Dmc Global Inc. · NASDAQ:BOOM
Dmc Global — Q3 2024 Earnings Presentation
14 slides from Dmc Global's earnings presentation, Nov 4, 2024
Slide 1: DMC Global's Third Quarter 2024 Earnings Presentation
DMC Global’s Third Quarter 2024 Earnings Presentation November 4, 2024 © 2024 DMC. All rights reserved. ARCADIA FRAMING SYSTEMS USED IN ANTERO RESOURCES HEADQUARTERS – DENVER, COLORADO
Slide 2: Use of Non-GAAP Financial Measures & Safe Harbor Language
USE OF NON-GAAP FINANCIAL MEASURES & SAFE HARBOR LANGUAGE *Use of Non-GAAP Financial Measures Adjusted net income (loss), adjusted EBITDA, adjusted EPS, net debt, and free-cash flow are non-GAAP financial measures used by management to measure operating performance. For reconciliations of the most d
Slide 3: Agenda
AGENDA Opening Remarks and Operational Update • James O’ Leary – Executive Chairman • Michael Kuta – President and CEO Financial Results and Guidance • Eric Walter – Chief Financial Officer Questions and Answers Concluding Remarks COMPOSITE METAL PLATES FROM NOBELCLAD USED IN LITHIUM EXTRACTION EQUI
Slide 4: Third Quarter Summary
THIRD QUARTER SUMMARY • Consolidated sales were $152.4 million, down 11% both sequentially and vs Q3 ‘24 • YoY decline reflects softer demand from construction and energy markets • Adjusted diluted EPS* of $(0.49) versus $0.29 in Q2 2024 and $0.50 in Q3 2023 • Adjusted EBITDA attributable to DMC* wa
Slide 5: DMC Q3 2024 Financial Highlights
DMC Q3 2024 FINANCIAL HIGHLIGHTS Sales Adjusted EBITDA / % of Sales $200 $35 $172 $171 $30 / 17.4% $30 27.7 25.2 $152 $150 5.4 $24 / 14.3% 24.9 $25 5.0 $20 $100 73.0 76.2 69.7 $15 24.6 $7 / 4.6% $50 $10 19.4 1.3 71.5 69.7 57.8 $5 5.7 $0 $0 Q3 '23 Q2 '24 Q3 '24 Q3 '23 Q2 '24 Q3 '24 $ In Millions $ In
Slide 6: Third Quarter 2024 Business-Level Financial Performance
THIRD QUARTER 2024 BUSINESS-LEVEL FINANCIAL PERFORMANCE Arcadia DynaEnergetics NobelClad Sales Sales Sales $100 $28 $25 $25 $80 $71 $70 $73 $76 $70 $30 $58 $80 $60 $60 $20 $40 $40 $20 $20 $10 $0 $0 $0 Q3 '23 Q2 '24 Q3 '24 Q3 '23 Q2 '24 Q3 '24 Q3 '23 Q2 '24 Q3 '24 $ In Millions $ In Millions $ In Mil
Slide 7: Improving Financial Strength
IMPROVING FINANCIAL STRENGTH Liquidity Summary September 30, 2024(1) Debt-to-Adjusted EBITDA Leverage Ratio Cash and Cash Equivalents $15 Unused Credit Capacity (2) $223 2.10 Total $238 1.69 1.50 1.30 1.26 1.25 Total Outstanding Debt (3) $74 1.18 1.10 1.00 Net Debt $60 Q3 '2 2 Q4 ' 22 Q1 '23 Q2 '23
Slide 8: Guidance for Fourth Quarter 2024
GUIDANCE FOR FOURTH QUARTER 2024 Measure Expected Range DMC Consolidated Sales $138M - $148M Adjusted EBITDA attributable to DMC $5M - $8M 2024 Third Quarter Earnings Presentation 8
Slide 9: Key Objectives for Balance of 2024
KEY OBJECTIVES FOR BALANCE OF 2024 • Execute on Arcadia’s operations improvement initiatives: • Strengthen sourcing and supply chain functions • Improve sales, inventory and operations planning processes • More effectively utilize enterprise resource planning system • Improve profitability at DynaEn
Slide 10: Net Debt and Free-Cash Flow
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NET DEBT AND FREE-CASH FLOW ($000’s) Q3 2024 Long-term debt $71,715 Current portion of long-term debt 2,500 Less: Cash and cash equivalents (14,511) Total net debt $59,704 Net cash provided by operating activities $19,002 Less: Acquisition of prop
Slide 11: Consolidated Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – CONSOLIDATED ADJUSTED EBITDA ($000’s) Q3 2024 Q2 2024 Q3 2023 Net (loss) income (159,416) 6,293 11,525 Interest expense, net 2,113 2,316 2,392 Income tax provision 7,848 2,792 4,087 Depreciation 3,444 3,431 3,460 Amortization of purchased intangib
Slide 12: Arcadia Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – ARCADIA ADJUSTED EBITDA ($000’s) Q3 2024 Q2 2024 Q3 2023 Operating (loss) income, as reported (145,122) 5,719 6,476 Adjustments Depreciation 914 888 969 Amortization of purchased intangible assets 5,278 5,278 5,652 Stock-based compensation 315 281
Slide 13: DynaEnergetics Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – DYNAENERGETICS ADJUSTED EBITDA ($000’s) Q3 2024 Q2 2024 Q3 2023 Operating (loss) income, as reported (3,049) 7,052 10,871 Adjustments Depreciation 1,642 1,671 1,682 Amortization of purchased intangible assets - 29 15 Restructuring expenses and ass
Slide 14: NobelClad Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NOBELCLAD ADJUSTED EBITDA ($000’s) Q3 2024 Q2 2024 Q3 2023 Operating income, as reported 4,969 4,932 5,232 Adjustments Depreciation 807 790 712 Restructuring expenses and asset impairments - - 440 Adjusted EBITDA 5,776 5,722 6,384 2024 Third Quart