-- Fourth Quarter diluted EPS of $0.10 on sales of $44.8 million
-- Explosive Metalworking backlog advances 37% to $56.5 million from $41.2
million at end of Q3
-- Oilfield Products sales up 92% versus 2009 fourth quarter on organic
growth and acquisitions
-- Long-term debt reduced by $23.4 million, or 49%, during fiscal 2010
Dynamic Materials Corporation (DMC) (
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Share Data)
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
---------------------- ----------------------
2010 2009 2010 2009
---------- ---------- ---------- ----------
NET SALES $ 44,826 $ 42,630 $ 154,739 $ 164,898
COST OF PRODUCTS SOLD 34,971 32,747 117,789 121,779
---------- ---------- ---------- ----------
Gross profit 9,855 9,883 36,950 43,119
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
General and administrative
expenses 3,706 3,661 13,696 12,980
Selling and distribution
expenses 3,217 2,461 11,135 8,837
Amortization of purchased
intangible assets 1,417 1,355 5,330 5,064
---------- ---------- ---------- ----------
Total costs and expenses 8,340 7,477 30,161 26,881
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 1,515 2,406 6,789 16,238
OTHER INCOME (EXPENSE):
Gain on step acquisition
of joint ventures - - 2,117 -
Other income (expense),
net 611 285 209 (275)
Interest income (expense),
net (569) (882) (2,972) (3,257)
Equity in earnings of
joint ventures - 51 255 221
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 1,557 1,860 6,398 12,927
INCOME TAX PROVISION 242 838 1,133 4,378
---------- ---------- ---------- ----------
NET INCOME $ 1,315 $ 1,022 $ 5,265 $ 8,549
========== ========== ========== ==========
INCOME PER SHARE:
Basic $ 0.10 $ 0.08 $ 0.40 $ 0.67
========== ========== ========== ==========
Diluted $ 0.10 $ 0.08 $ 0.40 $ 0.66
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING:
Basic 12,970,214 12,662,512 12,869,666 12,640,069
========== ========== ========== ==========
Diluted 12,980,471 12,676,231 12,881,754 12,662,440
========== ========== ========== ==========
DIVIDENDS DECLARED PER
COMMON SHARE $ 0.04 $ 0.04 $ 0.16 $ 0.12
========== ========== ========== ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
(Dollars in Thousands)
(unaudited)
ASSETS 2010 2009
--------- ---------
Cash and cash equivalents $ 4,572 $ 22,411
Accounts receivable, net 27,567 25,807
Inventories 35,880 32,501
Other current assets 4,716 7,255
--------- ---------
Total current assets 72,735 87,974
Property, plant and equipment, net 39,806 42,052
Goodwill, net 39,173 43,164
Purchased intangible assets, net 48,490 49,079
Other long-term assets 1,189 2,907
--------- ---------
Total assets $ 201,393 $ 225,176
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 16,109 $ 9,183
Customer advances 1,531 6,528
Dividend payable 529 515
Accrued income taxes 477 1,485
Other current liabilities 7,529 9,162
Lines of credit 2,621 1,777
Current portion of long-term debt 9,596 13,485
--------- ---------
Total current liabilities 38,392 42,135
Long-term debt 14,579 34,120
Deferred tax liabilities 12,083 15,217
Other long-term liabilities 1,415 1,593
Stockholders' equity 134,924 132,111
--------- ---------
Total liabilities and stockholders' equity $ 201,393 $ 225,176
========= =========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010 AND 2009
(Dollars in Thousands)
(unaudited)
2010 2009
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 5,265 $ 8,549
Adjustments to reconcile net income to net cash
provided by operating activities -
Depreciation (including capital lease
amortization) 5,383 5,042
Amortization of purchased intangible assets 5,330 5,064
Amortization of capitalized debt issuance costs 587 297
Stock-based compensation 3,501 3,425
Deferred income tax benefit (1,708) (2,784)
Equity in earnings of joint ventures (255) (221)
Gain on step acquisition of joint ventures (2,117) -
Loss on sale of property, plant and equipment 34 -
Change in working capital, net 673 10,168
-------- --------
Net cash provided by operating activities 16,693 29,540
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Austin Explosives Company (3,620) -
Step acquisition of joint ventures, net of cash
acquired (2,065) -
Acquisition of LRI, net of cash acquired - (284)
Acquisition of property, plant and equipment (3,527) (3,917)
Change in other non-current assets (53) 59
-------- --------
Net cash used in investing activities (9,265) (4,142)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on syndicated term loans (22,124) (13,614)
Borrowings (repayments) on lines of credit, net 780 (952)
Payments on long-term debt (797) (2,107)
