Dmc Global Inc. · NASDAQ:BOOM
Dmc Global — Investor Presentation (June 2022)
52 slides from Dmc Global's investor presentation, June 2022
Slide 1: Investor Presentation June 2022
Investor Presentation June 2022 © 2022 DMC. All rights reserved.
Slide 2: Cautionary Statement Regarding Forward-Looking Information
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This presentation contains “forward-looking Although we believe that our expectations as expressed and foreign, impacting our business and the business of statements” within the meaning of section 27A of the in these forward-looking statemen
Slide 3: About DMC
ABOUT DMC • DMC Global has built a portfolio of innovative companies that provide differentiated products and services to niche segments of the energy, industrial and building products markets • We empower our companies to lead the markets they serve and believe in localized decision making versus c
Slide 4: Select Data
SELECT DATA Symbol (Nasdaq GS): BOOM 52-week price range: $18.74 – $63.50 Average daily volume: 157,000 Market capitalization: $564 Million Shares outstanding: 19.5 Million Approximate float: 18.6 Million Fiscal year: December 31 Revenue (ttm): $343.2 Million Pro forma revenue1 (ttm): $526.3 Million
Slide 5: DMC Performance
DMC PERFORMANCE Sales Adjusted EBITDA** $600 $100 $90 93.8 $500 $80 500.5 500.5 $70 $400 397.6 $60 59.6 $300 $50 326.4 50.1 50.1 $40 260.1 $200 229.2 $30 192.8 31.5 158.6 $20 138.7 23.1 $100 112.9 20.2 19.1 $10 11.8 10.5 9.0 $0 $0 1 1,2 1,2 2 2016 2017 2018 2019 2020 2021 20211 Q1 '21 Q1 '22 2016 20
Slide 6: Management
MANAGEMENT KEVIN LONGE MICHAEL KUTA MICHELLE SHEPSTON President & CEO CFO EVP & CLO Named President, CEO and Director in 2013 Joined DMC as CFO in 2014 Joined DMC in 2016 Extensive experience repositioning, building, Expertise in integrating mergers and Expertise in mergers & acquisitions, equity op
Slide 7: Management
MANAGEMENT JOHN SCHEATZLE JEFF FITHIAN GEOFF HIGH Senior VP, Manufacturing Operations CIO VP, IR & Corp. Comm. & Sustainability Joined DMC in 2014 Joined DMC in 2014 Joined DMC in 2022 Expertise in IT strategy, digital transformation, Expertise in institutional, analyst and retail Expertise in manag
Slide 8: Business Leadership
BUSINESS LEADERSHIP JIM SCHLADEN IAN GRIEVES ANTOINE NOBILI CEO, Arcadia President, DynaEnergetics President, NobelClad Joined Arcadia in 1986 and named president in Joined DynaEnergetics in 2013 Joined NobelClad in 1995, named president in 2000 Expertise in oil and gas products, operations 2020 Mor
Slide 9: Non-Executive Directors
NON-EXECUTIVE DIRECTORS DAVID ALDOUS ANDREA BERTONE ROBERT COHEN RUTH DREESSEN Chairman of DMC Global. Former President of Duke Former President & CEO of Former Managing Director of More than 20 years in Energy International LLC. Korea First Bank. Former J.P. Morgan’s Chemicals executive leadership
Slide 10: Our Culture and Employee Value Proposition
OUR CULTURE EMPLOYEE VALUE PROPOSITION DMC promotes a culture that We are committed to supports local innovation and providing a highly supportive environment where people growth. We empower people and are challenged to excel and organizations by institutionalizing empowered to transform entrepreneu
Slide 11: DMC Family of Businesses
DMC FAMILY OF BUSINESSES Architectural building products for Well completion and well Composite metal solutions for the commercial construction and decommissioning solutions for global global industrial infrastructure and high-end residential markets energy industry transportation industries DMC Inv
Slide 12: Sales by End Market
SALES BY END MARKET Energy Products 35% Architectural Building Products 48% 17% Industrial Infrastructure DMC Investor Presentation 12
Slide 13: Market Size Overview
MARKET SIZE OVERVIEW $ millions 4,500 Commercial 4,000 Interiors $1B 3,500 3,000 High-End Residential $1.5 Billion 2,500 2,000 1,500 Commercial Exteriors 1,000 $2 Billion $1.5 Billion 500 $500 million 0 NobelClad DynaEnergetics Arcadia Estimated market share: 20% Estimated market share: 20% Estimate
Slide 14: Diversified Revenue Streams
DIVERSIFIED REVENUE STREAMS DMC has leading positions in diverse markets with distinct cycles Covid Pandemic 700,000 600,000 500,000 Subprime Financial Crisis Oil Price Collapse 400,000 300,000 200,000 100,000 - ($000) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 15: Arcadia
