Exhibit 99.1

 

GRAPHIC

 

FOR IMMEDIATE RELEASE:

CONTACT:

 

Pfeiffer High Investor Relations, Inc.

 

Geoff High

 

303-393-7044

 

DYNAMIC MATERIALS REPORTS SECOND QUARTER FINANCIAL RESULTS

 

Q2 Diluted EPS Improves to $0.29 from $0.23 in Year-ago Second Quarter

on 42% Increase in Sales and Improved Gross Margin

 

BOULDER, Colo. — August 2, 2011 — Dynamic Materials Corporation (DMC) (Nasdaq: BOOM), a diversified provider of industrial products and services, and the world’s leading manufacturer of explosion-welded clad metal plates, today reported financial results for its second quarter ended June 30, 2011.

 

Second quarter sales were $54.2 million, up 42% from $38.3 million in the second quarter last year, and a 19% sequential improvement from sales of $45.6 million in this year’s first quarter. The better-than-forecast results were primarily driven by expedited shipment activity at the Company’s U.S. Explosive Metalworking operations.

 

Gross margin was 29%, up from 24% in last year’s second quarter and 23% in the first quarter.  The gross margin improvement is largely attributable to a more favorable product mix and a somewhat stronger pricing environment in certain of DMC’s Explosive Metalworking end markets.

 

Operating income was $5.9 million, up 183% from $2.1 million in last year’s second quarter and a 294% improvement from $1.5 million in the 2011 first quarter. Net income was $3.9 million, or $0.29 per diluted share, an increase of 27% from net income of $3.0 million, or $0.23 per diluted share, in the year-ago second quarter and a 416% improvement from net income of $750,000, or $0.06 per diluted share, in the first quarter.

 

Second quarter adjusted EBITDA was $9.5 million, a 73% improvement from $5.5 million in last year’s second quarter, and an 88% increase from $5.1 million in the first quarter.  Adjusted EBITDA is a non-GAAP (generally accepted accounting principle) financial measure used by management to measure operating performance.  See additional information about adjusted EBITDA at the end of this news release, as well as a reconciliation of adjusted EBITDA to GAAP measures.

 

Explosive Metalworking

 

DMC’s Explosive Metalworking segment recorded second quarter sales of $35.8 million, up 34% from sales of $26.7 million in the same quarter of 2010.  Operating income increased 125% to $5.6 million from $2.5 million in the 2010 second quarter, while adjusted EBITDA was $7.1 million, an improvement of 84% from $3.9 million in last year’s second quarter.  Despite a $9.7 million sequential improvement in sales, backlog only declined to $54.0 million from $58.5 million at the end of the first quarter.

 

Oilfield Products

 

Sales at DMC’s Oilfield Products segment increased 82% to $15.7 million from $8.7 million in the 2010 second quarter. Excluding incremental sales contributions of $2.2 million from operations

 



 

acquired during last year’s second quarter, Oilfield Product sales increased $4.8 million, or 56%, versus the comparable year-ago quarter. Operating income was $1.2 million versus $134,000 in the prior year’s second quarter, while adjusted EBITDA was $2.3 million compared with $1.2 million in the 2010 second quarter.

 

AMK Welding

 

DMC’s AMK Welding segment reported second quarter sales of $2.7 million versus $2.9 million in the same quarter of 2010.  Operating income was $702,000 compared with $865,000 in the comparable year-ago quarter.  The segment recorded adjusted EBITDA of $821,000 versus $980,000 in the comparable quarter last year.

 

Management Commentary

 

“Both Explosive Metalworking and Oilfield Products, our core business segments, delivered another quarter of very respectable sales growth and improved profitability,” said Yvon Cariou, president and CEO. “Our U.S. cladding team capitalized on timely metal arrivals at our Mt. Braddock, Pennsylvania facility, and was able to quickly complete shipments on two large orders.  This strong production performance illustrates the efficiency and flexibility of our explosion welding operating platform.  Meanwhile, our Oilfield Products segment continued to benefit from a very active oil and gas drilling environment, as well as from our expanding international manufacturing and distribution network.”

