||||||
| Net cash (used in) provided by investing activities | (5,679 | ) | (2,447 | ) | (7,435 | ) | 1,525 | (14,971 | ) | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
| Repayments on term loan | (625 | ) | (625 | ) | (3,750 | ) | (118,750 | ) | (13,750 | ) | |||||||||
| Borrowings on term loan | — | — | — | 50,000 | — | ||||||||||||||
| Borrowings on revolving loans | 500 | 6,700 | — | 77,650 | — | ||||||||||||||
| Repayments on revolving loans | (9,875 | ) | (10,075 | ) | — | (50,400 | ) | — | |||||||||||
| Payment of debt issuance costs | — | — | — | (2,735 | ) | — | |||||||||||||
| Distributions to redeemable noncontrolling interest holder | (3,649 | ) | (1,547 | ) | (4,034 | ) | (8,321 | ) | (10,345 | ) | |||||||||
| Net proceeds from issuance of common stock to employees and directors | — | 132 | — | 132 | 212 | ||||||||||||||
| Treasury stock purchases | (48 | ) | (16 | ) | (157 | ) | (1,000 | ) | (2,328 | ) | |||||||||
| Net cash used in financing activities | (13,697 | ) | (5,431 | ) | (7,941 | ) | (53,424 | ) | (26,211 | ) | |||||||||
| EFFECTS OF EXCHANGE RATES ON CASH | 318 | (342 | ) | 508 | 585 | 1,350 | |||||||||||||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (56 | ) | (5,877 | ) | 9,336 | (16,529 | ) | 2,916 | |||||||||||
| CASH AND CASH EQUIVALENTS, beginning of the period | 14,567 | 20,444 | 18,724 | 31,040 | 25,144 | ||||||||||||||
| CASH AND CASH EQUIVALENTS, end of the period | $ | 14,511 | $ | 14,567 | $ | 28,060 | $ | 14,511 | $ | 28,060 | |||||||||
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)
DMC Global
EBITDA and Adjusted EBITDA
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Net (loss) income | (159,416 | ) | 6,293 | 11,525 | (2,633 | )% | (1,483 | )% | |||||||||||
| Interest expense, net | 2,113 | 2,316 | 2,392 | (9 | )% | (12 | )% | ||||||||||||
| Income tax provision | 7,848 | 2,792 | 4,087 | 181 | % | 92 | % | ||||||||||||
| Depreciation | 3,444 | 3,431 | 3,460 | — | % | — | % | ||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,307 | 5,667 | (1 | )% | (7 | )% | ||||||||||||
| EBITDA | (140,733 | ) | 20,139 | 27,131 | (799 | )% | (619 | )% | |||||||||||
| Stock-based compensation | 1,671 | 1,676 | 1,832 | — | % | (9 | )% | ||||||||||||
| Goodwill impairment | 141,725 | — | — | 100 | % | 100 | % | ||||||||||||
| Strategic review expenses | 1,763 | 2,020 | — | (13 | )% | 100 | % | ||||||||||||
| Restructuring expenses and asset impairments | 2,069 | 279 | 515 | 642 | % | 302 | % | ||||||||||||
| CEO transition expenses | — | — | 805 | — | % | (100 | )% | ||||||||||||
| Other expense (income), net | 520 | 284 | (302 | ) | 83 | % | 272 | % | |||||||||||
| Adjusted EBITDA | $ | 7,015 | $ | 24,398 | $ | 29,981 | (71 | )% | (77 | )% | |||||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (1,344 | ) | (4,978 | ) | (5,374 | ) | (73 | )% | (75 | )% | |||||||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 5,671 | $ | 19,420 | $ | 24,607 | (71 | )% | (77 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Net (loss) income | $ | (150,804 | ) | $ | 31,190 | (584 | )% | ||||
| Interest expense, net | 6,746 | 7,205 | (6 | )% | |||||||
| Income tax provision | 12,283 | 13,187 | (7 | )% | |||||||
| Depreciation | 10,294 | 10,294 | — | % | |||||||
| Amortization of purchased intangible assets | 15,877 | 17,001 | (7 | )% | |||||||
| EBITDA | (105,604 | ) | 78,877 | (234 | )% | ||||||
| Stock-based compensation | 4,824 | 8,558 | (44 | )% | |||||||
| Goodwill impairment | 141,725 | — | 100 | % | |||||||