Presentation Title 6/1/22 15
Slide 16: Arcadia Overview
ARCADIA OVERVIEW Arcadia is a leading supplier of architectural building products, which include exterior and interior framing systems, windows, curtain walls and interior partitions for the commercial buildings market; and highly engineered windows and doors for the high-end residential market • Hi
Slide 17: Arcadia Performance
ARCADIA PERFORMANCE Sales Adjusted EBITDA* $300 $35 $250 $30 30.0 1 240.3 $25 $200 $20 $150 $15 $100 $10 68.0 7.7 $50 6.9 57.2 $5 $0 $0 1 1 1,2 1, 2 2 2021 Q1 '21 Q1 '22 2021 Q1 '21 Q1 '22 $ in millions 1 Pro forma 2 Excludes 40% non-controlling interest in Arcadia *Non-GAAP financial measure 17
Slide 18: One Company Serving Three Distinct Markets
ONE COMPANY SERVING THREE DISTINCT MARKETS Arcadia Wilson Partitions Arcadia Custom (Commercial Exteriors) (Commercial Interiors) (High-end Residential) • Architectural framing systems • Door framing systems • Thermally broken steel and • Curtain and window walls • Aluminum doors aluminum windows an
Slide 19: Arcadia Serves Growing Low and Mid-Rise Commercial Exterior Market
ARCADIA SERVES GROWING LOW AND MID-RISE COMMERCIAL EXTERIOR MARKET • Commercial exteriors business has captured 10% share in addressable western and southwestern U.S. markets • Serves highly diversified customer base with 2,000+ unique buyers • Strong recurring order rates: average customer places ~
Slide 20: Wilson Partitions Business Model Built to Succeed in Up and Down Cycles
WILSON PARTITIONS BUSINESS MODEL BUILT TO SUCCEED IN UP AND DOWN ECONOMIC CYCLES • Provides custom interior framing systems for broad range of commercial end markets • Sells through national sales force • Supported by manufacturing facilities in California, Connecticut and Texas • Countercyclical de
Slide 21: Arcadia Custom Addressing Growing High-End Residential Market
ARCADIA CUSTOM ADDRESSING GROWING HIGH-END RESIDENTIAL REAL ESTATE MARKET • Provides custom, fully fabricated steel, aluminum and wood windows and doors to luxury home market • Supported by national network of sales agents, and approximately 140 high-end window and door dealers • Serves large and gr
Slide 22: Arcadia's National Presence
ARCADIA’S NATIONAL PRESENCE Arcadia facilities Manufacturing Finishing Regional Service Centers Manufactures architectural framing solutions In-house painting and anodizing Local service centers with onsite fabrication • Efficient manufacturing base allows for cost- • Offers custom paint and anodize
Slide 23: DynaEnergetics
DMCGlobal.com DynaEnergetics Manufacturing Campus – Blum, Texas
Slide 24: DynaEnergetics Overview
DYNAENERGETICS OVERVIEW • DynaEnergetics is a leading provider of well-completion and well decommissioning solutions to the global oil and gas industry, and also manufacturers specialized initiating systems for the mining industry • Primary offering is perforating systems for the unconventional oil
Slide 25: DynaEnergetics' Performance
DYNAENERGETICS’ PERFORMANCE Sales Adjusted EBITDA* $350 $100 $90 94.5 $300 310.4 $80 1 $250 $70 237.4 $60 $200 58.8 $50 175.4 $150 $40 146.4 $30 121.3 $100 1 $20 22.8 $50 5.3 67.3 16.4 16.3 $10 48.9 38.2 3.5 2.5 $0 $0 1 2016 2017 2018 2019 2020 2021 Q1 '21 Q1 '22 2016 2017 2018 2019 2020 2021 Q1 '22
Slide 26: Products Essential in Well Completion Process
DYNAENERGETICS’ PRODUCTS ESSENTIAL IN WELL COMPLETION PROCESS Step 1: Drilling Step 2: Completion Step 3: Production • During the drilling process, metal pipe is inserted into the wellbore and encased in cement • Before hydrocarbons can flow into the well and up to the surface, the well must be comp
Slide 27: A Better Business Model
A BETTER BUSINESS MODEL • DynaEnergetics is a single-source provider of completion solutions, simplifying the supply chain and logistics • Operators can achieve cost savings of up to $250,000 per well Service Compa ny Headqu arters DynaEnergetics single-source model Traditional multi-vendor model DM
Slide 28: DS Perforating System vs. Traditional Perforating Gun
DS FACTORY-ASSEMBLED, PERFORMANCE-ASSURED™ PERFORATING SYSTEM VS. TRADITIONAL PERFORATING GUN & COMPONENTS DynaEnergetics DS Perforating System Traditional Perforating Gun & Components Resistorized detonator IS2™ Top-Fire Wireless Detonator Addressable switch DMC Investor Presentation 28