 

“We continue to see encouraging signs in several of our industrial processing end markets that capital spending momentum is improving,” Cariou added.  “While the fragility of the global economic recovery continues to make forecasting a challenging process, we nevertheless remain optimistic about the long-range prospects for all three of our business segments.”

 

Guidance

 

Rick Santa, senior vice president and chief financial officer, said, “We are raising our 2011 sales-growth forecast to between 28% and 30% versus fiscal 2010. Our prior forecast called for year-over-year growth of between 24% and 28%.  The significant pricing pressure our Explosive Metalworking segment experienced during much of fiscal 2010 has begun to ease, and we have therefore elevated our 2011 consolidated gross margin forecast to between 26% and 28% versus our previously guided range of 24% and 26%.”

 

Santa said that in light of the stronger-than-expected shipments achieved in the second quarter, third quarter sales are expected to be flat to down 5% from those reported in the most recent quarter.  Third quarter gross margin is expected to be in a range of 27% to 28%.

 

DMC’s blended effective tax rate for fiscal 2011 is now projected in a range of between 26% and 28% versus the previously forecasted range of 25% to 28%.  The Company’s tax rate is expected to rise to a normalized level of between 28% and 30% in years thereafter.

 

Six-month Results

 

Sales for the six-month period increased 45% to $99.7 million versus $68.6 million in the comparable period of 2010. Gross margin was 26% versus 24% in the same period a year ago. Operating income improved 217% to $7.4 million from $2.3 million in the prior year’s six-month period. Net income was $4.6 million, or $0.35 per diluted share, an increase of 76% compared with net income of $2.6 million, or $0.20 per diluted share, at the six-month mark last year. Adjusted EBITDA was $14.6 million compared with $9.0 million in the same period a year ago.

 



 

The Explosive Metalworking segment reported six-month sales of $61.8 million, up 29% from $48.0 million in the first half of 2010.  The segment reported operating income of $7.2 million, up 66% from $4.3 million in the same period a year ago.  Adjusted EBITDA was $10.1 million versus $7.1 million in the comparable year-ago period.

 

Six-month sales at DMC’s Oilfield Products segment increased 109% to $32.8 million from $15.7 million in last year’s six-month period.  The segment reported operating income of $2.1 million versus an operating loss of $326,000 in the same period a year ago.  Six-month adjusted EBITDA was $4.4 million versus $1.6 million in the prior-year’s six-month period.

 

AMK Welding recorded six-month sales of $5.1 million compared with $5.0 million in the comparable year-ago period. Operating income was $1.2 million versus $1.1 million in the prior-year period.  Adjusted EBITDA at the six-month mark was $1.4 million compared with $1.4 million in the same period a year ago.

 

Conference call information

 

Management will hold a conference call to discuss these results today at 5:00 p.m. Eastern (3:00 p.m. Mountain).  Investors are invited to listen to the call live via the Internet at www.dynamicmaterials.com, or by dialing into the teleconference at 877-407-8031 (201-689-8031 for international callers).  No passcode is necessary.  Participants should access the website at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days and a telephonic replay will be available through August 9, 2011, by calling 877-660-6853 (201-612-7415 for international callers) and entering the Account Number 286 and the passcode 375989.

 

Use of Non-GAAP Financial Measures

 

Non-GAAP results are presented only as a supplement to the financial statements based on U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information is provided to enhance the reader’s understanding of DMC’s financial performance, but no non-GAAP measure should be considered in isolation or as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of the most directly comparable GAAP measures to non-GAAP measures are provided within the schedules attached to this release.

 

EBITDA is defined as net income plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure.

 

Management uses these non-GAAP measures in its operational and financial decision-making, believing that it is useful to eliminate certain items in order to focus on what it deems to be a more reliable indicator of ongoing operating performance and the company’s ability to generate cash flow from operations. As a result, internal management reports used during monthly operating reviews feature the adjusted EBITDA. Management also believes that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures. EBITDA and adjusted EBITDA are also used by research analysts, investment bankers and lenders to assess operating performance. For example, a measure similar to EBITDA is required by the lenders under DMC’s credit facility.

 



 

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.