| Strategic review expenses | 5,952 | — | 100 | % | |||||||
| Restructuring expenses and asset impairments | 2,348 | 515 | 356 | % | |||||||
| CEO transition expenses | — | 4,343 | (100 | )% | |||||||
| Other expense, net | 1,213 | 337 | 260 | % | |||||||
| Adjusted EBITDA | $ | 50,458 | $ | 92,630 | (46 | )% | |||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (8,684 | ) | (16,156 | ) | (46 | )% | |||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 41,774 | $ | 76,474 | (45 | )% | |||||
DMC GLOBAL INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in Thousands)
(unaudited)
Adjusted Net Income* and Adjusted Diluted Earnings per Share
*Net income attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest
| Three months ended September 30, 2024 | |||||||
| Amount | Per Share (1) | ||||||
| Net loss attributable to DMC Global Inc. stockholders* | $ | (101,323 | ) | $ | (5.14 | ) | |
| Goodwill impairment, net of tax | 85,035 | 4.31 | |||||
| Strategic review expenses, net of tax | 1,322 | 0.07 | |||||
| Restructuring expenses and asset impairments, net of tax | 1,451 | 0.07 | |||||
| Establishment of income tax valuation allowance | 3,900 | 0.20 | |||||
| As adjusted | $ | (9,615 | ) | $ | (0.49 | ) | |
(1) Calculated using diluted weighted average shares outstanding of 19,706,587
| Three months ended June 30, 2024 | |||||||
| Amount | Per Share (1) | ||||||
| Net income attributable to DMC Global Inc. stockholders* | $ | 4,012 | $ | 0.20 | |||
| Strategic review expenses, net of tax | 1,538 | 0.08 | |||||
| Restructuring expenses and asset impairments, net of tax | 125 | 0.01 | |||||
| As adjusted | $ | 5,675 | $ | 0.29 | |||
(1) Calculated using diluted weighted average shares outstanding of 19,671,169
| Three months ended September 30, 2023 | |||||||
| Amount | Per Share (1) | ||||||
| Net income attributable to DMC Global Inc. stockholders* | $ | 8,883 | $ | 0.45 | |||
| CEO transition expenses, net of tax | 620 | 0.03 | |||||
| Restructuring expenses and asset impairments, net of tax | 358 | 0.02 | |||||
| As adjusted | $ | 9,861 | $ | 0.50 | |||
(1) Calculated using diluted weighted average shares outstanding of 19,596,575
| Nine months ended September 30, 2024 | |||||||
| Amount | Per Share (1) | ||||||
| Net loss attributable to DMC Global Inc. stockholders* | $ | (94,748 | ) | $ | (4.82 | ) | |
| Goodwill impairment, net of tax | 85,035 | 4.33 | |||||
| Strategic review expenses, net of tax | 4,464 | 0.22 | |||||
| Restructuring expenses and asset impairments, net of tax | 1,576 | 0.08 | |||||
| Establishment of income tax valuation allowance | 3,900 | 0.20 | |||||
| As adjusted | $ | 227 | $ | 0.01 | |||
(1) Calculated using diluted weighted average shares outstanding of 19,648,253
| Nine months ended September 30, 2023 |
|||||||
| Amount |
Per Share (1) |
||||||
| Net income attributable to DMC Global Inc. stockholders* | $ | 23,495 | $ | 1.20 | |||
| CEO transition expenses and accelerated stock-based compensation, net of tax | 6,284 | 0.32 | |||||
| Restructuring expenses and asset impairments, net of tax | 358 | 0.02 | |||||
| As adjusted | $ | 30,137 | $ | 1.54 | |||
(1) Calculated using diluted weighted average shares outstanding of 19,540,978
Segment Adjusted EBITDA
Arcadia
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Operating (loss) income, as reported | $ | (145,122 | ) | $ | 5,719 | $ | 6,476 | (2,638 | )% | (2,341 | )% | ||||||||
| Adjustments: | |||||||||||||||||||
