Exhibit 99.1
DYNAMIC MATERIALS REPORTS SECOND QUARTER FINANCIAL RESULTS
BOULDER, Colo. — July 30, 2013 — Dynamic Materials Corporation (DMC) (Nasdaq: BOOM), today reported financial results for its second quarter ended June 30, 2013.
Second quarter sales were $57.9 million, up 19% from sales of $48.7 million in the same quarter last year, and a sequential increase of 25% from $46.3 million reported in the first quarter. Management’s prior forecast called for a sales increase of 11% to 14% versus the second quarter last year. Gross margin was 30% versus 29% in the second quarter a year ago and 28% in this year’s first quarter.
Operating income increased 65% to $6.0 million from $3.7 million in last year’s second quarter. During this year’s first quarter, DMC reported a loss from operations of $1.1 million due to $3.0 million of non-recurring expenses associated with management retirements.
Net income in the second quarter was $3.4 million, or $0.25 per diluted share, a 30% increase from net income of $2.7 million, or $0.20 per diluted share, in the year-ago second quarter. The Company’s first quarter net income of $215,000, or $0.02 per diluted share, included the impact of the $3.0 million in retirement expense, as well as a tax benefit of approximately $1.2 million.
Second quarter Adjusted EBITDA was $9.7 million, up 30% from $7.5 million in the second quarter last year, and an improvement from first quarter adjusted EBITDA of $3.3 million. Adjusted EBITDA is a non-GAAP (generally accepted accounting principles) 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
Nobelclad, the Company’s Explosive Metalworking business, reported sales of $32.4 million, up 18% from $27.4 million in the second quarter last year. Operating income was $5.2 million, an increase of 46% versus $3.6 million in the same quarter a year ago. Adjusted EBITDA was $6.7 million, versus $5.0 million in the comparable year-ago quarter. The segment closed the quarter with an order backlog of $44.2 million versus $47.6 million at the end of the first quarter.
Oilfield Products
Sales at DYNAenergetics, DMC’s Oilfield Products business, were $23.2 million, up 22% from $18.9 million in last year’s second quarter. Operating income was $2.2 million, up 27% versus $1.7 million in the second quarter last year, while adjusted EBITDA was $3.5 million up 17% versus $3.0 million in the 2012 second quarter.
AMK Welding
Sales at DMC’s AMK Welding segment were $2.3 million, down 4% from $2.4 million in last year’s second quarter. Operating income improved to $404,000 from $165,000 in the 2012 second
quarter. The improvement was due to a large volume of high-margin repair work during the quarter. Adjusted EBITDA was $555,000 compared with $290,000 in last year’s second quarter.
Six-Month Results
Sales for the six-month period increased 5% to $104.1 million from $98.9 during the same period a year ago. Gross margin was flat at 29%. Operating income for the six-month period, which was impacted by $3.0 million in non-recurring expenses associated with management retirements, decreased to $5.0 million from $7.8 million in the same period last year.
Net income, which reflects the retirement expense mentioned above, as well as a $1.2 million first quarter tax benefit, was $3.7 million, or $0.27 per diluted share, versus $5.1 million, or $0.38 per diluted share, in the same period a year ago. Adjusted EBITDA was $13.0 million versus $15.5 million during the 2012 six-month period. Cash flow from operations increased to $15.4 million from $8.1 million during the first six months of 2012.
The Explosive Metalworking segment reported six-month sales of $58.6 million, up 7% from $54.9 million in the comparable prior-year period. Operating income was flat at $7.7 million. Adjusted EBITDA was $10.6 million versus $10.5 million at the six-month mark last year.
Six-month sales at DMC’s Oilfield Products segment increased 5% to $41.8 million from $40.0 million in the 2012 six-month period. The segment reported six-month operating income of $3.9 million, up 4% from $3.7 million in the comparable prior-year period. Adjusted EBITDA improved to $6.6 million from $6.5 million in the year-ago period.
AMK Welding recorded six-month sales of $3.7 million, down 9% from $4.1 million through the first six months of 2012. Operating income was $110,000 versus $77,000 in the prior year’s six-month period, while adjusted EBITDA was $411,000 versus $326,000.