 

All of the items included in the reconciliation from net income to EBITDA and adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles and stock-based compensation) or (ii) items that management does not consider to be useful in assessing DMC’s operating performance (e.g., income taxes and gain on sale of assets). In the case of the non-cash items, management believes that investors can better assess the company’s operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect DMC’s ability to generate free cash flow or invest in its business. For example, by adjusting for depreciation and amortization in computing EBITDA, users can compare operating performance without regard to different accounting determinations such as useful life. In the case of the other items, management believes that investors can better assess operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.

 

About Dynamic Materials Corporation

 

Based in Boulder, Colorado, Dynamic Materials Corporation serves a global network of industrial customers through two core business segments: Explosive Metalworking and Oilfield Products; as well as a specialized industrial service provider, AMK Welding. The Explosive Metalworking segment is the world’s largest manufacturer of explosion-welded clad metal plates, which are used to fabricate capital equipment utilized within various process industries and other industrial sectors. Oilfield Products is an international manufacturer and marketer of advanced explosive components and systems used to perforate oil and gas wells.  AMK Welding utilizes various specialized technologies to weld components for use in power-generation turbines, and commercial and military jet engines. For more information, visit the Company’s websites at: http://www.dynamicmaterials.com and http://www.dynaenergetics.de.

 

Safe Harbor Language

 

Except for the historical information contained herein, this news release contains forward-looking statements, including our guidance for third quarter and full-year 2011 sales, margins and tax rates, growth and diversification prospects, as well as expectations about business conditions and growth opportunities, all of which involve risks and uncertainties.  These risks and uncertainties include, but are not limited to, the following: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipments; fluctuations in customer demand; our ability to successfully source and execute upon acquisition opportunities; fluctuations in foreign currencies, changes to customer orders; the cyclicality of our business; competitive factors; the timely completion of contracts; 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; current or future limits on manufacturing capacity at our various operations; the availability and cost of funds; and general economic conditions, both domestic and foreign, impacting our business and the business of the end-market users we serve; 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, 2010.

 



 

DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010

(Dollars in Thousands, Except Share Data)

(unaudited)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

NET SALES

 

$

54,165

 

$

38,258

 

$

99,740

 

$

68,615

 

COST OF PRODUCTS SOLD

 

38,692

 

29,000

 

73,964

 

52,373

 

Gross profit

 

15,473

 

9,258

 

25,776

 

16,242

 

 

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

4,194

 

3,358

 

7,869

 

6,503

 

Selling and distribution expenses

 

3,911

 

2,550

 

7,638

 

4,871

 

Amortization of purchased intangible assets

 

1,471

 

1,264

 

2,876

 

2,537

 

Total costs and expenses

 

9,576

 

7,172

 

18,383

 

13,911

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

 

5,897

 

2,086

 

7,393

 

2,331

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

Gain on step acquisition of joint ventures

 

 

2,117

 

 

2,117

 

Other income (expense), net

 

(136

)

(110

)

(339

)

31

 

Interest expense

 

(486

)

(662

)

(896

)

(1,806

)

Interest income

 

 

29

 

3

 

65

 

Equity in earnings of joint ventures

 

 

86

 

 

255

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

5,275

 

3,546

 

6,161

 

2,993

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX PROVISION

 

1,418

 

505

 

1,565

 

351

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

3,857

 

3,041

 

4,596

 

2,642

 

Less: Net income (loss) attributable to noncontrolling interest

 

(11

)

5

 

(23

)

17

 

 

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO DYNAMIC MATERIALS CORPORATION

 

$

3,868

 

$

3,036

 

$

4,619

 

$

2,625

 

 

 

 

 

 

 

 

 

 

 

INCOME PER SHARE:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.29

 

$

0.23

 

$

0.35

 

$

0.20

 

Diluted

 

$

0.29

 

$

0.23

 

$

0.35

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

Basic

 

13,060,456

 

12,774,316

 

13,059,782

 

12,742,589

 

Diluted

 

13,070,536

 

12,786,976

 

13,069,834

 

12,755,565

 

 

 

 

 

 

 

 

 

 

 

DIVIDENDS DECLARED PER COMMON SHARE

 

$

0.04

 

$

0.04

 

$

0.08

 

$

0.08

 

 



 

DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)

(unaudited)

 

 

 

June 30,

 

 

 

 

 

2011

 

December 31,

 

 

 

(unaudited)

 

