Dmc Global Inc. · NASDAQ:BOOM
Dmc Global — Q3 2023 Earnings Presentation
16 slides from Dmc Global's earnings presentation, Nov 2, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation November 2, 2023 © 2023 DMC. All rights reserved.
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 and net debt are non-GAAP financial measures used by management to measure operating performance. For reconciliations of the most directly comparable GAAP measure
Slide 3: Agenda
AGENDA Opening Remarks and Operational Update • Michael Kuta – President and CEO Financial Results and Guidance • Eric Walter, Chief Financial Officer Questions and Answers Concluding Remarks ARCADIA EXTERIOR FRAMING SYSTEMS AT ORANGE COAST COLLEGE PLANETARIUM IN SOUTHERN CALIFORNIA 2023 Third Quart
Slide 4: 2023 Third Quarter Highlights
2023 THIRD QUARTER HIGHLIGHTS • Adjusted net income attributable to DMC* was $9.9 million, up 47% versus Q3 2022 • Adjusted EBITDA attributable to DMC* was $24.6 million, up 13% vs. Q3 2022 • Consolidated adjusted EBITDA, inclusive of Arcadia NCI*, was $30 million, or 17.4% of sales, up 220 basis po
Slide 5: DMC Q3 2023 Financial Highlights
DMC Q3 2023 FINANCIAL HIGHLIGHTS Sales Adjusted EBITDA / % of Sales $2 00 $189 $4 5 $175 $172 $38 / 20.3% 24.8 $4 0 $1 60 23.4 27.7 $30 / 17.4% $3 5 6.6 $3 0 $27 / 15.2% $1 20 70.4 84.8 5.4 73.0 $2 5 4.8 $2 0 $8 0 $1 5 31.8 21.8 24.6 $4 0 80.7 79.2 $1 0 71.5 $5 $0 $0 Q3 22 Q2 23 Q3 23 Q3 22 Q2 23 Q3
Slide 6: Third Quarter 2023 Business-Level Financial Performance
THIRD QUARTER 2023 BUSINESS-LEVEL FINANCIAL PERFORMANCE Arcadia DynaEnergetics NobelClad Sales Sales Sales $1 00 $28 $81 $79 $72 $1 00 $85 $73 $3 0 $25 $70 $23 $2 0 $5 0 $5 0 $1 0 $0 $0 $0 Q3 22 Q2 23 Q3 23 Q3 22 Q2 23 Q3 23 Q3 22 Q2 23 Q3 23 $ In Millions $ In Millions $ In Millions Adj. EBITDA / P
Slide 7: Improving Financial Strength
IMPROVING FINANCIAL STRENGTH Debt-to-Adjusted EBITDA Liquidity Summary September 30, 2023 Leverage Ratio Cash and Cash Equivalents and $36 3.0 2.9 Marketable Securities 2.5 Unused Credit Capacity $50 2.1 Total $86 1.7 1.5 1.3 1.3 Total Outstanding Debt (1) $120 Net Debt $84 0.0 Q4 '21 Q1 '22 Q2 '22
Slide 8: Guidance for Fourth Quarter 2023
GUIDANCE FOR FOURTH QUARTER 2023 Measure Expected Range DMC Consolidated Sales $170M - 180M Arcadia Sales $70M - $74M DynaEnergetics Sales $72M - $76M NobelClad Sales $28M - $30M Consolidated Gross Margin 28% – 30% Consolidated SG&A $28M - $29M Depreciation & Amortization ~$9.2M Interest Expense ~$2
Slide 9: Key Objectives for Balance of 2023
KEY OBJECTIVES FOR BALANCE OF 2023 • Deliver strong free cash flow through cost and capital discipline, debt reduction, operational excellence, and by focusing on initiatives with the highest ROI • Expand painting capacity at Arcadia • Execute on automation and cost reduction initiatives at DynaEner
Slide 10: DMC Investment Considerations
DMC INVESTMENT CONSIDERATIONS • Leadership positions in healthy end markets • Compelling valuation vs. peers in building products and energy products industries • Clear path toward long-term sales growth and improved cash flow generation • Experienced, growth-focused leadership teams DYNAENERGETICS
Slide 11: Questions & Answers
Questions & Answers 2023 Third Quarter Earnings Presentation ARCADIA FRAMING SYSTEMS AT NIKE WORLD HEADQUARTERS – PORTLAND, OR
Slide 12: Reconciliations Measurements - Net Debt
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS - NET DEBT ($000’s) Q3 2023 Long-term debt $104,460 Current portion of long-term debt 15,000 Less: Cash and cash equivalents (28,060) Less: Marketable securities (7,516) Total net debt $83,884 2023 Third Quarter Earnings Presentation 12
Slide 13: Reconciliations Measurements – Consolidated Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – CONSOLIDATED ADJUSTED EBITDA ($000’s) Q3 2023 Q2 2023 Q3 2022 Net income 11,525 17,526 8,213 Interest expense, net 2,392 2,432 1,771 Income tax provision (benefit) 4,087 6,600 3,537 Depreciation 3,460 3,434 3,541 Amortization of purchased intangib
Slide 14: Reconciliations Measurements – Arcadia Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – ARCADIA ADJUSTED EBITDA ($000’s) Q3 2023 Q2 2023 Q3 2022 Operating income, as reported 6,476 9,580 3,742 Adjustments Depreciation 969 889 733 Amortization of purchased 5,652 5,652 7,233 intangible assets Stock-based compensation 337 323 357 CEO tr
Slide 15: Reconciliations Measurements – DynaEnergetics Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – DYNAENERGETICS ADJUSTED EBITDA ($000’s) Q3 2023 Q2 2023 Q3 2022 Operating income, as reported 10,871 17,733 11,978 Adjustments Depreciation 1,682 1,713 1,879 Amortization of purchased 15 15 78 intangible assets Adjusted EBITDA 12,568 19,461 13,935
Slide 16: Reconciliations Measurements – NobelClad Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NOBELCLAD ADJUSTED EBITDA ($000’s) Q3 2023 Q2 2023 Q3 2022 Operating income, as reported 5,232 4,707 2,505 Adjustments Depreciation 712 700 825 Amortization of purchased - - 74 intangible assets Restructuring expenses and asset 440 - 8 impairments