Slide 29: DS Systems Provide Business Model Advantage
DS SYSTEMS PROVIDE BUSINESS MODEL ADVANTAGE DS System Advantages: Benefits: • Factory-assembled and tested systems are delivered directly • No misfires – 99.96% reliability rate to the wellsite or staging facility • Reduced transportation, storage and labor costs • System is armed in seconds with In
Slide 30: Well Decommissioning Tools
WELL DECOMMISSIONING TOOLS • DynaEnergetics provides a broad suite of products used to permanently seal end-of-life wells. • These include the innovative DynaSlot system, which incorporates unique slotted charges configured in a helical, overlapping pattern. • Market opportunity for advanced decommi
Slide 31: Capacity in Place
CAPACITY IN PLACE Four manufacturing, R&D, and customer training centers – two in Texas, two in Germany Six automated IS2 assembly lines in Troisdorf, Germany Four shaped charge manufacturing lines in Texas and Germany Fifty CNC machines for TSA and gun manufacturing in Texas and Germany Six DS asse
Slide 32: NobelClad
32 NobelClad Manufacturing Campus – Liebenscheid, Germany
Slide 33: NobelClad Overview
NOBELCLAD OVERVIEW NobelClad is a leading global supplier of specialized industrial building products Serves a diverse range of end markets with custom, composite-metal solutions for use in industrial processing, construction and infrastructure projects Competitive advantages include industry-leadin
Slide 34: NobelClad's Performance
NOBELCLAD’S PERFORMANCE Sales Adjusted EBITDA* $120 $25 $100 $20 91.3 89.0 $80 87.1 84.8 82.8 $15 15.5 12.9 71.6 $60 13.7 $10 11.1 10.8 10.7 $40 7.7 $5 $20 21.9 1.7 17.5 2.7 $0 $0 2016 2017 2018 2019 2020 2021 Q1 '22 Q1 '21 2016 2017 2018 2019 2020 2021 Q1 '21 Q1 '22 $ in millions *Non-GAAP financia
Slide 35: Investments in Application Development
INVESTMENTS IN APPLICATION DEVELOPMENT Investments in product and application development creating growth opportunities in new and existing markets: • Gold processing • Transportation • Petrochemical • Clad pipe • Engineered wood • Concentrating solar power Structural transition joints from NobelCla
Slide 36: Demand Drivers for Composite Metals
DEMAND DRIVERS FOR COMPOSITE METALS Global Infrastructure Corrosive Design Investment Environments Flexibility DMC Investor Presentation 36
Slide 37: NobelClad Products and Associated Applications
NOBELCLAD PRODUCTS AND ASSOCIATED APPLICATIONS Clad Product Clad Plate Clad Head Tube Sheet Structural Transition Joint Application Separation Towers Pressure Vessels Heat Exchangers Deck/hull Interface DMC Investor Presentation 37
Slide 38: Primary End Markets Served
PRIMARY END MARKETS SERVED • Chemical • Oil and Gas • Metals and Mining • Marine • Power Generation • Alternative Energy • Industrial Refrigeration • Transportation • Defense and Protection Titanium clad pressure vessels – image courtesy of Coek Engineering. DMC Investor Presentation 38
Slide 39: Capacity in Place
CAPACITY IN PLACE Manufacturing centers in Liebenscheid, Germany and Mt. Braddock, Penn. include 193,000 sq. ft. for production, R&D and training Explosion welding shooting sites in Germany and Pennsylvania Manufacturing assets include heat treatment furnaces, linear welding centers, digital X-Ray i
Slide 40: Select End Users
SELECT END USERS Chemicals Refining Mining Engineering NobelClad provides value to its industrial and infrastructure customers by collaborating at every stage of development. During design phases, NobelClad is a key resource for process architects and engineers who often write NobelClad plates into
Slide 41: Financial Performance
Financial Performance 41
Slide 42: DMC Financial Performance Highlights
DMC FINANCIAL PERFORMANCE HIGHLIGHTS ($ in millions except per share 2021 2021 2022 2016 2017 2018 2019 2020 2021 Pro Q1 Pro amounts) Q1 Forma Forma Sales $158.6 $192.8 $326.4 $397.6 $229.2 $260.1 $500.5 $112.9 $138.7 % growth -5% 22% 69% 22% (42%) 14% - - 23% Gross Profit $38.7 $59.4 $110.7 $144.9
Slide 43: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Assets ($MM) March 31, 2021 December 31, 2021 March 31, 2022 Cash, cash equivalents $45.8 $30.8 $15.4 Marketable Securities $20.9 - - Accounts receivables, net $35.6 $71.9 $79.8 Inventory $57.9 $124.2 $143.3 Total current assets $168.2 $239.2 $255.8 Total assets $304.8 $864.