2010

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,613

 

$

4,572

 

Accounts receivable, net

 

34,798

 

27,567

 

Inventories

 

48,903

 

35,880

 

Other current assets

 

6,153

 

4,716

 

 

 

 

 

 

 

Total current assets

 

97,467

 

72,735

 

 

 

 

 

 

 

Property, plant and equipment, net

 

40,832

 

39,806

 

Goodwill, net

 

42,020

 

39,173

 

Purchased intangible assets, net

 

49,260

 

48,490

 

Other long-term assets

 

1,285

 

1,189

 

 

 

 

 

 

 

Total assets

 

$

230,864

 

$

201,393

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

22,020

 

$

16,109

 

Customer advances

 

3,038

 

1,531

 

Dividend payable

 

533

 

529

 

Accrued income taxes

 

1,536

 

477

 

Other current liabilities

 

8,315

 

7,529

 

Lines of credit

 

8,724

 

2,621

 

Current portion of long-term debt

 

9,216

 

9,596

 

 

 

 

 

 

 

Total current liabilities

 

53,382

 

38,392

 

 

 

 

 

 

 

Long-term debt

 

14,610

 

14,579

 

Deferred tax liabilities

 

11,848

 

12,083

 

Other long-term liabilities

 

1,355

 

1,255

 

Stockholders’ equity

 

149,669

 

135,084

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

230,864

 

$

201,393

 

 



 

DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2010

(Dollars in Thousands)

(unaudited)

 

 

 

2011

 

2010

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

Net income including noncontrolling interest

 

$

4,596

 

$

2,642

 

Adjustments to reconcile net income to net cash provided by operating activities -

 

 

 

 

 

Depreciation (including capital lease amortization)

 

2,628

 

2,404

 

Amortization of purchased intangible assets

 

2,876

 

2,537

 

Amortization of capitalized debt issuance costs

 

157

 

383

 

Stock-based compensation

 

1,663

 

1,702

 

Deferred income tax benefit

 

(1,367

)

(961

)

Equity in earnings of joint ventures

 

 

(255

)

Gain on step acquisition of joint ventures

 

 

(2,117

)

Loss on disposal of property, plant and equipment

 

101

 

 

Change in working capital, net

 

(9,899

)

3,360

 

 

 

 

 

 

 

Net cash provided by operating activities

 

755

 

9,695

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

Acquisition of Austin Explosives Company

 

 

(3,544

)

Step acquisition of joint ventures, net of cash acquired

 

 

(2,065

)

Acquisition of property, plant and equipment

 

(2,286

)

(1,445

)

Change in other non-current assets

 

36

 

(125

)

 

 

 

 

 

 

Net cash used in investing activities

 

(2,250

)

(7,179

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

Payment on syndicated term loans

 

 

(15,374

)

Borrowings on lines of credit, net

 

5,818

 

1,998

 

Payments on long-term debt

 

(421

)

(399

)

Payments on capital lease obligations

 

(156

)

(146

)

Payment of dividends

 

(1,062

)

(1,033

)

Contribution from noncontrolling stockholder

 

42

 

 

Net proceeds from issuance of common stock

 

99

 

70

 

Tax impact of stock-based compensation

 

(109

)

2

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

4,211

 

(14,882

)

 

 

 

 

 

 

EFFECTS OF EXCHANGE RATES ON CASH

 

325

 

(251

)

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

3,041

 

(12,617

)

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, beginning of the period

 

4,572

 

22,411

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, end of the period

 

$

7,613

 

$

9,794

 

 



 

DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST

DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(Dollars in thousands)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Explosive Metalworking Group

 

$

35,751

 

$

26,690

 

$

61,826

 

$

47,996

 

Oilfield Products

 

15,717

 

8,654

 

32,773

 

15,660

 

AMK Welding

 

2,697

 

2,914

 

5,141

 

4,959

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

54,165

 

$

38,258

 

$

99,740

 

$

68,615

 

 

 

 

 

 

 

 

 

 

 

Explosive Metalworking Group

 

$

5,605

 

$

2,486

 

$

7,159

 

$

4,324

 

Oilfield Products

 

1,159

 

134

 

2,083

 

(326

)

AMK Welding

 

702

 

