Selected Highlights
-- Company reports third quarter EPS of $0.58 versus $0.30 in same
quarter last year
-- Net income up 93% to $7.1 million versus Q3 last year
-- Sales increase 69% to $42.1 million versus comparable year-ago period
-- Explosive Metalworking backlog remains strong at $77.1 million
Dynamic Materials Corporation (DMC) (
DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Dollars in Thousands, Except Share Data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
----------------------- -----------------------
2007 2006 2007 2006
----------- ---------- ----------- ----------
NET SALES $ 42,099 $ 24,852 $ 109,964 $ 77,781
COST OF PRODUCTS SOLD 27,807 16,542 72,741 50,270
----------- ---------- ----------- ----------
Gross profit 14,292 8,310 37,223 27,511
----------- ---------- ----------- ----------
COSTS AND EXPENSES:
General and
Administrative expenses 1,903 1,267 5,419 3,948
Selling expenses 1,811 904 4,913 3,174
----------- ---------- ----------- ----------
Total costs and
expenses 3,714 2,171 10,332 7,122
----------- ---------- ----------- ----------
INCOME FROM OPERATIONS OF
CONTINUING OPERATIONS 10,578 6,139 26,891 20,389
OTHER INCOME (EXPENSE):
Interest income, net 213 121 578 347
Other income (expense) 23 (23) 3 (40)
----------- ---------- ----------- ----------
INCOME BEFORE
INCOME TAXES AND
DISCONTINUED
OPERATIONS 10,814 6,237 27,472 20,696
INCOME TAX PROVISION 3,697 2,547 9,813 7,865
----------- ---------- ----------- ----------
INCOME FROM CONTINUING
OPERATIONS 7,117 3,690 17,659 12,831
INCOME FROM DISCONTINUED
OPERATIONS, net of tax - - - 1,357
----------- ---------- ----------- ----------
NET INCOME $ 7,117 $ 3,690 $ 17,659 $ 14,188
=========== ========== =========== ==========
INCOME PER SHARE - BASIC:
Continuing operations $ 0.59 $ 0.31 $ 1.47 $ 1.09
Discontinued
operations - - - 0.11
----------- ---------- ----------- ----------
Net income $ 0.59 $ 0.31 $ 1.47 $ 1.20
=========== ========== =========== ==========
INCOME PER SHARE - DILUTED:
Continuing operations $ 0.58 $ 0.30 $ 1.44 $ 1.05
Discontinued
operations - - - 0.11
----------- ---------- ----------- ----------
Net income $ 0.58 $ 0.30 $ 1.44 $ 1.16
=========== ========== =========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING -
Basic 12,094,181 11,865,336 12,039,593 11,813,371
=========== ========== =========== ==========
Diluted 12,301,772 12,210,791 12,245,212 12,216,283
=========== ========== =========== ==========
ANNUAL DIVIDENDS DECLARED
PER COMMON SHARE $ - $ - $ 0.15 $ 0.15
=========== ========== =========== ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
ASSETS September 30, December 31,
2007 2006
(unaudited)
-------------- --------------
Cash and cash equivalents $ 22,044 $ 17,886
Restricted cash - 3,059
Accounts receivable, net 20,077 21,549
Inventories 33,793 19,226
Other current assets 2,987 2,127
-------------- --------------
Total current assets 78,901 63,847
Property, plant and equipment, net 26,584 20,260
Other long-term assets 870 866
-------------- --------------
Total assets $ 106,355 $ 84,973
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 17,400 $ 13,572
Accrued income taxes 1,455 1,892
Customer advances 2,619 2,394
Other current liabilities 6,760 7,057
Current portion of long-term debt 413 382
-------------- --------------
Total current liabilities 28,647 25,297
Long-term debt - 382
Other long-term liabilities 1,652 1,714
Stockholders' equity 76,056 57,580
-------------- --------------
Total liabilities and stockholders' equity $ 106,355 $ 84,973
============== ==============
DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Dollars in Thousands)
(unaudited)
2007 2006
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 17,659 $ 14,188
Adjustments to reconcile net income to net
Cash provided by operating activities -
Income from discontinued operations, net
of tax - (1,357)
Depreciation 1,394 1,020
Amortization of capitalized debt
issuance costs - 50
Stock-based compensation 912 436
Provision for deferred income taxes (239) 923
Change in working capital, net (6,940) 997
------------- -------------
Net cash provided by operating
activities 12,786 16,257
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and
equipment (7,347) (5,154)
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 (11) 219
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 (7,358) (785)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on lines of credit, net - (47)
Payments on long-term debt (389) (2,081)
Payment of dividends (1,821) (1,766)
Net proceeds from issuance of common stock 563 523
Tax benefit related to stock options 5 948
Other cash flows from financing activities 15 22
------------- -------------
Net cash flows used in financing
activities (1,627) (2,401)
------------- -------------
EFFECTS OF EXCHANGE RATES ON CASH 357 327
------------- -------------
NET INCREASE IN CASH AND CASH
EQUIVALENTS 4,158 13,398
CASH AND CASH EQUIVALENTS, beginning of the
period 17,886 5,763
------------- -------------
CASH AND CASH EQUIVALENTS, end of the period $ 22,044 $ 19,161
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Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044