Management Commentary
“Second quarter sales exceeded our prior forecast thanks to a strong performance by Nobelclad’s U.S. production team, which capitalized on earlier-than-expected arrival of raw materials that were then efficiently utilized to meet customer requirements.”
Longe said quoting activity at Nobelclad has increased in recent months, and is ahead of levels seen at the mid-year mark of 2012. “We are bidding on projects that span a broad cross section of industrial end markets, and inquiries from the chemical, energy and power generation markets have been strong.”
Nobelclad is actively pursuing orders related to several international chemical projects, which involve both new-build and upgrade work. The projects are expected to be awarded during the second half of 2013, although specific timing is difficult to forecast.
“Our DYNAenergetics team has also been active, and shipped the full value of a $3.2 million Indian tender order during the second quarter,” Longe said. “DYNAenergetics also recently commenced marketing its DYNAselect System, an advanced new product offering designed to enhance the reliability and efficiency of the well perforation process.”
Equipment installation at DYNAenergetics’ new shaped charge facility in Blum, Texas has been completed, and production testing is underway. Commercial production is expected to begin by the anticipated September 1 start date. In addition, construction on DYNAenergetics’ new perforating gun and shaped charge facilities in Russia is on schedule.
“We are encouraged by the impact of our organizational enhancements, which are reflected in DMC’s improved operating cash flow performance during the first half of 2013,” Longe said. “The continued operational progress at both DYNAenergetics and AMK Welding is also very gratifying.
“We are reasonably optimistic that developments in several of Nobelclad’s industrial end markets foretell an increase in capital spending. While order timing will always be unpredictable, it appears overall activity is improving.”
Guidance
Rick Santa, senior vice president and chief financial officer, said, “Although we anticipate Nobelclad will receive multiple large orders from the chemical industry during the second half of the year, uncertainty associated with their specific timing and our ability to deliver them by the close of the fourth quarter has led us to adjust our full year sales forecast, which now anticipates an increase of 6% to 8% versus a previously forecast increase of 8% to 10% over 2012 sales. Our full-year gross margin forecast is unchanged at 27% to 29%.”
Santa said DMC’s expected blended effective tax rate for the full-year has been revised to 24% to 26% from the previously forecasted range of 21% to 23%. The revision relates principally to approximately $400,000 in non-recurring second quarter tax expense resulting from a recent German tax audit. Excluding the impact of a previously discussed $900,000 first quarter tax benefit and the $400,000 of second quarter non-recurring expense, the blended effective tax rate for fiscal 2013 is projected to be in a range of 28% to 30% versus the prior forecasted range of 26% to 28%.
For the third fiscal quarter, management anticipates sales will increase by 10% to 12% versus sales of $50.1 million in the third quarter of 2012. Gross margin is expected to be in a range of 27% to 29%.
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. Webcast 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 6, 2013, by calling 877-660-6853 (201-612-7415 for international callers) and entering the Conference ID #417878.
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 customers in the energy, infrastructure and industrials markets through two core business segments — Nobelclad and DYNAenergetics — as well as a specialized industrial service provider, AMK Welding. The Nobelclad 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. DYNAenergetics 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.com.
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 2013 sales, margins, tax rates and tax benefits, expectations regarding our global growth and operational initiatives, Nobelclad sales opportunities in the chemical and other end markets, completion of the new DYNAenergetics shaped charge plant, and the other prospects we are pursuing at each of our three business segments. 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 execute upon international growth opportunities; the success of planned senior leadership transition; 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 annual report on Form 10-K for the year ended December 31, 2012.