| Depreciation | 914 | 888 | 969 | 3 | % | (6 | )% | ||||||||||||
| Amortization of purchased intangible assets | 5,278 | 5,278 | 5,652 | — | % | (7 | )% | ||||||||||||
| Stock-based compensation | 315 | 281 | 337 | 12 | % | (7 | )% | ||||||||||||
| Goodwill impairment | 141,725 | — | — | 100 | % | 100 | % | ||||||||||||
| Restructuring expenses and asset impairments | 248 | 279 | — | (11 | )% | 100 | % | ||||||||||||
| Adjusted EBITDA | 3,358 | 12,445 | 13,434 | (73 | )% | (75 | )% | ||||||||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (1,344 | ) | $ | (4,978 | ) | $ | (5,374 | ) | (73 | )% | (75 | )% | |||||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 2,014 | $ | 7,467 | $ | 8,060 | (73 | )% | (75 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Operating (loss) income, as reported | $ | (139,991 | ) | $ | 19,189 | (830 | )% | ||||
| Adjustments: | |||||||||||
| Depreciation | 2,677 | 2,675 | — | % | |||||||
| Amortization of purchased intangible assets | 15,833 | 16,956 | (7 | )% | |||||||
| Stock-based compensation | 938 | 1,239 | (24 | )% | |||||||
| Goodwill impairment | 141,725 | — | 100 | % | |||||||
| Restructuring expenses and asset impairments | 527 | — | 100 | % | |||||||
| CEO transition expenses | — | 331 | (100 | )% | |||||||
| Adjusted EBITDA | 21,709 | 40,390 | (46 | )% | |||||||
| Less: adjusted EBITDA attributable to redeemable noncontrolling interest | (8,684 | ) | $ | (16,156 | ) | (46 | )% | ||||
| Adjusted EBITDA attributable to DMC Global Inc. | $ | 13,025 | $ | 24,234 | (46 | )% | |||||
DynaEnergetics
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Operating (loss) income, as reported | $ | (3,049 | ) | $ | 7,052 | $ | 10,871 | (143 | )% | (128 | )% | ||||||||
| Adjustments: | |||||||||||||||||||
| Depreciation | 1,642 | 1,671 | 1,682 | (2 | )% | (2 | )% | ||||||||||||
| Amortization of purchased intangible assets | — | 29 | 15 | (100 | )% | (100 | )% | ||||||||||||
| Restructuring expenses and asset impairments | 1,821 | — | — | 100 | % | 100 | % | ||||||||||||
| Adjusted EBITDA | $ | 414 | $ | 8,752 | $ | 12,568 | (95 | )% | (97 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Operating income, as reported | $ | 12,845 | $ | 41,772 | (69 | )% | |||||
| Adjustments: | |||||||||||
| Depreciation | 4,995 | 5,167 | (3 | )% | |||||||
| Amortization of purchased intangible assets | 44 | 45 | (2 | )% | |||||||
| Restructuring expenses and asset impairments | 1,821 | — | 100 | % | |||||||
| Adjusted EBITDA | $ | 19,705 | $ | 46,984 | (58 | )% | |||||
NobelClad
| Three months ended | Change | ||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | Sequential | Year-on-year | |||||||||||||||
| Operating income, as reported | $ | 4,969 | $ | 4,932 | $ | 5,232 | 1 | % | (5 | )% | |||||||||
| Adjustments: | |||||||||||||||||||
| Depreciation | 807 | 790 | 712 | 2 | % | 13 | % | ||||||||||||
| Restructuring expenses and asset impairments | — | — | 440 | — | % | (100 | )% | ||||||||||||
| Adjusted EBITDA | $ | 5,776 | $ | 5,722 | $ | 6,384 | 1 | % | (10 | )% | |||||||||
| Nine months ended | Change | ||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Year-on-year | |||||||||
| Operating income, as reported | $ | 15,001 | $ | 12,560 | 19 | % | |||||
| Adjustments: | |||||||||||
| Depreciation | 2,377 | 2,152 | 10 | % | |||||||
| Restructuring expenses and asset impairments | — | 440 | (100 | )% | |||||||
| Adjusted EBITDA | $ | 17,378 | $ | 15,152 | 15 | % | |||||
Released November 4, 2024