BOOM DMC Global Inc

Selected Highlights BOULDER, Colo., April 26 /PRNewswire-FirstCall/ -- Dynamic Materials Corporation (DMC) (NASDAQ:BOOM), a leading provider of explosion-welded clad metal plates, today reported financial results for its first quarter ended March 31, 2007. Sales increased 31% to $33.1 million from sales of $25.2 million in the first quarter last year. Gross margin was 33% versus 37% in the same quarter a year ago. The decline in gross margin is attributable to normal quarterly fluctuations in product mix. First quarter income from operations increased 17% to $7.5 million versus $6.4 million in the comparable year-ago quarter. Income from continuing operations increased 18% to $4.9 million, or $0.40 per diluted share, from $4.1 million, or $0.34 per diluted share in the first quarter last year. Net income was $4.9 million, or $0.40 per diluted share, versus net income of $5.5 million, or $0.45 per diluted share, in the first quarter a year ago. Last year's first quarter net income included a gain from discontinued operations of $1.4 million, or $0.11 per diluted share, net of tax, attributable to the sale of a real estate purchase option. Explosive Metalworking First quarter sales at the company's Explosive Metalworking segment increased 30% to $31.5 million from $24.2 million in the first quarter last year. Operating income increased 13% to $7.5 million from $6.7 million in last year's first quarter. Order backlog at the end of the first quarter was $67.9 million, down slightly from the all-time high $68.8 million reported at the end of last year's fourth quarter. AMK Welding Sales at DMC's AMK Welding segment increased 60% to $1.6 million versus sales of $1.0 million in the first quarter last year. Operating income increased 144% to $264,000 versus $108,000 reported in the comparable year-ago quarter. Management Commentary Yvon Cariou, president and chief executive officer, said, "Our first quarter financial results were stronger than expected thanks to the convergence of several positive developments. Late in the quarter, we received earlier-than-anticipated deliveries of select source metals at our Mt. Braddock, Pennsylvania facility, and our team responded with a tremendous effort and many long hours to move these metals through production. In addition, we were able to utilize some of the new equipment we have been bringing on-line at Mt. Braddock as part of our capacity expansion program. "We expect that the new capacity at our U.S. facilities will be largely operational by the end of the current quarter, and we are pleased by the progress being made on the modernization of our production sites in France and Sweden," Cariou added. "Although we expect to see ongoing tightness in the metal supply chain, we remain encouraged by the continued strong demand we are experiencing from across all of our global target markets." Rick Santa, chief financial officer, said, "We previously indicated that the last three quarters of fiscal 2007 could be stronger than the first quarter, which we believed would be impacted by metal supply issues. Given our better-than-expected Q1 performance, we now believe that our second quarter results will likely be comparable to those of the first. For the full fiscal year, we are reiterating our forecast of year-over-year top-line growth in the 20 percent range." Conference call information Management will hold a conference call to discuss first quarter 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 http://www.dynamicmaterials.com/, or by dialing into the teleconference at 866-510-0710 (617-597-5378 for international callers) and entering the passcode 81853317. 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 30 days and a telephonic replay will be available through May 3, 2007, by calling 888-286-8010 (617-801-6888 for international callers) and entering the passcode 42763833. About Dynamic Materials Corporation Based in Boulder, Colorado, Dynamic Materials Corporation is a leading international metalworking company. Its products, which are typically used in industrial capital projects, include explosion-welded clad metal plates and other metal fabrications for use in a variety of industries, including upstream oil and gas, oil refinery, petrochemicals, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration and similar industries. The Company operates two business segments: Explosive Metalworking, which uses proprietary explosive processes to fuse different metals and alloys, and AMK