DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Share Data)
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
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2007 2006 2007 2006
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NET SALES $ 55,211 $ 35,691 $ 165,175 $ 113,472
COST OF PRODUCTS SOLD 37,426 21,170 110,168 71,439
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Gross profit 17,785 14,521 55,007 42,033
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COSTS AND EXPENSES:
General and administrative
expenses 2,630 1,854 8,049 5,802
Selling expenses 1,962 2,953 6,875 6,128
Amortization expense of
purchased intangible
assets 1,191 - 1,191 -
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Total costs and expenses 5,783 4,807 16,115 11,930
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INCOME FROM OPERATIONS OF
CONTINUING OPERATIONS 12,002 9,714 38,892 30,103
OTHER INCOME (EXPENSE):
Other expense (162) (75) (158) (115)
Interest income (expense),
net (601) 272 (24) 620
Equity in earnings of joint
ventures 24 - 24 -
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INCOME BEFORE INCOME TAXES
AND DISCONTINUED OPERATIONS 11,263 9,911 38,734 30,608
INCOME TAX PROVISION 4,334 3,476 14,147 11,341
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INCOME FROM CONTINUING
OPERATIONS 6,929 6,435 24,587 19,267
INCOME FROM DISCONTINUED
OPERATIONS, net of tax - 141 - 1,497
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NET INCOME $ 6,929 $ 6,576 $ 24,587 $ 20,764
========== ========== ========== ==========
INCOME PER SHARE - BASIC:
Continuing operations $ 0.57 $ 0.54 $ 2.03 $ 1.63
Discontinued operations - 0.01 - 0.12
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Net income $ 0.57 $ 0.55 $ 2.03 $ 1.75
========== ========== ========== ==========
INCOME PER SHARE - DILUTED:
Continuing operations $ 0.56 $ 0.53 $ 2.00 $ 1.58
Discontinued operations - 0.01 - 0.12
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Net income $ 0.56 $ 0.54 $ 2.00 $ 1.70
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING -
Basic 12,249,681 11,924,467 12,083,851 11,841,373
========== ========== ========== ==========
Diluted 12,455,468 12,206,704 12,293,158 12,213,075
========== ========== ========== ==========
ANNUAL DIVIDENDS DECLARED
PER COMMON SHARE $ - $ - $ 0.15 $ 0.15
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DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
ASSETS 2007 2006
--------- ---------
Cash and cash equivalents $ 9,045 $ 17,886
Restricted cash 371 3,059
Accounts receivable, net 39,833 21,549
Inventories 41,628 19,226
Other current assets 3,853 2,127
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Total current assets 94,730 63,847
Property, plant and equipment, net 35,446 20,260
Goodwill, net 45,862 847
Intangible assets, net 61,914 -
Other long-term assets 2,947 19
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Total assets $ 240,899 $ 84,973
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 22,590 $ 13,572
Accrued income taxes 1,212 1,892
Other current liabilities 19,394 9,451
Lines of credit - current 7,587 -
Current portion of long-term debt 8,035 382
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Total current liabilities 58,818 25,297
Long-term debt 61,530 382
Deferred tax liabilities 20,604 1,512
Other long-term liabilities 1,668 202
Stockholders' equity 98,279 57,580
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Total liabilities and stockholders' equity $ 240,899 $ 84,973
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DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2007 AND 2006
(Dollars in Thousands)
(unaudited)
2007 2006
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 24,587 $ 20,764
Adjustments to reconcile net income to net cash
provided by operating activities -
Income from discontinued operations, net of tax - (1,497)
Depreciation and amortization 3,347 1,369
Amortization of capitalized debt issuance costs 30 50
Stock-based compensation 1,301 660
Provision for deferred income taxes (357) 2,115
Equity in earnings of joint ventures (24) -
Change in working capital, net (10,200) (6,904)
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Net cash provided by operating activities 18,684 16,557
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CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of DYNAenergetics, net of cash acquired (81,224) -
Acquisition of property, plant and equipment (8,979) (8,650)
Sale of marketable securities - 1,950
Loan to related party - (1,206)
Repayment on loan to related party - 1,206
Change in other non-current assets (87) 290
Payment received on other receivables related to
discontinued operations - 576
Cash flows provided by investing activities of
discontinued operations - 3,089
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Net cash used in investing activities (90,290) (2,745)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowed under syndicated credit agreement 65,480 -
Repayments on lines of credit, net (524) (48)
Payments on long-term debt (655) (2,084)
Payments on capital lease obligations (34) -
Payment of dividends (1,821) (1,766)
Payment of deferred debt issuance costs (1,534) -
Net proceeds from issuance of common stock 891 585
Excess tax benefit related to stock options 402 1,154
Other cash flows from financing activities 87 (19)
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Net cash provided by (used in) financing
activities 62,292 (2,178)
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EFFECTS OF EXCHANGE RATES ON CASH 473 489
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (8,841) 12,123
CASH AND CASH EQUIVALENTS, beginning of the period 17,886 5,763
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CASH AND CASH EQUIVALENTS, end of the period $ 9,045 $ 17,886
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Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044