Slide 44: DMC's Performance Tenets
DMC’S PERFORMANCE TENETS DMC management has closely DMC has adopted three tenets to guide superior share price performance: aligned its interests with those 1. Maximize free cash flow through financial of its stakeholders, and all discipline decisions are made to maximize 2. Maximize return on inves
Slide 45: Contact Information
CONTACT INFORMATION Contact Primary Contact DMC Geoff High 11800 Ridge Parkway, Suite 300 Vice President of Investor Relations Broomfield, Colorado 80021, USA E ghigh@dmcglobal.com T 800-821-2666 T 303-514-0656 DMC Investor Presentation 45
Slide 46: Appendix: Use of Non-GAAP Financial Measures
APPENDIX: USE OF NON-GAAP FINANCIAL MEASURES Adjusted EBITDA, adjusted operating income (loss), adjusted net Because not all companies use identical calculations, DMC’s income (loss), and net cash are non-GAAP (generally accepted Management uses adjusted EBITDA in its operational and financial prese
Slide 47: Reconciliations of Non-GAAP – DMC EBITDA and Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – DMC EBITDA AND ADJUSTED EBITDA 2021 ($MM except per share amounts) 2016 2017 2018 2019 2020 2021 Pro 2022 forma Q1 Net income (loss) attributable to DMC $(6.5) $(18.9) $30.5 $34.0 $(1.4) $(1.0) $47.0 $(4.3) Interest expense $1.1 $1.6 $1.6 $1.6 $0.
Slide 48: Reconciliations of Non-GAAP – Arcadia Pro Forma Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – ARCADIA PRO FORMA ADJUSTED EBITDA ($MM) 2021 Pro Forma Net (loss) income $ 48,012 Depreciation 1,907 EBITDA 49,919 Adjusted EBITDA 49,919 Adjusted EBITDA attributable to redeemable noncontrolling interest 19,968 Adjusted EBITDA attributable to DMC
Slide 49: Reconciliations of Non-GAAP – Arcadia EBITDA and Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS - ARCADIA EBITDA AND ADJUSTED EBITDA ($MM except per share amounts) 2021 Pro Forma 2022 Q1 Operating income (loss) $48.0 $(2.4) Depreciation $1.9 $0.54 Amortization — $12.8 Stock-based compensation — $0.26 Amortization of acquisition-related invento
Slide 50: Reconciliations of Non-GAAP – DynaEnergetics EBITDA and Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS - DYNAENERGETICS EBITDA AND ADJUSTED EBITDA ($MM except per share amounts) 2016 2017 2018 2019 2020 2021 2022 Q1 Operating income (loss) $(5.4) $15.5 $44.5 $68.8 $6.2 $8.2 $3.3 Depreciation $3.1 $3.2 $3.8 $5.2 $6.2 $7.6 $1.9 Amortization $3.6 $3.7 $
Slide 51: Reconciliations of Non-GAAP – NobelClad EBITDA and Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS - NOBELCLAD EBITDA AND ADJUSTED EBITDA ($MM except per 2022 2015 2016 2017 2018 2019 2020 2021 share amounts) Q1 Operating income $5.8 $8.9 $(17.4) $6.5 $7.2 $6.9 $9.9 $.71 (loss) Depreciation $3.8 $3.6 $3.3 $2.8 $2.7 $3.1 $3.3 $.83 Amortization $0.
Slide 52: Reconciliations of Non-GAAP – Diluted EPS from Continuing Operations
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS - DILUTED EPS FROM CONTINUING OPERATIONS Per Per ($MM except per share amounts) Amount Amount Share(1) Share(2) Three months ended Three months ended March 31, 2021 March 31, 2022 Net income (loss) attributable to DMC Global Inc. $0.43 $0.03 $(3.29)