Welding, which utilizes various technologies to weld components for use in power-generation turbines, as well as commercial and military jet engines. For more information, visit the Company's website at http://www.dynamicmaterials.com/. Except for the historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties including, but not limited to, the following: our ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipment; fluctuations in customer demand; changes to customer orders; the cyclicality of our business; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timely receipt of government approvals and permits; the adequacy of local labor supplies at 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, 2006. DYNAMIC MATERIALS CORPORATION & SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006 (Dollars in Thousands, Except Share Data) (unaudited) Three months ended March 31, 2007 2006 NET SALES $33,094 $25,175 COST OF PRODUCTS SOLD 22,243 15,894 Gross profit 10,851 9,281 COSTS AND EXPENSES: General and administrative expenses 1,662 1,527 Selling expenses 1,647 1,324 Total costs and expenses 3,309 2,851 INCOME FROM OPERATIONS OF CONTINUING OPERATIONS 7,542 6,430 OTHER INCOME (EXPENSE): Interest income, net 188 94 Other income (expense), net (7) (6) INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS 7,723 6,518 INCOME TAX PROVISION 2,841 2,379 INCOME FROM CONTINUING OPERATIONS 4,882 4,139 INCOME FROM DISCONTINUED OPERATIONS, net of tax -- 1,357 NET INCOME $4,882 $5,496 INCOME PER SHARE - BASIC: Continuing operations $0.41 $0.35 Discontinued operations -- 0.12 Net income $0.41 $0.47 INCOME PER SHARE - DILUTED: Continuing operations $0.40 $0.34 Discontinued operations -- 0.11 Net income $0.40 $0.45 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - Basic 12,009,577 11,768,098 Diluted 12,222,601 12,217,547 ANNUAL DIVIDENDS DECLARED PER COMMON SHARE $-- $0.15 DYNAMIC MATERIALS CORPORATION & SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) ASSETS March 31, December 31, 2007 2006 (unaudited) Cash and cash equivalents $19,779 $17,886 Restricted cash -- 3,059 Accounts receivable, net 20,999 21,549 Inventories 21,723 19,226 Other current assets 2,114 2,127 Total current assets 64,615 63,847 Property, plant and equipment, net 23,145 20,260 Other long-term assets 862 866 Total assets $88,622 $84,973 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $11,552 $13,572 Accrued income taxes 3,909 1,892 Customer advances 2,369 2,394 Other current liabilities 5,335 7,057 Current portion of long-term debt 386 382 Total current liabilities 23,551 25,297 Long-term debt 386 382 Other long-term liabilities 1,660 1,714 Stockholders' equity 63,025 57,580 Total liabilities and stockholders' equity $88,622 $84,973 DYNAMIC MATERIALS CORPORATION & SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006 (Dollars in Thousands) (unaudited) 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $4,882 $5,496 Adjustments to reconcile net income to net cash provided by operating activities - Income from discontinued operations, net of tax -- (1,357) Depreciation 395 317 Amortization of capitalized debt issuance costs -- 7 Stock-based compensation 224 336 Provision for deferred income taxes (46) 320 Change in working capital, net (622) 1,374 Net cash flows provided by operating activities 4,833 6,493 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant and equipment (3,257) (469) Sale of marketable securities -- 1,950 Loan to related party -- (1,206) Change in other non-current assets -- 79 Payment received on other receivables related to discontinued operations -- 3 Cash flows provided by investing activities of discontinued operations -- 2,197 Net cash flows used in investing activities (3,257) 2,554 CASH FLOWS FROM FINANCING ACTIVITIES: Repayments on lines of credit, net -- (45) Payments on long-term debt -- (45) Payment of dividends -- (1,766) Net proceeds from issuance of common stock 278 74 Tax benefit related to stock options -- 54 Other cash flows from financing activities 5 7 Net cash flows used in financing activities 283 (1,721) EFFECTS OF EXCHANGE RATES ON CASH 34 25 NET INCREASE IN CASH AND CASH EQUIVALENTS 1,893 7,351 CASH AND CASH EQUIVALENTS, beginning of the period 17,886 5,763 CASH AND CASH EQUIVALENTS, end of the period $19,779 $13,114 DATASOURCE: Dynamic Materials Corporation CONTACT: Geoff High of Pfeiffer High Investor Relations, Inc., +1-303-393-7044, for Dynamic Materials Corporation Web site: http://www.dynamicmaterials.com/

Copyright