DYNAMIC MATERIALS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012
(Amounts in Thousands, Except Share and Per Share Data)
(unaudited)
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
NET SALES |
|
$ |
57,859 |
|
$ |
48,687 |
|
$ |
104,129 |
|
$ |
98,899 |
|
|
COST OF PRODUCTS SOLD |
|
40,796 |
|
34,748 |
|
74,347 |
|
70,583 |
|
|
Gross profit |
|
17,063 |
|
13,939 |
|
29,782 |
|
28,316 |
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
5,158 |
|
4,641 |
|
13,296 |
|
9,146 |
|
|
Selling and distribution expenses |
|
4,324 |
|
4,128 |
|
8,375 |
|
8,319 |
|
|
Amortization of purchased intangible assets |
|
1,568 |
|
1,520 |
|
3,153 |
|
3,064 |
|
|
Total costs and expenses |
|
11,050 |
|
10,289 |
|
24,824 |
|
20,529 |
|
|
INCOME FROM OPERATIONS |
|
6,013 |
|
3,650 |
|
4,958 |
|
7,787 |
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
(420 |
) |
409 |
|
(124 |
) |
209 |
|
|
Interest expense |
|
(183 |
) |
(196 |
) |
(355 |
) |
(407 |
) |
|
Interest income |
|
1 |
|
3 |
|
4 |
|
8 |
|
|
INCOME BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST |
|
5,411 |
|
3,866 |
|
4,483 |
|
7,597 |
|
|
INCOME TAX PROVISION |
|
1,956 |
|
1,167 |
|
785 |
|
2,509 |
|
|
NET INCOME |
|
3,455 |
|
2,699 |
|
3,698 |
|
5,088 |
|
|
Less: Net income attributable to non-controlling interest |
|
15 |
|
46 |
|
43 |
|
9 |
|
|
NET INCOME ATTRIBUTABLE TO DYNAMIC MATERIALS CORPORATION |
|
$ |
3,440 |
|
$ |
2,653 |
|
$ |
3,655 |
|
$ |
5,079 |
|
|
INCOME PER SHARE: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.25 |
|
$ |
0.20 |
|
$ |
0.27 |
|
$ |
0.38 |
|
|
Diluted |
|
$ |
0.25 |
|
$ |
0.20 |
|
$ |
0.27 |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
13,526,623 |
|
13,205,620 |
|
13,523,028 |
|
13,203,310 |
|
|
Diluted |
|
13,530,588 |
|
13,209,732 |
|
13,527,011 |
|
13,207,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS DECLARED PER COMMON SHARE |
|
$ |
0.04 |
|
$ |
0.04 |
|
$ |
0.08 |
|
$ |
0.08 |
|
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
|
|
|
June 30, |
|
December 31, |
|
|
|
|
2013 |
|
2012 |
|
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,323 |
|
$ |
8,200 |
|
|
Accounts receivable, net |
|
41,511 |
|
36,981 |
|
|
Inventory |
|
45,563 |
|
48,320 |
|
|
Other current assets |
|
7,507 |
|
7,165 |
|
|
Total current assets |
|
96,904 |
|
100,666 |
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
59,860 |
|
53,976 |
|
|
Goodwill, net |
|
36,447 |
|
37,431 |
|
|
Purchased intangible assets, net |
|
38,121 |
|
41,958 |
|
|
Other long-term assets |
|
1,011 |
|
1,400 |
|
|
Total assets |
|
$ |
232,343 |
|
$ |
235,431 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
14,203 |
|
$ |
11,281 |
|
|
Customer advances |
|
4,763 |
|
1,363 |
|
|
Dividend payable |
|
549 |
|
540 |
|
|
Accrued income taxes |
|
906 |
|
406 |
|
|
Other current liabilities |
|
9,538 |
|
9,742 |
|
|
Lines of credit |
|
— |
|
981 |
|
|
Current portion of long-term debt |
|
63 |
|
65 |
|
|
Total current liabilities |
|
30,022 |
|
24,378 |
|
|
|
|
|
|
|
|
|
Lines of credit |
|
28,843 |
|
37,779 |
|
|
Long-term debt |
|
20 |
|
55 |
|
|
Deferred tax liabilities |
|
8,430 |
|
9,211 |
|
|
Other long-term liabilities |
|
1,668 |
|
1,452 |
|
|
Stockholders' equity |
|