865

 

1,170

 

1,125

 

Unallocated expenses

 

(1,569

)

(1,399

)

(3,019

)

(2,792

)

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

5,897

 

$

2,086

 

$

7,393

 

$

2,331

 

 

 

 

For the three months ended June 30, 2011

 

 

 

Explosive

 

 

 

 

 

 

 

 

 

 

 

Metalworking

 

Oilfield

 

AMK

 

Unallocated

 

 

 

 

 

Group

 

Products

 

Welding

 

Expenses

 

Total

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

5,605

 

$

1,159

 

$

702

 

$

(1,569

)

$

5,897

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interest

 

 

11

 

 

 

11

 

Stock-based compensation

 

 

 

 

871

 

871

 

Depreciation

 

921

 

232

 

119

 

 

 

1,272

 

Amortization of purchased intangibles

 

574

 

897

 

 

 

1,471

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

7,100

 

$

2,299

 

$

821

 

$

(698

)

$

9,522

 

 

 

 

For the three months ended June 30, 2010

 

 

 

Explosive

 

 

 

 

 

 

 

 

 

 

 

Metalworking

 

Oilfield

 

AMK

 

Unallocated

 

 

 

 

 

Group

 

Products

 

Welding

 

Expenses

 

Total

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

2,486

 

$

134

 

$

865

 

$

(1,399

)

$

2,086

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interest

 

 

(5

)

 

 

(5

)

Stock-based compensation

 

 

 

 

910

 

910

 

Depreciation

 

814

 

321

 

115

 

 

1,250

 

Amortization of purchased intangibles

 

551

 

713

 

 

 

1,264

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

3,851

 

$

1,163

 

$

980

 

$

(489

)

$

5,505

 

 



 

DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST

DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(Dollars in thousands)

 

 

 

For the six months ended June 30, 2011

 

 

 

Explosive

 

 

 

 

 

 

 

 

 

 

 

Metalworking

 

Oilfield

 

AMK

 

Unallocated

 

 

 

 

 

Group

 

Products

 

Welding

 

Expenses

 

Total

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

7,159

 

$

2,083

 

$

1,170

 

$

(3,019

)

$

7,393

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interest

 

 

23

 

 

 

23

 

Stock-based compensation

 

 

 

 

1,663

 

1,663

 

Depreciation

 

1,834

 

553

 

241

 

 

2,628

 

Amortization of purchased intangibles

 

1,120

 

1,756

 

 

 

2,876

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

10,113

 

$

4,415

 

$

1,411

 

$

(1,356

)

$

14,583

 

 

 

 

For the six months ended June 30, 2010

 

 

 

Explosive

 

 

 

 

 

 

 

 

 

 

 

Metalworking

 

Oilfield

 

AMK

 

Unallocated

 

 

 

 

 

Group

 

Products

 

Welding

 

Expenses

 

Total

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

4,324

 

$

(326

)

$

1,125

 

$

(2,792

)

$

2,331

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to noncontrolling interest

 

 

(17

)

 

 

(17

)

Stock-based compensation

 

 

 

 

1,702

 

1,702

 

Depreciation

 

1,583

 

591

 

230

 

 

2,404

 

Amortization of purchased intangibles

 

1,149

 

1,388

 

 

 

2,537

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

7,056

 

$

1,636

 

$

1,355

 

$

(1,090

)

$

8,957

 

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to DMC

 

$

3,868

 

$

3,036

 

$

4,619

 

$

2,625

 

Interest expense

 

486

 

662

 

896

 

1,806

 

Interest income

 

 

(29

)

(3

)

(65

)

Provision for income taxes

 

1,418

 

505

 

1,565

 

351

 

Depreciation

 

1,272

 

1,250

 

2,628

 

2,404

 

Amortization of purchased intangible assets

 

1,471

 

1,264

 

2,876

 

2,537

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

8,515

 

6,688

 

12,581

 

9,658

 

Stock-based compensation

 

871

 

910

 

1,663

 

1,702

 

Other (income) expense, net

 

136

 

(2,007

)

339

 

(2,148

)

Equity in earnings of joint ventures

 

 

(86

)

 

(255

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

9,522

 

$

5,505

 

$

14,583

 

$

8,957