Payments on capital lease obligations (304) (203)
Payment of dividends (2,089) (1,028)
Payment of deferred debt issuance costs - (341)
Net proceeds from issuance of common stock 188 425
Tax impact of stock-based compensation (601) 90
-------- --------
Net cash used in financing activities (24,947) (17,730)
-------- --------
EFFECTS OF EXCHANGE RATES ON CASH (320) 383
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (17,839) 8,051
CASH AND CASH EQUIVALENTS, beginning of the period 22,411 14,360
-------- --------
CASH AND CASH EQUIVALENTS, end of the period $ 4,572 $ 22,411
======== ========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Dollars in thousands)
Three months ended Twelve months ended
December 31, December 31,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
(unaudited) (unaudited)
Explosive Metalworking Group $ 25,649 $ 31,693 $ 98,570 $ 134,096
Oilfield Products 16,464 8,593 45,332 21,764
AMK Welding 2,713 2,344 10,837 9,038
--------- --------- --------- ---------
Net sales $ 44,826 $ 42,630 $ 154,739 $ 164,898
========= ========= ========= =========
Explosive Metalworking Group $ 630 $ 3,453 $ 5,039 $ 20,835
Oilfield Products 1,257 (728) 2,747 (2,742)
AMK Welding 592 448 2,504 1,570
Unallocated expenses (964) (767) (3,501) (3,425)
--------- --------- --------- ---------
Income from operations $ 1,515 $ 2,406 $ 6,789 $ 16,238
========= ========= ========= =========
For the three months ended December 31, 2010
-------------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
------------ ---------- ----------- ----------- -----------
(unaudited)
Income from
operations $ 630 $ 1,257 $ 592 $ (964) $ 1,515
Adjustments:
Stock-based
compensation - - - 964 964
Depreciation 985 369 121 1,475
Amortization
of purchased
intangibles 565 852 - - 1,417
------------ ---------- ----------- ----------- -----------
Adjusted
EBITDA $ 2,180 $ 2,478 $ 713 $ - $ 5,371
============ ========== =========== =========== ===========
For the three months ended December 31, 2009
-------------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
------------ ---------- ----------- ----------- -----------
(unaudited)
Income (loss)
from
operations $ 3,453 $ (728) $ 448 $ (767) $ 2,406
Adjustments:
Stock-based
compensation - - - 767 767
Depreciation 900 328 114 - 1,342
Amortization
of purchased
intangibles 637 718 - - 1,355
------------ ---------- ----------- ----------- -----------
Adjusted
EBITDA $ 4,990 $ 318 $ 562 $ - $ 5,870
============ ========== =========== =========== ===========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Dollars in thousands)
For the twelve months ended December 31, 2010
-------------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
------------ ---------- ----------- ----------- -----------
(unaudited)
Income from
operations $ 5,039 $ 2,747 $ 2,504 $ (3,501) $ 6,789
Adjustments:
Stock-based
compensation - - - 3,501 3,501
Depreciation 3,620 1,292 471 - 5,383
Amortization
of purchased
intangibles 2,271 3,059 - - 5,330
------------ ---------- ----------- ----------- -----------
Adjusted
EBITDA $ 10,930 $ 7,098 $ 2,975 $ - $ 21,003
============ ========== =========== =========== ===========
For the twelve months ended December 31, 2009
-------------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
------------ ---------- ----------- ----------- -----------
(unaudited)
Income (loss)
from
operations $ 20,835 $ (2,742) $ 1,570 $ (3,425) $ 16,238
Adjustments:
Stock-based
compensation - - - 3,425 3,425
Depreciation 3,581 1,005 456 - 5,042
Amortization
of purchased
intangibles 2,407 2,657 - - 5,064
------------ ---------- ----------- ----------- -----------
Adjusted
EBITDA $ 26,823 $ 920 $ 2,026 $ - $ 29,769
============ ========== =========== =========== ===========
Three months ended Twelve months ended
December 31, December 31,
-------------------- --------------------
2010 2009 2010 2009
-------- -------- -------- --------
(unaudited) (unaudited)
Net income $ 1,315 $ 1,022 $ 5,265 $ 8,549
Interest expense 573 952 3,046 3,473
Interest income (4) (70) (74) (216)
Provision for income taxes 242 838 1,133 4,378
Depreciation 1,475 1,342 5,383 5,042
Amortization of purchased
intangible assets 1,417 1,355 5,330 5,064
-------- -------- -------- --------
EBITDA 5,018 5,439 20,083 26,290
Stock-based compensation 964 767 3,501 3,425
Other (income) expense, net (611) (285) (2,326) 275
Equity in earnings of
joint ventures - (51) (255) (221)
-------- -------- -------- --------
Adjusted EBITDA $ 5,371 $ 5,870 $ 21,003 $ 29,769
======== ======== ======== ========
Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044