163,360 |
|
162,556 |
|
|
Total liabilities and stockholders' equity |
|
$ |
232,343 |
|
$ |
235,431 |
|
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2013 AND 2012
(Amounts in Thousands)
(unaudited)
|
|
|
2013 |
|
2012 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net income |
|
$ |
3,698 |
|
$ |
5,088 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities - |
|
|
|
|
|
|
Depreciation (including capital lease amortization) |
|
2,874 |
|
2,729 |
|
|
Amortization of purchased intangible assets |
|
3,153 |
|
3,064 |
|
|
Amortization of deferred debt issuance costs |
|
51 |
|
66 |
|
|
Stock-based compensation |
|
2,057 |
|
1,935 |
|
|
Deferred income tax provision (benefit) |
|
196 |
|
(459 |
) |
|
Loss on disposal of property, plant and equipment |
|
21 |
|
(2 |
) |
|
Change in working capital, net |
|
3,348 |
|
(4,346 |
) |
|
Net cash provided by operating activities |
|
15,398 |
|
8,075 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
Acquisition of property, plant and equipment |
|
(9,726 |
) |
(5,595 |
) |
|
Acquisition of TRX Industries |
|
— |
|
(10,294 |
) |
|
Change in other non-current assets |
|
192 |
|
126 |
|
|
Net cash used in investing activities |
|
(9,534 |
) |
(15,763 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
Borrowings (repayments) on bank lines of credit, net |
|
(9,811 |
) |
9,924 |
|
|
Payments on long-term debt |
|
(32 |
) |
(1,138 |
) |
|
Payments on capital lease obligations |
|
(25 |
) |
(40 |
) |
|
Payment of dividends |
|
(1,088 |
) |
(1,074 |
) |
|
Net proceeds from issuance of common stock |
|
163 |
|
98 |
|
|
Tax impact of stock-based compensation |
|
(836 |
) |
(11 |
) |
|
Net cash provided by (used in) financing activities |
|
(11,629 |
) |
7,759 |
|
|
EFFECTS OF EXCHANGE RATES ON CASH |
|
(112 |
) |
(132 |
) |
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
(5,877 |
) |
(61 |
) |
|
CASH AND CASH EQUIVALENTS, beginning of the period |
|
8,200 |
|
5,276 |
|
|
CASH AND CASH EQUIVALENTS, end of the period |
|
$ |
2,323 |
|
$ |
5,215 |
|
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in thousands)
(unaudited)
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Explosive Metalworking |
|
$ |
32,390 |
|
$ |
27,374 |
|
$ |
58,572 |
|
$ |
54,908 |
|
|
Oilfield Products |
|
23,164 |
|
18,924 |
|
41,818 |
|
39,898 |
|
|
AMK Welding |
|
2,305 |
|
2,389 |
|
3,739 |
|
4,093 |
|
|
Net sales |
|
$ |
57,859 |
|
$ |
48,687 |
|
$ |
104,129 |
|
$ |
98,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Explosive Metalworking |
|
$ |
5,245 |
|
$ |
3,589 |
|
$ |
7,689 |
|
$ |
7,688 |
|
|
Oilfield Products |
|
2,157 |
|
1,701 |
|
3,880 |
|
3,747 |
|
|
AMK Welding |
|
404 |
|
165 |
|
110 |
|
77 |
|
|
Unallocated expenses |
|
(1,793 |
) |
(1,805 |
) |
(6,721 |
) |
(3,725 |
) |
|
Income from operations |
|
$ |
6,013 |
|
$ |
3,650 |
|
$ |
4,958 |
|
$ |
7,787 |
|
|
|
|
For the three months ended June 30, 2013 |
|
|
|
|
Explosive |
|
Oilfield |
|
AMK |
|
Unallocated |
|
|
|
|
|
|
Metalworking |
|
Products |
|
Welding |
|
Expenses |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
5,245 |
|
$ |
2,157 |
|
$ |
404 |
|
$ |
(1,793 |
) |
$ |
6,013 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest |
|
— |
|
(15 |
) |
— |
|
— |
|
(15 |
) |
|
Stock-based compensation |
|
— |
|
— |
|
— |
|
635 |
|
635 |
|
|
Depreciation |
|
946 |
|
360 |
|
151 |
|
–– |
|
1,457 |
|
|
Amortization of purchased intangibles |
|
521 |
|
1,047 |
|
— |
|
— |
|
1,568 |
|
|
Adjusted EBITDA |
|
$ |
6,712 |
|
$ |
3,549 |
|
$ |
555 |
|
$ |
(1,158 |
) |
$ |
9,658 |
|
|
|
|
For the three months ended June 30, 2012 |
|
|
|
|
Explosive |
|
Oilfield |
|
AMK |
|
Unallocated |
|
|
|
|
|
|
Metalworking |
|
Products |
|
Welding |
|
Expenses |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
3,589 |
|
$ |
1,701 |
|
$ |
165 |
|
$ |
(1,805 |
) |
$ |
3,650 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest |
|
— |
|
(46 |
) |
— |
|
— |
|
(46 |
) |
|
Stock-based compensation |
|
— |
|
— |
|
— |
|
966 |
|
966 |
|
|
Depreciation |
|
865 |
|
372 |
|
125 |
|
— |
|
1,362 |
|
|
Amortization of purchased intangibles |
|
513 |
|
1,007 |
|
— |
|
— |
|
1,520 |
|
|
Adjusted EBITDA |
|
$ |
4,967 |
|
$ |
3,034 |
|
$ |
290 |
|
$ |
(839 |
) |
$ |
7,452 |
|
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Amounts in thousands)
(unaudited)
|
|
|
For the six months ended June 30, 2013 |
|
|
|
|
Explosive |
|
Oilfield |
|
AMK |
|
Unallocated |
|
|
|
|
|
|
Metalworking |
|
Products |
|
Welding |
|
Expenses |
|
Total |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
7,689 |
|
$ |
3,880 |
|
$ |
110 |
|
$ |
(6,721 |
) |
$ |
4,958 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest |
|
— |
|
(43 |
) |
— |
|
— |
|
(43 |
) |
|
Stock-based compensation |
|
— |
|
— |
|
— |
|
2,057 |
|
2,057 |
|
|
Depreciation |
|
1,874 |
|
699 |
|
301 |
|
— |
|
2,874 |
|
|
Amortization of purchased intangibles |
|
1,049 |
|
2,104 |
|
— |
|
— |
|
3,153 |
|
|
Adjusted EBITDA |
|
$ |
10,612 |
|
$ |
6,640 |
|
$ |
411 |
|
$ |
(4,664 |
) |
$ |
12,999 |
|
|
|
|
For the six months ended June 30, 2012 |
|
|
|
|
Explosive |
|
Oilfield |
|
AMK |
|
Unallocated |
|
|
|
|
|
|
Metalworking |
|
Products |
|
Welding |
|
Expenses |
|
Total |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
7,688 |
|
$ |
3,747 |
|
$ |
77 |
|
$ |
(3,725 |
) |
$ |
7,787 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest |
|
— |
|
(9 |
) |
— |
|
— |
|
(9 |
) |
|
Stock-based compensation |
|
— |
|
— |
|
— |
|
1,935 |
|
1,935 |
|
|
Depreciation |
|
1,744 |
|
736 |
|
249 |
|
— |
|
2,729 |
|
|
Amortization of purchased intangibles |
|
1,036 |
|
2,028 |
|
— |
|
— |
|
3,064 |
|
|
Adjusted EBITDA |
|
$ |
10,468 |
|
$ |
6,502 |
|
$ |
326 |
|
$ |
(1,790 |
) |
$ |
15,506 |
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to DMC |
|
$ |
3,440 |
|
$ |
2,653 |
|
$ |
3,655 |
|
$ |
5,079 |
|
|
Interest expense |
|
183 |
|
196 |
|
355 |
|
407 |
|
|
Interest income |
|
(1 |
) |
(3 |
) |
(4 |
) |
(8 |
) |
|
Provision for income taxes |
|
1,956 |
|
1,167 |
|
785 |
|
2,509 |
|
|
Depreciation |
|
1,457 |
|
1,362 |
|
2,874 |
|
2,729 |
|
|
Amortization of purchased intangible assets |
|
1,568 |
|
1,520 |
|
3,153 |
|
3,064 |
|
|
EBITDA |
|
8,603 |
|
6,895 |
|
10,818 |
|
13,780 |
|
|
Stock-based compensation |
|
635 |
|
966 |
|
2,057 |
|
1,935 |
|
|
Other (income) expense, net |
|
420 |
|
(409 |
) |
124 |
|
(209 |
) |
|
Adjusted EBITDA |
|
$ |
9,658 |
|
$ |
7,452 |
|
$ |
12,999 |
|
$ |
15,506 |
|